The Hermiston School District Board of Education is considering returning $1.5 million of school construction bond money back to taxpayers.

After the three new schools are built and other high-priority improvement projects are complete, the school district should have $3.7 million left over, Assistant Superintendent Wade Smith told the board Monday night.

The district then will tackle phase two projects, a 10-item to-do list that includes a repair and renovation of high school locker rooms and upgrades to the heating and cooling system at Rocky Heights Elementary School. Even after phase two is complete, however, the district will have $1.5 million left over.

The board has asked us to explore a rebate consideration, Smith said. It was a novel idea for district leaders, he added, and they called their lawyers to see how it could be done.

The lawyers and bond authorizing agency had never been asked the question, Smith said, but it turns out that the district can rebate the money back to taxpayers or offer tax relief in the coming years.

It probably wouldnt be much, and taxpayers might not see the money for years.

Alternatively, the district could spend the money on phase three projects, a roster that includes an outdoor restroom/ concession stand at Sandstone Middle School.

Smith said the board could use a few different mechanisms to return the money. One idea is to provide tax relief amortized over multiple years. He calculated that if the board were to return $1 million, that would mean about a 10 cent per $1,000 of assessed value amount of tax relief over approximately six years. For example, a resident with a home valued at $100,000 would see a $10 relief in taxes per year.

The largest payers of taxers and, hence, those with the biggest rebates, would be the towns large businesses, Smith said.

The are myriad reasons for the leftover money, he said. For example, the district saved about $2.2 million thanks to the federal E-Rate program, which provides money for new classroom technology.

The district also gained around $200,000 in federal tax rebates for installing energy-efficient equipment.

Finally, the district benefited from its own good credit rating. It has earned more than $900,000 in bond proceeds, which is added dollars from investors who paid a premium for the bonds.

The board asked its bond oversight committee to discuss the issue and make a recommendation. The committee met Tuesday night. Smith said the nine-member committee was not in agreement on whether to return the money. Instead of a recommendation, it summarized its various arguments.

The school board will next meet Feb. 14.