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Document Code No.: BUD 10-1 (AEP)
Department/Issuing Agency: Office of Financial Management
Effective Date: September 24, 1993
Approved: /s/ Tim Hill
Type of Action: New

Signed document (PDF, 2.6 MB)


1.0 SUBJECT TITLE: Calculation of 1% for Art Budget on Capital Projects

2.0 PURPOSE:

2.1 To establish a standard method, in accordance with K.C.C. 4.40, for calculation of the amount to be budgeted in Capital Projects for element 006 Art, and to establish procedures for transfer of funds to art projects.

3.0 ORGANIZATIONS AFFECTED:

All Executive departments, offices and agencies with Capital Improvement Projects subject to the requirements of K.C.C. 4.40 to construct or remodel buildings, parks or commemorative structures.

4.0 REFERENCES:

4.1 King County Code, Chapter 4.40;

4.2 Ordinance 10489, Section 1.

5.0 DEFINITIONS:

5.1 "Construction" means the creation of a new building or structure or significant expansion of an existing structure, rather than repair, alteration, renovation, or improvement of something already existing.

5.2 "Ordinary maintenance" means the routine work necessary to keep County facilities in that condition of good upkeep and repair necessary for safe and efficient continued use. Asbestos abatement may be included where appropriate.

5.3 "Demolition" means work required to remove all or parts of buildings, parks or commemorative structures to achieve the project goals. Asbestos abatement may be included where appropriate. For the purpose of calculating the 1% for Art budget amount per Section 6.7, demolition costs shall be excluded when (1) the cost is explicitly calculated within the total budget for element 003, or (2) the cost is estimated to exceed 10% of the total budget for element 003.

5.4 "Equipment and Furnishings" may include communications equipment, computer networks and similar apparatus.

5.5 "Remodeling" means alteration, renovation or improvement to alter or improve something already existing and the alterations or improvements do not constitute construction or ordinary maintenance as defmed above.

6.0 POLICIES:

6.1 All County funded capital construction projects shall include a budgeted line item for art, except for those projects and items excluded in K.C.C. 4.40.040 and K.C.C. 4.40.080, and identified here in Sections 6.3, 6.7 and 6.8. Where separate administration or planning projects are established for large CIP projects, each such project shall include a budgeted line item for art.

6.2 The following capital construction projects are excluded from the 1% for Arts program: roads, bridges, sewers, surface water, solid waste landfills, and ordinary maintenance.

6.3 Where a capital construction project has a scope of work that includes eligible and ineligible items, for example, remodeling and ordinary maintenance, the 1% for art budget amount shall be calculated on the eligible portion of the project.

6.4 A supplemental appropriation to provide funds for an actual or anticipated overrun to a capital construction project shall not include the 1% budget.

6.5 A supplemental appropriation that involves a change of scope to the capital construction project shall include an incremental amount for the revised 1% for Art budget calculation.

6.6 County funded project elements that shall be included in the 1% for Art budget calculation are as follows: 001 Consultant Design, 003 Construction (except as noted in Section 6.7 below), 005 Contingency, 007 County Force Design, and 009 County Force Administration.

6.7 The following categories of expense are excluded from the 1% for Art budget calculation in element 003 only: demolition, and asbestos abatement costs.

6.8 County funded project elements that shall be excluded from the 1% for Art budget calculation are as follows: 002 Acquisition; 004 Equipment and Furnishings; and 008 County Force Acquisition.

6.9 The budget for element 006 Art shall be 1% of the eligible base costs, which shall include elements 001, 003 (less demolition and asbestos costs), 005, 007, and 009.

6.10 Any changes to an established art budget amount shall be agreed to in writing between the Budget Division, the Facilities Management Division or the agency responsible for the capital project, and the Cultural Resources Division Public Art Program.

6.11 The source of funds shall not affect the 1% for Art calculation for a county construction project unless the conditions under which the revenue is made available prevent its use for artistic purposes. If this is the case, then these amounts shall be excluded from the eligible funds on which the 1% for Art calculation is based.

6.12 When funds are to be segregated prior to use (e.g., bond proceeds subject to arbitrage regulations) and are therefore not eligible for inclusion in the common default project, the restricted funds shall be transferred from the 1% for Art Transfer projects in the various funds to separate default projects in the 1% for Art Fund.

6.13 Budget allocated to element 006 for Art in each capital construction project shall be transferred to the capital project entitled "Transfer to 1% for Art Fund" for transfer to the 1% for Art Fund. Exceptions to this policy may be made to meet conditions imposed by a revenue source, or to facilitate management of arbitrage and interest. Typically, these exceptions will apply to bond funded projects where covenants restrict the uses and earnings of the bond proceeds. This exception also applies to projects supported by the Community Development Block Grant fund. Exceptional treatment will usually consist of establishing a 1% for Art project within the respective bond fund.

6.14 If the County cancels a capital construction project before project completion, and the 1% for Art funds derived from the cancelled project have been transferred to either the 1% for Art transfer project or the 1% for Art Fund, these art funds will remain in that project or fund until the County Executive requests the County Council to disappropriate them and the Council concurs.

7.0 PROCEDURES:

Action By: Project Managers

Action:

7.1 Develop budget amounts for each project elements.

7.2 Deduct amounts identified in Sections 6.7 and 6.8 above.

7.3 Determine the total base for the 1% calculation.

7.3.1 Use 1% of this amount for the budget for element 006 Art in accordance with Section 6.9 above.

7.4 Notify the Cultural Resources Division Manager of their calculation of the 1% amount for art.

Action By: Cultural Resources Division

Action:

7.5 Concurs with the 1% amount in writing, if it is acceptable.

Action By: Project Manager

Action:

7.6 Presentation of the project to the Executive and Council.

7.7 Recalculate the budget for element 006 Art per Sections 7.1, 7.2 and 7.3, when an approved change occurs in the capital construction budget in accordance with Section 6.5.

7.7.1 Notify the Cultural Resources Division Manager of their calculation of the 1% for Art.

Action By: Cultural Resources Division Manager

Action:

7.8 Concurs with the revised 1% amount in writing, if it is acceptable.

7.9 Initiate, at the beginning of the new budget year the transfers of budgets from element 006, as required in Section 6.12 and 6.13 above, when the annual budget process is complete and funds are appropriated to projects.

Action By: Responsible Project Manager

Action:

7.10 If a capital project is initiated outside the annual budget process, after funds are appropriated by ordinance to the capital project, initiates a budget revision request and forwards it to the Budget Division.

Action By: Budget Division

Action:

7.11 Reviews the budget revision request through the normal process for approving budget revisions.

7.12 If satisfactory, transmits the budget revision request to the ARMS Section for entry into the ARMS system.

Action By: Public Art Coordinator

Action:

7.13 Initiates the transfer of art budget from the capital construction project, element 006, to the 1% for Art transfer project in each capital fund by means of a budget revision.

7.14 Initiates transfers of art moneys from the 1% for Art transfer projects in the various capital funds to the common (or separate) default project in the 1% for Art fund by means of an inter-fund transfer voucher in conformance with the usual accounting procedures.

7.14.1 Transfers revenue from the common default project to specific arts projects with a general journal entry transaction.

7.14.2 Transfers revenues from separate default projects to specific arts projects on a reimbursement basis with either general journal transactions or inter-fund transfers as appropriate.

8.0 RESPONSIBILITIES:

8.1 Cultural Resources Division is responsible for management of the public art program.

8.2 Public Art Coordinator is responsible for management of individual art projects in the 1% for Art Fund and specific arts projects in other capital funds where restrictions on the use of funds, as noted in 6.13, make use of the 1% for Art Fund impractical.

8.3 Project Managers are responsible for management of their capital projects and the development of the 1% for Art budget amount.

8.4 Budget Division is responsible for oversight of the capital program budgets and approval of budget transfers.

9.0 APPENDICES:

None