BLGF Memorandum

March 7, 2018 BLGF MEMORANDUM 2nd Indorsement Respectfully returned to the Acting Regional Director, BLGF Region XIII , Butuan City, is the herein 1st Indorsement dated 19 February 2018, forwarding the letter dated 5 February 2018 of Ms. Marivic S. Tautoan, City Treasurer of Cabadbaran City, requesting for clarification relative to the income classification of Cabadbaran City. It was represented that Cabadbaran City has been using the 5th income classification in their financial operations for the past years, which is not in accordance with this Bureau's Memorandum Circular (MC) No. 01-C(e)-08 dated 17 December 2011, that re-classified said city as 6th Income Class. Further, it was informed that adjustments on salaries of officials and employees were effected only in CY 2017, as 6th Income Class. In this regard, it is informed that the income re-classification of provinces, cities and municipalities that was undertaken by this Bureau in 2008 was based on the certified average annual income of LGUs covering CYs 2004-2007, and in pursuance of Department of Finance (DOF) Department Order (DO) No. 23-08 dated 29 July 2008, that provided the income benchmarks for the re-classification, as follows: Class Average Annual Income First Php400M or more Second Php320M or more but less than Php400M Third Php240M or more but less than Php320M Fourth Php160M or more but less than Php240M Fifth Php80M or more but less than Php160M Sixth Below Php80M Accordingly, MC No. 01-C(e)-08 was issued re-classifying Cabadbaran City as 6th Income Class on the basis of its average annual income for CYs 2004-2007 amounting to Php68.086M, and in accordance with the income benchmark of "Below Php80M" for 6th Class cities. Further, it is informed that the correct income classification of Tandag City is 6th Income Class, taking into consideration its average annual income of Php66.072 for CYs 2004-2007 which, likewise falls under the income benchmark of "Below Php80M" for 6th Class cities. In view of the foregoing, it is hereby clarified that both Cabadbaran City and Tandag City shall remain 6th Income Class cities based on the income benchmarks provided for under the aforementioned DO No. 23-08, and shall continue to be in effect until reclassified. CAIHTE Thus, that level is hereby instructed to inform the concerned local treasurers regarding the matter. (SGD.) NIO RAYMOND B. ALVINA OIC Executive Director