Memorandum

City of Lawrence

City Manager’s Office

DATE:	11/13/2012
TO:	David L. 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 / City Clerk
RE:	Countywide Sales Tax Projection for Recreation Center

Per Commission Amyx’ request, attached is a projection of the city’s share of the countywide sales tax assuming one percent annual growth.  The projection also adjusts the expenditure assumptions accordingly.  For instance, if less revenue is available, the increase in the transfer to the Recreation Fund for operations would be smaller.  For the purposes of this projection, the transfer to the Recreation Fund is limited to 1% annual growth.  The growth in the cost of maintenance of the Community Health Building and the growth in the amount of funding set aside for parks and recreation building maintenance are both held to one percent as well. 

Under this set of assumptions, there would be sufficient resources from the City’s share of the countywide sales tax to fund the annual debt payment for the Recreation Center and retain a positive ending fund balance at the end of the twenty years.