The Cebu City Council is set to reduce by P2.79 billion the already slimmed down P8.9 billion budget proposed by the mayor for next year.
Critics of suspended mayor Michael Rama wil continue to object to using the sales proceeds from the first installment paid by the winning bidders of two lots of the South Road Properties (SRP) bidded out earlier this year.
City Councilor Margarita “Margot” Osmeña, who heads the committee on budget and finance, said they have to be “consistent” in their objection against using SRP funds.
“We will be consistent. We will only consider the regular sources,” Osmeña told reporters after the city council’s regular session yesterday.
The City Council was supposed to deliberate and pass the 2016 annual budget during its last regular session yesterday.
A special session was set instead on Friday, December 18, to work on this.
Osmeña, who requested the extra session day, said her committee hasn’t finished reviewing the proposed budget since they’re still asking for more inputs from City Hall offices and departments.
Aside from the P2.79 billion from SRP sales, next year’s annual budget would be funded by:
-tax collection (P3.7 billion)
– total non-tax revenue (P800 million)
– the city’s Internal Revenue Allotment (P1.7 billion),
– and auction of real properties (P150 million).
Items are expected to be dropped or reduced in line with Bando Osmeña-Pundok Kauswagan (BO-PK)’s objection to touching SRP lot sales pending a final ruling from the court on the legality of selling the lots by public bidding instead of an unsolicited bid as provided in an earlier city ordinance.
The P2.8 billion Supplemental Budget 1 (SB1), whose sole fund source is the excess from the P8.3 billion SRP downpayment, remained shelved by the BO-PK bloc due to a pending case filed by former prosecutor Romulo Torres in court.
In choosing which items to take out or keep, Osmeña said they took into consideration the city’s Statement of Appropriations, Obligations and Balances (SAOB).
“Some items were over-budgeted and they don’t even use it. There are also duplications in different offices, so we take one or the other,” she told reporters.
Osmeña also said if there are items that can be funded by other sources like the Special Education Fund (SEF).
Targets of scrutiny are the proposal for the city’s garbage collection and disposal program and the allocation for the city’s solo parents program.
The city’s Department of Public Services (DPS) proposed a P238.2 million outlay for garbage services next year as they try to outsource private trucks to collect barangay garbage and haul them to the private landfill in Consolacion at a rate of P1,800 per ton.
The proposed amount is twice as much as what the DPS asked for this year which was P120 million; and almost six times as much as what was approved in this year’s annual budget which was only P51 million.
“It was not justified. We could not see the justification. They had different answers to our questions,” Osmeña said of the garbage disposal budget.
Although they may not approve the entire P238.2 million proposed amount, Osmeña assured that they will be approving more than P51 million.
Osmeña said they talked with concerned departments and offices on what exactly they proposed compared to what was eventually included in the budget proposal.
“We checked with the departments, is this what you asked for? Without them (Local Finance Committee) knowing,” she said.
As for the city’s Department of Engineering and Public Works (DEPW), Osmeña said they didn’t approve the entire proposed amount since the office still has some backlog in terms of implementing projects with approved allocations.
This included the P1.5 billion budget for drainage projects this year, which City Engr. Jose Marie Poblete said will be implemented by next year.
“They themselves said they can’t do everything. Why give them more if they can’t do it?” she said.
But while some budget proposals will be reduced, the budget and finance committee has also increased some allocations like the financial assistance for senior citizens.
The executive department only proposed P720 million for the P12,000 yearly assistance to 60,000 senior citizens, even if they found out that there are 7,300 more seniors in the waiting list.
So from only P720 million, the council wants the amount to be increased to P807.6 million for 67,300 senior citizens.
After the council approves the final 2016 annual budget by Friday, it will be submitted to the office of acting mayor Edgardo Labella who will either sign or partially or completely veto it before the year ends.