The relevant selection criterions of evaluating efficiency of local government activity are chosen to form municipal units rating system. It is necessary to include special indicators of evaluation of municipal units development, which indicates a considerable level of differentiation in the socio-economic development, is recommended to be included into the rating system. The methodology of upgrading rating system is based on calculation of the average of municipal units activity efficiency and its comparison to the highest achieved among the municipalities. The implemented approbation includes economic development indicators, workers average monthly nominal wages, preschool education, secondary education and complementary education.