Local Fiscal Administration

MPA 203 Local Government & Adminiastration

1. Prepared by : Daphne Meir E. Abat Maureen G. Ferrer Edilberto D. Ronquillo, Jr . MPA 203 Local Governance & Administration LOCAL FISCAL ADMINISTRATION

2. Topic Outline Nature & Scope Legal Basis for Local Fiscal Administration Financial Performance a. Class A Municipality b. Class B Municipality c. Class C Municipality

3. Fiscal Administration - is the act of managing incoming and outgoing monetary transactions and budgets for governments, educational institutions,  non-profit organizations , and other public service entities. Source: Handbook of Local Fiscal Administration in the Philippines, Alicia B. Celestino, Norberto G. Malvar, Romulo R. Zipagan, Sr., December 1998

4. I. Nature & Scope LOCAL FISCAL ADMINISTRATION Refers to systems, structures, processes, officials, and personnel and the policy environment governing intergovernmental, and inter-local fiscal relations , affecting among others : the giving & receipt of allotments and grants from the National Government ( NG) to local government units (LGUs); allotment sharing between LGUs ; sharing of taxing powers between the national government (NG) and LGUs, and among LGUs ; policy on tax rates and st ructures; Source: Handbook of Local Fiscal Administration in the Philippines, Alicia B. Celestino, Norberto G. Malvar, Romulo R. Zipagan, Sr., December 1998

5.  revenue and expenditure planning; revenue utilization & expenditure allocation; monitoring & approval budgets, tax ordinances & other fiscal measures;  policy on borrowing and borrowing instruments; and  Appointment & supervision of local fiscal officers. (Cuaresma & Ilago) Source: Handbook of Local Fiscal Administration in the Philippines, Alicia B. Celestino, Norberto G. Malvar, Romulo R. Zipagan, Sr., December 1998

6.  This broad definition comprehends 5 major elements as the scope of LFA. These are:  Systems  Structures;  Processes;  Official/personnel; and Policy environment governing inter-governmental and inter-local fiscal relations. In public administration, Local Fiscal Administration is commonly referred to as the formulation, implementation, and evaluation of local fiscal policies by local governments. Source: Handbook of Local Fiscal Administration in the Philippines, Alicia B. Celestino, Norberto G. Malvar, Romulo R. Zipagan, Sr., December 1998

7. Local Government Finances Fiscal relations between national and local government centre on the following major areas of fiscal administration ;  Allotment of internal revenue shares;  Shares of local governments in national wealth exploitation;  Shares of earnings of gov’t agencies or gov’t-owned or controlled corporations engaged in the utilization & development of national wealth  Local government borrowing; and  Review of local gov’t budgets. Source: Local Fiscal Administration, Jocelyn C. Cuaresma and Simeon A. Ilago

8. Aspects of Local Fiscal Administration The fiscal relations between the national government and its agencies, on the one hand, and the LGUs on the other, which we may call vertical financial relations . This is also referred to in the literature as central-local fiscal relations , with the Internal Revenue Allotments at its core; and The fiscal relations among LGUs themselves, which may be referred to as the inter-local fiscal relations. Source: Local Fiscal Administration, Jocelyn C. Cuaresma and Simeon A. Ilago

9. Scope The definitions of local fiscal administration enumerated the areas covered. However, it is helpful to specify once more the scope of the field according to their functional categories, w/c fall into the main traditional divisions of : A. Revenue Generations: All aspects of local taxation; Borrowing and its management; Operation of public enterprises; Revenue enhancement measures; Revenue planning, forecasting and accounting ; Source: Local Fiscal Administration, Jocelyn C. Cuaresma and Simeon A. Ilago

10. Scope B. Revenue Allocation and Utilization Budgeting system & process, including the linkage of planning and budgeting, expenditure planning, expenditure allocation and expenditure monitoring; Accounting and auditing of expenditures; C. Other Aspects Property and supply management; Internal control which cuts across all fiscal functions; and Other related matters, like the central grant and allotment system, organization for local fiscal administration, and computerization of fiscal operations/systems. Source: Local Fiscal Administration, Jocelyn C. Cuaresma and Simeon A. Ilago

11. II. Legal Basis for Local Fiscal Administration 1987 Philippine Constitution Section 2, Article X “The territorial & political subdivisions shall enjoy local Autonomy” Source: The 1987 Constitution, Rex Bookstore 2001 Edition, Philippines

12. Number of Provinces, Cities, and Municipalities by Island Group ( As of September 30, 2018) Source: https://dilg.gov.ph/PDF_File/factsfigures

13. 2017 INTERNAL REVENUE ALLOTMENT Source: DBM-Local Budget Memorandum No. 74-A

14. 2018 INTERNAL REVENUE ALLOTMENT Source: DBM-Local Budget Memorandum No. 75-A

15. Section 289. Share in the Proceeds from the Development and Utilization of the National Wealth . The Local Government Code provides that local government shall have an equitable share in the proceeds derived from the utilization and development of national wealth within their respective areas and sharing these with the inhabitants by way of direct benefits. Section 290. Amount of Share of Local Government Units.   Local government units shall, in addition to the internal revenue allotment, have a share of forty percent (40%) of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including related surcharges, interests, or fines, and from its share in any co-production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction. Source: www.officialgazette.gov.ph LOCAL GOVERNMENT CODE OF 1991

16. Section 291 . Share of the Local Governments from any Government Agency or Government-Owned or -Controlled Corporation. Local government units shall have a share based on the preceding fiscal year from the proceeds derived by any government agency or government-owned or -controlled corporation engaged in the utilization and development of the national wealth based on the following formula whichever will produce a higher share for the local government unit: ( a) One percent (1%) of the gross sales or receipts of the preceding calendar year ; or ( b) Forty percent (40%) of the mining taxes, royalties, forestry and fishery charges and such other taxes, fees or charges, including related surcharges, interests , or fines the government agency or government-owned or - controlled corporation would have paid if it were not otherwise exempt. Source: www.officialgazette.gov.ph LOCAL GOVERNMENT CODE OF 1991

17. Powers in Pursuance of Local Fiscal Administration 1. General Welfare Clause (Sec. 16, RA 7160 ) – Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants. Source: www.officialgazette.gov.ph

18. Powers in Pursuance of Local Fiscal Administration Source: www.officialgazette.gov.ph 2. Power to Generate and Apply Resources (Sec. 18, RA 7160) – Local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, program objectives and priorities; to create their own sources of revenues and to levy taxes, fees, and charges which shall accrue exclusively for their use and disposition and which shall be retained by them; to have a just share in national taxes which shall be automatically and directly released to them without need of any further action; to have an equitable share in the proceeds from the utilization and development of the national wealth and resources within their respective territorial jurisdictions including sharing the same with the inhabitants by way of direct benefits; …

19. 2. Power to Generate and Apply Resources (Sec. 18, RA 7160) … to acquire, develop, lease, encumber, alienate, or otherwise dispose of real or personal property held by them in their proprietary capacity and to apply their resources and assets for productive, developmental, or welfare purposes, in the exercise or furtherance of their governmental or proprietary powers and functions and thereby ensure their development into self-reliant communities and active participants in the attainment of national goals. Continuation…

20. Powers in Pursuance of Local Fiscal Administration Source: www.officialgazette.gov.ph 3. Reclassification of Lands (Sec. 16, RA 7160 ) – (a) A city or municipality may, through an ordinance passed by the sanggunian after conducting public hearings for the purpose, authorize the reclassification of agricultural lands and provide for the manner of their utilization or disposition in the following cases: (1 ) when the land ceases to be economically feasible and sound for agricultural purposes as determined by the Department of Agriculture or ( 2 ) where the land shall have substantially greater economic value for residential , commercial, or industrial purposes, as determined by the sanggunian concerned :

21. Powers in Pursuance of Local Fiscal Administration Source: www.officialgazette.gov.ph Provided, That such reclassification shall be limited to the following percentage of the total agricultural land area at the time of the passage of the ordinance: ( 1 ) For highly urbanized and independent component cities, fifteen percent (15%); (2) For component cities and first to the third class municipalities, ten percent (10 %);and (3) For fourth to sixth class municipalities, five percent (5%): Provided, further , t hat agricultural lands distributed to agrarian reform beneficiaries pursuant to R.A . No. 6657 otherwise known as “ The Comprehensive Agrarian Reform Law”, shall not be affected by the said reclassification and the conversion of such lands into other purposes shall be governed by Section 65 of said Act.

22. Powers in Pursuance of Local Fiscal Administration Source: www.officialgazette.gov.ph 4. Closure and opening of roads (Sec. 21, RA 7160 ) – A local government unit may, pursuant to an ordinance, permanently or temporarily close or open any local road, alley, park, or square falling within its jurisdiction: Provided, however, that in case of permanent closure, such ordinance must be approved by at least two-thirds (2/3) of all the members of the sanggunian, and when necessary, an adequate substitute for the public facility that is subject to closure is provided.

23. Powers in Pursuance of Local Fiscal Administration Source: www.officialgazette.gov.ph 5. Corporate Powers (Sec. 22, RA 7160 ) – (a) Every local government unit, as a corporation, shall have the following powers: (1) To have continuous succession in its corporate name; (2) To sue and be sued; (3) To have and use a corporate seal; (4) To acquire and convey real or personal property;

24. Powers in Pursuance of Local Fiscal Administration Source: www.officialgazette.gov.ph 6. Authority to negotiate and secure grants (Sec. 23, RA 7160 ) – Local chief executives may, upon authority of the sanggunian, negotiate and secure financial grants or donations in kind, in support of the basic services or facilities enumerated under Section 17 hereof, from local and foreign assistance agencies without necessity of securing clearance or approval therefor from any department, agency, or office of the National Government or from any higher local government unit: Provided, That projects financed by such grants or assistance with national security implications shall be approved by the national agency concerned: Provided, further, That when such national agency fails to act on the request for approval within thirty (30) days from receipt thereof, the same shall be deemed approved.

25. Powers in Pursuance of Local Fiscal Administration Source: www.officialgazette.gov.ph 7. Liability for damages (Sec. 24, RA 7160 ) – Local government units and their officials are not exempt from liability for death or injury to persons or damage to property.

26. Other Laws and Government Issuances Local fiscal administration is also governed by laws and issuances from the national agencies that exercise supervisory power over local government units. Such agencies are the following: a. Department of Finance (DOF) - The DOF maintains the Bureau of Local Government Finance (BLGF) which is the unit primarily involved in local financial administration. - Provides technical assistance and training for local governments on local finance. - It administers credit facilities such as the Municipal Development Fund, and prepares guidelines and standards on matters related to taxation, credit financing, and imposition of various fees and charges. - It also exercises technical supervision on local assessment and treasury operations, and performs monitoring and evaluation of financial performance.

27. Other Laws and Government Issuances b. Department of Budget and Management (DBM) The DBM is primarily responsible for disseminating information on Internal Revenue Allotment (IRA) allocation and the local government’s share from the utilization and development of national wealth. The Department releases the share of internal revenue allotment directly to the provinces, cities, municipalities and barangays.

28. Other Laws and Government Issuances c. Commission on Audit (COA) The COA is primarily responsible for the accountability phase of the local budget process. The Commission maintains the Local Government Audit Office (LGAO), through which it implements auditing rules and regulations in local government units. The Commission also settles accounts and fixes the liability of accountable officers, as well as determines whether fiscal responsibility has been properly and effectively discharged by the local chief executives.

29. Other Laws and Government Issuances d. Department of Interior and Local Government (DILG) The DILG, upon which the supervisory power of the President is reposed, at times issues guidelines which are fiscal-related

30. e. Office of the President (OP) The President of the Philippines has general supervisory power over the local government units, as provided by Section 4 of the 1987 Constitution. As such, the OP still issues from time to time executive and administrative orders that affect local government units.

31. CLASSIFICATION OF PROVINCES/CITIES CLASS AVERAGE ANNUAL INCOME First Thirty million pesos or more Second Twenty million pesos or more but less than thirty million pesos Third Fifteen Million Pesos or more but less than twenty million pesos Fourth Ten million pesos or more but less than fifteen million pesos Fifth Five million pesos or more but less than ten million pesos Sixth Less than five million pesos EXECUTIVE ORDER NO. 249 S. 1987 * * Except Manila and Quezon City Source: www.officialgazette.gov.ph

32. EXECUTIVE ORDER NO. 249 S. 1987 CLASSIFICATION OF MUNICIPALITIES CLASS AVERAGE ANNUAL INCOME First Fifteen million pesos or more Second Ten million pesos or more but less than fifteen million pesos Third Five Million Pesos or more but less than ten million pesos Fourth Three million pesos or more but less than five million pesos Fifth One million pesos or more but less than ten million pesos Sixth Less than one million pesos Source: www.officialgazette.gov.ph

33. References: Handbook of Local Fiscal Administration in the Philippines, Alicia B. Celestino, Norberto G. Malvar, Romulo R. Zipagan, Sr., December 1998 The 1987 Constitution, Rex Bookstore 2001 Edition, Philippines The Local Government Code of 1991, Rex Bookstore 2001 Edition, Philippines Wikipedia Local Fiscal Administration, Jocelyn C. Cuaresma and Simeon A. Ilago

34. CLASS a MUNICIPALITIES

35. Source: psa.gov.ph

36. MUNICIPALITY OF BACNOTAN, LA UNION  Municipality of Bacnotan, is a 1st class municipality in the province of La Union . Its economic activities in Bacnotan mostly involve farming, fishing, bee-keeping, pebble extraction, tourism and Portland cement manufacture. Bacnotan is the seat of the beekeeping industry in La Union. “Home of Honey, Silk and Mushroom”

37. QUICK FACTS Land Area:  6,507 hectares Population:  38,430 Number of Barangays:  47 Classification:  First Class Municipality In Barangay Carcarmay stands the towering La Union Centennial Tree which was planted way back in 1896 as certified by the Department of Environment and Natural Resources.

38. Honey is the One Town One Product (Otop) of La Union. The province’s apiculture program has been cited by the government as the Luzon Island Best Otop Implementor. The Sericulture Research Development Institute (SERDI) at Don Mariano Marcos Memorial State University, North La Union Campus which apparently started as a research project of the Agriculture Department in the '80s. Its mission is to develop sericulture (silk farming) as a rural agro-based industry in the country. It is the only national silk research center in the country. http://www.thelettersinnovember.com/2013/10/bacnotan-my-hometown-sericulture.html Products

39. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 245,747,000.00 P 166,416,000.00 (P 79,331,000.00) Expenses 114,789,000.00 123,172,000.00 8,383,000.00 Income P 130 ,958,000.00 P 43,245,000.00 (P87,713,000.00)

40. revenue Business Tax License Tax Income Tax Source: www.coa.gov.ph Other Tax Tax Revenue

41. revenue Permits & Licenses Certificate Fees Source: www.coa.gov.ph Processing Fees Service Income

42. Balaoan is one of the oldest municipalities in the Province of La Union, having been founded in 1704. The vast land area consists of agricultural lands interspersed with residential, commercial and institutional areas. The town is agro-fishery based, the reason for its being perennially more than sufficient in rice, cereals, legumes and other crops. It has rich variety of marine fishes along its coralline fishing ground in the west. Being at the center of La Union first congressional district, it is potentially bright to business industry, commerce and tourism and others. With its strategic central location, it serves as an ideal trading post for produce from other surrounding inland and mountain communities. MUNICIPALITY OF BALAOAN, LA UNION “Sea Urchin Capital of the North” https://launion.gov.ph/the-province/general-information/city-and-municipalities/balaoan-la-union /

43. QUICK FACTS Land Area:  6,450 hectares Population:  37,592 Number of Barangays:  36 Classification:  First Class Municipality Tourists may visit the Eco tourism in Balaoan called “Immunity island”

44. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 289,519,000.00 P 124,306,000.00 (P 165,213,000.00) Expenses 95,318,000.00 146,845,000.00 51,527,000.00 Income P 194 ,201,000.00 P (22,539,000.00) - (P 171,662,000.00)

45. revenue Tax Revenue Real Property Tax Tax on Business Real Property Tax - Basic Special Levy on Idle Lands Tax on Delivery Trucks and Vans Franchise tax Business Tax Amusement tax Other Tax Professional Tax Community Tax http://www.balaoanlaunion.gov.ph

46. revenue Non Tax Revenue Regulatory Fees Receipts from Economic Enterprise Service / User Charge http://www.balaoanlaunion.gov.ph

47. ___________________________ Municipality of Bauang , La Union “Food Basket of the North” Established as a settlement in 1590, Bauang was recognized as a town in 1765 as part of Pangasinan. When La Union was created in 1850, Bauang was one of the original 12 towns that formed the province . Bauang also earned the appellation as “Beach Capital of the Philippines” during the 70’s for its pristine beaches and is still a most sought-after swimming area as shown by the continuous influx of tourists and establishments of new resorts.

48. QUICK FACTS Land Area:   7,160 hectares Population:  75,032 Number of Barangays:  39 Classification:  First Class Municipalit y Source: https :// launion.gov.ph/bauang-la-union / Bauang celebrates its Parochial Fiesta on April 26 in honor of St. Peter and St. Paul and the Panagkakararua Festival every October 31 of the year. Bauang beach is accessible to any form of land transportation. Its calm waters, fine sand, and languidly swaying coconut trees along the shoreline from Baccuit Sur to Pagdalagan Sur make it perfect for jet skiing, scuba diving and swimming. Tourists can have a guapple and grapes picking adventure at Barangay Urayong. Famous for its large, thick and crispy with a tangy taste, other Guapple products include pies, jams, candies and grapes.

49. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 310,308,000.00 P 289,855,000.00 (P 20,453,000.00) Expenses 223,874,000.00 221,678,000.00 (2,196,000.00) Income P 86,434,000.00 P 68,177,000.00 (P18,257,000.00)

50. revenue Franchise Tax Property Tax Professional Tax Source: www.coa.gov.ph Tax on Business Local Taxes

51. revenue Permits & Licenses Certificate Fees Authentication Fees Source: www.coa.gov.ph Processing Fees Service Income

52. ___________________________ Municipality of Naguilian , La Union “Home of the Original Basi” Originally a part of Bauang in the province of Pangasinan, Naguilian derived its name from the Iloko phrase “Nag-ili-an dagiti gan-ganaet” meaning “a place where people from other places come to stay”. It is formed from the Iloko root word “ili” meaning “town” which was later modified as “NAGUILIAN”. Its separation from Bauang coincided with the centennial celebration of the Catholic Church of Naguilian in 1839. When La Union was created by a Royal Decree in 1850, Naguilian was one of the twelve (12) towns that comprised the province.

53. QUICK FACTS Land Area:   10,086.85 hectares Population:  54,221 Number of Barangays:  37 Classification:  First Class Municipalit y Source: https :// launion.gov.ph/naguilian-la-union / Naguilian is also known for being the home of the original Basi where the tradition of Basi making dates back to the World War II era. With the help of the local government, this industry has been revived and is now one of the main sources of income of the Province. Endowed with rich natural resources, Naguilian is largely an agricultural town. Its fertile land yields rice, tobacco, root crops, vegetables and sugarcane which produces two of the municipality’s famous products, vinegar and basi. The Catholic Church in Naguilian was constructed in 1739 after the Spaniards established their authority thereat. The centennial of the Catholic Church was held in 1839 which marked the separation of the town of Naguilian from the town of Bauang.

54. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 199,886,000.00 P 173,778,000.00 (P 26,108,000.00) Expenses 101,351,000.00 115,057,000.00 13,706,000.00 Income P 98,535,000.00 P 58,721,000.00 (P39,814,000.00)

55. revenue Tax Revenue Individual and Corporation: Professional Tax Property: Real Property Tax-Basic, Real Property Transfer Tax Fines & Penalties: Property Tax Source: www.coa.gov.ph

56. revenue Other Income Permit & Licenses Registration Plates, Tags & Sticker Fees Business Income Source: www.coa.gov.ph

57. ___________________________ Municipality of Agoo , La Union “The Center of Education, Trade & Commerce in Southern, La Union” Like most of the LGUs in the Province located along the National Highway, Agoo, being a picture of sustainable progress and development, has become a town that never sleeps. Agoo was named after the river along whose banks it was built which at that time was a forest of pine-like trees locally called “agoo” or “aroo”. The town also became the center of pacification and conquest of the mountain tribes in the Cordilleras.

58. QUICK FACTS Land Area:  5,135 hectares Population:  63,692 Number of Barangays:  48 Classification:  First Class Municipalit y Source: https :// launion.gov.ph/agoo-la-union / Agoo’s overall development may not be completed without mentioning the continuing devotion of the people to their faith. The countless miracle stories attributed to Apo Caridad which includes the dramatic rise of Agoo from the rubble of the July 1990 Killer Quake and religious structures. The Basilica Minore of Our Lady of Charity is noted for its Mexican-Baroque architectural features. A rosette stained glass window upon the Basilica’s facade is a marked contrast to the gray color of the front wall. To promote the Iloco delicacy, every 6th of May is designated as Dinengdeng Festival, where more than 100 recipes of the popular Iloco meal are showcased.

59. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 298,601,000.00 P 246,524,000.00 (P 52,077,000.00) Expenses 177,430,000.00 192,693,000.00 15,263,000.00 Income P 121,171,000.00 P 53,831,000.00 (P67,340,000.00)

60. revenue Tax Revenue Real Property Tax Tax on Business Other Taxes Source: agoogov.com

61. revenue Non-Tax Revenue Regulatory Fees Service/User Charges Receipts from Economic Enterprises Source: agoogov.com Other Receipts

62. revenue External Sources Internal Revenue Allotment Other Shares from National Tax Collections Inter-Local Transfers Source: agoogov.com Extraordinary Receipts/Grants/Donations/Aids

63. ___________________________ Municipality of Rosario, La Union “The Center of Wood Carving in Southern La Union” Rosario is the last town on the southern portion of La Union. From the south, it is the first town in the Ilocos region. Travelers aptly call it the “Gateway to Ilocandia”. Rosario used to be a sitio and then a barrio of Santo Tomas, La Union. It was converted into a municipality in 1869.

64. QUICK FACTS Land Area:  7,419.41 hectares Population:  55,458 Number of Barangays:  33 Classification:  First Class Municipalit y Source: https :// launion.gov.ph/rosario-la-union / Around 216 kilometers away from Manila, Rosario requires a four-hour drive and serves as a link to the Ilocos and Cordillera Provinces. Kennon Road starts from this town and ends at Baguio City. Predominantly Roman Catholic, Rosario’s Parochial Fiesta, the Feast of Immaculate Concepcion, falls every December 8. The Rosario Nature Park, a multi-hectare haven of lush green is La Union’s biggest camping site. Because of its wide area and excellent vegetation, it is used by the Boys Scouts and Girls Scouts of the Philippines as a venue for Jamborees.

65. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 199,379,000.00 P 192,712,000.00 (P 6,667,000.00) Expenses 166,274,000.00 169,354,000.00 3,080,000.00 Income P 33,105,000.00 P 23,358,000.00 (P9,747,000.00)

66. revenue Tax Revenue RPT-General Business Tax Other Taxes Source: launion.gov.ph

67. revenue Operation & Miscellaneous Revenue Fees and Charges Economic Enterprise Other Receipt Source: launion.gov.ph

68. CLASS B MUNICIPALITIES

69. There are 19 municipalities as of 11 January 2019. Source: psa.gov.ph

70. ___________________________ Municipality of Aringay, La Union “Home of Tasty Bangus” Municipality of Aringay boasts a wide hectarage of milkfish, prawn and oyster culture in barangays Alaska, Dulao and Samara. The eastern part of the town is mountainous with some fertile valleys cultivated with rice, tobacco, vegetable and other root crops. Irrigation system has also benefited farmers in some areas to plant twice or thrice a year.

71. QUICK FACTS Land Area:  10,950 hectares Population:  47,458 Number of Barangays:  24 Classification:  Second Class Municipalit y Aringay celebrates its Town Fiesta from December 1 to 13 as well as its Parochial Fiesta, the Feast of Saint Lucy, every 4th of May. The municipality also serves as home for the Philippine National Police Regional Training Center. Aringay is also the hometown of the country’s first Ms. Universe, Ms. Gloria Diaz. Source: https ://launion.gov.ph/aringay-la-union/

72. Products Buyos is one of the product of Aringay which is made out of ground glutinous rice and coconuts strips wrapped in banana leaves then cooked over charcoal. It is sticky, sweet, chewy, and delicious specially if it is still hot. The chewy sweet centre with bits of fresh young coconut strips and the crunchy charred bits will definitely make you ask for more. Barangay Dulao has the most number of fishpens in La Union. The high quality and the most delicious milkfish (bangus) are being cultured here.  Aringay is one of the best producer of corn husks products. The examples of corn husks  products that are made in Aringay are baskets, house decorations and many more. Source: www.aringay.gov.ph

73. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 156,825,000.00 P 132,560,000.00 (P 24,265,000.00) Expenses 99,426,000.00 117,373,000.00 17,947,000.00 Income P 57,399,000.00 P 15,187,000.00 (P42,212,000.00)

74. revenue Tax Revenue Individual and Corporation: Professional Tax Property: Real Property Tax-Basic, Real Property Transfer Tax Goods & Services: Tax on sand, Gravel and other Quarry, Tax on Delivery T rucks and Vans, Franchise Tax Fines & Penalties: Property Tax Source: www.coa.gov.ph

75. revenue Source: www.coa.gov.ph

76. revenue Source: www.coa.gov.ph

77. revenue Source: www.coa.gov.ph Shares from PCSO

78. _________________________________ Municipality of San Juan, La Union “The Surfing Capital of the North” San Juan, with its rolling waves and delightful beach scenes, has become a household name in the surfing and tourism industry. A haven for local and foreign surfers alike, surf lessons are readily available wherein first-timers can be taught the basics in just an hour.  San Juan is also a laid-back town known for its pottery industry. Earthenware of various sizes and designs, all of superb quality, are sold at Barangay Taboc.

79. QUICK FACTS Land Area:  5,186 hectares Population:  37,188 Number of Barangays:  41 Classification:  Second Class Municipality The La Union Surfing Break, scheduled every end of October, has continually attracted tourists, surfers, college students, beach-lovers, and party-goers, contributing to the rising popularity of this holiday destination. Source: https :// launion.gov.ph/san-juan-la-union / In honor of its St. John the Baptist, San Juan holds its patronal fiesta every 24th of June, and celebrates its annual town fiesta every third week of December .

80. economy TOURISM San Juan is considered to be the Surfing Capital of the Northern Philippines, and is known for its consistent intermediate quality surf and two surfing seasons from July to October and November to March. COTTAGE INDUSTRIES Pottery , blanket-weaving, basketry, bamboo-craft and broom-making are produced as a folk-industry. Hollow concrete blocks are manufactured in the rural villages for local building projects. AGRICULTURE Yellow corn is one of the most important crops in San Juan, and is used as a raw material for food and industrial products such as starch, corn oil, beverages, gluten, snacks etc. It constitutes about 50% of the feed for local livestock and poultry enterprises. It was nominated as the product for the One Town One Product (OTOP) Philippines program of President Gloria Macapagal-Arroyo to promote entrepreneurship and create jobs. Source: en.wikipedia.org/wiki/San_Juan,_La_Union

81. Financial Performance Source: 2016 & 2017 COA Annual Financial Report 2016 2017 Increase / (Decrease) Revenue P 212,512,000.00 P 129,538,000.00 (P 82,974,000.00) Expenses 117,292,000.00 110,903,000.00 (6,389,000.00) Income P 95,220,000.00 P 18,635,000.00 (P76,585,000.00)

82. revenue Tax Revenue RPT - General Business Tax Other Taxes Source: www.coa.gov.ph

83. revenue Source: www.coa.gov.ph

84. revenue Source: www.coa.gov.ph

85. revenue Shares from PCSO Source: www.coa.gov.ph

86. CLASS c MUNICIPALITIES

87. Sources: psa.gov.ph https :// launion.gov.ph/luna-la-union/ https:// launion.gov.ph/bangar-la-union/

88. MUNICIPALITY OF BANGAR, LA UNION “Loom Weaving Capital of the North” Bangar is famous for its loom-weaving industry. The big bulk of orders for placemats, towels, draperies, curtains, blankets and even bathrobes from all over the country and even abroad speaks well of the quality of Bangar woven products. Source: https ://launion.gov.ph/bangar-la-union/

89. QUICK FACTS Land Area:  3,729.17 hectares Population:  37,188 Number of Barangays:  33 Classification:  Third Class Municipality On the northern side of the town flowed the Amburayan river which later on became the setting of the Ilocano epic Biag ni Lam-ang penned by the Prince of Ilocano Poets, Pedro Bucaneg. This river was also another source of income for the inhabitants because in it were gold dusts and granules which were panned and collected The Parish Church is a must to see attraction, other than its intricate ceiling murals, it also takes pride for being one of the few churches in the country with three belfries.

90. economy Agriculture, however, still remains the main source of income for the people of Bangar. Its principal crop is rice while tobacco comes next. Farmers also find planting corn, peanuts, and vegetable crops as a quite lucrative source of additional income in between cropping. Fishing also occupies a greater time of the people from the coastal barangays of Bangar. Ipon which comes out from the month of August to April is caught abundantly along these coastal areas. Bangus fry is caught from March to the earlier part of July. Tuna fish locally known as oriles and codfish abound in the coastal waters of this town. The Amburayan river also teems with fresh water varieties of fish (purong, tibek and birot) and shell (jusiling, suso and gusipeng). Loom weaving industry and metal crafts (bolo and agricultural implements)

91. 2016 2017 Increase / (Decrease) Revenue P 213,256,000.00 P 121,328,000.00 (P 91,928,000.00) Expenses 63,833,000.00 65,434,000.00 1,601,000.00 Income P 149 ,423,000.00 P 55,894,000.00 (P93,529,000.00) Financial Performance

92. revenue Locally Source Revenue Regulatory Fees Receipts from Economic Enterprise Service / User Charge Real Property Tax Other Taxes Tax on Business blgf.gov.ph/.../ FYs-2009-2016-LGUs-Annual-Regular-Income-ARI-Data-by-Municipality

93. MUNICIPALITY OF LUNA, LA UNION “Pebble Beach of La Union” Luna is also known for its beaches, particularly in Nalvo Sur and Darigayos. Beach shades, cottages and resorts are found in these barangays. The municipality is also known for its native delicacies and pottery products which are comparable to San Juan's.

94. QUICK FACTS Land Area:  7,419.41 hectares Population:  49,025 Number of Barangays:  40 Classification:  Third Class Municipality The town’s original name is Namacpacan, an Iloco word which means “one who had given food” due to the generosity of the locals of sharing their food to travelers going north during the Spanish times Luna is also home to the famous Ilocano delicacies bibingka and tupig. Damili products (clay products) of various kinds are also made in barangay Barrientos

95. economY A gricultural farming is main occupation of the people . Rice is planted twice or thrice a year in some areas. In between cropping, people plant vegetables and root crops. Fishing is the most important occupation of the residents of Luna especially the inhabitants along the coastal areas. Various kinds of fishes and different species of edible sea weed and sea shells abound in the seawater of Luna. Luna is also known for its stone-picking industry which is the main source of income of 14 of its barangays. These stones have found market not only in the country but also overseas.

96. 2016 2017 Increase / (Decrease) Revenue P 112,124,000.00 P 98,576,000.00 (P 13,548,000.00) Expenses 55,165,000.00 67,076,000.00 11,911,000.00 Income P 56 ,959,000.00 P 31,500,000.00 (P24,459,000.00) Financial Performance

97. revenue Tax Revenue RPT - General Business Tax Other Taxes Source: www.coa.gov.ph

98. revenue Source: www.coa.gov.ph

99. revenue Non Tax Revenue Regulatory Fees Receipts from Economic Enterprise Service / User Charge http:// www.coa.gov.ph

100. The City of San Fernando is situated in the mountainous area at almost the mid-section of La Union along the China Sea. It is the first city created in the province of La Union by virtue of Republic Act 8509, sponsored by the Congressman Victor F. Ortega in the House of Representatives, signed by President Fidel V. Ramos on February 13, 1998 and was ratified by a plebiscite on March 20, 1998. The City of San Fernando is now the seat of national government agencies in Region I and center of trade, commerce, financial and educational institutions, among others. “Booming Metropolis of the North” CITY OF SAN FERNANDO, LA UNION

101. QUICK FACTS     Land Area:  10,688 hectares     Population:  115,494     Number of Barangays:  59     Classification:  Class C  Component City Pindangan was the former name of the City of San Fernando, which was derived from the Iloko word Pindang, a traditional method of drying fish Ma-cho Temple, a Taoist temple located in San Fernando, La union. The temple gives a panoramic view of the city and the San Fernando Bay.

102. 2016 2017 Increase / (Decrease) Revenue P 703,054,000.00 P 725,660,000.00 P 22,606,000.00 Expenses 537,916,000.00 525,741,000.00 (12,175,000.00) Income P 165 ,138,000.00 P 199,919,000.00 P34,781,000.00 Financial Performance

103. revenue Tax Revenue Local Taxes Business Tax Community Tax Real Property Tax Amusement Tax Other Local Tax

104. revenue General Income Permits and Licenses Service Income Business Income