City-level industry-education consortia represent a significant effort in developing a modern vocational education system in China. These consortia are characterized by collaborative innovation, local focus, contractual arrangements, openness, and flexibility. Analyzing these consortia from the perspective of public value creation reveals their organizational essence beyond mere educational or industrial contributions. This paper employs a public value creation framework to elucidate the foundational public values of city-level industry-education consortia. These values include enhancing the economic and social adaptability of vocational education, improving the structure and skills of enterprise human resources, and boosting corporate image. Additionally, the paper identifies the public value structure in optimizing the allocation of resources, fostering social value consensus, strengthening social cohesion, and enhancing public welfare. To advance the development of city-level industry-education consortia, it is essential to accurately define public value, align organizational goals, seek common value denominators, and strengthen organizational capabilities through institutional improvement. Furthermore, optimizing operational mechanisms, fostering value co-creation, and cultivating a collaborative culture are crucial for realizing public value creation in city-level industry-education consortia.