No one should rule. Rule is wrong. Imposing your will on someone is wrong. This is why the private city is the solution. The private city is not ruled by a plurality of politically well organized people. It is run by a single owner for purpose of serving the needs of everyone. Everyone, not just the majority, gets what they want.
I've already said a thousand times that HOAs aren't private, they're collective organizations existing outside the official government corporate system. You can't compare the behavior of a HOA to that of a for-profit provider.
You're right that the government is not set up to make money, and that's why it can't do anything right. Profit in the economy is not just an incentive, it is a guide. It is direction and information. It tells entrepreneurs what people need the most, and what they need the least or don't need at all. When you eliminate profit, you only produce things whose value can't be determined. That is the economic calculation problem, and is why famous socialist Oskar Lange conceded to Ludwig von Mises that socialism without markets couldn't work. It turns out it couldn't work at all.
This is why the city is a wreck. We have produced roads whose value can't be determined. We have produced parking lots whose value can't be determined. We have produced mass transit whose value can't be determined.
We have parks whose value is obviously zero. For all we know it would be much more profitable to shrink all the roads down and provide more subways. Your claim that a subway token would cost 10 bucks to make a profit is false. We don't know what a subway token ought to cost. For all we know if we made it 1 buck everyone would start using the subway, and it would be hugely profitable.
But the most destructive effect of government production is that
it isn't aware of quality. Any government service based on distribution force, as opposed to the earning of profit, is run by a bureaucracy. This bureaucracy is controlled by regulation. This regulation can only apply to quantitative problems. Maybe the subway would be hugely profitable if it was clean, safe, ran on time, and most critically, was
comfortable. You wouldn't even have to change the fares and more people would start using the subway, but the incompetent government administration cannot think of trying to fix these problems. It simply cannot conceive of quality.
Everything the government produces is bad because of that. Education doesn't teach children. Social services employs bureaucrats to tell the needy there's no help available. The reason for that is that there is no profit to guide production. There is no profit to tell entrepreneur what, where and how to produce. There is no profit to inform us of the scarcity of goods. It cannot work without profit.