THE Cebu City Council has terminated the budget hearings for the city’s proposed P50 billion budget for next year even though five departments, including the legislative department, have yet to present their respective budget proposals.
City Councilor Noel Wenceslao, who chairs the committee on budget and finance, confirmed that they terminated the budget hearings on Monday, Dec. 19, 2022.
Wenceslao told reporters on Tuesday, Dec. 20, that they decided to terminate the budget hearings due to time constraints.
Wenceslao said at the time that they terminated their budget hearings, five offices namely the City Treasurer’s Office, City Assessor’s Office, Sangguniang Panlungsod (SP), Vice Mayor’s Office, and the Cebu City Public Library, had yet to present their budget proposals.
Wenceslao said the budget of these offices was no longer deliberated since the council does not have the “luxury of time” since the proposed budget should be approved on or before Dec. 31.
The five offices have an estimated combined budget of P1.82 billion with the biggest chunks going to the SP Office with a proposed P1.57 billion budget for next year.
Wenceslao explained that the budget of the Sangguniang Panlungsod can be deliberated internally by the members of the council.
The SP will be allocating P600 million for the renovation of the existing legislative building, which will be converted to become a Cebu City Museum and another P400 million for the construction of a new legislative building at the South Road Properties.
Meanwhile, the remaining four offices’ budget proposals are as follows: City Treasurer’s Office (P161 million), City Assessor’s Office (P80 million), Vice Mayor’s Office (P77 million), and Cebu City Library (P4.2 million).
Now that the budget hearings have ended, Wenceslao said his committee will now make a report on the results of the deliberation which will be submitted to the council for approval together with the Annual Investment Plan for 2023.
Wenceslao added the submission of the committee report will serve as the second reading of the budget ordinance and once it is passed, a special session will be scheduled for the third and final reading of the ordinance.
Adjustments
But he admitted Mayor Michael Rama has introduced some adjustments in the budget of different offices but the total proposed funds has remained at P50 billion.
Wenceslao said he is waiting for the amendments of the mayor that will be included in the committee report that will be further deliberated on by the council.
Vice Mayor Raymond Alvin Garcia said during a news forum Tuesday, Dec. 20, that the City Government can still possibly achieve a budget close to the proposed P50 billion for 2023 even without implementing a huge revision or increase in its tax rates.
Garcia believes that a lot of revenue can be generated if the City will improve its tax mapping and collection efficiency rate.
Despite the proposed tax code revision not yet approved by the council which is one of the sources of funds for next year, Garcia said the city can still generate funds not far from P50 billion.
Other options
Garcia said the City Government can focus on mapping the city’s establishments and determine what they are really declaring in their business and real property taxes (RPT).
The vice mayor explained that RPTs are assessed on the declaration made by the business establishments and some would intentionally misdeclare their assets to avoid paying additional taxes.
The City Government should also look into requiring online shopping platforms and online property rental to pay taxes in the local government unit, he added.
Garcia said these businesses have transactions that are happening within the jurisdiction of the city but these are being booked in their main offices located in Metro Manila.
By improving its tax mapping, the City Government can eventually see the real potential of what it can collect from its constituents, he added.