No matter how much magic power gets taxed, you replenish it after a good night's sleep so it doesn't really matter.
Energy issues don't apply here.
Even if the Mayor wanted to create some absurdly large street lamps, the citizens wouldn't care as long as the collected magic power doesn't dry up.
Maybe not everyone thinks this way, but I certainly do.
In that case, why not emulate this magic city and implement such systems in cities everywhere? - Is probably what you're thinking.
Unfortunately that's currently impossible with our level of technology.
Around five years ago, there was a genius magic engineer who devised and built the magic tax collection devices, as well as the various systems that allow the city to function as it does.
Most of the technology used in this city originated under the lead of that engineer. But after finally completing the Magic Factory, the engineer mysteriously disappeared.