NEWS: Panabo LGU facing P40 M budget cut due to return of 16 cities

By Cha Monforte, Rural Urban News

MAR 2

Panabo City Mayor Jose Silvosa yesterday bared in his State of the City Address (SOCA) that his city government is facing a revenue cut of P40 million with the recent decision of the Supreme Court upholding the return of 16 towns to the category of becoming cities.

And with it, he said, before guests and city officials including Congressman Anton Lagdameo and former Congressman Antonio “Tonyboy” Floirendo Jr., the city council has passed the revised local tax ordinance providing for 20-percent increase of the old tax rate for business and real estate.

He defended that the tax rate adjustment is “just and timely after so many years have elapsed” such that the tax code was enacted 18 years ago when the city was still a municipality.

He compared that while all of Davao del Norte’s municipalities have the base market value for export banana land pegged at P113,000 per hectare, for Panabo City it is still pegged at P34,400 per hectare.

“In the case of residential lots, Sto. Tomas (town) fixed their base market value for urban lots at P360 per square meter, ours is P350. For rural residential lot, Sto. Tomas has set it at P250 per square meter, (ours) is P180,” he added.

Panabo City government in 2009 grossed an income of P506 million, about P350 million or 69 percent of which came from Internal Revenue Allotment, where the P40- million budget cut would come from.

The locally generated taxes in the same year amounted to P165 million or 31 percent, per Silvosa’s SOCA report.

The city government realized a net income of P116.5 million for the year after deducting the gross income with P384.5-million operating expenses, P21 million loan servicing and subsidies for barangays.

Silvosa however noted that the capital base of city government under his watch since 2007 in the span of two years has grown by almost 20 percent or about P110.3 million.

He also reported his accomplishments in wide-ranging fields of governance, and called and rallied government workingmen and the people for stronger collaboration and more participation in the effort of alleviating the plight of the poor. (Cha Monforte/Rural Urban News)

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