This study analyze local self-government, tries to respond to the challenges of negative demographic indicators, such as the outflow of quality labor force and negative population growth. Factors affecting the sustainability of cities are discussed in details, with an emphasis on the challenges that small town face to introducing new technologies contribute to the concept of sustainable development, such as financial, economic, sociological or transport factors. This study shows that the city administration adopts guidelines (Statute) that encourage cooperation between other local units, especially successful cities in the world and in our country. One of the important emphases was placed on encouraging industry and tourism in order to make the development of the City as high quality and efficient as possible. Also, the sociological dimension that is especially emphasized in the promotion of national heritage and preservation of cultural monuments must not be neglected. The research-empirical method was used in this study.