Key Takeaways

• Economic development is a key focus for municipal leaders aiming to create resilient communities amidst financial challenges.
• Investments in energy-efficient infrastructure can significantly reduce costs and enhance local revenue for municipalities.
• Tailored economic development plans based on community needs are essential for effective investment and growth.

Strategic Investments in Community Infrastructure

According to the National League of Cities’ 2025 State of the Cities report, economic development has become a top priority for municipal leaders. These leaders face challenges like budget shortfalls, demographic shifts, and political uncertainty. A strategic focus on economic growth through infrastructure investment is emerging as a solution to these issues. Such investments not only lead to sustainable, low-carbon growth but also enhance budget stability by reducing operational costs and attracting residents and businesses.

Facility master planning is an essential method for local governments to maximize resources. By modernizing infrastructure with energy-efficient technologies, municipalities can decrease utility expenses, address deferred maintenance issues, and improve service delivery without increasing taxes or cutting vital programs. A notable example is the City of Reading, PA, which is implementing an $18 million energy infrastructure upgrade in partnership with Schneider Electric. Set to complete in 2026, this project includes improvements like HVAC upgrades, LED lighting, and building automation across 14 city buildings. With over 4,000 solar panels installed, the project will offset electricity consumption for the Public Works building and significantly reduce costs at City Hall. These upgrades will ultimately provide substantial savings, allowing the city to reinvest in public services.

According to Bethany Ayers-Fisher, Sustainability Manager for Reading, the initiative aims to build a resilient and economically vibrant future for the city rather than merely achieving energy savings.

Transforming Facilities into Economic Drivers

Facility master planning has the potential to turn city infrastructure from a financial burden into a catalyst for economic development. By aligning these investments with community priorities—such as tourism and business attraction—cities can foster sustainable economic growth.

Sierra Vista, AZ, illustrates this approach. The city has partnered with Schneider Electric for a $40 million modernization plan aimed at enhancing its appeal as a sports tourism destination. The project includes solar carports, EV charging stations, and an overhaul of their sports complex. From 2019 to 2021, these enhancements generated an estimated $3.3 million in economic impact and attracted over 11,000 new visitors. The long-term economic impact is projected to reach $138 million. As Assistant City Manager Victoria Yarbrough stated, the partnership with Schneider Electric has been crucial in realizing the city’s strategic vision.

Crafting a Community-Specific Economic Development Plan

Effective economic development starts with evaluating a municipality’s unique conditions. Leaders should consider elements like deferred maintenance, resilience to extreme weather, and population trends to identify impactful investments.

Upgrading to grid-interactive efficient building (GEB) systems can provide flexibility for adapting to changing community needs while optimizing energy costs. GEBs not only reduce expenses but also bolster resilience and sustainability—key to long-term growth.

Funding remains a substantial hurdle in implementing these initiatives. However, cities can utilize Energy Savings Performance Contracts (ESPCs) to alleviate upfront costs, allowing projects to pay for themselves over time. By harnessing energy savings and combined federal and state grant funding, municipalities can work with partners like Schneider Electric to identify feasible financial solutions.

Building Future-Ready Communities

Modernizing municipal facilities can create economically resilient and future-ready communities. Schneider Electric has assisted numerous municipalities in transforming their infrastructure into growth engines. With expertise in energy efficiency and sustainability, Schneider Electric stands as a leading partner for local governments striving to enhance their services while minimizing costs. A free guide, “Rethinking Sustainable Investment to Create Economic Development,” is available to help cities explore new revenue opportunities and build brighter economic futures.

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