alvarez v.

guingona

- RA 7720 - converts municpality of santiago, isabela to a city.

WON IRA is included in AAI? yes

Alvarez contends that Santiago cannot become a component city because its AAI is
below 20M (41M total income - IRA/2 years = 13M AAI)

certification from DOF - AAI of santiago is 20M (Alvarez says na inaccurate because
IRA is not part of income of LGU, IRA is budget aid from govt)

Ruling:
IRA is part of LGU income
LGU is vested:
a. right to create own source of revenue
b. right to share in national taxes (IRA)
c. right to equitable share in proceed of national wealth

a, b, and c accrue to the general fund of LGU

League of Cities - 2008 case

RA 9009 = increase annual income requirement for municipalities to cities from 20M
to 100M (to avoid conversion just to get bigger share in IRA)

Cityhood laws are unconsti and should not apply to those whose application was
already pending
- P100M requirement is not retroactive
- consti prescribes all criteria in creating a city in the LGC and not in any law

2009 case
- No, cityhood laws are not unconsti.
- RA 9009 intended the LGUs covered by cityhood laws to be exempt from 100M
requirement hence

2010 case
- yes, cityhood laws are unconsti
- contrary again to art. 10, sec 10
- to be valid, exemption to income req must be written in LGC and not in cityhood
laws
- operative fact doctrine applies

Feb 2011 case

- No, cityhood laws are not unconsti
- did not violate Art. X and LGC

April 2011
- cityhood laws are consti
- do not violate