Developing Smart Cities: A Guide for City Leaders

Article Takeaways:

• Smart city development is essential for sustainable growth. With 89% of the U.S. population projected to reside in urban areas by 2050, cities must modernize their infrastructure to remain resilient, efficient, and livable.
• Smart cities use technology to improve the quality of life. From advanced water metering to intelligent transportation and public safety systems, connected solutions enhance daily life for residents.
• Data and collaboration drive success. Engaging stakeholders, leveraging analytics, and utilizing AI enable city leaders to make informed, transparent, and effective decisions.
• Budget-neutral financing makes smart upgrades possible. Energy savings performance contracts allow cities to fund major improvements with minimal to no upfront capital investment.
• Proven results show the impact. Projects like the City of Jacksonville, Texas, demonstrate how smart infrastructure can lower costs, improve service, and safeguard resources during emergencies.
• The path forward with smart city technology is strategic and achievable. With planning, community engagement, and the right partners, cities can confidently take steps toward becoming safer, smarter, and more sustainable.

Building Smart City Infrastructure

Today, cities across the United States are growing and changing rapidly. It is estimated that 83% of the U.S. population lives in urban areas, which is expected to increase to 89% by 2050. To best meet the needs of this growth and prevent strains on infrastructure, cities are focusing on providing enhanced security, efficiency, and environmental stewardship and looking holistically at becoming more resilient.

In this guide, I’ll outline the key characteristics leaders should know about smart city projects and how smart city technology can enhance infrastructure solutions. These same concepts can apply to college campuses and school districts.

Understanding Smart City Plans

Defining “Smart”

So, what is a smart city or smart campus? Many cities and school districts have already implemented “smart” technologies.

Recently, the term has been a catch-all buzzword to describe technology-driven enhancements that provide real-time analytics to increase operational efficiency and share information. More specifically, Dr. Jonathan Reichental, author of Smart Cities for Dummies, maintains that “a smart city uses innovative technologies to enhance community services and economic opportunities, improve city infrastructure, reduce costs and resource consumption, and increase civic engagement.”

For example, some cities implement broadband through networked LED streetlights. Others implement Advanced Metering Infrastructure (AMI) and Supervisory Control and Data Acquisition (SCADA) solutions to improve water utility efficiency, detect leaks, and reduce unbilled water. Moreover, these improvements benefit not only cities. They can also have a positive impact on local citizens. In the case of AMI and SCADA solutions, residents can access their water usage data in real-time, set alerts, and monitor their usage to reduce water consumption and, ultimately, their water bill.

Making updates like these is the first step to smart city development.

Components of a Smart City

Many components of a smart city project fall under the umbrella of smart city infrastructure. When used singularly or in conjunction with multiple initiatives, improvements can significantly enhance operational efficiencies and the quality of life for residents. There is no one model for a smart city plan, but key aspects of building smart cities include the following:

1. Stakeholder Engagement: It is crucial to the success of large-scale infrastructure projects. When citizens and local governments collaborate, positive community changes are achievable.
2. Infrastructure: Enhancing the efficiency and capacity of government services is essential for achieving and sustaining long-term growth in smart city development. Critical infrastructure services include city-wide facility management, wastewater treatment, and water distribution.
3. Broadband: The internet has become an essential service, like electricity. As a result, there is a critical need for information and communication technology, as well as public Wi-Fi. High-speed internet connections facilitate economic development and support the growing trend of remote work.
4. Public Safety: In terms of smart technology, many tools can help sense, analyze, and act on potential public safety threats. For example, smart cameras can detect accidents and call for EMS, and microphones can identify gunshots, triangulate a shooter’s location, and relay that information to the closest first responder. Incorporating security elements into your smart city design is essential to ensure safety and resilience.
5. Resiliency: City solutions must be resilient to any challenge they may face, particularly concerning critical infrastructure services that citizens rely on. If faced with rising water, inclement weather, or extreme conditions, technologies such as renewable energy, smart grids, centralized building automation, communication redundancy, and asset efficiency can help communities avoid critical failures.
6. Energy Efficiency: Increasing energy efficiency is good for the environment and for a city’s bottom line. Connected buildings, LED lighting upgrades, smart street lighting, building envelope improvements, HVAC equipment upgrades, and energy dashboards can benefit public budgets through increased income and decreased operating expenses.
7. Healthier Communities: Most cities share the goal of enabling healthcare access for all and nurturing the social, economic, and environmental factors contributing to residents’ overall well-being. Telemedicine opportunities for homebound individuals are an excellent example of how digital smart city projects can enhance the service provided to citizens.
8. Transportation: Enabling intelligent transportation systems or using traffic management centers is vital for cities’ growth. For example, traffic management centers can monitor and coordinate large networks of sensors to improve traffic flow and reduce congestion.
9. Data Analytics: Access to better data management and an understanding of the 3 Vs (volume, velocity, and variety) will enable cities to make better, faster decisions. With actionable data insights, policymakers can enhance operations, reduce resource consumption, monitor security risks, and more effectively manage budgets.
10. Artificial Intelligence: AI can be used to identify and troubleshoot problems through connected infrastructure within smart city projects. AI will play a positive role in most, if not all, future smart city technologies.

Benefits of Smart Cities

The benefits of smart city technology extend beyond innovation, enhancing the quality of life, promoting sustainability, and driving economic growth. The top nine benefits include:

• Improved Quality of Life: Smart city infrastructure projects prioritize the well-being of residents by elevating public services, healthcare, education, and safety. All of this results in an overall higher quality of life.
• Sustainable Urban Planning: Smart city guidelines promote long-term sustainability, including energy-efficient infrastructure, green spaces, and reduced environmental impact.
• Operational Cost Savings: Smart solutions help cities cut operational costs by reducing energy consumption, minimizing waste, and improving resource allocation. Ultimately, smart technology saves taxpayers’ money.
• Attracting Investment and Talent: Innovative technology in a city can attract businesses, entrepreneurs, and skilled professionals, helping to stimulate economic growth and job opportunities.
• Data-Driven Decision-Making: Smart city solutions leverage data analytics to make informed decisions, leading to better resource allocation, improved public safety, and more effective urban planning.
• Safety and Security: Advanced technologies, such as surveillance cameras and predictive policing, promote public safety and can reduce crime rates.
• Environmental Benefits: This kind of technology can reduce carbon emissions through initiatives like renewable energy integration, efficient waste management, and sustainable transportation. In other words, smart city features can mitigate the impact of climate change.
• Resilience: Smart cities are better equipped to respond to natural disasters and emergencies with advanced early warning systems and improved disaster management protocols.
• Tourism and Cultural Attraction: Tourism experiences can be more interactive, providing digital guides, interactive exhibits, and cultural preservation efforts, attracting more visitors.

Why Implement Smart Technology

The United States’ Infrastructure is in bad shape. According to the American Society of Civil Engineers’ 2025 report card for America’s infrastructure, the U.S. scores an overall C. Cities and towns are in dire need of infrastructure repair.

In addition to deteriorating infrastructure, rapid urban population growth, environmental concerns, and resource scarcity necessitate that cities adapt to changing needs or risk being left behind.

Examples of Smart City Projects

When designing sustainable urban developments with smart city solutions, city leaders should consider infrastructure improvements that reduce energy consumption and save on maintenance and operation costs. It’s good for both the environment and the community. Additionally, these smart infrastructure updates make your city or town more resilient without requiring significant upfront capital (details provided below). Key energy conservation measures and smart infrastructure improvements to consider:

• Smart Energy Grids: Integrating renewable energy like solar panels into the grid reduces carbon emissions and enhances energy resilience. Additionally, consider energy consumption monitoring. Deploying modern meters and demand response systems to help residents and businesses better manage their energy usage, especially during peak times. Additionally, microgrids offer the following benefits:
  • Reduced Utility Costs: Microgrids effectively manage electricity demand, alleviating grid congestion and lowering utility costs.
  • Enhanced System Reliability: Microgrids ensure an uninterrupted power supply, even in the face of extreme weather conditions.
  • Resilience for All: Microgrids guarantee consistent and reliable power, especially for communities located on the outskirts of the larger grid.
  • Business Intelligence Advantage: The consolidation of data and insights into a single, integrated platform empowers cities with real-time visibility and the ability to manage energy resources, resulting in more informed decision-making proactively.
• Smart Water Management: Various smart water solutions help cities and towns save money while improving water services. Smart water meters and Advanced Metering Infrastructures (AMI) provide better and more accurate water data, water revenue optimization, remote control features, leak detection, and more. Drones can be used for aerial water system leak detection. Furthermore, wastewater treatment plant upgrades should be considered to enrich efficiency and reduce operating costs.
• Networked LED Streetlights: Smart streetlights are designed to be the foundational component of smart city management as they create a framework for narrowband and broadband communications. They are equipped with sensors, wireless connectivity, and advanced technologies, allowing them to interact intelligently with their surroundings. These sensors can monitor a wide range of parameters, including air quality, noise levels, traffic flow, and pedestrian movement. With this data, city officials can make informed decisions to improve the overall efficiency and livability of the city.
• Environmental Sensors: Deploying smart sensors to monitor pollution levels, noise, air quality, and weather conditions allows city leaders to manage environmental resources better and provide real-time information to residents. Smart city sensors can be integrated with the networked streetlights mentioned above.
• Wi-Fi Connectivity: Providing free or affordable access to public areas promotes digital inclusion and connectivity for other innovative technologies, like digital exhibits.
• Public Safety Enhancements: Installing surveillance cameras with AI-powered analytics helps detect potential safety risks or emergencies. Such information can be shared with law enforcement agencies or emergency responders, optimizing quicker response times.
• Smart Waste Management: Efficient collection and recycling optimize waste collection routes and schedules through IoT sensors and data analysis. Better waste sorting technologies can automate processes to improve recycling rates.
• Smart Transportation Systems: A few solutions exist to improve city transit. Implementing real-time traffic monitoring and adaptive signal control reduces traffic congestion. In terms of public transportation, investing in smart fare collection systems, real-time transit tracking, and digital signage improves the rider’s experience. Lastly, with the expected surge in all-electric vehicle (EV) ownership, cities should increase the availability of charging stations to make charging easy, accessible, and equitable.

Wondering how your city or town stacks up? Our engineers are here to help evaluate your systems and develop a report card for your city. Get in touch with us for a facility assessment.

Smart City Planning and Implementation

Assessing Current City Infrastructure and Needs

When implementing a smart city initiative, you need to start by understanding the costs and the benefits. So, when you’re thinking about the price tag of turning your city smart, consider a few things.

First, consider your city’s priorities, both now and in the future. Think about how old your current systems and equipment are, how well they’re working, and what it costs to keep them running. Check if your staff can handle these systems and their maintenance, and consider potential savings in energy and operations.

You can even explore funding options, like energy savings contracts. Also, don’t forget to calculate not just the initial price but the total cost of the project and the payback it’ll deliver in the end.

Developing a Smart City Plan and Design

Developing a smart city plan or roadmap requires a holistic approach that balances technology, community needs, governance, and financial sustainability. To get started, city leaders can take the following steps:

1. Assessment and Objectives:

Begin by thoroughly assessing your city’s current infrastructure, challenges, and future growth projections. Identify specific areas where smart technology can have a significant positive impact. Then, clearly define objectives. Ensure that these objectives align with your city’s overarching vision and mission. For example, a SMART objective could be reducing traffic congestion by 20% within three years by implementing smart transportation solutions.

2. Stakeholder Engagement:

Engage key stakeholders, including residents, local businesses, government departments, technology experts, and community organizations. Seek input from diverse perspectives and backgrounds to ensure the roadmap addresses the unique needs and concerns of various population segments. This input can be gathered through public meetings, surveys, focus groups, and consultations.

3. Technology Evaluation:

Research and evaluate available smart city technologies that align with the identified objectives. Consider the latest innovations in the field, their compatibility with existing systems, and their scalability to accommodate future growth.

4. Data Management and Compliance:

Develop comprehensive policies and strategies for data collection, storage, utilization, and sharing. Address data privacy and security concerns, ensuring all activities comply with relevant local, state, and federal regulations, industry standards, and best practices.

5. Financial Planning:

Create a detailed budget outlining the costs of implementing smart technology solutions. This should encompass hardware, software, labor, and any associated infrastructure changes. Explore various funding sources, such as government grants, public-private partnerships, energy savings contracts, and other financing options to support the initiatives.

Explore potential grants at Infrastructure Investment and Jobs Act (IIJA) Implementation Resources (gfoa.org)

6. Prioritize and Pilot:

Prioritize projects based on their potential impact, feasibility, and alignment with the objectives. Plan for a phased approach to implementation, starting with smaller-scale pilot projects to test and validate technologies before moving on to full-scale smart city deployment.

7. Adaptation and Maintenance:

Establish a system for ongoing adaptation and feedback collection, ensuring the roadmap remains flexible and responsive to changing circumstances, emerging technologies, and lessons learned from pilot projects. Address feedback and concerns, informing residents about progress and outcomes. Develop a long-term maintenance plan to ensure the sustainability and innovation of smart technologies, keeping the city at the forefront of technological advancements.

Selecting a Qualified Partner

Developing a roadmap may seem complex, but selecting an experienced partner can help. Selecting the right infrastructure provider can make the transition smooth and cost-effective. The best approach is to engage with a licensed, NAESCO-accredited ESCO (energy services company) with a track record of successful projects.

Performance Services offers sole accountability through a design-build approach, meaning your city can rest assured that the project will be handled from design through to implementation with a single point of contact.

Funding Smart City Improvements with Budget-Neutral Financing

City officials recognize that for each project they undertake, there is a financing challenge to overcome. What many cities and towns may not know is that budget-neutral financing for energy-focused smart city technology is possible in most states.

With state-enabled legislation, like energy savings performance contracts, smart infrastructure projects can be implemented with little to no upfront capital. The project is financed and repaid with guaranteed energy and efficiency savings from the improvements.

With Performance Services, you can rest assured that if the actual savings do not match the promised savings, we will repay the difference and make any changes needed. All additional savings stay with the city. 

Case Study: A Successful Smart City Project Example Focused on Water Management

The City of Jacksonville, Texas, was experiencing issues with aged water meters and inefficient metering processes. In 2018, the City of Jacksonville launched a smart water technology initiative to improve operations, enhance customer service, and reduce maintenance costs. Through an energy savings performance contract, the City upgraded to smart water meters and advanced metering infrastructure, giving both the City and residents real-time insight into water usage.

A critical part of the infrastructure was the decision to add a radio-controlled auto-shut-off feature. This allowed the City to remotely shut off all residential meters in the event of a natural disaster. This feature proved invaluable during the February 2021 Texas freeze. When temperatures dropped below freezing, the City began auto-shutoffs to safeguard water lines. This action saved the City millions of gallons of potential water loss and prevented devastating damage to the water pipe infrastructure.

In 2021, as a result of this project, the Smart 50 Awards Program honored the City of Jacksonville’s AMI/smart city project as one of 50 projects globally for its innovation and community impact.

Conclusion

With strategic planning and commitment to innovation, local governments undertaking improvement projects in these areas will undoubtedly take a step toward becoming smarter cities and towns. The result is sustainable development, enhanced efficiency, improved safety, and modernized infrastructure.

Are you interested in exploring smart infrastructure for your city? See what steps you can take now to prepare for the future. Contact our team for more information.