* The contrast between the idealized image of the South and the reality: The story presents a romanticized view of the past through the lens of a "gentleman" like the mayor, but undercuts it with the harsh realities of poverty, corruption and poor infrastructure (the need for the municipal report to cover the manholes). This disparity is satirical, highlighting the gap between idyllic Southern myth and its gritty present.
* The mayor's actions and character: Mayor "Boss" Harbison's "kind" acts are presented ironically. He acts out of self-interest and political expediency more than genuine compassion. His concern for the starving child is tied to maintaining his image and manipulating the press; this exposes the manipulative nature of political actions often cloaked in benevolence. This is satirical because it mocks the self-serving nature of politics presented as benevolent paternalism.
* The exaggerated politeness and formality: The overly polite and formal language used in the story, particularly in the descriptions of the town and its officials, contrasts sharply with the harsh realities of poverty and corruption, creating a satirical effect. The formality masks the underlying problems.
* The municipal report itself: The report, ostensibly about fixing infrastructure problems (the manholes), becomes a symbol of bureaucratic inefficiency and the way governments can ignore or downplay serious issues. The fact that solving the immediate, seemingly insignificant problem of the manholes symbolically solves a much larger issue of social inequality is satirical; it highlights the absurdity of focusing on small issues while ignoring broader, fundamental societal problems.
* The irony of the ending: The seemingly happy ending—the starving child being cared for—is ironically undercut by the realization that the mayor's actions are largely self-serving and ultimately maintain the status quo. This ironic twist satirizes the notion that a single act of charity can solve complex social problems.
In essence, "The Municipal Report" uses irony, understatement, and juxtaposition to expose the flaws and hypocrisies of its setting, making its satire more subtle but no less effective.