Priority funding for 83 infrastructure projects worth P674 million under Supplemental Budget 2 was deferred after the Cebu City Council decided to include the outlays in next year’s budget instead.
The projects, which Mayor Michael Rama earlier said were “urgent” needs, would have to wait for the 2012 budget, said Councilor Margot Osmeña, head of Cebu City Council’s budget committee.
These projects include drainage improvement, road concreting, Carbon Unit II construction, and barangay infrastructure.
Osmeña said the council agreed during a caucus Thursday afternoon to only approve the P473 million appropriation proposed for maintenance and other operating expenses (MOOE). This covers the payment for salaries of job order employees.
Funding has been identified for the MOOE in the proposed SB 2.
“The council will only approve (during its session on Wednesday) the necessary items in SB 2. Appropriation for salaries is not only a priority but it will have to be approved,” she said.
Osmeña said it would be difficult for the Council to approve the proposed infrastructure projects when no fund source for its implementation was identified.
“We are not in favor of availing of a bank loan when these projects could be included in the 2012 general budget,” said Vice Mayor Joy Augustus Young.
Young said that with this development, the city government need not pre-terminate its P165 million time deposit with the Philippine Veteran’s Bank.
The time deposit is earning the city 6 percent interest per year.
Mayor Rama said he proposed a P1.147 billion SB 2 to fund “urgent” expenses for the city government that were not in the regular budget.
Yesterday he asked former city treasurer Ofelia Oliva “to provide him assistance on financial issues.”
“There are things that we need to input and in due time we will also be looking at the 2012 annual budget,” said Rama.
He said Oliva’s function would be limited to advising him on budget management and that Oliva can’t issue directives to staff.
Acting city treasurer Tessie Camarillo would continue to occupy her post.
He said he would have wanted to have Oliva as a consultant but Oliva was still under the Finance Department and couldn’t be a consultant of the mayor.
Young said he wouldn’t mind having Oliva help out in City Hall but he was worried about “accountability issues.
“She (Oliva) can always advise, but the accountability will belong to whom?” Young asked.