FORMER Cebu City mayor Raymond Alvin Garcia has refuted Mayor Nestor Archival’s announcement that City Hall is facing a projected P2-P3 billion budget deficit, insisting he left a financially healthy city with “double-digit” billions of pesos in bank deposits.
In a phone interview on Thursday, July 3, 2025, Garcia challenged the new administration to present “concrete numbers” to substantiate its deficit projection.
“Double digit ang atong cash deposit, unya it’s on record. Moingon siya nga dili ta ka-afford og bayad sa atong (Our cash deposit is in the double digits, and it’s on record. For him to say we cannot afford to pay our) job order (JO) workers — I think it is an inaccurate statement,” he said.
Last Tuesday, July 1, Archival told reporters that an initial review by the City Treasurer’s Office showed a possible shortfall of P2 billion to P3 billion if the previous administration’s spending pattern continued until year-end.
The mayor said the projected deficit prompted him to freeze the renewal of JO and casual appointments, arguing that the City’s payroll is already under strain because of what he called an oversized workforce.
Garcia countered that JO expenses “don’t even reach P100 million” and therefore cannot justify the halt in contract renewals.
While denying that his 2024-2025 term ended in the red, Garcia acknowledged that long-standing payables — some dating back to 2008 — remain unpaid and could distort the current fiscal picture.
“Even during my term, naa pay gipabayran nga 2020-2021 payables (payables from 2020-2021 were still being paid). If you pay all those, tingali (perhaps), modako gyud ang kulang (the shortfall will indeed get bigger),” he said, adding that many unpaid obligations originated during Tomas Osmeña’s tenure as mayor.
The Commission on Audit defines payables as outstanding obligations the City must still settle with individuals, contractors, suppliers or institutions for goods delivered or services rendered. Accumulated payables can strain a local government’s budget, particularly during leadership transitions.
Archival’s Memorandum 2025-0001 imposes a “No appointment, no work” policy while the administration audits the City’s finances. Only essential personnel — such as garbage collectors, healthcare workers and daycare staff — are being prioritized for immediate reappointment.
According to the Human Resource Development Office, Cebu City Hall employs more than 8,500 workers across all categories — about 3,000 casuals, 3,000 JOs and 1,500 regular employees.
Renewals for casual employees may proceed, but JO workers must submit project proposals endorsed by their department heads for the mayor’s approval.
Archival earlier assured employees that none would be permanently displaced, noting that a three-month performance review would determine who stays. / EHP