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P40-M COLLECTION SHORTFALL
WHEN IT RAINS, it pours, and it’s pouring hard on the Dagupan City government. Worse, it will expectedly continue to pour till the end of the year, courtesy of the previous administration under Mayor Benjamin S. Lim.
Here’s why. The cash-strapped Dagupan City government appears to be in very severe financial straits after City Treasurer Romelita Alcantara submitted a projection pointing to a P40 million collection shortfall from the city’s estimated revenue of P612 million for the year.
And as if this was not enough, the total balance as of July 23, is now P2.181 million, down from the P8.5 million fund left by the Lim administration as of June 30, 2013.
Mayor Belen Fernandez has called on the city hall employees to closely guard use of remaining resources in the budget as an added belt-tightening measures while collection efforts are being intensified.
Fernandez told The PUNCH that her administration has started to institute fiscal reforms, realigned funds and is getting pledges of assistance from national agencies to ensure that delivery of health, sanitation and nutrition services and other basic services are not do not suffer.
She said she will also seek supplemental budget from the city council to cover salaries and other essential items.
Meanwhile, a number of civic clubs in the city have already volunteered to support the city’s feeding program whose budget was misused and completely spent by the Lim administration. Among the clubs were Rotary and Inner Wheel Clubs and local Jaycee chapters.
Two multi-national companies, namely Unilever and Mead Johnson also rushed aid to the city government for its feeding and nutrition program.
LFC MEETING
Alcantara submitted her report during a meeting called by Mayor Belen Fernandez among members of the city’s Local Finance Committee, which was also attended by Acting Budget Officer Luz de Guzman, City Accountant Teresita Manaois, City Administrator Farah Decano, City Legal Officer George Mejia, City Planning and Development Officer Romeo Rosario (as head of the Bids and Awards Committee) and City Engineer Virginia Rosario.
The city treasurer revealed that the revenue collection as of July 24, 2013 stood only at P373 million or 61 percent of the annual target.
From July 25 to December 31 this year, she expects the collection to reach only P201.6 million, which will mean P40 million short of the P612 million target.
Records show that in 2012, the shortfall in the city’s collection was P44 million, or P43 million if the supposed surplus in the trial balance of P1 million as reported by the previous administration under former Mayor Benjamin Lim is valid.
Alcantara attributed the shortfall to the reduction of the Internal Revenue Allotment (IRA) by P5.6 million; overestimated projection of Real Property Tax (RPT) collection by about P8 million on account of delinquencies; and the non-realizable collection of P3 million from the Dagupan City River Cruise, among others.
Alcantara revealed that there are many RPT delinquencies in the city and her office is set to auction some properties, but the proceeds of these will be still held in trust for one year to give owners a chance to redeem their properties.
EXPENDITURES
Meanwhile, Acting Budget Officer De Guzman reported that as of July 23, 2013, the expenditures in the city government already reached P348 million or 56 percent of the total approved budget of P612 million, leaving a balance of P266.8 million or 44 percent.
The remaining balance will cover mandatory obligations listed as Calamity Fund, P18,3 million; 20 percent Development Fund, P28.7 million; and Debt Servicing, P17.45.
She said that as of July 24, 2013, only 20 percent or P37.1 million remained in the Non-Office Account budgeted for the whole year at P178.3 million against a projected expenditure of P141.1 million.
The programs/projects in the Non-Office Account with zero budget as of July 24, 2012 are: Security and Protective Service, Development Management of the City, Health Services Program, Social Services Program, Health Insurance Premiums for Indigents, Investment Promotion Program, Flood Mitigation and Control, Tourism Infrastructure Support Program and Electricity.
The others are: Nutrition Program 1 per cent; Anti-Hawking Program, 1 per cent; Engineering Program, 2 per cent; Tourism Program, 2 per cent; Barangay Service Security Force Program, 3 per cent; Repair &Maintenance of Gov’t Buildings and Facilities, 10 per cent; Youth and Sports Development, 10 per cent; Ecological & Environmental Sanitation Program, 10 per cent; Tourism Program, 10 per cent; Traffic Management of the City, 16 per cent;
Noting that only 10 per cent of the P5 million budget of the Tourism Program has remained against an expenditure of P4.5 million, the mayor asked City Tourism Officer Rosemary Teng Mejia to submit an official explanation on Monday.
Meanwhile, Rosario clarified it was not her office that spent 98 per cent or P3.01 million of the P3.07 million budget (composed of P2.4 million allotted for the Engineering Service Program plus a supplemental budget of P620,250).
She reacted to the report filed by the former budget officer, Virgil Tangco, who filed for his retirement two weeks ago that reflected the expenditure. The report did not specify details for the expenditure.
The Investment Promotion program’s budget which now has a zero balance, was earlier reverted to pay for the city’s electric bills.
The meeting of LFC members was called by Fernandez to identify exactly how much fund is still available in the city coffer that could bankroll the obligations of P56.3 million until December 31 this year.
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