STATE OF THE CITY ADDRESS 2006
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Acknowledgments In 2005, we were witness to the media campaign of some Metro Manila local governments eager to receive a share of investments and new business. In their eagerness to attract new business, most of these local governments resorted to making inaccurate and often exaggerated claims about their strengths, while downplaying their weaknesses. Some local bureaucrats, however, crossed the line of what i would describe as ‘inter-LGU courtesy” and went to the extent of denigrating the city of Makati. While Makati has always believed in competition, and has in fact always been conscious of having to compete with other local governments both here and abroad, we believe such a competition must be made under gentleman's rules – no low blows, no dirty tactics. If I may be allowed to speak bluntly, comparing Makati with other cities is like comparing apples and rambutan, for how can you honestly compare the financial capital to the shoe capital or to the KTV meat market capital? We attract different types of investors. We differ in size and population. In theory, metro cities that are larger in size – in theory at least – enjoy some advantage over smaller cities like Makati. One advantage is that, again in theory, larger cities should have more business and commercial establishments, giving them a wider tax collection base. Another is that they get a bigger internal revenue allotment or IRA. The IRA is computed based on land area and population, and bigger cities collect at least p1 billion in IRA. In contrast, Makati has an average IRA of p400 million, representing on the average less than 8% of its total revenues. Some local treasury officials find it convenient to lump together their IRA with their revenue from local sources, and then claim to be the richest city. But the IRA is mandated by law. Local governments get their IRA without breaking a sweat. Many believe that Makati has never had a fiscal problem that we never had to struggle to make our budget match our projects. February 1986 may seem like ancient history to many Filipinos, so it is forgivable if this belief is widely held. But let me refresh your minds a little bit. In 1986 when i was the first local executive appointed by President Cory Aquino, the municipal treasury was bankrupt. It had total debts and obligations of Php 200 million, as against an income of p190 million. Since 1987, Makati's revenues have been increasing at an average of two per cent a year. And I need to emphasize that Makati only raised business taxes this year, and the adjustments, which is long overdue, was meant only to correct our tax rates from municipal to city levels. And again, unlike most LGUs, we have been very, very transparent in the process and allowed all sectors to state their position in public hearings and in the media. I believe that the end result, where the adjustment was reduced from forty per cent to an average twenty percent, reflects a happy compromise between the city and the business sector. And yet, while local governments are expected to utilize their revenues for the welfare of constituents and clients, some local governments seem to be happy, and even make a big deal out of the fact that they have millions of pesos in the bank. They even have a rather peculiar slogan – earn more, spend less. To my mind, and I am sorry if this will offend some of my colleagues, it doesn't make sense when a local government has all that money in the bank but cannot provide residents with decent health care, or build enough classrooms so you don't have 70 students crammed like sardines in one classroom, with only one light bulb, in a school with only one toilet. And in this age when computer skills are expected of new entrants in the corporate and government world, it would be the height of negligence if a local government, especially if it has the resources, does not invest in computer learning. If a local government has all that money yet doesn't invest in the future of its children, then it is doing a great disservice to its constituents and its taxpayers. This is what sets apart managing corporations from managing governments. Both may use the same management principles, but corporations are concerned mainly with profits, and the CEO is only accountable to the shareholders who need to be kept happy with a healthy bottom line. Governments, on the other hand, are about providing services and benefits funded mainly through taxes. Liquidity is a good thing, and Makati has been observing a policy of fiscal discipline since 1986 while leveraging our financial stability to secure the best terms. But remaining liquid should not be at the expense of services. Taxpayers expect service. Having said that, allow me then to enumerate where your taxes went in 2005. EDUCATION The city government continues to put a premium on education. For 2005, the city government spent Php 283 million for free textbooks, workbooks, school supplies and uniforms of Makati public school students, p23 million more from what was spent in 2004. Makati continues to lead in providing computer literacy training programs in its schools. Computer education is offered to Makati students as early as the pre-school level. Likewise, we have opened barangay computer centers in 24 barangays to provide free computer access to Makati's youths even outside their classrooms. Among other local governments, Makati can boast of still having the best and most modern school buildings and facilities, which rival even those of private educational institutions. We believe that as a result of our belief in the empowering nature of education, Makati's public school students have been performing exceedingly well, bringing honor and glory to their schools and their city. Last year, public school students represented the Philippines in the world robotics competition in Thailand , where they received a special award. We also had the distinction of sending another Makati student to Singapore on scholarship, bringing to three the number of students from Makati 's public schools who are scholars of the Singapore government. In addition to prioritizing education, the city government has also focused on safeguarding the health of Makati 's students. This past year, the city government, in cooperation with DepEd-Makati, the health department and the confederation of parents, teachers association of Makati was able to launch a nutrition program for undernourished students . Through project food for excellence and development or project feed, undernourished elementary students are put on a 90-day feeding program, wherein they are given nutritious lunches prepared by health nutritionists. We allocated p12 million for this program. Students at the university of Makati or UMAK continue to receive both in-school and in-company training, in partnership with private firms. The system has constantly resulted in higher employability for UMAK graduates due to a proper matching of career path development to the existing needs in the labor market. We can also boast that the UMAK's college of nursing already has 1,181 students availing of its BS Nursing course. A considerable turn-out taking into account that the college of nursing, only started in 2003. And in the last board examinations, the UMAK had a passing mark of one hundred percent. HEALTH FOR ALL We have always put much priority on preventive health care and we never fail to improve our health programs every year. In fact, as of September 2005, 649,086 people have already benefited from our health programs. A great improvement from 460,385 in 2004. Our health programs have included mothers who underwent reproductive health care in Makati's health centers. They received check-ups and medical attention from their pregnancy until the time they gave birth. Likewise, health services including immunization and vaccination drives, proper nutrition, family planning and geriatric health care were done to prevent the spread of various afflictions . We also continue to advance our objective to turn our Makati health plus program, better known as the yellow card, into a universal health insurance program. It is the city government's aim to make quality health services available to all residents, especially to the city's indigents, and to make health services available not only in Makati but anywhere in the Philippines. We started to do this in 2004 by giving free Philhealth memberships to Makati's poor families, for them to be able to acquire medical assistance in any Philhealth-accredited hospital both in and out of the city. The premiums are paid by your city government. I n the middle of November 2005, we have been able to enroll 57,558 families in the Philhealth program. We have already augmented the budget of this program to p70 million in our aim to increase the number of beneficiaries this year. And to ensure that residents receive medical services when needed, all 28 health centers of Makati are accredited by Philhealth. We have also stepped up our efforts to ensure a more thorough screening process of applicants for the yellow card so as to be able to give priority to Makati residents. That is why from 300,000 granted with yellow cards from 1986 up to June 2004, we were able to lower the number to 86,231 in September 2005. Among those given yellow cards were 64,245 residents, 14,886 senior citizens and 14,200 employees of the city government, DepEd - Makati, Makati police department and Makati fire department. This way, we were able to lower the influx of patients in the Ospital ng Makati and make sure quality health services are granted to genuine bona fide Makati residents. By now, the Makati acute care center on Malugay St. Should be a familiar site for all of you. The MACC is the first and only medical facility in the Philippines dedicated to emergency care, and offers the most advanced emergency facilities and the best trained emergency care doctors and staff right here are the central business district. Last year, the facility received its baptism of fire during the Valentine's Day bombing, when a large number of victims were rushed to the MACC. As a result of their timely and professional intervention, the lives of many innocent victims were saved. Our health programs have resulted in Makati becoming the healthiest LGU in the Philippines, with the lowest malnutrition rate of 1.52 per cent compared to an average of 5.49 per cent in Metro Manila. FOR OUR SENIOR CITIZENS We continue to look out for the welfare and well-being of our senior citizens. Our Seniorito and Seniorita citizens continue to enjoy free movies in Makati's cinemas. The past year saw some 15,000 movie tickets afforded every month to our senior citizens by Makati's three major cinemas. In exchange, the city government paid about P5 million for the entire year. Our senior citizens continue to enjoy free field trips and excursions through the Lakbay Saya program, visiting interesting sites in Intramuros, Cavite, Baguio city, and Bicol where they visited the Mayon Volcano. Our seniors were entertained with a free live concert of kundiman songs through armida siguion-reyna's aawitan kita at the university of Makati mini-theater. The event is staged every last Friday of the month. We were likewise able to assist three senior citizens and their families in going home to their provinces through the balik probinsya program, this 2005. We were able to extend our support to 334 bereaved families of Blu Card holders this past year. We released over P1 million in assistance to the beneficiaries of the program, under which the families of senior citizens who are Blu card holders are given Php 3,000 financial aid when the senior citizen passes away. From 2002 up to November 2005 there are now 30,050 Blu Card holders. Aside from the burial assistance, card holders also receive Php 2,000 cash gifts every year. They can also avail themselves of medical and dental consultations by presenting their Blu cards. Our Senioritos and Senioritas are also given additional treats during their birthdays and 50 th wedding anniversaries in the form of cakes delivered to their houses. The past year saw to 23,317 seniors receiving cakes on their birthdays. We still have to determine if this project has led to higher sugar levels among our senior citizens, but perhaps we will introduce sugar-free cakes this year. INFRASTRUCTURE The city government was able to complete eight major infrastructure projects for 2005 - the new Makati police headquarters along Ayala avenue extension, the olympic-sized swimming pool and warm-up pool in barangay West Rembo, the Magallañes interchange park, and new school buildings in barangays Guadlaupe Viejo, Comembo, Bangkal and Pitogo. Another project which we started last year and will be formally opened this year is the Makati central command center. The command center is capable of answering and responding to emergency calls on a 24/7 basis. I t will be capable of dispatching emergency response teams from the Makati police, department of public safety, fire department and Makati rescue at the push of a button. With closed-circuit TV cameras or CCTVs installed in Makati 's major thoroughfares and intersections, the center also has the capability to monitor major roads and intersections round the clock for both traffic management and security. Computer aided dispatch and global positioning system (GPS) devices also make it possible for the command center to issue orders and pinpoint the locations of police and DPS patrol cars nearest to an emergency situation. As of the moment, we have 35 mobile cars equipped with GPS and we plan to have the entire fleet outfitted this year. And not only the patrol cars, but also our policemen deployed in the central business district will be provided with GPS devices, so we know the specific locations of all police officers any time of day. While I am sure this is something that the business sector appreciates, “sigurado ako na mas tuwang-tuwang dito ang mga misis ng ating mga pulis”. As far as our street-widening and roadwork projects are concerned, the city's engineering department has reported that a total of 319.349 kilometers and 1,120 streets in the first and second districts were re-paved and improved in 2005 as part of our continuing maintenance program. When lined up end to end, that is more or less the distance from Makati to Ilocos Sur. Your city government is nearing completion of its city-wide street lighting program. We did not only installed street lights, but also constructed larger street signs that are lighted up during the evening, for the convenience and safety of pedestrians and motorists alike. Our aim to fully computerize the government and how it does business is fast becoming realized. Makati now has expanded its electronic tax payment system to 13 barangays. Computers in these barangays are linked to the city hall's treasury department and have reduced the process of paying taxes to two-three minutes. Likewise, it gives taxpayers the convenience of paying real property taxes in their own barangay halls or in nearby barangays. Taxpayers need only to provide relevant information about their property and the tax due is immediately computed. INNOVATIONS AND TRANSFORMATIONS With the coming of a new year, I have a long list of programs that I can enumerate, but let me focus on just one program that is crucial to our efforts to ensure sustainable and equitable growth. This year, the city of Makati will provide tax holidays and other incentives for priority investors in the information and communication technology or ICT and business process outsourcing or BPO industries. Also on the city's priority list of investments we want to attract are retirement centers, health facilities, tourism-related and leisure facilities, heritage and cultural projects, and schools offering post-graduate studies. The move will further boost Makati's built-in advantage of having the most advanced it infrastructure and the gateway for business and leisure travelers to the Philippines. At present, 80 percent of registered call centers in the country are located in the Makati CBD. Makati is also home to digital animation and software development firms. We are also known for high-class commercial centers, and tourist establishments catering to both business and leisure travelers. Our goal is to make Makati even more competitive with the other cities by both retaining and widening our investor base. The incentives are contained in the Makati city investment and incentive code which will be tackled by the Makati city council. Under the code, businesses included in the list of priority investment areas will be exempt from paying business taxes and real property taxes for a period of three to four years. The city government is eyeing 100 percent exemption for the first year of operation. They will also be exempt from payment of local non-regulatory fees and charges, and applicable taxes, like amusement taxes. The code also allows existing Makati companies to avail themselves of the incentives by relocating their principal offices to the city, or by expanding or diversifying into any of the priority investment areas. My friends and fellow Rotarians, I have enumerated several of Makati 's major achievements for the past year. I could go on but I believe we have made the point that your city government continues to strive to maintain the pioneering status of our city – always innovating, always looking for new and better ways to be of service to our taxpayers in the community and to the country. After all, it is the taxpayer that rightfully provides the wherewithal for the services and innovations that your city government undertakes. It is therefore only right that we make taxpaying as easy as possible. In this light, i wish to announce that we will be launching at the soonest feasible time the ‘Makati honesty lane' – a window for receiving tax payments based solely on the taxpayer's declaration of the required information – no questions asked, no long lines and waiting time, no hassle! This is but another manifestation of our desire to strengthen the relationship with you in the private sector as genuine partners for growth, in order to guarantee that Makati will remain the premiere financial center of the Philippines and be recognized as the ICT and leisure capital as well. My friends, To say that we live in very interesting times is to understate the climate of fear and uncertainty that pervades today. I am sure that there are those who have all but surrendered to fear. I am sure there are some of us who are afraid for themselves, their families, their businesses. But the poet T.A. Collines offers these words: "while fear remains, my hope will yet abide." My friends, the city of Makati, I would like to believe, will overcome the challenges that are facing our nation today, as it has done so since 1986. We have struggled against bankruptcy and transformed Makati into the richest LGU on a per capita basis. We have struggled against social inequities and have succeeded in building a city with the best health and education programs in the Philippines , and where citizens are among the healthiest and most literate citizens today. We have done all of these, and more, despite the political, social, financial and man-made catastrophes that have been visited upon us since 1986. We have succeeded, because the city government and the private sector have displayed a common concern for the welfare and development of Makati. Individually we have made our mark in business, philanthropy, public service and social responsibility. And we have shown that we can achieve more collectively, and we can change more lives, if we act collectively. The city of Makati today is the best example. To quote our national hero, Jose Rizal, "ang isang tingting ay madaling baliin, ngunit mahirap ang isang bigkis na walis." a single stick is easy to break, but not a whole broom. Once again, I ask you to step beyond the confines of your corporate offices and become part of a collective undertaking. Let us build a Makati for the twenty first century, let us build a Makati for our children. Mabuhay ang Makati, mabuhay ang Pilipinas, mabuhay tayong lahat. |