Republic of the Philippines

Province of Davao del Norte

City of Tagum

OFFICE OF THE MAYOR

BUDGET MESSAGE

                                                                         September 15, 2010

The Honorable Members

Sangguniang Panlungsod

Tagum City

Thru:     Honorable Allan L. Rellon, MPA

Vice Mayor

Tagum City

Lady and Gentlemen:

As prescribed under Section 318, Chapter 3, Article 1, Book II of Republic Act 7160 known as the Local Government Code of 1991, I am submitting herewith the proposed Calendar Year 2011 General Fund Annual Budget for the City of Tagum amounting to the sum of EIGHT HUNDRED FIFTEEN MILLION FOUR HUNDRED TWENTY SEVEN THOUSAND NINE HUNDRED PESOS ( P 815,427,900.00 ).

1. INTRODUCTION

The proposed Budget comprises of different presentations of Financial Summaries with its corresponding Fund Analysis, Revenue and Income Sources and the Detailed Expenditure Programs accordingly proportioned to each division/section under a specific department. Supporting this General Fund Budget are the respective departments’ purposes and objectives, upcoming challenges and opportunities, key accomplishments and the performance measures of its operating divisions. It also integrates the City Development Plan converted into an

    

expenditure program by proposing only those projects which have been found and ranked as the top priority projects under the city’s Annual Investment Plan. In addition, departments categorically apportioned their respective allocations into each type of expenditure, e.g. personal services; maintenance and operating expenses, 20% development programs, locally funded projects and capital outlays – a clear indication of local governance at its fullest and the desire for a decisive and a responsive delivery of public service.

  

It has been a known fact that a proposed budget will accordingly respond to any established necessity in response to vital tangible changes brought about by the uncontrollable transformation of the city through the years. This, in particular, leads to imperative budget implications. Needless to say, our unlimited aspirations for development will inevitably meet our limited resources thus, the prevailing fiscal principle of living within our established allocations and means should be carefully observed. And, our mission to provide quality and responsive services to our constituents should never be compromised.

2. GOALS AND OBJECTIVES

Calendar Year 2011 Annual Budget integrates all programs and projects outlined in our Annual Investment Program which has been accordingly figured into an expenditure program giving particular concerns to the following thrusts:

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

 

3. FISCAL POLICIES

To ensure the sustainability of our collection efficiency in achieving our fiscal targets, various measures will be periodically installed in each of the concerned departments/offices:

• Enhanced Tax Collection Efficiency through administrative    support and applicable judicial remedies
• Continuous Periodic Examination of Books of Accounts
• Public Auction of Unserviceable Properties and Equipment
• Public Auction of Delinquent Real Properties
• Vigorous Access to External Funds
• Continuous Marketing of Asphalt Products & Services
• Capability Building Strategies for all collectors and revenue centers
• Establishment of an Updated Data Bank System for business establishments and other related data
• Implementation of tax ordinance
• General revision of real properties
• Scouting and setting up of more relevant economic ventures

4. PROGRAM THRUSTS AND PRIORITIES

After a thorough deliberation with all of the concerned department/division heads of each revenue center of the city, the Local Finance Committee certified the total projected/estimated income for Calendar Year  2011 in the amount of EIGHT HUNDRED FIFTEEN MILLION FOUR HUNDRED TWENTY SEVEN THOUSAND NINE HUNDRED PESOS ( P 815,427,900.00 ) wherein the amount of Four Hundred Million (P 400,000,000.00) or a 49.05% of such will be derived from the Internal Revenue Allotment (IRA) for the city and the remaining Four Hundred FIFTEEN MILLION FOUR HUNDRED TWENTY SEVEN THOUSAND NINE HUNDRED PESOS ( P 415,427,900.00 ) or a 50.95% of its total will come from various local sources. (This is graphically illustrated in Exhibit 1 herewith.)

Comprising the 50.95% of local sources are the amounts of P 160,280,000.00 (or a 19.66% of the total projected income) and P 81,507,900.00 (or a 10.00% of the total projected income) for Tax Revenue and General Income respectively, P 100,000,000.00 (or a 12.26% of the total projected income) from Asphalt Operations for business contracts outside the city and P 73,640,000.00 (or a 9.03% of the total projected income) from the Economic Enterprise Operations such as Public Market, Trade Center and Ambulant Enterprises, Overland Transport Terminal, Slaughterhouse/Livestock and Auction Center, and Public Cemetery.

Of the total projected income in the amount of P 73,640,000.00 from various Economic Enterprise Operations, P 43,900,507.00 or a 59.62% of its income will be appropriated for its overall operation and accordingly apportioned among its divisions/sections while the excess of P 29,739,493.00 or a 40.38% of its income was provided for inter fund transfer to the General Fund Proper in order to subsidize its various economic, infrastructure and other equally essential development operations for the direct and indirect benefits of Tagumeños.

As against our Current Year’s budget, there is a 24.45% increase in our Estimated General Fund Budget for CY 2011 evidently comprising the Total Expenditure Program and Sources of Financing all amounting to P 815,427,900.00 against CY 2010 budget of P 655,208,336.09.

The continuous implementation of 2007 Revenue Code and with the adoption of new revenue measures therein on Educational Support Program Fund (ESPF), Sanitary Services Fund (SSF), Road Maintenance Fund (RMF), Drainage Maintenance Fund (DMF), Archival and Tax on Idle Lands had really contributed to the stability of the city’s coffers. All of these new measures including all other local revenue sources were meant for the betterment of the living and social standing conditions of Tagum City populace. 

ALLOCATION OF FUNDS

The total Annual General Fund Budget for CY 2011 is outlined by the following sectoral allocations and other purposes as shown hereunder (Exhibit 2) and illustrated thru a pie graph in Exhibit 3 (Next tab) herewith:

Exhibit 2

General Public Services

The amount of P 292,310,339.00 or a major portion consisting of a 35.85% of the total annual general fund budget is intended for expenditures which are mandatory for the existence of the local government unit, its respective departments, divisions, sections and other offices closely operating with it and may not, in any way, be allocated to other specific sector. This sector also provides frontline services to the transacting public with regards to public documents. In relation thereto, this sector wraps up all executive, legislative and Judiciary services, planning and general research and all other overall fiscal services.

Health, Nutrition and Population Programs

P 45,462,286.00 or a 5.58% of the total annual general fund budget is set aside for all Health – related programs and activities comprising of various medical, dental, nutrition, population management services and others which are contributory to a sound and healthy state of living.

An amount of P 12,638,325.00 has also been appropriated for Health and Sanitation Services necessary to carry its mandates in maintaining city’s cleanliness which is vital for public health safety. 

Serving as a very big relief for our less fortunate constituents on their medications and hospitalization bills is the provision for P 1,000,000, P 300,000 and P 200,000 for Chemotherapy and CT Scan referrals respectively, a P 500,000 each for Kidney and Cancer Patients were provided and P 2,000,000 Emergency Assistance for Medicine Admissions to Davao Regional Hospital also appropriated for such purpose.

Social Security, Social Services & Welfare

The amount of P 79,691,868.00 or a 9.77% of the annual general fund budget is also intended for public and property order and safety, social basic services, among other purposes, this sector is also specifically geared for securing the welfare of the less – fortunate residents of this city, provide for rehabilitation and assistance for the physically and socially handicapped and disabled constituents, distressed and displaced individuals and families and down to the concerns of the aged citizenry.

Economic Services

The next major amount of P 162,970,043.00 or a 19.99% of the total annual general fund budget is provided for various expenditures under Economic Services. This sector plays an important role in the society since it measures the society’s interaction with regards to economic activities. Basic services which are vital for human survival like food, shelter and clothing encompass the Economic Services.

Agriculture’s Office, Veterinarian’s Office and Economic Enterprise Office are offices directly involve with food security. Architect, Engineering and Environment and Natural Resources Office are offices closely engage with shelter and safety living.  

Other Vital Purposes:

     Debt Servicing/Financial Expenses

The amount of P 160,678,700.00 or a 19.70% of the total appropriated CY 2011 budget is specifically intended for Debt Servicing of the city in settlement of the financial obligations of the local government during the budget year. The occurrence of such obligations is brought by city’s investment in procurement of construction and heavy equipment for massive development projects, construction of school buildings, and previous years’ obligations taken by construction of government buildings to serve the public even better and city’s economic structures.

    Miscellaneous Personnel Benefit Fund (MPFB)

For other personnel benefits and allowances, the amount of P 31,514,989.00 or a 3.86% of the total expenditure for CY 2011 is provided. Under MPBF and with the on-going process of reorganizing the Organizational Structure of the city, a lump sum amount of P 15,000,000.00 is reserved. Likewise, Pensions/Retirement Benefits and Terminal Leave Benefits were also taken into consideration in the amount of P 6,000,000.00 and P 3,000,000.00 respectively, for those city employees whom are, with their option, chooses to leave with joy and contentment serving the public.

     Aid to Barangays

Notwithstanding the fact that various development projects are implemented in the barangays, the amount of P 2,630,000.00 is provided with the intention to augment their fiscal resources and to continuously assist them in their service endeavors for various developmental concerns within their respective jurisdictions.

     5% Calamity Fund

P 40,169,675.00 or a 5% of the total regular income is automatically allocated for Calamity Fund. Such fund will be readily made available for but not limited to rescue operations and rehabilitations brought about by the occurrences of fortuitous and disastrous events.

Very truly yours,

REY T. UY
City Mayor