Actually, I did some reading, and tax money isn’t being used to fund this, it’s funded by customers, just like a private company.
Also, this is something that the town wanted since the cable companies refused to when the town wanted to work something out to get better value.
I don't know about you but unless there is absolutely no option, I'll keep supporting the private companies over government run monopolies.
If a group of citizens want to get together and fund and ISP alternative, I'm all for it. Just keep the government out.
I have seen how some cities (one just a few miles from Wilson, NC) managed to stay within the letter of the law while funding cemetary maintenace with money from their electric sales, but had to increase electric rates because 'the cost of electricity has increased and we just cannot afford eat the increase'. In other words, instead of raising taxes they raise electric rates and blame it on the electric producers and the public utility commission.