Republic of the Philippines

OFFICE OF THE CITY MAYOR

City Government of Baguio

MESSAGE OF HON. BENJAMIN B. MAGALONG

ON THE PROPOSED CITY BUDGET
FOR FISCAL YEAR 2024

September 15, 2023

The HONORABLE MEMBERS

Sangguniang Panlungsod
Baguio City

Thru: The Presiding Officer, HON. FAUSTINO A. OLOWAN, Vice Mayor

Ladies and Gentlemen:

May we respectfully submit the FY 2024 Local Expenditure Program (LEP) in the amount
of TWO BILLION SEVEN HUNDRED FORTY-FIVE MILLION TWO HUNDRED
SEVENTY-FOUR THOUSAND AND ONE HUNDRED SEVENTY-ONE PESOS
(₱2,745,274,171.00), for your consideration and consequent authorization.

FY 2024 EXPENDITURE PROGRAM

The proposed LEP for FY 2024 amounts to ₱2.745 billion which is 14% or ₱321.5 million
higher than the ₱2.424 billion FY 2023 appropriations. The estimated income from local
and external sources as certified by the Local Finance Committee are as follows:

Type of Revenue Amount %

Beginning Balance ₱ 60,000,000 2%

LOCAL (INTERNAL SOURCES)

1. Tax Revenue 760,810,000 28%
2. Non-Tax Revenue 435,977,000 16%
Subtotal 1,196,787,000 44%
EXTERNAL SOURCES
1. Share from National Tax Allotment (NTA) 1,234,978,171 45%
2. Share from Economic Zones 250,000,000 9%
3. Share from PCSO 3,500,000 0%
Subtotal 1,488,478,171 54%
TOTAL ₱ 2,745,274,171

This income is 14% higher than FY 2023 income estimates. Included in the tax revenue
is an amount of ₱103 million, representing the estimated increment of the proposed
amendment of business tax ordinance, for submission and consideration of that August
body.

The above-estimated income will support the following expenditure items for the efficient
and effective dispensation of basic services under Section 17 of R.A. No. 7160 or the
Local Government Code, as follows:

Telefax No: (074) 442 - 8931 I website: http://www.baguio.gov.ph

Expenditures by Expense Class
Presented herein is the breakdown of the objects of expenditure of the FY 2024 estimated
budget:

Particulars Amount
Personnel
₱ 935,772,000
Services
Maintenance
and Other
1,087,424,171
Operating
Expenses
Capital Outlay 70,899,000
Development
410,000,000
Fund
DRRM Fund 134,265,000
TOTAL ₱ 2,745,274,171

Personnel Services (PS). A total of ₱935 million or a 4% increase from the previous year
was allocated to cover the salaries, benefits, allowances, and other compensation of the
city government officials and employees, authorized under existing laws, rules and
regulations.

Maintenance and other Operating Expenses (MOOE). MOOE has an increase of 14% or
₱147 million. These will support the regular operating expenses of the city government -
its departments and adjudicated national offices, implementation of programs and
services, subsidies to barangays, and support to other partner government agencies.

Capital Outlays (CO). Provision for machinery, equipment, structures, and land
improvements of various departments, with a total amount of ₱71 million, or a decrease
of ₱49 million from FY 2023.

Priority Development Projects. A total of ₱410 million is earmarked for development

projects: road development (167M), construction of Home Care for the Elderly (₱20M),
recovery of road right-of-way (₱56M), construction and completion of sewer lines (₱31M),
construction of multi-purpose buildings (₱76M), land banking (₱10M), and various
barangay development projects (₱42M).

Expenditures by Sector

Particulars Amount %
General Public Services ₱ 930,059,171 34%
Social Services 684,941,000 25%
Economic Services 868,401,000 32%
Other Services 261,873,000 10%
TOTAL ₱ 2,745,274,171

Telefax No: (074) 442 - 8931 I website: http://www.baguio.gov.ph

Distribution per Department
The proposed expenditures of the different Offices ranked according to their budgetary
allocation, are as follows:

Office Appropriation %
1 City General Services Office 449,377,171 16%
2 City Health Services Office 333,263,000 12%
3 City Engineering Office 166,794,000 6%
4 City Mayor's Office 131,276,000 5%
5 City Social Welfare and Development Office 126,276,000 5%
6 Sangguniang Panlungsod 119,863,000 4%
7 City Environment and Parks Management Office 111,042,000 4%
8 City Treasurer's Office 97,846,000 4%
9 City Building and Architecture Office 88,117,000 3%
10 City Administrator's Office 69,174,000 3%
11 City Veterinary and Agriculture Office 66,448,000 2%
12 Baguio City Police Office 40,000,000 1%
13 City Human Resource Management Office 33,912,000 1%
14 City Planning, Development and Sustainability Office 33,564,000 1%
15 City Assessor's Office 29,714,000 1%
16 City Accounting Office 27,684,000 1%
17 City Legal Office 22,090,000 1%
18 Department of Education - Schools Division of Baguio 21,617,000 1%
19 City Budget Office 21,602,000 1%
City Mayor's Office - City Disaster Risk Reduction
20 Management Office 19,852,000 1%
City Mayor's Office - Early Warning and Surveillance
21 System 18,411,000 1%
22 City Civil Registry Office 15,607,000 1%
23 City Mayor's Office - City Library 15,483,000 1%
24 Baguio City Jail - Male 9,097,000 0%
25 Baguio City Fire Station 6,962,000 0%
26 City Prosecutor's Office 6,095,000 0%
27 Regional Trial Court 5,769,000 0%
28 Baguio City Jail - Female 2,894,000 0%
29 Municipal Trial Court 2,503,000 0%
30 Commission on Audit 1,763,000 0%

This Executive Budget took into consideration the guidelines prescribed by the DBM Local
Budget Memorandum No. 87, dated June 9, 2023, for FY 2024 budget preparation.

Moreover, we are committed to sustain the implementation of our 7-point Agenda through
this budget.

With all the foregoing, may I again solicit your usual support for the approval of the FY
2024 Estimated Budget.

Thank you.

Very truly yours,

BENJAMIN B. MAGALONG
City Mayor

Telefax No: (074) 442 - 8931 I website: http://www.baguio.gov.ph