This piecemeal governmental structure remained essentially intact until the passage of the Organic Act of 1871, which created a new government for the entire District of Columbia. This Act effectively combined the City of Washington, Georgetown, and the unincorporated area then known as Washington County – the portion south of the Potomac River had been returned to Virginia in the late 1840s – into a single municipality as Washington, D.C., exists today. In the same Organic Act, Congress created a territorial government which consisted of a legislative assembly with an upper-house composed of eleven council members appointed by the president and a 22-member house of delegates elected by the people, as well as an appointed Board of Public Works charged with modernizing the city. In 1873, President Ulysses S. Grant appointed the board's most influential member, Alexander Robey Shepherd, to the new post of governor. Shepherd authorized large-scale projects to modernize Washington but overspent three times the approved budget, bankrupting the city. In 1874, Congress abolished the district's local government in favor of a direct rule.