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The Smart Cities Council has released a first of its kind tool, which helps cities understand their financing options for technology project. The Smart Cities Financing Guide, developed in partnership with Arizona State University Center for Urban Innovation, outlines 28 of the most promising financial tools for urban infrastructure enhancements. The guide also includes a detailed analysis of each option based on 10 characteristics to help decision makers easily identify the best tools for specific types of projects as well as examples of how these tools are being used today.
The report argues that although the emergence of innovative technologies creates promises to help cities become smarter, a significant challenge remains: how cities can find ways to finance the much-needed infrastructure upgrades.
The financing options outlined in the guide fall into four general categories:
- Government based financing tools
- Development exactions
- Public-private partnerships
- Private fund leveraging options
In addition to these, the guide also examines 10 characteristics which help decision makers see how different types of projects in different types of communities demand different types of financing. These characteristics are:
- Sources of capital
- Number of parties
- Ease of securing financing
- Duration of financing
- Risk to investors
- Risk to borrowers
- Tax implications
- Source of repayment
- Advantages
- Disadvantages
Source: Smart Cities Council