The Coface Bdi company publishes the ranking of the financial stability of the local authorities for 2022. At the top, for the second year in a row, is Holon, while at the bottom of the ranking is Kiryat Yam, which is currently building a new municipal building at a cost of about fifty million shekels. Kiryat Motzkin was ranked in 19th place, Kiryat Bialik in 21st place, Haifa in 27th place, Kiryat Ata in 35th place and, as mentioned, Kiryat Yam in last place among the authorities tested.
The Coface Bdi study examined the entire population of the municipalities and councils in Israel and was based on the use of 3 sources of information: the Central Bureau of Statistics, financial reports of the municipalities and councils and the databases of the Coface Bdi company. In order to test financial strength, a number of financial indicators were chosen that reflect the ability of municipalities and councils to meet debt repayment. Also, an activity efficiency index was built that reflects the efficiency of a municipality’s or council’s conduct. The purpose of the work was to locate the councils and municipalities with the best profile of business risk, financial strength, payment behavior and efficiency.
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Authorities with a socioeconomic rating ranging from 4 to 10 (the best) were included in the rating. The socioeconomic rating differentiates between the strong and the weak populations according to the CBS data and examines, among other things, the average income per capita, the level of motoring (total number of vehicles divided by the number of residents ), percentage entitled to a matriculation certificate, percentage of students, percentage of job seekers, dependency ratio and percentage of income security benefit recipients. It should be noted that the financial stability rating is not always related to the socioeconomic rating and there may be authorities that belong to a low cluster but whose stability rating is relatively high and vice versa.
“In the case of Tel Aviv, the drop in ranking is explained by an increase in the burden of loan payments in relation to the Authority’s revenues, a decrease in the municipality’s efficiency and a relative deterioration in the municipality’s ability to meet short-term obligations,” says Tahila Yanai, joint CEO of CofaceBdi. “Municipalities of Afula and Kiryat I suffer from a similar problem, although much more acute in light of the ranking in the table.”
In addition to ranking the municipalities, Coface Bdi also ranked the local and regional councils. At the top of the table is the village of Shamariahu, which keeps its place for the second year in a row. After that, Omer, Ibn Yehuda, Gan Roa and Sabion are located. At the bottom you can find Ma’ale Ephraim, Habel Yavneh, Arovat Jordan, Bnei Shimon and Kiryat Tivon.