Fargo's school district may use two property tax levies that are reserved for building projects to finance a new high school, Attorney General Wayne Stenehjem said.

In a legal opinion requested by state Rep. Steve Zaiser, D-Fargo, Stenehjem also said the district does not have power to set up a building authority for city schools, but that any person who is at least 18 years old may do so.

Fargo's school district has its own building authority, which was established as a nonprofit corporation in May 1988, state records show. Dan Huffman, an assistant superintendent and business manager, is in charge of its paperwork.

The Fargo School Board has approved building a new high school, named for the late federal judge Ronald Davies, in south Fargo. Construction on the $44.4 million project is expected to begin in the spring of 2009.

The building authority is not playing a role in the new high school's financing, and the school district's general revenues are not being used, descriptions of the project say. It is being financed by two school district property taxes, totaling 26.4 mills, that may be used for school construction and improvements.

The property tax rate translates into $178.20 of property taxes annually for the owner of a $150,000 home. The district has borrowed $43 million for the project by selling two bond issues, for $10 million and $33 million.

Zaiser said Wednesday he was reviewing the opinion and declined to comment at length about its conclusions.

"It's not clear. It's difficult to read," Zaiser said. "There are inconsistencies in certain things that we're checking out."

Zaiser had asked whether the school's building fund tax of 11.4 mills could be used to build a new high school. Stenehjem said it could, unless the school board or voters repealed the tax.

Separately, Stenehjem said the school district does not have the legal power to form its own building authority, but that people at least 18 years old could do so.

The authority may issue bonds, construct buildings and improvements and lease them to the school district, and the school district may use its general revenues to make the lease payments, Stenehjem said.