REPUBLIC OF THE PHILIPPINES
Province of Davao del Norte
City of Tagum

OFFICE OF THE MAYOR

BUDGET MESSAGE

September 1, 2008

The Honorable Members
Sangguniang Panlungsod
Tagum City

Thru: Honorable Allan L. Rellon, MPA
Vice Mayor
Tagum City

Lady and Gentlemen:

In pursuance with the provision of Section 318 of Republic Act 7160, also known as the Local Government Code of 1991, I am submitting herewith the proposed CY 2009 General Fund Annual Budget of the City of Tagum, Province of Davao del Norte involving to the sum of FIVE HUNDRED FORTY SIX MILLION FIVE HUNDRED SEVENTY THREE THOUSAND PESOS (P546,573,000.00).

This projected fund takes account of various overview sections which also comprises of Financial Summaries and the General Fund Analysis, followed by a detailed revenue and expenditure information divided by each department and section. Necessary features of the budget also consist of department’s purpose, upcoming challenges and opportunities, key accomplishments, objectives, and performance measures by major operating division. Departments also describe their proposed budget allocations for each division stipulated by type of expenditure, by fund, and programs. This conveys the anecdote of the City’s services.

A primary prerequisite of the proposed budget is to establish any significant amendments between the prior year and the forthcoming year. This formulates avenue to discuss various dynamic transformations taking place in the Local Government Unit, majority of which contain important budget implications. The prevailing principle of the CY 2009 budget is living within our means, to fulfill our primary goal: that of addressing the necessity of the Tagumeños through the provision of quality services to our constituents.

This Budget integrates the programs and projects of the CY 2009 Annual Investment Program into the expenditure program and it convey our concern in the fulfillment of our thrusts as follows:

• Employment Generation
• Education
• Revenue Generation and Prudent Fiscal Administration
• Maintenance of Peace and Order and Public Safety
• Infrastructure Development
• Agricultural Productivity/Livelihood Development and Promotion
• Human Resource/Sports Development
• Environment/Shelter Development
• Investment/Tourism and Cultural Promotion
• Comprehensive Health Services

An increase of 17% against our current year’s budget of the balanced General Fund Budget for CY 2009 is comprised of the Expenditure Program and Sources of Financing, both amounting to Php 546,573,000.00.00.

Shown hereunder is the Expenditure Program and Sources of Financing as illustrated in Exhibits 1 and 2 (next tab).

The projected revenue / estimated income as certified by the Finance Committee after conscientious dialogue with the heads of each revenue centers amounted to P546,573,000.00, Three hundred Two Million Pesos (P 302,000,000.00) or 55% will be derived from Internal Revenue Allotment and Two Hundred Forty-Four Million Five Hundred Seventy-Three Pesos (P244,573,000.00) or 45% comes from the local sources.

Projected income for Tax Revenue and General Income accounts are P 121,150,000.00 and P 57,364,000.000 respectively. And an amount of P5,000,000.00 as for the Income from Asphalt Operation for business contracts outside the city.

The implementation of 2007 Revenue Code, as being passed and approved by the 4th City Council, has tremendously contributed to the financial strength of our LGU.

Reaching our goals from the milestones we have created, the existence of new revenue measure incorporates the formulation of additional fee to be collected for Educational Support Program (ESPF), Sanitary Services (SSF), Road Maintenance (RMF), Drainage Maintenance (DMF), archival and tax on idle land. These could help the City improve more in terms of beautification and sanitation and give opportunity to less fortunate children to experience quality education.

An estimated amount of P 61,059,000.00 as revenue for government business operation will be derived from various economic activities such as operation from Market, Terminal, Slaughterhouse, Cemetery & Cultural Trade Center. P 36,152,109.00 or Fifty Nine percent (59%) of income derived from Economic Enterprise was appropriated for its operating expenditures. The excess of P 24,906,891.00 or forty one percent (41%) was transferred to General Fund to subsidize its operations and to continuously commit to economic development and fiscal regulations in pursuit of city’s important development mainly in terms of infrastructure and rendering quality services to the Tagumeños.

Moreover, to ensure collection effectiveness in achieving our fiscal targets, policies and measures will be adopted as follows:

• Maintain tax collection efficiency through administrative and judicial remedy.
• Examination of the books of accounts
• Public auction of unserviceable property.
• Access to external funds
• Marketing of the asphalt products
• Capability building for all collectors and revenue centers
• Establishment of data bank for business establishments
• General revision of real properties
• Setting-up of more economic ventures.

ALLOCATION OF FUNDS

A summary of our total General Budget Proposal will show the allocation by sector, as follows:

EXHIBIT 3

General Public Services

The major portion of the budget is intended for this sector which has an allocation of P 260 Million or 48% of the total budget that enfolds expenditures for services which is a requisite to the existence of the organization and cannot be allocated to other specific sector.

This consists of executive and legislative services, overall financial and fiscal services, planning, general research, public order and safety and other centralized services.

Economic Services

The second major allocation of 104.7 Million or 19% of the total budget is make-available for the Economic Services.

An amount of P3 Milion is proposed for the continuous rehabilitation and development of La Filipina Public Cemetery.

Moreover, a provision of appropriation amounting to P1.5 Million is allocated for the operationalization of city agricultural and fishery program. This allocation will fund priority programs geared towards increasing agricultural productivity and achieving food security. It include the City`s crusade to intensify the farmers agricultural output as well as the City`s fishermen in the coastal barangay through the implementation of this program. And a supplementary sum of P .5 Million is projected for the construction of important structures under the City Agriculture Office.

Also, a total of P .4 Million is being set aside for Livestock & Poultry Production Program to augment the inadequate income of our constituents.

In the preservation of our environment and natural resources, a total of P 3 Million is being allocated for Reforestation Program. Various tree species like acacia mangium, falcata, mahogany and raintree are now continuously planted to maintain the protection of our environment. The inclusion of landscape beautification, saturation of palm tree in different varieties and the maintenance of parks and plaza have to be sustained to uphold our eco-tourism industry as we are best renowned as City of Parks.

Moreover, different mangrove species have also been propagated to develop hectares of mangrove development sites to regenerate the production of fish, crabs, prawns and other marine products.

Lastly, an amount of P 5.4 Million is for the repair & maintenance of government structures and facilities such as: Electrification, Power and Energy Structures, roads and road marking/facilities, government buildings/School Building and Demolition Crew as well as drainage system.

Health, Nutrition and Population Control

7% or P 38.9 Million of the total budget allocation is offered for the Health, Nutrition and Population Control to maintain expenditures for health, medical, dental, nutrition and population control services.

A sum of P 6.2 Million has been allotted for the Health and Sanitation Program.

Conversely, an allocations of P 5.1 Million, P 2.058 Million and P.5 Million have been appropriated for the delivery of Health Services, Nutrition and Voluntary Blood Service program to our constituents respectively.

Allocating P 2 Million for our referral assistance in Davao Regional Hospital, it will certainly serve thousands of our less fortunate constituents on medicines and hospitalization bills.

Furthermore, an amount of P 1.5 Million is endowed for the implementation of Population Management and Family Planning program.

Social Security, Social Services and Welfare

An amount of P 7.9 Million or representing 1% of the budget is intended for Social Security, Social Services and Welfare. For its functions and duties to secure the welfare of the less-fortunate families, provides rehabilitation of the physically and socially handicapped constituents, offer assistance to distressed and displaced individuals and families, concern of the aged and other welfare services.

Other Purposes

5% of the regular income sources or 26,395,200.00 is allocated for the calamity fund. On the other hand, the sum of P 5 Miion is set aside as lump sum appropriation for reorganization with an aim to place personnel for the right position based on merit and suitability and around P10 Million for the other personnel benefits and allowances, respectively.

Moreover, the sum of P 2,630,000.00 is provided for the aid to the twenty three (23) barangays of this city.

Further, an amount of P 90.5 Million represents 16.5% of the total revenue from regular sources is intended for our debt servicing.

Personal Services

The 26% of the total budget amounting to P 141,910,642.80 is the summation of the total expenditures for Personal Services which comprises the lump sum appropriation for reorganization, salaries and wages of employees and other privileges, benefits and allowances.

Moreover, it includes the provision of longevity increases and step increments to qualified personnel, so as with the granting of Magna Carta benefits to the devolved health personnel as follows: subsistence and laundry allowances and other benefits.

Maintenance and Other Operating Expenses

To act in response to the needs of various offices/sections for its effective performance and its basic mandates and function to enable to achieve its specific goals and targets, an amount of P 105,505,705.20 representing 19% of the total budget has been provided.

Capital Outlay

7% of the total budget or a totaled amount of 38,308,500.00 has been allocated under the expenditures of Capital Outlay which include the provisions of appropriation for development projects and equipment outlays.

Locally Funded Projects

For the implementation of the City’s Development Programs, Projects and Activities to guarantee the effectiveness and efficiency of services offered to the clients, an amount of 98,703,803.00 or 18% of the total expenditures is hereby allocated.

Such creation of a new program is being organized, the Balik-Sigla program is appropriated with P 2,179,010.00 wherein physical therapists visit every barangay to extend free services to every stroke patients on house to house visitation particularly those who cannot afford to provide a therapist to monitor them for their own recovery.

Also, this budget gives importance to Sports Development, appropriating an amount of 1,900,000.00 for the activities to wit: Araw ng Tagum Sports Activities-P300,000; Tagum City Summer Sportsfest-P500,000; Tagum City Fiesta Sports Activities-P300,000 and Barangay Sports Activities-P300,000, City Employees Sportsfest-P200,000.00 and Bowling Tournament (National)-P300,000.00.

Further, we also provided an amount of P2,000,000.00 for the Musikahan sa Tagum considering that Tagumeños are music devotee and to continually uphold our city as the Music Capital of the South.

To continually provide entertainment and livelihood, we have allocated P 100,000.00 for Durian Festival. To uplift the dignity of third sex like gays, the creation of Binuhat Festival is dedicated for them with an appropriation amounting to P 300,000.00.

Education, aside from being a key investment, it also an end to itself. To assist the less fortunate but deserving students and develop them to become leaders and asset to the government in the near future, we have appropriated P 1.5 Million for our City Vocational/Technical Scholarship Program (CIVOTESPRO) in providing short term courses on technical education thus producing skilled workers to work here and abroad.

Amounting to P 539,880.00 is allocated for Investment Development and Promotion Program for the purpose of invitational programs to entice investors to invest in our city as well as in providing assistance to local and foreign investors.

20% Development Fund

The 24% of the total Internal Revenue Allotment of this city or P 71,566,374.00 is allocated for the expenditures under 20% Development Fund which includes the expenditures for the implementation of the various development programs, projects and activities of the city focused more on livelihood, agricultural-development projects, environment and natural resources, housing, tourism, peace and development projects, knowledge and productivity enhancement as well as infrastructure development. All these projects are ranked priority in our 2009 AIP.

Honorable Members of the Sanggunian, in the past persevering years, Tagum City has faced loads of challenges because City`s financial difficulties continue to stem from an inadequate growth of revenues coupled with several uncontrollable cost such as state-mandated salary increases and other worker`s compensation claims, continuous increase of prices but we have conquered these challenges despite of our limited financial resources. We need to set priorities to do the things that are most important to our community – sound finances, excellent public safety, quality education, care for our less fortunate citizens and maintenance and enhancement of our infrastructure. Our immediate action on this budget is one of the most imperative thing we can do together and manifest our determination to lay a strong foundation for a greater and progressive Tagum City. It is through this budget that we can launch our precedence for the year to come. May we join our hands together as we go about our mission of providing a brighter future for our constituents.

Thank You and More Power.

Very truly yours,

REY T. UY
City Mayor