I think you are mixing two forms of government and their incentives.

The above poster was talking about local government which has an incentive to establish local network effects and raise property values.

Flint was caused by the state of Michigan taking over their water management and ignoring warnings of what would happen.

It feels like states are much more beholden to telecommunications lobbies than the local areas. TN, despite Chattanooga being the poster child for municipal broadband, banned other cities from building their own networks. CO forces both the local government and the citizens later in an election to authorize local networks. WA just repealed their ban on municipal broadband networks.

I do not feel that a remote possibility of no-bid contracts is a reasonable concern over the current corrupt and no accountability of these large ISPs who lobby state governments to ban local networks. It is a lot easier to change local government than many state governments if a project goes wrong.