Urbanization and population growth are creating significant challenges for cities, including increased demand for resources, traffic congestion, pollution, and waste managementThis paper provides a comprehensive review of research focused on optimizing urban intelligence using IoT and edge computing. We analyze how sensors, connectivity, data analytics, and intelligence at the edge can provide real-time monitoring and efficient management of transportation systems, energy grids, water distribution, waste collection, air quality, and public safety. Challenges around security, privacy, integration complexity, skill gaps, and adoption barriers are examined. A quantitative model is presented analyzing the economic impact and sustainability gains from smart city projects employing IoT and edge computing. Additionally, best practices are proposed for designing robust urban IoT infrastructure supported by edge intelligence. Our findings indicate that an urban IoT networked with edge computing can enhance quality of life for citizens.