OFFICE OF THE MUNICIPAL MAYOR

BUDGET MESSAGE

THE HONORABLE MEMBERS
Sangguniang Bayan
Lupon, Davao Oriental

GENTLEMEN AND LADY:

May I submit the proposed for CY 2012 of the Municipal Government of Lupon for both the General Fund and Operation of Economic Enterprises pursuant to Section 318 of RA 7160 in the amount of ONE HUNDRED FIFTY MILLION FORTY-FIVE THOUSAND FIVE HUNDRED THIRTY-ONE (P 150,045,531.00) PESOS respectively. After thorough deliberation with all concerned offices/departments this executive budget was prepared to make it an effective tool for allocating the limited resources of government to the different sectors, thus making the budget an instrument for the economic and social upliftment of our people. Funds are allocated for the programs, projects and activities needed for an efficient and effective delivery of basic services responding to the pressing needs of our people.

The Municipal Development Plan integrates into the expenditures program by proposing projects which have been ranked as to priority in the Annual Investment Program and its expenses is our concern for the realization of the local government thrust and also to align the national government programs, projects and activities (PPAs)

· Comprehensive Health Services
· Education
· Agricultural Productivity/livelihood development
· Employment Generation
· Tourism Program
· Revenue Generation and Prudent Fiscal Administration
· Accountable and Participatory Governance
· Just and lasting Peace and the rule of law
· Integrity of the Environment and Climate Change Adaptation and Mitigation

Again, after thorough consultation with the revenue centers the Local Finance Committee certified the forecasted income/estimated revenue for .calendar year 2012 amounted to ONE HUNDRED FIFTY MILLION FORTY-FIVE THOUSAND FIVE HUNDRED THIRTY-ONE (P 150,045,531.00) PESOS which is the basic tool in the realization of various plans and programs as embodied in our budget.

Shown hereunder are the Expenditure Program and Sources of Financing as illustrated in Exhibits 1 and 2.

The total proposed budget for calendar year 2012, of which ONE HUNDRED THIRTY-TWO MILLION SIX HUNDRED THIRTY-EIGHT THOUSAND THREE HUNDRED TWENTY-FOUR (P132,638,324.00) PESOS or 88.40% derived from the Internal Revenue Allotment. SEVENTEEN MILLION FOUR HUNDRED SEVEN THOUSAND TWO HUNDRED SEVEN (P17,407,207.00) PESOS will be coming from the local sources of the municipality or 11.61% of the total proposed income.
Tax Revenue and General Account are projected at TEN MILLION TWENTY THOUSAND SIXTY-THREE (P10,020,063.00) PESOS.

The estimated income for government economic services such as Market, Slaughterhouse, Terminal and Cemetery will amount to SEVEN MILLION FIFTY-FOUR THOUSAND THREE HUNDRED NINETY-FOUR (P7,054,394.00) PESOS.

Our commitment to economic reforms shall be continued and fiscal discipline be observed, delivery of basic services and continued improvement of Municipality’s infrastructure.

Our continued policies and measures will be adopted to ensure collection efficiency in attaining our fiscal targets for 2012, as follows:

· Revision/Codification of Tax Ordinance
· Administrative and judicial remedies for efficient tax collection
· Unserviceable properties will be disposed in public auction
· Access to external funds
· Capability building for all collectors and revenue centers.

ALLOCATION OF FUNDS

GENERAL PUBLIC SERVICES

This sector covers expenditures for services with the biggest share of the budget which has an allocation of P89,493,450.00 or 59.64% of the total budget. This is an indispensable sector to the existence of the organization and cannot be allocated to specific sector. This includes fiscal services, planning, general research, public order and safety and other centralized services.

ECONOMIC SERVICES

The amount set aside of this sector are for the concreting and maintenance of market building and other public buildings. Construction of drainage canal development and completion of Municipal Cemetery. This also includes the maintenance and implementation of programs and projects under the offices of the agriculture, engineering and economic enterprises.

This amount allocated for this sector is P37,759,088.00 representing 25.17% of the total budget.

SOCIAL AND HEALTH SERVICES

This sector covers expenditures for the less fortunate families.  Assistance to distressed and displaced individuals and families and also care of the aged and other welfare servicers.

It also includes expenditures for health, medical, dental, nutrition and population control.  It also intended for voluntary blood service program and  also for the implementation of population management and family planning program.

The amount allocated for this services amounted P22,792,993.00 of the total budget of the municipality.

OTHER PURPOSES

The amount of P7,502,276.00 representing 5% of the regular income is reserved for calamity fund.  An amount of P1,100,000.00 is also proposed as lump sum appropriation for the terminal and other benefits of officials and employees.

An amount of P21,000.00 is provided at P1,000.00 per barangay as an aid to 21 barangays.

An amount of P9,192,000.00 is set aside for the existing loan with the DBP as credit financing of which the amortization is under the 20% Development Fund for heavy equipment and public market II respectively.

Shown hereunder is the Distribution by major expense class as illustrated in Exhibit 3.

PERSONAL SERVICES

An amount of P60,358,330.00 or 40.23% representing the total expenditures of Personal Services for salaries and wages of employees and officials and other benefits and allowances.

This includes the full implementation of the third tranche monthly salary schedule of the Local Government Personnel as per Executive Order No. 40 issued on April 29, 2011 and to be implemented through Local Budget Circular No. 97 dated May 11, 2011. The effectivity of this salary schedule is not later than January 2012 for each LGU income class.

MAINTENANCE AND OTHER OPERATING EXPENSES

The amount of P55,582,260.00 is allocated for this expense class representing 37.04% of the total budget.  It is needed by the different offices to be able to perform its basic mandate and functions to achieve its specific goals and targets.

CAPITAL OUTLAY

The amount of P75,000.00 is allocated for this expense class representing 0.05% of the total budget.  It includes the appropriation for equipment outlay.

20% DEVELOPMENT FUND

An amount of P26,527,665.00 or 17.68% of the total budget. This includes the implementation of the various projects and programs, agri-development projects as well as infrastructure and economic development projects of the municipality.

5% CALAMITY FUND

An amount of P7,502,276.00 or 5% of the total budget of which 30% is for the Quick Response Fund during the disaster. The remaining 70% of the 5% of the calamity fund will be utilized for the Pre-Disaster Plan of the municipality. This is in line with RA 10121 also known as the “Philippine Disaster Risk Reduction and Management Act of 2010”.

Gentlemen and Lady of the Sangguniang Bayan, this budget proposal manifests our determination to lay a strong foundation for a greater and progressive municipality. Let us join our hands together as we go about our mission of providing brighter future for our constituents.

Very truly yours,

(sgd)DOMINGO A. LIM
Municipal Mayor