The basic social services program of the Bacolod City government will not be affected by the loan repayment, Bacolod Mayor Alfredo Abelardo Benitez said in response to Vice Mayor El Cid Familiaran’s claims.
“Let’s set the record straight so that the constant lying of the other party will stop,” Benitez said in a statement on Friday, March 28.
He said the loan line granted to the city government was only P4.1 billion.
“Based on the record, what was availed of by the city for various projects is only P2.05 billion at this point in time,” he said, adding that the fund has already been used.
Benitez said the P4.1 billion loan was approved because the city government has the capacity to repay.
He also defended Bacolod’s “good financial standing,” for which the city government recently received an award.
“Our financial standing is in very good shape and healthy as we have just received an award of Financial Excellence from the Bureau of Local Government Finance,” Benitez said.
“In fact, in the last three years, Bacolod City had a budget increase from P3.2 billion to P4.4 billion, or an increase of P1.2 billion in just three years,” he added.
The loan payment, based on Section 324 of the Local Government Code of 1991, should not exceed 20 percent of the city’s regular income.
“However, based on our projected amortization payment, we will pay only eight percent out of our 2025 budget or P352 million, even including the payment for the P1.8 billion loan incurred by the Leonardia administration,” Benitez added.
The mayor pointed out that the P2.1 billion Super City Project is “not a loan but a public-private partnership project payable based on accomplishment in the next 10 years.”
Basic social services, he said, “for sure will not be affected as our financial obligation every year is less than what we projected to earn in the succeeding years.”
The city government even set aside a budget of P50 million for the Bacolod City Comprehensive Health Program and P50 million for social pension last year, and then increased it this year to P130 billion and P100 million, respectively.
“Aside from housing, future government and development sites, these projects are also an investment,” Benitez said.
“The lands we purchased are expected to triple its value in the next 10 years, and the gains of the projects that we will be spending now will have numerous gains and advantages to our constituents,” he added.
Earlier, Familiaran said the payment of the P6.5 billion loan will drain the resources of the city for social services.
He said if he is elected as city mayor in the May 12 midterm elections, he will have the P5.5 billion loan of the current administration reviewed./WDJ