Council cuts proposed 2015 budget to P13.4B

CEBU, Philippines - The Cebu City Council committee on budget and finance slashed Mayor Michael Rama’s proposed P18.9 billion 2015 Annual Budget to P13.4 billion, the biggest appropriation recorded so far. 

Due to lack of time during yesterday’s session, the council rescheduled the approval of the budget for Monday. The councilors are still going to deliberate on “major points” and to iron out the figures this week.

The amount was broken down into P1.1 billion (from the proposed P1.2 billion) for personal services, P7.6 billion (from the proposed P9 billion) for maintenance and other operating expenses and P4.5 billion (from the proposed P8.7 billion) for capital outlay.

Councilor Margarita Osmeña, chairman of the committee on budget and finance, said 60 percent of the estimated revenues for next year would come from the sale of government lots (P10.8 billion) on top of the regular sources like business tax, real property tax, and regulatory fees, among others.

“Actually, we considered all sources of funds or all regular sources except the sale of some properties,” she said.

Osmeña said they considered the fund sources of the executive department except the sale of the North Reclamation Area (P1 billion) and Inayawan Sanitary Landfill (P340 million).

Also, the P50 million shares from the joint venture and other activities were not considered because these were not clearly defined.

But of the P9 billion sales of South Road Property lots, the committee only considered P4.5 billion as “acceptable and practical” fund source.

Osmeña pointed out that only 50 percent of the projected revenue is being considered to be in consonance with the terms and condition on the disposal of five SRP properties.

“Let them sell the other properties before we jump into step three,” she said.

Based on the terms and reference, the winning bidders of the lots are compelled to give 50 percent down payment upon the awarding of the contract, while the remaining 50 percent will be settled within a maximum period of three years, paid in equal annual installments with six percent per annum.

The buyer will pay all taxes and fees for the transfer of the title except for the transfer tax.

The council has given Rama the authority for and on behalf of the city to negotiate and dispose by sale through public bidding Lot No. 8, which has a total land area of 26 hectares, located near the Calungsod template. 

It also consolidated lots No. 7 and No. 17 measuring 19.2 hectares located beside SM Seaside Mall.

Osmeña said it is the first time that the non-regular sources like the sale of lots and the P3.1 billion conversion of SRP amortization loan are bigger than the regular sources.

“They (executive department) are confident that they will meet the target. So, we are sharing their confidence,” she said. — (FREEMAN)