If the municipality has less than 2,000 citizens, it is a town. Once the population reaches 2,000, however, the municipality is defined as a city. Legislative powers affect the public generally. In exercising these powers, the municipality acts very much as an arm of the state. Corporate powers are more comparable to those of a private corporation and are exercised to benefit the municipality in its proprietary capacity.
Municipalities also have authority to exercise certain powers within their police jurisdictions.
The police jurisdiction is a legislatively created area outside the corporate limits of a municipality. It ensures orderly development beyond the municipal limits and allows the municipality to protect persons who live within these areas. Municipalities can levy certain types of taxes in the police jurisdiction in order to pay for services which are provided in the area. Additionally, municipalities can enforce criminal ordinances in the police jurisdiction. Construction and development can be regulated through the application of municipal building codes and subdivision regulations.