ENThe analysis of scientific sources has revealed a very diverse interpretation of the Smart City concept. Yet, one common feature stands out: a Smart City is usually defined by parameters attesting to the achieved prosperity of the city, rather than to Smart City development solutions. From the standpoint of problem solution, a Smart City is a city, where people and organisations, primarily the Municipality, are able to detect problems, including the ill-structured ones, and to address them quickly and efficiently, when the ideas for the best solution are not only born and adopted creatively, but are also realised in a smart way, by following the generated solution implementation plan in a flexible manner. The research study has demonstrated that problems are addressed effectively and creatively in Druskininkai town. In all of the cases examined, problems were solved quickly, achieving the best outcomes with minimal resources - all these characteristics correspond to the definition of smart development in scientific literature. At the Druskininkai Municipality, problem solution is facilitated by mutual confidence (the team trusts the town’s leader and vice versa), entrepreneurship, drive, sense of community, responsibility, and compliance with the law, while interpreting it differently (’what is not prohibited; everything else is permissible’) compared with the usual practice in the country (‘what is permitted’) - all these qualities help generate creative ideas that turn into smart solutions to the problems.The analysis of the Druskininkai case and the solution of its problems at the municipality level has shown that: a) surmounting severe, critical problems is crucial for a town to be able to rise form a recession; b) such problems require a smart solution; c) if such solutions are adopted and implemented, problems are solved; d) a series of smart problem solutions allow a city to overcome a difficult situation and to develop effectively. [Extract, p. 221-222]