CEBU, Philippines — Cebu now boasts 25 first-class towns and five first-class cities following the latest income classification released by the Department of Finance (DOF) through the Bureau of Local Government Finance (BLGF).
Based on the recent DOF data, the towns of Barili, Medellin, Pinamungajan, San Fernando, and Tuburan, which were previously classified as second-income class, have now been upgraded to first-class municipalities.
Similarly, towns that were formerly classified as third-income class, including Asturias, Badian, Carmen, Compostela, Cordova, Dumanjug, San Francisco, San Remigio, and Sibonga, have also achieved first-class status.
Further, Madridejos, Moalboal, and Oslob, which were previously fourth-class municipalities, have joined the ranks of first-class municipalities.
This brings the total to 25 first-class towns, including Argao, Balamban, Bantayan, Consolacion, Daanbantayan, Dalaguete, Liloan, and Minglanilla, which have retained their first-class classification by maintaining an average annual regular income of at least ?200 million.
Cebu now also has five first-class cities as the highly urbanized cities of Cebu City, Lapu-Lapu City, and Mandaue City have retained their first-class status with an average annual regular income of ?1.3 billion or more.
Talisay City and Toledo City, which were previously third-class cities, have climbed to first-class status.
Meanwhile, Danao City has been reclassified as a second-class city, earning between ?1 billion and ?1.3 billion annually.
Carcar City and the City of Naga, which were both previously classified as fifth-class cities, are now third-class cities, earning between ?800 million and ?1 billion.
Bogo City has also been upgraded, moving from sixth-class to fourth-class, with earnings between ?500 million and ?800 million.
Currently, no city in Cebu belongs to the fifth income class, defined as cities earning less than ?500 million annually.
INCOME CLASSIFICATION GUIDELINES
The reclassification is based on Department Order No. 074-2024, signed by Finance Secretary Ralph Recto on November 5 and recently made public.
The income reclassification follows the rules outlined in Republic Act No. 11964, also known as the Automatic Income Classification of Local Government Units (LGUs) Act. The Department of Finance explained that "Average Annual Regular Income" refers to the sum of an LGU’s annual regular income over three fiscal years preceding reclassification, divided by the number of fiscal years, as defined in Section 4 of RA No. 11964.
Municipalities are classified based on their average annual regular income. Second-class municipalities are those that earn ?160 million or more but less than ?200 million while third-class municipalities earn ?130 million or more but less than ?160 million. Fourth-class municipalities earn ?90 million or more but less than ?130 million, while fifth-class municipalities earn less than ?90 million.
OTHER UPGRADES
Several other towns in Cebu have experienced significant income reclassifications. The towns of Alcantara, Alcoy, Boljoon, Ginatilan, Malabuyoc, Ronda, Samboan, and Tudela have been upgraded from fifth-class to fourth-class municipalities.
Meanwhile, the towns of Alegria, Aloguinsan, Poro, and Santa Fe have been reclassified from fourth-class to third-class municipalities.
The towns of Borbon, Catmon, Sogod, and Tabuelan have jumped from fourth-class to second-class municipalities, while Tabogon has been upgraded to a second-class municipality from its former third-class classification.
Pilar remains classified as a fifth-class municipality, while Santander retains its fourth-class status.
The new classifications outlined in Department Order No. 074-2024 will take effect on January 1, 2025, in line with Section 9 of RA No. 11964 and Rule III, Section 10 of its Implementing Rules and Regulations (IRR). The order will also be submitted to the Office of the National Administrative Register at the University of the Philippines Law Center. — /ATO (FREEMAN)