Municipalities aren't "the people." The State has total police power in US federal system. Local governments only exist by the charter of the State government.

Municipalities aren't "the people." The State has total police power in US federal system. Local governments only exist by the charter of the State government. Colorado eliminate all local governments if it wanted to. If a group of citizens wanted to start a cooperative, they could do that. It's more complicated than this, but it's the gist.