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Information and Communication Technology (ICT) provides the necessary tools for the future smart cities in every domain they cope with (eg, energy, transportations, infrastructures, etc.). The ICT innovations in efficient resource management, will lead the effort for smarter cities, where people live, work and prosper by optimizing infrastructures, services and environment increasing city’s vitality. This paper present issues and challenges faced by the municipality councils such as social, economic and environmental, in the way of transforming their municipalities into smart providing better services to their citizens. Furthermore, the details discussed in this paper will help future researchers and related stakeholders to estimate the positive impact of Predictive Analytics in solving daily problems in a city, providing better urban management.