A governor is a pure RP position and they hold no powers other than the ability to choose the city's trade deal and the ability to grant titles to citizens that last until the end of their term (the title system is somewhat restrictive).
Most shards hold an EM-led Royal Council meeting once a month in the council chamber in Castle Blackthorn (Siege/Mugen use the Counselor's Hall in Serpent's Hold). This is the northern most room on the first floor (directly under the throne room). When/How these meetings are run varies wildly from shard to shard, but most serve to recap recent events and help springboard future ones. Citizen participation is encouraged.
"Deco" for a town is almost always a non-starter and most governors have stopped bothering to request it. However, they can get temporary, event-related lockdowns through the PEC (as any player can). Governors can, if done properly, request improvements to their city. These tend to be made through the shard's EM(s) and may require a somewhat involved process (resource gathering, RP events justifying the addition, etc.). These improvements can, in rare instances, result in a change to the map file; such as the addition of the stable in Vesper and the docks in Minoc and Yew.
A governor-led, PEC-assisted event will NEVER result in an item drop. Any player can run an event with the assistance of PEC Raine.