ACT Government - Councils and Territory Government into One (1) Level of Government

This works pretty well I think;

Two great observations about the ACT Government:

1. It is a great example of the right geographic size and population for smaller councils around Australia whom think that if they amalgamate they will be too big!
2. Ever since Woden, Belconnen, Civic etc ... disappeared as separate entities has seen not so much growth specifically around these clusters but in other areas around the Territory as well e.g. Lanyton etc ... as it turns into more integrated mass!  

You can apply this 'observation' on a more advanced scale to other forms of reducing levels of Government as well - i.e. if you were able to reduce levels of State Government for example.

So that's great if that's what you're looking for!