This is true, but keep in mind the experience of many people is at odds with this. Municipalities de facto wield huge authority through their control of the police and tend to never be challenged. As an extreme but rather common example, there are still locales in the south US that couple religious functions with their public schools and other government offices. Sporadically someone with the knowledge and means will be able to challenge the local government up to the state level, but until that happens the local government can run roughshod over community members (if they don't just force them out).