Chapter 6: The State of Revenue Generation in Cities - LGRC DILG 10

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Looking at the elements enumerated above, it was obvious that there were cities thatrelatively failed in making their RPTAC systems highly efficient. A clear manifestationwas the absence of online computer-based information to taxpayers in half of the totalcities. That is, only 58 cities or 50% had computer-based information systems. Thenumber of cities that operated in a network interlinked with computers in the offices ofthe assessor and the treasurer also showed that there were needs for improvement. Onlyabout 61% or 71 cities operated in such computer-based network environment. Anotherrevealing fact was that only 77 cities or 66% were guided by an updated LRC in theirRPTAC. The absence of the abovementioned important inputs definitely affected theefficiency of the respective RPTAC systems of the cities in the Philippines.P RODUCTIVITYIn order to determine the productivity of the cities regarding revenue generation, thefollowing LGPMS output indicators were used: Percentage of ARR, RPT collection efficiency rate, Percentage of IRA to totalannual income, and Public enterprise profitabilityrate.Generally, the cities hadperformed well in terms ofoutput indicators. A little morethan half of the cities had highproductivity levels while about37% of them were within thebenchmark productivity level(see Figure 6.8). It wasnoticeable, however, that 13% ofthe cities fell below thebenchmark performance level.Figure 6.8 Performance Levels of 115 Cities Regarding State ofRevenue Generation, PY 200443(37%)11(10%)3(3%)Very High High Medium Low Very Low58(50%)Annual Revenue Realized. The rates of attainment of the revenue targets of the citiesdetermine not just their efficiencies in realizing their incomes but also their capabilities tocome up with feasible targets. To determine the productivity levels of the cities, thefollowing scheme for target accomplishment was used: 81% and above target accomplishment rate - very high 61% to 80% - high 41% to 60% - medium/ benchmark 21% to 40% - low 20% and below – very low34 THE STATE OF REVENUE GENERATION IN CITIES
Using the LGPMS performancelevel scheme above, the citiesgenerally had very highproductivity levels in terms ofrealizing their annual revenues.About 81% or 93 cities showedvery high productivity levels(see Figure 6.9). There were,however, eight cities or 7% thathad very low productivity levels.Figure 6.9 Performance Levels of 114 Cities Regarding Percentagesof Annual Revenues Realized, PY 200412(11%)Except for those in the MSR, thecities in the other super regionshad average numericalperformance levels higher than4.00. The cities in the NLAQVery High High Medium Low Very Lowand CP had average performance levels slightly higher than the national average of 4.73while those in the MLUB registered 4.57. The performance of the cities in the MSR wasthe lowest with a numerical level of only 3.95, but still above the benchmark performancelevel (see Figure 6.10).1(1%)8(7%)93(81%)Figure 6.10 Performance Levels of the Super Regions Regarding the Percentages of Annual RevenuesRealized, PY 2004Average Performance Levels5432104.73NationalAv erage4.774.57Northern Metro LuzonLuzon UrbanAgribusiness Beltw ayQuadrangle4.90CentralPhilippines3.95MindanaoSuper RegionSuper RegionsThe same pattern was observed concerning the performances of cities in terms ofpercentage of ARR. Only the cities in the NLAQ and CP exceeded the 94.55% nationalaverage with 97.43% and 101.08%, respectively (see Figure 6.11). The cities in theMLUB performed way below the national average, with only 86.03% of annual revenuebeing realized in 2004. Meanwhile, the cities in the MSR had the lowest percentages ofrealized revenue, having an average of 79.28%, which was about 14% lower than thenational average.STATE OF CITIES OF THE PHILIPPINES 35Administrative Capacities, Productivity and Development Conditions
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Chapter 6: The State of Revenue Generation in Cities - LGRC DILG 10

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