Cebu City Council cuts budget from P10.5B to P5.8B

INSTEAD of a P10.5 billion budget next year, the Cebu City Council asked Mayor Michael Rama to prioritize items for funding within a P5.8 billion budget.

Councilor Margot Osmeña, chairperson of the council’s budget committee, said new lot sales at the South Road Properties (SRP) estimated to be valued at P5.8 billion won’t count as a revenue source unless the sales are finalized and paid for.

“We just have to be practical,” she said in yesterday’s budget hearing.

She said the P5.8 billion budget is also dependent on whether the City Treasurer’s Office can meet its projected revenue targets this year.

City Administrator and concurrent City Planning Officer Jose Marie Poblete, said there is no point in proceeding with the budget hearing if the council already decided on a P5 billion budget for next year.

Realizable income

“Unya na lang unta mi ninyo pahibaw-on gud nga dili ninyo ihatag (You just inform us later that you won’t give it to us).  What’s the point of going through the budget hearing unya inyo na mi sultihan daan (and you tell us this now),” he said.

Osmeña said the council wanted to be “candid” with the executive department.

“But we are not saying that the P10.5 billion budget cannot be done.  We are only approving a budget that is based on realizable income,” she said.

The City Treasurer’s Office has so far collected P5.2 billion and it still has to generate P1.2 billion of its collection target.

Acting City Treasurer Diwa Cuevas said her office will raise P988 million more before the year ends.

Wish list

But the city also has P962.6 million in payables.

Additional revenue sources include sales of block 27 at the North Reclamation Area worth P175 million and a property located at the Waterfront Hotel in Lahug worth P80 million.

Also identified as a revenue source is the auction of real properties forfeited in the city’s favor due to tax delinquencies at P50 million.

But to date, the two lots for sale are still being advertised in the newspapers to interested buyers.

Councilor Noel Wenceslao said if new funds are made available from the SRP lot sales, the executive department could always ask for the passage of a supplemental budget next year to fund other items in their “wish list.”

Other important concerns

Osmeña said the city’s funding limitations may curtail the allocation of P1,000 monthly cash aid promised by Mayor Michael Rama to the city’s senior citizens next year.

“The executive and the legislative departments will have to sit down. The bigger problem of the city is not just the seniors. There also also other more important concerns,” Councilor Nida Cabrera said.

Jose Daluz III, Rama’s executive assistant, said he will discuss the council’s concern with the Senior Citizens Council (SCC).

Daluz said he is amenable to adopting a scheme in which part of the P12,000 cash aid can be converted to services or material assistance to cut down on costs. /Doris C. Bongcac, Chief of Reporters