The city started its fiscal year July 1, and the city budget includes money for unanticipated events such as celebrity funerals, according to LAPD Assistant Chief Jim McDonnell.
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The cash-strapped city has created a website for fans who wish to donate money to help with the expense. Those who would like to donate can visit: http://mayor.lacity.org/PressRoom/PressReleases/LACITYP_005598
On the eve of the memorial, Jackson's friends and family gathered at Forest Lawn, reportedly for a viewing of the pop star's body.
A small handful of cars was seen coming and going from the Hall of Liberty, a circular building at the cemetery that contains a 1,200 seat auditorium.
Among the people believed to be in attendance was LaToya Jackson.
A hearse was also seen backing up to a building at the Hall of Liberty complex. A few hours later, the casket was reloaded into the hearse and delivered to another nearby building, this time covered in a blue cloth.
Actress and longtime Michael Jackson friend Elizabeth Taylor said on Twitter that she would NOT attend the memorial ceremony.
Taylor said she was asked to speak, but she could not "be part of the public whoopla," and could not guarantee that she "would be coherent to say a word."
Meantime, thousands of fans who won a raffle to attend the memorial service picked up their tickets and wristbands at Dodger Stadium Monday.
Tickets were issued to only the person whose name was on the voucher, which was also scanned for authenticity.
An estimated 1.6 million people registered for the online lottery to attend the service.
A total of 17,500 tickets were given out.
11,000 tickets were for the Staples Center, and 6,500 were for the nearby Nokia Theatre, where fans will watch the service on big screens, according to AEG President Tim Leiweke.
The odds of getting a ticket were about 1 in 183.
To avoid potential reselling of tickets, a single distribution center was used.
Sellers on eBay quickly offered tickets with starting bids of $200 to $500. One auction had several bids and was up to $15,000 Monday.
A coalition of youth and civil rights groups in Los Angeles urged the ticket winners to donate to charities and social causes that Michael Jackson supported during his life.
Only people with a valid ticket and an unaltered wristband were allowed into the service.
The streets around Staples Center were closed to prevent people without tickets from trying to attend.
The ceremony was not shown on Staples Center's giant outdoor TV screen.
A public memorial at Staples Center was fitting, especially since the King of Pop finished his last rehearsal at the arena the night before his June 25 death.
Jermaine Jackson expressed concern that the Staples Center wouldn't be big enough for his little brother's public memorial.
"There's no place even big enough. We talked about the Washington Monument, we talked about the Coliseum. We talked about a lot of places," Jermaine said, "There are 20s of thousands just from the UK."
Jackson's family arranged for a worldwide pool feed of the service for fans to watch on every major network.
Anderson Cooper, Larry King and Don Lemon were the anchors for the CNN coverage. ABC sent anchor Charles Gibson to Los Angeles for the story, and CBS sent anchor Katie Couric.
Original speculation about a memorial and funeral service had focused on Jackson's former home at Neverland Ranch in Santa Barbara County. Jermaine Jackson said he would like to see Neverland Ranch as his brother's final resting place.
Jackson specified no plans for a funeral or wishes for his remains in his 2002 last will.
Jermaine Jackson also said the family intends to have a series of memorials around the country, though no further details have been released.