03 January 2006
It’s deficit, not just shortfall, Michael F. insists
City revenue code updated in a jiffy; traders to bear more taxes
DAGUPAN City Councilor Michael Fernandez is standing pat on his declaration that the city has incurred a budget deficit and not just a “shortfall in tax collection,” a euphemism used by the city treasurer’s office and the city administrator’s office for weeks towards the end of the year to obscure the financial situation of the city.
“At the moment, the city has more payables than collectibles,” Fernandez said to underscore the inability of the city government to remedy the problem without going into some updating of taxes to plug the deficit at least by next year.
He revealed that to make up for the “shortfall” in collections this year that was running at some P20 million at last count, big businessmen in the city may have to pay more taxes in 2006 thru an updated local revenue code that was passed by the city council last December 13.
Even this stop-gap measure however appears to have its own defect, mainly because it did not call for a public hearing but was the result of Fernandez, as chairman on finance and majority floorleader of the sangguniang panlungsod, deciding on which portions of the old revenue code needed updating.
At the same time, Fernandez admitted to mediamen that he deleted the ordinance imposing parking fees in the new local revenue code saying this is basically “anti-business.”
A city official who requested anonymity said it is still not clear whether updating is the same as revising the ordinance, in which latter case, there could be a need for a public hearing especially where such involves penalties.
Fernandez estimated some P20 million in additional revenues could be generated once the “updated” ordinance is implemented in the new year.
A source said it was actually the executive department that had proposed the adoption of a new revenue code as the city has been left behind in rates and fees being charged for the same services as those found in other cities and municipalities.
DAGUPAN City Councilor Michael Fernandez is standing pat on his declaration that the city has incurred a budget deficit and not just a “shortfall in tax collection,” a euphemism used by the city treasurer’s office and the city administrator’s office for weeks towards the end of the year to obscure the financial situation of the city.
“At the moment, the city has more payables than collectibles,” Fernandez said to underscore the inability of the city government to remedy the problem without going into some updating of taxes to plug the deficit at least by next year.
He revealed that to make up for the “shortfall” in collections this year that was running at some P20 million at last count, big businessmen in the city may have to pay more taxes in 2006 thru an updated local revenue code that was passed by the city council last December 13.
Even this stop-gap measure however appears to have its own defect, mainly because it did not call for a public hearing but was the result of Fernandez, as chairman on finance and majority floorleader of the sangguniang panlungsod, deciding on which portions of the old revenue code needed updating.
At the same time, Fernandez admitted to mediamen that he deleted the ordinance imposing parking fees in the new local revenue code saying this is basically “anti-business.”
A city official who requested anonymity said it is still not clear whether updating is the same as revising the ordinance, in which latter case, there could be a need for a public hearing especially where such involves penalties.
Fernandez estimated some P20 million in additional revenues could be generated once the “updated” ordinance is implemented in the new year.
A source said it was actually the executive department that had proposed the adoption of a new revenue code as the city has been left behind in rates and fees being charged for the same services as those found in other cities and municipalities.
