Cebu City Hall needs to raise P4 billion from its economic enterprises, secure a P2-billion credit line and sell P1-billion worth of assets to fund the P11.8-billion annual budget proposed by Mayor Michael Rama for next year.
Vice Mayor Joy Augustus Young said the mayor’s draft 2012 budget, more than double this year’s P4.5-billion budget, was a “joke.”
So far, City Treasurer Tessie Camarillo identified only P4.728 billion from tax and other revenues, which already include the city’s Internal Revenue Allotment (IRA) share of P1 billion.
Another P74.5 million in unappropriated balance from this year’s budget is being considered for use to fund the 2012 budget.
The vice mayor met yesterday with Councilors Margot Osmeña, chairperson of the council’s budget committee; Jose Daluz; and Noel Wenceslao to discuss the mayor’s 2012 budget.
The city’s budget officer, treasurer, accountant and planning officer will be invited to an executive session tomorrow to brief the council.
Still, City Administrator Jose Marie Poblete was confident there may be no more need to avail of a bank loan if the city improves revenue efficiency. He said opening a credit line would only serve as standby fund for the city.
Mayor Rama submitted his draft 2012 budget last Friday to the City Council or two days ahead of the Oct. 16 deadline for local government units.
In his letter, Rama said the 2012 budget would “provide delivery of basic services on an increased level as compared to the same period last year.”
The budget will also “increase infrastructure and utilities support to the special economic zone at the SRP in order to attract economic investments and generate expanding employment opportunities especially to the urban poor residents.”
The biggest chunk of the mayor’s draft budget or P6.452 billion is allotted for maintenance and other operating expenses while about P4 billion is for capital outlay.
Personnel services gets an appropriation of P1.81 billion. Of the City Hall offices, the office of the mayor gets a bigger share of the 2012 budget amounting to P1.15 billion.
The appropriation would go to MOOE at P770.4 million, capital outlay at P306.4 million and PS at P75.5 million.
Rama’s appropriation for MOOE includes P300 million proposed for senior citizens cash assistance, P300 million for housing project for City Hall employees and a tax collection program of P100 million.
Capital outlay includes P100 million for the city’s scholarship program and P60 million for city-sponsored activities.
These include the following:
– the city’s assistance for the 2012 Sinulog – P22 million
– 75th Charter Day celebration – P18 million
– Christmas celebration – P10 million
– barangay activities – P8 million; and
– assistance to NGOs/POs – P2 million. The appropriation for PS includes a P10-million budget for honoraria to members of the city’s different commissions and special bodies.
To support his P11.8-billion budget for 2012, Rama said he wanted to intensify the city’s collection efforts and conduct tax mapping to cover all its economic activities.
The mayor also wants to decentralize tax collection through revenue collection districts and market the SRP to local and foreign investors. /Doris C. Bongcac, Chief of Reporters