Local authorities presentation

The Federation of Local Authorities

Transcript of Local authorities presentation

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The Federation of Local Authorities

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The Federation of Local Authorities is the umbrella organization of all the municipalities and local councils in Israel.

The primary role of the federation is to represent the local authorities and to promote their interests in the Knesset and government agencies. In addition, the Federation of Local Authorities provides support and advice to the local authorities in their ongoing activity.

About Us

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The Federation of Local Authorities was established in 1938, ten years before the establishment of the State of Israel. It was initially called the "Local Councils Association" and was officially registered as an Ottoman association. The mandatory government recognized it as the representative body of the Hebrew local government.

The "Association" was joined by all the Hebrew local councils at that time, 24 in total, excluding major cities. In 1953 three major cities: Jerusalem, Tel-Aviv and Haifa joined the "Association" and the organization's name was changed to the "Federation of Local Authorities".

Historical Background

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At present the Federation of Local Authorities consists of all 203 municipal local authorities: 75 cities and 128 local councils of all sectors: Jewish, Arab, Druze, Circassian, non-orthodox, ultra-orthodox, central cities and cities from the periphery.

There are additional non-member local authorities named "regional authorities", to which the Federation of Local Authorities provides general services only.

The current Chairman of the Federation of Local Authorities is the mayor of Modi'in - Maccabim - Reut, Mr. Haim Bibas.

An overview of the Local Government in Israel

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Socio-Economic ClustersNumber of Authorities in Each Cluster

Sectors segmentation

456789 12

Socio Economic Cluster3

Jewish Arabic Druze Beduin

No.

of

auth

oriti

es

12018 7

56

10

*The data does not include Tefen and Ramat Hovav

34

47 1413

23

28 25

773

No. of

Authorities

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Total current budgetThe current budget of all of the local authorities in Israel for 2014 totaled NIS 54b.

Balance grants – how much do the local authorities get?As part of the Arrangements Law for the years 2015-2016, it has been agreedupon that the balance grants for 2015 will amount to NIS 2.95b and the balancegrants for 2016 will amount to NIS 3.1b.

Participation of the government in development compared to the development expenses of the local authorities in 2014The government participation in the development budgets amounted to some NIS 2.8b. The total development expenses (payments carried out in practice) amounted to NIS 9.3b.

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To serve as an umbrella organization and a representative body for all the local authorities in Israel;

To play an active role in representing the local authorities vis-a-vis the government and the Knesset;

To address core issues and principal problems encountered by the local authorities, and to provide the local authorities with professional and efficient services.

Agenda, Vision and Objectives

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The Divisions of the Local Authorities ("Masham") - Areas of Activity

The Division of Law, Regulation and Control - The Division introduces the municipal legislative proceedings to the Knesset and its committees. It takes part in the Federation's communication with the government and other public institutions, prepares bill proposals, initiates legislative proceedings and represents the Federation in legal proceedings. The division also collaborates with mayors in order to support and promote matters which are on the agenda of the local authority. It also engages in matters related to housing, planning and construction and gathers information in the environmental field.

The Division of Economy - The division integrates financial, commercial and budget related matters connected with the operations of the local authorities in Israel. The division represents such matters before the central government and advances processes to achieve financial independence within the local authorities.

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The Divisions of the Local Authorities ("Masham") - Areas of ActivityThe Division of Knesset and Welfare - The division serves as a channel between the Knesset and the local authorities. It protects the interests of the local authorities in the Knesset's legislative process using its well established connections with the Knesset committees and the support of a Knesset lobby assisting it in different matters.

In the welfare field the division serves as an instrumental professional link in forming the welfare policy and its actual implementation by the welfare departments of the local authorities.

The division also engages in matters concerning women's empowerment and gender equality and liaisons with relevant bodies in the local authorities which are responsible for the prevention of sexual harassment.

The Division of Education and Social Affairs - The division addresses important core issues related to the social, cultural, educational and community life of the citizens of the local authorities: education, immigrant absorption, health, senior citizens, culture and sports.

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The Divisions of the Local Authorities ("Masham") - Areas of Activity

The Division of Safety and Emergency – The division is responsible for all matters related to current safety including the readiness of authorities in times of emergency and security in educational institutions. The division maintains ongoing working relations with all the national emergency organizations in Israel: The Home Front Command, the police, fire and rescue authority and Magen David Adom as well as ministries: the Ministry of Public Security, the Ministry of Interior, the Ministry of Education, the ministry of Home Front Defense, the Ministry of Defense and the IDF.

international affairs – The International Affairs division has heralded as its mission, the “importation” of positive and concrete initiatives from the international arena for the benefit of Israelis throughout the country, via the prism of the local governments. For example, the division forwards people-to-people ties, empowerment of women and youth, encouragement of investments in urban enterprises and projects, “importing best urban practices” from throughout the world and more. The division works in close cooperation and partnership with all municipalities throughout the country, all government ministries, economic bodies, such as the Federation of Industry, the Union of Chambers of Commerce, the Investment Bureau in the Ministry of Economy and the Economic division in the Israeli Ministry of Foreign Affairs, NGO’s and of course - international bodies and organizations.

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The Divisions of the Local Authorities ("Masham") - Areas of ActivityThe Division of Finance, Operation and Business Development – The division functions as the financial branch of the Federation of Local Authorities. It is responsible for the preparation of financial reports, collecting membership fees and overseeing the execution of overall payments to the suppliers of the division s of the local authorities. The division is also responsible for the advancement and development of financial initiatives led by the divisions of the Federation of Local Authorities such as consumer club, sponsorships etc.

The Division of Training - The division is responsible for the professional training of the employees of the local authorities. It organizes seminars on current affairs, conducts professional courses and organizes conferences and annual continuing educational programs in collaboration with professional federations aimed at improving the human capital of the local authorities in Israel.

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The Divisions of the Local Authorities ("Masham") - Areas of ActivityDivision of Labor Relations and Wages - The division represents the local authorities in matters related to labor relations, employment agreements and wages, terms of employment, and rights and obligations of employees and mayors before any relevant body, including negotiating units, government institutes, the Knesset and the Supervisorof Wages in the Ministry of Finance and the Ministry of the Interior.

Department of PR, Media and Communications - The division advertises the operations of the Federation of Local Authorities in various media tools and increases the presence in new-media and social networks.

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Additional Areas of ActivityThe Forum of Former Mayors and Mediation Center - The forum encompasses approximately 450 former mayors, of all sectors, who continue their contribution for the reinforcement of the local authorities.As part of the forum's activity a mediation center was established, which provides mediation services to the local authorities as an alternative solution for the resolution of municipal and civil disputes within the court system. The department acts to implement the mediation process within the local authorities and to integrate the mediation practice through qualifying courses.

Trade Federations - The trade federations, which were established with the encouragement and support of the Federation of Local Authorities, serve as assisting and supporting organizations to the federation, each in its relevant field.

Each federation consists of relevant professionals who take part in the federation's activity. The trade federations represent the Federation of Local Authority in the various Knesset committees; they take part in negotiations for the execution of collective bargaining agreements; serve as permanent members of the Federation's committees and take part in professional meetings from time to time.

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Additional Areas of ActivityForum 15 - Forum 15 brings together the 15 cities in that receive no "balancing grants" or "development grants" from the government. These cities are managed as closed economies, which rely on their independent financial resources. The Forum includes the following cities: Ashdod, Beer Sheva, Givatayim, Herzliya, Hadera, Holon, Haifa, Kefar Saba, Netanya, Petach Tikva, Rishon Lezion, Rehovot, Ramat Gan, Ra'anana and Tel Aviv-Yafo.

Forum 15 focuses on the reorganization of the central government relations with major cities in Israel with the purpose of increasing the powers and administrative independency of major cities. The Forum also acts to advance, support and develop the cities which are members of the forum through the execution of joint ventures.

The Forum's key areas of activity include: legislation and regulation, planning and construction, environment, green architecture, transportation, education, E- government and innovation.

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v

Subsidiaries

The Local Government Economic Services Company of the Local Authority Ltd.

Chairman of the Company: Mr. Haim Bibas

The Local Government Economic Services Company was established in 1974 with the purpose of providing various services and solutions to the local authorities, including the reduction of costs and simplification and streamlining of the performance of public projects.

The company offers services to a wide range of municipal activities: building educational institutions and public buildings, water and sewage infrastructure development, purchase, transportation, waste and sanitation, business development, entrepreneurship, privatization, insurance and more.

Automation technologies group

Chairman of the Company: Mr. Adi Eyal

The company was established in 1967 as an IT company, which focuses on the development and implementation of information systems. The company provides computer services to the municipal sector and its related bodies, including ongoing support with respect to the planning, construction and operating of information systems. In February 2014 51% of the control of the company was sold to "One1" Company.

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Performances [MOFA'IM BAAM] The performances company FLA was founded by the Federation of Local Authorities in Israel in 2014, in order to coordinate artists’ performances throughout the year, including Israel's Independence Day. By creating organized purchasing power, the company wishes to lower the costs of performances significantly and to prevent additional payments to agents, representatives and mediating companies.The company’s goal is to act out of a consumer social agenda. The performance prices will be published transparently and uniformly, the profits will be dedicated for the benefit of the authorities, and the cost cuts will enable to purchase good performances, for disadvantaged authorities as well.

Subsidiaries

חברת ההפקות של מרכז השלטו� המקומי

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Joint InterfacesIsrael's State Lottery (Mifal Ha'payis)activity for the benefit of social advancement in Israel Chairman: Uzi Dayan, Major-General (Res.)

Israel's State Lottery was established with the purpose of achieving public goals in education, health,welfare, art, environment etc. The proceeds of Israel's State Lottery are distributed among all localgovernments in accordance with professional criteria and are subject to ongoing supervision andcontrol. The management of Israel's State lottery acts to adapt the goals of the organization for the benefit of the Israeli society.

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The Rom Fund is a study fund for the local authorities' employees. Unlike the private funds, which are designed to increase the profits of the private elements who manage them, the Rom Fund was established for the advancement of the local authorities' employees solely. The fund's finances are managed in Bank Hapoalim, which is an operating element only, whereas the fund's decisions are made by a joint directorate of the Federation of Local Authorities in Israel and the MAOF Union [MAOF – Managers, Employees and Administrators].

The fund's management is in the hands of theemployees' and employers' representatives, whichsaves many expenses and ensures that the employeeswill enjoy a higher monetary credit in their privateaccount.This way, the fund maintains low management fees,compared with the high management fees privateinvestment houses and insurance firms usually collect.

Rom Fund–

Joint Interfaces

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'Yours' Club was established in 2012 as a joint initiative of the Federation of Local Authorities and the Histadrut, for the welfare of the Israeli local authorities' employees. The club, which includes about 80,000 members, is new, and is planned to become one of the largest consumers' clubs in Israel. The club acts out of the understanding that investing in the authorities' employees would yield productive work efficient service for the residents. Therefore, 'Yours' Club offers the local authorities' members and their heads significant discounts and attractive benefits in a variety of fields including culture, leisure and consumerism. Recently a new 'Yours' Club App has been launched, and it enables each authority employee to stay updated on the most attractive sales and offers, just a click away.

'Yours' Club

Joint Interfaces

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Bank Dexia Dexia Bank Israel (formerly known as the Local Municipality Treasure Bank) provides credit to the public sector. The bank is a subsidiary of the Belgian- French Finance and Banking Group Dexia which controls the Bank.

Since its establishment in 1953 the Local Municipality Treasure Bank has served as a channel for the transfer of funds from the Government of Israel to the local authorities. As such, the bank received transfers and deposits from the government, provided credit to the local authorities and benefited from special fees and low interests.

In the beginning of 2001 the bank was privatized and sold to the European Dexia Group. As of today Dexia Israel is a public company whose shares are traded in the Tel Aviv Stock Exchange, with the Federation of Local Authorities holding 17% of the voting rights in the general meeting and 33% of the rights to appoint directors.

Joint Interfaces

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Increasing the balance grants and development grants – most of the local authorities in Israel are in a constant budget deficit. One of the main goals of the Federation of Local Authorities in Israel is to strengthen and increase the balance and development grants, which support the disadvantaged authorities. Through collaboration with the government ministries, the balance grants have increased to NIS 2.95b in 2015, and NIS 3.1b in 2016. Whereas development grants were set at NIS 310m in 2015 and NIS 360min 2016, which is a significant accomplishment compared with previous years.

Central projects

A second teacher's assistant – after constant contacts with the Ministry of Education and the Ministry of Finance, the Federation of Local Authorities in Israel has succeeded in leading the second teacher's assistant reform in preschools. As part of the reform, disadvantaged authorities will receive complete government funding for a second teacher's assistant, while authorities of a higher socioeconomic ranking will receive government funding of about 80% of the reform's cost. This step allows reducing the gaps between different local authorities, but not at the expense of the residents.

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Crowded classrooms – following the steps led by the Federation of Local Authorities in Israel and parents' organizations, the Israeli government has allocated, for the first time, funding to treat the problem of crowded classrooms in the 2015-6 budget. Moreover, the Ministry of Education has announced a multi-year program to reduce the number of students in a classroom to 32-34, and to add an education team to about 1,000 classrooms around Israel. The crowded classrooms issue exists all over Israel, and it requires a long term solution and establishing a physical infrastructure along with pedagogical tools.

Education institutions security – the complex security issue in Israel highlights in all the more forcefully the need to resolve the issue of security in educational institutions. The Federation of Local Authorities in Israel works together with the Ministry of Public Security, the Ministry of Finance and the Ministry of Education, in order to allocate funding for the permanent security of preschools, as part of the continuous security budget. During the last terror wave, the Federation of Local Authorities in Israel has collaborated with the Ministry of Finance and has obtained funding for this purpose until the end of 2015.

Central projects

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A program for the advancement of the Arab sector – for the first time in many years, thegovernment, led by the Office of the Prime Minister and the Ministry for Social Equality togetherwith the Federation of Local Authorities in Israel and Arab, Druse, Circassian and Bedouin localauthorities forum, has approved a five-year plan for the development of the Arab sector withfunding of billions of NIS. The program involves all of the aspects of life in Israel while concentrating on education, infrastructure, transportation, industry and commerce, employment, internal security, housing, culture, higher education, tourism, sports, community services, health, business and emergency preparations. The Federation of Local Authorities, together with the Arab Mayors Forum, was an active partner in making the decision, and has appointed a supporting team for the program, which would follow its development, be in contact with the government and make sure the program is actively implemented.

A program for the advancement of periphery and developing towns – currently the Federation of Local Authorities in Israel, together with the Periphery Forum, is working hard on preparing a comprehensive five year plan for the improvement of the quality of life in the periphery in a variety of fields, including transportation, employment, infrastructure, health and more.

Central projects