Betsy Kimak recently pointed me to the Greenprint Denver Blog, being authored by the Mayor's office staff. She also pointed me to the Library of Congress' blog, which looks like a great blog. These are in the Government Blogs Directory now.
Here's from Betsy's most recent blog entry:
Blogging at the municipal level is still mostly uncharted territory: there are a couple dozen elected officials across the nation who maintain blogs, but those are mostly geared toward their own political endeavors. To date, only a few cities have experimented with public blogs, which I think can be a very effective citizen engagement tool when deployed under the right circumstances.
I see a few more blogs from Betsy's post that I need to add.