Optimal decision making mechanisms in the smart city development management

Sustainable development of cities and communities is supposed to be based on the innovative technologies, primarily infocommunications. These technologies should be used in the most efficient way, and the population requires proper “smart” competencies and tools to fully participate in the decision making. The article offers the appropriate methodology and the corresponding mathematical apparatus based on the methods of system analysis, mathematical and computer modeling, multi-criteria optimization for making complex decisions. Organizational and methodological procedure for modeling, optimization and coordination of decisions, the mathematical model for the reconciling stakeholders’ interests in making decisions on the urban development, and main design solutions for the city portal implementation that ensures the direct participation of the population in the coordinated decision-making were introduced in this paper. The whole approach is based on the advantages of the universal coefficient method, which allows different stakeholders, regardless of their level of education and training, to express their own preferences in their natural form and immediately see what consequences their decisions lead to. The developed mathematical model is of an optimizing nature and on the basis of the specific measures introduced into it, forms an agreed development plan for the smart city.