currency, postage stamps, an army, a navy, ambassadors....

Sorry, no air force.

Sounds like a nation to me.

The CSA was never officially recognized as an independent nation, it was nothing more then a group rebellious states!

The government of the United States (the Union) rejected the claims of secession and considered the Confederacy illegitimate.
No foreign government officially recognized the Confederacy as an independent country, although Great Britain and France granted it belligerent status, which allowed Confederate agents to contract with private concerns for arms and other supplies.

During the four years of its existence under trial by war, the Confederate States of America asserted its independence and appointed dozens of diplomatic agents abroad. None were ever officially recognized by a foreign government. The United States government regarded the southern states in rebellion and so refused any formal recognition of their status.

Localities have almost no power unless the General Assembly allows it.
15-20 years ago Hampton Roads wanted to levy a 1/2 a cent sales tax on themselves specifically for road work and construction (bad traffic) but couldn't even put it on the ballot unless the G. A. let them. The G. A. said no.


What is the Dillon Rule?
The Dillon Rule is used in interpreting law when there is a question of whether or not a local government has a certain power. Lawyers call it the rule of statutory construction.
Dillon's Rule construes grants of power to localities very narrowly. The bottom law is -- if there is a question about a local government's power or authority, then the local government does NOT receive the benefit of the doubt. Under Dillon's Rule, one must assume the local government does NOT have the power in question.
In legal language, the first part of Dillon's Rule reads like this: Local Governments have only three types of powers: 1.) Those granted in express words; 2.) Those necessarily or fairly implied in or incident to the powers expressly granted; and 3.) Those essential to the declared objects and purposes of the corporation, not simply convenient, but indespensible.
It is the second part of the Dillon Rule, however, that puts the vise on local government's powers. This part states that if there is any reasonable doubt whether a power has been conferred on a local government, then the power has NOT been conferred. This is known as the rule of local government powers.
http://www.patobannon.com/frequently-asked-questions/what-is-the-dillon-rule

Here too
http://www.virginiaplaces.org/government/dillon.html