Do these administrations still purchase licenses for software or do they just create open source maintained by government employees? How much are they willing to pay? Because people in Europe are notoriously paid less so I am curious of the financial aspect. Also curious about the logistics of ownership and support...

I know that my city's administration has a quite active development department.

I don't know the current salary ranges,but they offer other values like vacation days, Work-Life-Balance (proper time tracking to avoid extra hours etc), part-time.offera, child care options and some other benefits, which most corporations won't give in addition to being the state, which means they won't go bankrupt, won't do reductions in force in the way companies do it, ...