If the local governing body is too small to handle the requirements of governance, what then? Laws can be broken just because there are too few clerks?

Using invasive surveillance tech to govern is not needed then. If you can't handle the full service (on both ends) of the technology, then you can't deploy it and have to use regular old police work or legacy techniques to enforce it.

Using this tech is not mandatory to have governance.

Not sure I can agree anymore in 2025. Maybe in 2027, hopefully.