The growing need to develop information technology infrastructure to achieve a smart city has made sustainable financing for IT projects in public institutions, such as municipalities, a key challenge. This study aims to design a model for selecting the most appropriate financing methods for IT projects in Tehran Municipality. To conduct the study, first, key indicators influencing the choice of financing methods were extracted through a literature review and expert interviews. Then, the weights of the indicators were determined using the Best–Worst Method (BWM). Next, using Bernardo’s decision-making model and considering financial, institutional, legal, and technological constraints, seven main financing options were identified. These options included privatization, internal resources, public resources, partnership, traditional debt, service-based financing, and outcome-based financing.
To examine the sustainability and compatibility of the model with real-world conditions, a Monte Carlo simulation was performed using real data. The results of 1,000 simulation runs revealed that internal resources, public resources, and partnership methods achieved the highest selection rates, consistent with the current practices of Tehran Municipality.
The innovation of this study lies in combining the Best–Worst Method, the Bernardo model, and Monte Carlo simulation, focusing on the IT domain, and the use of novel indicators such as blockchain.