Cell phones hurt 911 Comm. Center
revenues
By Thomas Wilson
STAR STAFF
twilson@starhq.com
As Americans cell out with wireless telephone
providers, the number of traditional land-line telephones
is declining.
And like a cell phone ring blaring the William
Tell Overture during a relative's funeral, the wireless revolution
is causing disdain from members of the Elizabethton-Carter
County Emergency Communications District.
Rising cell phone use compared to land-line fees
charged for 911 telephone service have Carter County ECD officials
seeking new revenue either through restoring reduced local
funding or possibly increasing surcharges to residential and
business customers through their telephone provider.
"We've got to deal with the fact that our land-line
revenues are going to continue to drop," said John Pierce,
chairman of the 911 District's board of directors during the
board's bimonthly meeting on Tuesday. "We lose 40 cents per
line."
Currently, the Carter County ECD receives monthly
surcharges of 65 cents for residential telephone lines and
$2 for each business telephone passed on to county telephone
customers. The growing popularity of cellular phones has resulted
in decreased land-line telephone use and a reduction in residential
line fees.
The board passed the district's $548,000 budget
in August. City and county governments cut five percent from
their annual appropriations to the district for the 2004 fiscal
year. The amount of $85,000 was reduced by roughly $4,700
from each government. The district also reported losing $300
in revenues to lost land-line telephones in January. The ECD
charter requires the city and county to fund dispatchers'
salaries.
"The cost of operation keeps going up and we
can't keep going like this," said board member Roger Deal.
The Washington County 911 Service Board raised
residential surcharge rates from 65 cents to $1.10 and business
rates from $2 to $2.45 in January 2003. Carter County ECD
officials estimated during a February 2003 board meeting that
a similar rate increase could generate approximately $33,000
in new revenue per month.
To initiate a surcharge rate increase, the board
of directors of an emergency communications district must
vote to propose a rate increase request by supplying optional
rates, the desired effective date, the amount of additional
revenue expected, and justification for the rate increase.
The district must send a letter to the county or city mayor
notifying them of the ECD's intent to petition the TECB for
a rate increase. The ECD must also hold a public hearing on
its rate increase request.
County Mayor Dale Fair felt the time for talking
about the district's revenue troubles was over and that action
needs to be taken. He suggested the board make preparations
to keep the ECD financially sound.
"We need to put something on the table," Fair
told board members.
If an ECD falls below its budget for three years,
the district becomes identified as a "financially distressed"
district. If an ECD receives that designation, the state of
Tennessee has the power to assume control of the district
for at least two years.
"We are nowhere near that," Pierce said. "We
want to head off anything we have with that."
Tennessee Emergency Communications Board also
collects surcharges on cellular telephone calls made in each
911 district. The state keeps 75 percent of those charges
and returns 25 percent, or one quarter on each dollar, to
the districts. The Carter County ECD collects roughly $11,000
every two months, according to its most recent budget estimate.
Pierce said the Tennessee Emergency Numbers Administration
had recommended the district raise its surcharge rates to
create a cushion for potential financial trouble.
The board voted to send Pierce to the Budget
Committee of the Carter County Commission on Monday night
to request their funding be restored for the current fiscal
year. The board also voted to establish a committee among
its members to study how much revenue would be created if
the board decided to request an increase in surcharges - a
scenario Pierce said was not likely to happen given the failure
of the county-wide sales tax referendum last week.
"We do not want to do that," he said. "It would
not be an advantage for us to go to the people and ask for
money."