Memorandum

City of Lawrence

City Manager’s Office

TO:	Dave Corliss, City Manager
FROM:	Cynthia Boecker, Assistant City Manager
CC:	Diane Stoddard, Assistant City Manager Ed Mullins, Finance Director Casey Toomay, Budget Manager
DATE:	December 4, 2008
RE:	Use of Guest Tax Fund Monies

As you are aware, over the course of this year a number of special events have brought additional visitors to the City of Lawrence.  These events include those relating to the KU National Championship in April, the Wilco Concert, Get Downtown, and the Ironman which all resulted in additional City expenditures for personnel, overtime and maintenance in the police, fire, public works and parks and recreation departments.   Additionally, on-going public events and celebrations, including events like the Band Day and Old Fashioned Christmas Parades all have an affect on operational departments and overtime budgets.  For example, the information below shows the City departmental costs associated with the NCAA tournament celebrations this spring.

                   Police                      $ 29,052

                   Fire/Medical                 14,281

                   Public Works                  3,928

                   Parks and Recreation      6,400

                   Total                      $ 53,661                

The transient guest tax of five percent is levied upon gross receipts derived from or paid by transient guests for sleeping accommodations in hotels and motels within the City.  A review of use of guest tax funds by other cities indicates use for support of economic development and tourism.  For example, Shawnee includes tourism funds to support their Old Shawnee Days celebration and Topeka transfers guest tax monies to support parks and recreation, historic preservation and general fund activities.  Staff believes such support also includes costs relating to providing for public safety, health and welfare.  

Based on staffing and cost estimates related to services outlined above, it is recommended that $70,000 in expenditures be reclassified from the general fund to the guest tax fund for operating department costs as outlined below:

                   Police                      $ 33,000

                   Fire/Medical                 24,000

                   Public Works                  5,000

                   Parks and Recreation      8,000

                                                $ 70,000