This report addressed to policy making officials in local government deals with the role of federal assistance in future developments of information systems by local governments through an assessment of the Urban Information Systems Inter-Agency Committee (USAC) Program, which, beginning in 1970, provided grants to five municipalities--Charlotte, North Carolina; Dayton, Ohio; Long Beach, California; Wichita Falls, Texas; and Reading, Pennsylvania--to develop integrated, computer-based information systems. Recognizing the different management needs of government, these systems automate selected municipal functions, mostly in the area of delivery of services, and provide data for management decision making. An assessment of the program in 1974 indicated that, in general, the USAC Program, although it had significant impact on the development of information systems, had not met some stated objectives, due to underestimated cost and complexity of systems development within a limited time frame. This led to an examination of cost and benefit relationships of information systems and the transferability of systems or components. The program contributed a body of knowledge about how to approach the development of information systems, stressing the importance of involving elected and appointed officials in that process, and pioneered the application of computer technology in municipal functions. Since few governments have resolved the privacy issue, this and some related issues are also discussed. (CWM)