Bismarck Tribune

Special assessment could cause a mill levy increase in Mandan Public Schools.

The District is waiting for final figures for its assessment on the new middle school and the upgrades to Collins Avenue. Business Manager Joe Lukach and Superintendent Wilfred Volesky updated the district's finance committee Tuesday.

Preliminary figures for the middle school's special assessment is $2.7 million. The estimate for the work on Collins Avenue is $5,100, but that's based on the front and corner of the district's central administration building, not the entire lot, Lukach said.

This could raised the special assessments mill levy for the district to 6.71 mills, an increase from 3.5 mills levied last year. Combined with a decrease in the district's sinking and interest mill levy, the total mill levy for the district could be 234.65 mills, or about a 2 mill decrease.

On a $150,000 home this could cost about $1,583. Taxable values are calculated by the city or county and are adjusted each year. The school district is only one taxing entity on an annual tax bill.

The finance committee also discussed the building fund mill levy. It recommended again to raise the building fund mill levy to 18 mills from its current 16.5 mills. The school board would need to make the final decision. The board rejected a recommendation from the committee earlier this year to raise it.

"I believe the worse-case scenario is because of special assessments," Volesky said. "If we increase the building fund mill a mill and half, I think people will think it is because of the sixth grade addition and that would not be true. It is not because of the sixth grade addition. It is because of an increase in special assessments."

Volesky cautioned the finance committee against making a recommendation for increasing the building fund mills until next year. That way the district will know if it receives another deferred maintenance grant from the state.

The district received a $123,000 deferred maintenance grant from the state, and it has about $100,000 in carry over in the fund, which will help pay for maintenance next year. District administrators hope another deferred maintenance grant is awarded in 2009 to increase what is available for maintenance.

"If you have money left, you'll pay it on maintenance," Volesky said.

An increase in the building fund mills would make more money available for maintenance and building projects. The district plans to pay off a construction loan for the sixth grade wing at the new middle school out of the building fund. The committee recommended Monday to pay off the loan over 20 years.

When the district pays off the loan, it leaves less money for maintenance projects.

The school board will hear the finance committee recommendations at its next meeting Aug. 4 at 5:30 p.m. in the Central Administration Building.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)