I do hope they realize that if they want to do everything themselves, they'll still need transport links to the nearest major IX point, and IP transit upstreams. I don't know of many small towns, sub 5000 population, that have successfully become their own "real" ISP (ARIN AS, their own IP space, presence at an ix with a bgp speaking router, all of the typical ISP back-end operational support software). In addition to all of the costs of being a wholly facilities based ISP at layer 1 in the OSI model.
Another way to do it is for the town to simply build dark fiber, and rent it to interested ISPs. Or to build a layer 2 gpon transport network and do nothing at L3, and no individual customer service, and let different ISPs compete for business with the town running the gpon OLTs only.