<script type="text/javascript">//<![CDATA[
var element = $("important-element");
// ...

// Anonymous function
(function() {
  var element = $("element-id"), foo = true;
  element.observe("click", function(event) {
    event.stop();
    someFunction(element, foo);
  });
})();

console.log(element); // still the "important-element"
//]]>
</script>