I've known a few good ones, and some rotten ones too, from my decade in Municipal government. In particular, some small town city managers do a good and usually underappreciated job. Like politics, the bigger you get, the more the temptation to fall prey to corruption and private agendas - although in some instances it is easier to set up a corrupt operation in smaller communities like the one described above.
It is really hard to the good job that needs to be done and also please the political agendas of the city council members who pull your strings and can fire you. The above abuses are not about a city manager doing a bad job, but about a city manager and council doing a horribly corrupt job to line their own pockets on a scale I have never seen before.