Mandan Public Schools is switching its funding method for a sixth-grade addition.

Instead of selling about $2.5 million in general obligation bonds, it will sell $520,000. The remainder will come from a state school construction loan.

"Last time, we we were selling the whole thing on the open market because it was favorable," business manager Joe Lukach said. "It isn't favorable anymore."

The Mandan School Board approved the change at its meeting Monday. The district will apply for $2.035 million from the school construction fund. The bonds will be sold Oct. 20.

The loans and bonds will be used for the construction of the sixth-grade wing addition to Mandan Middle School. Construction should start this fall and open in fall 2010.

Bids for the project came under budget. The district anticipated $2.7 to $2.8 million for the construction. Instead, bids came in less, for a total of $2.1 million. The general contractor is Missouri River Contracting for $1.397 million; mechanical contractor is Cofell's Plumbing and Heating for $391,100; electrical contractor is Frontier Electric, Inc. for about $286,741; and fire protection by Nova Fire Protection for $29,550.

The board also approved its budget for the 2008-09 school year. The mill levy will be 233.92 mills, which includes the general fund, building fund, sinking and interest fund, technology fund, special assessment fund and asbestos fund.

Mills levied for the sinking and interest fund decreased from last year because the district only levies the mills needed to make the payments and mills levied for special assessments increased because of the Collins Avenue Project, the middle school and other roadway projects.

Another attempt to raise the building fund mill levy from 16.5 mills to 18 mills was defeated. The finance committee and the facilities committee recently requested that the mill levy be raised. It is the third time the finance committee recommended the increase.

An increase was proposed because the sixth-grade wing will draw down the available funds in the building fund for other projects. The committees want to have funds to continue on its plans for building maintenance at the same time the district pays for the sixth-grade wing.

"It's not just waiting and putting it off," board member Dan Leingang said.

The sixth-grade wing is the priority for the district, he said.

Only one board member voted to increase the building fund mill levy. Lee Fleischer wanted to increase it so that those maintenance projects can be paid for now. If the district waits, it could cost more in supplies and labor, he said.

Board member Tim Rector was the only member not to cast a vote on the increase, because of a work commitment. The other members present voted against the increase.

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