Projects at the level of local government bodies often fail or are not even started because of the fear of failure. The reasons for it can be found in the lack of readiness to change of public workers, the general easy pace adopted by local bodies, a lack of competence, unorganized communication but also in the structure of these bodies. In this work, a model of management for local government is proposed. Such model deals with the work organization structure, communications within the organization and competencies essential for project success. Through the development of the mentioned elements conditions for the creation of a culture of change are met, opposed to the now in place closed clusters. Project management in today's circumstances, needs different approaches, most of all due to the volatility of risks that is encountered. The work suggests the implementation of Agile principles for project management, that were thought of for environments with substantial change rates within projects. Given the fact that Agile is not a universal solution for project management, and the fact that most projects are still managed by well known methods and techniques, this model is thought of as adaptive to the requirements of the project, instead of adapting projects to the model itself. The suggested organization structure is hybrid. A project component was added to the existing functional organisation structure, making it in fact a matrix. Hybridity is the product of the connection between functional and matrix, but also from the idea of local government bodies as more open organizations ready to embrace change and a more active engagement with the private sector. Throughout the work proof is given of the implementation feasibility of such model within a local government on the example of the City of Poreč. The reach of the model, its issues and threats to implementation are given towards the end of the work.