CREATION OF LGUs

A local government unit may be created, divided, merged,

abolished, or its boundaries substantially altered by law
enacted by congress in case of Province, City and
Municipality. The Regional Legislative Assembly of
ARMM is now conferred with power to create
municipalities within its territorial jurisdiction.
Sangguniang Panlungsod or Sangguniang Panlalawigan in
case of barangay..
Such power was delegated by congress in order
to enhance the delivery of basic services in
indigenous cultural communities.
The president has NO POWER to create LGU
SUBSTANTIVE REQUISITE (for creation ofLGU)
Land area
Income
Population
LGU
MINIMUM
MINIMUM
MINIMUM
CREATED
INCOME
POPULATION LAND AREA
2,000 but
Barangay
No Minimum 5,000 for
No Minimum
Requirement Metro Manila
Requirement
and HU City
Municipality
P 2.5 M and
25,000 and
50 sq. km.
Comp. City
P 100 M and 150,000 or
100 sq. km
HU City
P 50 M and
200,000
No Minimum
Requirement
Province
P 20 M and
250,000 or
2,000 sq. km
PROCEDURALREQUISITE
Plebiscite
FIXED BOUNDARY It is necessary that it must have
its boundary fixed, definite and certain, in order to
avoid conflicts of governmental powers.
ROLE OF BARANGAYS
It serves as the primary planning and implementing unit
of government policies, plans, programs, projects and
activities in community.
Serves as a forum where the collective views of the
people may be expressed, crystallized, and considered
as well as where disputes may be amicably settled.
The REMEDY in case of boundary dispute is plebiscite
ROLE OFMUNICIPALITIES
Municipality consists of a group of barangays which
serves a general governmental purpose for the
coordination and delivery of basic, regular and direct
services, and effective governance of the inhabitants
within its territorial jurisdiction.
ROLE OF CITIES
A city consists of a group of barangays to which serves
primarily as a general purpose government for the coordination

and delivery of basic, regular and direct services and effective

governance of the inhabitants within its territorial jurisdiction.
ROLE OF PROVINCES
A province, which is compose of cluster of municipalities, or
municipalities and components cities, is a political and corporate
unit of government and serves as a dynamic mechanism for
developmental processes and effective governance of local
government units within its territorial jurisdiction
MAIN SOURCES OF REVENUES OF LGUs
A. Under the Constitution
1. Taxes, fees and charges
2. Share in National Taxes IRA
3. Share in the proceeds of the utilization and
development of the national wealth within their
areas.
B. Under the Local Government Code
1. Floating of Bonds
2. Grants/Aids
FUNDAMENTAL PRINCIPLES ON LOCAL TAXATION
1. Taxation shall be uniform in each LGU
2. Taxes, fees, charges and other impositions shall:
a. Be equitable and based as far as practicable on
the taxpayers ability to pay
b. Be levied and collected only for public purpose
c. Not be (UN-EX-OP-CON) unjust, excessive,
oppressive, or confiscatory
d. Not contrary to (L-PP-NEP-RT) law, public policy,
national economic policy, or in restraint to trade
3. The collection of taxes, fees, charges and other
impositions shall in no case be let to any private
persons
4. The revenue collected pursuant to the provisions of the
LGC shall inure solely to the benefit of, and be
subject to disposition by, the LGU levying tax, fee,
charge or other imposition unless otherwise specifically
provided therein
5. Each LGU shall, as far as practicable, evolve
progressive system of taxation
FUNDAMENTAL PRINCIPLES OF LOCAL FISCAL
ADMINISTRATION
1. No money shall paid out of the local treasury except in
pursuance of an appropriation ordinance or law
2. Local government funds and monies shall be spent
solely for public purpose
EMINENT DOMAIN (PURPOSES AND LIMITATIONS
Public Use
Public Purpose
Public Welfare
For the Benefit of the poor and the landless

NAMING OF LGUS PUBLIC PLACES, STREETS AND

STRUTURES
1. They shall not be named after a living person, nor
may a change of name be made unless for justifiable
reason
2. Such change of name be made not oftener than once
in 10 years.
3. Those with historical, cultural or ethnic significance
shall not be changed unless unanimous vote of the
sanggunian concerned and in consultation w/ the NHI.
4. A change of name of a public school shall be made
only upon the recommendation of the local school
board concerned
5. A change of name of public hospitals, health
centers, and other health facilities shall be made
only upon the recommendation of the local health
board concerned
6. A change of name of any local government unit shall
be effective only upon ratificationin a plebiscite
conducted for the purpose in the political unit directly
affected
7. In any change of name, the Office of the President, the
representative of the legislative district concerned, and
the Philippine Postal Corporation.
GOVERNOR OR MAYORS VETO OF ORDINANCE
1. The ordinance is ultra viries
2. That it is prejudicial to public welfare
VETOED ORDINANCE CAN BECOME A LAW
1. The sanggunian may override the veto by 2/3 vote of
all its members
2. Failure of the Local Chief Executive to communicate
the veto to the sanggunian within 15 days in case of a
province and 10 days in the case of city or municipality.
The ordinance shall be deemed approved as if he
signed it
EFFECTIVITY OF ORDINANCE
1. Unless otherwise stated in the ordinance approving the
local development plan and public investment

program, it shall take effect after 10 days from

posting at the provincial capitol or city, municipal or
barangay hall and 2 other conspicuous places.
2. Ordinances with penal sanctions shall be posted at
the provincial capitol, or city, municipality or barangay
hall for a minimum of 3 consecutive weeks, and
shall be published in a newspaper of general
circulation where available, within the territorial
jurisdiction of the local government concerned, except
in the case of a barangay ordinance. Unless otherwise
provided therein, said ordinance shall take effect on
the day following its publication, or at the end of
period of posting, whichever occurs later.

JURISDICTION IN SETTLING BOUNDARY DISPUTES

1. Sangguniang Panlungson or Sangguniang Bayan
2. Saguniang Panlalawigan
3. Joint Sanggunians of the Provinces
4. Joint Sanggunian of the Parties
POWER TO ENTER INTO CONTRACTS
Requisites of a valid municipal contract
1. The LGU has express or implied power to enter into
particular contract.
2. The contract is entered into by the Local Chief
Executive on behalf of the LGU with prior
authorization by the sanggunian concerned
3. The contract must comply with certain substantive
requirements.
i.e. there must be an actual appropriation
ordinance by the sanggunian and a certificate of
availability of funds by the local treasurer
4. The contract must comply with the formal
requirements of written contract
ULTRA VIRIES CONTRACT
A contract is ultra viries in the absence of the 1st and 3rd
requisites and shall be null and void