Financial Management

The Municipality of Ramla has launched a municipal strategic plan which has led the city to impressive achievements. The economic revolution that has been accomplished has garnered great successes, including budgetary balance, increased investment in infrastructures and the creation of a vibrant community. All in collaboration with the resident to shape the city’s future. Ramla has learned to cope with increasing local and national competition, which has enabled it to provide its residents with a more diverse and high quality service package

 

In 2006, the Municipality of Ramla launched an economic revolution and was a pioneer in the issuing of municipal bonds amounting to about 140 million NIS. This move reduced municipality’s repayment of loans by millions of shekels, resolved its credit crunch, diversified its sources of credit, and reduced loan repayment costs. This constituted a breakthrough in the municipal economy. In the wake of Ramla’s bond issuing, additional local authorities made a similar move. The issuing was part of an overall convalescence program and streamlining, upgrade and cost reduction processes, achieved by means of technology, thereby reducing the municipality’s accrued deficits. The implementation of this economic program increased investment volumes in the city and created more opportunities for all sectors of the economy. Alongside the lowering of financing costs, wages were reduced to 35% of the budget volume, all the while maintaining high quality of service for residents

 

In April 2010, S&P Maalot Credit Ratings raised the Ramla Municipality bonds to an AA credit rating. The credit rating committee based its decision inter alia on balanced budgetary management and effective and responsible financial management at Ramla Municipality since 2006, and its belief in the capacity of Ramla’s current leadership and management, despite its low socio-economic ranking, to maintain a well balanced and responsible budget. According to the Rating Committee, Ramla is in Tier 2 despite its low socio-economic status (ranking in group 5 on a scale of 1-10 - Central Bureau of Statistics). However, with regard to the municipal conduct and additional parameters, the Committee members feel comfortable with their decision. One of the reasons cited for the Committee rating: “raising the rating and removing it from Creditwatch – reflects our opinion that Ramla’s financing committee’s credit quality is identical to that of the city of Ramla… the city benefits from responsible financial management manifest in good budgetary performance since 2006”. The Municipality of Ramla continues its efforts to oversee the financial economy responsibly and devotedly, while further reinforcing its financial strength, developing employment opportunities and commercial centers and expanding the service package for residents, upgrading its quality and diversity

 

Concomitant with the economic revolution, the collection rate has soared to over 85 percent – the highest rate yet, mainly in view of the city’s socio-economic status (Level 4 Cluster in the ranking of the Central Bureau of Statistics). The Municipality ended 2006 with a surplus of 2.1 million NIS. This year saw a recording breaking increase of the city’s development expenses which soared to 121 million NIS. From 2007-2009, despite the recession, the economic strength of Ramle Municipality stood out as it ended the year with a balanced and positive cashflow. In 2010 the Municipality’s current budget will stand about 319 million NIS. Ramla doubled itself in size. Another 600,000 meters of residential area were added to its circumference and there has been a positive volume of industry which stands at over 2.3 million m of commercial space, industry, services and employment. The total positive property taxes currently stand at over 4 million meters. It should be noted that there has been a dramatic increase in property taxes collection volumes, the large portion of which derive from the marketing of commercial, industrial and office space

 

Balance grant 2009 – 35.9 million NIS (calculated grant 48.2 million NIS

 

 

 

 

 

 

The city operates within a balanced budget

 

 

 

 
 

Incomes, expenses and current deficit