A municipal position is one where libertarian economic policy is especially unworkable. Spending money is the biggest part of the job because city government's main function is to provide services. If she wanted to have a chance she was definitely going to avoid ideas like privatizing public services and sharply cutting spending. People love city services more than anything else and will throw a fit if they are threatened.
I have not met these people
Then you don't spend much time paying attention to local government. Street paving is incredibly popular and where I live there city got pushback for using a cheaper method. Then there's trash services, street lights, police, fire, etc.
I think he was merely poking fun at your somewhat hyperbolic statement that there are some people who love city services more than anything in their lives.
Your point is well taken, but as noted in an earlier post looking at Wu's campaign website she talks about strengthening city services making sure firefighters and police get all the support they need, working to support City businesses, etc. She's indeed sounds like Vosem's description of a generic moderate to conservative republican.