The small city of Tirat Carmel has acquired an accumulated deficit of NIS 6.78 million and owes some NIS 14 million to suppliers in debts, according to the city's recently released annual report for 2008, reports www.mynet.co.il. And spokespeople for current Mayor Arieh Tal are blaming previous mayor Arieh Farjon, who served in office from 2003 to 2008, for the large debts. A municipal spokesman said that when Tal completed a previous stint as mayor in 2003, he received an Interior Ministry prize for proper budgetary management, "but after one term in office by Farjon, the city finds itself in a budgetary deficit and with heavy debts." Farjon responded that Tal was trying to besmirch his good name and was making unjustified allegations, "but the facts speak for themselves." He said he had received a letter from the Interior Ministry stating that during his term the budget had been balanced as a result of good management by the city and its treasurer.