Hearing will probe rising cable prices
By Scott Nicholson

The Watauga County Board of Commissioners have no control over cable television rate increases, but they do have the authority to call Charter Communications officials on the carpet because of them.

The commissioners scheduled a public hearing for Nov. 15 to discuss rate increases, which become effective with Charter’s October/November billing cycle.

Under the county’s franchise agreement with the cable company, the county has the option of requiring a public hearing about the increases.

Traditionally, the hearing has given the public an opportunity to question Charter officials about the increases and various packages, though no one spoke about the last such increase.

In a letter to the county from Skip James, Charter’s director of government relations, Big Package and Equivalent Packages will be $56.99 per month, Bigger Package and Equivalent Packages will be $69.99 per month, and Biggest Value and Equivalent Packages will be $72.99 per month.

Digital specialty programming tiers will be $5 per month, and premium services such as HBO/Max and Starz/Encore will be $13.95.

The basic limited package will apparently remain the same at $13.95 per month, as James failed to mention it in his correspondence.

James’ letter cites changes to programming lineups “that will make it easier for our customers to find their favorite networks and shows.” James added, “Keeping our customers entertained and well informed is our top priority.”

Charter last raised rates in February.

James characterized that $1.24 increase for basic service per month, and a $1 increase for higher-tier packages, as “a very small increase.”

In June 2004, Charter Communications instituted a $2.95 rate increase, which company officials said was necessary to cover rising operating costs. The new rate increase only applies to Charter’s expanded service and does not affect the basic rate of $13.95. In October 2003, the rate for basic service increased by $0.25 to $13.95 and the charge for the expanded tier went up by $1.75 to $30.85. The full expanded basic rate at that time was $44.80. Charter officials also cited rising expansion and business costs as the reason for that increase.

Watauga’s cable franchise officer Jim Harmon recommended the county raise its franchise fee to five percent, the maximum allowed by law. Harmon said beginning Jan. 1, a state franchise tax of seven percent takes effect. Any money not collected locally will go to the state, so Harmon said raising the local tax would increase county revenues while not affecting consumers’ bills.

County manager Rocky Nelson said the three-percent tax generates $140,000 a year, while a five-percent tax, if enacted, would generate $233,000. Under the new seven-percent tax, county cable users would send a total of $93,000 to the state government. Locally collected franchise fees are used in the county’s general fund.

The county is required to give Charter Communications a 60-day notice of franchise fee changes. The seven-percent tax takes effect Jan. 1. The commissioners voted Tuesday to have the new five-percent portion of that tax to take effect on the same date.

Environmental Summit

The commissioners also received a report from Dennis Grady on the recent Environmental Summit held in Boone. Grady urged the commissioners to consider an ordinance on steep slope development, proposing one based on an ordinance recently passed in Buncombe County. Grady said while there are some guidelines for slope development in the county subdivision regulations, there are no restrictions and said it wasn’t an aesthetic issue, but a health and safety issue because of fault lines in the mountains.

Other matters

The commissioners approved a change for Bobby Harmon’s property in the Foscoe/Grandfather Community to “Highway District” so Harmon could rent a mobile home. The board also voted to change the sign ordinance in the Valle Crucis Historic District that increased flexibility in sign location for businesses, as well as tying sign size to its distance from the road.

The commissioners also voted to accept the 2006 Schedule of Values to be used in next year’s property revaluation. The manual will remain available for public inspection in the Tax Administrator’s office of the county courthouse.

The commissioners approved a bid of $150,000 to replace the roof at the Watauga Public Library. The metal roof will have a snow retention system for safety, with a 20-year warranty on the roofing surface and a five-year construction warranty.

The commissioners approved awarding a bid of $17,550 to Corning Cable Systems to provide a fiber optic network for the new law enforcement center. The center is expected to be operating in December.

The commissioners approved two change orders for flood reconstruction projects. About $16,000 will be used for additional rock at the J.H. McLean Road repair, $48,000 for a site in the Ponds Development, and $1,600 to repair damage to a pond. The money is reimbursable to the county through Emergency Watershed Protection funds.

The commissioners adopted a resolution seeking a veteran’s outpatient clinic for the county. The resolution says Watauga has 5,000 veterans, a major medical center, and 4,000 veterans in surrounding counties. The closest clinics are in Hickory and Mountain City, Tenn. The resolution will be forwarded to Congressional representatives.

During the public comment period of Tuesday’s meeting, Karen Carter questioned past neglect of the high school facility and asked why architects weren’t given prices before presenting building options. She asked for a bond referendum for the high school construction and called the escalating price estimates “a monumental disgrace.”

* Scott Nicholson may be contacted

at nicholson@wataugademocrat.com.