After first and final hearing failed: P635M budget up for scrutiny

CEBU, Philippines — The Cebu City Council is set to conduct another budget hearing today, Feb. 25, 2025, to further discuss the proposed P635 million Supplemental Budget 1 (SB 1) after its supposed first and final hearing left the legislative body dissatisfied.

In an interview with The Freeman yesterday, Councilor Noel Wenceslao, chairman of the Committee on Budget and Finance, said that although a budget hearing had already been conducted, the council decided to set another session for further scrutiny.

According to Wenceslao, the decision came after multiple questions raised by the legislative body remained unresolved, necessitating another day to address them before the budget can be deliberated for approval.

“Supposed to be one day ra gyud unta ni (budget hearing), but naa man guy mga pangutana,” said Wenceslao.

Among the primary issues raised during the first budget hearing was the source of funds for SB 1, particularly the Reversion of Accounts Payable.

Wenceslao argued that these funds may have been allocated to pay suppliers and contractors, some of whom have complained about delayed payments from the city government.

During the budget hearing, Cebu City Treasurer Mare Vae Reyes presented the funding sources for the items indicated in SB 1. She outlined that the General Fund Proper includes deferred Real Property Tax (RPT) collections for 2022 and 2023, amounting to P91.5 million and P113 million, respectively.

Other funding sources include P67 million from the Reversion of Accounts Payable, P70 million in savings from current appropriations, and a P34.4 million subsidy from the General Fund Market.

Wenceslao said the council raised a red flag on the Reversion of Accounts Payable and emphasized the need to ensure that the government will no longer be obligated to pay these accounts in the future.

“Kay luoy man sad kaayo nga gi-reverse nato nya katong mga bayrunon nato, dili nato ma re-budget,” he said.

Another concern discussed was the realignment of funds intended for unimplemented Local Development Fund (LDF) projects, particularly those meant for barangay initiatives.

Wenceslao said the council must ensure that these projects will still be carried out even if their budget is realigned.

Councilor Jocelyn Pesquera raised this as a primary concern during the budget hearing, voicing her objection to the realignment of LDF funds.

Wenceslao acknowledged that the failure to implement LDF-funded barangay projects was due to incomplete documentation. However, he stressed that there should be a written justification confirming that these projects are no longer necessary.

The third key issue to be addressed, according to Wenceslao, is the Charter Day bonuses for City Hall employees, which the council increased to P35,000.

He noted that the executive department's proposal did not include employees from the Cebu City Medical Center (CCMC), Guba Hospital, and the Division for the Welfare of the Urban Poor (DWUP), as these are considered special accounts.

He added that special accounts require subsidized documentation and that the P35,000 increase for these employees was not included in the executive’s proposal.

Wenceslao said today’s budget hearing will help the council reach a resolution and consensus on the issues raised in SB 1.

Despite being the chairman of the Budget and Finance Committee, Wenceslao admitted that he has yet to make a recommendation on the fate of SB 1 and still needs input from the rest of the legislative body.

The proposed P635 million SB 1 includes Charter Day bonuses for casual and regular employees, initially set at P25,000 but later increased to P35,000. Job Order (JO) employees would receive P5,000. The budget also allocates an additional P140 million for road repairs through asphalting.

Another key allocation in SB 1 is P210 million for the continuation of CCMC’s construction. Cebu City Mayor Raymond Alvin Garcia said the amount will be used to complete the hospital’s 8th, 9th, and 10th floors, which were initially supposed to be funded by a donation drive organized by the Cebu Medical Society (CMS).

Additionally, SB 1 includes funding to support livelihood programs.

According to Garcia, this follows his assessment that many small-scale vendors still need seed capital for their businesses. He added that he was “inspired” by the success of the Sinulog 2025 event, where vendors were given a platform to earn income without interference from security forces.— (FREEMAN)