Council ok's MOA between city, SM on tax payments

The Cebu City council yesterday approved a memorandum of agreement between the city government through Mayor Tomas Osmeña and SM Corporation for the latter's advance payment of P53.9-million tax due, the amount of which will be used to fund various city projects at the North Reclamation Area.

In yesterday's session, councilor Nestor Archival, who authored the proposed resolution, said the advance payment of taxes due to the city for 2007 in the amount of P53, 996, 186.05 will be used to finance projects at the north reclamation area in preparation for the Asean Summit this December.

The amount paid by SM to the city government includes taxes on real property, business, and amusement.

The city has lined up projects to be carried out at the north reclamation area that include the rehabilitation of roads and drainage system, street lighting, fabrication of traffic and road signs, installation of traffic, center island and fencing and repainting; landscaping, and the planting of Indian trees on undeveloped areas.

But since Archival was absent during the session yesterday, councilor Augustus "Jun" Pe took the cudgels to introduce and have the proposed resolution approved in the council.

Last month, the Cebu City Local Development Council approved the allocation of P40 million for road rehabilitation as part of the city's preparation for the ASEAN Summit.

City engineer Antonio Sanchez said his office is preparing a detailed program on the roads that need repairs. This year's allocation, he noted, is more than double of the usual annual budget for road rehabilitation, which is around P17 million.

Although Cebu City is not the main venue for the summit, the city would be hosting meeting sites at its big hotels. Most of the international journalists that would be covering the summit will also be staying in Cebu City. - Garry B. Lao

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