The article analyses the issues regarding the need to reform Ukraine's public institutions, taking into account European norms, standards and procedures of public administration. This will increase the efficiency of the organization, which will lead to positive economic consequences in the activity of the public authority, better performing of its functions by the employees and optimizing of the decision-making process. The concept of organizational culture, value principles, modern tools for their implication in communities are considered. The author develops the recommendations for the development of organizational culture of public authorities in the context of public administration reform in the process of its decentralization aiming to strike a balance between public values, and proposes methods in organizing cross-sectoral communication in amalgamated local communities using modern digital technologies. The purpose of the article is to analyse the concepts of organizational culture and values of public administration in order to develop skills of inter-sectoral interaction with the participation of citizens; exploring the prerequisites for creating a common information space in the communities that produces data on aspects of local development taking the case of the system. It is determined that organizational culture is a system of moral norms, values, traditions, rules, prohibitions and ideas inherent in public service, which are formed in the process of joint activity of a certain organization, are shared by all members of that organization, determine their behaviour and activities, contribute to the achievement of goals. For the formation of values in a society by the authorities, a dialogue with the society should be developed, which will allow avoiding the acute problems that occasionally appear in the society, but also to formulate a policy, taking into account the needs of the society and, at the same time, informally influence its attitudes. Generally, society and culture may be regarded as a self-regulating system of values. They inform the individual about the optimal behaviour and means in achieving the goals, foster its socialization, orient in public life, evaluate his/her actions, provide encouragement or punishment of a person, determine his/her civic competences. The values ensure the exchange and interaction of participants in communication processes in a society; unite people in their activities, although they may act as a cause of conflict within and between social groups. The principles of the Intelligent system, which promotes the system of problems solution based on active citizenship and cooperation, are discussed. Smart Interaction is aimed at identifying and resolving issues by residents in an acceptable and convenient way - either independently or through local government institutions. «Smart Interaction» can be started with the fixing of the «Smart Interaction» platform on a special map, installed in smartphones, local issues with the direct involvement of residents. But unlike static map markers, community mapping uses special interactive beacons to create a space for «alive»” community engagement. This concerns the problem-solution, the mobilization of resources from a variety of sources, including co-financing with donors/business/investors, residents, the local budget and many other opportunities. It is concluded that the development of modern digital platforms for communication within the community improves cross-sectoral interaction, engages residents in decision-making, democratizes the values of public administration, modernizes organizational culture and reduces the burden on local governments, thereby increasing its efficiency.