Cityhood Laws: Pros and Cons

By Dennis Jay A. Paras

B-Laws-1
Public Corporation (Block C)

History

In the olden times, the first civilizations were established beside the world’s major rivers

like the Nile River in Egypt, the Tigres-Euphrates River in Mesopotamia, the Indus River

in India and Pakistan, and the Yangtze River in China. 1 These civilizations were later

identified as the first cities of the ancient world. These cities were known to be the

center of culture, trade, and the haven for progress and innovation. Compared to the

settlements or encampments which were rampant back then, cities are more self-

sufficient, progressive and teeming with economic opportunities. This is the reason why

people from the rural areas had performed countless diaspora to these cities throughout

the course of history. Not long after the establishment of the aforementioned city-states,

other territories had also chosen the path to becoming a city. For the purpose having an

understanding of what a city is, it is better to include a definition of such.

What is a city?

A city is defined as a permanent and densely settled place with administratively defined

boundaries whose members work primarily on non-agricultural tasks. 2 In other words, it

is where the different industrial centers, production plants and different establishments

are located. In the Philippine context, a city is a massive area which attracts migrants

from different provinces and localities in search of better economic opportunities

through providing manpower services in different industrial plants and business

establishments that are usually found there. A city usually has a high number of

population, which means that is possesses a high amount of human capital and even

higher revenues through tax collection and other sources provided by law.

During the Pre-war period, there were 10 chartered cities of the Philippines: Manila

(1901) being the oldest among them, followed by Baguio (1909), with the cities of Cebu,

Davao, Iloilo and Zamboanga (1937), and followed by Bacolod and Tagaytay City

(1937), with Quezon City (1939) on the 5th and San Pablo City, Laguna (1941) at the 6 th
1
McCannon, John (2008). Barron's AP World History. Barron's Educational Series Inc.
2
Caves, R. W. (2004). Encyclopedia of the City. Routledge. p. 99.
rank.3 These areas were conferred with the status of a chartered city as they are located

in advantageous and strategic locations, with the purpose of establishing new

government centers in otherwise sparsely populated areas where rural-oriented and

municipal governments are unable to handle.

The post-war period (1946-present) saw the rise of numerous cities, with Dagupan

(1947) as the oldest among the group and General Trias City (2015) as the newest city 4.

Other cities are far from the physical feats of their predecessors: big land areas, equally

bigger population and numerous sources of income and revenue. Some of these post-

war era cities were not vast in terms of the total land area and population, yet they

attained the status of a city due to the qualification in income, population, etc.

As of September 7, 2019, there are 146 Philippine cities in total. With this in mind, one

might ask; what does it take for a municipality to become a city?

Requirements for Cityhood

According to Republic Act 7160, also known as the Local Government Code of 1991,

these are the legal requirements that should be present in order for a municipality to

become a city:

(a) A municipality or a cluster of barangays may be converted into a component city if it

has an average annual income, as certified by the Department of Finance, of at least

Twenty million (P20,000,000.00) for the last two (2) consecutive years based on 1991

constant prices, and if it has either of the following requisites:

(i) a contiguous territory of at least one hundred (100) square kilometers, as certified by

the Lands Management Bureau; or

(ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as

certified by the National Statistics Office:

3
"List of Cities". Philippine Statistics Authority – National Statistical Coordination Board. (2011)
4
"List of Cities". Philippine Statistics Authority – National Statistical Coordination Board. (2011)
Provided, That, the creation thereof shall not reduce the land area, population, and

income of the original unit or units at the time of said creation to less than the minimum

requirements prescribed herein.

(b) The territorial jurisdiction of a newly-created city shall be properly identified by metes

and bounds. The requirement on land area shall not apply where the city proposed to

be created is composed of one (1) or more islands. The territory need not be contiguous

if it comprises two (2) or more islands.

(c) The average annual income shall include the income accruing to the general fund,

exclusive of specific funds, transfers, and non-recurring income. 5

The Local Government Code of 1991 is clear in terms of setting the requirements and

process of cityhood. However, in the exceptional case of League of Cities of the

Philippines vs. COMELEC6, a certain law (RA 9009, also known as the Cityhood Laws)

tried to challenge the set requirements that are found in Sec 450 of RA 7160 for the

purpose of turning more municipalities into cities. The question is; what are the pros and

cons of RA 9009 (Cityhood Laws)?

The Pros of RA 9009

First of all, the amendment presented by the said law, with regards to the income

requirement (from Php 20,000,0007 to Php 100,000,0008) has an important purpose. To

borrow the words of the late former Senator Aquilino “Nene” Pimentel, its rationale was

to restrain the “mad rush” of municipalities to convert into cities solely to secure a larger

share in the Internal Revenue Allotment despite the fact that they are incapable of fiscal

independence.9 It serves as an added requisite for the creation of cities so that such

process would be subjected to scrutiny and would deter the creation of “half-baked”

cities for the personal purposes of its local government officials.

5
Sec. 450, RA 7160- Local Government Code of 1991
6
G.R. No. 176951 (2008)
7
Sec. 450 (a), RA 7160- Local Government Code of 1991
8
Sec. 1, RA 9009- Cityhood Laws (2001)
9
Sponsorship Speech of Senator Aquilino Pimentel, 5 October 2000 .
Also, by amending Section 450 of the Local Government Code, RA 9009 ensures that

every municipality that plans to undergo the progression to cityhood will be able to meet

the financial and economic demands of such tedious and grueling process. By setting a

higher income requirement for cities (Php 100,000,000.00 in 2 consecutive years), local

government units will be more stable and economically prepared for what is to come

after undergoing the process of becoming a city.

Lastly, RA 9009 acts as an acid test for municipalities who are planning to convert into

cities. In the sponsorship speech of the late former Senator Aquilino Nene Pimentel,

most aspiring municipalities tend to say that they qualify in terms of financial

requirements by incorporating the Internal Revenue share of the taxes of the nation

added on to their regularly generated revenue. If one would follow that thought, it would

appear as if all municipalities in the country would qualify to become cities. 10 This

means that the income shall be sourced from locally generated funds. By setting a

higher standard, the process of becoming a city would be more rigorous instead of

being lax.

The Cons of RA 9009

First of all, the imposition of the required income of Php 100,000,000.00 for two

consecutive years, as provided by RA 9009, is too steep a requirement for aspiring

municipalities, especially those who have already complied with the total number of

population and land area, as most municipalities do not usually possess that kind of

income.

Secondly, the amendment to the requirements that was set by the Local Government

Code would be detrimental to the cause of aspiring municipalities who have tendered

their petition for cityhood prior to the imposition of RA 9009. This would result to the

revocation of their application for cityhood, as most of them have followed the previous

requirement for income (Php 20,000,000.00 for two consecutive years). To simply put it,

the passage of the law in question would be disadvantageous to the cause of aspiring

municipalities.

10
II Record, Senate, 13th Congress, p. 164 (October 5, 2000)
Lastly, as stated by Associate Justice Reynato Puno in his dissenting opinion on

League of Cities of the Philippines vs. COMELEC 11, there must be a strict compliance

with the express command of the Constitution that “no city x x x shall be created x x x

except in accordance with the criteria established in the local government code.” The

conversion of municipalities into new cities means an increase in the Internal Revenue

Allotment of the former municipalities and a corresponding decrease in the Internal

Revenue Allotment of all other existing cities.12 This means that there would be a great

economic disparity between the new and the existing cities, as newly-created cities

under RA 9009 will be more fortunate than those that were created prior to the passing

of the said law.

Conclusion

In ascertaining whether a law is considered as a boon or bane to the best interests of

the government, laws such as the Republic Act 9009, should not be eyed only in face

value or by the letters of such law, but through looking at the intent of its framers, which

is the spirit of a law.

To end, one should always bear in mind this legal maxim: In construing laws, one

should not look at the letters that killeth, but by the spirit that giveth life.

11
G.R. No. 176951, G.R. No. 177499, G.R. 178056 (2011)
12
Excerpts from J. Puno’s Dissenting Opinion (2011)