TECH UPDATES: Using Data in Your Local Government: A Guide for Beginners

April 1, 2025

By Marc Pfeiffer (Published April 1, 2025 at ICMA.org)

This article is for you if your organization hasn’t had the opportunity to assess your data and how it’s used. If you’ve had that discussion and have embarked on a data management process, feel free to move on to another article. But, if you haven’t or want a brush-up on what you could be doing, keep reading.

Like roads and utilities, the collection and analysis of data have become vital tools that enable municipalities to tailor services to their residents. But what does this mean for you and your community? This guide will help you understand how to use information to serve your community better.

Data is the information you’re already collecting. Whenever someone applies for a building permit, calls about a pothole, or pays their water bill, your organization gathers valuable information.

The Information You Already Have

Your systems are already collecting valuable information. When someone applies for a construction permit, you learn about new economic activity. Service requests show which neighborhoods need more attention. Budget records reveal spending patterns that affect planning. Infrastructure reports tell you about road conditions and utility performance. Census data and local surveys depict who lives in your community and how demographics change.

Today’s Internet of Things (e.g., sensors that record and/or transmit data) technology also gives us new kinds of real-time information. (This is the real value of smart city tech.) Traffic sensors can show where congestion builds up during rush hour. Water meters can detect leaks before they become visible. Emergency response systems track where and when people need help most often.

Making This Information Work for Your Community

Using your community’s information wisely leads to better decisions and more efficient services. Knowing which streets have the most potholes, you can plan repairs more effectively. Understanding water usage patterns helps you spot leaks faster and save money. Vehicle maintenance records can lead to improved practices and capital equipment planning. The range of public safety calls for services can provide a rich profile of public needs. In winter, nothing says transparency like collecting real-time GPS data from snowplow trucks and putting it online so people can see where the plows are.

This approach to governing isn’t just about efficiency—it’s about being responsive to your community’s needs. When a resident asks why you chose to repair one street before another, you can point to actual traffic patterns and road conditions data. When planning next year’s budget, you can show exactly how many people use different services and where the greatest needs are.

Starting Your Data Journey

The first step is understanding what information your town already has. Talk with your department heads about what records they keep and how they use them. Most communities already have essential tools, i.e., computer systems to store information, special software that tracks permits or water bills, mapping systems for planning, and tools to analyze and report on what’s happening.

You don’t need to start with expensive new systems. Begin by making better use of what you have. Look for opportunities to share information between departments. For example, your building department’s permit data might help your fire department plan inspections more effectively. Add data discussion to management team meetings.

Overcoming Common Challenges

Many communities face similar challenges with their data. Different departments might track the same information differently, making it hard to get a complete picture. Older computer systems often can’t share information easily. You must protect residents’ private information while being open about government work. Many towns also struggle with limited staff and resources for managing information effectively.

These challenges are real, but they shouldn’t stop you from progressing. Start with small, manageable projects that solve specific problems. For example, you might begin tracking pothole repairs and resident complaints to spot patterns and improve road maintenance. Success with small projects builds support for tackling more significant challenges.

That said, new technologies and cloud-based platforms are designed to digitize activities; they let you capture and analyze data, tasks previously limited to paper and personnel. For example, most AI chatbots can take an Excel workbook complete with data or a report with data charts and analyze it for you. Treat it as your assistant and ask it to analyze the data as you would ask an assistant.

For those who have not yet experimented with a chatbot, see the January and February 2024 PM Tech Update column or ask Google (or any search engine), “How do I ask a chatbot to analyze a worksheet or report?” It will be the best 10 minutes you can spend today!

Building a Data-Smart Community

Creating a data-smart community takes time and leadership. As a CAO, you play a crucial role in this journey. Ask your staff for data when making important decisions. Make sure privacy protections are in place. Push for needed updates to outdated systems. Help staff get training to use new tools effectively.

Privacy and security deserve special attention. Your citizens trust you with sensitive information, from utility billing data to emergency response records. Clear policies about what information can be shared and how to protect sensitive details are essential. (See the December 2024 column on tech policy issues.)

Consider partnering with nearby communities to share resources and learn from each other’s experiences. Many smaller towns have found creative ways to improve their data use without big budgets. Networking with your peers can amplify each other’s work.

Almost all cloud-based systems (more and more systems are moving to cloud delivery) are integrating AI tools into them to support data analysis.

Moving Forward

Remember, improving how your community uses data is a journey, not a destination. You don’t need to become a technology expert. Add developing data capacity to your team’s mission statement. Start with clear goals tied to specific community needs. Build council and public support by showing how to use data to provide better services and allocate taxpayer dollars more efficiently.

Look for champions who understand both technology and community needs. Support their efforts to improve how you collect and use information. Engage with staff and residents to understand what information would help them most. Share your successes to build support for continued improvements.

There are also some tremendous outside resources available to you. At the sophisticated level are the Bloomberg What Works Cities and Harvard Data-Smart City Solutions programs. For smaller places with fewer resources, take advantage of the training and networking of Innovate-us.org and Apolitical.

Your role is to lead this journey, asking the right questions and supporting the changes needed to serve your community better. Every step toward better use of information helps your community get more value from its resources and better service for its residents.

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