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 Identifying outdated systems, underused software, and security vulnerabilities will help guide future IT investments. 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  • Upgrading outdated infrastructure: Aging systems and unsupported hardware can hinder productivity, as well as pose security risks 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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Building a Cybersecurity Roadmap: A Maturity-Based Approach 

Cybersecurity isn’t just a box to check off–it’s an ongoing process. Threats emerge quickly and if your company isn’t keeping pace, you’re leaving the door wide open for cyberattacks–which is why every business should have a cybersecurity roadmap. Instead of reacting to threats as they pop up, a well-structured roadmap will help you build resilience, strengthen your defenses, and stay a step ahead of cybercriminals.  

At Nessit, we believe in a maturity-based approach that meets your business where it is today and sets you on the path to a more secure future. Understanding the stages of cybersecurity maturity is the first step in building a roadmap that fits your business. Where does your organization fall on the spectrum below? 

  • Reactive (Ad Hoc): Security is patchy at best. There isn’t a clear plan, and threats are handled as they arise–often with a “firefighting” approach. 
  • Proactive (Defined Policies & Tools): Some security measures are in place, like antivirus software and basic policies, but there are still gaps. 
  • Managed (Continuous Monitoring & Compliance): Security is a strategic priority. Structured processes, compliance frameworks, and 24/7 monitoring help detect and mitigate threats. 
  • Optimized (Advanced Threat Prevention & Response): Well done–you’ve achieved cybersecurity maturity! This means you’ve implemented security best practices, including employee training and access controls. Your organization conducts regular risk assessments; and has patching systems, automated threat detection, and secure backups, with a clearly defined incident response and recovery plan. You have comprehensive policies and procedures in place, clarifying employee roles and expectations. Cyber maturity also means continuously monitoring and making modifications to correct vulnerabilities.  

It’s ok if your business is not there yet. The goal is to move from reactive to optimized one step at a time–and this is where that roadmap comes in. Before you can improve security, you need to know where you stand. To assess your cybersecurity maturity, you’ll need to take the following steps: 

  1. Conduct a Risk Assessment: Identify vulnerabilities in your infrastructure, applications, and processes.  
  1. Audit Existing Security Policies & Tools: Determine if your security measures are up to date and you have an incident response plan in place. 
  1. Benchmark Against Industry Standards: Compliance regulations aren’t just red tape. They’re critical guidelines for protecting your data. 

Key Cybersecurity Pillars

A solid roadmap isn’t just about plugging holes. It’s about reinforcing every layer of your IT environment. 

Identity and Access Management: Your security is only as strong as your weakest password. The fact is that the biggest threat to your company’s security comes from inside your organization. Employee training in password management is absolutely essential in protecting sensitive data. Implement Multi-Factor Authentication, enforce least privilege access, and adopt a zero-trust approach to ensure only authorized users get in. 

Data Protection & Encryption: Sensitive data, whether it’s customer records or financial information, must be protected both at rest and in transit. Strong encryption protocols are a must. 

Endpoint Security: Workstations, mobile devices, IoT devices–every endpoint is a potential entry point for cyber threats. Ensuring robust device protection across all endpoints is non-negotiable. 

Network Security: A strong perimeter defense is still crucial to cybersecurity. Implement firewalls, VPNs, and network segmentation to keep would-be intruders at bay. Micro-segmentation can limit an attacker’s ability to move laterally through your network. 

Threat Detection & Response: It’s not a matter of if an attack happens–it’s when. Deploy Security Information & Event Management (SIEM) and Managed Detection & Response (MDR) solutions to detect and respond to threats in real time. 

For most organizations, security maturity doesn’t happen overnight. A phased approach ensures improvements are manageable and cost-effective. Here’s what your roadmap might look like: 

Short-Term (0-6 months)

  • Patch vulnerabilities and update or replace outdated software. 
  • Enforce MFA and strong password policies. 
  • Train employees on phishing and social engineering tactics. 

Mid-Term (6-18 months)

  • Implement zero-trust architecture to verify every access request. 
  • Automate threat detection and response to reduce manual intervention. 
  • Strengthen monitoring tools to identify suspicious activity early. 

Long-Term (18+ months)

  • Implement security measures for predictive threat detection. 
  • Conduct regular compliance and security vulnerability audits. 
  • Create a comprehensive incident response and recovery plan, with clearly defined protocols and roles. 

A cybersecurity roadmap isn’t static–it will evolve as threats change. Regular evaluation and modification are what will help you maintain maturity. This means conducting security audits and penetration testing to uncover weaknesses before hackers do. You should also establish Key Performance Indicators (KPIs), including measuring the time it takes to detect and respond to threats, audit success rates, and system uptime. A secure business is adaptive. Cyber threats change constantly and so should your security policies and tools. 

Stay Ahead, Stay Secure

Cybersecurity isn’t about reaching a finishing line. It’s an ongoing process of improvement. Whether you’re starting from scratch or fine-tuning your security strategy, having a clear road map ensures you’re proactive, not reactive. A data breach can have catastrophic consequences for any organization, including downtime, financial loss, reputational damage. We’ve seen businesses neglect their cybersecurity until it’s too late, when they face a data breach that’s costly and difficult to recover from.  

At Nessit, we have years of experience helping companies navigate the journey to cybersecurity maturity. As your Managed IT Service Provider, we’ll work with you to assess your IT infrastructure, create a roadmap tailored to your business, and implement security measures according to your timeline and budget. We act as your trusted partner to make sure you’re always ahead of cyber threats–with a solid roadmap for long-term security.  

Reach out to learn more about how we can help your business reach cybersecurity maturity. 

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.