City's 2007 annual budget up by 59%
The city government will work on a P1.2 billion next year. It is 58.8 percent or P445,156,603 higher than last year's annual budget which is only P756,043,397. A bigger slice of the city's annual budget for 2007 will be taken from the Internal Revenue Allotment (IRA) and the city's P350 million loan.
In last Wednesday's regular session of the Sangguniang Panglungsod, the city council approved an ordinance appropriating the amount of P1,201,200,000.00 annual budget for 2007. The budget will be taken from the estimates of income certified reasonably collectible for calendar year 2007.
The approval of the annual budget came after city treasurer Katherine Tingson and the Local Finance Committee certified that the estimated funds are "reasonable collectible". The other members of the Local Finance Committee are Ninda Atinado, city budget officer and Jose Roni Penalosa, city planning and development coordinator.
In 2007, there is a projected income of P394,820,000 for local taxes; permits and licenses P10,030,000; service income P32,640,000; business income P27,360,000; other income P386,350,000 and P350,000,000. from borrowings or city's loan from the World Bank.
The city's project expenditures is pegged at P350,000,000.00 for the construction of the new city hall building, total programs and projects P424,504,690 and the total appropriations for non-office is P735,941,110.
The expenditures for the city's peace and order program amounted to P3,000,000.
In the Local Finance Committee report, it says the increase in estimated collection is seen due to the increase in Local Taxes (RPT), permits and licenses, service income, business income and other income (IRA). The increase in the budget is also attributed to the inclusion of the borrowings or loan for the construction of the new city hall. The bidding for the city hall is set next year, after the May 11, 2007 elections.
The projected IRA for the city in 2007 is P370,000,000. It is higher by 13.3 percent or P43,456,603 from the 2006 estimates which is P326,543,397. There is also a reserve of five percent for the city's regular income which amounted to P42,560,000. It is intended for the unforeseen expenditures arising from the occurrence of calamities.
The city will also spend 45 percent budget of the budget for personnel service (PS). The law only allows the local government unit to spend 45 percent of its budget for PS. There is also a P74,000,000 for the development projects of the city.