Garcia: Cebu City has zero debts, P12.1 billion bank deposits

Local

OUTGOING Mayor Raymond Alvin Garcia declared that Cebu City has P12.1 billion in the bank and zero debt, but his successor, Mayor-elect Nestor Archival Sr., isn’t entirely convinced.

In a teleconference on Tuesday, June 17, Garcia reported that, as of June 2, the city government holds P12,095,391,052.21 in total bank deposits, a figure he attributed to “efficient collection and prudent spending” during his one-year term.

“The city has P12.1 billion in bank deposits that we are leaving to the incoming administration, and we are proud to say that the city has zero debts,” Garcia said.

According to Garcia, the funds are distributed across several key accounts: P7,900,871,190.83 in the General Fund, the primary source for the city’s operational expenses; P1,547,066,343.80 in the Trust Fund, reserved for specific projects and obligations; P2,521,057,486.70 in the Special Education Fund (SEF), allocated for educational programs and school-related expenditures; and P2,257,071.98 in foreign currency accounts.

He said that the city was recently recognized by the Bureau of Local Government Finance (BLGF) as the top performer in Central Visayas in terms of locally sourced revenue for 2024, having collected nearly P6 billion.

“That’s one of the factors that contributed to the city’s substantial funds. Our collection efficiency and prudent spending enabled us to control our expenses,” Garcia said.

Garcia said that the city has paid off all previous debts, including the one for South Road Properties (SRP), and has sufficient funds to sustain operations even without tax increases.

“This amount doesn’t even include real estate assets. The city is in good financial health. Even if the number of employees remains the same over the next three years, the city can afford it,” he added.

Despite Garcia’s disclosure, Archival remained cautious.

In a separate interview also on Tuesday, he acknowledged Garcia’s report but questioned whether the figure is realistic and sustainable, particularly for payroll and operations in the coming months.

“I respect the mayor’s statement. But from the early reports I’ve seen, I’m not sure if that’s enough,” Archival said. “We’re spending around P40 million per week on our job-order workers, and I’m worried that amount may not be sustainable.”

Archival stressed that he has yet to see the final and verified financial records, and the P12.1-billion claim still needs to be thoroughly reviewed by his transition team.

“If our revenue is about P10 billion annually, then how can we have P12 billion in the bank? Maybe there are other sources,” he added.

Garcia clarified that some of the funds represent obligations for ongoing or awarded projects that have yet to be paid, such as the upper floors of the Cebu City Medical Center (CCMC) and additional school buildings.

“There are programs we’ve started but haven’t paid for yet, like the CCMC’s third to seventh floors. But the city has more than enough to answer for these obligations,” he said.

He added that the bank deposits are not fully appropriated and may serve as a guide for the incoming administration in budgeting.

“Just like other LGUs, this is standard budgeting procedure. The deposits provide the incoming administration a starting point,” Garcia said.

Moreover, Garcia reiterated that he will not interfere in Archival’s decisions regarding personnel and operations, saying it is within the incoming mayor’s “management prerogative.”

Still, he pushed back against claims that the city might lack funds to pay salaries.

“I agree with giving three months to assess employees. But if the reason is that the city doesn’t have money for salaries, then I have to correct that. We have proven that we have P12.1 billion in bank deposits,” he said.

Garcia is currently on leave and is expected to receive the Maharlika Award for Outstanding Public Servant from the BLGF on June 19, in recognition of Cebu City’s performance in local finance under his administration.

“This is a vindication for me. Despite criticisms, we exercised discipline in spending, and the BLGF recognition is proof,” Garcia said.

When asked about the Real Property Valuation and Assessment Reform Act (RPVARA) and its implementation in Cebu City, Garcia deferred to the mandate of the BLGF and the City Council.

“It’s up to the BLGF to make the recommendation, and the council will adopt it. I think regular reviews of property values are necessary, and I leave that process to the national guidelines,” he said.(TGP)