This article examines the place of the municipal enterprises in the service of the local
 community in general, and in the rendering of municipal services in particular. The methods of
 services rendering by individual municipal authority or enterprise and the directly by local
 authorities are compared. These models vary considerably in efficiency and organizational
 support. These differences allow get answer to the question of the expediency of involving the
 municipal enterprises to the rendering of municipal services.
 The author defines the criteria, which allow assessing the place of municipal enterprises
 in considered sphere and getting answer to the question of the expediency of involving of
 municipal enterprises in the economy of the territory. The research also focuses on ways to
 improve efficiency, accountability and transparency of the management of municipal enterprises.
 A significant part of the impact and mechanism of direct responsibility to the people must
 be supported with the help of supervision of municipal services, otherwise there is a great
 temptation to start uncontrolled expansion and implement investments in new assets without
 appropriate investments in other municipal spheres. The activity of local authorities satisfies
 these criteria better than the performance of individual municipal enterprises. The financial
 independence of the last mentioned more contributes to attempts to build empires and unjustified
 costs. Municipal enterprises do not have unique advantages; their existence creates or
 contributes to the creation of problems in the sphere of decision-making, and also leads to
 unnecessary costs for the local authorities and population. Their abolishment would increase the
 efficiency, accountability and transparency of the public sector.