Financing Services & Infrastructure in Cities From Local Revenue Generation Innovations in The Philippines

Presentation to Asian Cities Forum ADB Headquarters Manila, 15 November 2011

Ian Lloyd, Director Land Equity International Pty Ltd (Australia) Land Equity Technology Services Inc. (Philippines)
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Sustainable Economic Growth Through Local Investment Linked to Local Revenue Generation and Effective Land Administration Systems

Efficient Tax Collection

Wise Investment By LGU

Wealth, Jobs, Good Governance

Effective Valuation, Property Tax Base, Property Registration, Land Use Planning And Land Information

Property Values Increase (Market Response)

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Challenge : Dependency on External Funds

TOTAL REVENUES OF LGUs, BY SOURCE (2003-2007) PesoMillion
500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
2003 2004 2005 2006 2007 Average

TOTAL REVENUES External Sources Local Sources

Four Key Processes to Get Right - all at the same time for maximum impact
Map of Land & Buildings Owners Up to date as Transactions Occur
Property Records

Sales Data Building Costs Data Revise Regularly

Tax Collection

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Market Values

assessment notices easy payment penalty

tax policy community dialogue Business sector dialogue

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Tax Policy

Enabling Environment for Four Key Processes to be Effective

Professional Property Valuation Services & Standards Up to Date Property Information through Partnerships General Revision of Property Values at Regular Intervals Computerised Tax Collection System linked with UPIS Tax Policy set in dialogue with community

Innovation

Unified Property Information System (UPIS)

Four Key Processes

Spatial system supports physical planning as well as administration

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Establishing Actual Property Values By Mass Appraisal

Commercial SMV and market values Naga City

Residential SMV and market values - Mandaue

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Establishing a Property Base and RPT Base

Image mapping is cost effective for use by local government especially in partnership with central agencies of government and together with GIS
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Extending use of Spatial Systems Beyond Mapping for Innovative Purposes

Lots indexed to photos of property in GIS

Unpaid Real Property Tax (GIS linked to RPT system in Nabuturan)

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Extending to Business Registration and Taxation

Building footprint mapping to support social profiling, business tax, environment management (Bayawan)
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Our Approach to Change Management

Local ownership of the activity design & implementation & accountable to the executive;
Counterpart contribution & competitive selection Entry point is revenue generation and, nature of the investment activity is determined by local demand.

Counterparts responsible for the work; Consultants are change managers with an emphasis on technology transfer & training; Training covers project management skills as well as technical skills; Activity evaluation imbedded into change processes to feedback during the activity for continual improvement & adjusting the pace of change.

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