I just heard about this. Maybe as per usual, I'm the last one to know 
about such things.
But I thought I'd share in case I'm not...

A few interesting quotes from the article:

"Portland plans to develop a strategy for nurturing the regional 
software community early next year, and is doing business with a pair of 
local startups in an effort to promote the city's software community,"

"The city, in conjunction with other local agencies and governments, 
plans to launch an app contest next month to spur developers to create 
mobile apps with useful, local information. It's modeled by Apps for 
Democracy in Washington, D.C. City CTO Mark Greinke said the city has 
set aside about $25,000 for the contest and plans to award no more than 
$1,000 per app. The goal, he said, is to use the money to spur interest 
among developers -- not to finance entire apps."

http://blog.oregonlive.com/siliconforest/2009/12/portland_mayor_makes_his_pitch.html
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