We should note here, nonetheless, that amusement tax registered negative 10.19% in 2002 owing to the fact that the city council enacted an ordinance reducing tax rates from 30% to 15% for local movies, 30% to 10% for live performance of foreign artists and from 30% to  a mere 8% for local performing artists.

From the standpoint of sound governance, the Belmonte administration considered the following as the most critical problems that confronted the city government upon assumption into office:

1. A negative P10-million general fund position

2. Low revenue generation

3. Dissipation of revenues due to corruption

On this score, we opted to innovate rather than procrastinate.

The first order of business was fiscal restraint. Apparently, the 2001 budget of P4.7-billion was ambitious and could not possibly be matched by revenue collection that chances of incurring a shortfall of P970-million could be incurred. By adopting stringent belt-tightening measures, however, we managed to reduce the budget gap to less than P100-million that within the first year of incumbency, the Belmonte administration wrote-off P900-million of its inherited debts while it kept apace with current obligations.

The Belmonte administration stuck to its practice of:

1. Exercising prudence by making sure expenditures fall within given budget

2. Validating all claims for payment, and

3. Applying strictly all laws, rules and regulations promulgated by the Commission on Audit.

The new administration made sure that all bidding and canvassing procedures resulted in least-cost alternatives that matched that of the most competitive prices found in the market producing quality goods and services. The policy applies to contractors and suppliers with the view of cutting down cost by an average of 22%. To our amazement, cost cut registered a maximum of 88% on some items on previous cost.

A no-nonsense monetary policy isn't all that easy, though. Especially when it involves reducing the number of casuals on the payroll. But it had to be done. No use paying good tax money on personnel who don't do much to serve the people.

All bad practices had to stop. So much so, we penalized persistent delinquent taxpayers by offering their properties on the auction block. we also formulated systems that minimized the dissipation of revenues brought about by some corrupt practice that, in the process, we uncovered the group of persons  issuing fake receipts. The culprits are now facing charges before the Office of the Ombudsman.

Another novel idea introduced into the system was the cross-checking of transfer tax payments with the Registry of Deeds. Hereabouts, we hit pay dirt. We found out that 58% of those transactions were spurious. Corrective and fail-safe measures had been adopted and are now in place.

Letters had been sent out to taxpayers possessing bogus documents with the end in view of rectifying the records. The response to validate and straighten out public documents had been overwhelming.

Without doubt, a conscientious effort to raise taxes invoking the laws, on the one hand, and showing compassion, on the other, proved to be a bonanza for the government.

So while we are strict on tax cheats and dodgers, we are lenient on those who are willing to pay taxes without reservations - 10% to 20% discount to those paying annually; 5% to  10% to those paying quarterly. Add the fact that we have built a taxpayers lounge for the comfort and convenience of taxpayers, no doubt citizens realize that revenue-generation is not all about money, but public service.

With utter pride and humility, and by the good graces of God Almighty, Quezon City now stands as the richest city in the entire country. No, we are not making that claim. It's an honor conferred on our beloved city by the Commission on audit. And that means we have to work harder, not rest on our laurels.

(Signed)

VICTOR D. ENDRIGA

Treasurer

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