CREATION OF LGU’s and delivery of basic, regular and direct services and effective

 A local government unit may be created, divided, merged, governance of the inhabitants within its territorial jurisdiction.
abolished, or its boundaries substantially altered by law
enacted by congress in case of Province, City and ROLE OF PROVINCES
Municipality. The Regional Legislative Assembly of A province, which is compose of cluster of municipalities, or
ARMM is now conferred with power to create municipalities and components cities, is a political and corporate
municipalities within its territorial jurisdiction. unit of government and serves as a dynamic mechanism for
 Sangguniang Panlungsod or Sangguniang Panlalawigan in developmental processes and effective governance of local
case of barangay.. government units within its territorial jurisdiction
 Such power was delegated by congress in order
to enhance the delivery of basic services in MAIN SOURCES OF REVENUES OF LGU’s
indigenous cultural communities. A. Under the Constitution
 The president has NO POWER to create LGU 1. Taxes, fees and charges
 SUBSTANTIVE REQUISITE (for creation ofLGU) 2. Share in National Taxes – IRA
3. Share in the proceeds of the utilization and
 Land area
development of the national wealth within their
 Income
areas.
 Population B. Under the Local Government Code
LGU MINIMUM MINIMUM MINIMUM 1. Floating of Bonds
CREATED INCOME POPULATION LAND AREA 2. Grants/Aids
2,000 but
Barangay No Minimum 5,000 for No Minimum FUNDAMENTAL PRINCIPLES ON LOCAL TAXATION
Requirement Metro Manila Requirement 1. Taxation shall be uniform in each LGU
and HU City 2. Taxes, fees, charges and other impositions shall:
Municipality P 2.5 M and 25,000 and 50 sq. km. a. Be equitable and based as far as practicable on
the taxpayer’s ability to pay
Comp. City P 100 M and 150,000 or 100 sq. km
b. Be levied and collected only for public purpose
HU City P 50 M and 200,000 No Minimum
c. Not be (UN-EX-OP-CON) unjust, excessive,
Requirement oppressive, or confiscatory
Province P 20 M and 250,000 or 2,000 sq. km d. Not contrary to (L-PP-NEP-RT) law, public policy,
national economic policy, or in restraint to trade
 PROCEDURALREQUISITE 3. The collection of taxes, fees, charges and other
 Plebiscite impositions shall in no case be let to any private
 FIXED BOUNDARY – It is necessary that it must have persons
its boundary fixed, definite and certain, in order to 4. The revenue collected pursuant to the provisions of the
avoid conflicts of governmental powers. LGC shall inure solely to the benefit of, and be
subject to disposition by, the LGU levying tax, fee,
ROLE OF BARANGAYS charge or other imposition unless otherwise specifically
 It serves as the primary planning and implementing unit provided therein
of government policies, plans, programs, projects and 5. Each LGU shall, as far as practicable, evolve
activities in community. progressive system of taxation
 Serves as a forum where the collective views of the
people may be expressed, crystallized, and considered FUNDAMENTAL PRINCIPLES OF LOCAL FISCAL
as well as where disputes may be amicably settled. ADMINISTRATION
 The REMEDY in case of boundary dispute is plebiscite 1. No money shall paid out of the local treasury except in
pursuance of an appropriation ordinance or law
ROLE OFMUNICIPALITIES 2. Local government funds and monies shall be spent
 Municipality consists of a group of barangays which solely for public purpose
serves a general governmental purpose for the
coordination and delivery of basic, regular and direct EMINENT DOMAIN (PURPOSES AND LIMITATIONS
services, and effective governance of the inhabitants  Public Use
within its territorial jurisdiction.  Public Purpose
 Public Welfare
ROLE OF CITIES  For the Benefit of the poor and the landless
A city consists of a group of barangays to which serves
primarily as a general purpose government for the coordination

NAMING OF LGU’S PUBLIC PLACES, STREETS AND
STRUTURES
1. They shall not be named after a living person, nor
may a change of name be made unless for justifiable
reason
2. Such change of name be made not oftener than once
in 10 years.
3. Those with historical, cultural or ethnic significance
shall not be changed unless unanimous vote of the
sanggunian concerned and in consultation w/ the NHI.
4. A change of name of a public school shall be made
only upon the recommendation of the local school
board concerned
5. A change of name of public hospitals, health
centers, and other health facilities shall be made
only upon the recommendation of the local health
board concerned
6. A change of name of any local government unit shall
be effective only upon ratificationin a plebiscite
conducted for the purpose in the political unit directly
affected
7. In any change of name, the Office of the President, the
representative of the legislative district concerned, and
the Philippine Postal Corporation.
GOVERNOR OR MAYORS VETO OF ORDINANCE
1. The ordinance is ultra viries
2. That it is prejudicial to public welfare
VETOED ORDINANCE CAN BECOME A LAW
1. The sanggunian may override the veto by 2/3 vote of
all its members
2. Failure of the Local Chief Executive to communicate
the veto to the sanggunian within 15 days in case of a
province and 10 days in the case of city or municipality.
The ordinance shall be deemed approved as if he
signed it
EFFECTIVITY OF ORDINANCE
1. Unless otherwise stated in the ordinance approving the
local development plan and public investment
program, it shall take effect after 10 days from
posting at the provincial capitol or city, municipal or
barangay hall and 2 other conspicuous places.
2. Ordinances with penal sanctions shall be posted at
the provincial capitol, or city, municipality or barangay
hall for a minimum of 3 consecutive weeks, and
shall be published in a newspaper of general
circulation where available, within the territorial
jurisdiction of the local government concerned, except
in the case of a barangay ordinance. Unless otherwise
provided therein, said ordinance shall take effect on
the day following its publication, or at the end of
period of posting, whichever occurs later.
JURISDICTION IN SETTLING BOUNDARY DISPUTES
1. Sangguniang Panlungson or Sangguniang Bayan
2. Saguniang Panlalawigan
3. Joint Sanggunians of the Provinces
4. Joint Sanggunian of the Parties
POWER TO ENTER INTO CONTRACTS
 Requisites of a valid municipal contract
1. The LGU has express or implied power to enter into
particular contract.
2. The contract is entered into by the Local Chief
Executive on behalf of the LGU with prior
authorization by the sanggunian concerned
3. The contract must comply with certain substantive
requirements.
i.e. there must be an actual appropriation
ordinance by the sanggunian and a certificate of
availability of funds by the local treasurer
4. The contract must comply with the formal
requirements of written contract
ULTRA VIRIES CONTRACT
A contract is ultra viries in the absence of the 1st and 3rd
requisites and shall be null and void