What Our 2024 State of Municipalities Report Means for Cities

Infrastructure is a frequently used buzzword in government, and for good reason. Much of the U.S. has deteriorating bridges, roads, and other public goods. Maintaining and improving infrastructure is significant to all municipalities, regardless of size.

According to The American Society of Civil Engineers, much of the country’s infrastructure is below standards. 

Unsurprisingly, it ranked as a top-mentioned priority in our 2024 survey of municipalities, outranking others by a wide margin. Its significance to city governments is particularly pronounced.  

74% of cities that responded to the survey cited it as the biggest priority in the past year.

To capture its importance to operations and relay other findings, we’re breaking down city-specific data from our report. 

Here are the themes that cities faced in 2023 and this year. 

Infrastructure needs stand out 

Cities focused heavily on infrastructure needs last year. In 2023, they directed much of their attention to asset improvement. Many focused on repairing and maintaining roads, sidewalks, and water/sewage systems. Notably, 79% of cities cited one of these as their top infrastructure priority.

Securing funding a serious challenge 

The biggest challenge cities face is securing funding for these infrastructure projects. 38% of cities identified receiving funding as their most pressing issue. 

This challenge is followed closely by the need to manage ongoing and future projects. 35% of cities indicated project management was a concern. 

Budget allocation realities 

Maintenance budgets are substantial across all municipalities. 36% of cities devote more than 15% of their spending to maintenance. And 72% of them devote more than 10%. 

This ongoing investment is necessary as 61% of cities pave or resurface roads annually, and many inspect bridges, water mains, and sewage lines on a 1-3 year basis.

Assessing software solutions 

Operational and maintenance software are critical for municipalities. And cities are no exception. Many have specific processes for vetting vendors and assessing their capabilities. Here are some software-specific findings for cities from our report.

What tools cities rely on for operations 

Cities methodically adopt tools to improve maintenance and asset management efficiency. The most commonly used are Geographic Information Systems (GIS) (21%), citizen feedback mechanisms (20%), regular inspections and surveys (19%), and asset management software (15%).

However, there remains a gap in adopting more advanced technologies such as IoT sensors, which only 2% of municipalities currently leverage. IoT and other automation technologies could significantly enhance asset management practices.

Evaluation and approval 

Cities most often assess their software annually with 24% completing the process yearly.

Securing approval for new software purchases often involves legislative oversight, with 80% of cities requiring approval for purchases. Most must present strong business cases for fixed asset management to improve efficiency and cost control.

How fixed asset management software can help 

Cites invest substantial portions of their budgets in infrastructure maintenance. However, many rely on outdated methods for managing these projects, leading to inefficiencies and budgetary strain. Compounding this reality, is the difficulties they face in attracting and retaining workers.

As cities seek to attract and retain skilled labor, the use of fixed asset management software can play a critical role. This technology not only helps optimize labor hours but also increases staff productivity by automating and centralizing key tasks, such as asset management and preventive maintenance.

Leveraging the right fixed asset management software

Completing and managing ongoing projects can be challenging without the right software. Municipalities can manage disparate functions all in one place, eliminating many infrastructure project challenges.

Moreover, asset management software helps municipalities maximize the funding they receive. Leading municipalities use asset management software to control their costs. With robust features like facility management tools and building automation integrations, asset management software can help governments identify and reduce costs to maximize their funding’s usefulness.

These software solutions also help municipalities effectively recruit and retain staff while enhancing team productivity. Asset management software allows municipalities to optimize labor hours and cut costs.