How Municipalities Can Budget for IT 

Cyber Security IT Consulting Managed IT

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by - March 18, 2025

For municipalities, establishing an effective IT budget is essential for maintaining secure, efficient, and future-ready operations. Cities and towns face unique IT challenges, from managing aging infrastructure and ensuring data security to complying with regulations and meeting the needs of residents. A well-structured IT budget allows local governments to be proactive–rather than reacting to costly emergencies–and to provide essential services while maximizing available funds. 

So, where should municipalities begin when creating a yearly IT budget? 

1. Assess Your IT Assets 

Before allocating funds, it’s important to take inventory of your existing IT environment, including the following: 

  • Hardware: Servers, endpoints (desktops, laptops, mobile devices, and related components), network Infrastructure (routers, switches, wireless access points), storage drives, printers, scanners, telecommunications, cloud storage and integration tools 
  • Software: Applications, licenses, subscriptions, hosting services, support contracts, VPNs 
  • Personnel: Costs related to internal IT staff and any outsourced support 
  • Security measures: Firewalls, endpoint protection, backups, monitoring, threat detection tools, vulnerability assessment, and cybersecurity training  

Reviewing previous IT budgets provides insights into spending trends and areas where adjustments may be needed. Identifying outdated systems, underused software, and security vulnerabilities will help guide future IT investments. 

2. Set Clear Objectives

Once your municipality understands its current IT standing, the next step is defining strategic objectives, considering: 

  • Enhancing cybersecurity: With data breaches on the rise, investing in robust cybersecurity is non-negotiable. 
  • Upgrading outdated infrastructure: Aging systems and unsupported hardware can hinder productivity, as well as pose security risks 
  • Implementing smart city initiatives: investing in digital services that enhance efficiency and civic engagement 
  • Disaster recovery and business continuity planning: Ensuring data integrity, recovery, and operational resilience 

Setting clear IT priorities will allow decision-makers to allocate funds where they will have the greatest impact, while avoiding unnecessary expenditures. 

3. Prioritize and Justify IT Initiatives

Municipalities typically allocate 2-4% of their total budget to IT spending, depending on the population size and complexity of operations. With limited resources, it’s critical to distinguish between essential IT investments and nice-to-haves. Critical areas to prioritize include: 

  • Cybersecurity: Protecting sensitive municipal and resident data 
  • Regulatory compliance: Meeting state and federal requirements 
  • Cloud migration and infrastructure modernization: Reducing reliance on aging, on-premise hardware 
  • Resident-facing digital services: Ensuring accessibility and convenience for the community 
  • Other department-specific technology: Police, Fire, Water/Sewer, Infrastructure Management 

When presenting a budget proposal, you should be prepared to articulate the expected ROI, along with the rationale behind reallocation of funds. Decision-makers, including city councils and finance committees, will be more receptive to IT spending when they understand its impact on efficiency, security, and long-term savings. Being realistic about costs, and building in a contingency for unexpected IT expenses, ensures that municipalities are prepared for planned upgrades and unforeseen challenges. 

4. Allocate IT Budget Resources Wisely

A well-balanced IT budget includes both ongoing operational costs and future project-specific investments. Consider these core categories: 

  • Hardware & Infrastructure: Servers, network upgrades, workstations, storage solutions, data migration costs 
  • Software & Licensing: Annual subscriptions, cloud services, and enterprise applications 
  • Personnel & Managed Services: Salaries and costs for in-house IT staff and costs and benefits of outsourcing to IT Managed Service Providers 
  • Cybersecurity: Security software, training programs, and incident response plans, including recovery and remediation 
  • Training & Development: Educating employees on security best practices and technologies 

5. Leverage Managed IT Services

For many municipalities, outsourcing IT to an MSP can be an effective way to gain the benefits of industry-specific expertise without the overhead of expanding internal IT teams. Managed or Partially Managed services include: 

  • Proactive monitoring and maintenance to prevent costly downtime 
  • Cybersecurity solutions tailored to municipal needs 
  • Scalable cloud services for data storage, backup, and software access 
  • Centralized and standardized IT to eliminate redundant, outdated, or duplicate technology 
  • On-call support for issues that arise 

By partnering with a trusted MSP, local governments can optimize their IT budgets while ensuring reliable and secure technology infrastructure.  

Budgeting for IT is about investing strategically in the technology that powers essential government functions, not just managing costs. A well-planned IT budget allows municipalities to make sure taxpayer dollars are used wisely to enhance cybersecurity, allow for contingencies, improve government services, and keep day-to-day operations running smoothly. In taking a proactive approach to IT budgeting, you’ll transition from reactive spending to a long-term strategy that supports both municipal employees and the community they serve.  

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Why Password Management Matters 

Did you know that the simplest, best defense against cyberattacks is a solid password? From business logins to online banking to email, passwords are the keys to our digital lives, and therefore valuable targets for hackers. Knowing how to create, manage, and protect passwords isn’t a “nice-to-have;” it’s critical to safeguard your information. 

You might be shocked at how easy it is to obtain your personal login information, and you probably won’t know it’s happened until it’s too late. The dark web–that hidden corner of the internet–is teeming with stolen credentials. Hackers access compromised passwords through data breaches, phishing scams, and malware attacks, then put them up for sale to anyone willing to pay. This makes strong password management, including the use of secure passwords and two-factor authentication (2FA) more important than ever. 

Creating Secure Passwords: Length, Complexity, Uniqueness, Unpredictability

No, “password123” definitely won’t cut it. Neither will the use of birthdates, pet names, or other personal details you may have used previously to answer security questions. Secure passwords should be long (think 12 characters at a minimum), complex (a mix of numbers, letters, and symbols), and unique for every account. The best way to create a password that’s easier to remember is to use a “passphrase,” a series of words or a sentence, rather than a random string of letters and numbers. It can feel overwhelming to keep track of so many passwords, and why many people fall into bad habits like repeating passwords in multiple places, writing them down, or choosing overly simple options. No matter how good a password is, if a hacker gets access to one, they’re likely to try the same password on other platforms, leaving you vulnerable to a more extensive breach.  

Password Managers

Password managers like LastPass can store complex passwords, so you only need to memorize one master password to access the others. Serving as a personal vault for your digital keys, a password manager offers the convenience of auto filling your login details, generating random, hard-to-crack passwords, and notifying you if a saved password appears in a data breach so you can promptly change it. And most password managers sync across devices, so you always have access to your logins. When choosing a password manager, look for features like encryption, ease of use, and compatibility with your devices.  

Adding a Layer with 2FA

Two-factor authentication is like adding a deadbolt to your front door. With 2FA, logging in requires both your password and a second form of verification, like a code texted to your phone or generated by an app. That way, even if someone manages to get ahold of your password, they’ll still need that extra code to access your account, making it more difficult for hackers. Many platforms now offer 2FA and enabling it wherever possible provides a powerful layer of protection. 

Keeping Up Good Password Hygiene

Password management can feel tedious, but regular password changes, avoiding reusing passwords across sites, and using a secure password manager makes a world of difference. Think of it as a routine task, like updating your software or cleaning out your inbox. The steps to secure your passwords and add a second layer of protection are relatively easy and ensure that you’re doing your part to keep both your personal and work-related information safe. 

As data breaches become more and more common and cyberattacks more sophisticated, securing your passwords is one of the smartest moves you can make. It’s just a piece of the larger cybersecurity puzzle, but it’s essential for keeping the doors to your digital information locked. To learn more about how Nessit can help your business protect sensitive data, train and educate employees, and implement password management best practices, get in touch. 

Why Cybersecurity Training is Essential for Employees 

The single most effective way to safeguard your business from cyberattacks is through employee training. Human error due to inadequate training accounts for the vast majority of data breaches. To foster a collective security-first culture, awareness about potential threats is essential. Nessit’s Managed IT Service includes comprehensive cybersecurity education that will allow you to rest easy knowing your company’s assets are protected. 

Employees can unknowingly become the gateway for cybercriminals by clicking on malicious links, using weak passwords, falling for phishing scams, or accidentally sharing sensitive information that can compromise your entire network. Here’s what you need to know to protect sensitive data and maintain the integrity of your IT infrastructure: 

Understanding Common Threats 

Employees should be familiar with the most common types of cyber threats, including phishing, ransomware, malware, and social engineering. Training sessions should include real-life scenarios and case studies to illustrate how these attacks happen and their potential impact on your business. 

Safe Online Practices

Everyone within your organization should be able to recognize suspicious emails, avoid clicking on unknown links, and verify the authenticity of email senders and domain names. Employees should also be instructed on how to create secure passwords and the importance of multi-factor authentication. 

Data Protection and Handling

Cybersecurity training should include instruction on the principles of data protection. Employees at every level should understand how to securely store, transmit, and dispose of sensitive information. Training should also emphasize the importance of keeping software and systems up to date to eliminate vulnerabilities. 

Incident Response Protocols

Knowing how to respond to a potential security threat is crucial. Employees should be given clear guidelines about what to do if a data breach is suspected, including their first point of contact and what steps to take to mitigate the impact. 

Ongoing Training

Maintaining security is a constantly evolving undertaking, and staying updated on the latest threats and best practices is critical. Ongoing training sessions and refresher courses will help ensure that your employees’ knowledge remains relevant and effective. 

Invest in Success

Investing in cybersecurity training is an investment in the overall success of your business. Most security breaches are not the result of complex hacking schemes, but simple human error. Ongoing education empowers employees to become your company’s first line of defense rather than its weakest link. Knowledge about how to identify and respond to cybersecurity threats protects your organization from the inside out. Partnering with a Managed Service Provider like Nessit will ensure a secure and resilient IT environment for the long term. 

Cybersecurity – An Ongoing Process, not a One-Time Fix 

Cybersecurity is a critical component in any organization, large or small. The increasing frequency and evolving nature of threats means that simply installing antivirus software or setting up a firewall isn’t enough. Security is an ongoing process that requires constant vigilance, regular updates, and proactive measures. As a Managed Service Provider (MSP), Nessit understands the complexities of maintaining robust cybersecurity and is dedicated to safeguarding your business. 

The Continuous Nature of Cybersecurity 

Unlike a one-time software installation, staying on top of your cybersecurity is a continuous process. Threats emerge rapidly, exposing new vulnerabilities and attack vectors. We ensure that security protocols are regularly updated, unusual activities are monitored, and adaptations are taken to address new threats. 

  • Regular Software Updates and Patches: Cybercriminals often exploit vulnerabilities in outdated software. Ongoing updates and patch management are essential to close security gaps and protect against potential attacks. 
  • Continuous Monitoring: Proactive monitoring of your network for suspicious activities can help detect and mitigate threats before they cause significant damage. An MSP provides 24/7 monitoring to ensure your systems are always protected. 
  • Security Audits and Assessments: Periodic security audits and assessments identify vulnerabilities in your IT infrastructure, allowing for timely remediation. 

Staying a Step Ahead of Hackers

Hackers are always looking for new ways to breach security defenses. Staying a step ahead requires a combination of technology, education, and proactive strategies. 

  • Advanced Threat Detection: Your MSP can implement advanced threat detection tools like intrusion detection systems (IDS) and intrusion prevention systems (IPS) to help identify and block malicious activities in real-time. 
  • Ongoing Employee Training and Awareness: Educating employees about cybersecurity best practices is crucial. Regular training sessions on recognizing phishing attempts, using strong passwords, and safe internet practices will significantly reduce the risk of a security breach. 
  • Incident Response Planning: Having a robust incident response plan ensures that your business can quickly and effectively respond to a security incident, minimizing damage and downtime. 

Spotting Phishing Attempts

Phishing remains one of the most common and effective methods used by cybercriminals. Employees are the most common point of entry to sensitive information, and the ability to identify phishing attempts is crucial to prevent data breaches. 

  • Recognizing Suspicious Emails: Be wary of emails from unknown senders, especially those that contain urgent requests, grammatical errors, or unusual links and attachments. These emails are getting harder and harder to spot, so staying vigilant is key.  
  • Verifying Links and Attachments: Always hover over links to see the actual URL before clicking and examine URLs and email addresses closely, as hackers often purchase domain names that are very similar to those of legitimate businesses, with a single letter changed. Never open attachments from unknown sources as they might contain malware. 
  • Using Multi-Factor Authentication (MFA): Organizations should implement MFA to add an extra layer of security. This makes it harder for attackers to access accounts even if they manage to steal login credentials. 

How Nessit Can Safeguard Your Businesss

Partnering with Nessit provides you with comprehensive cybersecurity solutions tailored to your organization’s specific needs. Our team brings a wealth of knowledge and experience in managing and mitigating cyber threats. We stay up to date on the latest cybersecurity trends and technologies, giving you the peace of mind to focus on your business, knowing that we have all the bases covered. 

  • Comprehensive Security Solutions: We provide a range of services, including firewall management, antivirus protection, data encryption, and secure backup solutions, to create a multi-layered defense strategy. 
  • Proactive Threat Management: With continuous monitoring and threat intelligence, we can identify and neutralize potential threats before they escalate into major incidents. 
  • Customized Security Policies: We help develop and implement customized security policies and procedures that align with your business objectives and regulatory requirements. 
  • Disaster Recovery and Business Continuity: In the event of a cyber-attack, we ensure that your business can recover quickly with effective disaster recovery and business continuity plans. 

Nessit isn’t your average MSP–we’re hands-on partners acting as an extension of your team. We understand that safeguarding your business is an ongoing process requiring constant attention, and we implement and maintain proactive measures to protect your digital assets. Don’t wait for a security breach to happen. By making cybersecurity a priority today, you can protect your business from tomorrow’s threats.