The 17th Sangguniang Panlungsod was inaugurated on July 8, 2025. | Cebu City PIO
CEBU CITY, Philippines – Mayor Nestor Archival Sr. and Vice Mayor Tomas Osmeña made a statement of austerity on the inaugural session of the 17th Sangguniang Panlungsod held on July 8, 2025, which cost the city government “absolutely nothing.”
No lavish spread. Just merienda, and courtesy of city officials themselves.
“Today, ZERO taxpayer money was used to fund the reception of the Inaugural Session. No lavish buffet, just simple merienda dishes for our families and guests. At BOPK, we lead by example and we practice what we preach!” Osmeña said in a Facebook post shortly after the session.
Photos posted by city councilors showed a modest setup of “pika-pika” food at the social hall of the legislative building, paid for personally by Archival and Osmeña, in line with their call for a “skin-and-bones” governance approach amid a looming fiscal crisis.
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According to a report from the Cebu City government, City Hall’s records indicate a departure from previous practice. It was stated that from 2022 to 2024, the city government allocated between P300,000 and P490,000 for inaugural sessions.
Specifically, P300,000 was allocated in both 2022 and 2023 during the terms of Mayor Mike Rama and Vice Mayor Raymond Garcia, while P490,000 was allocated in 2024 under Mayor Raymond Garcia and Vice Mayor Dondon Hontiveros.
For 2025, the allocation was reported to be PO, with Nestor Archival serving as Mayor and Tomas Osmeña as Vice Mayor.
The decision not to spend public funds comes as the new administration grapples with a projected P6.8-billion budget deficit for the remainder of the year.
City Hall finances in distress
During the inaugural session, Archival said that Cebu City’s predicted deficit grew bigger because of overspending in past years. He said the figure was based on consultations with the City Accounting Office and the City Treasurer’s Office.
While the city reportedly still has around P9 billion in existing funds, expected total expenditures could reach P19.7 billion by year-end, creating a shortfall of nearly P7 billion.
“Ang rason man gud ni ani is dako kaayo atong gihimo nga budget unya nigawas ang atong revenue nga nisud, gamay ra kaayo,” Archival explained.
A financial report from the transition team, signed by accountant Emma Villarete, estimates additional revenues of P3.5 billion by the end of 2025. But even this is not enough to offset the gap.
Wage obligations, job cuts
Archival also revealed updated manpower figures: as of June 2025, the city government employed about 8,569 personnel. Salaries for the second half of the year alone are projected to reach P1.2 billion, with Job Order (JO) workers accounting for nearly P497 million.
With rising expenses and revenue constraints, the Archival administration has begun trimming its workforce.
According to Human Resource Development Office chief Henry Tomalabcad, roughly 1,400 out of 3,000 casual employees, nearly 50 percent, have not had their contracts renewed.
Job Order personnel may also be reduced, Archival said, as some contractors remain unpaid due to salary prioritization.
To cut costs further, he directed all department heads to review staff performance and retain only those deemed efficient, keeping only a skeleton workforce.
Nonetheless, Archival gave assurance that essential workers, including street sweepers, garbage collectors, and Barangay Health Workers, have been renewed immediately.
‘No Appointment, No Work’ policy
Earlier, Archival enforced a stricter hiring and deployment policy through a memorandum to all departments, implementing a “No Appointment, No Work” rule effective July 1, 2025.
This means casual and project-based workers without formal appointments are prohibited from reporting for work.
The directive cites Section 22, Rule VI of the 2017 Omnibus Rules on Appointments and Other Human Resource Actions (Revised July 2018), which states that unauthorized appointments are not recognized, and any salary paid may be personally charged to the official who made the assignment.
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