WILLOW GROVE PARKP R E S E N T E D TO A B I N G TO N TO W N S H I P

10/14/2021

EXISTING TAX BASEMALL ONLY

County $492,171

MCCC $407,291

Township $657,383

School $4,433,984

TOTAL $5,990,829

Current Taxes Per Montgomery County Website.

INCREMENTAL NEW TAXESMULTIFAMILY PROJECT

County $120,000

MCCC $10,000

Township $160,000

School $1,100,000

TOTAL $1,390,000

Stabilized estimate

Source: Third party real estate tax study provider, RYAN

NET ECOMONIC IMPACT OF MULTIFAMILY ADDITION

Subtotals Totals

Revenue $331,000

Property Tax $160,000

Earned Income Tax (1) $139,000

Local Service Tax (2) $32,000

Expenses ($168,000)

Administration ($33,000)

Police ($102,000)

Fire ($33,000)

Net Change $163,000

TOWNSHIP

Subtotals Totals

Revenue $1,239,000

Property Tax $1,100,000

Earned Income Tax (1) $139,000

Expenses (3) ($187,000)

Net Change $1,052,000

SCHOOL DISTRICT

1.) 287 new fully employed residents (Estimate from EconSult Report) with estimated income is $94K. 16 Property Mgmt Employees with avg. salary of $50,000

2.) 595 FTE Jobs Created contributing $52/Yr. Plus $1,000 from New Residents

3.) Estimated cost of $13,500 per student and estimated 14 additional new school children (per EconSult Report

ESTIMATED ONE TIME PROJECT FEES PAID TO TOWNSHIPAssumption Fee

Transfer Taxes - Initial 1% of land sales price$153,000

Impact Fees $6,000 per door$2,190,000

Building Permit and Application Fees

New Construction – Residential and

Institutional Uses Permit Fee

Per Abington Township Permit Fee Schedule:

440,600 SF * $180

$80,000

Impervious Coverage Permit Fee

Per Abington Township Permit Fee Schedule:

$50 for up to 250 SF and $10 for each additional 100 SF or fraction

thereof

$50,000

Plan Review Fee Fee for Commercial Zones$250

Swimming Pool Permit $100K pool + $25k decking/equipment = $125k*$35/1,000$5,000

Building Permit Fees

Remainder of the above permit fees using 1% of the total FMV with an

equalization rate of 2.24, which is $78,176,000 from Angelides Report

$650,000

Trade Permits Per Harkins, $1,800 per unit in 2017/2018$660,000

Work License Fee

Per Harkins, 75% of subcontractors will have to renew/apply for the license

fee; $5,000-$7,500$10,000

$3,798,250

ABSENT REINVESTMENT, THE ASSET VALUE WILL DETERIORATE

20% 30% 40% 50% 60%

County (98,434) (147,651) (196,868) (246,086) (295,303)

MCC (81,458) (122,187) (162,916) (203,646) (244,375)

Township (131,477) (197,215) (262,953) (328,692) (394,430)

School (886,797) (1,330,195) (1,773,594) (2,216,992) (2,660,390)

TOTAL (1,198,166) (1,797,249) (2,396,332) (2,995,415) (3,594,497)

*Assumes total project assessment reduced by the % in the header column above

ESTIMATED IMPACT OF REDUCTION IN TAX REVENUE

SCHOOL AGED CHILDRENBelow are three potential methods for calculating the impact on schools of new multifamily housing developments:

ESI RUTGERS NAHB

Apartment Type Count

(365 Total)

Public School

Students

All Students HHI >$100K HHI $50K-

$100K

All Residents Recent Movers

Studio/1BR 165 0 0 2 3

2 BR 182 14 21 16 24

3 BR 18 0 3 4 3

Total Children 14 24 23 30 26 15

ESI RUTGERS NAHB

Apartment Type Count

(365 Total)

Public School

Students

All Students HHI

>$100K

HHI $50K-

$100K

All Residents Recent Movers

Studio/1BR 165 0.000 0.000 0.013 0.016

2 BR 182 0.078 0.114 0.089 0.134

3 BR 18 0.000 0.189 0.239 0.176

Total 0.071 0.040

DATA SOURCES

Rutgers Study NAHB Study

•ESI calculated the number of new public school Children. This number does not include other school age children who do not attend public school. ESI calculated 14 public school children.

• ESI also calculated the number of school age children, regardless of where the children went to school. ESI calculated 24 school age children.

• The Rutgers study and the National Association of Home Builders study both report the number of school age children, regardless of where the children went to school. The Rutgers study implies 23-30 school age children. The NAHB study implies 15-26 school age children for the Bel Canto development.

• The ESI number of school age children is consistent with both the Rutgers study and the NAHB study, which gives credibility to the method and estimates. In other words, the ESI number of 24 is between the 23-30 from the Rutgers study and between the 15-26 from the NAHB study.

• The relevant analysis is how many public school children will there be. The ESI analysis is the only one that calculates that number.

• Therefore 14 public school children is the appropriate number to use.

SUPPORT FOR CALCULATION METHODOLOGY