Title
One-Year Moratorium on City Conversion
Law
Memorandum Circular No. 33
Decision Date
Jun 17, 1999
A memorandum circular is issued in the Philippines imposing a one-year moratorium on the conversion of municipalities into cities, emphasizing the importance of political awareness and participation in decision-making processes.

Questions (MEMORANDUM CIRCULAR NO. 33)

It enjoins all municipal mayors to observe a one-year moratorium on initiating the conversion of municipalities into cities, pending policy study and recommendations.

Sections 7, 449, and 450 of Republic Act No. 7160 (Local Government Code of 1991) are cited.

Conversion should be contingent on clear economic growth and social transformation, considering factors such as health of the local economy, employment opportunities, access to basic urban services and facilities, adequate infrastructure (power, water, telecommunications), spaces/sites for business, and accessibility to other urban/growth centers.

Examples include socio-economic and commercial development, growth of service-sector employment, banking/financial/investment centers, private investments, public spending, improved physical infrastructure, higher forms of transportation systems, rise of business districts, social/entertainment/cultural amenities, and capability to address environmental impacts.

The municipality must ensure that its residents possess a minimum level of political awareness and participation in the decision-making process granting the locality legal stature as a higher level of local government.

All municipal mayors and other municipal officials are enjoined to observe the moratorium.

One (1) year from the date of effectivity of the Memorandum Circular.

It takes effect immediately.

The Secretaries of the Department of the Interior and Local Government (DILG), the Department of Finance (DOF), and the Department of Budget and Management (DBM) are instructed to constitute themselves into a Policy Group.

The Policy Group must study pertinent provisions of law and public policy relative to conversion of municipalities into cities and submit recommendations within one (1) year from issuance of the Memorandum Circular.

The Secretaries of DILG, Finance, and Budget and Management.

Adequate and well-maintained physical infrastructures and services such as power, water, and telecommunication services; suitable spaces and sites for business; and accessibility to other urban and growth centers.

It requires that conversion reflect clear manifestation of economic growth and social transformation, supported by factors like local economy health, employment, urban services, infrastructure, investment, and amenities.

It states that conversion should consider opportunities for socio-economic and commercial development, including growth of service-sector production and employment, private sector investments, and public spending.

It emphasizes the locality’s capability to adequately address potential environmental impact and other urbanization concerns.

They are ordered to observe a moratorium in initiating conversion to cities for one year, meaning they should not initiate conversion proceedings during that period.


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