Building Fund Authorization - Frequently Asked Questions

 

Section A: Ballot Basics

What is the June 10th ballot?

In addition to filling two school board vacancies, the June 10th ballot includes a measure asking voters to grant the school district authority to levy up to 20 mills for the Building Fund. North Dakota law requires voter approval before such a levy can be enacted. If approved, the funding would support facility maintenance, capital improvements, and reduce both short- and long-term strain on the district’s General Fund.

What does a “for giving” Vote Mean?

  • Voting “For giving the school board the authority to levy up to 20 mills for the School Building Fund” means you support allowing the district to establish a voter-approved Building Fund. This would:

    • Provide legal authority to levy up to 20 mills for building and facility needs

    • Reduce pressure on the General Fund by covering repairs, maintenance, and improvements through a dedicated fund

    • Support long-term financial stability and proactive facility planning

What does an “against giving” Vote Mean?

  • Voting “Against giving the school board the authority to levy up to 20 mills for the School Building Fund” means the district would not have the legal authority to levy Building Fund mills. As a result:

  • The district would be unable to create a dedicated fund for building and facility needs

  • Future maintenance and upgrades would need to be paid from the General Fund

  • This would add continued financial strain and limit flexibility for long-term planning

If approved, how long does the building fund levy authority last?

If approved, the authority to levy up to 20 mills for the Building Fund is granted indefinitely, unless it is rescinded or reduced by voters through a future ballot measure. The school board reviews and sets the levy amount annually based on district budgetary needs.

How many votes are needed for the measure to pass?

Under North Dakota Century Code § 57-15-16, this ballot measure requires approval by at least 60% of qualified electors voting on the question. If fewer than 60% vote in favor, the measure does not pass, and the district cannot levy Building Fund mills.

Section B: Building Fund Purpose and Usage

Tax Levies - School Funds Comparison

what is a building fund?

  • A Building Fund is a dedicated fund used only for school facility improvements and repairs

  • It covers items like HVAC systems, roof and parking lot repairs, building safety upgrades and structural maintenance

  • The fund helps ensure safe, modern learning environments for students and staff

Why does the district need a building fund?

The Building Fund supports long-term financial stability by dedicating mills specifically for facility maintenance, repairs, and capital improvements—such as roofing, flooring, lighting, plumbing, HVAC systems, and safety upgrades. This reduces strain on the General Fund, which currently covers many of these costs, and helps preserve resources for educational programs, staffing, and student services.

April Balances - Historical

What are the financial benefits of approving the building fund levy authority?

Approving the Building Fund levy authority provides several key financial advantages for the district:

  • Protects the General Fund:
    Designating funds specifically for building maintenance and capital improvements reduces the strain on the General Fund, allowing more dollars to remain focused on classroom instruction, staffing, and student support

  • Promotes Long-Term Stability:
    A voter-approved Building Fund enables the district to plan proactively for future facility needs rather than reacting to emergencies — reducing the risk of large, unexpected costs

  • Avoids Deferred Maintenance Costs:
    Timely repairs and upgrades funded through the Building Fund help avoid higher costs down the road due to delayed maintenance or system failures

  • Improves Eligibility for Grants or Matching Funds:
    Some state and federal grant programs favor or require local investment. Having a dedicated Building Fund can improve the district’s ability to qualify for additional outside funding

  • Maintains Safe, Functional Learning Environments:
    Keeping facilities up to date ensures students and staff have safe, comfortable, and effective spaces to learn and work — supporting student success and staff retention

  • Supports Continued Opportunities and Innovation:
    With stable funding for facilities, the district can focus more energy and resources on expanding student opportunities, integrating new programs, and fostering innovation across grade levels

Is this related to the repayment of past building fund levies?

No. The June 10th vote is focused solely on authorizing future Building Fund levies. Any discussion about repaying previously Building Fund levy funds is a separate issue that will be addressed after the election and does not impact this ballot measure.

What happens if the vote fails?

If the vote fails, this will significantly limit the ability to fund necessary repairs and facility improvements. Without dedicated Building Fund support, costs for maintenance and infrastructure would shift entirely to the General Fund — resulting in reduced student opportunities, potential staffing adjustments, and potential cuts to other essential programs and services. Additionally, continued financial strain on the General Fund would negatively impact long-term financial stability.

Total Mills Levied - Historical

Section C: Taxes and Financial Impact

If the June 10th ballot is approved, does that mean the district will levy the full 20 mills?

No. Voter approval grants the authority to levy up to 20 mills, but it does not require the district to levy that amount. The school board reviews and sets the Building Fund levy annually and may choose to levy any amount up to 20 mills — including zero, depending on the district’s needs and financial outlook.

Will this raise my taxes?

Authorizing up to 20 mills gives the district the legal flexibility to levy Building Fund mills, but it does not automatically increase taxes. Based on current projections, the district anticipates levying around 8 mills per year for the Building Fund.

To provide context, the district’s total tax levy decreased by 19.19% from 2023–2024 to 2024–2025, largely due to the removal of the Building Fund levy and a reduction in the tuition fund levy. For 2025–2026, with an approved Building Fund measure, the projected 11.8% increase in tax levies reflects a return to more typical funding levels. This increase is driven by a combination of factors—including inflation, general operational needs, and potential use of the Building Fund.

Annual Taxes Levied - Historical

Why did the school’s tax levies decrease almost 20% for the current year?

The 19.19% decrease in the district’s tax levies from the 2023–2024 to the 2024–2025 school year occurred for two main reasons:

  • The Building Fund levy was reduced to zero after it was discovered that the district did not have the legal authority to levy Building Fund mills

  • The tuition fund levy ended up lower than intended due to how the county processed the district’s levy request

These factors led to a significant reduction in the school portion of local property taxes.

How does Sargent Central’s school district mill levy compare to others?

For the current school year, Sargent Central’s total school district mill levy remains one of the lowest in the region. The list below shows how we compare to neighboring districts.

  • Wyndmere: 110.15 mills

  • Oakes: 105.53 mills

  • Milnor: 102.96 mills

  • Lidgerwood: 102.00 mills

  • Fairmount: 99.00 mills

  • Lisbon: 98.21 mills

  • North Sargent: 97.76 mills

  • Enderlin: 96.76 mills

  • Hankinson: 96.00 mills

  • LaMoure: 94.88 mills

  • Ellendale: 91.78 mills

  • Sargent Central: 89.00 mills

Is there a spending issue within our school district?

No. The district has maintained consistent and responsible spending over time. While there have been larger-scale investments—such as the track, kitchen and bathroom remodels, and the Wellness Center addition—overall expenditures have remained stable.

For example, in the 2017–2018 school year, total expenditures were $4,344,338.34. The projected expenditures for the 2025–2026 school year are $4,339,701.

Is the district currently levying taxes through the Interest and Sinking Fund for the construction bond approved on April 14th, 2009?

No. The district is no longer levying taxes for the 2009 construction bond. The final payment on the $3.8 million bond was made in May 2024, and the Interest and Sinking Fund levy has been removed from the district’s tax structure.

Section D: State Aid and Other District Comparisons

State Aid - Historical

What about State aid?

While the state formula rate for per-pupil funding is increasing — projected to reach $11,519 in the 2026–2027 school year — Sargent Central is part of the transition minimum provision. This means our actual state aid is based on older funding levels rather than the full formula increase. In 2013–2014, the district received $2,283,520 in total state aid. For 2024–2025, the district is receiving $1,968,765, and projections for 2026–2027 show a further decrease to $1,874,652, assuming stable enrollment.

Each year, the transition minimum portion of our state aid decreases:

  • 2025–2026: $142,262

  • 2026–2027: $59,409

  • By 2027–2028: $0

Once the transition minimum is fully phased out, the district will rely solely on the base formula — which, under current conditions, results in lower state funding than a decade ago. Because of this, local funding sources like the Building Fund levy remain essential to maintain safe facilities and protect educational programming and staffing.

What percent of public schools levy mills through a building fund?

75% of public school districts in North Dakota levy mills through their Building Fund. This funding mechanism is widely used to support school facility maintenance, repairs, and long-term capital improvements.

Percent of ND Schools with a Building Fund

Which nearby school districts levy mills through a building fund, and what are their rates?

Many neighboring school districts have Building Fund levies to support facility maintenance and improvements. Here are the current Building Fund mill levies for nearby districts:

  • Milnor: 20 mills

  • North Sargent: 10 mills

  • Oakes: 20 mills

  • LaMoure: 10 mills

  • Lisbon: 20 mills

  • Enderlin: 10.10 mills

  • Hankinson: 20 mills

  • Lidgerwood: 20 mills

  • Fairmount: 14 mills

  • Wyndmere: 19.94 mills

  • Ellendale: 2.99 mills

Section E: Community Questions and feedback

have a question?

The questions and feedback submitted through the survey link below have helped shape this FAQs page. If you have additional questions you'd like us to consider, please submit them using the link below:

When will repayment of past unauthorized building fund levies be decided?

On February 12th, 2025, the Sargent Central School Board unanimously approved the full repayment of $786,191 in Building Fund levies collected from 2017 to 2023 without proper voter authorization. However, the specific method and timeline for issuing these repayments have not yet been finalized.

For more information on this, please visit: https://www.sargentcentral.org/building-fund

Thank You

Thank you for taking the time to learn more about the upcoming June 10th Building Fund ballot measure. We appreciate your ongoing support of Sargent Central Public School and your commitment to our students, staff, and community.

Together is Central.