Gerome M. Dalipe
Sun.Star Staff Reporter

OFFICIALS of Argao town yesterday expressed concern over the decision by a government agency to downgrade the status of their municipality from second-class to third-class.

The demotion of the town’s status will stall pending salary increases for town employees, officials said.

Mayor Edsel Galeos, however, said the town’s Internal Revenue Allotment (IRA) share will be retained.

Cebu Provincial Board Member Wilfredo Caminero, who is also a former Argao mayor, said basic services will be the first casualty of the town’s demotion.

Allocation for personal services such as salaries of employees might also be slashed, Caminero said.

In a memo circular, Bureau of Local Government Finance of the Department of Budget and Management (DBM) upgraded 14 towns in Cebu to a higher status. Argao
town, however, was downgraded from a second-class municipality to third-class.

Reconcile figures

Admitting he was surprised by the DBM memorandum, Caminero, however, allayed apprehension that the memo would have a huge effect on operations of Argao town.

Caminero said he never asked from the DBM to upgrade his town because he said having a higher status does not mean getting a larger Internal Revenue Allotment (IRA).

The board member believes the municipality just needs to reconcile some figures to convince DBM to re-examine the town’s financial statement.

During his incumbency, Caminero said Argao got an average of P60 million in tax collections and IRA share annually.

For his part, Mayor Galeos explained the town fell short of the cutoff set by DBM for them to submit their financial report.

While he was worried by the latest DBM circular, Galeos said DBM based its memo on the 2003-2007 financial report of the municipality’s IRA and local income.

Increase

Galeos admitted that Argao failed to reach the P45 million ceiling average set by DBM for a second-class municipality. Argao reported only P41.7 million of its IRA share and other income to DBM.

Galeos said that when he assumed office in June 30, 2007, their tax collections efficiency, including business and license revenues, increased by 75 percent due to the implementation of electronic payments.

Galeos also said they have a surplus this year that reached P1.3 million. He said they even allocated P79 million for the town’s operations next year.

Galeos, however, clarified he was not blaming the previous administration for the low income report of the town, which resulted in the downgrading.

While will abide by the DBM’s memo, Galeos said he will still meet with department heads and other town officials to discuss the status of Argao.

Galeos also appealed to Argao residents for understanding and asked them to continue paying their dues.

Cebu towns that have been upgraded to first-class status are Dalaguete, Liloan, Bantayan, Consolacion, Daanbantayan, Balamban and Minglanilla.

The new second-class towns include San Fernando, Tuburan Barili, Medellin and Pinamungahan.

The towns of Asturias, Carmen, Dumanjug and Sibonga, Badian, Compostela, San Francisco and Tabogon are now third class-municipalities.

The towns of Moalboal, Oslob, Poro, Sogod, Tabuelan, Alegria, Aloguinsan, Catmon, Madridejos, Santa Fe and Santander have been upgraded to fourth class towns.

Meanwhile, the towns of Pilar, Samboan, Tudela, Boljoon, Ginatilan, Malabuyoc, Alcantara and Alcoy are still classified as fifth class municipalities.

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(December 1, 2008 issue)
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