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The prioritization of programs, projects and activities for the Annual Investment Plan (AIP) for Calendar Year

2012 has been immensely affected due to the issuance of Joint Memorandum Circular No. 2011-1 dated April 13, 2011 from the Department of the Interior and Local Government (DILG) and Department of Budget and Management (DBM). The current above-cited JMC amends the DILG-DBM JMC No. 1 dated September 20, 2005 (Guidelines on the appropriation and utilization of the 20% of the annual internal revenue allotment for development projects) and DILG Memorandum Circular No. 2010-138 dated December 2, 2010 (Use of the 20% component of the annual internal revenue allotment shares). Its purpose is to provide guidelines on the appropriation and utilization of the 20% of the Internal Revenue Allotment for development projects, enhance transparency and accountability of LGUs in undertaking development projects and to include projects in addressing and responding to natural and manmade disasters and calamities. The new JMC has many limitations in the utilization of the 20% Development Funds. It precludes in utilizing the funds intended for other social and development programs and projects. However, all other programs, projects and activities that will not qualify to be financed under the 20% Development Funds have been funded in the General Fund in order not to suffer other services and to provide the much-needed services of the constituents. The projected income for the Budget Year 2012 is Fifty Two Million Eight Hundred Twenty Nine Thousand Seven Hundred Twenty Three Pesos (PhP 52,829,723.00). A total amount of PhP 46,118,823 is the share on Internal Revenue Allotment (IRA) from the National Government which comprised 87% of the total income of the municipality. Shown below is the Sources of Income of the municipality.

Figure 1. Sources of Income, Aloran, Mis. Occ.

The total amount of Nine Million Two Hundred Twenty Four Thousand Pesos (PhP 9,224,000.00) or equivalent to twenty percent (20%) of the annual share from the Internal Revenue Allotment (IRA) from the National Government is appropriated by the municipality of Aloran intended for development projects. This Development Fund appropriation is in pursuant to Title 3, Chapter 1, Section 287 of RA 7160 or otherwise known as the Local Government Code of 1991. For the past year, the 20% from the Internal Revenue Allotment (IRA) is PhP 8,812,800.00 for development projects. Therefore, there is an increase of PhP 411,200.00 or 4.46% over the preceding year. Only General Public Services (76.29%) and Economic/Environmental Services (23.71%) are appropriated for Budget Year 2012. Illustrated below is the allocation for General Public Services under 20% Development Funds. Figure 2. General Public Services (20% Development Funds) Roughly a quarter (24%) of the total amount under General Public Services has been apportioned to Infrastructure Support Fund. The appropriations for Infrastructure Support Fund have been tripled for the ensuing year and will be utilized as counterpart/equity fund for unforeseeable infrastructure projects for social, economic and environmental development. Loans payable are statutory and contractual obligations which constitutes almost three-fourths (72%) of the total allocation under the General Public Services. The LGU availed of various loans from various banks intended for development project and counterpart in the implementation of

various projects. The loans payable in the municipality are illustrated below.

Figure 2. Loans Payable, Aloran, Mis. Occ. Almost half (44%) has been allocated for the amortization of the Road Grader and thirty five percent (35%) is for the amortization for various InfRES Project (implementation of various farmto-market roads and rural water supply system) both at Land Bank of the Philippines (LBP) and 21% is for the amortization of the loans at UCPB-Savings Bank used as counterpart fund in the Performance Challenge Fund (PCF) for economic development. For the Economic/Environmental Services, the municipality allotted a total amount of PhP 2,187,000. All of the appropriations in the sub-sector have been increased due to urgency and necessity and an additional item (Other Agricultural Projects) is added to provide livelihood support to the people. Figure 4. Economic/Environmental Services, Aloran, Mis. Occ. The programs, projects and activities (PPAs) embodied in the Annual Investment Plan (AIP) for Fiscal Year 2012 is very vital and crucial in achieving development objectives of the municipality. 2. PRACTICAL VISION A progressive municipality, a producer and supplier of agri-based products in Misamis Occidental with peoples participation in socio-economic endeavors, in a healthy, productive, peaceful and ecologically-balanced environment through good governance and committed public servants. 3. STRATEGIC DIRECTIONS 1. Appropriate and allocate funds intended for all development programs and projects 2. Establish linkage, network and collaboration with different National Government Agencies (NGAs) and other development partners 3. Constant sourcing-out of funds to finance development programs and projects that cannot be funded by the local income 4. Strict enforcement of Municipal Zoning Ordinance in support to the implementation of Comprehensive Land Use Plan 5. Rational and judicious utilization of natural resources so as to ensure environmental sustainability 6. Resource Generation and Mobilization On-time revision of Local Revenue Code so as to increase collection of local revenues Full implementation of Local Revenue Code Inventory, updating, reconciliation and evaluation of records at the Treasury and Assessors Offices Strategize collection efficiency and management Intensification of Information and Education Campaign (IEC) in the collection of taxes to

improve collection efficiency Granting incentives to tax collectors with remarkable tax collections every calendar year Penalty should be properly levied and imposed to delinquent taxpayers Providing incentives to good tax payers thereby attracting other taxpayers to pay on-time Formulation of strategies and policy measures to improve tax collection efficiency Formulation of Local Investment and Incentive Code to promote investment to attract local and foreign prospective investors Conduct tax mapping to all 38 barangays to maximize in the identification of taxable properties Strengthen the internal control unit and install mechanisms to safeguard collections Review the provisions of RA 7160 or otherwise known as the Local Government Code of 1991 the taxing powers of the Local Government Unit 7. Establish network and linkage to Non-Government Organizations (NGOs), institutions and agencies to access and mobilize additional funds 8. Provide funds intended for livelihood projects to augment income of marginal farmers 9. Establish and develop capacity and capability building programs for human resource 10. Preparation of proposals and concept papers in accessing funds as a traditional way of mobilizing additional resources 4. SPECIFIC OBJECTIVES 1. Improved farm-to-market road condition thereby reducing transportation and hauling costs of farm/agricultural inputs and products 2. Concretized municipal roads/streets thus increasing mobility and accessibility in the urban and suburban area 3. Improved infrastructure support facilities 4. Improved public facilities and utilities and other social-related infrastructures 5. Improved access to potable water 6. Promotion of tourism in the area so as to raise additional local revenue. 7. Increased income of the marginal farmers and fishermen 8. Provision of livelihood projects to help augment family income of disadvantaged families and disadvantaged individuals in the locality 9. Improved and increased delivery of much-needed basic health and social services to the constituents 10. Improved access to basic services 11. Increased and diversify farm production 12. Develop entrepreneurial skills of farmers 13. Ensure environmental sustainability 14. Improved public service delivery

5. POLICY DECISIONS 1. Business Sector, Peoples Organization and Local Government Unit are partners in local governance to attain progress and development

2. Convergence and unified efforts of all development partners towards attaining progress 3. Government sector shall always promote the general welfare of its constituents 4. Adherence to all issuances, Republic Acts (RA), Presidential Decrees (PD) and etc.

6. DETAILS OF PROGRAMS/PROJECTS/ACTIVITIES Details of priority programs, projects and activities (PPAs) of the Municipality of Aloran, Misamis Occidental for the Calendar Year 2012 are hereunder listed: PROJECT No. 1 Title: Loans Payable Location/Coverage: Municipality of Aloran Project Cost: PhP 5,037,000.00 Rationale: The municipality of Aloran availed of various loans from Landbank of the Philippines (LBP) and United Coconut Planters Bank (UCPB-Savings Bank) intended for development projects as Capital Outlay and Counterpart Fund. However, the LGU is within the 20% allowable of the total income Debt Servicing as provided in Section 324B of the Local Government Code of 1991. The project costs are intended for the monthly amortization for the following: Road Grader (PhP 2,208,000.00), InfRES Project (PhP 1,792,000.00) all in LBP and Counterpart Fund for the Performance Challenge Fund (PhP 1,037,000.00) at UCPB Savings Bank-Aloran Branch. Significance: Schedule of repayments with the Land Bank of the Philippines and UCPB Savings Bank-Aloran Branch shall be amortized by the local government unit without delays to avoid surcharges and penalties.

PROJECT No.2 Title: Infrastructure Support Fund Location/Coverage: Municipality of Aloran Project Cost: PhP 1,700,000.00 Rationale: Various development assistance from different countries such as Official Development Assistance (ODA) and assistance from various Non-Government Organizations (NGOs) require counterpart fund from the municipality in the implementation of projects where their development funds are being poured. One of the municipalitys major thrusts is to improve infrastructure support facilities such as farm-to-market roads, water systems, related social and environmental infrastructure, etc. thereby bringing development in the municipality as a whole. The project costs will be used for the municipalitys implementation of various local and foreignfunded projects (MRDP2, etc.) which requires counterpart/equity in its implementation. Significance: Provided counterpart in the project implementation.

PROJECT No. 3

Title: Completion of Multi-Puropose Hall (Legislative Building -Phase 10) Location/Coverage: Dalisay, Aloran, Misamis Occidental Project Cost: PhP 300,000.00 Rationale: The construction of Multi-Purpose Hall (Legislative Building) is progressive type due to dearth and scarce resources. The funds for the first construction were initially funded by the LGU. Recently in 2011, the legislative department was able to access funds from the Congressional Funds in the total amount of Php 1,000,000.00 however it remains to be unfinished. The LGU still appropriated for the completion of the project from the 20% Development Fund. The augmentation of funds is intended for the completion of Multi-Purpose Hall (Legislative Building). Sourcing out of funds (provincial government, congressional fund, senatorial development fund) is still imperative for the realization of the project. Significance: A venue conducive for the legislative department to function effectively & efficiently and for other purposes.

PROJECT No. 4 Title: Clean and Green Project Location/Coverage: Aloran, Mis. Occ. Project Cost: PhP 968,000.00 Rationale: The municipality is a consistently awarded in the search of Gawad sa Kapaligiran conducted by the Department of the Interior and Local Government (DILG) for 4th and 5th income class category. The search is in recognition for LGU who took initiatives in preserving, conserving, and protecting the environment. The funds are appropriated for the maintenance and operation of clean and green project of the municipality such as cleaning and greening of municipal streets and public places, tree planting in the protected and watershed areas, etc. Significance: Protection, conservation and preservation of the environment. PROJECT No. 5 Title: Solid Waste Management Project Location/Coverage: Aloran, Mis. Occ. Project Cost: PhP 732,200.00 Rationale: Republic Act 9003 or otherwise known as the Ecological Solid Waste Management Act of 2000 mandates LGUs to implement solid waste management. The local Sanggunian enacted an ordinance in support to the implementation of the law at the local level. The funds budgeted is intended for the implementation of the Ecological Solid Waste Management Project such as collection and disposal of solid waste in the urban and suburban areas and maintenance of dumpsite at barangay Culpan, and maintenance of roads and streets in the municipality. Significance: Protection, conservation and preservation of the environment. PROJECT No. 6 Title: Agricultural Productivity Location/Coverage: 38 Barangays of Aloran Project Cost: PhP 300,000.00 Rationale: The municipality is primarily an agricultural area. Hence household income is derived from farming. The appropriations are intended to support and enhance existing agricultural projects and other related agricultural activities. Significance: Sustain agricultural productivity in the municipality. PROJECT No. 7

Title: Other Agricultural Projects Location/Coverage: 38 Barangays of Aloran Project Cost: PhP 186,800.00 Rationale: Since the municipality is primarily an agricultural area, household income is derived from farming. The appropriations are intended to provide micro-financing assistance intended for livelihood projects which helps augment household income to identified farmerbeneficiaries. Significance: Sustain agricultural productivity in the municipality.

7. OTHER PRIORITIES FOR THE BUDGET YEAR 2012 Due to scarcity of financial resources to implement development programs and projects, there are other priorities which cannot be funded from the 20% Development Funds. These are identified because the municipality believes that these will bring development in the municipality as a whole. Fund souring is an essential element to increase funds which is a proven strategy of local leaders. The ability of the local leaders puts to the tests to maximize the meager financial resources to achieve and deliver optimum development targets. Here listed are other priorities for Fiscal Year 2012 which will be funded from external sources. To finance these development projects, it is imperative that these will be lobbied to different agencies such as the Department of Agriculture, Provincial Government, Congressional Funds, Senatorial Funds, loan financing in the banks and etc. The local government unit is already qualified and identified as beneficiary/recipient of the Mindanao Rural Development Program Phase 2 (MRDP2) under the Department of Agriculture (DA). Three (3) out of the eight (8) submitted project proposals to MRPD2 has been approved and already issued with First No Objection Letter (NOL 1). The following approved proposed projects are: 1) Rehabilitation of Caputol FMR; 2) Rehabilitation of Tugaya FMR; and 3) Construction of Mitazan-Nabuna Submarine Bridge which is set to take-off its implementation in Year 2012. The other remaining five (5) project proposals (Rehabilitation of four [4] sections of Farm-to-Market Road and Construction of Submarine Bridge in Toril) are already in the pipeline for evaluation and review at DA-MRPD2. The municipality is planning to acquire one (1) unit Road Roller to complement the newly acquired Road Grader. The acquisition of the said equipment will pave the way for improved farm-to market roads for its operation and maintenance activities. To improve the implementation of the Republic Act 9003 or otherwise known as the Ecological Solid Waste Management Act of 2000, the municipality implemented the Solid Waste Management Program. The acquisition of one (1) unit Dumptruck and one (1) unit Garbage Compactor will eventually enhance the implementation of Solid Waste Management Program. It is also targeted for the ensuing year that the remaining portions of the major thoroughfares in the town center will be concreted to have an easy and conducive access of the riding public. The Office of the Sangguniang Bayan passed Resolution No. 11-138 (Most respectfully requesting the office of the Hon. Jimmy R. Regalado, Municipal Mayor, this municipality, to include the acquisition of one [1] unit Toyota Grandia [16-seater] for the office of the Sangguniang Bayan, this municipality, in the 2012 20% Development Fund project listing). The acquisition of the vehicle is imperative as this will serve as their official service vehicle to address its official travel needs. Since the proposal will not qualify in the 20% Development Fund, this will be acquired and financed through a loan in a bank and the amortization will be charge to the

General Fund of the municipality. The priorities for Fiscal Year 2012 are hereunder listed: 1. Purchase of Vehicle (Toyota Grandia) 2. Acquisition of Road Roller 3. Acquisition of Dumptruck 4. Acquisition of Garbage Compactor 5. Concreting of Municipal Streets 6. Replacement of Submarine Bridge 6.1 Toril 6.2 Mitazan 7. Rehabilitation of Farm-to-Market Roads (FMRs) 7.1 Caputol FMR 7.2 Tugaya FMR 7.3 Calube FMR 7.4 Pelong FMR 7.5 Maular FMR 7.6 Matipas FMR We will still achieve development goals and targets despite of the available meager resources for the local officials are always optimistic in realizing and attaining its vision. Situations such as these require good planning, sound financial and fiscal management and rational and judicious utilization of resources to accomplish development targets. Delivery of much-needed basic services will eventually help alleviate the socio-economic living conditions of the people.