Cebu city budget hearing: Savings eyed as source of funds for stalled SB 1

CEBU, Philippines - With department heads reporting savings in their current budgets, Cebu City councilors questioned why they were asking for an increase in their respective budgets and suggested that the unspent sum be used to fund the controversial Supplemental Budget 1.

The City Council had deferred approval of SB 1 until the court resolves a case asking that the city be barred from spending the proceeds of the sale of South Road Properties lots.

The city has collected over P8.3 billion from developers that purchased a total of 45.2 hectares of the SRP, and the executive department had identified the revenue as the only fund source for SB 1, which include additional budget for garbage collection and for city employees’ productivity bonus.

The City Council, however, continued to avoid passing the said budget despite protests by City Hall employees.

During the continuing hearing for the proposed P8.9-billion Cebu City budget for 2016 yesterday, City Councilor Margarita Osmeña questioned the proposed P781 million budget of the General Services Office for next year.

She particularly mentioned the P120 million for gasoline, oil and lubricants, which was 33 percent (P30 million) higher than the P90 million this year, and requested even if the office has P3.7 million in unused funds for 2015.

GSO Chief Dionisio Gualiza said in response that they asked for an increase in budget since the city is acquiring new vehicles and heavy equipment.

Osmeña, though, also asked why the proposed budget for water rose from P13.8 million this year to over P15 million next year when the office still P6.5 million in savings for this year.

Another questioned item was the rental of heavy equipment, which ballooned to P50 million compared to the P5 million this year.

Osmeña said GSO still has a savings of P4 million in the budget for f heavy equipment rental and the office has identified a total of P17 million in savings, or 2.85 percent of P596.2 million in approved budget.

“If you have savings in your department, the other departments may also have their savings. So, there are other sources of funds,” she said.

Osmeña said savings made by the different City Hall departments may be used to fund the stalled P2.8 billion SB 1.

Aside from the increased budget requested, the city councilors also examined the budget for foreign travel.

“Travelling outside Cebu should be stopped,” said City Councilor Sisinio Andales on the funding for local and foreign travel and training expenses requested by the city’s Human Resource Development Office.

The HRDO asked for P16 million, but Osmeña said the proposed travel and training expenses requested by all departments of the city was actually P26 million.

In particular, HRDO asked for P5 million for local travel and P1 million for foreign travel and another P10 million for training expenses in 2016.

HRDO Chief Mary Ann Suson said the city has been receiving requests and invitations from other countries for seminars and trainings, among others, the budget would be used there.

She said these invitations may help the city’s employees develop their skills.

Osmeña, though, said the city should stop spending for travel expenses if the requesting parties or countries would not shoulder all expenses.

Andales, on the other hand, said these trainings, either local or foreign, should be stopped since basic knowledge can be already be researched online.

“It (trainings) should be stopped na kay naa man tay Internet. Grabi na atong gasto karon. We should save money,” he said.

Suson said her office has conducted a study that most employees lack very basic knowledge about the city the P10 million would fund several in-house and outside trainings.

The scrutiny ended with Osmeña asking Suson to submit a breakdown of the proposed HRDO budget.  (FREEMAN)