A survey by Business Data Israel (BDI) has ranked Ashdod the country’s most stable city, while Raanana is the most efficient. The survey, which has been published for the third year in a row, rated the stability and financial strength of 250 cities and local authorities. It found that 37% of Israelis avoid paying municipal property taxes to their local authorities.
The BDI rating, which is based on audited figures published by local authorities for 2005 reveals that Ashdod overtook Holon, which led the rankings for the previous two years. Rishon Leziyon came second, followed by Holon, Ramat Gan and Ashdod. Also moving up the rankings this year were Tel Aviv and Kfar Saba, ranked eighth and tenth, while Ashdod and Rishon Leziyon were found to have the highest budget surplus in 2005 (in absolute terms).
The BDI was based on the following seven indices: working capital ratio, debt/liability ratio, deficit/surplus ratio, debt servicing, depth of debt, self-generated income to revenue ratio, efficacy index (proportion of local residents per local authority employee), and level of public service budgeting.
Kfar Shmaryahu came top again in the survey ranking of local councils, followed by Savyon, and Ramat Hanegev which retained second and third place for the third year in a row.
The BDI survey also found that 48% of Israel’s local authorities still had a deficit in 2005, a significant improvement on 2004 in which the rate of local authorities with deficits stood at 76%. The average rate of payment collection (municipal property taxes and outstanding debts) stood at 63% in 2005, unchanged from 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on December 18, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006