EVEN with loans amounting to some P708 million, Mandaue City Mayor Thadeo Ouano assured that there will be no increase in taxes next year.
There will only be an intensified collection of taxes, he said.
In an interview, he said that knowing Mandauehanons to be conservative, he appealed for constituents to cooperate by paying the correct taxes promptly.
The City has been able to avail itself of loans because of the City’s capability to pay and its “good track record” with banks, the mayor added.
He said that when the public market was gutted down in 2002, money from insurance was used to pay for the loan used to build the market.
The Veterans Bank, Land Bank of the Philippines and the Development Bank of the Philippines are still offering loan packages to the City.
The mayor also assured that the City will not go overboard with loans, since he will see to it that the borrowings should only be within the City’s limits and that revenues will be enough to meet its obligations.
The City’s loans have tripled in just one year.
The loans, which grew from P231.72 million to P708 million, were mostly for the construction of the new public market and the implementation of the solid waste management program and other projects.
In the draft annual budget for 2007, at least P100 million is set aside for loan amortizations.
The amount is around one-sixth of the P633-million annual budget.
Ouano also said that he will pursue the P20-million loan for the City’s expenses in preparation for the Association of Southeast Asian Nations Summit in December.
These include the removal of existing streetlights along six major roads (P4.5 million), the landscaping of the ceremonial routes (P3.5 million), rehabilitation of the sidewalks along four major streets (P4.38 million) and the spouses’ activity program (P1 million).
The list also provides for P560,000 for the repair and replacement of the curtains of the city’s five buses, P600,000 for the purchase of gift items, P500,000 for the purchase of paint and P519,900 for the costumes of the choir and dancers.
The mayor cited the importance of preparations, saying, “The eyes of the world are on us.” (AAG)
