Is $67,886 “de minimus” to Your Family?

 

Council Member Declares that $67k per Family is Insignificant

Websters Dictionary defines “de minimus” as being so minor as to merit disregard. On June 21, during a special session council member Kate Harrison declared the additional $500+ increase in city tax assessment required to support new borrowing was a “de minimus” or insignificant amount for a family to pay. She suggested the proposed bond repayments were like the “de minimus" interest paid on a home mortgage (see video below).

Harrison was referring to $500 per year for approximately 30 years that city council is proposing to charge residents for just one of two proposed bond measures. Imagine, for example, that you invested the same $500 for 30 years in a retirement account. After 30 years of payments, your investment would be $67,886. This figure assumes the same return rate as the city’s pension fund. Also, keep in mind that $500 in annual tax is the average amount meaning about half the city’s residents will pay even more.

City council’s “de minimus” claim exceeds the amount of money most families are trying to save for college. Can you afford this diversion from your children’s future education? The tradeoffs City Council is creating represents another challenge for Berkeley families coping with the high cost of living.

The average per household opportunity cost of just one of the city council’s proposed new bond measures is a “de minimus” $67,886 

Don’t take our word for it, see the complete video here