Sample Budget Call Memo 4x173h

Budget Call for FY 2007

BUDGET MEMORANDUM NO. CL -2006 -01 June 28, 2006

To

:

The City Vice-Mayor, Sangguniang Panlungsod , Department Heads, Assistant Department Heads, Technical-Vocational School s City Auditor, City Prosecutor, Judges and Principals/ Head Teachers/Teachers-In-Charge of the Zamboanga City National High Schools All Others Concerned

SUBJECT:

1.0

POLICY GUIDELINES & PROCEDURES IN THE PREPARATION OF THE FY 2007 BUDGET PROPOSALS

PURPOSE 1.1 To provide the overall fiscal policy framework and priority thrust for FY 2007 within the context of the Local Development Investment plan ,2006-2008; 1.2 To prescribe the guidelines and procedures in the preparation of the FY 2007 office budget; and 1.3 To set the schedule of budget preparation activities.

2.0

BUDGET FRAMEWORK 2.1 The FY 2006 Budget shall be anchored on the plans and targets in the city's Local Development Investment Plan (LDIP) 2006 - 2008. It shall the seventeen (17) programs of the inistration in relation to the seventeen (17) point agenda aimed to build and strenghthen the foundation towards achieving sustainable properity for the City of Zamboanga. 2.2 Enhance tax collection efficiency through relentless tax information campaigns ed by an intensified tax tax collection effort. 2.3 Reforms in public expenditure management shall be vigorously pursued. 2.4 As a means to rationalize the FY 2007 budget thereby improving expenditure allocation and promoting efficiency and effectiveness in the operation of the city government, the following measures shall be implemented, to wit :

a. Enforce energy conservation as one of the economic measures consistent with the national government's Energy Management Program. b. Encourage cost recovery measures for goods and services delivered to the revenue enhancement effort of the government. c. Promote participative governance from the stakeholders of civil society groups, NGOs. private sectors, and disadvantaged groups through consultation to arrive at the decision on the rational allocation of scarce resources. 2.5 Resources shall be directed towards increased agricultural productivity and provision of basic health, social, education services, particularly to the marginalized secotr of society geared towards promoting economic growth with equity, to include the following priority ares, to wit: a. Expansion of commercial areas through the implementation of the Integrated Bus Terminal in the East Coast envisioned to generate more employment, business and tourism. b. Consultation of more school buildings to keep pace with the demand. c. Opening of City Road Networks. d. Undertake the Construction of Multi - level Parking to alleviate the parking space problem. e. Development of Public cemeteries. f. Establishment of a sanitary landfill. g. Development of parks and gardens, particularly at Pasonanca and DCDP area. h. Development of City Resettlement areas. i. Development of Public Markets j. Development of the City Abbatoir

k. Farm-to-Market Roads

3.0 Economic Fiscal Target The fiscal targets for FY 2007 of the General Fund is P 1,210,310,926.00; Main Market P18,000,000.00; Sta. Cruz

Commercial Complex P 11,000,000.00; and Slaughterhouse P5,500,000.00, Z.C. Sports and Recreational Coliseum P500,000.00 totaled P1,245,310,926.00.

4.0 General and Procedural Guidelines 4.1 Performance - Based Budgeting Performance - Based Budgeting shall be equated with expected results - - meaning the Major Final Outputs ( MFOs) shall be the primary elements or units for determining resource allocation. Such MFO allocations shall be the basis of a regular monitoring and evaluation of the financial and physical performance of the office / unit. 4.2 Maximum Utilization of Resources The priority concerns for FY 2007 shall focus on agricultural productivity, infrastructure build-up and improvement of the quality of basic education, particularly programs and projects under the AIP, that would provide for employment generation and poverty reduction. Funds for compensation adjustments of city officials and employees shall also be set aside.

5.0 Budget Ceilings 5.1 The budget ceilings for the FY 2007 of respective offices will be issued by the Local Finance Committee as guide in the preparation of the budget proposals for Maintenance and Other Operating Expenses and Capital Outlay which must be ed by the Worksheet ( Annex A ) and Justification Working Paper ( Annex B ). The Budget proposals shall be based on idenitfied programs , projects and activities with expected results. 5.2 Proposals for Equipment and Infrastructure Outlays shall include only those within the approved Local Development Investment Plan ( LDIP ) and Annual Investment Program ( AIP ) for Fiscal Year 2007. 5.3 Budget proposals submitted over and above the ceiling shall be reduced to their office ceilings by the Local Finance Committee. 5.4 The rationale for the allocation of limited resources shall be made as follows: 5.1 By Sector 5.2 By Object of Expenditures 5.2.1 Personal Services (PS) 5.2.2 Maintenance and Other Operating Expenses (MOOE) 5.2.3 Capital Outlay (CO) 5.3 By Department / Office 5.5 Appropriations shall be made exclusively for the specific purpose for which they have been appropriated.

5.6 Offices shall exercise prudence in their spemnding and practice cost recovery measures and entrepreneurship in the delivery of public s services. Strict compliance with the provisions of RA 9184 " Government Procurement Reform Act" and ing and auditing rules and regulations in the disbursement of budget funds shall be observed to the highest degree. 5.7 The budgetary proposals shall be made in accordance with NGAS Revised Chart of s, pursuant to COA Circular No. 2001-005, dated October 30, 2001 and COA Circular No. 2003-015 dated June 17, 2003, and COA Circular No. 2004-008 dated September 20, 2004. The individual office budget proposals for FY 2007 shall be submitted directly to the City Budget Office on or before July 14, 2006.

6.0 Submission Requirements and Timetable The individual office budget proposals shall be submitted in the Local Budget Preparation Form No. 3 ( Program Appropriation & Obligation by Object ) and Local Budget Preparation Form No. 5 ( Functional Statement , Objectives and Expected Results).

Budget Preparation Timetable

Office/Unit Responsible

City Planning and Dev't Coordinator, City Dev't Council, Sangguniang Panlungsod and City Mayor

Local Finance Committee

Activity

Duration/Dateline

March 1-15, 2006 Finalizes AIP for endorsement to LDC, SP and LCE for final approval.

Determination and submission to the City Mayor of the estimated income June 16 -21, 2006 and budgetary ceilings for the ensuing year.

City Mayor

Issuance of Budget Policy Statement June 21-28, 2006 or Budget Call.

City Mayor/Local Finance Committee

Conduct of Budget Workshop/ Forum July 3 & 4 , 2006

Heads of Offices/Departments Preparation and Submission of Budget Proposals to the City Mayor through July 3 -15, 2006 the City Budget Officer. City Budget Officer

Review, evaluation and consolidation July 16 - August 11, 2006 of budget proposals.

City Mayor, City Finance Committee, Department Heads

Conduct of Technical Budget Hearings August 14-18, 2006 (TBH)

City Budget Officer

City Mayor

Examination/Consolidation of budget proposals into a Local Expenditure Aug. 21 - Sept. 8, 2006 Program ( LEP ) and a budget document to LEP in the Budget of Expenditure and Sources of Financing ( BSEF ). Conduct of Executive Final Review and Prepares Budget Message

September 11-15, 2006

Printing Press

Printing and Binding of FY 2007 Executive Budget.

City Budget Officer

Submission of the FY 2007 Executive October 2, 2006 Budget to the City Mayor

City Mayor

Submission of the Executive Budget toOctober 6, 2006 the Sangguniang Panlungsod

( Sgd. ) CELSO L. LOBREGAT City Mayor

Sept. 18-29, 2006