Council ok's P2.6-B city budget for 2009

The Cebu City Council yesterday finally approved the 2009 budget amounting to P2.631 billion after reducing the allocation for the city’s debt services by P164 million.

Councilor Jose “Joey” Daluz III, chairman of the Council’s committee on budget and finance, said the budget allocation for the payment of the city’s foreign loans has been reduced to P499,332,059 from the original proposal of P663.4 million.

The law provides that the amount of debt servicing shall not exceed 20 percent of the estimated annual income.

Upon review by the local finance committee, the loan payment allocation was reduced to conform to the legal requirement, Daluz said.

He also said that the proposed expenses for the personnel services, meaning salaries and other benefits, is P877 million that is still within the 45 percent limitation on personnel services.

The approval of the proposed budget was deferred by the City Council last week after it was found out that the allocation for its loan payments has exceeded limitation.

During the regular session of the Council yesterday, Daluz explained that compared to the current year budget expenses, there are no significant changes.

“This year’s proposed budget continues to adhere to the skin-and-bone policy in that only statutory budgetary requirements are proposed and all other items will be subject to supplementary appropriations,” Daluz explained further.

City officials, however, are confident that by next year the city will acquire millions, if not billions, of pesos from the sales of the lots at the South Road Properties.

Although transactions for the sale of SRP lots are still ongoing, Filinvest Land, Inc. demonstrates serious interest in buying 10 hectares of properties there worth P2 billion.

Aside from the 10 hectares that the FLI eyes to purchase directly, it will also develop another 40 hectares of lands in a joint venture agreement with the city where the city will receive a share of 10 percent from its overall gross income. — Rene U. Borromeo/MEEV  (THE FREEMAN)