@terryenglish Anything the government touchs turns to shit. There are also privacy issues with this, off the top of my head: "lets track them to make sure they aren't pedofiles!" (also, letting the government have access to your internet logs... that is... scary)
Since they would city sponsored that means they can never go bankrupt unless the city does which means new ISPs (tiny because they are new) can't do much against them, and the city itself could make itself the 'only ISP' allowed through 'clever laws' (much like Comcast and other monopoly ISPs). I only see horror down the line with this.