Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
Second Regular Session

House BiiNo._ 4990

Introduced by Rep. Rufus B. Rodriquez, Rep. Roy M. Loyola and Rep. Erineo S. Maliksi

EXPLANATORY NOTE

The primordial reason for converting a municipality or cluster of barangays into a city
is to ensure its economic viability (Latasa vs. Commission on Elections, G.R. No. 154829,
December 10, 2003). As a general rule, the creation of a iocal gevemment unit or its
conversion from one level info another shail be based on verifiable indicators or viability and
Projected capacity to provide services, specifically income, population and land area
(Section 7, R.A. No. 7160, Local Govemment Code of 1991).

Among the three, there is no doubt that the income requirement is the most
controlling. In recognition of such fact, the Code sets forth the following criterion: Income —
it must be sufficient, based on acceptable standards, to provide for all essential goverment
facdites and services and special functions commensurate with the size of its population,
‘as expected of the local government unit concemed (Section 7(a), Supra).

With regards to the population requirement, the Code merely provides: Population —
It shall be determined as the total number of inhabitants within the territorial jurisdiction of
the local government unit concemed (Section 7(b), Supra).

And lastly, with regards to the land area, the Code merely requires that the same be
contiguous; properiy identified by metes and bounds; and more importantly, must be
Sufficiet to provide for such basic services and facilities to meet the requirements of its
populace (Section 7(c), Supra).


‘As our law stands today, before a municipality or cluster of barangays could be
converted into a component city, it must have an annual income of at least one hundred
million pesos (P'100,0000,000.00) and a territory of at least one hundred (100) square
kiometers or a poputation of not less than one hundred fifty thousand (150,000) (Sec. 450,
RA. No. 7160, Local Government Code, 3s amended by R.A. 9006).

However, there are some municipalities which, despite of its small land area or
population, have nevertheless demonsirated its unquestionable capacity to provide
‘essential goverment facilities, social services to its inhabitants, comparable or even
‘superior to existing cities.

As we alll know, living in a city has its corresponding economic advantage. Thus, it
would be utterly unfair to the inhabitants of such municipalities to forever foreciose their
ight to the benefits of cityhood, simply because their municipalities’ land area or population
is fess than one hundred (100) square kilometers or one hundred fifty thousand (150,000),
respectively.

‘While there is no hard and fast rule to determine the optimum populace or land area
for a city, however, applying the principles of political law for creation of a sovereign state,
the population must be numerous enough and able to procreate in order to ensure
perpetuation of the political entity. With regards th its land area, the same must be large
enough to be able to sufficiently provide for its people.

Noteworthy are the small states, specifically: Monaco, a tiny state along the French
Riviera which has an area of just 0.7 square miles (1.81 sq. km.) and a population of just
32,000. The island state of Naura, became independent in 1968, and has an area of just
8.5 square miles (22 sq. km.) and a population of just 13,000. Tulavu, formerly known as
the Ellice Istands, gained its independence in 1978, and has an area of just 9 square miles
(23.3 sq. km.) and a population of 12,000. San Marino, iocated on Mt Titano in north
central Italy, which has an area of just 24 square miles (62.13 sq. km.) and a population of
Just 29,000.

If the above political entities have attained its status as an independent state despite
its small population and land area, with more reason, municipalities which have time and
again demonstrated their capacity to thrive despite their small population and land area
‘should be allowed to upgrade its status to that of a city.


dust like in any other law, there is a general rule and there is an exception. For
purposes of this bill, the general rule remains, that for creation of or conversion into a city, a
municipality must have an income of at feast P100,000,000.00 and a land area of at least
100 square kilometers or population of at least 150,000. The exception is that, if the
municipality generates a local income of at least double than that of the general rule, that is,
two hundred milion pesos (P200,000,000.00), then it is qualified to be converted into a city
without regard to the size of its and area or population.

In view thereof, support and approval of this measure is eamestly sought.

REP RUFUS 8. RODRIGUEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
Second Regular Session

House Bill No. 4990

Introduced by Rep. Rufus B. Rodriguez, Rep. Roy M. Loyola and Rep. Erineo S. Maliksi

AN ACT AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160,
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991,
AS AMENDED, ALLOWING THE CONVERSION OF A MUNICIPALITY
INTC A COMPONENT CITY IF HAS AN ANNUAL AVERAGE INCOME
OF AT LEAST TWO HUNDRED MILLION PESOS(P200,000,000)
WITHOUT REGARD TO ITS LAND AREA AND POPULATION.

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Sec. 450 of Republic Act No. 7160, otherwise known as the Local
Goverment Code of 1991, as amended by Republic Act No 9009, is hereby further amended
to read as follows:

“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:

@ a contiguous territory of at least one hundred (100) square kilometers, as
certified by the Land Management Bureau; or

(i) a population of not fess than one hundred fifty thousand (150,000)
inhabitants, as certified by the National Statistics Office.


‘The creation thereof shall not reduce the iand area, population and income of the
original unit or units at the time of said creation to less than the minimum requirements.
Prescribed herein,

PROVIDED, THE FOREGOING NOTWITHSTANDING, A MUNICIPALITY MAY BE
CONVERTED INTO A COMPONENT CITY IF IT HAS A LOCALLY GENERATED
INCOME, AS CERTIFIED BY THE DEPARTMENT OF FINANCE, OF AT LEAST TWO
HUNDRED MILLION PESOS {P200,000,000.00) FOR THE LAST TwO (2}
CONSECUTIVE YEARS BASED ON 2000 CONSTANT PRICES, WITHOUT REGARD
ITS LAND AREA AND POPULATION.

(b) The territorial jurisdiction of a newly-created city shall be Properly identified by
metes and bounds. The requirement on land area shall not apply where the city

BLOBSSEL IRS, RIEBIRD, SAMO EH WORE SLs’ Felande The taritnns wnnet nine

(c) The average annual income shall include the income accruing to the general fund,
exclusive of special funds, transfers, and non-recurring income.

SECTION 2. If any provision of this Act shall be declared invalid or unconstitutional, the
remaining part or provisions not otherwise affected shall remain in force.

SECTION 3. Any law, decree, ordinance, administrative circulars not consistent with
any provision of this Act is hereby amended, repealed or modified accordingly.

SECTION 4. This Act shall take effect fifteen (15) days after its complete publication in
the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,