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Republic of the Philippines


Province of Albay
Municipality of Guinobatan
OFFICE OF THE SANGGUNIANG BAYAN
Tel No. (052) 484-6642; E-mail:sbguinobatan@yahoo.com
EXCERPTS FROM THE MINUTES OF THE 4TH REGULAR SESSION OF THE
SANGGUNIANG BAYAN HELD ON JANUARY 26, 2015 AT 9:30 IN THE
MORNING AT THE SANGGUNIANG BAYAN SESSION HALL, GUINOBATAN,
ALBAY.
Present: Hon. Julio S. Tingzon IV
Hon. Carlomagno P. Flores
Hon. Rolando P. Palabrica
Hon. Juris L. Villareal
Hon. FJ M. Oxales
Hon. Ryan B. Palomillo
Hon. Ricky S. Matza
Hon. Robert M. Baaga
Hon. Maria Sofia O. Orpiada
Hon. Jose M. Padilla
Absent:

Vice-Mayor & Presiding Officer


Councilor
Councilor
Councilor
Councilor
Councilor
Councilor
Councilor
Councilor
Councilor (ABC Pres.)

None
APPROPRIATION ORDINANCE NO. 01-2015
2015 ANNUAL BUDGET

AUTHORIZING THE ANNUAL BUDGET OF THE LOCAL GOVERNMENT OF


GUINOBATAN FOR CALENDAR YEAR 2015 OF THE GENERAL FUND AND
SPECIAL ACCOUNTS IN THE AMOUNT OF PHP125,225,631.00 AND
PHP40,264,200.00, RESPECTIVELY.
Proponent/Sponsor:

Committee on Finance, Budget & Appropriations

Be it ordained by the Sangguniang Bayan of Guinobatan, Albay in


session assembled, that:
Section 1.

The estimated income, collectible, realizable and available for


appropriation as certified by the Local Finance Committee for CY 2015 of
the Municipality of Guinobatan, Albay are ONE HUNDRED TWENTYFIVE MILLION, TWO HUNDRED TWENTY-FIVE THOUSAND,
SIX HUNDRED THIRTY-ONE PESOS (PHP125,225,631.00) FOR
GENERAL FUND and FORTY MILLION, TWO HUNDRED SIXTYFOUR THOUSAND, TWO HUNDRED PESOS (PHP40,264,200.00)
FOR SPECIAL ACCOUNTS, and are hereby approved herein.
The budget documents consisting of the following are incorporated herein
and made an integral part of this Appropriation Ordinance:
1.
2.
3.
4.

Budget Expenditures and Sources of Financing;


Annual Investment Program;
Personnel Schedule by department/office/unit; and
Others.

PART 5 GENERAL PROVISIONS

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l. RECEIPTS AND INCOME


1. Taxes Fees and Charges. All taxes, fees, charges and other receipts or revenues
collected by the Municipal Treasurer and other offices in the exercise of their functions,
at such rates are now or may be approved by the Sangguniang Bayan shall be deposited
with authorized depository banks and shall accrue to the General Fund of the
Municipality pursuant to Section 129 of the Local Government Code. PROVIDED, that
receipts from Economic Enterprises may be recorded as a Special Account in the General
Fund or as Trust Fund. PROVIDED, FURTHER, that all revenues or income accruing to
special accounts in the General Fund may be made available for expenditure, subject to a
special provision in this ordinance.
2. Revolving Fund. Revolving funds shall be established and maintained only in
cases where said funds are expressly created and authorized by the Sangguniang Bayan.
Revolving funds already in existence shall continue their operations and shall be
separately recorded and deposited in an authorized depository bank and may be made
available for operational expenses of the said activity of the agency concerned, subject to
the condition prescribed under the special provision of the office concerned and the rules
and regulations as may be recommended by the Local Finance Committee and approved
by the Municipal Mayor and/or Sangguniang Bayan through a resolution.
3. Trust Receipts. Receipts from non-tax sources for specific purposes which are
collected/received by the Municipality as a trustee, agent or administrator, shall be treated
a trust liability and shall be deposited separately in an authorized depository bank. All
balances of trust receipts, after the completion of the purpose for which they were
intended shall be transferred to the General Fund, subject to accounting and auditing rules
and regulations.
ll. EXPENDITURES
4. Mandatory Expenditures. The amounts released for water, illumination and
power service, telephone and other communication services, rents and terminal leave
requirements shall be disbursed solely for such items of expenditures as approved in the
budget.
5. Extraordinary Expenses. Appropriation herein authorized may be used for
miscellaneous expenses of the Chief Executive at an amount not exceeding 2% of the
actual Real State Tax collections of the next preceding year and shall be subject to the
pertinent provisions of RA 7160 or section 16 of the Local Government Code, as
specified in the object code 881, which can be subjected to closed accounting.
6. Human Resource Management and Training Programs. The Human Resource
Management Office shall review and formulate their human resource management and
training programs to make the same responsive to the organizational needs and
manpower requirements of the offices and the need to train personnel in the appropriate
skills and attitudes.
7. Disaster Prevention, Mitigation and Preparedness Projects. The chief executive
is authorized to use the MDRRM Fund appropriation to implement projects designed to
address their disaster prevention, mitigation and preparedness concerns pursuant to R.A.
10121.
8. Twenty Percent (20%) Economic Development Fund. The municipality shall
set aside at least twenty percent (20%) of its Internal Revenue Allotment received for FY
2015 for developmental projects as provided under Section 287 of the Local Government
Code.

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9. Aid to Barangays. The Municipality shall provide aid to 44 barangays in


amount of not less than one thousand pesos (P 1, 000.00) per barangay.
10. Special Education Fund (SEF). A Special Education Fund shall be maintained
by the Municipal Treasurer equivalent to the proceeds from the one percent (1%) tax on
real property accruing to the SEF and shall be automatically released to the school board,
pursuant to Section 272 of R.A. 7160.
11. MDRRM Fund. Five percent (5%) of the estimated revenue from regular
sources shall be set aside as annual lump-sum appropriation for relief, rehabilitation,
reconstruction and other works or services in connection with calamities which may
occur during the budget year. Provided, however, that such fund shall be used only in the
area or apportion thereof, of the Municipality affected by a disaster or a calamity, as
determined and declared by the Sangguniang Bayan.
lll. PERSONNEL AMELIORATION
12. Funding of personnel Benefits. The personnel benefits costs of municipal
government officials and employees shall be charged against funds provided for their
respective positions. Extra-benefits as may be declared by the President shall be charged
against savings in Personal Services.
13. Personnel Benefits Funds. Government shares in the compulsory contributions
mandated under RA 8291, RA 6611, RA 10606 and PD 626, as amended, shall be
remitted directly by the Municipal Treasurer to the Government Service Insurance
System (GSIS), Home Development Mutual Fund (Pag-ibig) and Philippine National
Health Insurance Corporation (PhilHealth).
14. Authorized Deductions. Deductions from salaries, emoluments or other
benefits accruing to any municipal employee may be allowed for the payment of
obligation due or owing to lending institutions such as government and private banks, the
Government Service Insurance System, the Home Development Mutual Fund, PhilHealth
and those organized for, and managed by the municipal government employees.
15. Year-end Bonus and Cash Gift. Payment of benefits to cover the year-end
bonus and cash gift shall be paid by the municipality. Subject to implementing circulars
issued by the Department of Budget and Management.
16. Representation and Transportation Allowances. The following officials and
those of equivalent rank, while in the actual performance of their respective functions are
hereby granted monthly commutable representation and transportation allowances
payable from the programmed appropriations provided for their respective offices. The
grant of RATA to qualified officials shall be in accordance with DBM LBC NO. 102
dated Jan. 17, 2013.
17. Allowances of those officials who are receiving salaries from special accounts
or special funds shall be charged against the corresponding fund from which their salaries
are charged. Officials on detail with other offices, including officials of the Commission
on Audit assigned to serve their offices, shall be paid the allowance herein authorized
from the appropriations of their parent agencies.
18. Official Vehicles and Transport. Government motor transportation may be
used by the municipal officials/employees with costs chargeable to the appropriations
authorized for their respective offices.

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19. Uniform and Clothing Allowance. The appropriation herein provided for each
may be spent for uniform and clothing allowance of employees at not more than five
thousand pesos (P 5,000.00) each per annum which may be given in cash or in kind.
20. Entitlement to Personnel Economic Relief Allowance (PERA). The Personal
Economic Relief Allowance (PERA) in the amount of Two Thousand Pesos (P 2,000.00)
per month shall be granted to all appointed employees occupying plantilla positions and
casual employees.
21. Use of Appropriation for Terminal Leave. Appropriations authorized herein to
cover terminal leave benefits shall be released directly to the employees concerned.
Terminal leave refers to the money value of the total accumulated leave credits of an
employee based on the highest salary rate received prior to or upon retirement
date/separation from service.
IV. CHANGES IN EXPENDITURE ITEMS
22. Modification of Expenditure Components. Except as may be authorized in an
appropriate ordinance, no change or modification shall be made in the expenditure items
authorized herein and other appropriation ordinances unless in cases of augmentations
from savings in appropriation as authorized under Section 25 (5) of Article VI of the
Constitution and Section 336 of RA 7160.
23. Use of Savings and Augmentation. In accordance with Section 336 of RA
7160, the Local Government Code of 1991, the Local Chief Executive or the Presiding
Officer of the Sanggunian as the case may be, are authorized to augment any item in the
approved Annual Budget for their respective offices from savings in other items within
the same expense of their respective appropriations.
24. Meaning of Savings and Augmentation. For this purpose, savings refer to
portions or balances of any programmed appropriation in this ordinance free from any
obligation or encumbrance, still available after the completion or the unavoidable/final
discontinuance or abandonment of the work, activity or purpose for which the
appropriation is authorized or arising from unpaid compensation and related costs
pertaining to vacant positions or leave of absence without pay.
Augmentation implies the existence in this ordinance of an item, project, activity
or purpose with an appropriation which upon implementation or subsequent evaluation of
needed resources is determined to be deficient. In no case, thereof, shall a non-existent
item, project, activity or object of expenditure be funded by augmentation from savings.
V. ADMINISTRATIVE PROCEDURES
25. Program Monitoring and Evaluation. The Municipal Planning and
Development Office shall conduct/implement a monitoring and evaluation program to
determine whether programs/projects are being implemented as planned or have achieved
intended development input/results, improved allocations and overall performance.
26. Service/Job Order Contracts. The Office of the Mayor/Vice-Mayor as the case
may be, are hereby authorized to enter into service or job order contracts with
government agencies, other local government units, private firms or individuals and nongovernment organizations for services related or incidental to its functions and
operations, whether on part-time or full-time basis.
Service contracts may be entered into a professional consultancy service, which
may include contracts with individual consultants or hiring of personnel on job order. For
this purpose, as individual professional consultant is an expert in a field of special

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knowledge or training who is contracted to render particular outputs or services primarily


advisory in nature requiring highly specialized or technical expertise which cannot be
provided by the regular staff of the Municipality. In case of contract for job orders, this
may be resorted to by the Mayor or the Vice Mayor, as the case may be, to augment the
work force in their respective offices due to lack of adequate personnel to accomplish
their offices tasks but for a period not exceeding the required by law. Provided, however,
that in both instances of hiring, it creates no employer-employee relationship between the
consultant/job order personnel and the Municipal government.
27. Implementation of Infrastructure Projects. In the hiring of workers needed for
the implementation of infrastructure projects as authorized in this ordinance,
priority/preference shall be given to the unemployed, unskilled and indigent inhabitants
of the barangay where the project is located.
28. Construction Standards and Guidelines. Construction of projects funded from
capital outlay authorized in this ordinance shall be implemented only in accordance with
the appropriate standards and specifications for the planning, survey design and
constructions of the project as prescribed by the Department of Public Works and
Highways.
29. Report on Compliance with COA Recommendation. The office of the Mayor
shall submit to the Commission on Audit within sixty (60) days from the receipt of the
COA pertaining to each office.
30. Effectivity. The provisions of this ordinance shall take effect on January One,
Two Thousand Fifteen unless otherwise provided herein.

Section 4.

MISCELLANEOUS/OTHER PROVISIONS:

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a. The budget of the LGU for CY 2015 is hereby summarized as follows:


General Fund
Special Accounts
TOTAL

Php 125,225,631.00
Php 40,264,200.00
Php 165,489,831.00

b. The two (2) new plantilla positions under the general fund particularly in the
Municipal Budget Office which were funded in this ordinance and the corresponding act
for its creation will likewise be passed so with the funding of two (2) additional plantilla
positions under the economic enterprises more particularly in the Guinobatan Waterworks
System Office (GWSO) to augment its increasing and improving operations.
c. The contract or hiring of job orders shall be in accordance with existing and
applicable Civil Service rules and at the rate prescribed by SB resolution for the purpose.
d. The appropriations for traveling expense, communication expense-mobile,
seminars and trainings, in-house conference under the Office of the SB Legislative and
the donations under the Office of the Mayor shall be governed by an agreement among
local elective officials entitled thereto as to its apportionment and releases.
e. To control disbursements against the appropriation for budgetary items in the
preceding section, the Accounting office and the Budget office shall maintain a subsidiary
ledger for each official entitled thereto in accordance with their approved understanding
as to the apportionment.
f. The Municipal Accountant and the Municipal Treasurer shall submit to the
Local Chief executive and the Sangguniang Bayan and post in prominent places of the
main office building a monthly itemized Income and Expenditure Status Report per office
including that of the three (3) Economic Enterprises for the information not only of the
policy making and implementing bodies of the LGU but of the general public and in
consonance with Section 513 of the Local Government Code of 1991 or face the
accessory penalty therefor, for its failure.
g. All lump sum appropriations earmarked or allocated for a particular office
intended for their yearly programs, projects or activities shall be supported with a YearRound Program of Work/Activities and every activity must be supported with Work and
Financial Plan. No fund shall be disbursed against its budget without such Program/Plan
of Work/Activities. Neither shall a disbursement be allowed by the Budget
Office/Accounting Office when the allocation under said office/item has already been
exhausted.
h. All procurements of goods and services by the LGU shall be made in
accordance with R.A 9184, otherwise known as the Government Procurement Reform
Act.
i. In accordance with Budget Circular No. 2004-3, dated March 3, 2004 as
amended by Circular No. 2004-3A dated December 14, 2004, the Local Chief Executive
through the Personnel Officer is hereby authorized to cause the conversion of position
titles to performing task, non-technical function, provided however, that such conversion
shall not involve anything in salary grade or demotion in rank.

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Section 5. Effectivity. This Appropriation Ordinance No. 01-2015, entitled:


AUTHORIZING THE ANNUAL BUDGET OF THE LOCAL
GOVERNMENT OF GUINOBATAN FOR CALENDAR YEAR 2015
OF THE GENERAL FUND AND SPECIAL ACCOUNTS IN THE
AMOUNT OF PHP125,225,631.00 AND PHP40,264,200.00,
RESPECTIVELY, shall take effect on first day of January, in the year
Two Thousand Fifteen.
ENACTED: JANUARY 26, 2015 on third and final reading.
Voting on the Ordinance:
In Favor :
Not In Favor:

ALL MEMBERS PRESENT


NONE

WE HEREBY CERTIFY to the correctness of the foregoing appropriation


ordinance.

RICKY S. MATZA
Proponent/Sponsor

CHRISTOPHER O. PALEVINO
Sanggunian Secretary

ATTESTED:
JULIO S. TINGZON IV
Vice-Mayor & Presiding Officer

APPROVED: _______________, 2015

ANN Y. ONGJOCO
Mayor