Friday, October 24, 2008 City seeks P2.62B budget By Rene H. Martel Sun.Star Staff Reporter
CEBU City expects to spend in 2009 around P2.62 billion, which is P110 million more than this year’s annual budget of P2.51 billion.
Of the proposed amount, P134.835 million is for special accounts, while the general fund proper is P2.497 billion, which includes P323.285 million as subsidy to the special accounts.
For fund sources the executive department identified this year’s estimated revenue of P2.631 billion, which includes the City Government’s Internal Revenue Allotment (IRA) share of P880.9 million and local taxes amounting to P771.15 million.
According to a draft prepared by City Budget Officer Nelfa Briones, the bulk of expenditures is for general public services with P887.23 million; followed by debt servicing, P663.441 million; and health, nutrition and population control, P256.873 million.
General public services include the salaries of around 5,000 City Hall employees.
Compared to this year’s P917.69-million budget, the 2009 general public services appropriation is smaller. The projected spending for nutrition, health and population is higher than this year’s P255.88 million.
Unchanged
Debt servicing for next year was given the same budget as this year’s.
In all, compared to the 2008 appropriation, a larger budget was set aside for health, nutrition and population control; housing and community development; and the local development fund.
Meanwhile, the budget for general public services; education, culture and sports; social security, social services and welfare; and economic services decreased.
During the City Council session last Wednesday, Acting Vice Mayor Hilario Davide III and the councilors scheduled a series of budget hearings with the department heads next week.
The council also approved the release of the second half of the City officials’ and employees’ year-end bonus and cash gift not earlier than Nov. 3 and not later than Nov. 15.
In an interview, City Councilor Jose Daluz III, council budget and finance committee chairman, said the budget hearings will help clarify the source of funds for the 2009 budget.
The department heads will also have to explain and defend the budget each submitted.
Daluz said he initially learned that the City only has a fund source of around P1.8 billion.
But City Administrator Francisco Fernandez said local government units are not allowed by the Department of Budget and Management to pass a budget bigger than the estimated fund source.
Infra for SRP
The fund source includes projected revenues from the City Traffic Operations Management, Cebu City Medical Center and the Division for the Welfare of the Urban Poor.
The executive department hopes to “increase infrastructure and utilities support to the special economic zone at the SRP (South Road Properties) in order to attract economic investments and generate expanding employment opportunities, especially to the urban poor residents.”
So far, two investors have made offers that were considered acceptable to the City Government.
Among others, realty corporation Filinvest Land Inc. proposed a joint venture with the City to develop a 50-hectare portion of the SRP, including an outright purchase of 10 hectares worth P2 billion.
SM Prime Holdings Inc., on the other hand, wants to buy a 20-hectare lot for a mixed-use development project, particularly the construction of two information technology towers.
