An Act Amending Section 450 of Republic Act No. 7160, Otherwise Known as the Local Government Code of 1991, by Increasing the Average Annual Income Requirement for a Municipality or Cluster of Barangays to be Converted into a Component City
Republic Act No. 9009, enacted on February 24, 2001, amends Section 450 of the Local Government Code of 1991 by increasing the average annual income requirement for a municipality or cluster of barangays to be converted into a component city to at least 100 million pesos, certified by the Department of Finance. Additionally, the area must meet specific territorial or population criteria, including a minimum land area of 100 square kilometers or a population of at least 150,000 inhabitants. The act ensures that the creation of a new city does not diminish the land area, population, or income of the original municipality. It also specifies that income calculations should exclude special funds and non-recurring income. The law took effect on June 30, 2001, after publication in two national newspapers.
February 24, 2001
REPUBLIC ACT NO. 9009
AN ACT AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, BY INCREASING THE AVERAGE ANNUAL INCOME REQUIREMENT FOR A MUNICIPALITY OR CLUSTER OF BARANGAYS TO BE CONVERTED INTO A COMPONENT CITY
Section 450 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, is hereby amended to read as follows:
"Section 450. Requisites for Creation. — (a) A municipality or a cluster of barangays may be converted into a component city if it has a locally generated average annual income, as certified by the Department of Finance, of at least One hundred million pesos (P100,000,000.00) for the last two (2) consecutive years based on 2000 constant prices, and if it has either of the following requisites:
(i) a contiguous territory of at least one hundred (100) square kilometers, as certified by the Land Management Bureau; or
(ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the National Statistics Office.
The creation thereof shall not reduce the land area, population and income of the original unit or units at the time of said creation to less than the minimum requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created city shall be properly identified by metes and bounds. The requirement on land area shall not apply where the city proposed to be created is composed of one (1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The average annual income shall include the income accruing to the general fund, exclusive of special funds, transfers, and non-recurring income." SHAcID
SECTION 2. Repealing Clause. — All laws, decrees, orders, rules and regulations, and other issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or modified accordingly.
SECTION 3. Effectivity Clause. — This Act shall take effect on June 30, 2001 following its complete publication in at least two (2) national newspapers of general circulation.
Published in The Manila Times and the Daily Tribune on March 2, 2001. Published in the Official Gazette, Vol. 97 No. 22, page 3220 on May 28, 2001.