CITY Hall's 5,000 employees will soon get a bonus equivalent to a one-month salary.
The executive department earned yesterday P1.6 billion from the bidding of two South Road Properties (SRP) lots with a combined area of 45.2 hectares.
City Treasurer Diwa Cuevas said that the local finance committee will be proposing a P250-million first supplemental budget (SB1) this year.
The amount is higher than the P100-million SB 1 earlier planned.
Of the amount, Cuevas said that P78 million will cover the one-month productivity enhancement incentive (PEI) of the employees while P50 million will be used for asphalting.
The remaining amount will cover the payment of the City's prior years’ obligations.
Cuevas said they can use part of the P1.6 billion income generated during the bidding of the two SRP lots because the City is in excess of its targeted earnings for the property.
Bid
The P1.6 billion is the bid security equivalent to 10 percent of the lot's total bid price.
To recall, the City only expected to generate P9.15 billion for the sale of Lot 8, covering 26 hectares (P5.267 billion) and Lot 7 and Lot 17 with a consolidated area of 19.2 hectares (P3.847 billion).
Of the total amount, P4.5 billion is the City's estimated income for the sale of SRP lots this year, since buyers are required to make a 50-percent down payment immediately upon the awarding of contract.
The P4.5 billion already forms part of this year’s P13.4 billion annual budget.
But during the bidding yesterday, the consortium of SM Prime Holdings Inc. and Ayala Land-Cebu Holdings Inc. placed the highest bid of P10.009 billion for the 26 hectares.The bid security of which is more than P1 billion.
Filinvest Land Inc., on the other hand, placed the highest bid for the 19.2 hectares amounting to P6.758 billion. The bid security amounts to more than P675 million.
Exceeded
This means that the total price for the lot is P16.767 billion and 50 percent of which is P8.383 billion.
"We already exceeded because we only identified P4.5 billion in the annual budget as income for the sale of the SRP lots," said Cuevas.
The treasurer said that the local finance committee will meet in the coming days for the preparation of the SB 1.
She said they really want to give the one-month PEI to the City employees, considering that the city is a highly urbanized city.
She added that the Cebu Provincial Government also gave the same PEI to their employees.
Granting of PEI to government employees is a provision under Executive Order (EO) 181 that President Benigno Aquino III signed last May.
The EO states that the incentive will be equivalent to either P5,000 or one-month basic salary of government employees.
The City Council, in its June 24 session, passed a resolution requesting the City Treasurer's Office to facilitate the release of the PEI to the employees as soon as possible.