SOURCES OF INCOME IN THE BARANGAY

     A. The barangay has the power of taxation. It is the power of the barangay to raise revenue by imposing taxes, fees, and other charges on the barangay residents and business.

     The barangay may levy taxes, fees, and charges:

     1.  Taxes - on stores and retailers

• Gross sales or receipts of Php. 50,000.00 or less in the case of cities
• Gross Sales or receipts of Php. 30,000,00 or less in the case of municipalities, at a rate not exceeding one percent (1%) on such gross sales or receipts.

     2.  Service Fees or charges

     3.  Barangay Clearance

     4.  Other fees and charges such as

• Commercial breeding of fighting cocks, cockfights and cockpits
• On places of recreation which charge admission fees
• On billboards, signboards, neon signs and outdoor advertisements.

     B. Shares of the Barangay in Taxes Collected

      1.  Fifty percent (50%) of the proceeds of the community tax collected through the barangay treasurer shall accrue to the barangay where the tax is collected. (sec. 164c)

      2.  Proceeds of real property tax shall be as follows:

• In case of provinces, twenty-five percent (25%) shall accrue to the barangay where the property is located. ( Sec. 271-a3)
• In case of cities, thirty percent (30%) shall be distributes among the component barangays of the cities where the property is located in the following manner; (Sec. 271-b2)

            i.   Fifty percent (50%) shall accrue to the barangay where the property is located.

            ii.  Fifty percent (50%) shall accrue equally to all component barangays of the city

• In case of municipalities within Metro Manila area, thirty percent (30%) shall be distributed among the component barangays of the municipality where the property is located in the following manner: (sec 271-c3)

            i.   Fifty percent (50%) shall accrue to the barangay where the property is located.

            ii,  Fifty percent (50%) shall accrue equally to all component barangays of the municipality.

            iii. The barangay shall be entitled to forty percent (40%) of the proceeds collected by the province out of the sand, gravel and other quarry materials extracted from the barangay concerned.

      C. Shares of the barangay in the proceeds of taxes collected by the national government.

           The following are the shares of barangays from the national government:

• Twenty percent (20%) of the internal revenue allotment share.
• Thirty five percent (35%) of the forty percent (40%) of the gross collection derived by the national government from the utilization of national wealth.

Barangay Peace and Order Committee (BPOC)

     The Barangay Peace and Order Committee was created by law, E.O. 366 further amending E.O. 309, S. 1987 entitled "Reorganizing the POC". As amended by E.O. 320, S. 1988 and E.O. 20, S. of 1992 and organizing the Barangay Peace and Order Committees as the implementing arm of the city/municipal POC at the Barangay.

     The BPOC shall be composed of the following:

• Punong Barangay as Chairman
• SK Chairman
• A member of the Lupong Tagapamayapa to be designated by the Punong Barangay
• A barangay tanod to be designated by the Punong Barangay
• A public school teacher to be designated by the school principal or head teacher
• A representative from the interfaith group/a senior citizen representative
• At least three (3) members of existing barangay based anti-crime or neighborhood watch groups or an NGO representative well-known in the community
• A PNP officer to be designated by the Chief of Police of the city/municipality.

     The Punong Barangay can appoint an additional sectoral member in the community depending on the situation and needs in the area the Punong Barangay in his capacity as chairman of the BPOC may appoint additional sectoral representative.

     The BPOC shall have the following functions and responsibilities:

• Monitor and coordinate the implementation of peace and order programs and projects at the barangay level;
• Serves as an information-gathering mechanism;
• Monitor and check the nefarious activities of criminal elements;
• Identify barangay constituents with strong deviant behavior for referral to appropriate authorities;
• Maintain continuing dialogue, close coordination and rapport with the higher levels of the peace and order and public safety councils in their area of responsibility;
• Monitor, coordinate and supervise the operation of all community-based anti-crime movements within the barangay;
• Make periodic assessment of the prevailing peace and order situation in their respective areas of responsibility and submit report with appropriate recommendations to the higher level Peace and Order Council, and
• Perform such other functions, which may be assigned by the higher level peace and order councils.

Budget Process: Budget Authorization (October 20-October 31)

     This stage of the budget process is the adoption and enactment of a Barangay Budget into a General Appropriations Ordinance (GAO) - This is provided in Section 391 (a) (3) "the Sangguniang Barangay shall enact annual and supplemental budgets in accordance with the provisions of this Code".

     The GAO authorizes the Punong Barangay and other Barangay Officials to carry out delivery of basic services and to implement priority development projects.

     The GAO provides funds to support such undertakings.

What are the contents of the Barangay Budget?

     The Annual Barangay Budget document shall contain the following:

• Budget Message
• Local Expenditures Program or "Proposed General Barangay Appropriation Bill"
• Summary of Income and Expenditure (Past Year, Current Year and Budget Year), and
• Summary of Actual and Estimated Output.

When is the Barangay Budget Prepared?

     The Punong Barangay shall prepare the barangay budget for the coming Fiscal Year upon receipt of the detailed Statement of Income and Expenditures from the Barangay Treasurer on or before September 15 of each year.

Who prepares the Barangay Budget?

     The Punong Barangay (PB) with the assistance of the Barangay Treasurer and in consultation with the Sangguniang Barangay (SB) and Barangay Development Council (BDC) prepares the barangay budget, (Section 389 (b) (7)) consisting of the following:

1. Estimate of Income

2. Total Appropriations as Proposed by the Punong Barangay (PB)

The Barangay Budget Process

     The specific provision provided in the LGC in relation to the start of the budget process is article 423 on the Preparation of Barangay Budgets.

     Letter b of this Article provides that "on or before the fifth (5th) day of September of each year, the city or municipal treasurer jointly with the city or municipal accountant, shall issue a certified statment covering the actual income of the past year and estimates of income of the current and ensuing fiscal year from local sources for the barangay concerned.  Based on such certified statements the barangay treasurer shall submit on or before the fifteenth (15th) day of September of each year to the punong barangay a statement covering the estimates of income and expenditures for the past, current and ensuing fiscal years."

Procedure for Execution

1. If the execution be for the payment of money, the party obliged is allowed a period of five (5) days to make a voluntary payment, failing which, the Punong Barangay shall take possession of sufficient personal property located in the barangay, of the party obliged to satisfy the settlement or award from the proceeds of the sale thereof with legal interest such sale to be conducted in accordance with the procedure herein provided. If sufficient personal property exists, the party obliged is allowed to point out which of them shall be taken possession of ahead of the others. If personal property is not sufficient to satisfy the settlement or award, the deficiency shall be satisfied in accordance with the applicable provisions of the Rules of Court.
2. If it be for the delivery or restitution of property located in the barangay, the punong barangay shall oust therefrom the person against whom the settlement or award is rendered and place the party entitled thereto in possession of such property.
3. If it be for the delivery or restitution of property located in another barangay of the same city or municipality, the Punong Barangay issuing the notice shall authorize the punong barangay of the barangay where the property is situated to take possession of the property and to act in accordance with paragraph (b) Rule, KPR.
4. If a settlement or award directs a party to execute a conveyance of land, or to deliver deeds or other documents, or to perform any other specific act, and the party fails to comply within the time specified, the Punong Barangay may direct the lupon secretary to perform the act at the cost of the disobedient party and the act when so done shall have like effects as if done by the party.

Execution of Settlement or Award

Execution shall issue only upon the expiration of ten (10) days from date of settlement or receipt of award unless repudiation of the settlement has been made or a petition to nullify the award has been filed prior to the expiration of the said period.

Modes of Execution

The amicable settlement or arbitration award may be enforced by execution by the lupon within six (6) months from date of the settlement or date or receipt of the award or from the date the obligation stipulated in the settlement or adjudged in the arbitration award becomes due and demandable. After the lapse of such time, the settlement or award may be enforced by the appropriate local trial court pursuant to the applicable provisions of the Rules of Court. An amicable settlement reached in a case referred by the court having jurisdiction over the case of the lupon shall be enforced by execution by the said court.

Motion for Execution

The disputant/s may file a motion with the Punong Barangay, copy furnished to the other disputant/s, for the execution of a final settlement or award which has not been complied with.

Hearing

On the day the motion for execution is filed, the Punong Barangay shall set the same for hearing on a date agreed to by the movant, which shall not be later than five (5) days from the date of the filing of the motion. The Punong Barangay shall give immediate notice of hearing to the other party.

During the hearing, the Punong Barangay shall ascertain the fact on non-compliance with the terms of the settlement or award. Upon such determination of non-compliance, the Punong Barangay shall strongly urge the party obliged to voluntarily comply with the settlement or award.

Notice of Execution

The Punong Barangay shall within five (5) days from the day of hearing, determine whether or not voluntary compliance can be secured. Upon the lapse of said five day period, there being no voluntary compliance, he shall issue a notice of execution in the name of the lupong tagapamayapa. The said notice must intelligently refer to the settlement or award and the amount actually due thereunder if it be for money, or the terms thereof which must be complied with.

Parties may go direct to Court

     The parties may go direct to court in the following instances:

1. Where the accused is under detention;
2. Where a person has otherwise been deprived of personal liberty calling for habeas corpus proceedings;
3. Where actions are coupled with provisional remedies such as preliminary injunction, attachment, delivery of personal property, and support pendente lite; and
4. Where the action may otherwise be barred by the statute of limitations.

     The customs and traditions of indigenous cultural communities shall be applied in settling disputes between members of the cultural communities.

Transmittal To Court

     The secretary of the lupon shall transmit the settlement of the arbitration award to the appropriate city or municipal court within five (5) days from the date of the award or from the lapse of the ten-day period repudiating the settlement and shall furnish copies thereof to each of the parties to the settlement and the lupon chairman.

Repudiation

     Any party to the dispute may, within ten (10) days from the date of the settlement, repudiate the same by filing with the lupon chairman a statement to the effect sworn to before him, where the consent is vitiated by fraud, violence, or intimidation. Such repudiation shall be sufficient basis for the issuance of the certification for filing a complaint.

Execution

     The amicable settlement or arbitration award may be enforced by the execution by the lupon within six (6) months from the date of the settlement. After the lapse of such time, the settlement may be enforced by action in the appropriate city or municipal court.

Effects of Amicable Settlement

     The amicable settlement and arbitration award shall have the force and effect of a final judgment of a court upon the expiration of ten (10) days from the date thereof, unless repudiation of the settlement has been made or a petition to nullify the award has been filed before the proper city or municipal court.

     However, this provision shall not apply to court cases settled by the lupon under the last paragraph of Section 408 of RA. 7160, in which case the compromise settlement agreed upon by the parties before the lupon chairman or the pangkat chairman shall be submitted to the court and upon approval thereof, have the force and effect of a judgment of said court.

Arbitration

     The parties may, at any stage of the proceedings, agree in writing that they shall abide by the arbitration award of the lupon chairman or the pangkat. Such agreement to arbitrate may be repudiated within five (5) days from the date thereof for the same grounds and in accordance with the procedure hereinafter prescribed. The arbitration award shall be made after the lapse of the period for repudiation and within ten (10) days thereafter.

     The arbitration award shall be in writing in a language or dialect known to the parties. When the parties to the dispute do not use the same language or dialect, the award, shall be written in the language or dialect known to them.

Form of Settlement

     All amicable settlements shall be in writing, in a language or dialect known to the parties, signed by them, and attested to by the lupon chairman, as the case may be. When the parties to the dispute do not use the same language or dialect, the settlement shall be written in the language or dialect known to them.

Failure to Appear

     The complaint may be dismissed when complainant, after due notices, refuses or willfully fails to appear without justifiable reason on the date set for mediation, conciliation or arbitration. Such dismissal ordered by the Punong Barangay/pangkat chairman after giving the complainant an opportunity to explain his non-appearance shall be certified to by the lupon or pangkat secretary as the case may be, and shall bar the complainant from seeking judicial recourse for the same cause of action as that dismissed.

     Upon a similar failure of the respondent to appear, any counterclaim he has made that arises from or is necessarily connected with complainant's action, may be dismissed. Such dismissal, ordered by the Punong Barangay/pangkat chairman after giving the respondent an opportunity to explain his non-appearance shall be certified to by the lupon or pangkat secretary, as the case may be, and shall bar the respondent from filing such counterclaim in court or any government office for adjudication.

     Further, in all cases where the respondent fails to appear at the mediation proceedings before the Punong Barangay it is mandatory for the latter to constitute the pangkat pursuant to Section 1 (c), Rule III KPR; but the respondent's refusal or willful failure to appear without justifiable reason before the pangkat, as determined by the latter after notice of hearing, shall be a sufficient basis for the issuance of a certification for filing complainant's cause of action in court or with the proper government agency or office. (Sec. 8, Rule VI, KPR).

    Refusal or willful failure of any party or witness to appear before the lupon or pangkat in compliance with a summons issued pursuant to the provisons of the Katarungang Pambarangay law, may be punished by the city or municipal court as for indirect contempt of court upon application filed therewith by the lupon chairman, the pangkat chairman, or by any of the contending parties. Such refusal or willful failure to appear shall be reflected in the records of the lupon secretary or in the minutes of the pangkat secretary and shall bar the complainant who fail to appear, from seeding judicial recourse for the same cause of action and the respondent who refuses to appear, from filing any counterclaim arising out of or necessarily connected with the complaint. (Sec. 515, LGC)

Pangkat has no POWER to punish

     The Lupon or Pangkat does not have the power to directly punish contemptuous acts, said power being an inherent attribute of a court. The sanctions for said acts are imposed by the city or municipal court upon application filed therewith by the Lupon Chairman, the Pangkat Chairman, or by any of the parties.

     The rationale behind this prohibition is that a charge for contempt of court is in the nature of a criminal action and the rules of procedure and constitutional guarantees governing criminal prosecutions which are applicable thereto are not observed in barangay proceedings.

     For this same reason, the Lupon or the Pangkat would be precluded from imposing any criminal sanction such as imprisonment or fine upon a party to a barangay settlement proceeding.

Proceedings not Investigative

     The barangay settlement procedure is compulsory for all cases falling within the authority of the lupon. The only exceptions to this rule are those cases enumerated in Section 408 of RA. 7160. Moreover, the said barangay proceedings are not investigative in nature but conciliatory. In the exercise of their conciliation functions, the Punong Barangay and the Pangkat ng Tagapagkasundo, explore all avenues to obtain an amicable settlement from the parties. A hearing of both parties, not an investigation of the incident involved, is necessary to find out how far each party is willing to compromise their respective interests to avoid a court litigation.

Appearance of Parties

     In all katarungang pambarangay proceedings, the parties must appear in person without the assistance of counsel or representative, except for minors and incompetents who may be assisted by their next-of-kin who are not lawyers.