Memorandum

City of Lawrence

City Manager’s Office

DATE:	December 23, 2010
TO:	Dave Corliss, City Manager
FROM:	Casey Toomay, Budget Manager
CC:	Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager Ed Mullins, Finance Director
RE:	Agenda Item - Use of Guest Tax Fund Monies

Please place the following item on the City Commission agenda for consideration at their December 28, 2010 meeting:

Approve $75,925 in expenditures to be reclassified from the general fund to the guest tax and guest tax reserve funds for operating department costs.

Background

As you are aware, over the course of the year, a number of special events bring additional visitors to the City of Lawrence.  In 2010, these events have included the Kansas Marathon, the Tour of Lawrence, the St. Patrick’s Day Parade, the Christmas Parade, the Airport Open House, and a number of 5k and other races and events.  These events all resulted in additional City expenditures for personnel, overtime and maintenance in the police, fire medical, public works and parks and recreation departments.            

The transient guest tax of six percent is levied upon gross receipts derived from or paid by transient guests for sleeping accommodations in hotels and motels within the City.  Staff believes it is appropriate to use these funds to provide for public safety, health and welfare during special events that bring tourism dollars to Lawrence. 

Based on staffing and cost estimates related to services outlined above, it is recommended that $75,925 in expenditures be reclassified from the general fund to the guest tax and guest tax reserve funds for operating department costs as outlined below:

Police	$48,764
Fire/Medical	13,370
Public Works	12,671
Parks and Recreation	1,120
Total	$75,925

Action Requested

Staff recommends the City Commission approve reclassifying $75,925 in expenditures from the general fund to the guest tax and guest tax reserve funds for operating department costs.