Kalayaan total financial resources had progressively increased in the past three years. From a total income of P6,470,981.83 in 1993, it reached P 8,701,971.83 in 1994 then to P9,753,456.67 in 1995 representing increases of 34% (between 1993-1994) and 12% (between 1994-1995). The decline in percentage of increase between 1994-1995 may be attributed to the decrease in total receipts or operating and miscellaneous revenues in 1995.

Sources of funds include tax revenues and other receipts from operating and miscellaneous revenues, capital revenue, grants, extraordinary income, borrowings and interfund transfers.

Tax revenues include: internal revenue allotment (IRA), specific tax allotment, real property tax, and local taxes. If these sources the IRA is the biggest contribution. These constitute about 82% of the total tax revenue in 1993 and 79% of the 1994 and 1995 figures. Even with the total financial resources, the IRA is the major component. These are revenue allotment from the national government and is thus sourced externally. Locally generated taxes includes the real property tax and other local taxes.

Real property tax which is a major contributor in every local government units financial resources, shows a fluctuating trend. It decreased by about 54% from 1993-1994 and then increased by 19% from 1994-1995. With the tax mapping being completed, it is proposed that collection of real property taxes be made updated and effective. Likewise, proposed developments as spelled out in the comprehensive land use plan will help increase real property taxes and eventual collection.

Local taxes which include business tax, occupation tax, fines/penalties immigration tax, weights and measures and miscellaneous tax, show remarkable performance in three years. It has consistently increased within the period.

Receipts from operating and miscellaneous revenues shows declining figures from 1993 to 1995.

Table 50.1 shows historical data of the municipality financial resources.

TABLE 50.1
HISTORICAL INCOME DATA
(General Fund)

Source: Office of the Municipal Budget Officer

Goal

1. To have an efficient/effective fiscal management system.

Objectives

1. To generate more income to meet current and projected development needs.
2. To have proper allocation of municipal revenues.
3. To have a more improved fiscal management/planning control system.

Strategies

1. Conduct of renewed efforts in improving its locally generated funds to minimize dependency to external sources of funding.

2. Proper streamlining of the present real property tax systems by:

a. Finalization/continuous updating of tax map for a proper/relevant graphical information on all properties subject to real property tax assessment.
b. Conduct of regular inspection/reclassification of properties to ensure correct assessment of these properties.
c. Maintenance of a real property identification/accounting system as well as an updated real property assessment roll/listing.
d. Intensive collection of real property tax.

3. Improvement of income from other tax revenue sources through:

a. Maintenance of an updated record of business operation/activities subject to tax by conducting regular inspection/monitoring and assessment of these activities/operation.
b. Conduct of an effective tax information/consciousness campaign in the area.
c. More intensive/effective collection of these taxes.

4. Proper/Efficient management of local government operations to be able to increase income generated from these operations.

5. Local government involvement in viable/profitable business ventures which could provide/generate additional income for the municipality.
Ex. Livelihood Infrastructure Projects.

6. Maintenance of an adequate/effective/qualified personnel line-up to handle its fiscal management operations.