New Cebu City treasurer delivers on promise to raise tax collections by 30%

October 6, 2009 10:37 pm 

CEBU CITY, Oct. 7 – Cebu City Treasurer Ofelia Oliva has delivered on her promise to increase revenue collection by at least 30 percent during her first three months in office.

She cited aggressive collection as a factor, announcing that the city has exceeded its target collection and aimed to collect at least P1.3 billion for the last three months of the year.

”Fat as a cow,” was how Oliva described the status of the City Government’s finances to members of the Cebu City Council committee on budget and finance and other city department heads.

The statement was in response to the question of City Councilor Jose Daluz lll, committee chairman, during the budget hearing on the proposed P468.357 million supplemental budget (SB) 7, which will be presented for final deliberation before the City council this week.

Oliva said since she took over from Renee Empaces last July, the city collected P241.1 million in July, P147.3 million in August, and P194.7 million last month.

The total revenue of P583.1 million for the past three months is 30.3 percent more compared to collection for the same period in 2008 that totaled P447.5 million (July 199.8 million; August, P110.4 million; September, 137.4 million; September, 137.3 million).

”No new sources of revenue. Just a matter of intensifying collection, and non-promotion of department heads and employees if they can’t collect,” Oliva said.

For the Market Operations Division, for example, the City Treasurer’s Office (CTO) gave it a collection target of P105 million for 2010.

Oliva said the city already collected around P2.515 billion as of Sept. 28, which is 90 percent of the budget estimate of P2.6 billion, which is the annual budget this year.

She said her target for the next three months is at least P1.3 billion, which represents the total supplemental budget appropriations for this year so far .

And the target, she said, is “very doable.”

The P2.515 billion excludes other third quarter payments for business taxes, whose deadline is end of September, and those for real estate taxes that are due on Oct. 20.

Additional realized income, or excess revenue of the monthly target, serves as one of the funding sources for SB 7.

Additional realized income from business tax this year totaled P108.91 million; while that for miscellaneous fees and other receipts reached P46.273 million.

Cebu City Administrator Francisco Fernandez said the biggest fund source for SB 7 is the retained operating surplus or extra collection for 2008 totaling P287.548 million.

Another fund source is the realigned amount of P5 million.

The bulk of the allocation, which totals P167.226 million, is for the barangays and includes infrastructure projects, minibuses, financial assistance to the Lupong Tagapamayapa, sacks of rice worth P8 million, and 100 sets of basketball balls for P3 million.

The allocation also includes the October to December increase in the honoraria for barangay health workers P1.4 million, barangay tanods P9.6 million, 115 daycare teachers P345,000, lupong tagapamayapa P4.8 million, 79 nutrition scholars P237,000, and 80 GAD personnel P240,000. (PNA) LDV/EB/re


Comments are closed.