THERE is money in the bank.

This assurance was made by the Dagupan City Treasurer’s office contrary to earlier claims by the administration of Mayor Benjamin Lim that the city has no more funds to pay for the salaries and wages of its workers.

Speaking on July 26 before the city council, City Treasurer Romelita Alcantara said Dagupan is in a stable fiscal position, citing figures from her office and that of the city accountant.

Alcantara said the city currently has a general fund of about P132 million deposited in various banks.

The amount consists of P117.3 million in time deposit and another P14.6 in savings/current accounts.

Of the total, P110 million is available for disbursement while the rest is allotted for the Special Education Fund of almost P10 million and trust fund of more than P6.3 million.

Alcantara said that as of June 30, 2010, when the previous city administration stepped down, all the regular employees and emergency workers (EWs) were paid their salaries and wages.

FREEZE ON EWs

The EWs did not receive their July 1-15 payment as the budget for their wages was only up to June 30 and the new city administration under Lim has ordered a freeze in the appointment of all EWs in all offices purportedly due to lack of fund.

Vice Mayor Belen Fernandez, city council presiding officer, said even the councilors currently have no EWs in their offices following the freeze order.

Councilor Brian Lim, son of the mayor, proposed that the council enact a supplemental budget to take care of the wages of EWs but Fernandez said the council must wait for a request from the mayor.

With the freeze order, Alcantara said the wages of the EWs will have to depend on the city officials using available funds from other sources.

Meanwhile, Alcantara also attested that all the disbursement vouchers brought to the treasurer’s office have been paid.

The city treasurer further gave assurance that the city’s target collection of P498 million for the year will be met to cover obligations until December 31.

COMPARED WITH URDANETA CITY

However, Alcantara pointed out how Urdaneta City is financially better off than Dagupan because the former has other sources of income such as the Local Government Unit-operated university.

In 2009 alone, the Urdaneta City University brought in an additional income of P123 million as tuition fees and miscellaneous expenses accrue to the general fund of the city.

Both Dagupan and Urdaneta are currently classified as second-class cities.

Dagupan used to be a first class city but it was reclassified to second class based on its average income of P335 million from 2004 to 2007, a level below the income bracket of P400 million set by the Department of Finance for first class cities.

Alcantara expressed confidence that in the next reclassification scheduled in 2011, Dagupan may earn back its first class status if the income bracket is not increased to P500 million as the current income of the city is already P498 million.—LM

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