1.1        LOCAL LEGISLATION

During the Calendar Year 2020, the Sangguniang Bayan was able to steer fifty (50) regular seasons. In addition, three (3) special sessions were conducted in order to discuss urgent resolutions and ordinances.

The Notable Resolutions and Ordinances that were thoroughly deliberated and subsequently approved and enacted were the following, but not limited to wit:

Table 3: List of approved Resolutions and Ordinances in 2020

1.2 PLANNING AND PROJECT DEVELOPMENT SERVICES

In 2020, the Municipal Planning and Development Office (MPDO) completed the preparation of the CY2020 Annual Investment Program (AIP), the updated Local Shelter Plan, the Gender and Development Plan for 2021 and GAD Accomplishment 2019. Moreover, it facilitated and coordinated the conduct of the Seal of Good Local Governance (SGLG) Assessment and the Cities/Municipalities Competitiveness Index (CMCI) Survey. The office endeavored to provide the required data/information and other pertinent documents and technical inputs.

The close coordination and linkage with other government agencies and local government departments contributed to the effective performance of the planning office. Secretariat and technical support functions to the Municipal Development Council (CDC) and its sectoral committees and other local special bodies such as the Local Finance Committee, the Local Health Board, the Local School Board were also provided. Moreover, the office also facilitated the conduct of Project Monitoring particularly those funded under the 20% Development fund and the Municipal Disaster Risk Reduction and Management Fund, as well as special projects with external funding.

In 2019, the MPDO continued the implementation of the Community-Based Monitoring System- Accelerated Poverty Profiling (CBMS-APP) Project. This resulted in the completion of data for the processing and generation of poverty maps in the next modules tentatively scheduled by 2020. But due to the Pandemic brought by the COVID -19, all activities related to CBMS are canceled to prevent gathering among the members and participants.

1. LAND USE AND ZONING REGULATION, URBAN DEVELOPMENT, AND HOUSING

In 2020, the Zoning Administration generated a much higher income than 2019 despite the effect of the Pandemic. This was achieved thru proper monitoring and inspection of establishments.  Coordination with the Business Permit and Licensing office was also done to ensure that every applicant must secure their zoning certificate/locational clearance before the issuance of their building permit and business permit.

Table 4: Income Generated from Land Use and Zoning Administrator, 2019-2020

Source: MPDO

• HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

1. ON TRAINING

Through the Human Resource Management and Development Office, Arayat conducted two (2) in-house training before the pandemic.

Table 5: Training Conducted by MHRMO for 2020

1. PARTICIPATION IN THE CELEBRATION OF THE CSC MONTH

LGU Arayat selected few personnel following health protocols, in participation of the

“E-Zumba Mo”, as part of the Civil Service Commission Month Celebration, which was done via Zoom.

1. REVISED CITIZEN’S CHARTER

In Compliance with the Republic Act 11032 “Ease of Business and Efficient”, MHRMO has fully complied the LGU – Arayat Revised Citizen’s Charter, regulated by the Anti-Red Tape Authority (ARTA) and have submitted the same before its deadline.

1. PROGRAM ON AWARDS AND INCENTIVES FOR SERVICE EXCELLENCE

The approved Program on Awards and Incentives for Service Excellence (PRAISE) by the Civil Service Commission (CSC) has given way in its implementation wherein 14 employees were granted cash awards of P 1,000.00 per year under Loyalty Award, serving 10 years in service, and another succeeding 5 years of service.

1. RECRUITMENT & SELECTION

On the recruitment and selection, 16 of vacant positions were filled out, 5 of these were promotions and 11 are newly – hired employees. The total workplace of the LGU – Arayat is now 499 of which 12 are Elective Officials, 85 Permanent, 2 Co – Term, 55 Casual and 345 Job Order status.

1. WELFARE & BENEFITS

Government Service Delivery Act of 2018, on the employee’s welfare and benefits, the LGU of Arayat has been implementing RA 11466, the Standardization Law of 2019 and Notice of Salary Adjustment, 1^st Tranche were issued to all Municipal Personnel of all status except Job Order. Salary adjustments thru Step Increment also granted to deserving employees, having three (3) continuous services in the government.

LGU – Arayat was qualified in the awarding of Performance-Based Bonus (PBB) where in it granted cash incentives to all qualified employees last July 14, 2020.

During the COVID-19 outbreak last March & April, wherein a total lockdown was announced by the government under Enhanced Community Quarantine (ECQ). Frontliners and other vital personnel never stopped reporting physically at work.  LGU – Arayat paid all their Hazard Pay of P 1,000.00 per day as mandated by Administrative Order No. 26, authorizing the Grant of Hazard Pay to government personnel who physically report for work.

From the LGU Personnel, Arayat LGU has 2 mandatory retirees, dated May 14, 2020 and October 21, 2020 who received their retirement benefits in full with Plaque of Appreciation.

1. STRATEGIC PERFORMANCE MANAGEMENT SYSTEM (SPMS)

IPCR and DPCR of all Departments are regularly done by employees, assessed by supervisors and submitted at the Civil Service Commission, in compliance every July and January of the year.

1.4   FISCAL ADMINISTRATION

1. GENERAL FUND

For the year 2020, the Municipality of Arayat generated a consolidated income for both Local Sources and External Sources amounting to ₱ 365,816,732.07 which increased by 19.55% from 2019 consolidated income of ₱ 306,004,156.34. The increase of 19.55%, much higher than in previous years, was due to the additional subsidy received from the Bayanihan Grant to Municipalities for COVID 19 Expenses, an increase in IRA 12.55%, and the increased in RPT and SEF collection due to the general revision of real properties which has both 69.03% increase.

Table 6: Comparative LGU Income by Source, 2019-2020

Chart 1:Increase in Consolidated Income,2014-2020

Total collections from the local sources amounting to ₱ 32,019,547.35 decreased by 0.27% in 2020. Although there has been a large number of business closures brought by the effects of COVID 19 lockdowns, local sources collections generated a minimal decrease in total because of the adoption of the Revised Tax Code with increased rates.

Collections from business taxes have the highest peso amount with a total of ₱ 13,291,556.14 collected in 2020 which is 3.03% higher from 2019 business tax collection of ₱ 12,901,134.22.  The lowest local source revenue is the collection from fees, permits, and licenses with an amount of ₱1,671,822.15 decreased by 26.8% from the 2019 collection of ₱ 2,284,033.54.

Chart 2: 2019-2020 Collections on Local Sources

Chart 3: Local Income Distribution,2020

As per the 2020 local income distribution, the highest is Business Tax which is 42%, followed by Special Education Tax of 15%, Real Property Tax of 12%, Business Income of 12%, Service Income of 8%, other Local Taxes of 6% and lastly the lowest is Fees, Permit and License Income which is 5% only.

For the collection efficiency of local taxes, the LGU achieved 89.57% actual collection of budgeted income with a total of ₱ 32,019,547.35. The 2020 performance is 2.32% higher from the collection performance in 2019 of 87.24% with an amount of ₱ 32,107,194.42. Real property taxes and special education taxes surpassed its target at 120.41% which improved from its 2019 performance of 71.24%. This is followed by business taxes with 98.46% 2020 performance collection which is higher than in 2019 of only 95.56%. Other local taxes increased to 79.99% which is 10.18% higher than in 2019 of 69.81%. Service income increased as well to 76.87% which is 12.22% higher than in 2019 of 64.65%. The poor performers are fees, permit and license income which decreased its collection efficiency to 55.73% which is 15.58% lower from 2019 performance of 71.31%. Business income also decreased to 61.63% which is 66.25% lower than in 2019 of 127.88%.

Table 7: Collection Performance of Local Income Sources,2020

1. SPECIAL EDUCATION FUND (SEF)

          The SEF provides the source of funds for the supplementary annual budgetary needs for the operation and maintenance of public schools within the province, city, or municipality through an annual SEF Budget. The formulation, approval, and utilization of the SEF Budget are the responsibility of the individual LSB in each province, city, or municipality

Expenditures for the SEF are allocated for the operation and maintenance of public schools, construction, and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development.

The Municipality of Arayat has collected a special education tax total of ₱ 4,816,443.97 for the year 2020 which is 69.03% higher than the 2019 collection of ₱ 2,849,497.81, this is due to the adoption of a general revision of real properties. From 2013-2020 average increase in collection 25%.

Graph 1: Special Education Fund Utilization, 2013-2020

Table 8 : Comparative SEF Budget and Accomplishment, 2019-2020

For 2019 and 2020, the Local School Board has approved a budget of ₱3,000,000 for each year. The utilization rate for 2020 has increased to 99.71% amounting to ₱ 2,991,340.14 which is higher than in 2019 of only 85.82% utilization rate with an amount of ₱ 2,574,687.09. In 2020, a large portion of the expenditures which is 66% were allotted for the learning modules used in the distance learning, 20% for the staff development, 7% for the district office supplies, ALS programs, utilities and other expenses for 2% share each, and last is 1% for the maintenance of the district vehicles

Chart 4: Special Education Fund Distribution of Expenses,2020

1. TRUST FUND

          For the year 2020, the Municipality has received various funds from different agencies which are specifically utilized for the projects intended for.

Table 9: List of Grants Received by LGU from different agencies

• MUNICIPAL ASSESSOR’S OFFICE

The MUNICIPAL ASSESSOR’S OFFICE conducted verifications and actual ocul1ar site inspections on the application for the issuance of new tax declarations. Also rendered technical assistance to lot owners regarding their lots and tax declarations previously projected on the base maps and sketch plans submitted to the office.

Validation of appraisal and assessment of Real Property Units (RPU) was performed and assisted the Municipal Treasurer’s Office in their Tax Information and collection campaign.

APPRAISAL AND ASSESSMENT OPERATION

1. Appraised real property units in accordance with the approved schedule of market values
2. Assessed the real property units in accordance with the approved assessment level
3. Transferred ownership records for Real Property Units

The MAsO issued certified true copies of Tax Declarations for general purposes.

Below is the Summary of the RPU’s Accomplished for 2020:

Table 10: Summary of Assessed Properties,2020

1.5 RESOURCE ALLOCATION

The balance Budget for FY 2020 is composed of the Expenditure Program and Sources of Financing, both amounting to P341, 242,236.00

Chart 5: LGU’s Resource Allocation,2020

The municipality was able to attain the following:

• Increase per capita income by a stated realistic percentage
• Provide accessibility to all basic needs and services
• Realistic percentage of citizens/constituents of the municipality
• Provide expanded employment opportunities to the urban poor residents and
• Increase agricultural productivity and enhance delivery of health care services

1. FISCAL POLICIES

Revenue generating measures include enhanced tax collection via vigorous tax collection effort.

1. DISTRIBUTION BY MAJOR EXPENSE CLASS

• Personal Services

The total expenditures for Personal Services for the budget year is P106,498,214.79 inclusive of the provision for Salary Standardization.

• Maintenance and Other Operating Expense

The amount of P116,761,409.28 has been set aside for Maintenance and Other Operating Expense.

• Capital Outlays

Expenditures for Capital Outlays amounts to P5,450,000.00

• Special Purpose Appropriations

The total proposed Special Purpose Appropriations amounts to P34,074,552.93

1. OTHER PURPOSES

The amount of P61,678,447.20 represents the 20% Development Fund, P16,779,611.80 was set aside as reserved for Calamity and P300,000.00 for Aid to Barangays