The City Council, curing last Monday’s regular session, approved on first reading a proposed ordinance establishing the City Enterprise Development and Management Office (CEDMO) in the organizational structure of the city government.
The ordinance authored by Councilor Isabelo Cosalan, Jr. stated that the purpose of the measure shall be to organize a City Enterprise and Management department in the organizational structure of the city government for the development, operation and management of sustainable local economic enterprises to enhance local revenue.
Further, the ordinance shall have jurisdiction over all commercial lands, buildings, machineries, facilities and enterprises owned and operated by the city government such as, but not limited to, the city public market; the Baguio Convention Center; the city abattoir; parking lots; city government-owned residential and commercial lots or buildings leased to individuals or corporations; city public cemetery or columbarium; local public utilities; and business ventures duly approved by the city council.
Under the proposed ordinance, the CEDMO shall be a regular department in the organizational structure of the local government. It shall function pursuant to and comply with existing laws, rules and regulations. It shall hold office within the premises of the city hall with field offices at the city market area and other areas within the city deemed necessary to facilitate the discharge of its functions.
For the first 5 years, the ordinance stipulated that the revenue generated by the income by the established local enterprises shall be plowed back to the said department to form part of its annual appropriations. Any surplus after satisfaction of the budgetary needs of the said office and the department shall accrue to the general fund of the local government.
On the other hand, the ordinance stipulated that the Local Economic Enterprise Board shall serve as a review and advisory committee for CEDMO and the operation of the city government owned and operated enterprises; review the performance of the aforesaid enterprises pursuant to laws, local ordinances, resolutions and their respective approved business plans and recommend actions for the improvement of the operation of the aforesaid enterprises relative to their performance review as well as the independent audit reports.
The ordinance added that failure of the local economic enterprises to generate revenue to sustain its operation pursuant to its 5-year business plan shall be considered non or underperforming. In such case, facility utilization and post-audit shall be conducted immediately to determine if the operation of the subject enterprises shall be allowed to further operate or shall be reverted back to its mother office. Extension of the enterprise operation shall not exceed 5 years and only be possible if the particular local enterprise as projected shall realize revenue within the period of extension.
For the 2-year organizational period, the ordinance mandated the City Mayor’s Office to include the appropriation of some P500,000 annually to cover the necessary funds during the organization stage of the said department.
Within 60 days after the approval of the ordinance, the City Administrator as the lead office shall call on the offices concerned for the crafting of the implementing rules and regulations for approval by the City Mayor.
