What is a 'Smart City'?
A Smart City Strategically leverags technology to increase overall effectiveness and efficiency. The goal is to acheive:
1) Smart economy
2) Smart mobility
3) Smart environment
4) Smart people
5) Smart living
6) Smart governance.

IBM Smart Cities Challenge is giving away $50 million grants to 100 cities: http://smartercitieschallenge.org/

More info on Smart Cities:
http://cityforward.org/
http://en.wikipedia.org/wiki/Intelligent_city
http://www.smartplanet.com/blog/business-brains/anatomy-of-a-smart-city/11895
http://smartercities.nrdc.org/