Local Development Investment Program, CY 2012-2014 by Municipal Development Council, Municipality of Leganes

2011

Printed in Leganes, Iloilo, Philippines

Citation: Municipal Development Council-Leganes. 2011. Local Development Investment Program CY 2012-2014. Municipality of Leganes, Iloilo, Philippines. This publication was made possible through the efforts of the Municipal Planning and Development Office of the Municipality of Leganes. The publication may be reproduced or quoted in other publications as long as proper reference is made to the source.

LDIP Document No. 01-LDIP/2011

TABLE OF CONTENTS

Title List of Tables List of Figures List of Acronyms and Abbreviations Sangguniang Bayan Ordinance Municipal Development Council Resolution Chapter 1. Introduction 1.1 The Local Development Investment Programming Process 1.2 The LDIP and Annual Budgeting 1.3 Investment Programming in the Future 1.4 The Structure of this Volume Chapter 2. Selection and Prioritization of Programs and Projects 2.1 Random List of Selected Projects 2.2 Ranked List of Projects Chapter 3. Analysis of Local Fiscal Capability 3.1 Past Revenue Performance 3.2 Past Expenditure Patterns 3.3 Projected Income 3.4 Analysis of Local Fiscal Capability Chapter 4. Indicative Three-year Investment Program 4.1 Investment Streams 4.2 Investment Programming and Budgeting 4.3 Matching of Fund Requirements with Projected Funds Available Chapter 5. Implementation Strategies and Policies 5.1 Relevant National Strategies and Policies 5.2 Improving Local Fiscal Management 5.3 Institutional Development 5.4 Technical Capability 5.5 Legislative Support 5.6 Continuity of the Investment Program Annex

Page iii iv v vii viii 1 1 2 2 3 5 5 7 10 10 12 14 14 16 16 16 16

21 21 22 28 29 30 31 33

ii

LIST OF TABLES

No. 2.1 2.2 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 4.1 5.1

Title Sample Format of the Goal Achievement Matrix Summary of Rankings and Scores Actual Income and Growth Rate Composition of Actual Income Collection Efficiency Rate Expenditure Growth Rate Allotment Utilization Comparative Growth of Income and Expenditure Income Projection Projected IRA and 20% for Development Program and Projects Local Development Investment Program, 2012 to 2014 LGU Financing Options for Projects

Page 7 8 10 11 11 12 13 13 14 15 17 25

iii

LIST OF FIGURES

No. 1.1 3.1 5.1 5.2 5.3

Title LDIP Process and Development Planning-Investment Programming-Budgeting and Implementation Cycle Actual Income for the Past Three Years, CY 2008 to 2010 LGU Financing Options Forms of Privatization Project Development Process

Page 4 10 24 28 29

iv

LIST OF ACRONYMS AND ABBREVIATIONS

AIP ALERT AT BCPC BDC BGPMS BIR BOT CDP CiCha CO COA CRM CRMP DAR DBM DF DILG DRRM DRRMF EXCOM FITS FMR GAM GF GFI IRA LCC LCE LDC LDIP LFC LGU LPBAC LPDO LTCEC LTO MDC MDF MMEC MOOE MPDO NGA

Annual Investment Program Active Leganes Emergency Response Team Agricultural Technologists Barangay Council for the Protection of Children Barangay Development Council Barangay Performance Management System Bureau of Internal Revenue Build-operate-transfer Comprehensive Development Plan Citizens Charter Capital Outlay Commission on Audit Coastal Resource Management Coastal Resource Management Plan Department of Agrarian Reform Department of Budget and Management Development Fund Department of Interior and Local Government Disaster Risk Reduction and Management Disaster Risk Reduction and Management Fund Executive Committee Farmers Information and Technology Services Farm to Market Road Goal Achievement Matrix General Fund Government Financial Institution Internal Revenue Allotment Leganes Commercial Complex Local Chief Executive Local Development Council Local Development Investment Program Local Finance Committee Local Government Unit Local Prequalification, Bids and Awards Committee Local Planning and Development Office Leganes Training and Competency Enhancement Center Local Treasurers Office Municipal Development Council Municipal Development Fund Municipal Monitoring and Evaluation Committee Maintenance and Other Operating Expenses Municipal Planning and Development Office National Government Agency
v

NGO NIA ODA PNP PO PPA PS SB SEC

Non-governmental Organization National Irrigation Administration Official Development Assistance Philippine National Police Peoples Organization Program, Project, Activities Personal Services Sangguniang Bayan Securities and Exchange Commission

vi

SB ORDINANCE

vii

viii

ix

Chapter 1 INTRODUCTION

The Local Development Investment Program (LDIP) is a program to allocate the investible portion of the annual general fund budget for funding the development programs, projects and activities identified in the Comprehensive Development Plan (CDP). The LDIP is coterminous with the CDP. It has a time frame of three (3) years broken down into annual streams of fund allocation for projects determined to be of high priority by the incumbent officials in consultation with various stakeholders. A guide to public spending, the LDIP is intended to result in increased socio-cultural well-being of the residents as well as accelerate local economic development by eliciting and orchestrating desired private sector investments.

1.1

The Local Development Investment Programming Process

There are three streams of activities: preparing the final project list, financial analysis and projection, and matching the results to decide on the proper approach to fiscal programming and management. Those who attended the LDIP workshop were members of the Municipal Development Council (MDC) and its Sectoral Committees. The LDIP procedural flow is described briefly in Figure 1.1.

1.1.1 Preparing the Final Project List The final lists of projects to be implemented were derived from the CDP. However, opportunities are still open for additional project ideas particularly from the sectors of society that were not properly represented in various aspects and stages of the planning process. Projects were screened and evaluated on the basis of their potential contribution to the realization of the long-term goals and their consistency with the preferred spatial strategy or urban form. Cost estimates were made for each project.

1.1.2 Financial Analysis and Projection The financial performance of the LGU for the past years was analyzed by the Municipal Planning and Development Office (MPDO). Then, on the basis of past trends, the funds that are likely to become available from regular and recurring sources were projected for each year of the programming period. The funds available for public investments are those funds not earmarked for personal services, office maintenance and operations, debt servicing, mandatory reserves and other statutory obligations.

1.1.3 Fiscal Management The projected total funds available for investment were matched with the total funds required to implement the projects in the final list. The funding requirements exceeded the available funds, so the LDC or the Sanggunian may adopt any or a combination of the following options: a. Trim down the final list further, starting from the bottom of the ranked list until the cumulative total cost matches with the available funds. b. Retain the project list and program the augmentation of the projected funds by: i. ii. iii. Intensifying collection of revenue sources where the current collection efficiency is low, and/or Tightening the belt on non-essential expenditures. Enacting new revenue measures such as utilizing the special levies on private property, e.g. idle lands tax, special benefit assessment, and the like, or taxing new subjects and activities within the prescribed powers of the LGU.

c. Contract for loans and other forms of indebtedness as authorized in the Local Government Code. d. Privatize some projects or enter into joint venture arrangements.

1.2.

The LDIP and Annual Budgeting

With the 3-year LDIP already in place, the task of determining what programs and projects to fund in the annual general fund budget is simplified. A yearly batch of priority projects has been prepared, the total estimated cost of each batch of projects and project phase matches with the projected yearly stream of funds available for investment based on different assumptions. Thus, the indicative AIP of the next three years are already embodied in this document. All that needs to be done is for the MDC and the SB to validate and implement the projects through the budget.

1.3.

Investment Programming in the Future

The conservative approach of limiting the number of projects to those that can be funded out of regular revenues will, in the long run, turn out to be unacceptable because there are always more projects that need to be implemented than what available local funds can finance. In the future, the local officials might decide to take the bold option of augmenting resources in order to implement more and bigger projects. This can only be encouraged as the authority to do so have already been given in the Local Government Code.

1.4

The Structure of this Volume

The LDIP is normally made an integral part of the CDP. In this particular case, the LDIP has been prepared as a separate volume to facilitate reference by those who will use it most frequently, namely, the Municipal Development Council, the Local Finance Committee, Municipal Planning and Development Office (MPDO) and to some extent the Sangguniang Bayan. This volume comes in five main parts. After this introductory part: a. Part 2 deals with the process and output of program and project selection and prioritization; b. Part 3 presents the analysis of the financial capability and resources of the municipality and the projection of funds expected to become available for investment programming for the next 3 years; c. Part 4 prepares an indicative 3-year investment program based on the results of Part 2 and Part 3; d. Part 5 suggests various strategies and policies to augment the citys financial resources.

Figure 1.1 LDIP PROCESS AND DEVELOPMENT PLANNING-INVESTMENT PROGRAMMING-BUDGETING AND IMPLEMENTATION CYCLE
LOCAL DEVELOPMENT PLAN

1. DEVELOPMENT PLANNING

BDC, LCE, PO/NGO, NGA, ETC.

SUGGEST

PROJECT IDEAS AND PROPOSALS

2. INVESTMENT PROGRAMMING PREPARE (LTO)

(LPDO) SCREEN WITH TECHINCAL CRITERIA

5-10 YR. FINANCIAL STATEMENTS

ANALYZE, ESTIMATE (LFC)

PRELIMINARY LIST OF PROJECTS

LDC, EXCOM, LPDO DELIBERATE EVALUATE SELECT ESTIMATE COST. IMPROVE FISCAL MANAGEMENT

PROJECTED FUNDS FOR CAPITAL OUTLAYS FROM REGULAR SOURCES PROJECTED FUNDS FROM IMPROVED FISCAL MANAGEMENT

RANKED LIST OF PROJECTS

CUT

NO BORROW

LFC RECOMMENDS TO LCE AND LDC

PROJECTED FUNDS FROM PUBLIC BORRROWING, ETC

MATCHED?

TOTAL FUNDS AVAILABLE FOR PUBLIC INVESTMENT

YES LPDO PREPARE, LDC APPROVE AND ENDORSE

3 YR. INVESTMENT PROGRAM

RESOLUTION, ORDINANCES, ETC.

ANNUAL BUDGET IMPLEMENTATION

4

3. BUDGETING AND IMPLEMENTATION

Chapter 2 SELECTION AND PRIORITIZATION OF PROGRAMS AND PROJECTS

2.1

Random List of Selected Projects

After the Comprehensive Development Planning Workshops, the Local Development Investment Programming Workshop was set to yield a considerable number of project ideas which were translated into project briefs. Simultaneous sectoral workshops participated in by the members of the Municipal Development Council and its Sectoral Committees were conducted for the initial project screening. This project screening was done to consolidate repetitive and redundant proposals, reject obviously impractical or undesirable project proposals, and screen out projects that are more appropriately implemented by other agencies/organizations. To determine projects that fall under the responsibility of the municipality, the enumeration of devolved functions and services as per Section 17 of the Local Government Code was used as a template. A list of selected projects classified according to sectoral themes prepared Sectoral Committees facilitated by the Municipal Planning and Development Office, is shown below. Projects are also classified into soft and hard categories. A hard project, unlike a soft one, involves the acquisition and use of land and entails the construction of physical structures.

2.1.1 Social Development Sector a. Malinong kag Matawhay Ka Leganes Project b. Health and Nutrition Program in Day Care Centers, Schools and in Communities c. Improvement of the Municipal Water System d. Cross-sectoral Welfare and Development Program e. Street Lighting Project f. Construction of Barangay Health Centers g. Leganes Pabahay sa Mahirap Program h. Sports Development Program i. Public Employment Program j. Completion of Saad Park k. Disaster Risk Preparedness, Relief and Recovery Program l. Fitness and Healthy Lifestyle Program

2.1.2 Economic Development Sector a. b. c. d. Rehabilitation/Construction of Farm to Market Roads Improvement of the Leganes Commercial Complex (LCC) Integrated Crop Production Program Livestock Support Program
5

e. Establishment and operation of Leganes Training and Competency Enhancement Center (LTCEC) f. Completion of Farmers Information and Technology Services (FITS) Center g. Fabrication of Collapsible Table for Transient Vendors h. Leganes Commercial Complex (LCC) Loan Payment i. Climate Change Adaptation Program for Agriculture

2.1.3 Environmental Management Sector a. b. c. d. e. f. g. Basura ko, atipanon ko Solid Waste Management Program Establishment, Rehabilitation, and Protection of Ecological Parks Beautiful Leganes An Urban Greening Project Less Vulnerable Leganes Program Program on Coastal Resource Management (CRM) Zero Carbon Footprint Project Rehabilitation, protection and preservation of municipal watershed and water resources h. Preservation and protection of air quality in identified air shed

2.1.4 Physical Development Sector a. b. c. d. e. f. g. Improvement of Drainage System Construction of cut-off channel connecting the Buntatala and Gui-gui Creek Construction of breakwater in Barangays Camangay and Bigke Construction of centralized tricycle terminal Provision of road signs Rehabilitation of concrete road along Sandoval Street Various Infrastructure Projects in the Barangays

2.1.5 Institutional Development Sector a. b. c. d. e. f. g. h. Construction of a separate legislative building Publication of newsletter Barangay Performance Management System (BGPMS) and Data Banking Premyo sa Resibo Pasidungog Project Workplace Improvement Project Codification Program Strengthening of Disaster Risk Reduction and Management Efforts

2.2

Ranked List of Projects

After project screening, the selected projects were subjected to a ranking process using goal achievement matrix. The process assured a high degree of participation by the members of the Municipal Development Council and its Sectoral Committees, and the Sangguniang Bayan. The problem tree in the Comprehensive Development Plan was transformed into an objective tree, and was used as evaluation criteria in the goal achievement matrix. The format of the matrix is given below. Table 2.1 SAMPLE FORMAT OF THE GOAL-ACHIEVEMENT MATRIX Goals Weight (%) Programs/Projects/Activities 2 3 PPA 2 PPA 3 Rate Score Rate Score

1 PPA 1 Rate Score

n PPA n Rate Score

1 Goal 1 2 Goal 2 3 Goal 3 4 Goal n TOTAL

100%

Based on the perceived importance of each goal to the interests of the sector, each group assigned weights to each goal. The numerical total of the weights should be 100%. Subsequently, each proposed project was rated using the following rating scale: 3 2 1 0 -1 -2 -3 Project contributes greatly to the fulfillment of goal Project contributes moderately to the fulfillment of goal Project contributes slightly to the fulfillment of goal Project does not contribute to the fulfillment of the goal Project slightly inconsistent of the goal Project moderately inconsistent of the goal Project greatly contradicts the goal

The rating was multiplied by the corresponding weight of the goal and the product score was entered in the appropriate cell. The scores were summed algebraically up for each project proposal. Then all sectoral group scores were added.

The projects are finally rearranged according to their total scores. The project with the highest total score is ranked as number one, the next number two, and so on, as shown in Table 2.2. Table 2.2 SUMMARY OF RANKINGS AND SCORES Rank PPA 1 Malinong kag Matahum Ka Leganes 2 Basura ko, atipanon ko Solid Waste Management Program 3 Proper Information Dissemination and Nutrition Program in Day Care Centers, Schools and in Communities for Proper Health Habits 4 Community Resource Welfare and Development 5 Construction/rehabilitation of Municipal Water System 6 Establishment of Cross-sectoral Welfare and Development Program 7 Rehabilitation, protection and preservation of municipal watershed 8 A Leganes Emergency Response Team (ALERT) 9 Rehabilitation, establishment and protection of Ecoparks (Nabitasan Dumpsite; mangrove protected areas; Municipal Ecopark) 10 Publication of newsletter 11 Legislation on social welfare laws Advocacy/lobbying 12 Trainings and seminars for the reorganization of Barangay Council for the Protection of Children (BCPC) 13 Disaster preparedness program for LGU personnel 14 Bulate Alis at Tugis 15 Beautiful Leganes Program 16 Farmers Symposium on Organic Farming and Climate Change Mitigating Practices 17 Construction/improvement of drainage system 18 Inventory, implementation and monitoring of local industries regarding anti pollution control measures (e.g., sewerage treatment plant, disposition of solid and special wastes, etc.) 19 Provision of streetlights 20 Implementation of the barangay performance management system (BGPMS), and maintenance and updating of barangay database 21 Less Vulnerable Leganes Program 22 Rehabilitation/construction of FMR 23 Construction of barangay health centers 24 Beautiful Leganes Program 25 Access road improvement of open dumpsite 26 Program on Coastal Resource Management (CRMP) 27 Preservation and protection of air quality in identified air shed within the jurisdiction of the municipality 28 Rehabilitation of the Livelihood Center Score 45.68 45.12 44.92 43.71 43.51 42.33 41.71 40.89 40.58 40.53 39.52 38.85 38.08 37.48 37.06 36.48 35.88 34.87

33.79 33.70 33.54 32.40 32.26 30.50 30.16 30.06 29.96 29.35

Rank PPA 29 Construction of cut-off channel connecting the Buntatala River and Guigui Creek (Phase I) 30 Creation of Bantay Dagat 31 The Great Filipino workout Physical fitness program 32 Trainings and Seminars for Agricultural Technologists (ATs) 33 Improvement/repair and maintenance of the Leganes Commercial Complex 34 Organic Rice Production 35 Acquisition of generator set 36 Creation and/or establishment of Environment Protection Office with Municipal Environment Officer 37 Relocation site for informal settlers 38 Construction of wave breakers along the coastal area of Barangays Camangay and Bigke 39 Palay Seed Production Program 40 Livestock Support Program 41 Vegetable Seed Distribution 42 Construction of centralized tricycle terminal 43 Establishment of Leganes Training and Competency Enhancement Center 44 Completion of Farmers Information and Technology Services 45 Establishment of Trichoderma Laboratory 46 Construction/fabrication of 100 units collapsible table for transient vendors (1.2x2 m) 47 Rehabilitation of concrete road along Sandoval Street 48 Palay Check Demo 49 Provision of road signs (e.g., pedestrian lane, etc.) along the main highway 50 Identification and replacement of two-way communication facility 51 Zero Carbon Footprint Project 52 Premyo sa resibo 53 Pasidungog 54 Construction of a separate legislative building 55 Workplace improvement 56 Construction of a separate administrative building 57 Completion of Saad Park (Phase III) 58 Purchase of lot for the multi-purpose building of Barangay Buntatala

Score 28.84 28.55 27.47 27.24 26.78 26.73 26.71 26.48 25.50 24.82 24.57 23.89 23.50 23.40 22.14 22.01 21.71 21.47 20.76 20.53 19.96 18.90 18.64 16.33 16.14 14.87 14.21 13.64 13.28 6.83

Chapter 3 ANALYSIS OF LOCAL FISCAL CAPABILITY

A parallel stream of activities was undertaken by the Municipal Planning and Development Office to determine the extent of the financial resources of the municipality coming from regular revenue sources for investment programming for three years (CY 2012 to 2014). The revenue performance of the municipality for the last three years was analyzed, including the Internal Revenue Allotment (IRA). The pattern of expenditures for the last three years was also analyzed focusing on the class expense (personal services, maintenance and other operating expenditures and capital outlay). The total revenue and total expenditures were then matched to determine whether the municipality realized surpluses or incurred deficits for the last five years.

3.1

Past Revenue Performance Table 3.1 ACTUAL INCOME AND GROWTH RATE
Year Growth 2009 Rate 3,005,003.11 -12.28% 1,276,215.44 -7.45% 38,655,397.00 11.10% 5,281,952.25 48,218,567.80 14.56% 9.07% Growth Rate 12.31% 55.23% 7.08% 3.56% 8.30%

Account Title Tax Revenue Non-tax Revenue External Source (IRA) Operation of Economic Enterprise TOTAL

2008 3,425,707.82 1,378,886.65 34,794,306.89 4,610,749.03 44,209,650.39

2010 3,374,987.42 1,981,081.47 41,393,261.00 5,470,190.92 52,219,520.81

Figure 3.1 ACTUAL INCOME FOR THE PAST THREE YEARS, CY 2008 TO 2010

60,000,000.00 50,000,000.00 40,000,000.00 30,000,000.00 20,000,000.00 10,000,000.00 0.00 2008 2009 2010

Tax Revenue Non-tax Revenue External Source (IRA) Operation of Economic Enterprise Total Annual Income

10

For the period 2008 to 2009, the income of the municipality has grown by 9.07% and in 2010 it has gone down to 8.30%. Despite a slow down in the revenue growth rate, the income of the municipality has steadily been increasing from P 44,209,650.39 in 2008 to P 52,219,520.81 in 2010. When the income composition was scrutinized, it was observed that in 2008 the IRA composes 78.70% of the total income, in 2009 it increase to 80.17% but dropped to 79.27% in 2010. For the past years, the municipal revenue comprised mainly of IRA which happened to be the biggest component of the total revenue and those generated from local sources. The local sources include taxes on goods and services, government services, government business operations and other local sources. Table 3.2 COMPOSITION OF ACTUAL INCOME
Year 2009 Participation Actual Rate 3,005,003.11 6.23% 1,276,215.44 2.65% 38,655,397.00 80.17%

Account Title Tax Revenue Non-tax Revenue External Source (IRA) Operation of Economic Enterprise TOTAL

2008 Participation Actual Rate 3,425,707.82 7.75% 1,378,886.65 3.12% 34,794,306.89 78.70%

2010 Participation Actual Rate 3,374,987.42 6.46% 1,981,081.47 3.79% 41,393,261.00 79.27%

4,610,749.03 44,209,650.39

10.43% 100.00%

5,281,952.25 48,218,567.80

10.95% 100.00%

5,470,190.92 52,219,520.81

10.48% 100.00%

Table 3.3 COLLECTION EFFICIENCY RATE

Year 2008 Account Title Tax Revenue Non-tax Revenue External Source (IRA) Subsidy from Other Funds Operation of Economic Enterprise TOTAL Estimated 2,802,954.46 1,162,348.05 Actual 3,425,707.82 1,378,886.65 Collection Rate 122.22% 118.63% Estimated 3,530,000.00 1,663,000.00 2009 Actual 3,005,003.11 1,276,215.44 Collection Rate 85.13% 76.74% Estimated 4,255,000.00 1,813,000.00 2010 Actual 3,374,987.42 1,981,081.47 Collection Rate 79.32% 109.27%

25,807,338.00

34,794,306.89

134.82%

33,269,894.00

38,655,397.00

116.19%

40,668,009.00

41,393,261.00

101.78%

280,485.00

6,345,869.00 36,118,509.51

4,610,749.03 44,209,650.39

72.66% 122.40%

6,395,000.00 44,857,894.00

5,281,952.25 48,218,567.80

82.60% 107.49%

6,003,630.00 53,020,124.00

5,470,190.92 52,219,520.81

91.11% 98.49%

11

As depicted in Table 3.3, the LGUs collection efficiency rate in general is declining. In 2008 it has exceeded its target collection by 22.40% and in 2010 it did not met its target collection. A closer look at Table 3.3 shows that the operation of economic enterprises and the non-tax revenue collection has increased while the rest of the income sources have declined.

3.2

Past Expenditure Patterns

Table 3.4 presents the increasing municipal expenditure from P 36,471,551.37 in 2008 to P 52,505,053.84 in 2010 with a growth rate of 27.24%. The annual growth rate in the three-year period from 2008 to 2010 registered an increasing trend. Table 3.4 EXPENDITURE GROWTH RATE
Year Growth Rate -6.82% Growth Rate 16.28%

Account Title General Fund Personal Services Maintenance and Other Operating Expenditures Capital Outlay (long-term obligations and equipments) Statutory Obligations Calamity Fund Development Fund TOTAL

2008 P28,154,133.52

2009 P26,233,653.73

2010 P30,503,980.36

4,268,221.76

6,404,002.55

50.04%

9,192,689.56

43.55%

4,049,196.09 P36,471,551.37

1,030,889.47 7,596,114.54 P41,264,660.29

87.60% 13.14%

2,862,231.77 256,491.38 451,596.00 9,238,064.77 P52,505,053.84

177.65% 21.62% 27.24%

3.2.1 Expenditure by Class Expense As shown in Table 3.4, municipal expenditure for personal services was P 28,154,133.52 in 2008 which grew to P 30,503,980.36 in 2010. There was an increasing trend from 2008 to 2010. A decline was recorded between 2008 and 2009 from P 28,154,133.52 to P 26,233,653.73, respectively. Expenditure for personal services (PS) was the biggest class expense in comparison with the maintenance and other operating expenses (MOOE) and capital outlay (CO). From 2008 to 2010, an average of P 6,621,637.96 was spent on MOOE. From P 4,268,221.76 in 2008, expenditure for maintenance and other operating expenses increased to P 9,192,689.56 although growth rate has decreased to 43.55% from 50.04% in 2009.
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Capital outlay registered an expenditure of P 1,030,889.47 in 2009 which soared to P 2,862,231.77 in 2010 with a growth rate of 177.65%. A significant growth rate decrease was observed in disbursements of the 20% development fund. It dropped from 87.60% growth rate in 2009 to a mere 21.62% in 20010.

3.2.2 Allotment Balance From 2008 to 2010, the allotment utilization rate of the municipality is high. In 2008 and 2010, it has recorded a near 100% utilization rate while the lowest was in 2009 with 89.66%. Table 3.5 ALLOTMENT UTILIZATION Year 2008 2009 2010 Appropriation (Php) Actual Expenditure (Php) Utilization Rate 36,502,043.00 36,471,551.37 99.92% 46,023,365.60 41,264,660.29 89.66% 53,165,174.40 52,505,053.84 98.76%

3.2.3 Comparison of Income and Expenditure Table 3.6 shows that from 2008 to 2009, the municipalitys total income is generally bigger than its total expenditure. In 2010, the municipality has recorded a deficit of P 285,533.03 although this is due to the disbursements of previous years continuing appropriation. The biggest surplus was recorded at P 7,738,099.02 in 2008. Based on the growth rates in Table 3.6, annual spending generally increases at a faster rate than the annual revenue generated. The largest growth rate recorded during the three year period was that of the 2010 expenditure with 27.24%. Table 3.6 COMPARATIVE GROWTH OF INCOME AND EXPENDITURE Total Revenue Annual and Receipts Growth Rate (Php) (Percent) 44,209,650.39 48,218,567.80 9.07% 52,219,520.81 8.30% Total Annual Expenditure Growth Rate (Php) (%) 36,471,551.37 41,264,660.29 13.14% 52,505,053.84 27.24% Surplus/ (Deficit) (Php) 7,738,099.02 6,953,907.51 -285,533.03

Year 2008 2009 2010

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3.3

Projected Income

The geometric method of projection was employed in the income projections in Table 3.7. The municipal revenue is expected to increase to P 56,853,073.47 in 2012, P 62,357,824.74 in 2013 and P 69,087,415.85 in 2014. Table 3.7 INCOME PROJECTION Year 2013 2014 P 4,256,966.26 P 4,780,998.80 4,773,654.32 7,410,143.60 47,460,818.69 50,821,044.66 5,866,385.47 6,075,228.79 P62,357,824.74 P 69,087,415.85

Account Title Tax Revenue Non-tax Revenue External Source (IRA) Operation of Economic Enterprise TOTAL

2012 P 3,790,371.52 3,075,213.76 44,322,766.80 5,664,721.39 P56,853,073.47

The Internal Revenue Allotment (IRA) which is the biggest component of the total city revenue is expected to increase steadily at a very conservative rate. The IRA which is a share from the national internal revenue collections of the Bureau of Internal Revenue follows a predetermined formula. The amount of IRA is distributed in two stages: 1) among the four types of local government units (province, 23%; cities, 23, municipalities, 34%; and barangays, 20%); and 2) based on the three weighted criteria (population, 50%; land area, 25%; and the remaining 25% to be distributed equally). The projected income from the local sources is expected to increase to P 12,530,306.67 in 2012, P 14,897,006.05 in 2013 and to P 18,266,371.19 in 2014. A much more significant increase can be expected if and when the Local Tax Code is updated.

3.4

Analysis of Local Fiscal Capability

The parallel stream of activities estimating cost for identified development projects and analyzing the financial resources coming from the regular sources primarily aims to determine whether the municipality is capable of meeting its regular obligations and financing its development programs identified in the Comprehensive Development Plan. This essentially determines the financial resources available for investment programming. To arrive at the desired figures, intermediate assessments were made of the municipalitys revenue performance and patterns of expenditure for the last three years (2008 to 2010). The total revenues and total expenditures were then matched to determine the surpluses derived or deficits incurred for the last three years. Thereafter, future revenues and expenditures were projected using the geometric method of projection.
14

The balances representing total funds available for investment programming were derived using the estimate for annual development funds on the 20% of the projected IRA as depicted in Table 3.8. This method is based on Section 287 of the Local Government Code, which provides that each local government unit shall appropriate in its annual budget no less than 20% of its annual IRA for development projects. If the total available funds to be invested on local development programs and projects will be based on the projected income from IRA only, the development funds from 2012 to 2014 will be limited to P 8,864,553.36 in 2012, P 9,492,163.74 in 2013, and P 10,164,208.93 in 2014. Some of the programs and projects not chargeable in the development fund, based on DILG-DBM Joint Memorandum Circular No. 2011-1 dated April 13, 2011, will be funded by the general fund in its capital outlay or in its maintenance and other operating expenditures. Table 3.8 PROJECTED IRA AND 20% FOR DEVELOPMENT PROGRAM AND PROJECTS Year 2012 2013 2014 Projected IRA (Php) 44,322,766.80 47,460,818.69 50,821,044.66 20% of IRA (Php) 8,864,553.36 9,492,163.74 10,164,208.93

15

Chapter 4 INDICATIVE THREE-YEAR INVESTMENT PROGRAM

Guided by the LDIP process and Planning-Budgeting Cycle, an indicative threeyear investment program was prepared. The results of the analysis of financial capability and the ranking of the programs/projects were considered in the programming process. The total available funds for investment programming are derived using the method discussed in the previous chapter. Basically, programming and budgeting takes into consideration three factors: 1) ranking based on the sectoral goals; 2) phasing of the projects identified for a three-year planning period; and 3) type of projects.

4.1

Investment Streams

The results of the analysis of financial capability reflect that the Municipal Government can expect a minimum total investment stream of P 28,520,926.03 or annual average of P 9,506,975.34 based on the 20% development fund projections.

4.2

Investment Programming and Budgeting

The Municipal Development Council and its Sectoral Committees and other local government officials representing the executive and legislative branches participated in the workshop that identified and ranked the programs and projects to be implemented for three years (2012-2014). The ranking based on GAM results, phasing of the projects and estimated costs as indicated by the proponents were considered in investment programming and budgeting.

4.3

Matching of Fund Requirements with Projected Funds Available

The total estimated cost of the programs and projects proposed for implementation for 2012 to 2014 reached P 130,085,995.80 which is unlikely to be covered by the available funds for investment. Given this unbalanced situation the municipality has a number of options to consider and take, namely: a. To cut down on the number of projects; b. Augment available resources through improved fiscal management (i.e., intensified revenue generation/collection and judicious expenditure management); and c. Augment available funds by other financing options such as public borrowing and other forms of partnership with other national agencies and the private sector.

16

Table 4.1 LOCAL DEVELOPMENT INVESTMENT PROGRAM, 2012 TO 2014

PPA Malinong kag Matawhay Ka Leganes Basura ko, atipanon ko Solid Waste Management Program Health and Nutrition Program in Day Care Centers, Schools and in Communities Construction/rehabilitation of Municipal Water System Cross-sectoral Welfare and Development Program Rehabilitation, establishment and protection of Ecoparks (Nabitasan Dumpsite; mangrove protected areas; Municipal Ecopark) Beautiful Leganes an Urban Greening Program Construction/improvement of drainage system Provision of streetlights Less Vulnerable Leganes Program Rehabilitation/construction of FMR Various Infrastructure Projects in the Barangays Construction of barangay health centers (Nabitasan, Napnud, Gua-an) Program on Coastal Resource Management (CRMP) Construction of cut-off channel connecting the Buntatala River and Guigui Creek Creation/Capacity Building of Bantay Dagat Improvement/repair and maintenance of the LCC DF 120,000.00 620,000.00 2012 DRRMF 2013 GF 2014 Other Sources

450,000.00

350,000.00

225,000.00

315,000.00

165,000.00

500,000.00

300,000.00 100,000.00

45,000.00 100,000.00

45,000.00 100,000.00

1,406,776.00 360,000.00 150,000.00

1,520,000.00 300,000.00 150,000.00 900,000.00

1,200,000.00 3,000,000.00 200,000.00 300,000.00

500,000.00 500,000.00 825,000.00 825,000.00

5,000,000.00

4,500,000.00

430,000.00

500,000.00

54,000,000.00

75,000.00 500,000.00 600,000.00

17

PPA Integrated Crop Production Relocation site for informal settlers (Phase II of Leganes Pabahay sa Mahirap Program) Construction of wave breakers along the coastal area of Barangays Camangay and Bigke Livestock Support Program Construction of centralized tricycle terminal Establishment and operation of Leganes Training and Competency Enhancement Center Completion of Farmers Information and Technology Services Center (Phase II) Construction/fabrication of 100 units collapsible table for transient vendors (1.2x2 m) Rehabilitation of concrete road along Sandoval Street Provision of road signs (e.g., pedestrian lane, etc.) along the main highway Zero Carbon Footprint Project Construction of a separate legislative building Completion of Saad Park (Phase III) LCC Loan Sports Development Program Public Employment Program Production of advisories/manuals on DRRM Stockpiling of food and medicines DF 450,000.00

2012 DRRMF

2013 GF 280,000.00

2014 230,000.00

Other Sources

20,000,000.00

3,000,000.00

266,000.00

266,000.00 250,000.00

266,000.00

500,000.00

500,000.00

400,000.00

400,000.00

500,000.00

500,000.00 50,000.00

1,000,000.00 5,000,000.00 500,000.00 3,026,234.00 200,000.00 80,000.00 50,000.00 3,000,000.00 3,000,000.00

200,000.00

18

PPA DF Active Leganes Emergency Response Team (ALERT); emergency drills on disaster preparedness for schools, LGU, market and barangays Conduct/facilitate participatory risk assessment and contingency planning; massive information drive/public awareness campaign, advocacy Farmers Symposium on Organic Farming and Climate Change Mitigating Practices Integrated surveillance, mitigation and response on climate-sensitive waterborne and vector diseases Purchase of base radio for PNP Patrol (Toyota Hilux) Inventory, implementation and monitoring of local industries regarding anti pollution control measures (e.g., sewerage treatment plant, disposal of solid and special wastes, etc.) Various rescue equipments and supplies Improvement/conversion of DAR Office into stockroom for the stockpiling of disaster risk reduction equipments and relief goods Establishment of a weather-based dynamic cropping calendar and the development of climate change sensitive agricultural technology Establishment of rainwater harvesting facilities; advocacy for climate change adaptation

2012 DRRMF 150,000.00

2013 GF 150,000.00

2014 150,000.00

Other Sources

100,000.00

40,000.00

615,000.00

30,000.00 20,000.00

176,699.36 300,000.00

145,701.00

500,000.00

19

PPA DF Quick response and other relief and recovery programs Repair /reconditioning of Hyundai Patrol Rehabilitation, protection and preservation of municipal watershed and water resources Transparency and accountability in governance (Publication of newsletter) CiCha implementation Codification Program of Socio-economic laws Implementation of the barangay performance management system (BGPMS), and maintenance and updating of barangay databank Preservation and protection of air quality in identified air shed within the jurisdiction of the municipality Fitness and Healthy Lifestyle Program Premyo sa resibo Pasidungog Workplace improvement Development assistance for volunteers TOTAL

2012 DRRMF 763,585.44

2013 GF

2014

Other Sources

80,000.00 30,000.00

200,000.00

200,000.00

200,000.00

100,000.00 40,000.00

30,000.00

33,000.00 120,000.00 55,000.00 80,000.00 100,000.00 8,604,010.00 2,545,284.80 738,000.00

18,000.00 120,000.00 55,000.00 100,000.00 13,724,701.00

18,000.00 120,000.00 55,000.00 100,000.00 8,524,000.00 95,950,000.00

20

Chapter 5 IMPLEMENTATION STRATEGIES AND POLICIES

5.1

Relevant National Strategies and Policies

Article II of the 1987 Constitution provides that the State shall ensure the autonomy of local governments, encourage non-governmental, community-based or sectoral organizations that promote the welfare of the nation, and maintain honesty and integrity in public service. Pursuant to the constitutional mandate, the Local Government Code of 1991 lays down the State policies on local autonomy and operative principles on which local government concerns are anchored, specifically in its Sections 2 and 3. Among the operative principles of decentralization that directly relate to local development investment programming are as follows: a. There shall be established in every local government unit an accountable, efficient, and dynamic organizational structure and operating mechanisms that will meet the priority needs and service requirements of its communities; b. Subject to civil service law, rules and regulations, local officials and employees shall be paid wholly or mainly from local funds; and c. The realization of local autonomy shall be facilitated through improved coordination of national government policies and programs and extension of adequate technical and material assistance to less developed and deserving local government units. Section 129 of RA 7160 provides that each local government unit (LGU) shall exercise its power to create its own sources of revenue and to levy taxes, fees, and charges subject to the provisions of the Code and consistent with the basic policy of local autonomy. Considering the entitlement share of 40% of the Bureau of Internal Revenue (BIR) collections of the third preceding year, it is recognized that the allotment system has made the local government units dependent on the national government for resources. Conversely, the LGUs acknowledge the ramification of heavy dependence on IRA. Recognizing the inequitable sharing system, uncertain receipt and inelastic nature of IRA, the Municipality of Leganes is encouraged to maximize its taxing powers and other revenue-raising powers as a corporate entity in order to finance its programs and projects. The fundamental principles that shall govern the local government in revenue generation are: a. Uniformity among local government units; b. Taxes, fees, charges and other impositions shall be equitable and based as far as practicable on the taxpayers ability to pay; be levied and collected only for public purposes; not be unjust, excessive, oppressive, or confiscatory; not be contrary to law, public policy, national economic policy, or in restraint of trade;
21

c. The collection of local taxes, fees, charges and other impositions shall in no case be let to any private person; d. The revenue collected pursuant to RA 7160 shall inure solely to the benefit of, and be subject to disposition by, the local government unit levying the tax, fee, charge or other imposition unless otherwise specifically provided therein; and e. Each LGU shall, as far as practicable, evolve a progressive system of taxation. The Administrative Code of 1987 likewise provides that, The State shall ensure the autonomy of local governments. For this purpose, it shall provide for a more responsive and accountable local government structure instituted through a system of decentralization. The allocation of powers and resources to local government units shall be promoted and inter-local government grouping, consolidation and coordination of resources shall be encouraged. The Code of Conduct and Ethical Standards for Public Officials and Employees (RA 6713) upholds the time-honored principle of the public office as a public trust. It states the policy of the State to promote a high standard of ethics in public service and stresses that public officials shall at all times be accountable to the people and shall discharge their duties with utmost responsibility, integrity, competence, and loyalty, and act with patriotism and justice, lead modest lives, and uphold public interest over personal interest.

5.2

Improving Local Fiscal Management

5.2.1 Becoming a Self-Reliant LGU As mandated by the Local Government Code, the municipality shall seek nontraditional revenue sources in the form of joint-venture, build-operate transfer schemes, among other forms of public-private partnership or avail of credit facilities in developing projects. The Build-Operate Transfer law (R.A. 7718) and its implementing rules and regulations, and other legal bases to guide LGUs in becoming innovative in their local fiscal administration. The municipality must be resourceful and creative in tapping potential revenue sources. Revenue generation must not be limited to local taxation. The local government may resort to undertaking business ventures or partnership with the private sector to generate income. All these attempts to widen sources of local income must be within the limits of existing laws. The municipality should be committed in increasing revenues from local sources such as the real property tax, business tax, economic enterprises, fines and fees, among other sources. Fees in securing locational clearance, copies of tax declarations, tax maps, among others may also be increased within the limits of existing laws and in accordance with the rules and regulations set by the Department of Finance. It must be noted that the
22

increased local taxes must not be excessive, oppressive, or confiscatory. Just basis of local taxation must be taken into consideration in revising the Local Tax Code and in formulating the Local Market Code in order to incorporate appropriate changes in the local tax base. Monitoring and enforcement of laws must be undertaken to ensure that taxpayers pay on time and in accordance with law and based on truthful basis (e.g., basis of business tax and real property tax, etc.). Meanwhile, delinquent taxpayers may be given amnesty through discounting interests on penalties to encourage updating of payments. It must be noted that there are taxpayers who find it more difficult to pay accumulated arrears and imposing additional charges would further disallow them from paying their obligation. Taxes are good sources of government revenue. However, excessive tax impositions oppress people and intensify violations rather than encourage obedience to government laws. Revenue collection should also take into consideration appropriate changes in the institutional structure, particularly in the organizations that perform revenue collection, monitoring and enforcement functions. Offices must be appropriately provided with competent human resources, work environment and facilities/technology, which are essential for the concerned organizations to be efficient and effective in revenue collection, monitoring and enforcement.

5.2.2 Attaining Financial Stability Guided by the Budget Operations Manual for LGUs, the municipality shall endeavor to have a balanced budget in each fiscal year of operation. The Local Government Code already empowers the LGUs to source more funds to finance their programs and projects. The local government shall undertake necessary measures so as not to incur a budget deficit by avoiding the charging of expenditures to the wrong accounts and overspending in certain expense accounts. Besides increasing its revenue base, the municipality needs to rationalize local spending. This is by practicing sound fiscal management in terms of intensifying revenue tax base sources and by judicious spending in order to optimize the share of capital outlays, or the development fund. Rational spending also involves ranking or prioritization of projects and other items of expenditure. With the Local Development Investment Program, the municipality has screened, evaluated, ranked and prioritized items of expenditure. Identical projects and those which may be funded by external sources such as from the national, regional or provincial agencies are identified to avoid unnecessary duplication.

23

5.2.3 Funding Augmentation by Borrowing LGU financing options have become extensive due to devolution as mandated by the Local Government Code. Apart from local revenues, public borrowing may be resorted to as an alternative option to source out funds for local projects. This is a progressive measure to achieve development goals with utmost consideration for the capability of the municipality to implement the projects. The rationale for resorting to this alternative should be well-guided considering the long term impact of the undertaking on the socio-economic being of the municipality and its people as well as the financial soundness of the undertaking. The LGU should ensure that any undertaking to be entered into with the private sector shall put forward the interest of its constituents. The different options that may be employed by the LGU to augment its locally generated resources are illustrated in Figure 5.1 and Table 5.1 describes the salient features of the different LGU financing options for projects that are deemed to be self-liquidating. Figure 5.1 LGU FINANCING OPTIONS
LGU Financing Options

Internal Revenue Allotment (IRA)/ Local Revenues

Official Development Assistance (ODA)

Private Financing

Borrowing

Multilaterals Direct Loans

MDF (PD 1914)

Bilateral

BOT

Bond Flotation

Public

Private

Pension Funds GFIs

Commercial Banks Others

24

Table 5.1 LGU FINANCING OPTIONS FOR PROJECTS Option LGU-Financial and Management Salient Features Scheme Operational Arrangement The LGU finances the LGU then establishes a profit center investment from its income and (within the LGU with a separate other resources available to it cost accounting system). Under this (e.g., IRA, locally generated arrangement, LGU directly from tax and non-tax sources) manages the operations of the system. The LGU assumes the commercial risk. The LGU finances the The LGU maintains a profit center investments and directly (within the LGU) and assumes the operates and manages the commercial risk. system. It enters into contract with a private party to undertake billing and collection to users and/or repair and maintenance activities for a fee. The LGU finances the It enters into a contract with a investment. private party to manage the system. Private party collects the user charges/tariff set by the LGU, operates and manages the system and in turn, is paid a management fee by the LGU. The LGU maintains a profit center (within the LGU) and assumes the commercial risk. The LGU may form a company The LGU appoints the board to handle the provision of the members to be selected from the service. The company shall be private sector who would then duly registered with the manage the company along Securities and Exchange commercial principles. Commission (SEC) and shall have shareholdings, which can be sold to the private sector in the future. Under the BOT scheme, the The private party is allowed to private sector finances the collect user fees to recover its costs investment, operates it for a and earn a reasonable rate of return certain period of time after on its investment. The LGU and the which the asset is transferred to BOT proponent negotiate on the the LGU. risk-taking.
25

Service Contract

Management Contract

LGU Company

BOT and any of its variants (R.A.6970 as amended)

Option Joint Venture Agreement

Lease Contract

Concession Contract

Salient Features Scheme Operational Arrangement The LGU and the private party share in the risks of the project, and operate the system through a shared management and organizational structure. The LGU finances the capital The private sector assumes the expenditures and lease the commercial risks and the facility to the private sector. responsibility for operation and maintenance. To recover it costs, the private party is allowed to collect the user fees as well as any other charges in behalf of the LGU. The LGU enters into a contract The private party is allowed to with a private party to operate the system and to collect undertake the investment. The user fees to recover its cost and private party assumes the assets earn a reasonable return on its of the LGU and undertakes to investment. After the contract expand the services according expires, the system reverts to the to the terms and conditions of LGU or may be contracted out the contract. against the LGU.

5.2.4 Privatization d. Objectives of Privatization i. To enable the private sector/NGO/PO to get involved in local governance; ii. To strengthen government-private sector-NGO partnership in the delivery of basic services; iii. To create business opportunities for private entrepreneurs; iv. To enable the local government unit to focus its resources and attention to other equally urgent matters affecting development; and v. To improve efficiency and effectiveness in service delivery. e. Advantages of Privatization i. Generates much-needed revenues for the LGU with the increased participation of private/NGO entrepreneurs; ii. Provides LGUs opportunity to expand service delivery; iii. More economic schemes are used in providing basic services; iv. Greater satisfaction is derived by the citizenry; and v. Hastens people empowerment through active involvement in local affairs.
26

f. Reasons for Delegating Responsibilities to Private Sector and NGOs in the Provision of Urban Services i. Substantial cost savings have resulted after privatization; ii. The mobilization of community groups, NGOs, and private firms to provide services that traditionally have been the responsibility of public government; iii. Many government functions are performed in a noncompetitive environment which can result in slackness and general efficiency, misuse of resources, lack of responsiveness to the needs of consumers and to technological change, and low levels of productivity; iv. Private sector involvement in the provision of public services through contracting, or tendering, use of vouchers, and liberalization can introduce the benefits of competition into areas previously dominated by government monopoly; v. The public sector is slower to adopt new technology. Public sector organizations are more resistant and less responsive to change in consumer demands and the relative costs of the factors of production. Labor intensive levels are sometimes not adjusted downward with the adoption of new technology, and other labor absorption practices; vi. Decision making in the private sector is driven by economic factors that reflect consumers demand for goods and services and their willingness to pay for them. Many public sector decisions are made on political criteria based on factors related to the attempts to gain political advantages; vii. The impact of decisions on marginal electorates and on government popularity with swing voters and interest groups is often more important than the realities of supply and demand and the need for cost-recovery pricing policies for public goods and services; and viii. Political decision-making can lead to the misallocation of public funds to secure political ends rather than provide efficient public services. d. General Reservations about the Privatization Policy i. ii. iii. iv. v. vi. vii. viii. ix. Unemployment may be exacerbated; Prices of public services might be unaffordable to low income groups; Servicing remote or unprofitable areas might be neglected; Wage levels and working conditions may not improve; Opportunities for corruption; Service quality might be sacrificed in favor of profit seeking; Interest of disadvantaged groups may not be adequately attended to; Concentration of economic power; and Conversion of public monopolies into private monopolies.

27

Figure 5.2 FORMS OF PRIVATIZATION

PRIVATE SECTOR PARTICIPATION

Complete privatization involves transferring the ownership of a government enterprise to the private sector.

Partial privatization involves transferring a portion of the ownership of a government enterprise to the private sector; control may or may not be retained by the government depending on the percentage of the equity sold to the private sector; if the government retains more than 50 percent of the equity, it will maintain control over it.

Selective privatization- refers to the situation where the government sells or leases to the private sector selected parts of its operations or services while still retaining other operations or services under its ownership and control; distinct sections may be sold as complete entities; in some situations, two or more sections may by combined to make a viable entity for the private purchaser.

5.3

Institutional Development

5.3.1 Mobilizing Appropriate Structures The Municipality of Leganes shall reactivate and strengthen the capability of the Local Finance Committee (including the Municipal Assessor, Municipal Treasurer and representative of the private sector who shall assist the municipality in fund sourcing from the private sector). The Local Finance Committee shall be strengthened to guarantee that the LDIP becomes an established practice.

5.3.2 Morally Upright and Competent Municipal Government The municipality needs to have morally upright and competent public servants who are committed to put public interest at the forefront. Transparency, efficiency and accountability must be instituted in local fiscal administration. Public spending must be in compliance with COA rules and regulations and existing pertinent laws.

28

5.3.3 Simplified Procedures Application for local permits and other documents to be secured from the City Government shall be processed using simplified procedures. Without prejudice to check and balance in terms of disbursement of funds, the procedures shall likewise be simplified to prevent opportunities for graft and corruption.

5.4

Technical Capability

5.4.1 Project Development A number of projects identified in the LDIP cannot be implemented immediately. Some may be initiated in the later years of this programming period. The project briefs that were prepared, screened and evaluated represent only the first step in the project preparation stage. This means that the concerned projects still have to go through the various stages of project development as illustrated in Figure 5.3. The Municipal Planning and Development Office (MPDO) and other concerned departments shall build up their capability in project development as a prerequisite to the full implementation of the LDIP. Figure 5.3 PROJECT DEVELOPMENT PROCESS

PRE-INVESTMENT PHASE

INVESTMENT PHASE

POST-INVESTMENT PHASE

Project Preparation

Project Appraisal and Financing

Detailed Project Engineering

Project Implementation

Project Operation

Ex-Post Project Evaluation

FEEDBACK

5.4.2 Project Management Project implementation is part of the project development process which requires a specific skill altogether. The approaches to project implementation usually come in two ways: by contract and by administration. Whichever approach is selected, the local officials must be proficient with both the techniques of contract administration and the

29

skills to manage the project themselves. In particular, the following institutional strategies are recommended: a. Establishment of appropriate structure under the Municipal Planning and Development Office to undertake project development, and project and impact monitoring and evaluation; b. Strengthening of the Local Prequalification, Bids and Awards Committee (LPBAC) and assuring that bidding procedures are transparent to guarantee that contracts are administered judiciously; and c. Provision of training and seminars for the local planning staff and those of other departments to strengthen their capability in project development, contract administration, project and impact monitoring and evaluation.

5.4.3 Monitoring and Evaluation Project management and evaluation is essentially a management function. In local governance, this can be a separate discrete function from project management. Being project implementers, one way or the other, LGU departments ought to be able to monitor and evaluate their own projects. The Municipal Monitoring and Evaluation Committee (MMEC) shall be tasked with the annual monitoring and evaluation of programs, projects and activities funded by the local government of Leganes. The Municipal Planning and Development Office shall serve as the secretariat of the committee, responsible for the collation of pertinent documents and preparation of the findings and recommendation of the committee. Copies of the annual report shall be submitted to the Municipal Mayor for his information and appropriate action. The Sangguniang Bayan, the Department of Interior and Local Government through the Municipal Local Government Operations Officer, and implementers shall be likewise provided with copies of the report.

5.5

Legislative Support

Among the legislative acts that may be pursued to achieve the goal to increase municipal revenue are: a. Enactment of a market code; b. A Sangguniang Bayan (SB) Ordinance through the Committee on Market providing the imposition of rental fees for collapsible tables and for the Local Economic Development Office (LEDO) to regulate the proper management and disposition of the tables; and c. Updating of the local tax code.

30

There are also regulatory measures which need to be enacted that have impact on the Citys revenue generation, to wit: a. A policy that will force factories/business establishments located in Leganes to hire a certain percentage of their workforce from the locality; b. Pass a resolution requesting the NIA for the rehabilitation of irrigation facilities in the municipality; c. Enactment of an environmental code; d. Enactment of ordinance against illegal fishing (e.g., hudhod, electric fishing, etc.); e. Regulation on fish traps and oyster culture in rivers and coastal areas which impede water flow; livelihood for displaced fisherfolks; f. Regulation of ground water extraction; g. Enactment of ordinance against quarrying; h. An ordinance establishing and protecting the identified mangrove reforestation area (Leganes Eco-forest) and declaration of the area as an ecotourism site; i. Formulation of policies on the establishment and maintenance of ecological park in the municipality; j. Ordinance for the conversion of the Jalaur riverbank into the Leganes River Walk and Promenade; k. A resolution adopting the Comprehensive Coastal Resource Management Plan of the municipality; l. Enactment of ordinances rehabilitating, protecting and preserving the municipal watershed rivers, creeks and aquifers; m. Enact local ordinance in consonance with Clean Air Act; n. Formulation of policies on air shed protection and enactment of ordinance by the Sangguniang Bayan; o. Regulation against open burning of farm residues, plastics, etc.; p. Enact regulatory ordinance against smoke belching; q. Ordinance on proper waste disposal/segregation; r. Enact ordinance ensuring sanitation in commercial poultries; s. Ordinance regulating backyard animal raising should be in place; t. Regular updating Traffic Management Action Agenda; u. Enactment of an updated zoning ordinance; and v. An ordinance institutionalizing the Pasidungog.

5.6

Continuity of the Investment Program

A portion of the future programming period (2013) shall be affected by the changes that may be brought about by the May 2013 elections. Although unfinished programs are presumably covered by continuing appropriations which automatically become an integral part of the final three-year LDIP, another workshop may be conducted to include out-going and in-coming local officials in order to effect a smooth transition from the old to the new dispensation. This venue will enable the outgoing
31

officials to indicate their unfinished programs, projects and activities to persuade the newly elected officials to continue with such unfinished business.

32

Annex

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