.

15 ADMINISTRATIVE AND FINANCE

.15.1 Assessment of Performance

Urban Governance

City Organization

As of March 2000, the existing organizational structure of the City is composed of

46 departments and/or offices with a total manpower of 5,488 (3,174 casuals and
2,314 regulars).

The population per city official of Cebu City is 126 persons. This indicator does not
reflect the efficiency of city officials' work. However, it is observed in the city's
frontline services that in order to be cost-effective, the smaller the number is rather
better as this requires a minimal budget for personal services. The present City
organization needs restructuring considering the current demands of modernizing
urban governance, consideration of the new planning directions, both national and
global. Local governance recently shifted from a traditional local government unit to
that of having a corporate power. This new role is provided in the local code of
1991.

Most of the offices are mandatory. Their creations were provided for under the new
local government code, empowering local government units (LGUs) consistent with
the Constitution, through devolution, decentralization and local autonomy policies
of national government.

In response to bureaucratic problems, an ongoing organizational appraisal is being

conducted by the present administration with the objective of studying a "lean and
mean" city organization and targeting a streamlined organizational structure and
adopting key productivity measures to maximize output and delivery of urban
services. See Figure 2.15.1.

City Mayor's Office and the Legislative Council

The exercise of the executive functions of the City is headed by the City Mayor, as
the Chief Executive Officer, which oversees the general supervision and control
over all programs, projects, services and activities of the City.

The Legislative Council or Sangguniang Panlungsod (SP), chaired by the Vice

Mayor, enacts ordinances, approves resolutions and appropriates funds for the
general welfare of the City and its inhabitants pursuant to the local code and other
applicable laws and national policy pronouncements.
 Figure 2.15.1
Existing Organizational Chart
City of Cebu

CITY MAYOR VICE MAYOR

SANGGUNIANG
PANLUNGSOD

MGT. INFO. AND

OFFICE OF THE CITY COMPUTER GENERAL DEPT. OF CITY BUDGET ACCTG. AND
MAYOR ADMINISTRATOR SERVICES SERVICES PLANNING AND OFFICE INTERNAL AUDIT
OFFICE DEVT.

DEPT. OF MANPOWER OFFICE FOR CITY DEPT. OF SOCIAL CITY ASSESOR’S OFFICE OF
DEVT. AND LEGAL SERVICES TREASURER’S WELFARE AND DEVT. OFFICE LOCAL
PLACEMENT OFFICE REGISTRAR

CITY HEALTH DEPT. OF DEPT. OF DEPT. OF VET. DEPT. OF PUBLIC CEBU CITY
DEPARTMENT ENGINEERING AGRICULTURE MEDICNE AND SERVICES MEDICAL CENTER
FISHERIES

CITY SUPT. OF REGISTER OF DEEDS

SCHOOLS CITY FISCAL’S OFFICE
The Cebu City Resource Management and Development Center (CREMDEC)

CREMDEC was formally created as an independent operational unit in July 14, 1999
through City Ordinance No. 1775. The unit originally was conceptualized in 1987
from the CVRP-1. It was initially established two years after as Regional Resource
Management Training Center (RRMTC) which was institutionalized in 1991 by then
President Aquino through Presidential Proclamation 773 that declared the 9.2
hectare campus in Taptap, Cebu City.

When it was devolved to the Cebu City Government three years later, it was
renamed as the Cebu City Resource Management Training Center through City
Ordinance # 1509. In 1996, it was finally merged with the Hillyland Projects Office
and became the Cebu City Hillyland Resources Management Training and
Development Commission through City Ordinance No. 1609.

The basic goals of CREMDEC is for Cebu City to have an internationally credible
Education and Research Institution that will;

 do resource based project proposal packages for funding

 conduct and collate government research studies
 offer continuing education and training programs for Cebu City government
personnel, other LGUs and groups
 render technical assistance on resource management and development
 prepare long term plans to offer formal resource management and development
courses in coordination with existing colleges and universities and
 assist the Cebu City government in research and development courses and
projects.

To date, CREMDEC has proved and justified its creation by performing creditably
well in the duties and responsibilities given to it.

The Organization and Management Committee

Cebu City, in its aim to have a competent, effective, efficient and highly professional
servants, formed the Organization and Management Appraisal Committee or OMAC
in November 1999. CREMDEC was named OMAC Secretariat.

The Committee was tasked to determine the effectiveness and efficiency levels of the
City Hall Employees. It was also tasked to have every department/office come up
with clear goals, objectives and functions with its corresponding structures and
manpower requirements.

In June this year, the TWG of OMAC has submitted the initial outputs of the meetings
and workshops it had conducted the past several weeks. Initial agreements on some
revisions in the organizational structures and the action plan have been identified.
These are shown in Table 2.15.1. The recommendations is reflected in the revised
organizational structure shown in Figure 2.15.2

Figure 2.15.2 Revised Organizational Structure

OFFICE OF THE CITY MAYOR SANGGUNIANG PANLUNGSOD

CITY MAYOR CITY VICE MAYOR
SANGGUNIAN MEMBERS
 EXECUTIVE OFFICES
• IAS COMMISSION
• CREMDEC
OFFICE OF THE SP
Secretary
OFFICE OF THE CITY
ADMINISTRATOR

ADMINISTRATIVE & SUPPORT SERVICES FISCAL MANAGEMENT SERVICES

(CHAIRMAN) (CHAIRMAN)

MICS HRD CDPD DGS CLO Budget Accounting CTO Assesor

HEALTH AND SOCIAL SERVICES ENVIRONMENT AND INFRA SERVICES

(CHAIRMAN) (CHAIRMAN)

CHD CCMC DSWS DWUP & DMDP Civil Agriculture & DEMPS DEPW CCTMSD
Housing Registrar Veterinary

Table 2.15.1
Reorganization Agreements
The City of Cebu Port Authority

Department/ Agreements Reached Actions to Take

Office
Concerned

DEMPS - DEMPS Proposed Organizational Structure has - DPS, CCAT & CCPPC to meet on June
already incorporated/included CCCAT & 29, 2000 at DPS to come up with
CCPPC. appropriate position titles.

- From “Street Cleaning Division” to “Drainage - Ms. Nora del Rosario of DEPW is
Maintenance / Street / Estero Cleaning requested to inform/update Engr.
Division” Sanchez re: transfer of function
especially on Drainage Maintenance
- Bantay Sapa should be under the “River, from DEPW to DEMPS
Coastal Eco. System Division”

- Initially discussed privatization for the - DEMPS to include Bantay Sapa in their
improvement/maintenance of parks, structure.
playground & collection of garbage, etc.; role
of government as overseer.

- Preferred HUC’s Organizational Structure

Model A-1

DEPW - Equipment & Motorpool Division was already - DEPW requested GSD to “return” the
transferred to GSD likewise “transferring” the item/position & the person who heads
items/ positions/ staff concerned the Equipment Division

- Agri-Engineering of CAD/Hillyland to be - Agri.-Engineering Head is included in

incorporated in the DEPW structure/ the plan to replace Engineer IV Bontilao
who is due for retirement per Ms. Del
- preferred HUC’s Organizational Structure Rosario
Model A-1
DVMF/CAD - Abattoir Div. From EEM to DVMF
CCBDC - CAD & Bantay Dagat for incorporation/ -
inclusion in DVMF structure; to be named as
Agriculture Veterinary & Fisheries Department,
Vet. As Dept. Head with 2 Asst. Dept. Heads – 1
Asst. Dept. Head for Agri. & Fisheries Div. & 1
Asst. Dept. Head for Veterinary Medicine Div.
CITOM
CREMDEC - As R & D of the Cebu City government, this -
office should not be attached to any office be it -
HRD or Planning. This should be under the
Office of the City Mayor.
CLUSTER - Preferred HUC Organizational Structure Model
A-1
MAYOR’S OFFICE - Admin. Division with 3 Sections, namely: -
Property, Records & Business Permit
- To c o m e u p w i t h a p r o p o s e d
- Business Permit should remain under
Mayor’s Office to maintain check and balance;
CTO shall be responsible in the collection -
only
- Commissions under Office of the Mayor -
should be transferred to a department which
are inter-related.
P I O / C I T Y P R E S S- Retain Information Officer IV position to head
OFFICE (CPO) CPO, not to use City Press Secretary position
- Fill-up Information Officer III position
- PIO evolves into serving other city
departments
- PIO to become a department
- Proposing to create a Tourism Officer
incorporating: Protocol, CHAC & CCYDC
S A N G U N I A N G- Secretariat/Admin./Records should be in one -
PANGLUNSOD (1) office
DVMF, CAD & Bantay Dagat to discuss
separately on the new structure/staffing
pattern. Meeting is scheduled on June
28, 2000 at Hillyland Conference Room.
TWG recommendations:
- To work within existing budget
- Upgrade other positions by not filling-up
vacant positions
- Urban Landscapping to be transferred to
DEMPS
- CAD Coop. For transfer to Cooperative
Development Office (still to be created
per HUC Model A-1 or A-2).
- To delete/scrap “Medical Section” from
the proposed organizational structure.
- To include Traffic Education in the
DECS curriculum (secondary level).
To be attached to the Mayor’s Office.
TWG has recommended CREMDEC to
be placed at the left side of the
organizational structure (HUC Model
A-1) before City Admin.
To include Executive Assistants in the
proposed organizational structure
organizational structure (from BP
Section to BP Division)
To submit Position Paper justifying why
it should remain at the Mayor’s Office
as well as a full blown Division
Abolish/remove Commissions not
existing/ functioning anymore
To compute proposed positions and
check total PS requirements against
existing budget
- PTS c/o Ms. Terry Lopez to assist SP in
the staffing pattern preparation – SG &
position titles
- To prepare organizational structure for
the Office of the Vice-Mayor
- To include/add eighteen (18) regular
positions to be assigned to the City
Councilor’s Offices
CHD - Upgrading of positions - To fill-up vacant positions but should
consider existing PS budget
- PTS to assist CHD in determining
position titles

COSAP - To become regular and institutionalized, it - To come-up with a clear-cut definition

should be attached to CHD being the closest of functions
dept. COSAP can relate with - To be attached to CHD with a “broken
line”

CLUSTER - Preferred HUC Organizational Structure Model

A-2

CTO - Market management and operations (EEM) - To privatize market management and
can not be absorbed by CTO except the operations
A p p r a i s a l f u n c t i o n w h i c h s h a l l b e- To privatize messengerial services c/o
incorporated in the CTO structure under GSD
“Appraisal Division”

I C O / I N T E R N A L- IAS should not be with Accounting; Accountant -
AUDIT SERVICE cannot be an Internal Auditor at the same time;
(IAS) there’s no check & balance
- IAS should be under the Office of the Mayor
instead of under Management Services Cluster
per HUC Model
To amend ordinance creating IAS re:
position titles used
- TWG recommended that all
departments should have operations
manual by Dec. 2000

- IAS to evaluate and improve systems not

develop

C I T Y B U D G E T- Applicable to all departments: AO III to head - Assistant Budget Officer to present to

OFFICE the Admin. Division with less than 100
personnel (considered as small department);
AO IV to head the Admin. Division with more
than 100 personnel (considered as big
department)
the City Budget Officer the revised
organizational structure (TWG/Budget
Output) & to furnish OMAC of its final
output

CLUSTER - Preferred HUC Organizational Structure Model

A-2

Source: OMAC, Cebu City, August 2000

Other Existing Institutions and People Groups in Cebu City

There are 17 government organizations (GOs), 20 non-government organizations

(NGOs) and 15 religious/civic organizations that are situated in Cebu City. However,
the City government accredited 105 NGOs and/or Private Organizations (POs), with
32 NGOs sitting as members in various city council committees and special bodies.
Their membership in the councils/special bodies is one of the four avenues for
people participation process as mandated under the Local Government Code.

Basic Services Delivered

The institutional development features of the Local Government Code, calls for the
redesigning of the local government structure that would attain cost-effective delivery
of the twenty six basic services all LGUs should provide. However, the degree and
level of delivery of the services, as outlined in the code, depends on the income
classification of LGUs that will be the basis in establishing an appropriate fiscal and
manpower staffing configurations. Per initial review of the basic services delivered,
the City has concentrated first on the Minimum Basic Needs (Survival Needs,
Security Needs and Enabling Needs), which was iniated in 1995.

The basic services and facilities delivered among others, include the following:

- Health services delivery, through the Barangay Health Stations

- Water Supply, through the Barrio Waterworks System (Level I and II) and the
Barangay Water Service Office delivery trucks

- Community-Based Resource Management (in hillyland barangays)

- Agricultural Development and Extension Work (hillyland barangays)

- Social welfare programs, projects and services through the community Day
Care Centers

- Information System and Services (Including Cebu City GIS)

- Solid Waste Disposal and Environmental Management Systems

- Construction, Operation and Maintenance of Infrastructure Facilities

- Construction, Operation and Maintenance of Tourism Facilities

- Provision of sites/facilities for police, fire stations and city jail

- Provision of adequate communication and transportation facilities.

The City has been subject to criticisms on poor management because of alleged
series of violations of existing Government guidelines the COA Audit findings claimed
in its 1999 Audit Report.

Some of the common cases are as follows:

• Procurement of bulk asphalt, (P 38,974,158)

The violations noted by COA included excessive price, no competitive bidding,

granting of advance payment, payment of items not yet delivered, issuance of
subsequent purchase orders despite non-completed previous purchase orders,
entering into a multi-year contract without back up sufficient appropriation, and
entering into a contract in excess of the authority granted by the SP.

• Purchase of an asphalt mixing plan (P 32,530,090.17)

The identified violations include no competitive bidding, unauthorized

membership in the Committee on Awards and specifying a brand name.
• Implementation of the condominium project (P 26,640,000)

The noted violations included awarding of a project to a non qualified proponent,

doubtful structural integrity of the structure and questionable bidding procedures.

• Several purchases of land, disposal of properties and other financial matters,

and last but not least,
• Agreement entered into with R2 Builders for the development of the Ramos
Market that had problems on ownership of the land/site as well as other
provisions of the BOT Agreement.

The existing market structure was already demolished that cause displacement
and severe inconvenience to the market vendors that had caused drops in their
daily sales and income. Until now, the project is still suspended.

While the City has submitted to COA their answers and formal clarifications on each
of the above, a deeper assessment of the situation reveals that most of the above
transactions were committed because of the absence of people or staff really
knowledgeable in all aspects of bidding and procurement process for Government
projects and programs who shall sit in the PBAC and/or Committee on Awards at all
times and shall be responsible for ensuring that existing Government regulations are
strictly adhered.

Most of the shortcomings are corrected by the City but unless institutionalized, there
will still be the tendency to deviate from the correct procedures of procurement and
bidding.

The other cause of these violations are short cutting in the prequalification and
bidding procedures in order to start project implementation immediately to catch up
lost times because of shortcomings in forward planning.

As mandated by existing Government guidelines, COA should always be invited to

witness all activities related to bidding and procurement. If this is strictly adhered,
violations may be minimized if not eradicated.

Fiscal Administration and Management

The income of the City reached P1,126.47 million in 1998 from P821.13 million in
1994. The annual average growth rate for the 1994-1998 period was 7.9%.

The top-five income generators during the period were the following:

- Internal Revenue Allotment (IRA)

- Business Tax
- Real Property Taxes
- Community Tax Certificates: A, B, and C
- Amusement Taxes

The city revenue per capita in 1998 was P1,624.63. It is noted that the financial
condition of Cebu City is relatively healthier than Lapu-lapu City at P1,426 and Roxas
City at P1,355 but much lesser than Dapitan City at P2,490 and Olongapo city at
P2,300.

Expenditure of the City increased to P1,124.47 million in 1998 from P785.59 million
in 1994. Annual average growth rate of expenditure for the 1994-1998 period was
8.96%. The top-five expenditure items for the last five-year period were the following:

- General Public Services (44.89%)

- Economic Services (19.50%)
- Other Services (13.65%)
- Health Services (13.56%)
- Housing and Community Development (5.25%)

Budget in 1998 was P1,271.78 million with an average annual growth rate of 5.19%
with reference to the 1994-1998 period. Personal Services and MOOE accounted to
36% and 44%, respectively in 1998. Average annual budget for Capital Outlay is
about P270.04 million.

Internal Revenue Allotment (IRA) increased to P456.23 million in 1998 from P336.59
million in 1994 or an average annual growth rate of 7.6%.

The 20% Development Fund was noted to have the lowest growth rate of 2.03%,
among the fiscal indicators available for the 1994-1998 period.

The item on Unliquidated Balances, was the most alarming among fiscal indicators
which grew to P81.86 million in 1998 from P60.89 million in 1994. The average
unliquidated balance was P76.61 million per year during the period.

Development Planning and Investment Programming

The development planning cycle, which is observed to be common to LGUs, is linked

to the electoral process. While the medium-term planing document was prepared for
the term of the President, in compliance to national directives, the local development
planning (LDP) document covers the term of the present city administration.

Likewise, the Local Development Investment Program (LDIP), which translated the
LDP into concrete action plan, is also prepared with the same time frame as the
LDP's. However, its component, the Annual Investment Program or AIP (which also
includes the Capital Investment Program or CIP), rigidly follows the annual budgeting
and programming cycle.

Vertical planning is exercised with inputs from the barangays or community level
planning mostly done through people participatory processes. Horizontal planning is
applied through the sectoral departments and implementing agencies. If new
programs or projects will require national funding, including Official Development
Assistance (ODA) and Build-Operate-Transfer (BOT), an endorsement from the
Regional Development Council or RDC is required.

Local Productivity and Performance Measurement (LPPM)

To date, the City has not yet adopted the LPPM, or the formulation of City
Performance Indicators, as directed by the DILG, Bureau of Local Government
Supervision (BLGS). The LPPM guidelines were released only recently and its
process requires a much longer time of preparation. Inventory of Management Tools,
a subset of the LPPM is also required in this process as this relates to the effective
delivery of basic services and improvement of the internal management system.

One specific indicator that would proximate productivity is the analysis of the Budget
Allocation on a per capita basis. A sample analysis using the 1999 annual budget is
given below:

Table 2.15.2
The 1999 Annual Budget

CY 1999 BUDGET PER

BUDGET ITEM
BUDGET (Peso) CAPITA (Peso)
General Public Services 658.18 949.25
Education, Culture & Sports 14.52 20.94
Health Services 198.89 286.84
Housing & Community Dev't. 76.98 111.02
 Social Welfare Services 31.62 45.60
Economic Services 285.98 412.45
Other Services 200.12 288.62

ESTIMATED TOTAL 1,466.29 2,114.73

Source: Cebu City Budget Office, 2000

Figure 2.15.3
1999 Annual Budget Cebu City
Other Services
14%

General Public Services

Economic Services 45%
20%

Social Welfare Services

2%

Housing & Community Dev't.

5%

Education, Culture & Sports

Health Services
14% 1%

General Public Services

Education, Culture & Sports
Health Services
Housing & Community Dev't.
Social Welfare Services
Economic Services
Other Services

Project Implementation Management

The City's capability of implementing development projects is relatively ahead

than that of the other cities in the Region. For instance, the responsibility in
the maintenance of national roads, located within the territorial jurisdiction of
the City, is assumed by the City Government. This was made possible
through the signing of a Memorandum-of-Agreement (MOA) with the DPWH.

The City is also the first LGU that accessed direct funding from ODA sources,
specifically, the Japanese Government OECF (now JBIC) for the MCDP III-
South Reclamation Project. The arrangement for the release of the loan
proceeds for the project is coursed through a GFI-conduit Land Bank of the
Philippines (LBP). The city put up a project coordination unit and created a
special project monitoring and evaluation committee for purposes of the
reclamation project. However, since this is something new in urban
governance, some systems and procedures need to be further studied and
institutionalized.

Also, given a long list of programs/projects, there is a need to set up a system

of prioritizing or short-listing projects given limited funds or financing sources
constraints.
 Multi-Dimensional Planning

An innovation in urban governance is the multi-dimensional planning. The

City's planning process, especially in urban infrastructure project planning
and implementation, is made possible through consultation with adjacent and
neighboring LGUs. Multi-Dimensional planning started first with MCLUTS,
which eventually progressed through a multi-year multi-programmed MCDP.
The City Mayor chairs the MCDP Committee.

Lately, the RDC created the Metro Cebu Development Council (MCDC) in
cognizance of the demands of more inter-city and inter-LGU cooperation and
coordination in the implementation of metro-wide programs and projects.

.15.2 Potential and Constraints

Constraints

a) Institutionalization of Planning as a "Process"

The need to institutionalize urban development planning as a "process" rather

than to suit the demands the present administration or to be based on the
electoral term.

b) Absorptive Capacity of City Government

The tendency of the City Government officials to be more interested in new

capital investment without due regards to the cost of sustaining the capital
assets to attain the originally planned returns or without due concern on the
long-term consequence of the multi-faceted rapid expansion.

c) Organizational Streamlining

The non-negotiable requirement of readjustment or structural reforms

considering the city's existing organization that seems to be unresponsive to
the current demands for services of the constituents and to make the new
organization more responsive to problems of modern-day administration thus
promoting efficiency in the delivery of various urban services.

d) Institutional Capability Building

The urgent requirement of formulating and conducting an institutional capability

building program, specifically on managerial systems improvement,
enhancement of local tax generation or improvement of local financial
administration, promoting urban investments, management of local projects and
formulation of regulatory framework.

e) Establishment of Performance Standards

The city to come up of a scoreboard of planning indicators, setting of

productivity standards with emphasis on the desired and attainable
performance in terms of institutional objectives and targets.

f) Monitoring and Evaluation Process

 This pertains to the lack of financial resources, including financial planning and
forecasting to fund priority programs and projects, especially those that are
capital-intensive in nature.

g) Lack of appreciation on Development, governance and Sustainability by

the Citizenry

- Lack of active involvement of other sectors of society particularly private

sectors
- Lack of awareness of the Citizenry including the officialdom that all the
problems are interrelated. Each problem cannot be isolated from the
others
- Lack of Performance Productivity targets and measures
- Lack of Planning before project implementation
- Poor Monitoring and Evaluation strategies/techniques

h) Bureaucratic Red Tape

- Officials not keen on Simplified Systems and Procedures

- Systemic Corruption

i) Highly Politicized and Bloated Bureaucracy

- Poor hiring procedure

- Overstaffed in some departments
- Generally clannish attitude
- Outdated COA rules and regulations
- Highly partisan politics
- Lack of political will

Potentials

a) Strong and Active Peoples Organization and NGOs.

- Good number and wide profile of peoples organization and non-government

groups
- Aware and active types
- Educated, qualified and development oriented type

b) Financial Capability

- Availability of funding from external institutions

- Good international relations

c) Educational, Trading and Financial Center of the South

- Highly educated populace

- Competitive educational institutions
- Abundance of highly qualified managers/technical experts

d) Highly Skilled, Industrious and Values-oriented Labor Force

- Religiosity
- Flexible and hardworking labor force
- Survival attitude (ingenuity)
 e) Highly Educated/Qualified and Development-oriented Elective Officials
and Department Heads

Sectoral Vision

By 2020, Cebu City shall have achieved and sustained an efficient, effective and
people oriented seat of Government.

Sectoral Mission

To create, project to the world and sustain a seat of Government that is professional,
self-sustaining, reputable civil servants, ISO Certified and committed involvement
and participation of the Private Sector.

Sectoral Objectives

To initiate readjustments in order to streamline the city organizational structure to

make it responsive to the current demands and modern-day administration.

To formulate and implement an appropriate institutional capability building program

that will focus more on urban governance, efficiency and productivity.

To promote transparency, good governance and management.

.15.3 Strategies

a. Administrative Governance:

1. Reengineering, Streamlining

Promote an efficient and effective governance through reengineering,

streamlining and right-sizing the bureaucracy. By enhancing public service
for public satisfaction there is a need to inculcate certain core values among
public servants.

Adopt and inculcate the orientation of public service by treating the public as
customers.

Redefine the configuration of the government structure of bureaucracy and

proper focusing of government programs and projects, giving priority of
development focused function highlighted in the Master Plan.

2.Performance Indicator

Establish performance indicators and benchmark standards and replicating

best practices of foreign, national, regional and local government agencies for
continuous improvement of public service.

The City shall prepare a scoreboard will indicate the level of local productivity
and performance. The indicators must include the following:

- Local Services and Standards (Part I of the DILG-LPPM)

- Inventory of Management Tools (Adequacy/Availability)
- Analysis of Service Budget Allocation

3.Information Technology
 Expand the use of information technology to enhance productivity, efficiency
and effectiveness of government operations. Proper and judicious use of IT
will ensure compatibility, sustainability and cost-effectiveness vis-à-vis
adopted systems and procedures and to create a value-chain for the
customers or clients of public service.

4.Capability Building

Continuous building of capacities, core competencies and skills of civil

servants and civil society organizations to handle new demands in a changed
environment.

The capability-building program will be phased and prioritized accordingly and

in all of these programs, the involvement of active participation of the GOs,
NGOs and Pos shall always be strengthened and maintainedThe following
capability-building components are recommended:

- Improving Local Finance Administration

- Urban Services Delivery/Strategy for Private Sector Participation
- City Regulatory Framework Formulation (e.g Development Control, City
Environment Code, Administrative Code, Market Code, etc.)
- Project Implementation Management
- Managerial Systems Improvement
- Promoting Urban Investments
- Strengthening the Corporate Arm of the City Government
- Project Preparation (including BOT Project Processing)

The CREMDEC as the Technical Secretariat of OMAC and the lead unit
responsible for most the above shall be supported fully and sustained
appropriately.

5.Compensation and Incentives

Rationalize the compensation and incentives based on a productivity system

taking into consideration the reengineering objectives. Specifically, define
and rationalize the institutional setup and policy making process on
compensation and set up a system that can address specific dysfunction.

b. Economic Governance:

1. Effective Financial Management

Setup an effective public expenditures management system for better

allocation and prioritization of public resources. Adopt a multi-year
perspective in budget planning and establish an effective local accounting
and auditing system.

2.Privatization

Focus government priorities under a privatization framework. Pursue a

privatization program of inefficient public services and local enterprises to a
certain extent will protect the interests of consumers. Privatization shall be
utilized only to eliminate inefficiency and imperfections and prevent any
adverse effects of competition to consumers such as monopolies, oligopolies,
cartels and other forms of profiteering.

3.Poverty Alleviation
 Enhance government responsiveness to the poor by ensuring that policies on
poverty alleviation are supported by specific programs and projects.
Encourage community participation to fully and comprehensively addressed
the poverty situation.

c.Political Governance

1.Community Participation

Empower non-government organization (NGOs) and people organizations

(POs) in the war against poverty and crime. Empower NGOs and POs
through joint ventures in poverty programs while assist the strengthening of
the five pillars of the criminal justice system.

2.Law Enforcement

Improve peace and order and law enforcement. Professionalize the police
force; improve recruitment standards and training and increasing the salaries
and performance incentives for policemen.

3. Graft and Corruption

Eliminate graft and corruption by adopting a multi-pronged strategy to combat

corruption.

4.Sister City

Pursue a sister city relationship and arrangements with local and foreign
cities.

d. Fiscal Governance

1. Improvement in Fiscal Management

With the expected increase in the local tax revenue of the city, comes with it,
the need to redirect prioritization in the utilization of local funds. The new
funds that will come in the following years should be reserved for the
implementation of urgent projects and programs.

Likewise, if it is still possible, reduction of the current level PS and MOOE

budgets will also improve the allocation schedule of the budget categories.
There should be serious efforts in putting to action the commitment to
streamline bureaucracy.

2.Improvement of Revenue Generation Activities

Suggested actions are:

• Updating of the local tax code;

• Improving collection system by fielding personnel and automation of the
revenue system;
• Installation of a revenue information that can easily update local
executives on status, improve the monitoring of revenue generation
activities as well as the enforcement of its laws and ordinances and can
assist officials in improving the planning-budgeting systems of the city;
and
 • Aggressive tax campaign.

3.Widening the Use of Corporate Powers

As provided by the 1991 LGC, the Cebu City Government Unit can “exercise
powers as a political subdivision of the national government and as a
corporate entity representing the inhabitants of its territory.” As such, the city
government can acquire and convey real or personal property, enter into
contracts and exercise such other powers granted to corporations.

One of the schemes that will widen the city government’s use of corporate
powers is through the conduct of build-operate-transfer (BOT) business with
private investors. The BOT further broadens the area for private sector
participation for infrastructure development.