The annual celebration of Catandungan Festival entails an influx of returning Catandunganons. Those who had not visited Catanduanes for the past (10) years were always surprised of how our beloved island has improved since their last visit, particularly our capital town, Virac. From the number of restaurants, bars, hotels and other business establishments, the progress and development of Virac are truly undeniable. With this, one may I ask: Is Virac ready to become a city? Does it have what it takes to be one?
In this week’s edition, we will discuss the factors that need to be considered before a municipality may be converted into a city.
At the outset, under Republic Act No. 7160 otherwise known as “The Local Government Code of 1991”, cities are classified into three: (1) Highly Urbanized Cities (HUC), Independent Component Cities (ICC) and Component Cities (CC). Highly Urbanized Cities are those with a minimum population of two hundred thousand (200,000) inhabitants, Independent Cities are those whose charter (the law creating them) expressly prohibits its inhabitants to vote for provincial posts, and Component Cities are those whose charter does not have said prohibition.
For a municipality, like Virac, to be converted into a city, it should be done thru legislation. Simply, a law should be passed explicitly converting the status of Virac from a municipality into a city. Such law shall be deemed as the charter of the newly created city. Before such law shall take effect, the same shall first be ratified by a majority of the votes cast in a plebiscite by the qualified voters of the affected local government units. This is a direct mandate of Article X, Section 10 of the 1987 Philippine Constitution, to wit:
Section 10, Article X. – No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered, except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected.
Having discussed the procedural aspect of conversion, we shall now delve into the substantial requirements before a municipality may be upgraded into a city. Section 7 of the Local Government Code requires that the creation of a local government unit or its conversion from one level to another shall be based on verifiable indicators of viability and projected capacity to provide services, to wit: (a) income; (b) population; and (c) land area. The income of the said LGU must be sufficient, based on acceptable standards, to provide for all essential government facilities and services and special functions commensurate with the size of its population, as expected of the local government unit concerned.
Compliance with the foregoing indicators shall be attested by the Department of Finance, Philippine Statistics Office and the Lands Management Burea (LMB) of the Department of Environment and Natural Resources (DENR).
The requirements for a municipality or a cluster of barangays to be converted into a component city are enumerated under Section 450 of the Local Government Code, to wit:
“SEC. 450. Requisites for Creation. – (a) A municipality or a cluster of barangays may be converted into a component city if it has a locally generated average annual income, as certified by the Department of Finance, of at least One hundred million pesos (P100,000,000.00) for the last two (2) consecutive years based on 2000 constant prices, and if it has either of the following requisites: “(i) a contiguous territory of at least territory of at least one hundred (100) square kilometers, as certified by the Land Management Bureau; or “(ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the Philippine Statistics Authority (PSA).
As mandated by Section 450 of the LGC, Virac should first (1) generate an average annual income of at least One hundred million pesos (P100,000,000.00) for two (2) consecutive year; (2) had a contiguous territory of at least territory of at least one hundred (100) square kilometers, or a population of not less than one hundred fifty thousand (150,000) inhabitants.
However, on April 10, 2022, Republic Act No. 11693, An Act Amending Section 450 of the Local Government Code, lapsed into a law. As stated therein, it added another way by which a municipality may be converted into a city, to wit:
A municipality or a cluster of barangays with a locally generated average annual income, as certified by the Department of Finance, of at least Four hundred million pesos (P400,000,000.00) for the last two (2) consecutive years based on 2012 constant prices may also be converted into a component city if it has either a population of not less than one hundred thousand (100,000) inhabitants certified by the PSA or a contiguous territory of at least one hundred (100) square kilometers, as certified by the Land Management Bureau;
With this amendment, the Municipality of Virac may aim either to – (1) generate an average annual income of at least One hundred million pesos (P100,000,000.00) for two (2) consecutive years and have a population of not less than one hundred fifty thousand (150,000) inhabitants; or (2) generate an average annual income of at least Four hundred million pesos (P400,000,000.00) for two (2) consecutive years and a population of not less than one hundred thousand (100,000) inhabitants – before it may be considered for conversion into a city.