As the work of the city administration is very complex, the need for a higher level of transparency, expertise and knowledge in its functioning becomes necessary. Recently, controlling in the public sector has been increasingly discussed and its application encouraged. Effective management is a hot topic today and it is known that legal or organizational changes alone are not enough to increase efficiency. Therefore, controlling as an expert decision support is imposed by the indispensable function in the public sector, which includes institutions financed from the budget. By implementing the business concept together with reporting, analytical monitoring and evaluation of efficiency and effectiveness with the help of the controlling function, it is possible to influence the efficiency of management and decision-making, and thus the realization of the set goals of the city administration. The purpose of this paper is to investigate the role and importance of controlling in the business of the city administration and to present the basic functions of controlling in order to achieve the highest quality of services and customer satisfaction, rather than achieving higher earnings. Given that the city administration has a default organizational structure with predefined goals, results and performance indicators to be realized, it is necessary to have a prompt and credible reporting, i.e. it is necessary to plan, analyse, evaluate and report on the execution of plans and the achievement of set goals. The aim of this paper is to present the implementation of the concept of controlling on the example of the administration of the City of Pula and to propose a way of certain analytical monitoring and reporting with the necessary assessment of efficiency and effectiveness, which ultimately contributes to the concept of controlling the success of its implementation. The paper will present the most important methods and tools and prove the usefulness of controlling in increasing transparency and efficiency in the work of the city administration.