TownPress is an ideal WordPress theme for small towns or villages. It is tailored to suit all the basic needs of a modern municipality. TownPress offers a lot of very niche-specific features like local weather widget, upcoming events, town documents, galleries, forums (via bbPress plugin) and more. A great theme for your city or town portal!
Demo: http://themeforest.net/item/townpress-municipality-wordpress-theme/11490395