Amazon just had a big contest on subsidies and the only exceptional thing about it was how brazen they were about it. Regulatory exceptions often are part of such deals.
> taxes (paid whether you use the service or not)
Monopolists call that "bundling". For example co-financing internet service by requiring you also pay for phone service.
The main difference is that a public service doesn't need to have profit maximizing as its primary goal.
No. Bundling means the product I want becomes more expensive, and therefore less competitive. Taxes means I have to pay for the product in any case, removing any competitive pressure.
The main difference is that a public service doesn't need to have profit maximizing as its primary goal.
Neither does a company, that's a myth. Plus, non-profits and coops exist.
Alternatively, I would argue that a municipal system is, in fact, fair competition. If a municipality decides that they, collectively, want to create and pay for a service due to lack of quality competition, then it is their right to do so. This has so far proven extremely effective, as even private services have improved in quality and price when it happens.
This is a win/win for the consumer. For me, they are the more important part of the equation.