Cebu City Mayor Michael Rama yesterday presented to the City Council a proposed 2015 “people’s budget” of P18.9 billion, the biggest ever in the city’s history.
The proposed 2015 budget is three times bigger than this year’s approved budget of P5.9 billion.
Rama’s “people’s budget” proposal was transmitted to the City Council secretariat shortly before 5 p.m. yesterday.
The 1991 Local Government Code requires the executive department to submit it’s budget proposals on or before October 16 of every year.
“The twin catastrophes that visited us last year also highlighted the importance of bringing together people to participate in a multi-sectoral, concensus-building, grassroots (bottom-up) budgeting that is balanced, adequate, responsive, effective,” Rama said in his budget message to the opposition-dominated City Council.
Rama is confident that City Hall would be able to raise the money it needs to fund his “People’s Budget” through:
* Enhanced tax collection via a vigorous tax information campaign and by tapping the barangays and the creation of several revenue districts;
* Intensified tax-mapping efforts;
* Promoting the city’s asset capabilities particularly the SRP to local and foreign investors in order to attract employment opportunities;
As of Sept. 30, the City Treasurer’s Office has yet to meet its collection target which is meant to fund this year’s budget.
The CTO has so far raised only P3.9 billion or P2 billion short of revenues needed to fund the year’s budget.
Still, OIC City Treasurer Diwa Cuevas is confident that they could still raise the P2 billion before the year ends.
To fund the proposed 2015 budget, City Hall is expecting to raise P10.8 billion from the sale of government property, of which P9 billion would come from the South Road Properties (SRP) while P3.1 billion would come from domestic borrowings.
City Hall wants to allocate P5 billion to the Department of Engineering and Public Works (DEPW) — the biggest chunk of the proposed budget – of which P114 million would be earmarked for drainage maintenance to address the city’s flooding problem.
Foreign debt servicing would get the second biggest share at P3 billion.
The new norm of heavier floods and typhoons also prompted the mayor to push for drainage and river management. He wants the Reduce Danger Zones (REDZ) to regain the rivers’ width and improve drainage systems.
Disaster preparedness is also a key program where the mayor pointed out that he wants more tools and technology for the local disaster office. He also wants to focus on peace and order and traffic management.
HEALTHCARE
Under the healthcare program, Rama said City Hall will focus on the construction of a new Cebu City Medical Center (CCMC). While there are “substantial pledges” locally and abroad, he said they need more funds to accelerate its construction.
Aside from the sale of government properties and domestic borrowings, the Local Finance Committee (LFC) identified other funding sources where they expect to raise over P4 billion. These are tax revenues (P2.6 billion) and general income accounts (P2.3 billion).
City Budget Officer Marietta Gumia said proceeds from domestic borrowings represent savings that would be earned after City Hall pushes with its plan to have its SRP loan denomination converted from yen to peso.
“This is estimated savings when we convert the loan to peso based on current currency valuation from 2015 to 2025,” Gumia said.
Under the current SRP loan terms, the city government pays approximately P600 million annually which already includes the interest.
Gumia said the proposed conversion needs the approval of the City Council.
“I intend to put a stop to this hemorrhage by selling parts of the SRP to pay for the SRP,” Rama said.
Councilor Margot Osmeña, chairman of the City Council budget and finance committee, has yet to see a copy of the budget proposal.
However, she said she is confused on the identification of property sales as the biggest fund source.
Osmeña said she recalls that during deliberations when the City Council discussed the then proposed resolution authorizing Mayor Rama to sell SRP lots, they were told that proceeds of the sale would be used for loan repayment, senior citizens’ assistance and scholarships among others.
Osmeña also said that it may also be premature to identify loan conversion as a funding source.
“What if dili ma-convert?” she asked.
Osmeña who is in Manila and Councilor Nendell Abella, the budget committee vice chairman, were not around when the City Development Council (CDC) convened yesterday afternoon to pass the mayor’s 2015 budget.
As a procedure, the CDC will have to review and pass the budget proposal as well as the annual investment plan (AIP) before these could be transmitted to the City Council secretariat.
The Office of the Mayor is asking for P349 million to fund its operations while offices and special bodies under it would get P2.8 billion.
The Office of the Mayor is also asking for another P1.4 billion to fund non-office or special projects and programs. Non-office expenses include funding assistance to the city’s 80 barangays amounting to P854 million.
In contrast, the legislative department will only be given a budget of P90 million. The amount is broken down as: P62 million for the councilors’ use and P27 million for the City Council secretariat./with reports from Chief of Reporters Doris C. Bongcac
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