Archival: P12.1B not enough to sustain operations

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CEBU CITY — Mayor-elect Nestor Archival has raised doubts over the reported P12.1 billion in bank deposits that outgoing Mayor Raymond Alvin Garcia said the Cebu city government will turn over to his administration.

Archival said the amount may not be enough to sustain city hall operations in the long term.

"I respect what the mayor said. But from the early reports I've seen, I'm not sure if that's enough," Archival.

Garcia earlier reported that as of June 2, 2025, Cebu City had P12,095,391,052.21 in bank accounts, broken down into P7.9 billion (general fund), P1.5 billion (trust fund), and P2.5 billion (special education fund), along with $2.2 million in a separate dollar account.

Garcia also asserted that the city is debt-free.

Archival acknowledged that such an amount could potentially support city hall's workforce but maintained that he needs to personally examine it.

He specifically questioned how the city reached P12 billion in cash reserves when its average annual revenue is just about P10 billion.

"If our revenue is P10 billion a year, there's no reason we should be spending P12 billion," Archival said.

He noted that preliminary reports from his transition team show that Cebu City spends at least P40 million per week on salaries for job order (JO) employees alone.

He said he is concerned that such a high recurring expense may deplete the city's resources faster than expected.

Archival emphasized the need to review financial records before making staffing decisions.

As of May 26, Cebu City Hall had 1,582 regular employees, 2,962 casuals, 2,668 JO workers, and 187 coterminous personnel.

He reiterated his plan to extend the contracts of casual and JO employees for three months after he assumes office, during which a full performance evaluation will be conducted.

However, he said this would depend on whether the city truly has enough funds to support the extension without compromising other operational needs.

"We're checking. That P12 billion may have a basis, but I want to be sure," Archival said.

While Garcia said he would not interfere with the new administration's staffing decisions, he responded to Archival's concerns by emphasizing the city's solid fiscal position.

Garcia said the funds were accumulated without implementing the updated real property tax rates mandated under the Real Property Valuation and Assessment Reform Act.

He clarified that the cash was not idle but already appropriated for their intended uses, and emphasized that the amount was the result of efficient revenue collection and controlled spending.

"We were also able to control our expenses and spend on necessary programs and projects for the city of Cebu," Garcia said.

Garcia further explained that although some projects remain unpaid, such as the completion of the Cebu City Medical Center from the third to seventh floors, five school buildings, and slope protection structures, these had already been awarded and would be supported by the available funds.

He maintained that the city's cash reserves are sufficient to sustain operations for at least the next three years.

"This P12.1 billion is more than enough to answer any obligations from my one-year tenure," he added.