STATE OF THE CITY ADDRESS 2014

HON. MAYOR BELEN T. FERNANDEZ

Distinguished guests,
Fellow public officials,
Beloved Dagupeos,

Good morning!

Parad sikayoran kabaleyan ko, pi-awat yo so ampeta-petang ya panangarok tan maliwliwawan
kabuwasan ed sikayon amin!

Allow me to start by congratulating certain sectors of our society for making 2013 a successful
year worth remembering.

The Dagupan Peoples Council:
For a well-attended city fiesta that will long linger in the memory of Pawil Dagupeos!
For bringing back the spirit of civic service and pride of place!
For reminding old-timers of the city of our birth!
For inspiring the new generation of Dagupeos to claim proudly this city of their dreams!

Thank you, Hermano Mayor Kuya Ope Reyna, for a job well done!

As we remember the triumphs and challenges of our first year in office, let me to start by giving
thanks to the Lord Almighty, having spared our beloved city the wrath of Typhoon Yolanda. We
will continue to include those who have been affected in our daily prayers for their fast recovery.
Together with our sincere sympathy for their losses, I wish to inform you, my compassionate
fellow Dagupeos, that our city contributed the amount of P500,000.00 for the victims, the little
that we could spare while we, ourselves, were in the midst of a local financial crisis during my
first 100 days in office, the longest political journey of my life as a public servant, beginning as a
councilor in 1995, then the vice mayor in 2007, and now your servant-mayor in 2013!
A. CASH FLOW ANALYSIS
Now, for the financial condition of our city, let me begin with our CASH item:
Having endured our own financial typhoon, I wish to report to my fellow Dagupeos that by the
close of 2013, our Citys Consolidated Cash position, which includes the Trust Fund and the
School and Educational Fund, stands at P282.2M as per our Audited Balance Sheet, more than
the previous year of 2012 by 106.9 million pesos or 163% more! You may recall that our
General Fund Cash Flow from Operation when I assumed office last July 1 was a low P66.4M
as per report of our Citys Financial Managers, and a high of P129.7M by years end as shown
in our CASH FLOW ANALYSIS.

B. BUDGET VS. EXPENDITURES ANALYSIS

In reality, however, records show that the budgetary appropriation at the beginning (January
2013) already indicated a deficit of P37.1M continuing until June. When I took office in July, this
budgetary deficit was reduced to P11.130M. Thanks to our revenue-generating effort, combined
with our robust expenditure-cutting, we were able to attain a budgetary surplus of P29.782M by
October. Still weighed-down by previous years, with 2012 expenses charged against the 2013
budget, we managed to end with P3.882M by December of 2013, smaller than the October
surplus, but better than a deficit!



It should be noted that those budgetary deficits running for 9 months ate up a portion of the
P119M proceeds from the sale of the MC Adore Building! But because of the financial reforms I
instituted in my administration starting in July, we were able to return the portion eaten up and
even produced a budget surplus by October until end of December 2013!





How we are able to turn around an abused budget from the very beginning of 2013 to a surplus
by the end of the year, join me in reviewing the result of operations for the year ended 2013.
A. OPERATING REVENUES
We begin with revenue from operation:
For this purpose, I will cite revenue increases of 10% and over. I need not mention increases
lower than that to shorten my report.
1. Business Tax during my term, from July to December 2013 amounting to P36.4M,
registered an increase of P4.3M or 13% over the previous administration for the same
period in 2012! This was due to an improved collection system which I initiated involving
the Market Division, the One Stop Business Center, and the whole Treasury
Department.

2. Tax on Delivery Trucks and Vans also registered an increase of 73% over the period
July to December 2013 against the same period in 2012!



3. Fines and Penalties under our Local Taxes likewise registered an increase of 26%!

4. Fishery Rental Fees registered an increase of 45%!


5. Registration Fees registered an increase of 38%!

6. Income from Markets registered an increase of 20%. If you recall, during my first 100
days, collections from market operations registered a whopping 300% increase. This is
because of the reforms I personally instituted covering all market collections! As I said
before, our 100-day experience shows that a low performing department, if properly
supervised, can increase its revenue generating capacity without increasing any taxes!




Other revenue accounts registered increases and decreases, but overall our CONSOLIDATED
TOTAL OPERATING INCOME amounted to P597.6M as of yearend compared to that of the
previous year at P559.3M only!

B. OPERARTING EXPENSES
Side by side with our drive to increase revenues, we undertook radical surgery to reduce our
expenses.
1. Overtime Night Pay decreased by P2.17M or 53% over the same period.







2. Consultancy decreased by P3.9M or 52% due to an already exhausted budget balance
at the end of May 2013, prior to my officially taking over as Mayor.

Consequently, this administration resorted to budget reversals and re-alignments and
supplemental budgets to cover the expenditures from July to December 2013. The decrease
significantly reduced the headcount & contracted fees for technical & advisory services from
July to December 2013 as compared with the same period last 2012.

3. Other Professional Services decreased by P14.7M or 35%. The decrease was due to
the significant reduction of emergency workers and other contracted services.
Consequently, this administration had to resort to maximizing the productivity of the
remaining workforce to deliver the same workload/ if not better their performance!

4. Local Travelling Expenses decreased by P293,000.00 or 16% because effective
programming and management of priorities on travel as part of departmental wide cost-
saving measure.

5. Foreign Travelling Expenses decreased by P1.87M or 75% for the same reason as
item two.


6. Training Expenses decreased by P799,100.00 or 26%, as a result of cost-saving
measures.


Nevertheless, numerous Enhancement Trainings were conducted locally at minimum charges to
maintain the department or agencys thrust for development & barangay council empowerment.

7. Office Supplies Expense decreased by P1.7 M or 33% in contrast with the increase of
P1.2M or 28% incurred by the previous administration for the same period last year.








This is mainly due to limited budget balances upon my assumption of office. Accordingly, I
implemented cost-saving by directly buying from procurement services endorsed by the DBM
depot in line with the full implementation of R.A. 9184 for the last 2 quarters of 2013!

8. Animal and Zoological Supplies expense decreased by P73,000.00 or 100% because
of an exhausted budget balance by the previous admin!



9. Medical, Dental and Laboratory Expenses also decreased by P735,000.00 or 58%!

10. Gasoline initially decreased by P535,900.00 or 9% due to the implementation of cost-
saving measures.
Included in the 2013 expense total is P1,649,000.00 carry over from the first semester
incurred by the previous administration. Adjusting for this the decrease would then be P3.8
M or 52 %!

11. Water, although registering an increase of P860,900.00 or 43%, included P1,358,077
incurred by the previous administration which was charged against my July to December
2013 period.

Adjusting for this carry over, water expenses for July to December 2013, actually decreased,
and not increased, by P497,146.71 or 24.7% against the same period in 2012!

12. Electricity increased in 2013 by P14,699,296.45 or 107% during July to December
2013, but included payments covering May to June 2013 amounting to P9,395,026.18.




Adjusting for this carry over, the net increase incurred by this administration for the comparative
period is actually 38.5%, while the previous administration incurred an increase of 62.5% (and
not 27%)!




13. Donations decreased materially by P19.4M or 93% compared to the same period in
2012 because of my decision not to continue financial assistance to various NGOs as
practiced by the previous administration,/ which gave away financial aid amounting to
P10M plus such as those given to Fiesta organizers!

Moreover, the bulk of Donation Expenses from July to December 2013 were given directly to
indigents and DSWD-related activities for poverty alleviation and community care.

In summary, the plusses and minuses in both the Revenue and Expenditures account resulted
to a Net Cash from operating activities, based on the General Fund Consolidated Statement of
Cash Flow, amounting to P129.7M and a cash amounting P254.1M as of December 31, 2013.

Thus, it was possible by last years end to reward our Team Balon Dagupan with a bonus over
and above the 13
th
month pay. This, according to our City Auditor, is the first of its kind in
Region I, a cause for celebration indeed! As a result, our preparation for our yearly City Fiesta
took off with more energy and gusto by participating City hall employees! Together with our
Civil Society Leaders, the 2013 City Fiesta was a very successful affair, given the modest
financial resource they themselves generated and will linger long in the heart and minds of our
visiting PAWIL DAGUPEOS!

BRINGING GOVERNMENT CLOSER TO PEOPLE

Lest we forget, allow me also to briefly recall our achievements in SOCIAL SERVICES for year
2013.
On SOCIAL WELFARE & DEVELOPMENT & NUTRITION, we have the following:
1. Project B.E.L.E.N. or the Better Education for livelihood and Employment Needs
Program, which is a new program in coordination with TESDA that benefitted 20
students for 2D animation. In addition, we trained another 40 under our Cash 4 Training
Program.

2. For Child and Youth, this administration registered an increase in all plans and
programs shown below.


3. As for our Crisis Intervention Center, the number of Children in Need of Special
Protection decreased because of better advocacy!
4. Meanwhile, our ERPAT/FDS and Sustainable Livelihood Program showed an
increase. We trained carpenters with funding support from Congresswoman Manay Gina
De Venecia. We also provided shelter for 113 families with funding support from the
National Housing Authority. Our PANTAWID PAMILYA PILIPINO PROGRAM
beneficiaries now bloomed to 3,434 from 2,229 figures of 2012.

5. Furthermore, we conducted a massive livelihood campaign in every barangay under
Project B.E.L.E.N. covering 148 participants, including Basic Business Management
Training for 60 women. We also converted a non-productive building occupied by a
foreigner for free under the previous administration, which was clearly a disadvantage to
the city, to a Livelihood and Productivity Center or our Skills Training Center.




6. With all of these, we have not forgotten persons with disabilities. All programs,
projects and activities under our STAC-TDC registered significant increases in terms of
beneficiaries covered.


7. For Senior Citizens, we sponsored eye screening and supported cataract operations
covering 96 patients since July 2013! I believe our senior citizens are here. Please rise
to be acknowledged. Palakpakan po natin sila.




8. Disaster mitigation also remains to be one of our primary concerns. We provided
emergency relief for 28,361 victims of Typhoon Maring with support from 45 participating
NGOs, including the Pangasinan Medical Society, the Inner Wheel Club of Dagupan,
Rotary Clubs, and many others. We likewise received great support from our good
Congresswoman Manay Gina de Venecia, DILG Secretary Mar Roxas, and the DSWD.


9. Whats more, we continue to support solo parents by way of ID insurances and/or
certificates.


10. I am also glad to report that Trainings, Seminars and Projects on Nutrition registered
various increases in many of its programs, this in partnership with private companies like
Unilever Philippines, Mead Johnson Philippines, Kabisig ng Kalahi, Inner Wheel Club of
Dagupan headed by Dra. Arlene Sanchez, and the Pangasinan Medical Society headed
by Dra. Betha Fe Manaois-Castillo, which won the highest nutrition award given by the
Philippine Medical Association better known as the Icasiano Award. A warm round of
applause for PMS.
Moreover, the DSWD Regional Office sponsored a six-month feeding program covering 2,522
Day Care pupils.

11. To better assist our underprivileged families, livelihood projects were conducted for
mothers of malnourished children.

Following closely in support of our Social Service are the PUBLIC SERVICES delivered until the
yearend of 2013. These are:
A. THE ESTABLISHENT OF THE CITY ACTION SERVICES TEAM OR CAST
Newly created to respond quickly to social problems, CAST provides the link to other
departments in order to deliver the necessary service to those in need. Accomplishments of
CAST for 2013 include:
Granting of financial assistance through the Region I Medical Center
Decrease in the processing time of tricycle franchise stickers from eleven months to only
20 minutes
Zero graft and corruption on granting and renewal of tricycle franchise
Establishment of an OFW desk. We set this up to protect Dagupeos who will be
working abroad, making sure that they do not fall victim to illegal recruiters. As of today,
we have already rescued 5 OFWs, for which we are thankful to POEA, OWWA and
DOLE for their quick response in helping our distressed OFWs.
Likewise, CAST continues to assist job seekers for employment abroad.

B. For services from the CITY HEALTH OFFICE, we had:


Medical and Dental Missions, with which 24 Medical-Dental Missions conducted in 17
barangays for the 2
nd
half of 2013 resulted to 13,603 beneficiaries of Medical and Dental
services compared to 1,258 for the entire year of 2012 registering an increase of 981%.

For Senior Citizens, we had Panangaro kinen Bai tan Laki, a focused health care
program for the elderly addressing degenerative and chronic illnesses affecting our
senior citizens. It commenced in July 2013 at a bi-monthly schedule that already
benefited more than a thousand in the end of 2013 compared to the same period in 2012
which only registered around 100 patients in terms of free blood tests, free consultation
and medicines and various vaccinations.


As an accredited PhilHealth Benefit Package Provider, the City Health Office has
catered to 8,213 members and dependents of the National Housing Targeting System
Poverty Reduction and 4Ps beneficiaries and LGU enrolled Philhealth members at
the City Health Office. An increase of 37% availment was noted for 2013 compared to
2012 for Out Patient Department availing of free medicines, laboratory examinations and
other obligatory services.











One of the important outcomes that resulted from the barangay consultations conducted
by my office and the City Health Office was the massive information campaign on
chronic disease awareness and the availability of free drugs and medicines in support of
indigent patients suffering from common non-communicable diseases, namely
hypertension, diabetes, asthma, and high cholesterol, among others. Hence, continuous
treatment was ensured and dramatic increase in the number of beneficiaries was noted,
thanks to the support of national agencies like the PhilHealth, Department of Health, and
DSWD.




Furthermore, the enrolment of 122 pregnant mothers during the last quarter of 2013
under the PhilHealth Sponsored Program attests to the advocacy of the present
administration and the medical community that all pregnancies are risk pregnancies and
need to be delivered in hospitals and/or birthing clinics to attain ZERO maternal deaths
in the City of Dagupan. This initiative, in coordination with PhilHealth, increased Facility-
Based Deliveries, or births in hospitals and birthing clinics, of pregnant mothers from
67% in 2012 to 80% by the end of 2013. I dare say with confidence that in Balon
Dagupan:
No sibling should lose a brother or a sister, and a mother her child.

In the area of Communicable Disease Control, free rabies vaccination for animal bites
(dogs, cats, etc.) has considerably increased by 223%, with this not attributed to more
animal bites/ but to increased availability of anti-rabies vaccines in accordance with my
program free medicine for all.

Furthermore, early child care and safe motherhood shall be the mainstay of preventive
and promotive programs, preventive dental care and other programs to control
communicable and non-communicable diseases.

C. On our POPULATION MANAGEMENT, we have conducted various activities
addressing the needs of our growing population. These are:

Regular Marriage Counseling Clients increased by 12 or 1.49%!

Mothers class, which increased by 56.9%!

ADOLESCENT Health & Youth Development Program, which also increased by an
outstanding 615%!


Mass Weddings
And Responsible Parenting Seminars

D. For SECURITY, the PNP for the period January 2013 up to Apri l 2014 apprehended 146
persons for illegal drugs, 28 for illegal firearms and 104 wanted persons. We have also
established the B.E.L.E.N. 911 for emergencies and urgent concerns.
For these reasons, I was not surprised when we received the following recognition for our
beloved city:
1. The Most Outstanding Mayor from the Dangerous Drugs Board.
2. The Seal of Good House Keeping from the the DILG
3. A National Award of Recognition for the Department of Educations Adopt a School
Program
4. An Outstanding Pangasinan Achiever Award during the PACEBOOK 2013 Annual
Awards ceremony. PACE, by the way, stands for Pangasinan Association of Columnists
and Editors.
All these augurs well for Dagupeos, who can now stand proudly for their beloved BALON
DAGUPAN! Garnering a national recognition required the full support of dedicated public
servants toiling ceaselessly. To their credit, may I call on Team BALON DAGUPAN to
receive from our Fellow Dagupeos their fitting reward: A WARM APPLAUSE!
We have learned many lessons from 2013, which now give us more discipline and courage in
facing the more challenging 2014!
BUILDING THE FUTURE
Fellow Dagupeos, SOCIAL SERVICES will continue to receive our primary attention. For
2014, we have budgeted 183 million pesos or 3% more than 2013.
From January to mid-May of this year alone, we already have accomplished the following:
UNDER ALAGANG BALON DAGUPAN:
A Surgical-Medical Mission with UST Medical Mission, Inc., Region 1 Medical Center,
Dagupan Doctors Villaflor Memorial Hospital, and Pangasinan Medical Society.
Nutrition programs with Unilever, Mead Johnson, Kabisig ng Kalahi, Department of
Education, Pangasinan Medical Society, Inner Wheel club of Dagupan, and the CSI
Group of Companies
Cancer check-up and screening with the Pangasinan Medical Society
MOA Signing with the Church of Jesus Christ of the Latter Day Saints for wheelchair
distribution program
Screening of hearing-impaired children for distribution of hearing aids
Distribution of wheelchairs and nebulizers with Dr. Ashok Vasandani
And health care for pregnant mothers

UNDER CHILDREN EDUCATION, WE HAVE:
The accreditation of Day Care Centers by the DSWD for the first time
The improvement and repainting of Day Care Centers
The Recognition Day of Day Care Pupils
The annual Childrens Congress with DepEd
And the Gulayan sa Paaralan still with DepEd

FOR OUR CULTURE AND ARTS PROGRAMS:
The Culture and Arts Office inauguration and programs
UNDER SPORTS DEVELOPMENT:
THE BTF D.O.E.S IT or Building the Future: Developing Our Excellence in Sports
Program

FOR OUR NUTRITION PROGRAM:
We trained 64 trainers/ leaders for the infant and young child feeding trainers

Doing so brings the City Government closer to our people!
For PUBLIC SERVICES, we continue to ride on the gains we garnered in 2013. We now have
budgeted the amount 237 million pesos or 18% less than 2013. Already, we have accomplished
the following this January to mid-May of this year. Some of which are:
IN THE AREA OF DISASTER PREPAREDNESS:
Disaster preparedness seminars conducted in barangays with the City Disaster Risk
Reduction and Management Center
Turn-over of the new dredging machine from DPWH (Water Master III)
Start of dredging operations
Formal opening of the Public Alert and Response Management Center or PARMC
Free life skill swimming lessons toward a drown-free city for 6,000 children
And seminar on the Rapid Earthquake Damage Assessment System or REDAS

UNDER WASTE MANAGEMENT, WE HAVE:
The wrappers to pavers program in coordination with DepEd and
Unilever Philippines
The MOA signing and partnership with Procter&Gamble and Sure
Global W2W1 for waste to worth project
And the zero-waste initiative

FOR CAPABILITY BUILDING AND IMPROVEMENT OF BUREAUCRACY, WE HAVE:
The weekly flag ceremony with a report to all city employees for transparency and
accountability
A live executive session every Monday for reporting plans and accomplishments as part
of the LGU's commitment of transparency, accountability, and good governance
Seminars on Barangay Annual Budget for Fiscal Year 2014 with the City Mayor's Office,
the City Budget Office, and the DILG
Seminar on Strategic Performance Management System (SPMS) with the Civil Service
Commission
The Barangay Empowerment Seminar with PNP, DILG, City Budget Office, City
Planning and Development Office, and other departments and government agencies
And the NEO or Newly-Elected Officials Seminar

This 2014, we have budgeted P162M for ECONOMIC SERVICES or 16.1% more than 2013.
Our accomplishments for January to mid-May of this year include:
UNDER SA ILOG KO, MAY PAGBABAGO:
The Regional Bangus Summit
The Deputy Fish Warden Training
Fisherfolk Registration with BFAR
One Barangay, One Fish Program and distribution of fish cages and fish species for
indigent fisherfolks
The payao project for fisherfolks
And dialogues with the Samahan ng Maliliit na Mangingisda sa Dagupan and the Ulopan
na Sumisigay ed Dagupan livelihood project proposals
FOR OUR ONE STOP SHOP, IT RECENTLY RENEWED ITS ISO CERTIFICATION AND
CONDUCTED THE FOLLOWING:
Meeting with bookkeepers for faster processing time
Faster delivery of services in accordance to ISO certification to less than 30 minutes

FOR TOURISM AND LOCAL INDUSTRY:
The Island Tours will also be launched soon, together with the Product Center and the
Seafood Festival in October.
The Rimat T Amianan will likewise showcase the products of the Region I.

FOR OTHER ECONOMIC SERVICES, WE HAVE:
Consultation with transport groups for the improvement of traffic
Reduction of colorum PUVs
Consultation on loading and unloading areas
Enforcement of the use of pedestrian lane
Consultation with the LTFRB

And for electricity and water expenses, we have budgeted P45M or 15% more than 2013.
In summary, our BUDGET for 2014 amounts to P628M or 16% more than 2013.
To support our BUDGETARY REQUIREMENTS, we have identified the following as REVENUE
SOURCES:

Around P329.5M or 52% will be derived from the Internal Revenue Allotment or IRA. From a
high revenue share of around 70-75% percent a few years ago, we have broken the 50 percent
barrier, a result of our solid determination to gradually break free from our heavy reliance on the
IRA share for our developmental undertakings. P104M or 17% shall come from Operating
Miscellaneous Revenue, and P194.5M pesos or 31% from Local Taxes.
I am happy to report also that our Annual Investment Program or AIP by Sector amounts to
P650M and is broken down as follows:
The General Public Services Sector comprises 36%; the Social Services, 32%; Economic
Services, 25%; and Other Services, 7%.These shall all be funded from the GENERAL FUNDS.




Beyond 2014, we have programmed projects that will require investments from the National
Government and the private sector. These are contained in our Local Development and
Investment Plan.


These are summarized as follows:
A. Social services 11 projects
B. Economic services 5 projects
C. Infrastructure support 11 projects
D. Environmental services 4 projects
E. Institutional project 1
All of the 32 projects are collectively worth P218 pesos.





Thus far, we have completed numerous projects already as of May 2014. To mention a few:
Lightings for Pugaro and different barangays
Malimgas Market Improvement
Rehabilitation of Day Care Centers
Rehabilitation of Comfort Rooms
Rehabilitation of concrete sidewalk at Malued Dist.
Construction of Cross Drain Crossing along Don Proceso Bautista Rd., Lucao
Repair and Improvement of Stalls at the Malimgas Market
Installation on Gutter and Concreting at the same Market
Improvement of the City Museum
Improvement of the City Health Office
Restoration Plan of Mc Arthur Park
Improvement of the covered courts of Lucao, Bacayao Sur and Bacayao Norte
Improvement and Landscaping of Childrens Park
Repair of Comfort Rooms at the City Plaza and the Peoples Astrodome
Repair of the Mayors Pavilion
Repainting and Repair of Poolside Waterline System and Flood Lighting
Improvement of Herbal Ecological Reusable Organic (HERO) Building
Installation of Deep wells in Longos, Bonuan Boquig
Perimeter Fence at East Central Secondary Integrated School, Mayombo
Repair of various Elementary Schools (Mayombo, Mamalingling, Bacayao Norte, Bacayo
Sur, Lucao, Poblacion Oeste, Pugaro Suit, Bonuan Boquig, Bolosan, Lasip Chico,
Carael)
Repair and improvement of streetlights in various places in Dagupan
THE FOLLOWING PROJECTS ARE ONGOING:
Construction of Senior Citizen building at the City Plaza
Construction of Product Center building at the City Hall
Upgrading of PCC Pavement and Drainage System along Millora and Sapitan Road in
Barangay Lucao
Repair and Rehabilitation of the Galvan Market
MRFs for various Barangays amounting to 6 million pesos.
OUR UPCOMING PROJECTS ARE AS FOLLOWS:
Proposed Reconstruction of One Stop Shop Business Center at the City Hall
Proposed Construction of a two-storey building with 10 classrooms at Juan P. Guadiz
Elementary School, Poblacion Oeste and Carael Elementary School
Proposed construction of a multipurpose hall at East Central Integrated School and
North Central Elementary School
Proposed Construction of Evacuation Building in Salapingao under the 2015 Grassroots
Participatory Budgeting Process Program (formerly the bottom up budgeting process)/
Rehabilitation of the Magsaysay Market
Proposed upgrading of PCC Pavement along Reyes St.
All these were made possible through your taxes!


Implemented together, these 32 projects of the 2014-2016 Local Development & Investment
Plan with that of the 2014 Annual Investment Plan, will undoubtedly ensure the social and
economic well-being of Dagupeos, visitors, and corporate entities doing business in the City.
For the 1
st
quarter of 2014, allow me to give you a quick glance on how we fared financially
compared to the same period in 2013 under the previous administration.
Excluding the sale of MC Adore amounting to P119M our Budget Officer computed the
following:
From a budget deficit of P37.1M in January 2013, we registered a budget surplus of P49.6M or
an increase of P86.6M or 233% for the same month this 2014!

From a budget deficit of P3M in February 2013, we registered a budget surplus of P81.3M or an
increase of P84.4M or 277% for the same month this 2014!

From a budget deficit of P22.2 in March 2013, we registered a budget surplus of P80.8M, or an
increase of P103M or 465% for the same month this 2014!






As may be noted, the continuous delivery of social and public services and even the financing of
capital expenditures would not have been possible during the 1
st
quarter of 2013 as shown by
the successive budgetary deficit! In fact, as mentioned earlier in my speech, this budgetary
deficit extended all the way to September of 2013. Operations were made possible only
because the previous administration was eating up a portion of the P119M MC Adore sales
proceeds to fund these deficits without any approved supplemental budget. Precisely, if the
intention of the previous Administration was to source a fund for their overspending and
misspending, then they should have sold the MC Adore Hotel at a price higher than P119M!

Precisely too, that was my point when then as Vice-Mayor, I refused the original offer of P68M
(or net of P55M after deducting selling and tax expenses), then P75M, and finally the P119M by
the Cabangon-Chua group./ As per advice by expert appraisers,/ the land alone could fetch a
good price of no less than P33,000.00 per square meter. At 5, 113 square meters, the land
could easily fetch P168M! The 5-storey building measuring 14,100 square meters at P10,000.00
per sq. meter would also fetch another P141M! Adding up, a minimum of P310M or say P300M
for the entire lot and building should have been the selling price!

Hence our position that the sale of the MC Adore Building being grossly understated was
disadvantageous to the City!

The budgetary deficit is so obvious and largenot a P1,000 thing, but a hefty P30M in the
beginning and although dwindling, lasted for about 9 monthsit almost brought down the city to
its knees! More obvious now, the hasty sale of MC Adore hotel was designed to cover the
budgetary deficit. And to meet many unpaid obligations,/ such were pushed back towards the
end of the year 2013 affecting my term. Clearly obvious now was the fact that these 2012
obligationselectricity and water bills foremost and dubious payroll expenses, which remain
unpaidwould have consumed the entire P119M proceeds from the sale of MC Adore had they
not been charged to the 2013 budget. Then Dagupan would not only have a budgetary deficit
but default on its obligations!
In the recent conference I attended in Sri Lanka hosted by the World Bank, as lone delegate
from the Philippines, I addressed other Mayors from the South Asian Region Emerging Cities
about the hazards confronting Dagupan. By the way, the title of my report was A MIDGET CITY
CONFRONTING THE DEVIL AND THE DEEP BLUE SEA.
I pointed out that a Magnitude 8 earthquake, tsunami or a dam break could easily devastate the
city. Confronted with these, I could not help but think of the MC Adore as an ideal Vertical
Evacuation Center, it being five storey high, unshaken by the killer quake of 1990. MC Adore
Hotel could easily accommodate 10, 000 people in the remaining 3 floors, even if a 7 meter
Tsunami wave will engulf the first two floors of the building.
This realization had firmed up my resolve to capture back the MC Adore Hotel: not only because
it was undervalued, but even more, we need it as a Vertical Evacuation Center in case of a
tsunami requiring a 14-minute response time as advised by PHIVOLCS officials.
Let me say clearly now that my action:
To stop paying dubious Payroll Expenses was right
To immediately cut other unnecessary expense such as gasoline, office supplies, and
excessive overtime pay, among others was right!
To strictly enforce cost-cutting and revenue raising measures was right!
That discontinuing some dubious projects such as the Tsunami Hill and the Maternal
Lying-In Clinic was right!
All together, these measures I instituted immediately when I assumed the helm is, with all
humility, what saved Dagupan City from sure bankruptcy!/ Call it the transformation challenge, if
I may!
But because our revenue and cost-cutting measures were successful, we were able to wipe out
all those unpaid obligations, with a bonus to wit, a budgetary surplus by the end of 2013!
As to the obvious anomaly behind the sale of MC Adore, the City will continue to stand by the
findings of the court, and the opinion of the late DILG Secretary Jesse Robredo, and also of the
RTC Dagupan that it was null and void from the very beginning. Yes, we will fight it out in the
court if we must! As to how the anomaly was perfected, I prefer to discuss this during the press
conference following after my SOCA. If only the proper bidding process was followed diligently,
the City could have gotten a better price from duly accredited competing bidders. We will also
continue to fight for the recovery of the money paid out for the overvalued AWAI Property. On
top of these issues, the River Cruise left in its wake P10M, more or less, for gasoline and
maintenance expenses only to find out that the boats were not owned by the City. Its sad to
report to you that the P10M million pesos cannot be recovered anymore. At this point, I believe
there are other far more urgent things that deserved your attention.
Continuing, our efforts in the immediate past as well as early this year, in all areas of
governancefrom Social and Public Service, Economic Service, to Administration Development
and Development Projects coupled with a disciplined Fiscal Administrationare all geared
towards Building the Future for the next generation of Dagupeos:
- Now, as BALON DAGUPAN
- Soon to be tested this coming typhoon season as RESILIENT BALON
DAGUPAN, as discussed in my conference with Mayors from other Emerging
Cities in Singapore.
- and just over the horizon as EMERGING SMART CITY!
This vision we discussed during our last meeting in the League of Cities.
Fellow Dagupeos, we have given you a taste of the future in the recently concluded Balon
Dagupan Bangus Festival, using 3 thematic activities:
First, the Traditional Festival featuring our 31 Barangays with their now famous Gilon-Gilon
street dance, highlighted by our Bangusan Street Party with 600,000 people in attendance, and
of course a fitting ending with the Thanksgiving Mass.
Second, the Festivals of the North featuring equally famous ethnic dances from the Ilocos
Region, with special participation from Visayas-Mindanao Regions and the Tri-BangusTriathlon
attended by Triathletes all over the country; and the Fun Fiesta sa Pilipanas, Speedo G-league,
and DEAP, among others were also enjoyed.
And third, the Bangus International Cuisine Showcase or Bangusine chaired by my good friend,
Atty. Gonzalo Duque, which featured exotic cooking techniques in cooperation with overseas
students studying in Dagupan and Pangasinan Universities and Colleges. We also had the
Pawil Pangasinan ed Balon Dagupan for the balikbayans, a truly fun and exciting event at the
Ciudad Elmina headed by Former Mayor Al Fernandez.
We would likewise want to acknowledge all the councilors, department heads and friends for
leading and helping in our other Bangus Festival events. A round of applause for you all!
To consolidate the mileage garnered by the Bangus Festival, we hired recently a Consultant for
Bangus Branding from the Food Division Bureau of Export Trade Promotion of DTI to help us
with our own Bangus Industry Development Team. Soon our Dagupan Bangus will be sporting a
tail tag to distinguish it from others. From here on, only Franchised Retailers in Dagupan and
Metro Manila will be selling the worlds tastiest bangus so to ensure Dagupan Bangus lovers
that they are buying the real ones.
To all those who supported the Bangus Festival, therefore I say:
Maraming Salamat po!
In all these festivities, I wish to assure our fellow Dagupeos that we have prepared well for the
SECURITY and COMFORT of all, addressing not only the possible disorders that may arise
from pranksters out to discredit the event, but also the natural risks that may occur during the
period.
On the one hand, if I may inform our prospective visitors, we have recently inaugurated PARMC
or Public Alert and Response Management Center which to date operates 24/7. It has
successfully consolidated the assets of POSO, CDRRMO, Anti-littering, PNP, BFP, KBP
(media), civic coms and other volunteer units in keeping a Safe & Secure Balon Dagupan!
Recently it has completed the EDM (Exposure Database Module) Assessment for 16
barangays, identified 3,876 buildings, out of which 301 were classified and assessed as
prospective Privately Hosted Evacuation Centers. This week only, PARMC has launched the
2014 EDM Survey targeting 3, 000 prospective PHECs to accommodate 150, 000 evacuees for
possible tsunami and deep flooding estimated at 7 meters high.
On the other hand, working side by side with my Administration for this event, are giant
telecommunication companies (Smart/ Globe) and locally based TV stations (GMA/ ABS-CBN,
USATV) who fulfilled their pledges and their all-out support unconditionally!
For those who missed the Bangus Festival, we continue to replay the day by day activities over
your favorite kabaleyan channel.
These festivities, though fleeting, have added to our communal experience as a City, only
yesterday from a financial crisis, today to an Emerging Smart City by 2016!
Already for the first 5 months of 2014, we have accomplished so much. Allow me to enumerate:

Medical Dental Patients increased by 21, 943 or 1,053% for the 10 and a half month
ended May 14, 2014 against 1 year ended June 2013.
Senior Citizens Health Care increased by 2,439 or 694% for the 10 months ended May
2014 against 1 year ended June 2013.

Out Patient Department increased 5,160 by 139% for the 10 month ended May 2014
against 1 year ended June 2013.

We have 7 months to go before the year 2014 ends. Today, I ask you once more:
STAND BY ME AND TOGETHER LET US CLAIM OUR FUTURE BOLDLY AND WISELY!
As a fitting ending allow me to share with our guests and once more with my fellow Dagupenos
our collective vision:
First, as a Smart City by 2016.
And with your love and support and Gods blessings, a BALON DAGUPAN will yet become the
Premiere City of The North by 2019!
Salamat po! Mabuhay so Balon Dagupan!