Of note: LaCroix was the Prince of LA, not the Sheriff. But outside of what's been laid down from above, you can rule how you wish. They can't fuck with the founding principles and any particular directives handed down.
They control the land on behalf of the Camarilla higher-ups. A Prince, is, fittingly, essentially a feudal lord. So, each Camarilla city/town has a Prince.
Vampires, at least in the modern nights, are townies and citydwellers, mostly because it's easier to pass unnoticed in those places and the rural's more likely to be owned by werewolves. State-like-entity that most of the Vampire world at.least nominally owes fealty to.