Proposed new local revenue code hearings now earlier

CEBU, Philippines — The public hearings on Cebu City's proposed new Local Revenue Code have been moved up by more than a month after councilors questioned the revenue projections underpinning the proposed P15-billion budget for 2027.

Instead of waiting until Dec. 9, the City Council scheduled public hearings on the proposed ordinance for Nov. 3, 10 and 17, with a possible fourth hearing on Nov. 24, to allow lawmakers and stakeholders to scrutinize the measure while budget deliberations are still ongoing.

The move stemmed from questions raised during the opening budget hearing, where Vice Mayor Tomas Osmeña, together with several councilors, examined the city's projected revenues and the assumptions supporting Mayor Nestor Archival's proposed spending plan for next year.

Councilor Mikel Rama noted that Cebu City collected about P9.07 billion in 2025 and had generated P7.45 billion as of September 2026, yet the executive department is projecting nearly P10 billion in revenues from local sources for 2027.

Rama pointed out that the projections presented to the council included anticipated collections from the proposed Local Revenue Code, even though the measure was still awaiting legislative approval.

"Based on the executive budget submitted by the executive, it states there that their expected income, the basis for our budget, is actually dependent on the passage of this new revenue code," Rama told finance officials.

Officer-in-Charge City Treasurer Emma Villarete defended the projections, saying they were based not only on the proposed ordinance but also on several revenue-enhancement measures already being implemented in the city.

Villarete said the city's projections took into account the expiration of the real property tax amnesty program on July 5, the deployment of additional personnel for revenue collection, and the discovery of previously undeclared or underassessed properties.

She told the council that the Treasurer's Office had identified properties that had never been declared for taxation, as well as properties that had previously enjoyed tax-exempt status but were later found to be taxable upon inspection.

Rama sought clarification, asking whether the projected collections were essentially based on previous revenue performance, plus expected collections from newly discovered taxable properties and other enforcement efforts.

The councilor also questioned what safeguards had been incorporated into the proposed Revenue Code to protect ordinary residents and business owners from possible increases in taxes and fees.

In response, Villarete said Cebu City's revenue measures had not been substantially updated for years and that the Local Government Code allows local governments to periodically adjust rates.

She said the proposed increases under the Revenue Code were generally kept within legal limits and had been formulated in consultation with the concerned departments and offices.

According to Villarete, adjustments involving regulatory fees and service charges were based on the actual costs of the services rendered and had been discussed with offices affected by the proposed changes.

She emphasized that the measure remained a proposal and would still undergo public hearings, during which taxpayers, business groups, and other stakeholders would be allowed to present their concerns and recommendations.

Rama, however, maintained that the relationship between the proposed Revenue Code and the city's projected revenues must first be reconciled.

During the exchange, he asked finance officials how much the city's projected local-source revenues would change if the Revenue Code were not approved.

Villarete did not provide a specific figure but said the city would adopt stricter spending controls and fund-monitoring mechanisms to ensure that expenditures remained within available resources if projected revenues fell short.

She added that operational expenditures and financial assistance programs could be among the items affected if anticipated revenues did not materialize.

The discussion prompted Budget and Finance Committee Chairman Councilor Dave Tumulak to propose an earlier schedule for the public hearings, saying it would be difficult for the council to properly assess the budget if deliberations on the Revenue Code remained pending until December.

Rama and the other councilors supported the move, stressing that businesses and residents who could be affected by changes in taxes, regulatory fees, and other charges should be given sufficient time to study the proposal and prepare their positions before the hearings.

"It's very important that the public that will actually be affected by the adjustment in our taxes and fees be able to study the proposed changes and prepare their position," Rama said.

Following the discussions, the City Council agreed to hold hearings on Nov. 3, 10 and 17, with Nov. 24 reserved for additional discussions, if needed.

The council is expected to conclude departmental budget hearings on Nov. 26, after which the Committee on Budget and Finance is expected to submit its report during the first week of December.

The accelerated timetable means lawmakers will now examine the proposed Revenue Code while budget deliberations are still underway, allowing them to determine whether the revenue assumptions supporting the proposed P15-billion budget can withstand public and legislative scrutiny before final approval. — /IHM (FREEMAN)