The impact of smart city applications is real and tangible. Leveraging the combination of sensory systems, the Internet of Things, cloud computing, and intelligent metering applications, municipalities worldwide are able to deliver high-quality services at vastly reduced prices. However, retrofitting the modern urban landscape is costly and the financing models are immature. Who is typically participating in the financing of the transition of municipalities into «smart cities»? What resources will be needed and what will be the consequences of such a transformation?