February 5, 2023

Councilor Isabelo Cosalan, Jr. is pushing for the creation of the City Enterprise Development and Management Office (Cedmo) of Baguio.

In a proposed ordinance, Cosalan said the creation of Cedmo is expected to enhance the city’s revenue by developing and improving the operation and management of local economic enterprises.

Cosalan said there is a need to consolidate city government-run income generating endeavors to streamline their operations for efficient conduct of business with the end view of making commercial undertakings self-sufficient and as major sources of city government revenue.

He added dynamic local economic enterprises offering consumer goods and services to the public and are owned and operated by the city government can act as a force to put in check the access to or availability of supplies into the market as well as the movement of prices of goods and services.

The office shall be a regular department of the city government to hold office within the premises of Baguio City Hall with field offices at the city market and other strategic areas in the city as deemed necessary to facilitate the discharge of its functions.

The Cedmo will advise or recommend appropriate action to the city council and the executive department on matters of entrepreneurial concerns, to prepare annual and five-year business plans of local economic enterprises (LEEs), to conduct annual review and assessment of LEEs on financial self-sufficiency, to spearhead the conduct of feasibility studies of proposed LEEs and enhancement programs for underperforming business ventures, and to keep an updated record or inventory of city government-owned and operated enterprises including partnership ventures and their network.

The Cedmo shall maintain a balanced business atmosphere that allows private enterprises to flourish alongside government business undertakings.

It shall have five divisions: Research, Planning, and Enterprise Development; Finance; Marketing and Promotion; Sales, Lease, and Rentals; and Customer and Technical Services.

A Local Economic Enterprise Board (LEEB) shall be created to be composed of the city mayor, city vice mayor, city treasurer, city accountant, one representative from the local business sector, one representative from the local academe business school, and one representative from the local cooperative sector. 

Among themselves, the members shall elect a board chairperson and a secretary with a term of two years.

The LEEB shall serve as the review and advisory committee for the Cedmo in the operation of the city-government owned and operated enterprises. It shall review the performance of these enterprises in accordance with laws, local ordinances and resolutions, and their respective approved business plans.

Likewise, it shall recommend actions for the improvement of the operation of these enterprises, relative to their performance review and independent audit reports.

According to the proposed ordinance, the local economic enterprises that failed to generate revenue to sustain their operations in line with their business plans shall be considered “non-performing or underperforming.” 

In this case, facility utilization and cost audits shall be conducted immediately to determine if a non-performing or underperforming enterprise shall be allowed to operate and shall be reverted to its mother office.

For the first two years of the organization period, an amount of P500,000 shall be appropriated each year to cover the necessary funding requirements of the proposed department.

The proposed ordinance was approved on first reading and was referred to the committee on ethics, governmental affairs, and personnel for review. – Jordan G. Habbiling