MANILA, Philippines?City mayors in the country are shocked and saddened, but officials of towns that will benefit from a Supreme Court decision are ecstatic, with one local executive calling it ?the best Christmas gift.?

These are the contrasting reactions to the Supreme Court decision that reversed its ruling declaring unconstitutional the cityhood of 16 municipalities despite their failure to meet the P100-million annual income requirement.

?We are very much saddened and shocked with what has happened,? said Mandaluyong Mayor Benhur Abalos, president of the League of Cities of the Philippines (LCP).

The ruling will reduce the internal revenue allotment (IRA) for cities but will increase the share of the 16 former towns. The IRA is the share of provinces, cities, municipalities and barangays from national tax collections.

Before the court decision, 120 cities had a 23-percent share of the IRA; 81 provinces, also 23 percent; 1,494 towns, 34 percent; and 41,900 barangays, 20 percent.

Happy

Local government executives of the new cities in Samar, Leyte and Cebu expressed gratitude to the Supreme Court.

?We are all happy. It?s the best Christmas gift given to us by the justices of the Supreme Court,? said Vice Mayor Manuel Van Torevillas of Catbalogan, Samar.

City administrator Deogracias Pernetiz of Baybay, Leyte, said he felt ecstatic upon learning about the Supreme Court decision.

Abalos, a lawyer, said the decision raised serious legal questions and could set a precedent that would affect the country?s jurisprudence.

Highly unusual

Abalos said it was highly unusual for the high court to reverse itself after it denied two motions for considerations filed by the 16 towns.

Abalos pointed out that after the Supreme Court issued its Nov. 18 decision declaring the cityhood of the towns unconstitutional, it denied the separate appeals on March 31 and in April this year.

The high court also issued a May 21 order that the decision be officially registered in its records and in denying the first appeal, stated that it would not entertain further appeals, the LCP head added.

?That is why this came as such a surprise to us because a decision which we assumed has become final and executory was not only revived but reversed,? Abalos said.

Grounds cited by court

On Tuesday, the tribunal, voting 6-4, set aside its Nov. 18 ruling and its decision denying the motions for reconsideration because these did not reflect the majority of the tribunal members.

All 16 municipalities had been seeking cityhood even before the passage of Republic Act No. 9009 in June 2001, according to the high court. The law amended the Local Government Code to raise the income requirement for towns to become cities from P20 million to P100 million.

?Respondent municipalities and the 33 other cities, which had already been elevated to city status, were all found to be qualified under the old Section 450 of the Local Government Code of 1991 during the 11th Congress,? the Supreme Court said.

Mieta Baris, planning and development officer of Borongan, Eastern Samar, said the people of Borongan were happy with the court decision.

She expressed hope that the Department of Budget and Management would reinstate Borongan?s P25-million monthly IRA, which was reduced to P7.7 million when the Supreme Court stripped Borongan of its cityhood status.

Prayers answered

?This is a huge gift for the people of Bogo from our patron saint Vincent Ferrer because we have been praying and offering Masses for a favorable Supreme Court ruling. It also pays to have a good lawyer (referring to Estelito Mendoza),? said Bogo Mayor Celestino Martinez Jr.

Aside from Catbalogan, Bogo, Baybay and Borongan, the other towns that had sought exemption from cityhood requirements were Carcar and Naga in Cebu, Guihulngan in Negros Oriental, Mati in Davao Oriental, Cabadbaran in Agusan del Norte, Bayugan in Agusan del Sur, Tandag in Surigao del Sur, Lamitan in Basilan, Tayabas in Quezon Tabuk in Kalinga, Batac in Ilocos Norte and El Salvador in Misamis Oriental.

Abalos said the LCP would hold an emergency meeting despite the holidays and would appeal the court ruling.

He said the decision would result in budgetary problems for most of the LCP?s 120 member-cities, which will implement a new budget next month, because their IRA would be reduced substantially because of the new cities.

For example, Puerto Princesa City in Palawan would get only a P2-million increase instead of P180 million, according to Abalos.

City mayors in Pangasinan expressed surprise over the ?suddenness? of the Supreme Court decision.

?I was wondering why the Supreme Court still heard the motion for reconsideration despite its earlier decision,? said Urdaneta City Mayor Amadeo Perez Jr.

He said it was seldom that the Supreme Court would reverse itself.

With the new cities, Urdaneta will lose about P27 million a year from its IRA share, said its mayor, Alipio Fernandez Jr., a former LCP president.

?We now have P257 million [IRA] a year. Other cities have bigger IRAs. We have about the same IRA with Dagupan, San Carlos and Alaminos cities,? Fernandez said.

While he respects the Supreme Court ruling, Senate Minority Leader Aquilino Pimentel Jr. said he was wondering why the high court acted on a second motion when its rules only allowed to entertain one motion of reconsideration.

?What bothers me is there was a previous decision invalidating the cityhood of the 16 municipalities. There was a motion [for reconsideration] and it was denied,? Pimentel told reporters.

He said that according to the rules of the high court, it could only entertain one motion for reconsideration.

?So I am just wondering why this was allowed,? Pimentel added.

Anyway, the high court has ?spoken? and he doesn?t not know what else can be done, he said. With reports from Gabriel Cardinoza, Inquirer Northern Luzon; and Christine O. Avendaño in Manila