Bnei Brak Mayor Rejects Claims of Financial Collapse: “The City Is Undergoing an Efficiency Process”
Bnei Brak Mayor Chanoch Zeibert is pushing back against reports portraying the city as being in financial collapse, saying that a combination of wartime revenue losses, delayed property-tax collections, soaring special-education expenses and other unexpected shortfalls created a temporary budget gap that the municipality is now working to close.
In an extensive interview with B’Chadrei Chareidim ahead of Rosh Hashanah 5787, Zeibert addressed growing public concern over Bnei Brak’s finances, problems with street cleanliness and possible cuts to municipal services and employees. He insisted that the city’s difficulties are manageable and said he expects Bnei Brak to finish 2026 with a balanced budget.
“There is nothing ‘sudden’ here, and there is no conspiracy of decline. This is a controlled situation whose background needs to be understood in depth,” Zeibert said.
He explained that Bnei Brak has traditionally operated with little financial cushion, balancing revenues and expenditures each year while simultaneously funding numerous municipal projects.
“First of all, we are built around balancing the budget anew every year alongside projects, and it does not balance itself automatically. It is important to say that Bnei Brak has always lived on the edge in terms of income versus expenses, and that is how it operates — without surpluses and without large profits. We are not a wealthy city. We have the BBC complex, without which we would not be able to sustain a city of Torah, and the large sums that come in from there are what keep the city above water every year. What happened is that in 2025, we dealt with specific events that opened budget gaps for us. Everyone was saying it would be a year of growth, and accordingly, we also built economic plans and a budget that we brought for approval…”
Then came the war.
“We entered a period of war during which you cannot simply stop a budget. The city has to function, provide activities — perhaps even more than usual — and allow everything to continue flourishing. On the other hand, it caused us a loss of revenue.”
Zeibert pointed to several examples, each of which he said cost the municipality more than NIS 10 million.
“Let’s take several examples, each one of which cost the municipality more than NIS 10 million. First example: floors that the municipality rents to the Defense Ministry — everything was delayed by almost a year because of all the security events. Not only did we lose monthly rent and property tax, we also paid management fees on the property. Second example: parking. Not only did no money come in from parking throughout the security period, we have a municipal ordinance regulating parking rates that has not been signed for nearly two years because there is no interior minister in office. It was included in our revenue projections, and we prepared expenditures against it, but in practice, it did not happen.”
Zeibert said the slowdown in construction and commercial real estate added to the municipality’s problems.
“Third example: betterment levies and commercial property tax, where there has been a slowdown in the country over the past year and a half. There isn’t much new commercial construction, occupancy is delayed, companies prefer to leave floors vacant so they don’t have to pay property tax and management fees. In wealthy cities, this is felt less. In Bnei Brak, it was another burden. Should I continue?”
Asked to elaborate, Zeibert pointed to one of the city’s largest growing expenses: special education and individualized assistance.
“Okay. There is the major issue of education and personal assistance. Today, many people choose to take an individual package instead of a special-education institution, and that creates an enormous burden. About two-thirds of the cost is paid by the Education Ministry and approximately one-third by the municipality, which reaches sums of NIS 15 million to NIS 20 million a year, and sometimes even more. These things are growing at a dizzying pace that you are not prepared for.”
The mayor said Bnei Brak entered 2026 having already instituted efficiencies based on lessons learned from the previous year, only to encounter another problem: delays in collecting municipal property taxes, known as arnona.
“In 2026, despite the efficiencies we introduced in many areas as lessons learned from the 2025 deficit, we got stuck with a cash-flow problem involving property-tax collection after the Interior Ministry published the discount table late this year, and all collections were delayed. The money will eventually come in, but a cash-flow problem is never healthy, especially when you are trying to stabilize such a large system — this is the sixth-largest city in Israel.”
Zeibert said the late approval of arnona discount schedules forced the municipality to begin collecting payments approximately three months behind schedule. At the same time, Bnei Brak was carrying out major construction and infrastructure projects.
He said another source of anticipated revenue disappeared when bidders failed to participate in tenders issued by the city’s economic development company amid the construction slowdown.
“There were many tenders from the economic company that, because of the entire construction freeze, people simply did not bid on. They did not bid — money did not come in, and that caused a deficit because no one anticipated that people would not bid on the tenders.”
Taken together, Zeibert said, the delayed collections, infrastructure spending and rapidly rising education expenses produced an unusually pronounced gap during the opening quarters of 2026.
“There are always gaps at the beginning of a year, but this time it was felt much more.”
Asked why the municipality’s financial problems became public in a manner that generated widespread concern, Zeibert said some Interior Ministry officials had told the city that the information had not been intended for publication.
“There were officials in the Interior Ministry who told us they did not want to publicize it, but the information leaked out,” he said, declining to elaborate.
Zeibert nevertheless insisted that the city has a clear plan for addressing the shortfall.
“Certainly. We know exactly how to identify the gap, and we expect to present all the stages and solutions to the Interior Ministry and local government authorities. We have major projects in the pipeline, including a project that will bring in significant sums and that the public will hear about very soon, which is now in its final stages. Parking enforcement is returning, tenders are being published, and money is beginning to come in, alongside efficiency measures that we are implementing and constantly reviewing. Everything is being managed under supervision, and very soon we will present the precise figures that will prove that things are balancing out.”
Zeibert said municipal officials have already presented an initial recovery plan to the Interior Ministry and expect to return within two weeks with a more comprehensive proposal.
“I say and declare constantly that, with Hashem’s help, we will finish 2026 with a balanced budget, without exceeding what is permitted. The year 2027 will also be a balanced year, with Hashem’s help, and we will remain vigilant. Again, assuming there are no significant surprises.”
Beyond the budget, Zeibert addressed another issue that has generated considerable frustration among Bnei Brak residents: declining cleanliness on city streets.
The mayor acknowledged that residents had legitimate complaints and said he was personally familiar with conditions throughout the city.
“Let’s tell the truth about this as well. I walk around all the time, and I know exactly what is happening. We are all scarred from the past. About two years ago, at the beginning of 2025, we ran a sanitation program that required an additional NIS 20 million in the budget. We approved the overage, and in the end, we exceeded that by another NIS 17 million beyond the program. When half of 2026 had passed, it became clear that we were exceeding the budget by another NIS 10 million. I understood that there was no way to allow gaps like these to open and that we could not continue this way.”
According to Zeibert, tighter municipal oversight revealed that some private sanitation contractors were being paid for work they were not actually completing.
“We discovered that the contracting companies were not always doing the work properly. Our inspections proved it unequivocally: a company takes money but does not carry out all the collections. For example, a company is supposed to empty four underground garbage containers at a particular location; in practice, they empty only one but report four. Or they bring one truck and photograph it in several locations. Contractors who did things like this created a situation in which the city suffered. I decided to get deeply involved and demand strict oversight of the companies, with GPS and close supervision.”
Zeibert acknowledged that the crackdown angered the sanitation contractors and initially contributed to visible problems on the streets.
“That’s correct. The companies flexed their muscles because suddenly they were being hit in the pocket, and people come and complain — rightfully so — when they see problems in the streets. But that is part of my job, and I am strong enough to do it,” Zeibert said.
“The alternative was to look the other way and continue deepening the deficit because of this. It is like medical treatment — sometimes it hurts, but you have to do it. Baruch Hashem, we can already see improvement in the city compared to what it was. We have resumed additional garbage collections, the situation is steadily improving, and things on the ground are returning to normal. I hope that within a period of time the city will once again be clean, but without it costing the residents and the municipality many times more.”
Zeibert also sought to reassure Bnei Brak’s municipal employees that they would not be made to bear the brunt of the city’s cost-cutting effort.
“Under no circumstances will we allow only the employees to carry the burden. We are holding lengthy working meetings in order to minimize the impact on employees,” Zeibert said.
He argued that confronting excessive spending by outside sanitation companies was itself necessary to protect city employees and essential municipal services.
“The truth is that if I had not put things in order with the sanitation contractors, the money ultimately would have had to come from somewhere else. Either culture would have been harmed, or education, or welfare, or the employees would have been hurt much more.”
Zeibert revealed that he had received a firm demand to dismiss a number of municipal workers but resisted doing so.
“I received an unequivocal demand to fire a number of municipal employees, but the employees are dear to my heart and I did not want to fire a single worker. So we decided to carry out a very small efficiency measure regarding the employees and leave the workers at their posts, out of respect for their work.”
“We appreciate the effort and dedication of our employees, but we have a short blanket. We are performing the surgery that is necessary to protect the home, and with Hashem’s help, we will get through this challenging period with complete success.”
{Matzav.com}
