Dei'ah veDibur - Information & Insight

A Window into the Charedi World

8 Adar 5759 - Feb. 24, 1999 | Mordecai Plaut, director Published Weekly







Decreasing Bnei Brak's Operational Deficit in New Annual Budget

by A. Cohen

The Finance Committee of Bnei Brak has decided that the limit of the annual budget of the Bnei Brak Municipality for the new fiscal year will be 483,6000,000 shekel, as opposed to the previous year's 480,052,000 shekel. This decision was made at the committee's recent meeting attended by the city's mayor, Rabbi Mordechai Karelitz. The committee is headed by City Council member, Rabbi Meir Moskowitz.

This year, emphasis will be placed on intensifying the collection of taxes and fees in all areas and on making maximal use of the income the municipality is eligible to receive from various government ministries.

The municipality predicts an increment of 123 million shekels from the collection of property tax in comparison with the previous year. In his survey, the municipal bursar, Mr. Shmuel Shemesh, noted that the budgetary framework is based on obligations made by the city in the framework of last year's rehabilitation plans as well as plans for the next two years, in accordance with agreements made with the Internal Affairs and Treasury Ministries.

The appointed-committee, which operated the municipality during 1995-1998, left the elected council with a deficit of 115 million shekels. When the new council took office, Rabbi Mordechai Karelitz instructed the city's treasury to formulate and implement the rehabilitation plans which the municipality took upon itself.

Within this framework, the council promised to reduce the deficit which accrued between 1995-1998, to a sum which is 20 million shekels less than the '97 budget, namely about NIS 90 million. It also promised to decrease the deficit by 20 million shekels in 1999 and to limit it to 75 million shekel. In 2000, the operational deficit should narrow to 61 million shekel.

The decrease of the operational deficit by 20 million shekels during the fiscal year of 1999 will be achieved by a reduction of expenses by 49 million shekels and by an increase of the income by 43 million shekels. Additional spending is also planned.

The privatization of the teachers' seminaries and their transfer from municipal frameworks to public organizations, has caused a significant drop in education expenses.

Last month, the municipality sent letters to 60 employees aged 60, notifying them that they must accept early retirement in order to limit the city's salary expenditures. The mayor noted that although the majority of these employees are outstanding, experienced workers, the municipality must take such measures if it wishes to implement the rehabilitation plans to comply with governmental demands.

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