The article analyzes the target benchmarks, objectives, and role of modern ICT in municipal governance, viewing digitalization as a shift from fragmented automation to data-driven management. The goal is to clarify which technological solutions and organizational conditions ensure measurable improvements in service quality, transparency, and operational efficiency at the local level. The novelty of the study lies in integrating quantitative and qualitative indicators to build a comprehensive picture of the digital maturity of municipalities and to identify structural gaps between different types of territories. Materials and methods include analysis of regulatory and statistical frameworks, as well as empirical research on 60 municipalities for the period 2020-2023, stratified by type and population size. Surveys of digitalization officers, content analysis of websites and service portals, and processing of indicators related to the implementation of EDM systems, GIS, feedback platforms, and big data analytics systems were applied. Descriptive statistics, correlation, and regression analysis were used to assess the relationship between ICT penetration, budget allocations, and key service delivery KPIs. For comparability, relative indicators per capita and dynamics across two years of observation were calculated. Results show positive dynamics in all areas with significant heterogeneity of implementation: GIS demonstrates the highest growth, while big data systems remain rare. The share of e-services and the speed of processing requests have significantly improved, yet the economic effect is limited due to initial costs and competency gaps. Digital inequality was identified: large districts considerably outperform small municipalities in terms of funding and per capita expenditures, which correlates with higher penetration of GIS and interactive platforms. A strong link was found between increased citizen satisfaction and both the share of e-services and the development of feedback channels. Discussion indicates that the current focus on internal systems (EDM) needs to be balanced with citizen-oriented and analytical solutions. Recommended measures include reallocation of budgets towards integrated platforms and analytics, competency development and process reengineering, standardized solutions for small territories, and competence centers. Limitations relate to self-reporting and data heterogeneity; future prospects include longitudinal panels, detailed causal evaluations, monitoring of effects, and result-based metrics beyond coverage.