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For most Warren County consumers, the best way to get their favorite TV shows boils down to two options — Time Warner Cable or satellite.

But Lebanon offers its residents a third choice.

Residents can purchase cable TV from the city-run telecommunications department — one of only three in the state.

Since launching their cable service in 1999, Lebanon officials have predicted the added competition would bring lower prices to consumers, and a quick comparison of Time Warner’s rates shows that has come true.

Time Warner’s rates are lower in Lebanon than other area cities.

“It’s absolutely unique in the area,” Time Warner spokesman Rob Howard said. “We did have to evaluate and look at the competition provided by them.”

Lebanon’s prices, however, are not lower than Time Warner’s in the city and taxpayers continue to subsidize the municipal telecom utility because what the residents pay for cable TV, telephone and Internet services does not cover Lebanon’s costs.

The city has about 3,500 cable subscribers.

Basic service fees charged by Lebanon are $9.99 a month for 23 channels. Time Warner’s comparable basic service costs $6.28 for 25 channels.

Consumers also face a confusing array of options from the city and Time Warner.

With both Lebanon and Time Warner offering periodic promotions and cheaper prices for customers who buy more than one product, getting an accurate comparison of cable TV prices is difficult.

Adding to the confusion, Adelphia also still maintains a small presence in the city, but its service is limited to only a two apartment complexes and houses along two roads. The channel lineups also vary between companies, especially at the more expensive levels.

While Lebanon’s and Time Warner’s basic cable packages include similar bare-bones lineups — PBS, C-Span and local network channels like Cincinnati’s WXIX Fox affiliate — Lebanon also includes the Lebanon Channel, which provides local sports coverage and programming.

At the more expensive digital level, Time Warner customers would have to add a sports tier, movie tier and variety tier at monthly cost of $14.65 to get a channel lineup similar to Lebanon’s digital tier, which includes more channels. But Time Warner digital subscribers do get about 30 on-demand channels.

Lebanon’s telecom director said his department plans to add on-demand channels later this year. Viewers can watch individual movies and programs when they choose on these channels.

While Lebanon’s consumers benefit regardless of whether they buy telecom services from the city or another provider, the city’s telecom operation also comes at a cost to taxpayers.

Last year, the utility required a $475,000 loan from the city electric department and failed to make a budgeted $96,400 payment to the city of Lebanon general fund for billing and other services.

That money could have been used for other city services such as hiring more police officers or fixing roads, Lebanon officials said.

Telecom director Darrick Zucco is taking steps to help the utility pay all of its bills, beginning this year.

Lebanon plans to phase out technology that lets it turn service on and off without having to go to the consumer’s home — saving more than $150,000 in maintenance costs, Zucco said.

Zucco has also renegotiated contracts with service providers to lower costs.

Even with the cost cutting, city officials say rate hikes are necessary to help the department pay its own way.

On Tuesday, the city council will vote on whether to raise rates on telecom services, which include cable TV, telephone and Internet access.

Zucco said the rates will rise 2-3 percent for most of the city’s customers.

Zucco said Lebanon’s customers may pay more than Time Warner customers, but they get local programming and service.

“Usually we’re out there the same day for repair,” Zucco said.

Howard said his company also prides itself on their service.

“We make sure we’ve got the right number of people for the customers we have,” Howard said.

Contact Daniel Wells at (513) 696-4527 or dwells@coxohio.com