The municipal budget for the City of Bnei Brak will come to
NIS 653.5 million ($140 million) for the year 2006 in
contrast to an operating report of NIS 682.7 million ($146
million) for the previous year the Finance Committee and the
City Council confirmed.
At the beginning of the committee meeting, Mayor Rabbi
Frankentahl noted that the running deficit decreased from NIS
90-95 million ($19-20 million) in the past to an operating
estimate of NIS 48.8 million ($10.5 million) in 2005 due to
extensive economic recovery activity. According to the
proposed budget it will drop to NIS 16.7 million ($3.6
million).
The Mayor says these activities are "financial oxygen" in the
form of payments to suppliers and employee salaries. The
budget plan focuses on reducing expenses and increasing
income. Through these efforts and professional money
management Bnei Brak became one of five local authorities
permitted to issue debentures to the public.
Wage expenses will decrease from NIS 256 million ($55
million) to NIS 250 million ($53.5 million). The primary
components of the new budget are NIS 176 million ($37.7
million) for education, NIS 90 million ($19 million) for
welfare, NIS 22 million ($4.7 million) for water, NIS 11.6
million ($2.5 million) for religious services, NIS 38.8
million ($8.3 million) for sanitation, NIS 11.9 million ($2.6
million) for sewage, NIS 11 million ($2.4 million) for
mikvo'os, NIS 6.9 million ($1.5 million) for safety
and NIS 15 million ($3.2 million) for infrastructures.
In addition to the regular budget, for the first time the
Mayor is tabling before the City Council the development
budget for 2006, which comes to a record NIS 83 million
($17.8 million) raised from various sources including
government ministries and contributions. These funds will be
used for gardening and building educational institutions and
roads.
The City Treasurer said that the increase in income from
property taxes is not built on a rise in rates but on the new
BSR Towers, the expansion of the Coca-Cola factory by
thousands of square meters and the introduction of a new
production line and additional buildings in the industrial
area.
The reduction in expenses involves reducing cell-phone and
electricity usage and running a tender for advertising in the
city and collecting fees for dispatched goods. The city also
managed to pay back NIS 130 million ($28 million) in loans
from previous years and a considerable portion of worker
funds.
At the City Council meeting the Mayor also spoke about
raising rates for mikveh use, saying it is in the
Interior Ministry's recovery plan and a circular from the
ministry's director and was approved by rabbonim. Even after
the raise in rates, the use fees in Bnei Brak remain below
those in other places. He said a further decision would be
made once all the data has been gathered.
