City of Asheville, NC
The City of Asheville has made big strides in civic engagement in 2013. The Code for America Brigade (Code for Asheville) launched in early 2013 and sponsored the first citywide hackathon in partnership with the city. City government also launched a new "Business and Public Technology" division to explicitly promote meaningful civic engagement on a wide range of issues. The City of Asheville was also recently featured in the book "Beyond Transparency" as an example small city that promotes open data and civic innovation.
Scott Barnwell commented
Link below to coverage of Asheville's participation in the National Day of Civic Hacking: http://www.govtech.com/National-Civic-Hacking-Event-Takes-Many-Forms-Locally.html