Funding Smart Cities

Dan Clarke - @danstagger

Why Smart Cities?

‘Technology presents us with the opportunity to address city challenges,

create better civic participation and to make peoples lives

better’

Smart City large Scale Pilots

Public, Private collaborations - pilots

Primarily funded by

Second –tier – No major funding sources

• Some funding – but working out how to pay for a wider smart city deployment

• Searching for business cases• Create a sustainable model

Aspirins V’s Vitamins

Aspirins – Ease budgetary pain

Vitamins – stimulate

growth, support healthier Cities

Smart Street-lighting

Air Quality Monitoring

Smart Parking

Smart Traffic Management

Smart Waste

Commercial

Connected Care

The Cambridge PatientDiagnosis – Significant Budgetary PainCambridgeshire County CouncilSavings Since 2009 - £218mCurrent Budget - £510.4m (excluding schools)Savings Required by 2020 - £100m

Cambridge City CouncilSavings Since 2009 - £6mNet expenditure - £25.6mSavings Required by 2020 - £6.5m

Budget Breakdown - CountyHealth and Social Care

£342.7m

Building Schools and Roads

£35.5m

Highways Maintenance£33.3m

Waste and Recycling£34.5m

Libraries and Heritage£5.3m

Community and Frontline services

£58.7m

67%11.5%6.9%6.7%6.4%1.5%

Central Services inc. tax collection & elections, £2.2m

Cultural related Services inc. arts, recreation, parks, open spaces and community facilities,

£8.8mEnvironmental & Regulatory Ser-vices inc. refuse collection, street cleansing and en-

vironmental health, £14.8m

Planning & De-velopment

Services, £8m

Car Parks & transport related services, £5.6m

Housing Services (excl. housing rev-

enue account), £5.3m

Housing Benefit, £42.7m

Corporate & Democratic

costs, £2.4m

Other expendi-ture, £4.2m

Revenue Fund-ing of Capital,

£9.8m

Budget Breakdown – City Council

• 25 Year - PFI• The street lighting PFI programme will deliver

energy savings in the region of 46% to the County Council.

Already Prescribed………………….Street Lighting

A missed opportunity?

Big Belly Bins.

• Reduces bin collection costs by up to and over 70%.

• Proven to reduce street bin collections by an average 86%.

County - Mild Pain - 3 Asset Management - £1mParking enforcement - £3.4mNetwork Management £1mWinter Maintenance - £1.2mAQ - £23KRTPI - £155KIHMC - £195K

Estimated Budget for Vitamins £0

Estimated Budget for Aspirins £1m

City - Moderate Pain - 4 Environmental and regulatory services - £14.8mCar parks and transport - £5.6mCultural - £8.8m

Estimated Budget for Vitamins £0

Estimated Budget for Aspirins £3m to £4m

CCC - Severe Pain - 9 Health and Social Care – £342.7m (67% of spend)Community and Front line services - £58.7m • Radical transformation of the way

we deliver these services• Huge savings• Significant role for technology• Societal issue we need to tackle!

To ease the pain we need to;

• Provide better preventative measures to avoid expensive care interventions

• Target interventions .• Help and support people’s responsibilities

for their own health and wellbeing. • Build community resilience.• Better share data and information

between agencies.

Pain Relief

Considerations

• Capital V’s Revenue• Low cost• Interoperability, e.g. NHS• Live depend on:• Robust data • Connectivity

• New business models – joint funding: Family/Authority; Insurance Co’s, etc

Funding Smart Cambridge• City Deal:

– One-off piece of funding primarily aimed at easing the pain of congestion

– Capital– Ensuring infrastructure enables ‘Smart’ solutions

• Health and Social Care – technology opportunities and new business models

• Collaboration – e.g. A14 • New housing developments• Looking for new/sustainable business cases from other cities• InnovateUK, European funding, etc.• Open eco-system – stimulate private sector

innovation/investment

Scaling Smart Cities• For each city identify where Aspirins are

needed – clear route to profit.• Use these to begin to build infrastructure to

support other applications.• Build solutions which are sustainable - lower

revenue commitment.• Identify opportunities for Capital – business

model must meet objectives• Need to develop new models – private sector

invest directly• Share best practice – cities work together

Questions