2. 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
3. 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
4. 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
5. Socio-Economic Clusters
Number of Authorities in Each Cluster
Sectors segmentation
456789 12
Socio Economic Cluster
3
Jewish Arabic Druze Beduin
No.ofauthorities
120
18 7
56
10
*The data does not include Tefen and Ramat Hovav
34
47 14
13
23
28 25
77
3
No. of
Authorities
6. Total current budget
The 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 agreed
upon that the balance grants for 2015 will amount to NIS 2.95b and the balance
grants for 2016 will amount to NIS 3.1b.
Participation of the government in development compared to the
development expenses of the local authorities in 2014
The 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.
7. 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
8. 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.
9. The Divisions of the Local Authorities ("Masham") - Areas of Activity
The 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.
10. 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.
11. The Divisions of the Local Authorities ("Masham") - Areas of Activity
The 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.
12. The Divisions of the Local Authorities ("Masham") - Areas of Activity
Division 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 Supervisor
of 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.
13. Additional Areas of Activity
The 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.
14. Additional Areas of Activity
Forum 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.
15. 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.
16. 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
¯
17. Joint Interfaces
Israel'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 local
governments in accordance with professional criteria and are subject to ongoing supervision and
control. The management of Israel's State lottery acts to adapt the goals of the organization for the
benefit of the Israeli society.
18. 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 the
employees' and employers' representatives, which
saves many expenses and ensures that the employees
will enjoy a higher monetary credit in their private
account.
This way, the fund maintains low management fees,
compared with the high management fees private
investment houses and insurance firms usually collect.
Rom Fund–
Joint Interfaces
19. '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
20. 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
21. 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.
22. 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
23. A program for the advancement of the Arab sector – for the first time in many years, the
government, led by the Office of the Prime Minister and the Ministry for Social Equality together
with the Federation of Local Authorities in Israel and Arab, Druse, Circassian and Bedouin local
authorities forum, has approved a five-year plan for the development of the Arab sector with
funding 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
