Thursday, February 6, 2014
Tel Aviv: ₪3bn budget surplus, AAA credit rating
Tel Aviv municipality is not a publicly traded entity and hasn't issued bonds, with bank loans of 1.4 billion shekel. The credit rating received by the municipality is usually reserved for companies that issued bonds which has increased the transparency in the city budget and the confidence of residents and financial institutions.
Maalot anticipates that Tel Aviv's municipal property tax revenues will grow by 5% a year between 2013 and 2016. Well balanced income and expenditure management led to higher rates of property tax collection and annual operating surpluses. A weakness noted by Maalot was short term financial planning in international comparisons and not enough long-term budgeting plans.
Another weakness noted by Maalot was Tel Aviv municipal workers' pensions obligations, totalling 6 billion shekel - or 144% of the expected anual operating income in 2014, higher than average by international comparisons.