By Michael Andrews
Mountain Life Editor
East Ellijay will recoup 1 percent more in future Local Option Sales Tax (LOST) revenue following recent negotiations that also involved Ellijay and Gilmer County governments.
The way LOST revenue is split among the county and cities is typically renegotiated every 10 years in conjunction with the U.S. Census. The 1-percent sales tax is collected on the purchase, sale, rental, storage, use or consumption of tangible goods and related services.
Councilmembers Don Callihan, Linda Smith and Ed Forrester approved and accepted the renegotiated 10 percent share for East Ellijay when meeting Tuesday, April 26.
Previously, East Ellijay received 9 percent of the LOST revenue, while Ellijay received 16 percent and the county 75 percent. As part of the recent renegotiation, Ellijay also gained an additional 1 percent, bringing its total LOST share to 17 percent.
During the council meeting, Mayor Mack West read a letter from the Board of Commissioners stating that the county has agreed to accept renegotiation offers from both cities.
West also asked if any councilmembers wanted to seek a share of more than 10 percent.
“Personally, I would like to get more. Look how much inflation has gone up,” he said, adding that the price of supplies like asphalt have gone up quite a bit recently.
“That’s probably what they’re going to say to us if we go back and ask for more, too — the cost has gone way up,” said Callihan.
The most recent LOST revenue split in 2021 totaled $5,296,667 for Gilmer County,
$1,129,981 for Ellijay and $635,620 for East Ellijay.
West noted the renegotiated share should mean around $80,000 more a year for East Ellijay.
In other news ...
East Ellijay expects to receive another round of American Rescue Plan Act (ARPA) grant funding, West said. The still-to-come ARPA funding amounts to $102,000.
“We’ve got a much wider view of how the ARPA grant money can be spent,” West told the council. “We can (use it) for a lot of different things — new construction, paving, things like that.”
Almost $40,000 of the first ARPA grant received by East Ellijay went to Gilmer Public Safety for the purchase of new ambulance equipment including ventilators. The remaining $804 from the first grant was used by East Ellijay to purchase eight first responder medical kits, West noted.
“Seven of the kits will be placed in our patrol vehicles with the eighth one being placed in the clerks office at City Hall,” he added.
East Ellijay might be in the market for an asphalt spreader and a bucket truck, which would be used for roadwork and tree maintenance.
West said Blue Ridge recently purchased an asphalt machine to patch cracks in potholes on paved streets for $15,000 and a bucket truck for $45,000.
“We could certainly use one (asphalt machine), and we could certainly use a bucket truck. We need to consider the annual usage versus the initial cost and maintenance before we begin working on our budget next month,” he added.
City Planner Mack Wood gave an update on new business construction and business activity.
“The doctor’s office on Highland Ridge is almost complete. Popeyes, Pueblo Cantina and the bakery near Lowe’s (are) almost complete. Buffalo Luke’s has got their basics in for their land disturbing, and they’re waiting for their steel to come in. Starbucks will be starting their remodel. A land disturbing permit has been approved for the (new) hotel. Tractor Supply is remodeling. On Maddox (Drive), we’re getting a new event center in Dr. Schwartzman’s old office. It’s 200 capacity,” he said.
Wood said an expansion of the East Ellijay Walmart is expected to start as soon as August.
“We’ve got the plans. They’re going to do a 3.5 million improvement,” he said.