Honolulu became the first known city to accept advertising on its website. Here's what other cities are saying...
In June, 2000, the city of Honolulu "...tacked a banner ad for the Bank of Hawaii onto the Honolulu Web site, becoming one of the first jurisdictions to accept advertising on a government Web site. Some public officials take a dim view of this emerging practice, but e-gov companies, of course, think it's the best thing since, well, e-gov companies." Reaching consensus on whether accepting advertising is "selling out" is extremely difficult.
Thanks to Chris Steins
FULL STORY: This Space for Rent

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