EFFECTIVE this month, Cebu City’s mayor, vice mayor, councilors and some 6,000 employees will get a 25-percent salary increase, which City Hall will implement after the City Council approves today the second supplementary budget (SB).

The salary increase will cost the City Government another P98 million this year. The amount is included in the proposed P483.8-million SB 2.

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It also includes the P78-million funding for the financial aid to the City’s 32,000 senior citizens, P16 million for persons with disabilities (PWDs) and P6-million burial


A total of P30 million was also allocated for the City’s medical assistance program, with the Cebu City Medical Center (CCMC), Vicente Sotto Memorial Medical Center

(VSMMC) and “Tambal ni Mayor” getting P10 million each.

As promised by the mayor to the barangay captiains, some P150 million worth of projects will also be funded in SB 2.

“This is a socially-oriented budget. We have forgotten some of the social welfare programs and we are funding them now and we hope this will continue. We have funding for medical assistance programs but it only totals P3 million for CCMC and VSMMC. Now it’s P10 million,” City Administrator Francisco Fernandez said.

For the first time, the City will give P2,000 each to every PWD residing in the city starting this year. Like last year, senior citizens will get P4,000 each.

SB 2 also includes P19.7 million for the honorarium increase of 1,600 barangay tanods, 115 day care teachers and 1,600 Lupon Tagapa-mayapa members from January to April.

Fernandez said once the budget is approved, the City will implement the increase of all regular and casual employees of the City.

New year, new rate

From P34,939, Mayor Tomas Osmeña’s mayor’s salary will increase to P45,941, while Vice Mayor Michael Rama’s pay will go up to P39,026 from P29,474.

The councilors’ salary will also increase from P28,340 to P36,923. The increase is retroactive Jan. 1 this year.

“Under the budget circular, the salary increase will take effect on Jan. 1, 2010. So as soon as the budget is approved, all employees, including the mayor, will collect their salary differential,” said lawyer Ralph Sevilla, head of the Human Resource Development Office (HRDO).

Local Budget Circular 2009-92 is the implementing guidelines of the first tranche of the salary increase for government officials and employees approved by President Arroyo in June last year.

It prescribes a 100-percent salary increase spread over a four-year period, subject to the availability of funds.

The increase covers all casual and regular employees of the city, which Sevilla said numbers to around 6,000. Consultants and job order employees are not covered by

the increase.

During the budget hearing yesterday, City Treasurer Ofelia Oliva said the identified fund sources for the budget are P272.57 million from the General Fund proper, and P193.98 million from the special accounts of income-generating offices of the City.

City Councilor Jose Daluz III, chairman of the City Council committee on budget and finance, said there will be no changes in the proposed budget.

“It’s good as approved because most of the items are obligations we have to pay, such as the P98 million for the salary increase mandated by the National Government. We will approve the budget tomorrow,” he said yesterday.