Cebu City Hall still P4.2 billion short of revenue target

HALF-WAY into the year, the Cebu City Treasurer’s office has so far collected P2.2 billion or 34 percent of its P6.4 billion collection target.
But Acting City Treasurer Emma Villarete is confident they would still collect most if not all of the P4.2 billion balance until year-end, to fund the city’s 5.4 billion budget and other obligations to be included in supplemental appropriations.
Due to the city’s financial limitation, CTO will have to prioritize payment of the city’s overdue obligations using available funds.
To date, they haven’t set aside funds for the distribution of the third quarter senior citizen assistance.
CTO records dated June 30 showed that their biggest collection so far came from the payment of business taxes worth P684.8 million or 66 percent of this year’s collection target of P1 billion.
Real Property Tax (RPT) collection also reached P202.4 million which is 36 percent of the actual collection target of P560 million.
The city also collected P546.4 million or 49 percent of its Internal Revenue Allotment (IRA) share of P1.1 billion.
The city is way behind in its P1.4 billion target collection from sales of government lots.
CTO collected P333.2 million in payments by Filinvest Land Inc. and SM Prime Holdings for lots they acquired at the South Road Properties.
Zero collections were made from the city’s share of its joint venture agreement with Filinvest and from the auction of real properties.
“Although we committed to realize as far as the local sources is concerned, other income sources is already beyond our control like the sales of government assets,” Villarete said.
Villarete said CTO already sent a P38 million billing to Filinvest as balance of the city’s 2012 JV share. Filinvest handed a P50 million initial payment to CTO on December 2012.
They also sent a notice asking Filinvest to update the city of sales made during the year so they could also furnish the real estate development firm with an updated JV billing.
The city government is targeting a P1 billion JV share this year.
Villarete is also hopeful that her office would start in September the disposal of 200 properties forfeited by the city because of its tax delinquencies. /Chief of Reporters Doris C. Bongcac