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Again from a Systems Point of View, probably to avoid the politics of consolidation, the way it has been implemented in most places is at the administrative level by contract.  Local governments accomplish consolidation by joining the functional departments of government into “districts” thereby cannibalizing local government while leaving a façade of local government in place.  When there is municipal consolidation, there is one data center and software is written as a generic frame with customization (i.e. city name) at display time – essentially providing city leader with a window to the data.