Victorias City Mayor on DOF Reclassification

Victorias City Mayor Javier Lopez Benitez issued a clarification on the reclassification of Victorias City by the Department of Finance under Republic Act No. 11964 (2/2).

“The data used for the recent income reclassification were based on the submitted Statement of Receipts and Expenditures (SRE) for the years 2020 to 2022. It’s important to note that this period only includes six months of our administration,” he said.

Mayor Javi Benitez also added that “Victorias City, given its size in terms of area and population, receives a relatively small National Tax Allotment (NTA) share, similar to La Carlota City. The NTA share is a significant factor in income reclassification, as it has contributed to the increase in income classification for other cities, even without substantial growth in their locally-sourced revenues.”

“While the implementing circular does not explicitly state that the income reclassification period should cover 2020 to 2022, the rationale stems from Republic Act No. 11964 taking effect in 2023. Section 4 of the law specifies that the basis for income classification is the last three fiscal years preceding the year of reclassification, which, in this case, covers 2020-2022,” he pointed out.

Benitez said the city treasurer “has also made a projection based on data for 2021-2023. Using this period as a basis, Victorias City would qualify as a 3rd class city, with an average annual regular income exceeding ₱800 million but below ₱1 billion.”

“This demonstrates the progress we’ve made under our administration and highlights the trajectory of growth we are striving to maintain. As we move forward, we remain focused on fostering economic development and building a resilient Victorias City for the benefit of all its people,” the first-term mayor said.

Benitez, president of the Negros Association of Chief Executives, also congratulated all the LGUs that have been reclassified to higher income classes.

“This is a significant milestone that reflects the growth and potential of our communities. Here in Negros Occidental, Bacolod City and Kabankalan City have retained their status as 1st class cities, while Silay City, La Carlota City, and Victorias City remain classified as 3rd and 4th income classes, respectively,” he said

“For clarity, the income reclassification is based on the average annual regular income of LGUs from 2020 to 2022. According to the computations from our City Treasurer, Victorias City falls short of the 3rd class threshold by around ₱50 million. We’ve requested official data from the Bureau of Local Government Finance (BLGF) to verify this, but these figures give us a clear picture of where we stand,” he said.

In a statement, he said that the “highlight that our administration only began in 2022, and the data shows a significant jump in that year. This was largely due to two factors: the implementation of the Mandanas ruling and the gradual recovery of the economy after the pandemic.”

“Looking at 2023, I’m incredibly proud of Victorias City for being recognized as the Most Improved City in Western Visayas by the Department of Trade and Industry. This recognition is proof that we are on the right track. While this reclassification may reflect past performance, I am confident in the direction we’re heading and the progress we’ve made since taking office,” the mayor also said.

“This isn’t just about numbers—it’s about building a stronger, more resilient city. We are moving forward, and together, I know we can achieve so much more for Victorias and its people. Let’s continue to work towards a brighter future!,” Benitez said.

Three cities and five municipalities in Negros Occidental are now classified as 1st class, according to the new classification of the Department of Finance in compliance of Republic Act 11964 or the Automatic Income Classification of Local Government Unit Act.

Classified as a 1st class local government unit are the cities of Bago, Cadiz and San Carlos.

The new 1st class municipalities are E. B. Magalona, Isabela, Manapla, Pontevedra and Ilog.

The cities of Himamaylan and Sagay are now 2nd class cities, while the cities of Escalante, Sipalay and Talisay are now 3rd class cities.

Meanwhile, the towns of Moises Padilla, Toboso, and Valladolid are now 2nd class municipalities, while Candoni and Don Salvador Benedicto are 3rd class municipalities.*