The Value of Smart City Initiatives Offer New Twist on Old Question of Affordability
Black & Veatch’s 2017 Strategic Directions: Smart City/Smart Utility Report reinforces lessons learned in the past year—although governments and municipalities believe strongly in the smart city model, they continue to struggle to fund these efforts. According to survey data, only 16 percent of municipalities can self-fund a smart city initiative, a little over a third cannot.
Municipalities face a grim reality when it comes to funding smart initiatives through traditional routes. Relatively weak local economies, little to no appetite for raising additional revenue for smart city activities and a skeptical understanding of how these initiatives add value hinder buy-in.