Tagum City Hall operating on increased IRA, lower total income budget by policy decision

may 9, 2014

The Tagum City government is operating this year on increased Internal Revenue Allotment share but on decreased total income dictated by policy option of the chief executive.

The city’s IRA has been increasing since 2012 when its IRA has the last fall when it was deducted of P57 million due to the revision of the 16 new cities to municipalities, bared City Treasurer Edgar de Guzman.

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In that year the city had an IRA of P391.6 million. In 2011 it was higher P448.7-million IRA. Then the drop in 2012, but by 2013 it had already increased P434.0 million, and this year, an increased P487.99-million IRA.

But the City Hall’s estimated total income for 2014 is only P911, a reduced amount compared to the 2013 estimated income of P926 million as one account, batching plant operation, was made meant for infrastructure expenditure rather as income generating one.

Income of a local government unit, after all, is vulnerable to policy thrust of the chief executive, the mayor.

Mayor Allan Rellon when he assumed office in July 2013 made the batching plant as producer of the city hall’s mixed asphalt which is being used now in the mayor’s priority of massively asphalting the city’s road.

Before, the batching plant was an economic enterprise patronized by the private contractors in their construction works and gave the city hall income to the tune of at least P50 million.

The estimated 2013 income of P926 million was made by the former administration of Mayor Rey Uy but by the change administration in July 2013 had the rest of the half year ended up with a realized income of P868 million only, with the drop largely influenced by the P50 million estimated income of the batching plant.

The second factor of the drop of realized income is the reduction of the city’s share of real property tax as Rellon made relief to landowners by not implementing the controversial city ordinance of the previous administration that increased valuation of real property taxes, one the leading issues during the May 2013 campaign.

The 2013 realized income of P868 million, though, is greater than the 2012 realized income of P820.99 million. In that year, the city government collected only P393,899 income from batching plant from the estimated from the estimated P50 million of said account.

In 2011 it had a realized income of P848.98 million, artificially up of P162-million bank borrowing for the new city hall.

The city’s estimated 2014 total income of P911 is still short of P89 million before Tagum City can become a member of the elite club of billionaire LGUs in the country.

Three years ago,  City Treasurer De Guzman reckoned that the city could become a billionaire in 2 to 3 years’  time with the aggressive local tax campaigns of former Mayor Rey Uy, but this year it is expecting to still fall short of that dream due to executive option that prefers non-increasing of real property taxes and shifting its batching plant from catering to private contractors to generate income to one that feeds for the massive asphalting of its dilapidated roads for the general public. (Rural Urban News/Cha Monforte)

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