Likelihood of P6.7B city budget in doubt

CEBU, Philippines - There are signs the Cebu City Council may not approve the entire P6.7-billion annual budget of Cebu City for 2013 as what Mayor Michael Rama proposes because city legislators are not satisfied that the mayor will just sell the city’s properties just to reach the needed amount.

Yesterday, the city legislators again grilled City Treasurer Emma Villarete after she announced that Rama is projecting millions of pesos in revenue from the sales of the city-owned lots in Block 27 at the North Reclamation Area and another lot located in Salinas Drive in Barangay Lahug.

Rama is expecting P674 million from the sale of the 3.3-hectare lot in Block 27, then P58.9 million for the Lahug property, situated adjacent to the main entrance of the Waterfront Hotel and Casino and at least P650 million in installment payments from SM Prime Holdings Corp. and Filinvest Land Inc.

Councilor Alvin Dizon strongly objected to Rama’s plan to sell Block 27 because the City Council already authorized the mayor to renegotiate with the Capitol officials for the swapping of lands between the city and province to ensure the stay of urban poor families occupying the province-owned lots in 11 barangays of the city.

Councilor Augustus Pe Jr. reminded his fellow city legislators that the city’s property in Salinas Drive was originally intended to be swapped with the Gochan family who owns the lot presently occupied by the Banawa Elementary School.

Councilor Margarita “Margot” Osmeña, head of the City Council’s budget and finance committee, said although the Commission on Audit discouraged city officials from pursuing with the planned land swap citing the value of the property, Margot said the Gochan family is looking for another solution.

She said the Gochan family is planning to add some of their properties aside from the ones being used by the Banawa Elementary School hoping that COA will give favorable opinion to the proposed land swap deal.

Councilor Noel Eleuterio Wenceslao suggested that before including in the expected revenue from the sales of government lots, the mayor or the local finance committee should first ask the concurrence of the City Council if they want city-owned properties sold.

Wenceslao also reminded the city treasurer that they cannot assure that FLI will pay for the beachfront lot that it purchased from the city as it was subject to a court order preventing the city from selling it in connection with the Rallos case.

Villarete also tried to convince the city legislators that the city could earn more next year from several establishments registered under the Philippine Export Zone Authority because tax collectors will intensify the collection of the two-percent tax.

She said several PEZA registered companies in the city forgot that they are obliged to pay to the city the equivalent to two percent of their gross income. The other three percent goes to the national government.

Villarete also said the city treasurer’s office already asked the Office of the Building Official to regularly submit to them lists of newly-completed buildings to help them raise the collections of other kinds of taxes.

The city treasurer also said they are expecting to earn about P150 million next year if the City Council allows owners of delinquent properties that were already forfeited by the city to redeem them.

But Wenceslao again said the matter should needs the approval of the City Council and it is not appropriate to include the projected revenue of it in the proposed annual budget.

There are about P600 million worth of properties that had been forfeited by the city after its owners failed to pay more than P200 million in taxes in the past years.

During the continuation of the budget hearing this afternoon, City Administrator Jose Marie Poblete and other heads of the Office of the Mayor will be asked to be present at the City Council.  –(FREEMAN)