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
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.