Government is funded by taxes from the people who live in the municipality. Even if they offer it for "free", everyone in the area gets the benefit of it. This is like roads. Most communities pay for roads out of taxes or bonds levied on the community. None of that is a handout, on top of that, most places will still require you to pay for internet.
> Municipal broadband expands the role of government. It's an extra program for the municipality to manage.
This isn't necessarily bad, and requires voters be more involved in local politics to ensure that infrastructure in general is being kept up.
> Expanding government programs is a tax on residents, even if they don't benefit from broadband access.
This repeats the first point, but, yes it's a tax, but to say that not everyone benefits? This past year showed how important it was for every student to have broadband access to attend remote learning. Seems hard to argue at this point that not everyone would benefit.
> Municipal broadband is hostile to business. Companies cannot reasonably compete with a service that the government pumps money into.
To ISPs possibly, but not all businesses. Counter point, municipal broadband will benefit many businesses by ensuring that they have high-quality fast internet, that allows them to keep in better touch with their customers. This is pro-business, not anti.