This is exactly how Toronto's amalgamation was done.
First, came 'regional government' in the form of 'Metro Toronto'. This was in 1953. At the time, police, ambulance and transit became the main 'regional' services and most other city functions stayed with the then 13 local governments.
In the 60s, further consolidation occurred within Metro reducing 13 municipalities to 6.
Then in the late 90s, we did full amalgamation, creating one City of Toronto covering 243sq miles.
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