By creating enterprises with сapitals of local government, which should do part of services free for the people and the rest as a regular commercial enterprise.
For better service delivery by the city Government there should be mandatory regular education and trainings of service deliverers. Moreover there should be incentive based programs both for public and for the service providers.
The cost of such incentives will be covered through industry. e.g. for garbage collection the food industry be charged (each pet bottle with a fee as environment cost) and public and service deliverers should be given incentive for collection of pet bottles and segregating garbage. Similarly transportation needs subsidy from the Government or through revenues from advertisements, Enhanced parking fees of cars etc. which covers the additional costs of public transportation.