THE BIGGER PLAN
The future is bright. The future is big. This, apparently, is how the government leaders
and development authorities of Olongapo City, the Subic Bay Freeport Zone (SBFZ),
Subic Municipality, and the rest of Zambales see the future. Grand plans are afoot to
transform their communities into new centers of modernity, growth, and development.
The Subic Bay Freeport (SBFZ) has perhaps the biggest and most ambitious
development plans underway, it being considered a pilot growth center that sets the pace
and influence direction for the satellite communities around it.
With land available for investors in the 67,452-hectare former U.S. military base becoming
scarcer, development focus in the Freeport–run by the Subic Bay Metropolitan Authority
(SBMA)–hinges largely on expanding investments and job opportunities to the outlying
local government units in Olongapo, Zambales, and Bataan.
While there are plans to reclaim land to allow the Freeport to accommodate more potential
investors, a dream shared to the media recently by SBMA administrator Atty. Wilma
Eisma, the need to share growth and development with its neighboring communities has
become more paramount. To quote Eisma, “Development in the Freeport should now spill
out to the communities surrounding it.”
In a separate press briefing, SBMA chairman Martin Diño also talked about big projects
like Port Expansion, Road Connectivity, and Airport Development.
Proposed development projects at SBMA totals PHP 140 million, which Diño says, should
greatly improve lives at SBMA and surrounds. These include the road project that will
connect Castillejos to SCTEX, the bypass road from Bataan to Cavite, and many others.
While some of these projects are still mired in controversy, still in the blueprints, or still
awaiting approval, the big picture reveals that the Freeport is indeed ready for the big
future now more than ever.
In his State of the City Address (SOCA) in July, Olongapo City Mayor Rolen Paulino also
revealed major development plans for the future.
A highlight of his presentation was the plan to convert Kalaklan Ridge into a project that
will transport it into an area that resembles the world-famous Victoria Peak in Hong Kong.
Paulino’s development focus is comprehensive, and if successful should see Olongapo
folk enjoying new infrastructure, better roads, a more efficient health and hospital system,
and more. The mayor sees a modernized Olongapo in the future, with transparency and
governance helping fuel development.
A more modern Olongapo is concretely taking shape, as Paulino revealed in his SOCA,
where he mentioned the projects of river dredging, the Gordon College oval and
swimming pool, and using modern technology to provide public service more efficiently.
Several CCTVs and LED screens have been installed in strategic areas of the city to
monitor criminality and provide quick response to public emergencies.
In neighboring Subic town, Mayor Jay Khonghun shared with media friends the recent
developments of his thriving municipality. While aspiring to be the first municipality to
receive an ISO Certification, among other things, Khonghun says there’s no stopping
Subic’s journey to cityhood.
A touchstone of Khonghun’s present efforts is the transfer of the Subic Municipal Hall to
a new location in Mangan Vaca. His government has also approved plans for a new
hospital and has inaugurated a new market for the municipality.
Perhaps no symbol of development in Subic town is more obvious than the apparent real
estate boom. Several land and property developers are zooming in to transform the
former sleepy town into a thriving hub of modern residential living.
But not only Subic is gearing up for visions of growth and development. The entire
Zambales is on the verge of widespread development with plans anchoring on tourism as
the main fuel for growth.
Talking to some media friends, including Subic Sun, before his State of the Province
address recently, Gov. Amor Deloso revealed his intention to make Zambales the No. 1
tourist attraction in the region, if not in the country.
“Tourism is the way to go for Zambales,” says the governor. “Our province is blessed with
numerous natural resources. We have the most beautiful beach areas and our mountains
and fauna should make the province irresistible to tourists. And our people are among the
most hospitable in the country.”
In fact, multi-billion peso projects are underway in Zambales but Gov. Deloso says he
won’t encourage heavy industries in the province. “Tourism is the best industry for us.”
Already several tourism projects are in the blueprint. They include efforts to make the
highest mountain in the province, Mount Tapulao, Mount Pinatubo, now favorite
destination for adventure-seekers; and the Hidden Shrine in San Marcelino, among others,
national landmarks.
The province wants to build a cable car stretching from the summit of Mt. Tapulao to the
nearby beach areas.
Infrastructure developments are also afoot. There is a plan to build in Iba the Philippine
Olympic Village, which will open job and business opportunities to residents of Zambales,
said the governor.
Former governor Vicente Magsaysay has donated 300 hectares of family land in
Barangay Rosario for a new government center for Zambales. Once completed, all
provincial buildings, including the provincial capitol, will be moved to the new government
center. Meanwhile, Deloso’s family has donated 300 hectares of land in Barangay
Bulawen for a new convention center as the meeting, incentives, conventions, and
exhibition (MICE) market in the province grows.
Modernity is expected to speed up even more once the Botolan-Capas (Tarlac) Road is
completed. Botolan is home to Mount Pinatubo, whose eruption in 1991 changed the
global climate. Besides being famous for clean, powdery sand beaches, Botolan is also
home to many tourist attractions including the Tukal Tukal Falls, Poon Bato, and
Kainomayan.
Tourism is also growing in the heretofore relatively unknown tourism destinations of San
Antonio where the coves of Anawangin and Nagsasa are drawing more and more tourists
every day.
Other important projects for Zambales include the Sta Cruz – Mangatarem Pangasinan
Road and the building of the Pundaquit Center for Music and Arts in Zambales.
EXECUTIVE ORDER NO. 249 July 25, 1987
PROVIDING FOR A NEW INCOME CLASSIFICATION OF PROVINCES, CITIES AND
MUNICIPALITIES, AND FOR OTHER PURPOSES
WHEREAS, the last reclassification of provinces, cities and municipalities took effect on July 1,
1982, and reclassification shall be effective July 1, 1986;
WHEREAS, a review of the present classification scheme revealed that around eighty per cent
(80%) of provinces, cities and municipalities will fall under the same class, thereby nullifying the very
objectives and purposes of categorizing local government units;
WHEREAS, the income classification of provinces, cities and municipalities serves, among other
purposes, as basis for fixing the maximum tax ceilings imposable by the local governments, for
determining administrative and statutory aids, financial grants and other forms of assistance to local
governments, and for the implementation of salary laws and administrative issuances on allowances
and emoluments that local government officials and personnel may be entitled to;
WHEREAS, there is an urgent need to prescribe a more realistic classification scheme that will
effectively serve the aims and purposes of establishing income categories for the local government
units;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:
Sec. 1. Classification of Provinces and Cities. Provinces and cities, except Manila and Quezon City
which shall remain as Special class cities, are hereby divided into six (6) main classes according to
the average annual income that they actually realized during the last four calendar years
immediately preceding the general classification, as follows:
(a) First class The provinces and cities that have obtained an average annual income of
thirty million pesos or more;
(b) Second class The provinces and cities that have obtained an average annual income of
twenty million pesos or more but less than thirty million pesos.
(c) Third class The provinces and cities that have obtained an average annual income of
fifteen million pesos or more but less than twenty million pesos;
(d) Fourth class The provinces and cities that have obtained an average annual income of
ten million pesos or more but less than fifteen million pesos;
(e) Fifth class The provinces and cities that have obtained an average annual income of five
million pesos or more but less than ten million pesos; and
(f) Sixth class The provinces and cities that have obtained an average annual income of less
than five million pesos.
Sec. 2. Classification of Municipalities. Municipalities are divided into six (6) main classes according
to the average annual income that they actually realized during the last four calendar years
immediately preceding the general classification, as follows:
(a) First class Municipalities that have obtained an average annual income of fifteen million
pesos or more;
(b) Second class Municipalities that have obtained an average annual income of ten million
pesos or more but less than fifteen million pesos;
(c) Third class Municipalities that have obtained an average annual income of five million
pesos or more but less than ten million pesos;
(d) Fourth class Municipalities that have obtained an average annual income of three million
pesos or more but less than five million pesos;
(e) Fifth class Municipalities that have obtained an average annual income of one million
pesos or more but less than three million pesos;
(f) Sixth class Municipalities that have obtained an average annual income of less than one
million pesos.
Sec. 3. Periods of General Reclassification of Provinces, Cities and Municipalities. Upon the
effectivity of this Executive Order and for each period of four consecutive calendar years thereafter,
the Secretary of Finance shall reclassify all provinces, cities, except Manila and Quezon City which
shall remain as Special class cities, and municipalities, on the basis of the foregoing schedules of
the average annual income of each province, city or municipality derived during the last four
consecutive calendar years immediately preceding such reclassification according to the provisions
hereof; Provided, That the first classification under this Executive Order shall take effect on July first,
nineteen hundred and eighty-seven: Provided, further, That a province or city or municipality which
has been in existence for a period of less than four full calendar years immediately preceding the
classification herein provided shall be classified on the basis of its average income during such
lesser number of full calendar years or year immediately following its organization as such province
or city or municipality; And provided, finally, That no readjustment of classification shall be made
oftener than once in four consecutive calendar years after the first general reclassification provided
for herein, except in cases of diminishing revenues when the Secretary of Finance may order at any
time the readjustment of the classification of any province of city or municipality in accordance with
the income ranges herein prescribed.
Sec. 4. Definition of Terms. As used in this Executive Order:
a. The term "annual income" shall refer to revenues and receipts realized by provinces, cities
and municipalities from regular sources of the local general and infrastructure funds including
the internal revenue and specific tax allotments provided for in PDs 144 and 436, both as
amended, but exclusive of non-recurring receipts, such as other national aids, grants,
financial assistance, loan proceeds, sales of fixed assets, and similar others.
b. The term "average annual income" shall refer to the sum of the "annual income" as herein
defined actually obtained by a province, city or municipality during the required number of
consecutive calendar years immediately preceding the general reclassification of local
governments, divided by such number of calendar years, as may be certified to by the
Commission on Audit for purposes of such reclassification of provinces, cities and
municipalities.
Sec. 5. Uses of Income Classification of Provinces, Cities and Municipalities. The income
classification of provinces, cities and municipalities shall, among other purposes, serve as basis for:
a. The fixing of the maximum tax ceilings imposable by the local governments;
b. The determination of administrative and statutory aids, financial grants, and other forms of
assistance to local governments;
c. The establishment of the salary scales and rates of allowances, per diems, and other
emoluments that local government officials and personnel may be entitled to;
d. The implementation of personnel policies on promotions, transfers, details or secondment,
and related matters at the local government levels;
e. The formulation and execution of local government budget policies; and
f. The determination of the financial capability of local government units to undertake
developmental programs and priority projects.
Sec. 6. Maximum Amount Expendable for Salaries and Wages. The total annual appropriations for
salaries and wages of provincial, city and municipal officials and employees for one calendar year
shall not exceed forty-five per cent (45%), in the case of all first and second class provinces, cities
and municipalities, and fifty-five (55%), in the case of those lower than second class, of the total
annual income actually realized from regular sources during the next preceding calendar year or the
current calendar year estimates from the same sources certified as collectible by the provincial or
city treasurer concerned, whichever is lower, the appropriations for salaries and wages of officials
and employees in the public schools, hospitals, health and agricultural services, public utilities,
markets and slaughterhouses and other economic enterprises owned, operated and maintained by
the province, city or municipality, as well as representation and emergency cost-of-living allowances,
shall not be included in the computation of the maximum expandable for salaries and wages.
The Secretary of Finance, however, may recommend to proper authority the setting aside of
appropriations in excess of the percentages hereinabove fixed subject to such conditions as may be
imposed but in case shall the exceed in appropriations for salaries and wages be more than twentyfive per cent (25%) of the maximum expendable amounts nor shall such exemption be granted in
case of overdraft or imminence thereof.
Sec. 7. Special Provisions. Provinces, cities or municipalities whose income classification shall have
been raised or reduced pursuant to the provisions of this Executive Order shall accordingly revise
and adjust their existing position classification and pay plans in accordance with the pertinent
provisions of prevailing circular issued by the joint Commission on Local Government Personnel
Administration created under PD 1136; Provided, That no official or employee in the local
governments shall suffer any diminution of the basic salary rate that he is actually receiving at the
time of the effectivity of this Executive Order.
For purposes of the preparation and authorization of local government budget for CY 1988, the
regular appropriations for salaries and wages in the General and Infrastructure Funds of the Local
Governments shall be commensurate only to the salary scales and rates of allowances, per diems
and other emoluments of local government officials and personnel corresponding to their respective
new classifications. However, additional appropriations shall be set aside to cover in full any
deficiency that will be necessary to maintain the payment of basic salaries at the rates actually being
received by local government officials and personnel at the time of the effectivity of this Executive
Order.
Newly appointed or promoted personnel shall receive salaries at rates authorized for new
classification of the local government unit.
For proper implementation of these special provisions the joint Commission on Local Government
Personnel Administration shall, within sixty (60) days from the effectivity of this Executive Order,
issue appropriate guidelines and procedures for the information and guidance of the local
governments.
Sec. 8. Maximum Rates of Local Taxes. Notwithstanding any change in income classification by
virtue of this Executive Order, any province, city or municipality may maintain or adjust accordingly
the existing rates of local taxes: Provided, That any local tax ordinance enacted for the purpose shall
be subject to the review and approval of the Secretary of Finance who, within sixty (60) days from
receipt of the ordinance, shall determine the reasonableness thereof and its effect on the finances of
the local governments.
Sec. 9. Administrative Authority of the Secretary of Finance. The Secretary of Finance shall have the
authority to review the income ranges herein provided at least once every four years after the
implementation of this Executive Order and recommend such appropriate changes or revisions to
the proper authority in order that the income classification of local government units may continue to
conform with prevailing economic conditions and the overall financial status of the local
governments.
Sec. 10. Implementing Rules and Regulations. For purposes of implementation of this Executive
Order, the Secretary of Finance shall issue such rules and regulations as he may deem necessary
and appropriate Department Orders fixing the new classifications of provinces, cities and
municipalities.
Sec. 11. Repealing Clause. Presidential Decree No. 465, dated May 20, 1974 is hereby repealed, all
laws, orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order
are hereby repealed or modified accordingly.
Sec. 12. Effectivity. This Executive Order shall take effect immediately.
Done in the City of Manila, this 25th day of July, in the year of Our Lord, nineteen hundred and
eighty-seven.