Garcia: City to turn over ?12.1B in cash assets to incoming admin

CEBU, Philippines — Outgoing Cebu City Mayor Raymond Alvin Garcia said the city will turn over ?12.1 billion in cash assets to the incoming administration, reinforcing his earlier claim that the city is in sound financial health ahead of his exit.

Garcia made the announcement during a teleconference Tuesday at Cebu City Hall, about two weeks after Mayor-elect Nestor Archival said he might inherit a budget deficit and raised concerns that available funds may not be enough to sustain current City Hall operations.

As of June 2, 2025, Garcia said the city had ?7.9 billion in the General Fund, ?1.5 billion in the Trust Fund, ?2.5 billion in the Special Education Fund, and $2,257,071.98 in a dollar account. He added that the funds have already been appropriated according to their respective purposes.

Garcia said the available funds will serve as a guide for the incoming administration in determining whether there is sufficient financing to continue—or even initiate—key programs.

With the city’s money in the bank, Garcia said it reflects both efficient revenue collection and prudent spending, contradicting the notion that the next administration would face a deficit.

“Zero debts, zero utang,” said Garcia.

He reiterated that Cebu City topped the list in collection efficiency for local revenue among local governments in Region 7, as recognized by the Bureau of Local Government Finance (BLGF).

“It is obvious that now that I already gave the figures nga naa pa man diay tay ?12 billion, makaingon gyud ta nga the city is financially healthy and that we are turning over substantial amount to the next administration,” Garcia said.

He emphasized that the city has no outstanding debts, with loans such as the one for the South Road Properties already settled. He added that the city’s cash reserves are enough to sustain operations for at least the next three years.

Garcia also acknowledged that decisions on the retention of City Hall employees are up to the new administration. However, he urged a fair performance evaluation of personnel before contracts are renewed.

He noted that the available funds are enough to support Archival’s earlier pronouncement to extend the contracts of current employees for three months following his assumption of office.

Garcia attributed the city’s financial position to consistent revenue collection and sound fiscal management, again citing the city’s top rank in locally sourced revenues from the BLGF.

“We were also able to control our expenses and spend on necessary programs and projects for the City of Cebu,” said Garcia.

Despite the sizable cash assets, Garcia said this does not mean the city had not been using its funds for projects. He pointed out that his administration implemented several initiatives during his one-year term.

He admitted, however, that some projects remain unpaid, including the completion of the Cebu City Medical Center (CCMC) from the third to seventh floors. He said the contract for the CCMC completion had been awarded and that he plans to make an official announcement after returning from leave.

Other unpaid contractors include those for the construction of five school buildings and slope protection structures in upland areas.

“Kining atong panudlanan karon is enough also to answer for sa any projects and programs that I have entered into during my one-year tenure in the city government of Cebu,” said Garcia.

Garcia clarified that the ?12.1 billion in assets was accumulated without implementing the updated Real Property Tax (RPT) rates mandated under the Real Property Valuation and Assessment Reform Act (RPVARA).

He acknowledged, however, that there is a legal need to revise rates, which have not been updated since 2003.

In a separate interview Tuesday, Archival said he respects Garcia’s statement and welcomes the possibility that the funds may be enough to sustain City Hall’s employment capacity.

Still, Archival stood by his earlier assessment that the cash on hand may not be enough in the long term. He said preliminary reports show the city spends at least ?40 million per week on Job Order (JO) employees alone.

“This is not final kay akong gisulti baya sa atong mayor, which I respect, is naa pay kwarta,” Archival said.

He added that he will verify how the city reached ?12 billion in available funds when the projected revenue for the year is only ?10 billion. — (FREEMAN)