Why cities can’t afford to wait: how cities can secure infrastructure funding

In part two of ‘The Infrastructure Imperative’ blog series, we will explore the role of data and technology in infrastructure planning, climate change and how to break down silos. Missed part one? Read about why decision-making is only getting more complex.

Moving beyond traditional funding decisions

While the infrastructure challenge is clear, making funding decisions isn’t as straightforward. Cities must balance their need to support infrastructure projects without overwhelming taxpayers or driving away businesses. In North America, Canadian and US municipalities handle infrastructure funding and asset investment planning differently.

Canadian provinces have implemented mandatory asset management practices that tie funding to comprehensive infrastructure planning. To receive financial support, cities must demonstrate a detailed understanding of assets, as well as their condition and maintenance needs. Canada’s provincial regulatory approach has resulted in systematic infrastructure management and created a clear framework for infrastructure investment decisions. 

While US states have fewer mandatory requirements, some cities are acting to improve their infrastructure planning. More cities are successfully using technology to better understand and articulate their needs, utilizing business analytics platforms throughout this process. Rather than simply requesting funding, they’re developing comprehensive assessments demonstrating how investments will maintain service levels and reduce long-term costs. As this data-driven approach is creating positive results, this serves as evidence that cities with robust asset management and investment practices can often secure better bond ratings, allowing them to gain more affordable financing for critical projects. 

Other cities are getting creative with funding strategies, using improved understanding of infrastructure needs to target specific funding sources. When they can clearly communicate and demonstrate needs—like replacing lead pipes near schools or providing flood control—they’re more successful in securing federal grants and other targeted funding. Cities can tap into multiple funding sources and build public trust by making transparent, data-driven decisions. Consequently, this will bring better outcomes to their community by improving levels of service, safety and citizen well-being.

Breaking down silos

In Arcadis’ work with many cities, we find the need for a unified approach. Water departments schedule pipe repairs while transportation plans road work on the same street. Park departments plant trees without coordinating with the maze of utility lines underground. The result? Residents endure disruption while city resources feel the strain of uncoordinated projects. 

But cities are exploring different approaches to breaking down these silos. For example, the city of Washington, DC, centralized its asset management under the Office of the CFO, creating a single point of oversight for infrastructure planning across all departments. The CFO’s office collects data from all departments, conducts analysis and pushes information back out to departments—creating a unified view of infrastructure needs while maintaining departmental expertise. Other cities are exploring distributed models where departments maintain control of their planning while feeding into a centralized system. This approach lets departments maintain their autonomy while providing coordination at the city level. Both centralized and distributed models have advantages—the key is finding the right balance for each city’s specific needs and capabilities. Learn more about Enterprise Decision Analytics.