The essence and system of competences’ distribution in municipal formation is considered in the article. The results of administrative reform and reform of local self-management in the sphere of differentiation of powers between federal bodies, state power bodies of subjects of Russian Federation and local self-management bodies are analyzed. The main tendencies in the development of system of competences’ distribution are revealed. The recommendations for increasing of effectiveness of competences’ distribution in municipal formation are suggested.

The structure of costs of social time in parity with the structure of competencies of municipal formation is considered in the article. The variant of a matrix of general utility of the given rights, duties and responsibility, concretizing the structure of competencies, is developed. The conceptual model of increase of effectiveness of municipal formation competencies distribution and realization is suggested.

In article theoretic-methodological aspects of development of the concept of development of municipal formation are considered. The basic circuit of model of strategic management is offered by municipal formation.