Municipal budget cut to make Tel Aviv costlier

Published date09 May 2024
AuthorAsaf Zagrizak
Publication titleGlobes (Rishon LeZion, Israel)
The cut is being implemented because of increased spending following the war, rising prices, and two court rulings last year on improvement levies. The rulings stopped the municipality's practice of collecting the levies on the sale of apartments in buildings that had undergone urban renewal. The municipality claimed the ruling dealt a lethal blow to the municipal budget

In addition, the property tax fund initiated by the government last year to divert part of property tax revenues from local authorities to encourage housing construction, is also harming the municipality's revenues. Tel Aviv is also preparing for the government to impose various decrees on local authorities, as a result of the economic crisis.

15%-40% rise in leisure service prices

The expected cuts in Tel Aviv will include streamlining in all municipal units, with municipal employees having overtime restricted. Public services will also undergo dramatic changes: prices in the leisure sector, such as classes, community centers and country clubs, will rise by 15-40%. After-school prices will also rise.

Prices in the leisure sector in Tel Aviv have actually not risen since 2019, and in 2021 they even fell significantly with the launch of a municipal program to ease residents' cost of living burden. Prices are now expected to return to the pre-initiative level. Discounts for the south of the city and Yafo will be unaffected.

Planned infrastructure projects planned will be partially frozen, but planning procedures will continue. Cultural events in the city will be canceled, also because of the atmosphere due to the war, including White Nights, the...

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