The article presents the results of a three-year study of the Institute of city management in the municipal administration of three subjects of the South of Russia: Rostov region and the republics of Adygea and Crimea. The methodological platform is based on the author’s concept of administrative and social viability of the Institute of city management, which consists of three basic aspects: sustainable regulatory systems, managerial efficiency, and integrated interaction of social actors to achieve a common institutional goal. The latter is positioned to improve the quality of life of the municipalities population. Based on the results obtained in the course of empirical research, the authors came to the conclusion that the city management Institute that developed in the municipal government system has the necessary potential for viability, but its use is difficult due to the presence of social barriers that lead to the transformation of the reformer’s idea. The authors put forward a number of proposals, the application of which in the practice of municipal management will allow to form an optimal model of the Institute of city management, corresponding to the capabilities and needs of local government in Russia.