Valenzuela posts higher income, savings

Valenzuela Mayor Sherwin Gatchalian has reported that city generated more income despite the generally tight economic situation and produced even more savings reflecting sound fundamentals in fiscal management.

City Treasurer Evelyn de Guzman said the city income, comprising the General Fund and the Special Education Fund, generated a combined collection of P1.245 billion in 2005 against P1.018 billion in 2004.

The 2005 figure reflected an increase of P227 million over the previous year.

Gatchalian said the city’s income increased as a combined result of an extensive tax collection effort, a vigorous information campaign, diligent tax mapping, tax amnesty and the auction of real property with long standing delinquencies.

The city government, according to City Accountant Rosa Irma Alcoran, generated an aggregate savings of P117 million in 2005 as against only P21 million in 2004.

The mayor said the city was able to generate a bigger surplus by adapting cost-saving measures and by simple and time-tested frugality.

Surplus or savings is arrived at by deducting expense from total collection.

"We bought and continue to buy the cheapest supplies and materials without sacrificing quality. And, we buy only what we need," said Gatchalian. He said they were able to source the best and cheapest deals, managing to wangle discounts of 30 to 40 percent off the usual prices.

Gatchalian said the secret is "really not a secret anymore, but simply the synergy of efficient collection and wise use of the people’s money."

This approach, the mayor said, has resulted in the city government’s overshooting of collection targets and the generation of "incredibly substantial amounts of surplus."

This development, Gatchalian said, has paved the way for the launching of more needed infrastructure for the city virtually weaned from the coffers of the national government.

"We are now able to finance more projects using locally-generated funds," said Gatchalian, boasting of a new-found freedom of not having to be tied to or dependent upon the availability of national government funds.

He said this was significant because expenditures on social services, education and infrastructure projects are not mere expenses, but wise investments for the future. — Jerry Botial