The characters in our campaign are all 12th-14th level, and they are, by now, pretty important figures in their home city. Their typical actions while not on a more focused adventure,mission, or quest, include:
Lawful dwarven cleric: Got married, converted a St. Cuthbert acolyte, gave the local goblin bard his first big break (chanting at the cleric's patriarch cermenoy), keeps his temple guard from clashing with the city watch when the watch isn't quite lawful enough.
Halfling rogue: Ascended to the head of Procurement in the Guild of Insurers, Procurers, and Beggars; gambles; sends his underlings out on missions; springs his underlings from jail; fights off the amorous advances of one of his underlings.
Human barbarian: organized exchange program between his tribe and the city (that went really badly), settles disputes in his tribe, getting married, gambles, sews garments out of dead foes' scalps.
Hm, lots of romance in our campaign... Also, we have two festivals per year, the Neverlight and the Althing.