Automating a Highly Urbanized City Government: The Case of ... · Information and communication technology (ICT) is gaining importance as a tool for improving local government operations

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International Conference on Magsaysay Awardees:

Good Governance and Transformative Leadership in Asia, 31 May 2016

Automating a Highly Urbanized City Government: The Case of Iloilo

Remigio D. Ocenar, Ph.D., Prof., National College of Public Administration and Governance

(NCPAG), University of the Philippines Diliman, Philippines.

Abstract

Information and communication technology (ICT) is gaining importance as a tool for

improving local government operations and the quality of life of the citizens. At the

city government level, ICT opens opportunities to overcome some of its most pressing

problems in urban governance. City governments face administrative problems such

as red tape, inefficient data bases, unreliable delivery of basic services, and low

productivity. They also encounter congestion, sluggish economic growth, aging

infrastructure, environmental deterioration, inadequate resources, and other challenges

caused by rapid population growth and urbanization. The study explores how these

problems are given attention by the City Government Iloilo using ICT as a tool.

This study is made up of two parts. The first part discusses the profile of Iloilo City

government, its organization, personnel complement, and income. It also provides

information about the history of the Iloilo City, its physical configuration, present

population and the economy. This part provides the context of the study. The second

part examines the initiatives of the city government in ICT. It analyzes the extent to

which the city government utilized the technology in improving government

operations, and in enhancing the delivery of basic services. In addition, it determines

the benefits gained and the challenges that emerged in using ICT.

The study involves interviews with city government officials; survey of ICT equipment;

review of the city government current socio-economic profiles, development plans, budgets

and expenditure accounts; and content analysis of the official website, Facebook and

Twitter.

Keywords: Highly Urbanized City/ Iloilo City/ Information and Communication

Technology/ Initiatives/ Philippines

Introduction

The City of Iloilo got its name from the local dialect Irong-irong in reference to its

nose-shape landscape configured by two big rivers that traverse the city. The

historical provenance of Iloilo City dates back to the 13th

century when ten Bornean

datus settled in Panay island. One of them, Datu Paiburong, made Irong-irong his

permanent home. In 1556, the conquest by the Spaniards of Irong-irong transformed

the place from a loose grouping of villages to a single settlement unit. Subsequently,

Irong-irong was shorthened to Iloilo. By 1700, the place had a flourishing economy

due to the establishment of Fort San Pedro at the mouth of Iloilo river. The fort

opened Iloilo to outside trade. On February 7, 1890 under the Bacerra Law (1889) the

Spanish government established the City Government of Iloilo.

At the turn of the 20th

century, Iloilo City was considered the second most important

port of call in the country after Manila. The city’s agricultural and textile products

found their way to the local and foreign markets. During this period, Iloilo City was

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known as “Queen City of the South”. In July 16, 1937, Iloilo was declared a chartered

city by virtue of Commonwealth Act 158. In the 1940’s, the city was severely

damaged by World War II. With its economy and infrastructures in shambles, the

economic significance of the city declined. From 1960 towards the end of 1990, the

economy of the city started to pick up. The construction of a fish port, an

international seaport and the entry of commercial investors in the years that followed

further enhanced the economic growth of the city. Today, Iloilo City is the regional

center in Western Visayas. With its booming economy, the city has become a

commercial and industrial hub in the Region VI.

City Government Profile

Spatial Characteristics

Iloilo City The City lies at the southern part of Panay Island (Figure 1). It shares

borders with the municipalities of Leganese and Pavia on the north east, San Miguel

and Pavia on the north west, and the Iloilo Strait on the south east (Table 1). The

land area of the city had expanded during the last century due to the integration of old

pueblos or towns adjacent to the city and the reclamation of swampy areas. Based on

the approved base map of Iloilo City as confirmed by the Land Management Bureau

(LMB) of the Department of Environment and Natural Resources (DENR), the city

has an updated land area of 78.3400 sq. km as of November 2007. This comprises

almost .68% of the total land area of Iloilo Province and .39% of Region 6.

Figure 1. Boundary Map of Iloilo City

Source: Office of the City Planning and Development Coordinator, Iloilo City

Government, 2012.

The city sits on a flat alluvial plain and is traversed by five rivers. The biggest, the

Iloilo river is an estuary that separates the geographical districts of City Proper,

Molo, and Villa Arevalo from the rest of the City areas. The City has two pronounced

seasons, the wet and the dry.

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Table 1. Political Boundaries

Location Adjacent Area

North-East Municipalities of Leganese and Pavia

North-West Municipalities of Pavia and San Miguel

South-East Iloilo Strait

Source: Iloilo City Socio-Economic Profile, 2010

The City has 180 barangays and seven geographical districts, including the city

proper. Each of these geographical districts encompasses a specific number of

barangays (Table 2). Six of these geographical districts were once individual town

that coalesced to form the City of Iloilo. The seventh one was a sub district of one of

the six original geographical districts until its creation as a full pledged district in

2008. The City was declared a chartered city on August 25, 1937 and as a highly

urbanized city in 1980 by virtue of Batas Pambansa 51.

Table 2. Geographical Districts

Districts Number of Barangays Covered

Arevalo 13

City Proper 45

Jaro 42

La Paz 25

Mandurriao 18

Molo 25

Lapuz 12

Source: Iloilo City Socio-Economic Profile, 2010

Economy

In recent years, Iloilo city has been a mecca for economic investors. Data indicate that

from 2003 to 2010, the number and volume of economic activities continuously rose.

During the seven-year period, the number of economic establishments of various

classification went up by 29.3% and their cumulative capitalization grew by 72.0%.

In 2010, the city registered 10,869 business establishments operating in the city with a

total capitalization of Php 22.38 billion (SEP, 2010). Banking and finance, retail

trading and business process outsourcing have been the major contributors to the

continuing upsurge of economic investments in the City. In support of the increasing

economic activities, the city government has offered tax holidays and free issuances

of business permits and licenses to further attract new investors.

Population

In 2007, Iloilo City had a total population of 418,710 with 85,518 households. The

annual population growth rate between 2000 and 2007 was 1.86 percent and a

population density of 5,348 person per sq. km. in 2007 (Table 3). The Districts of

Jaro and La Paz recorded the biggest concentrations of people. On the other hand,

Arevalo and Mandurria registered the least number of population. Iloilo Proper, Jaro,

Mandurria, and Molo are commercial areas while Arevalo and La Paz are residential.

Lapuz district is dominantly industrial.

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Table 3. Population and Density

District

Population

Density /Sq.Km.

Average

Annual

Growth Rate

2000 2007 2000 2007 2000-2007

Arevalo 36,449 45,921 5,488 6,914 3.24

City Proper 51,663 54,539 11,748 12,402 0.75

Jaro 97,179 111,976 3,196 3,683 1.97

La Paz 73,273 82,344 4,718 5,302 1.62

Mandurriao 44,615 53,857 2,929 3,536 2.63

Molo 63,212 70,073 10,300 11,418 1.43

Total 366,391 418,710 4,677 5,348 1.86

Source: National Statistics Office, Region 6.

City Government

Iloilo City is the capital of Iloilo province. It is also the regional center of Region

VII. Field offices of national agencies are all based in Iloilo City. In 1980, the city

was proclaimed a highly urbanized city by virtue of Batas Pambansa 51. Iloilo City

exists as a single congressional district. Besides the City Mayor and the City Vice-

Mayor, the city has twelve councilors elected at large.

In the following section, the administrative set up of the city is discussed.

Organization and Management

Structurally, the city government maintains a large organization. It includes all

mandatory and selected optional offices required under the 1991 Local Government

Code. These offices are reflected in the existing city organizational structure shown in

Figure 2. Not reflected in the chart are units and sub-units under the Office of the

Mayor that provide staff support to the City Mayor. One of these is the Information

Technology unit under the Office of the Mayor which was created in 2010 and is

responsible for administering and updating the financial management system and the

content of the city website. The city structure also reflects local offices of national

agencies holding offices at the city hall whose mandates include extending services to

the city dwellers.

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Figure 2. Existing Organizational Structure of Iloilo City Government

* Field Offices of National Government Agencies Source: 2011 Socio-Economic Profile of Iloilo City, Office of the City Planning and

Development Coordinator

Personnel

As of January 2011, the city government employs 4,514 personnel. Of these, 1,821

(40.%) are plantilla positions or regular positions, and 2,693 (60%) are job orders.

The job order personnel are temporary employees whose tenure of office is renewed

every three months. Their functions range from technical, clerical and manual work.

Most of them, especially those that perform technical and clerical works are political

appointees. They are assigned in various offices of the city government. The job order

employees comprise the biggest group in the city bureaucracy.

City Mayor

Vice Mayor

and the

Sangguniang Panlungsod

Office

of the City Secretary

City

Agricultu-

rist

Office

City Administrator’s

Office

Office of the

Executive Assistant

City

Population

Office

Human

Resource

Mgt.

Office

City

Budget

Office

City Legal

Office

City Health Office

City Social Welfare

and Dev’t

Office

Office of

the City

Mayor

City Assessor’s

Office

City Treasurer’s

Office

City Planning

and Dev’t.

Office

Market and Slaughter-

House Office

City

Environment

and Natural Resources

Office

City Civil Registrar’s

Office

City Tourism

and Dev’t

Office

City General

Services

Office

La Paz Maternity

and Reproduction

Health Center

City Acountant

Office

City

Engineer’s

Office

City

Veterina-

rian Office

*Office of

the City

Sheriff

*Office of

the City

Prosecutor

*DEC-Non

Teaching

Personnel

*City

Registry of

Deeds

*Board of

Tax

Appeals

*Technical

Institute of

Iloilo City

*City Trial

Court

*Office of

the City

Auditor

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On the other hand, the Office of the Mayor has the most number of units under its

supervision. The position of City administrator is under the Office of the Mayor. He

is responsible for supervising job orders employees. Of the major departments, the

City General Services Office maintains the biggest number of employees. Most of

these are utility workers and street sweepers. Table 4. Present the number of plantilla

positions by office of the city government.

Table 4. Plantilla Position By Office

Office Filled-up Vacant Office Filled-up Vacant

Mayors’ Office

Sanguniang

Panglungsod

Population Office

Human Resource

Mgt.

City Budget

City Legal

City Health

City Social

Welfare

& Development

City Assessor

City Treasurer

City Planning and

Development

City Engineer

167

63

22

16

19

16

191

142

70

242

33

138

12

4

-

-

-

1

6

4

-

12

3

8

City General

Services

City Environment

&Natural

Resources

City Agriculturist

City Civil Registrar

City Tourism

City Accountant

City Veterinarian

Municipal Trial

Court

Registry of Deeds

Board of Tax

Appeals

Department of

Edu.

Technical Institute

Transportation

Mgt.Traffic

Regulation

311

148

32

20

14

48

19

22

3

4

2

8

4

3

2

1

1

-

4

-

4

-

-

-

1

1

Total 1,119 50 635 17

Source: Personnel Schedule: 2012, Iloilo city Government

City Finance

Iloilo City earned an average income of Php1,050,001,014.17 during the six year

period from 2005 to 2010. Except in 2008 where income went down due, the city’s

revenues steadily rose from 2005 to 2010 (Table 5). In 2008, the income declined by

17% due to decrease in IRA share of the city caused by the conversion of 16

municipalities into cities. The conversion affected all cities in the country.

Table 4 also indicates that the city’s annual income reached the billion mark in 2007.

In 2010, the city registered an income of Php 1,221,539,275 of which 55% was

collected from local revenues while the other 45% was contributed by the IRA. If the

substantial annual increase in local revenues is an indication, there is a probability that

the city would continue to experience a high pace growth in their revenue position

particularly the local sources in the succeeding fiscal years.

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In terms of contribution to the city’s income, local revenues contribute more than the

IRA. The data on income from 2005 to 2010 show that the aggregate collection from

local revenues is higher by 18% than the IRA share. Nevertheless, the contribution of

IRA to the city’s income remains substantial. The reduction of the IRA share would

surely affect the delivery of basic services. The combined annual collections from the

business tax, real property tax, market, franchise tax, and garbage fee contribute the

bulk of the own-source tax revenues of the city. Added to this are the contributions

to the city’s coffers of other local revenue sources such as transfer tax, amusement

tax, and a variety of license and permit fees whose collection efficiency is likewise

rising.

Table 5. Revenue collection, 2005-2010

Year

Total

Revenue

Earned (in

Pesos)

Percentage

Increase

Internal

Revenue

Allotment

(in Pesos)

% to

Total

Income

Local

Sources

(in Pesos)

% to

Total

Income

2005

2006

2007

2008

2009

2010

2011

755,712,547

907,652,151

1,250,633,072

1,034,586,614

1,129,882,426

1,221,539,275

1,330,484,396

20

38

(17)

9

8

9

326,543,397.00

359,427,477.00

395,629,242.00

412,506,278.00

509,263,194.00

548,241,121.00

588,001,502

43

40

32

40

45

45

44

429,169.150

548,224,674

855,003,830

622,080,336

620,619,232

673,298,154

742,482,894

57

60

68

60

55

55

56

Total 7,630,490,481 3.139,612,211 41 3,748,395,376 59

Source: City Executive Budgets, 2004 - 2012

Information Communication Technology

Information and communication technologies, also known as ICT, include the

Internet, computers, and other hardware, software and digital technologies that

enhance the transfer of information from one unit to another. Its application varies

depending on what the implementing organization does. A business organization, for

example, uses ICT basically to increase sales and profit. On the other hand, the use of

ICT in the public sector is more extensive. The Government uses ICT as a tool to

improve quality of services, optimize functions and processes, and to enhance citizens

engagement in public affairs. Beyond mere efficiency of government processes,

central and local governments are harnessing ICT to accomplish the broader concerns

of achieving economic growth, and in improving the quality of life of the citizens, and

democratizing governance.

Leveraging ICT in cities in the Philippines for improved urban governance is an

emerging phenomenon. Cities, particularly highly-urbanized cities or HUCs, are

experiencing numerous governance problems brought about by population growth and

rapid urbanization. Many are confronted with burgeoning administrative problems

such as red tape, defficient data bases, unreliable delivery of basic services, and low

productivity. In addition, they face the challenges of congestion, unemployment,

inadequate public services, environmental degradation, deteriorating infrastructure,

and the concomitant problems of decreasing revenues. Thus the HUCs are under

pressure to adopt new ways to overcome these challenges. Increasingly, the HUCs

are adopting ICT as an instrument to improve performance in delivering government

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services while mitigating problems resulting from rapid population growth and

urbanization.

Emerging Challenges and the Role of Information Communication Technology

The transformation of Iloilo City into a highly-urbanized local government unit

generates substantial social and economic benefits to the city. Investments keep

pouring in which provide not only considerable revenues to the city government but

employment opportunities to the city dwellers as well. At the same time, the

increasing population growth and high level of urbanization trigger a plethora of

challenges which keep the city government on its toes. The 2011-2012 Executive-

Legislative Agenda (ELA) under the Comprehensive City Development Plan of Iloilo

City Government disclosed that urban population growth and rapid urbanization

taking place in the city has led to overcrowding, air and water pollution, traffic

congestion, and a vast arrays of social and economic woes. Added to these are

institutional problems such as red tape, poor coordination of work among employees,

aging infrastructure facilities, limited people’s participation, scarcity of resources, and

poor delivery of basic services.

Given the increasing responsibilities brought about by high population growth and

rapid urbanization compounded by inadequacy of funds, the city government has

taken steps, albeit slowly to further enhance its economic growth and to mitigate the

social and spatial problems. Supporting these initiatives is the decision to automate of

the city government transaction both within the organization and its interaction with

the community and the financial sector. The goal is to attract businesses and jobs,

increase revenues, and to improve the delivery of basic services.

The remainder of this paper documents the initiatives of the city government to

automate its system and procedures as it confronts the challenges attendant to high

population growth and rapid urbanization.

Initiatives in Information and Communication Technology

The initiatives of Iloilo City Government on ICT is still in their early stage despite the

18 years involvement with computerization. These initiatives started in the mid-90s

as a program to computerize the city government to improve government operations.

From 1995 to 2007, several computers were installed in various departments of the

city government. In 2008, the initiatives evolved to a more advanced system of

information and communication technology. At present, the city government has three

information management systems – one each for tax collection, tax assessment and

mapping, and online transaction system through its official website, Facebook, and

Tweeter. These systems are continuously being improved to accommodate changes in

information technology. Full-time information technology personnel are on standby to

keep the systems in good running condition and their contents up-to-date.

Early Initiatives

In 1995, then City Mayor Jerry P. Treñas, initiated a continuing comprehensive

computerization program purposely to systematize records keeping of various

departments and offices of the City Government of Iloilo, and to store data concerning

city government plans, programs, projects, and other pertinent documents. Thus from

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1995 and 2007, the city government purchased several computers and were assigned

to the different departments of the city government. There are no records to determine

the number of computers bought and the amount spent during the years 1995 to 2003.

However, financial data culled from the City Government Executive Budget from

2004 to 2007 indicate that the city government allotted from its 20% development

fund specific amounts for the purchase of computers. In 2004, the city government

spent Php361,368.70 for computers. In 2005, it shelled out Php66,800 while in 2006,

the amount of Php460,000 was used. In 2007, the Sanggunian Panglungsod (City

Council) installed a number of computers amounting to Php72,630.50 funded by its

own budget.

Between 2001 to 2007, the city government pursued various initiatives in support of

its computerization program. During the time of former Mayor Jerry Trenas, the city

government tried to access a grant from the Department of Finance through its LAMP

and LOGOFINDS programs but failed to take off due to some administrative issues.

The grant was intended to acquire more computers for assessment and revenue

purposes. It also made an effort to access capability-building program funds on

information technologies from the private sector in order provide THE city treasurer

and assessor the competencies in enhancing revenue collection, and the city planning

and development office to strengthen its planning and research functions.

According to the Iloilo City Planning and Development Coordinator, the city

government availed in 2004 of the Enhanced Tax Revenue Assessment and Collection

System (ETRACS) under the Local Government Development Program funded by

Australian Aid. The program involved capacity-building and provision of hardware

and software system for the treasury and assessment offices. It also took part in a

training program on GIS and map preparation conducted by Green Forum-Western

Visayas, a nongovernmental organization involved in promoting sustainable

environment. Unfortunately, the knowledge learned from these programs was not

utilized. First, the city government did not have the funds to apply it; and second, the

treasury, assessor, and the planning offices were hesitant to use it because they had a

limited grasp of the technology imparted by the programs. Besides, they were still

dependent on the experts who were hired to conduct the training programs on how to

implement the knowledge acquired.

Current Initiatives

In 2008, the City Government of Iloilo secured a grant cum loan and equity which

amounted to Php13 Million from the LOGOFIND project of the Department of

Finance-World Bank. The financial project provided for a 50% grant, 25% loan and

25% equity combined. The city government shelled out Php3,153,552 as equity share

for the loan. The funds were used to improve and streamline the city government’s

financial accounts, including assessment, billing, and collection. Part of it was also

utilized to digitize communications with clients and city populace, and to computerize

accounting procedures and processes. At present, the city government uses ICT in the

following areas of operations.

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a) The Financial Accounts

With the grant secured from the Word Bank in 2008, the treasure’s office was able to

computerize the Real Property Tax Assessment (RPTA) system and the Business

Permit and Licensing Permits (BPLP) system which became fully operational in 2010.

The computerization of the city government’s financial accounts produced significant

changes in its fiscal operations. Thus revenue collections from local sources increased

by 8.49% in 2010 and 10.27% in 2011. Collection from local taxes is projected to

further increase by 10% in 2012. Significant improvements in other aspects of

financial operations were also observed. Because of system generated computation,

issuance of warrants of levies has been standardized, and the time for processing of

business permits has been shortened. Thus it has brought immense convenience to

tax-payers in paying their taxes, and may have reduced the costs of filing taxes by the

tax-payers, and the city government effort in tax collection. Furthermore, the changes

have eliminated pilferage and discouraged the discretion of the city assessors on

imposing tax rates. Advancement in the use of ICT in this scale may not be much, but

at least the city government is benefiting from using the technology in improving its

fiscal management.

b) The Accounting System

In 2001, The Commission on Audit (COA) disseminated to local government units

the use of Electronic National Government System (E-NGAS) in local government

accounting. However, the E-NGAS was not immediately used by local governments

due to difficulty in applying it because concerned local government personnel such as

coming from the Assessor and Accounting Offices were not given the proper

orientation how to utilize it. E-NGAS was further improved by COA and the

necessary changes were incorporated for easy application by local governments.

Furthermore, local governments were given enough time to learn how to use it. In

2007, The accounting office of Iloilo City government started using the E-NGAS

mainly for bookkeeping purposes.

The application of the system has provided a number of benefits to the accounting

office. With E-NGAS, copies of accounting reports can be retrieved with ease

together with the hard copy when needed. According to the Administrative Officer II

of the City Accounting Office, Besides bookkeeping, the use of E-NGAS offers other

benefits such as, it lessen the costs and time of preparing ledgers and accounting

reports, and it provides the accounting office and its users the opportunity to

appreciate the importance of computer based information in records keeping and data

base. The accounting office has plan to expand the use of E-NGAS by connecting the

accounting office to the different barangays of the city.

c) The Website (http//www.iloilocity.gov.ph)

The city government maintains a website. It was created in 2008 to provide its

constituents and stakeholders a “window” on what the city government is doing. It

also contains diverse information about the city, and other information of general

interest to the public. The information displayed is updated periodically, except for

the history and physical description of the city, and the politico-administrative profile

of the city government which is given a permanent space. The website, however is not

interactive. The residents are encouraged to call the city government and its various

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departments through their respective landlines for their complaints and feedback.

Briefly, the following information appears in the city website.

Profile of the City and City Government

This page presents a brief account of the history, and a description of the current

socio-economic and physical characteristics of the city. It also contains the vision

missions that the city government desires to achieve by 2015. As spelled out in its

vision, the city government aspires to be a premier city through participatory and

transparent governance, the advancement in education and the preservation and

enrichment of its cultural heritage. It is not clear, however, how participatory and

transparent governance is to be done. ICT can advance the agenda of transparency

and empowerment. The challenge is how to properly leverage the ICT in realizing

these twin objectives.

On the hand, a different page outlines the politico-administrative structure of the city

government. This page spells out the names, office addresses and telephone numbers

of the present elected city officials and departments heads. This directory of the city

officials provides the residents access to the city government to communicate their

needs and demands.

Investment Opportunities, Rate of Taxes, and Tax Incentives

This site outlines investment opportunities for businessmen. Specifically, it indicates

the areas of investment which are considered competitive and therefore would ensure

greater economic gains for investors, and higher revenues for the city government.

The site also enumerates the number of existing business establishments, their nature

and total capitalization. Other information included in this page are the rate of taxes,

fees, and charges to be paid annually by each type of business establishment, and

the incentives and tax holidays for new and expanded investments. As presented,

the rate of taxes, fees and charges imposed by the city government on various local

sources are based on the level of taxation prescribed by the 1991 Local Government

Code for urbanized cities, while the amount of tax incentives, their scope of coverage

and the corresponding period of time covered by the incentives vary by level of

capitalization.

Tourism

This part of the website offers a background information of the major historical events

and festivals that the city government observes on designated dates annually. These

include the Dinagyang, the Paraw and Regatta Festival, the Chinese New Year, the

Candelaria de Jaro, and the Iloilo City Charter Day. The site likewise displays the

city’s areas of historical importance which guests and tourists are encouraged to visit.

Considered as heritage sites by the Philippine Historical Commission, these areas

which include churches, old houses, educational institutions, monuments, plazas, and

government buildings provide a glimpse of Iloilo City’s rich history. It also

incorporates a visual presentation of the city’s native cuisine and delicacies as part of

its cultural heritage.

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Application Forms, Financial Reports and Other Documents

The city government website has made available various forms for tax filing, building

permit, and locational clearance, including lists of procedures and requirements that

city residents can download and file with the city treasurer and the permits and

licenses offices. It also offers investment guide for investors and potential business

ventures. The guide includes profile of the city existing communications,

infrastructure and transportation facilities, their locations and conditions; investment

priority areas; and the costs, incentives, and requirements of putting up a new

business. All these, are designed to give the public and stakeholders ease in dealing

with the city government.

Annual budgets, statement of accounts and disbursements, financial reports, planning

documents, transactions on infrastructure and goods and services entered by Bids and

Awards Committee (BAC), and Gender and Development Program Accomplishments

Reports for 2010 and 2011 are also posted in the website. The inclusion of all these

documents in the city’s website are in compliance with Memorandum Circular N.

2010-83 issued by the Department of Interior and Local Government (DILG) in

August 31, 2010 requiring among others, City Mayors and their City Councils

(Sangguniang Panlungsod) a full disclosure of their city budgets and finances, bids

and other public offerings. Along this line, the said memorandum circular requires

local governments to post within 30 days from the end of each fiscal year in at least

three (3) publicly accessible and conspicuous places a summary of all revenues

generated and funds collected, including the appropriations and disbursements of

these funds during the preceding fiscal year. As cited in the memorandum circular,

this set of requirements is intended to achieve transparency and accountability in

government operations.

Important Events, Accomplishments and Other Relevant Concerns

The website announces short-term activities initiated by the city government such as

traffic management, poverty alleviation and feeding programs, dengue clean up,

summer jobs for students, cultural and sport activities, and other activities which the

city government undertakes jointly with the private sector. Furthermore, it shares

information about awards or recognitions that the city government received from

various government and private institutions for efficient service delivery; its effort to

establish friendly relationship with other countries; and its participation in NEW7

Wonders of Cities of the world, an international competition for cities. It also

provides information about community affairs, cultural events organized by the

private sector, job fairs and employment opportunities, new economic ventures, and a

report about the fast growing real estate development taking place in the city. This

information does not only inform the public of what is happening in the city, it also

mobilizes supports from them on government programs.

d) Other Channels: Internet, Facebook, Twitter Account

Other than the website, the city government uses the Internet, Facebook, and its

Twitter Account to disseminate information to the public about what the city

government is currently doing. These channels are also used to solicit support from

the public for certain events that the city government is involved. For example,

through the city website, the incumbent city mayor enjoined its constituent’s online

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users through the official internet, facebook and twitter accounts of the city

government to vote for Iloilo City as one of the 2012 NEW7 Wonders of Cities of the

World by accessing the official website of the organizer of the competition.

On the other hand, the Sanggunian Panglugsod (City Council) has created a Facebook

Account during the 3rd

quarter of 2011 primarily to circulate to the public the weekly

agenda of the council’s meeting; the abstracts of current resolutions and ordinance

approved by the Council; other concerns related to local legislation; and as a means

to elicit feedback from the readers. The Internet is also utilized by city government

personnel to link with or to transmit communications or information to offices within

and outside the city government on matters affecting the city government, and as

source of research data or materials on local development and governance.

e) The Information Technology Staff

The management of the ICT initiatives of the city government is under the

Information Technology and Economic Promotion Unit attached to the office of the

city mayor. The unit is headed by an executive assistant IV who reports directly to

the city mayor. The unit has an IT section which presently maintains the website,

Facebook and Twitter accounts; provides system support to the operations of the

financial accounts of the city government. The IT section was created in 2008 to

provide technical support to the computerization program under the LOGOFIND

project. Its task has presently expanded to include the maintenance of the city

website, Facebook and twitter. The IT section has two parts, the Website

Development component and the Technical Support Team (Figure 3). The former is

responsible for the design and layout of the behind the scene and the dynamic

contents of the website, while the latter provides manpower support to the former and

the end-users. The IT section is manned by two computer programmers, and a website

administrator-laborer.

Figure 3. Existing Organization Structure of the Information Technology

and Economic Promotion Unit

Source: Office of the Mayor, Iloilo City, 2012

One of the computer programmers is in-charge of the maintenance of the financial

information system and the software facility of the city government. The other one,

together with the website administrator are computer and electronic engineer

graduates. They are tasked to do the design, layout, and programming of the city

website. The website administrator was hired as a job order whose position is

Executive Assistant IV

(Head)

Administrative

Hotline Feedback System

Information Technology Economic

Promotion

Website

Development

Technical

Support Team

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temporary because the city government does not have position item for computer

engineer. His appointment has to be renewed every two months.

f) Software Facility

The city government has acquired various kinds of ICT equipment to improve

efficiency in the delivery of public services and work performance of the city

government employees. These items are installed at the different departments and

work areas of the city government. As of January 2012, the city government owns a

total of 1989 ICT equipment of different types (Table 6). A quick count of these

items during the study period indicates that these are all in good conditions and are in

use.

Table 6. Inventory of Information and Communication Equipment, January 2012

ICT Equipment Quantity

Desktop 655

Laptop 101

Printer 499

LCD Projector 40

Photocopier 33

Community Band (CB) Radio 247

Fax Machines 34

Others (Scanners, Modem, Router/Switch/Hub 380

Total 1,989

Source: Office of the General Services, Iloilo City Government

g) Budget for the Information and Communication Technology Initiatives

Available financial records indicates that the city government has allotted a total

budget of Php46,402,189 for its ICT initiatives from 2007 to 2012. Specifically, the

budget provides financial support to the following specific IT activities, namely, the

maintenance of RPTA-A Data Project and RPTA-B Computerization Program,

computerization program, loan payment for LOGOFIND project of the DOF-WB,

repair and maintenance of IT equipment and software, tax campaign, and the

inventory and encoding of resolution and ordinances (Table 7). The RPTA-A Data

and the RPTA-B Computerization projects are two parts of the DOF-WB supported

LOGOFIND program. The RPTA-A Data Project involves the systematization of

real property assessment and taxation records and data-base while the RPTA-B

Computerization Project provides the software facility. On the other hand, the

comprehensive computerization program of the city government which started in

1995 entails a continuing acquisition and installation of new computers in various city

departments and offices to improve records keeping, and to store data concerning city

government plans, programs, projects, reports and other pertinent documents.

As payment for a loan taken from the LOGOFIND program under the DOF-WB, the

city government allots specific amounts annually. Budgets are also provided for the

repair and maintenance of IT equipment and software to keep them in good

conditions, for tax campaigns using IT to improve revenue generation, and for the

computerization of the records of the Sanggunian Panlungsod, including the inventory

and encoding of resolution and ordinances

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Table 7. Budget for Maintenance and Operations of ICT Initiatives

Year

RPTA-A:

Data Project

RPTA-B:

Computeri-

zation

Project

Compre-

hensive

Computeri

- zation

Program

Repair and

Maintenance

IT

Equipment

and

Software

Loan

Payment

of DOF

(LOGO-

FIND)

Tax

Campaign

Inventory

and

Encoding of

Resolution

and

Ordinances

2007 5,280,660 469,392 70,000 798,000 - -

2008 4,846,320 430,784 70,000 1,010,000 - -

2009 4,834,232 420,368 472,914 70,000 1,010,000 - 300,000

2010 5,509,272 479,094 538,981 70,000 1,010,000 - 300,000

2011 6,177,101 537,140 1,544,276 70,000 850,762 200,000 300,000

2012 5,600,021 418,694 1,308,416 85,000 850,762 200,000 300,000

Total 32,247,606

(69%)

1,855,296

(4%)

4,764,763

(10%)

435,000

(1%)

5,529,524

(12%)

400,000

(1%)

1,200,000

(3%)

Source: Statement of Fund Operations, Performance Budget, 2007-2012.

As shown in Table 7, the RPTA-A Data Project got the biggest share of the budget

with Php 32,247,606. This figure amounts to 69% of the total budget allotted for IT

during the six year period. The RPTA-A Data project together with RPTA-B computerization

project hopes to increase the income of the city government. Other than the DOF-WB

supported LOGOFINDS project, the comprehensive computerization projects also receives a

big share of the budget. This project is continuing and helps the city government streamline

operations, reduce redundant data entry, and make data retrieval easy.

Automating Iloilo City Government: Diagnosis and Challenges

The City Government of Iloilo has long recognized the importance of ICT in

enhancing its capacity to increase efficiency in government operations, and to provide

better services to citizens at lower cost. Since the mid-1990s, the city government has

adopted ICT as a strategic tool, initially, with the continuing comprehensive

computerization program to improve records keeping and data-base and data analysis

for policy-making, program planning implementation and evaluation, followed by the

initiatives to secure grants to optimize revenue generation, and to digitize the city land

use plan. Later, the city website, face book and twitter accounts were created to

provide a wider space for disseminating information about the city government and

the city. Besides increasing efficiency in revenue generation, the comprehensive

computerization program has also expanded its application to include procurement of

supplies and equipment, and to address problems of unemployment, unreliable public

services triggered by population growth and rapid urbanization.

The importance of computerization is emphasized by the 10-Point Agenda of Mayor

Jed Patrick Mabilog, the incumbent city mayor. This is embodied in the 2012- 2013

Comprehensive City Development Plan (CDP) which adopts computerization as a

strategy to increase efficiency in revenue generation by streamlining the issuance of

business permit and licenses, and updating tax assessment and collection. The CDP

also give emphasis the need for computerizing data about the city’s unemployed who

are competent and qualified for job placement. Moreover, the city website, Facebook

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and Twitter accounts, and the Sanggunian Panlungsod facebook has created a window

where city residents are informed of what the city government is doing. These online

portals contain a wealth of information about the city government, including public

services related to health, education, peace and order, business and investment

advisory, permits and licenses, employment, procurement, tourism, sports, traffic

situation; a summary of the city governments’ current income and expenditures and

other finances, and the names and contact numbers of city government officials, and

much more. At present, computerization has spread across various departments or

offices of the city government. It is being used to improve records-keeping and data-

base, minimize redundant operational procedures and processes, and reduce red tape.

In determining the benefits reaped from using ICT in improving government

operations, the following observations emerged:

First, Enhanced revenue generation. The computerization of real property tax

mapping and assessment, and business permit and licensing has contributed to

improving efficiency in revenue generation. The use of a system generated

computation of levies for both accounts, and the standardization of their issuances not

to mention the reduced time for paying taxes and processing of permits and licenses

have resulted in a better fiscal management. Furthermore, the cost of filing taxes and

collection is lessened, and cheating and pilferage minimized to a certain extent. This

may have resulted in better compliance in paying taxes thus increasing revenue

collection from local sources particularly business and real property taxes from 2009

to 2011.

Second, Improved document management and work flow for paperless transactions,

and ease in retrieving and dissemination of information and file disposal. To a certain

extent, computerization has enabled line and staff offices and departments of the city

government to simplify records keeping and data-base, weed out redundant system

and procedures, reduced red tape and shortened the time in accessing, transmitting

and releasing critical information and documents. These improved practices were

observed by the researcher of this study at the followings departments and offices and

of the city government: treasury, accounting, assessor, human resources, budget,

general services and planning and development coordinator. In the long run, it is

expected by the city government that these good practices would lead to increased

productivity of the offices or departments concerned.

Third, Transparency in fiscal management, procurement, and other services. As

pointed out earlier in this paper, current annual budgets, statements of accounts and

disbursements, financial reports, planning documents, transactions on infrastructure

and goods and services entered by Bids and Awards Committee (BAC), and Gender

and Development Program Accomplishments Reports for 2010 and 2011 are posted in

the website. The city government initiative to procure goods and services, including

invitation to bid, the notice of award, and approval of contract is also posted in the

city website This is in compliance of RA No. 9184 (2003) known as Procurement

Law, and the Department of Interior and Local Government (DILG) Memorandum

Circular No. 2010-82 which require local government units to exercise transparency

in government operations. The disclosure of these documents may provide the city

residents information of what the city government in doing, and to make the city

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government officials accountable for their decisions and actions. It has also encourage

interested groups to send in feedbacks, questions, and suggestions for improvements.

Similarly, the disclosure of the procurement process in the website bring in more

suppliers and bidders, making the procurement competitive and fair. According to the

Administrative Office of the City General Services Office, the posting of invitation to

bid (ITB) for government services in the website is attracting more bidders, and

makes the work of the BAC easier since the records are readily available. On the

other hand, the opening up of the procurement process to competing bidders and

tenders provide the city government a chance to procure quality products and services

at the lowest cost possible.

Fourth, Expanded reach of information dissemination. The use of a website,

Facebook, Twitter, and e-mail widened the reach of information dissemination to a

wider area and broader audiences about the programs and projects of the city

government and how these are done. These online portals enable the city government

to communicate its programs and projects with different groups and stakeholders in

governance within and outside the city. Furthermore, these give the city government

an opportunity to touch base with Iloilo City residents living in remote areas to

provide them updates on the affairs of the city government, solicit their support or get

them involved in city governance. The city government Facebook and Twitter

accounts contain comments, reactions, and feedbacks of people from different places

on information about the city posted on the ICT portals or on what they personally

observe during their stay in the city. These comments and feedbacks are helping the

city government improve the delivery of services.

Fifth, Facilitates new investments. Information is the investor's best guide when it

comes to investing wisely. This is exactly what the city government had in mind when

it posted in its website the necessary business information to attract investors. The

information include among others, the procedures, requirements, costs, and incentives

of setting up a new business. The primary objective is to create a congenial and

transparent business environment to prospective investors by cutting red tape, save

time, and reduce administrative costs in obtaining permits and licenses, and in paying

taxes, to enable them to perform efficiently. Apparently, this initiative has worked

well with the city’s economic efforts to attract investors. Economic data indicate that

the number of new investments in the city has increased by 29.3% from 2003 to 2010

and information technology is identified as one of the facilitating factors.

Still, challenges remain and the crucial ones include:

Static ICT portals. Although the city government has made progress in

leveraging ICT for improving government operations and the delivery of public

services through its website, Facebook, Twitter, and e-mail, these sites are not

interactive. Residents users are able to read what are posted online but cannot browse

over records and data bases. Communication system is not a two-way process.

Complaints, feedbacks, and inquires are made through telephones and e-mail installed

at the office of the city mayor. Inquires usually get prompt response but complaints

and feedbacks are not. They are usually discussed during the department heads’

regular meeting with the city mayor wherein answers are explored and actions are

decided. Transforming the current status of the city government ICT portals into an

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interactive one would allow people and the city government to communicate and

share information digitally. This kind of ICT has the potential for enhancing the

agenda on anti-corruption, participation, transparency and accountability.

Minimal ICT investment. Establishing an ICT is an expensive decision which

tend to impose a heavy burden on the budgets of local government units (LGUs).

LGUs whose budgets are tight would have difficulty in developing even a most basic

static website. A concomitant problem which confronts all LGUs is that investments

in ICT compete with the provision of basic services for the city constituents. The city

government has been struggling to source funds for its computerization program and

digital land use plan adopting the Geographic Information System. The efforts of the

city government to improve its ICT initiatives illustrate this predicament. The loan

from LOGOFIND project of the Department of Finance-World Bank barely made a

dent on the ICT initiatives of the city government. Funds are still needed to expand

the applications and scope of services covered by ICT to make it more responsive and

accessible to the community.

Minor ICT unit and undermanned. A key driver for sustaining a functional and

dynamic ICT in local government is the support of an established ICT office manned

with competent and permanent ICT-system staff. This requirement insures the

continuity of local governments’ ICT initiatives, and the proper coordination of

system development and the adequacy of data security. The existing ICT is a minor

unit and backstopped by a team composed of four staff members two of whom are

contractual. The current IT management set-up is far from adequate considering its

acknowledged importance in helping achieve the goals of good urban governance.

This inadequacy is also not conducive to promoting and implementing innovative

ideas in ICT.

The scope of ICT applications is minimal. Although the city government has

done much in using ICT to enhance efficiency and productivity in government operation, the

extent of its applications is still restricted. ICT offers local governments the opportunity to

provide more effective public services and deliver those services responsibly. However,

attention to this concern has been minimal. For instance, the use of ICT to reduce the

digital divide between the city government and the residents, particularly the poor and

vulnerable groups, and communities to enable them to access the much-needed

public goods and service that the city government provides to them has been found

wanting. Furthermore, ICT is underutilized as a tool to confront critical problems

triggered by urbanization. Like other highly-urbanized cities in the country, Iloilo

City experiences problems of congestion, environmental degradation, aging

infrastructure, human health concerns, and other basic problems caused by rapid

population growth. The city government has not yet optimized the use of ICT in

confronting the challenges of urbanization.

As the city government confronts these challenges, it has to comprehend its own

long-term needs and priorities and devise a support structures that are adaptable

enough to meet those needs and priorities as they occur over time. Increasingly, ICT

becomes necessary both as a strategic resource and as a tactical tool.

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Conclusion and Recommendations

ICT is a new and essential tool for overcoming challenges of urban governance

whether to ensure immediate and efficient delivery of services, reduce red tape, help

cut redundancies in systems and procedures, promote transparency and accountability,

or achieve the broader goals of economic growth, democratic governance, and an

improved quality of life. The experience of Iloilo City in investing in ICT has

produced positive results in improving government operations. However, its

applications has not been optimized. The initiatives in ICT have been limited to

computerization of routine functions, improving tax collection, and to a certain extent

using ICT for economic promotion to attract investments and jobs. At present, the

level of computerization initiative of the city government may be described as a work

in progress. Much still needs to be done to leverage ICT for further improving

internal government processes and the delivery of services to the citizens. Increasing

investments in ICT is necessary but it does not offer outright benefits to the city

government. The city leadership should think about how to harness ICT to achieve

objectives for good urban governance. ICT is a tool to enable and empower city

government to achieve this objective.

References

Local Publication

City Planning and Development Office and Sangguniang Panlungsod Secretariat.

(2007). Executive-Legislative Agenda 2010 of the City of Iloilo.

_________. (2011). Executive-Legislative Agenda 2011-2013 of the City of Iloilo.

City Planning and Development Office. (2007). City Development Agenda 2010,

2007-2010 Comprehensive Development Plan of Iloilo City.

_________. (2011). City Development Agenda 2011, 2011-2013 Comprehensive

Development Plan of Iloilo City.

_________. (2011). Iloilo City Comprehensive Land Use Plan.

_________. (2011). Socio-Economic Profile of Iloilo City.

Human Resource Management Office, Personnel Schedule. (2012). Iloilo City

Government.

Memoradum Circular No. 2010-83, Department of the Interior and Local

Government, August 31, 2010.

Office of the City Treasurer, Executive Budget of Iloilo City, 2004-2012

The Iloilo City Citizens Charter: A Guidebook on City Government Services (No

Date)

Foreign Publication

Dawes, Sharon S. and Helbig, Natalie. (2010). Information Strategies for Open

Government: Challenges and Prospects for Deriving Public Values from

Government Transparency. Center for Technology in Government,

University at Albany/SUNY.

Lopez Group Foundation. (2008). Iloilo: A Rich and Noble Land. Pasig City,

Philippines: Benpres Publishing.

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McCarthy, Shawn P. (2006). Leveraging ICT: The Real Opportunity for

Achieving Performance in Delivering Government Services, Government

Insights #G1201748.

Michelle W. L. Fong. (2009). Digital Divide: The Case of Developing Countries.

Issues in Informing Science and Information Technology, 6.

Siemens, Economist Intelligence Unit. (2010). ICT for City Management, World

Cities Summit.

Interviews

1. Delia A. Ontal, Supervising Administrative Officer, City General Services

Office

2. Jinny C. Hermano, Local Tresury Operations Officer IV

3. Jose Roni S.J. Penalosa, City Planning and Development Coordinator

4. Katherine E. Eufan, Administrative Officer II, City accounting Office

5. Ma. Millie B. Tan, Administrative Assistant III, City General Services Office

6. Mary Faith Wendam, Administrative Assistant III, Office of the Mayor

7. Melba B. Tenefrancia, Assistant Department Head, City Human Resource

Office

8. Nelson Parreno, City Assessor

9. Ninda O. Atinado, City Budget Officer

10. Noehl D. Las, Information Technology Officer l, Office of the Mayor

11. Norlito C. Bautista, City Administrator

12. Ruth H. Arroyo, Head, Sangguniang Panlungsod