Bureau of Local Government Finance Opinion

September 29, 2011 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Hon. Michelle N. Rabat City Mayor City Hall Mati City, Davao Oriental Madam : This refers to your letter dated August 25, 2011, requesting that the now City of Mati be classified in view of the Entry of Judgement dated June 28, 2011, issued by the Supreme Court, rendering as final R.A. No. 9408, converting into a city the former Municipality of Mati, Davao Oriental. In this regard, and in pursuance of Department of Finance (DOF) Order No. 23-08 dated July 29, 2008, copy enclosed, that city is hereby tentatively classified as 5th Class, on the basis of the computed Average Annual Income of the then Municipality of Mati for CYs 2004-2007, in the amount of P123.602M, and in accordance with the income benchmark of "P80M or more but less than P160M" for 5th Class cities. Please take note that herein tentative income classification was based on the audited financial reports for CYs 2004-2007, of the former Municipality of Mati, but in accordance with the income benchmark for city as provided for under the aforecited DOF Order No. 23-08, since that city is newly converted which has not as yet earned the full four (4) year income requirement as a city to be considered for regular income re-classification. HaIESC Thank you and congratulations to the new City of Mati! Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA, CESO III Executive Director