LocGov July 18, 2013 1

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POLITICAL AND CORPORATE NATURE OF LGUS
Sec 5 (d) Rights and obligations existing on the date of effectivity of this
Code and arising out of contracts or any other source of prestation
involving an LGU shall be governed by original terms and conditions of
said contracts or the law in force at the tine such rights were vested.
Sec. 15 Political and Corporate Nature of LGUs Every local government
unit created or recognized under this code is a body politic and corporate
endowed with powers to be exercised by it in conformity with law. As
such, it shall exercise powers as a political subdivision of the National
Government and as a corporate entity representing the inhabitants of its
territory.
Sec. 5(d) respects vested rights and respects the Constitutional rule that
the obligations of contracts cannot be impaired.
Sec. 15 underscores the dual nature of a municipal corporation, a
traditional concept since the early days when the existence of municipal
corporations was recognized in the field of Political Law.
The first sentence gives legal support to Sec. 22, which enumerates the
corporate powers that an LGU can exercise as a corporate entity.
Corporate powers refer to exercise of proprietary functions and to
exercise of traditional corporate powers like the power to enter
contracts and the power to acquire and convery property, real or
personal.

ABATEMENT OF NUISANCE
Section 447. Powers, Duties, Functions and Compensation.
(a) The sangguniang bayan, as the legislative body of the municipality,
shall enact ordinances, approve resolutions and appropriate funds for the
general welfare of the municipality and its inhabitants pursuant to
Section 16 of this Code and in the proper exercise of the corporate
powers of the municipality as provided for under Section 22 of this Code,
and shall:
x x x
4) Regulate activities relative to the use of land, buildings and
structures within the municipality in order to promote the general
welfare and for said purpose shall:
(i) Declare, prevent or abate any nuisance;
Section 458. Powers, Duties, Functions and Compensation.
(a) The sangguniang panlungsod, as the legislative body of the city,
shall enact ordinances, approve resolutions and appropriate funds
for the general welfare of the city and its inhabitants pursuant to
Section 16 of this Code and in the proper exercise of the corporate
powers of the city as provided for under Section 22 of this Code, and
shall:
x x x
(4) Regulate activities relative to the use of land, buildings and
structures within the municipality in order to promote the
general welfare and for said purpose shall:
(i) Declare, prevent or abate any nuisance
BASIC SERVICES AND FACILITIES
Sec. 17 mentions the discharge of functions and taking over of
responsibilities of national offices and agencies that, by the provisions of
the code, have been devolved to local government units such as
functions pertaining to agriculture, health, public works, social welfare.
Education, tourism, telecommunications, housing projects, etc.
Agriculture includes research services, water and soil conservation,
seeding services, marketing, setting up of demonstration farms and
incentives for livestock and poultry and fishing activities, etc.
Health control of diseases, treatment, maintenance of health and day
care centers, etc.
Social Services protection for elderly and disabled, rehabilitation of
beggars, juvenile delinquents, drug addicts, observing proper nutrition,
family planning, livelihood projects,
Infrastructure municipal or local roads and bridges, irrigation systems,
school buildings, artesian wells, water supply systems, flood control,
drainage, sewage
Information services information on job placement, investments, tax
matters, marketing systems, maintenance of public libraries
Par. C and D: set forth some limitations that must be observed by or
binding upon LGUs
Par. E, H, I refer to the devolution of national functions to LGUs.
Services and facilities are implemented by ordinances
Economic enterprises owned by LGUs in their proprietary capacity may
be sold, leased, encumbered, or otherwise disposed of by local
ordinances by the local legislative concerned.
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POWER TO GENERATE AND APPLY RESOURCES
Sec. 18 Power to Generate and Apply Resources. - Local government
units shall have the power and authority to establish an organization
that shall be responsible for the efficient and effective implementation of
their development plans, program objectives and priorities; to create
their own sources of revenues and to levy taxes, fees, and charges which
shall accrue exclusively for their use and disposition and which shall be
retained by them; to have a just share in national taxes which shall be
automatically and directly released to them without need of any further
action; to have an equitable share in the proceeds from the utilization
and development of the national wealth and resources within their
respective territorial jurisdictions including sharing the same with the
inhabitants by way of direct benefits; to acquire, develop, lease,
encumber, alienate, or otherwise dispose of real or personal property
held by them in their proprietary capacity and to apply their resources
and assets for productive, developmental, or welfare purposes, in the
exercise or furtherance of their governmental or proprietary powers and
functions and thereby ensure their development into self-reliant
communities and active participants in the attainment of national goals.
Sec. 18 covers the revenue-raising power of local governments which
shall include not only the taxing power of LGUs and shares in the
national taxes but also acquisition, development, leasing, encumbrance,
alienation or disposition of real or personal property held by LGUs in
their proprietary capacity.
Resources include taxes, revenues, gains, assets, etc.
Resources are applied for productive, developmental, and welfare
purposes, either in the exercise or furtherance of governmental or
proprietary functions
If they do, the LGUs are expected to be developed as self-reliant
communities and thereby actively participate in the attainment of
national goals.
Such goals center on economic, social, and political progress of the
nation
LGUs to set up an organization that shall be responsible for the efficient
and effective implementation of their development plans, program
objectives, and priorities.
It is believed that municipal powers are not exercised solely by
ordinances, because it is an acceptable proposition that when an
ordinance is passed, administrative details for effective implementation
of said ordinance may be provided for by the LCE.

EMINENT DOMAIN
Section 19. Eminent Domain. - A local government unit may, through its
chief executive and acting pursuant to an ordinance, exercise the power
of eminent domain for public use, or purpose or welfare for the benefit of
the poor and the landless, upon payment of just compensation, pursuant
to the provisions of the Constitution and pertinent laws: Provided,
however, That the power of eminent domain may not be exercised unless
a valid and definite offer has been previously made to the owner, and
such offer was not accepted: Provided, further, That the local
government unit may immediately take possession of the property upon
the filing of the expropriation proceedings and upon making a deposit
with the proper court of at least fifteen percent (15%) of the fair market
value of the property based on the current tax declaration of the
property to be expropriated: Provided, finally, That, the amount to be
paid for the expropriated property shall be determined by the proper
court, based on the fair market value at the time of the taking of the
property.
Power of eminent domain exercised by the Chief Executive of the LGU
under a local ordinance
Power of Eminent Domain private property being taken (after owner
refuses to sell the same to the LGU) upon payment of just compensation
and the taking must be for public use
LGU acquires right to immediately take possession after filing of
expropriation proceedings in court and upon depositing 15% deposit
Court to determine just compensation based on the fair market value of
the property at the time of the taking
The determination of just compensation is a function reserved only for
the courts of justice and may not be usurped by any other branch or
official of the Government.
Just Compensation the equivalent got the value of the property at the
time of its taking; it is a fair and full equivalent for the loss sustained.
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Market Value sum of money which a person desirous, but not
compelled to buy, and an owner willing but not compelled to sell, would
agree on as a price to be given and received for such property.
Medium for compensation cash
Other modes bonds pwede rin
Title to the property shall pass from the owner to the expropriator only
upon full payment of just compensation
15% down payment is based on FMV as appearing in the current tax
declaration

Reclassification of Lands
The classification of agricultural lands by the LGU is through the
ordinance passed by the Sanggunian AFTER public hearing, subject to
percentage limitations
Percentage limitations may be increased by the President under certain
conditions
Said ordinance shall in no way repeal, amend, or modify in any manner
the provisions of the Comprehensive Agrarian Reform Law
If a national law requires approval of the reclassification, paragraph D
will apply.
o (d) Where approval by a national agency is required for
reclassification, such approval shall not be unreasonably withheld.
Failure to act on a proper and complete application for reclassification
within three (3) months from receipt of the same shall be deemed as
approval thereof.
Use of land resources by the LGUs shall be in conformity with zoning
ordinances which local legislative assemblies of LGUs may pass.