Montgomery Township Fiscal Analysis: Making Decisions in a Climate of Change

Following a period of extraordinary growth in the 1980s and early 1990s, Montgomery Township in north central Montgomery County, PA, engaged the Pennsylvania Economy League--Eastern Division (PEL) to perform a fiscal analysis of revenues and expenditures in the Township. Of primary importance was the need to examine the relationship between taxes paid and services received. PEL also examined the potential fiscal impact of other tax options and analyzed the tax bills of "typical" Montgomery Township taxpayers versus those in other jurisdictions in the region (jurisdictions that compete for residents and businesses).

This comparative analysis recognizes that it is important for a jurisdiction to be aware of what its neighbors are doing fiscally--how much are they taxing their residents and businesses, with an understanding of the level of services they provide.