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STATE OF LOCAL GOVERNANCE REPORT 2012
by: Hon. Ernesto T. Matugas
City Mayor
 

(greetings …) Ladies and gentlemen, Good Afternoon! 

           slgr2012 Last year I stand before you for the first time as your Chief Executive reporting the annual accomplishments of the city government. Today, in line with our mandate and our commitment to full disclosure and transparency, I am once again reporting to you the state of our local governance highlighting the various initiatives we have undertaken for the development of our city and the improvement of the quality of life of the Surigaonons. 

            This is doubly significant on my part, for the period covered by this report denotes the first full year of my administration. Foremost of course is to share with you the honor and recognition bestowed on the City of Surigao for being the city category winner in Caraga Region of the Gawad Pamana ng Lahi 2011. This is an award given for exemplary performance in local governance. On top of that recognition, I am also proud to announce that we have also garnered another award this year – the Seal of Good Housekeeping for getting a high score in the Local Governance Performance Management System (LGPMS) of the DILG with another P3.0 million cash incentive. 

            I thank all the departments of the city government, the business sector and the civil society organizations for their sustained support and relentless dedication to the development of our city.


FISCAL ADMINISTRATION 

            For the first time, the city’s income last year breached the half a billion mark reaching more than P518 million.  This increased by 3.81% compared to that of 2010. In the last five (5) years, the income of the city has grown at a rate of 4.46% per annum from only P439 million in 2007. 

            Of the total income we have in 2011, 99.50% which totaled P515.745 million comes from regular sources consisting of local revenues from taxes, fees, and income from economic enterprises, and our share of the internal revenue allotment (IRA). The regular revenues increased by 7.47% from last year’s P479.855 million. The city’s performance in this regard is exceptional for this is higher than the averages for 3rd class cities and even the national average for all cities in the Philippines.  

            It is however sad to note that we remain dependent on our IRA share by as much as 75.55% despite the increase in local revenues. This is higher than the dependency last year at only 72.5%. Locally-sourced revenues totaled P129.325 million in 2011 and this increased by 9.77% from the preceding year’s local income of P117.809 million. Such IRA dependency is more or less equal to the average of cities for the same income classification but much higher than the national average for cities which is about 67.6% only. 

            Locally-generated revenues increased from P117 million in 2010 to P127 million last year. Income from economic enterprises remains the major contributor accounting for about 25% of the total. This is followed by business taxes at 22.7%, service income at 17.6% and real property taxes at 11.5%. 

            The biggest gainers in last year’s local income performance are business taxes which increased by 17.47% and income from economic enterprises by 10.26%. On the other hand, real property tax reduced by 5.42% and special education tax by 5.67% owing to the huge delinquencies of big ticket accounts. 

            Total expenditures for 2011 totaled P469.8 million. This is lower by about 4% compared to last year’s expenditures. The largest expense went to general services which includes governance and administration functions 54%, followed by social services 29%, economic services 10%, debt servicing 4% and expenses supportive of the local school board operations under the special education fund 3%. 

            It should be noted also that since our assumption into office until end of December 2011, no less than P55.4 million of our expenses are payments for back accounts of the previous administration. 

            All in all, our fiscal policies and administration performed well, with other critical indicators rating either excellent or very high based on the local governance performance management system (LGPMS). Debt servicing remained to be kept at 4% with expenditures of P19.128 million. This is considered excellent and way below the maximum allowable 20% and within the ideal 0-8% ratio. The profitability rate of our economic enterprises increased to 28.16% compared to last year’s 17.14%. This profitability rate of more than 20% is already exemplary based on local governance performance standards. The net income of P8.9 million increased by 81.9% from last year’s P4.9 million. The cost-to-collection ratio improved to 17.2% from last year’s 20%.  This means that the city spent less than 18 centavos for every Peso that it collects. This amount is better than the average for 3rd class cities whose cost to collection ratio is almost 20%. Although we will strive to reduce this further to meet the ideal of less than 10%. Our personnel services expenditures at 32% is also way below the maximum allowable of 45% for 3rd class cities.          


TRANSPARENCY 

            The city has sustained the required procedures and mechanisms for greater transparency in its operations, transactions and services provision.  The year 2011 saw the review and revisiting of the city’s Citizen’s Charter with each concerned department updating their service standards. The Civil Service Commission also conducted a service audit in selected departments of the city government middle of the year in review and there were no adverse findings in the city’s front line services provision nor in its information provision. 

            Among those noted to have satisfactorily adopted and complied with the Anti Red Tape Act of 2007 are: the posting of service procedures and flow charts, feedback drop boxes and customer information counters, the conduct of the annual state of the city report, and posting of relevant information, updates, quarterly and annual financial reports in the city’s website in adherence to the government’s full disclosure policy. 

            We have also re-established the citizen’s assistance counter in the city hall lobby to address off-hours concerns to our constituents and enhanced the flag-raising ceremonies every Monday with reports from various departments of the city.


CITIZEN PARTICIPATION
 

            The city through the CPDO and Sangguniang Panlungsod continuously facilitated the registration and accreditation of various civil society organizations (CSO). Six (6) more civil society organizations (CSO’s) were accredited last year bringing to a total of 44 the number of accredited CSO’s that are members of the city’s various local special bodies and special committees. 

            Seven (7) organizations joined the City Peace and Order Council, six (6) to the City Health Board, six (6) to the Anti-Drug Abuse Council, nine (9) to the Disaster Risk Reduction and Management Council, four (4) to the Solid Waste Management Board and all 44 in the City Development Council.



 
 
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