said by zipjay:
all that aside, what happens if they just do it anyway and make the service?
It says they can't use taxes or issue debt (bonds). It would face legal challenges if they tried to tax it from citizens as there will always be someone who doesn't want it. And no one would buy bonds that are legally questionable as there would be doubt as to if/when they would be paid back.
The only way that I could see that it could be done is if a city or town collected funds in advance, which isn't going to happen.