How Cities Can Leverage Fintech to Boost Bond Performance, Increase Revenue, and Plan for the Future

Managing city finances is tough in any climate, but the recent economic challenges—rising inflation and tighter household budgets—have made it even more daunting. This year, cities, counties, and school districts across the U.S. faced a tough crowd at the ballot box. Tax initiatives and bonds that might have sailed through in the past struggled to gain traction. Voters, hit hard by inflation, decided to vote with their wallets, saying “not right now” to additional taxes.

But here’s the good news for cities: a “no” today doesn’t mean your community won’t support your city's goals tomorrow. While cities plan for the next election cycle, now is the perfect time for them to explore fintech solutions that can stretch their dollars, increase efficiencies, and bolster revenues in creative ways.

Rethink Revenue Strategies with Fintech

Cities and counties can turn to financial advisors and wealth managers who specialize in fintech tools to bridge the gap between budget constraints and community needs. These tools can help cities identify efficiencies in their current operations and even find new revenue streams.

For example, instead of issuing new bonds or increasing taxes, cities can optimize their existing portfolios. Finance pros like Morgan Stanley, LPL Financial and Goldman Sachs have developed digital platforms to provide advanced solutions for managing city investments, helping municipalities allocate reserves intelligently and forecast cash flow needs with the aid of AI-driven tools. These digital platforms offer robust data analytics, risk management, and financial insights that are particularly valuable for identifying alternative strategies to optimize cash flows and increase revenues without relying on new tax measures or needing to issue new bonds. They can help cities explore options on how to reallocate assets, reduce expenses, or make strategic reinvestments into more profitable investment options. Together, these platforms demonstrate how technology can streamline municipal finance and amplify returns while maintaining fiscal responsibility.

Use Fintech to Build Voter Confidence

This election cycle taught us that timing matters. Voters didn’t reject city or school district initiatives because they don’t care; they simply prioritized their own financial well-being during a period of high inflation. Cities can use fintech not only to stretch their budgets but also to showcase fiscal responsibility to voters. Transparency-focused platforms like Neighborly Software allow residents to track how their dollars are being used, building trust and goodwill.

When the time comes to reintroduce a tax initiative or bond proposal, cities can point to tangible results achieved during the interim. For example, leveraging fintech tools to fund infrastructure or green initiatives without new taxes demonstrates innovation and resourcefulness.

Embrace Innovation to Prepare for the Next Cycle

Voter fatigue around taxes is real. From citywide measures to school district bonds, taxpayers often feel overwhelmed by the sheer number of requests, particularly during times of economic uncertainty. This period of recalibration is a golden opportunity for cities to adopt fintech-driven innovations that can reduce costs and improve outcomes.

Whether it’s blockchain-based bond issuance to lower costs, AI-powered cash flow tools to optimize spending, or community bond platforms to engage residents directly, fintech offers cities a chance to adapt and thrive. By working closely with wealth managers and exploring fintech money management platforms cities can reimagine their financial strategies and create a compelling case for future voter support.

Remember, a setback at the ballot box isn’t the end—it’s a chance to rethink, rebuild, and innovate. With fintech solutions in a city's toolbox, they can create a smarter, more sustainable future for their community and budget.

Land Use Gifts: Holiday Markets

'Tis the season for holiday markets, they are full of sparkle and wanderlust. If you know, you know. If you haven't been to one yet, know they bring a new dimension to the holiday shopping experience and to their host cities.

Growing up in Southern California I didn't really know much about holiday markets, or that they were even a thing that brought the magic of the season to life. It wasn't until my first year in college in New York City that I learned about the enchanting allure of holiday markets during my first visit to the Union Square Holiday Market.

The layout of the market and the vendors completely transformed Union Square Park and made it the perfect escape from studying for finals. It was no longer just one of the most popular city parks in the City, it had become a vibrant outdoor market where the vendors and customer buzz muted the cold winter chilly nights and led you down rows of captivating treasures. Part of the draw for my 18 year-old self was that I knew it was a "New Yorker" thing to do and it also presented the opportunity to score an array of novel yet affordable gifts that were uniquely "New York."

It was there that I bought my first pair of cashmere lined leather gloves from an artisan seller with a fierce lineup of gloves. I can't remember how much I paid for the gloves, but I do remember feeling like I had gotten a deal worth bragging about. That first trip was all I needed to make me a believer in the charm of holiday markets.

Holiday markets have been around for centuries in Europe, way before the modern day American urban planning discipline was conceived in the early 1900s. However, with the rise of farmers markets in U.S. cities since the USDA began tracking them in 1994, more and more U.S. cities are also turning to this special placemaking tool in the urban planning tool box to boost holiday charm in their cities. Like farmers markets, the real upside of holiday markets is their ability to bring in a lot of extra foot traffic and sales tax dollars, and they are also a great opportunity for small businesses.

There's a lot of varialibility when it comes to holiday markets and depending on the city they can come in all shapes and sizes. If you're wondering how you can get a holiday market going in your area, they aren't that hard from a land use perspective. They are almost what I would call a land use gift because they are often either a conditional allowable use or they can be allowed via a special events permit to operate for a day or a series of days during the holiday season.

Here is a list of some other holiday markets around the globe that are setting the aspirational standards for others. The list is in no order of preference, instead it is organized by the earliest seasonal opening date:

• Winter Village at Bryant Park, New York - runs from October 27 to March 3

• Wiener Christkindlmarkt, Austria - runs from November 10 to December 26

• Hyde Park Winter Wonderland, London - runs from November 17 to January 1

• Christkindlmarket Chicago - runs from November 17 to December 24

• I Mercati Natale, Piazza Santa Croce, Florence - runs from November 18 to December 17

• Basel Christmas Market, Switzerland - runs from November 23 to December 23

• Fira de Santa Llucia, Barcelona - runs from November 24 to December 23

• Strasbourg Christmas Market, France - runs from November 24 to December 24

• Gendarmenmarkt, Germany - runs from November 27 to December 31

• Christkindlesmarkt, Germany - runs from December 1 to December 24

Who Owns and Operates the Airport in Your City?

When we think of airports, we often think of vacation or work travel. We also think of it as a place we go to pick someone up that has come to visit us. We hardly ever stop to think about how airports work, we are just happy that they are there to take us to our destination.

My hunch is that if you ask the average person on the street who owns the airport in their city they will struggle with providing an answer. Some may guess and say "the city" and depending on the city, they may be right. However, airports are often managed by an "airport authority" that is publicly managed with a governing board of directors comprised of elected or appointed regional leaders.

I was curious about the top 10 US airports and who runs them, and created a quick reference table that also includes my hometown airport, San Diego:

Passenger wise, Hartsfield-Jackson Atlanta International Airport is the busiest airport around the country. If you're wondering how Atlanta has more travelers than New York or Los Angeles, don't forget that both New York and Los Angeles are serviced by 3 airports each: New York is serviced by JFK, La Guardia and Newark; and Los Angeles is serviced by LAX, Burbank and Long Beach.

While, Atlanta has the most passengers traveling through it, Chicago's O'Hare International Airport has the highest operating expenses even though it's only the 4th busiest airport:

It takes a lot to get airports running smoothly so that we can check in, get through security and make our flights in time for take-off. How airports are governed is just one piece of the puzzle. Airport management is impacted by various supply and demand factors and like the airline industry, airports were hit particularly hard during Covid-19 and are still bouncing back. McKinsey recently reported that during the pandemic "aircraft movements and passenger traffic...plummeted to less than half their usual volumes," and also resulted in airport concession stores closing permanently.

Even though government grants helped to soften the blow of the pandemic, they were only temporary relief measures and the decline in passenger and aircraft activity continues to have residual effects on airport cash flows. Now more than in pre-pandemic times, airports across the country are thinking about ways to diversify and increase their future cash flows to ensure they deliver seamless and safe travel experiences.