Local and regional governments—and neighboring city governments—all face similar challenges: rising costs, funding constraints, and aging infrastructure, just to name a few. Below, Spectrum Smart Cities, details ways city leaders can be creative to help secure funding for future smart city projects. 

Gartner Key Findings

• “Smart city initiatives have to compete with other interests for limited funding in government. These include differing political priorities, urgent and emergency needs, and the desires of various business units."
• "Direct government funding is only one option available to fund smart city initiatives. Other alternatives for governments to explore include public-private partnerships, tax increment financing, grants and private-sector-funded projects."
• "Smart city initiatives that don’t directly and tangibly address residents’ needs often lose public support and, eventually, funding."

What This Means for Communities

Per Gartner, “Direct government funding is only one option for financing smart city initiatives.” Public-private partnerships, for instance, bring an intersection of private sector technology and innovation to help distribute the technical, financial and operational risks between both the public and private sector.

Additionally, by prioritizing city needs that align to their citizen’s priorities, leaders can focus on implementing one smart city project first and continue to build upon those projects or add additional projects over time. Once you can prove success on one project, not only will it be easier to secure funding for the next project, but the teams and community will have the confidence to propel them forward.