The Borough of State College considers citywide, university-covering Wi-Fi network: Penn State forms the largest part of the city, and neither town nor gown has a ubiquitous wireless network. They haven't built a plan yet so costs haven't been estimated; the university will pick up some undetermined part of the tab if it's built. Municipal uses could include parking meters. I hear about parking meters so often, it's clear that there is a vast, vast cost associated with operating them.
The funny thing is that there is a private company already working on the exact same thing and it will be complete before the city even sends out an RFP. See story here:
http://www.getwireless.net/news.php