One aspect of a "smart city" is a system to constantly monitor a lot of data streams about its residents and use that data to allocate the city's resources more efficiently in real time or better plan future upgrades to city infrastructure.
This obviously raises a lot of surveillance concerns. Some of it could be done in a manner that respected people's privacy, with, for instance, extensive algorithmic anonymization of data and strict limits on what data is permanently recorded, but that requires a lot of trust and oversight and, I think, the benefits are likely not worth the risk of having that data collection system in place.
Another aspect of a smart city is enhanced local participation through e-governance, making it easier for people to know about, suggest, and weigh in on policies impacting their homes and communities. This aspect could be implemented without any kind of surveillance apparatus and has some appealing qualities imho.
So, you know, it depends on what benefit you're talking about.
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