IRR for Municipality to City Conversion

Applies to Section 450 of RA No. 7160 (Local Government Code of 1991) as amended by RA No. 9009 and RA No. 11683.
Governs conversion of a municipality or a cluster of barangays into a component city.
Includes all newly-created component cities and those whose existence commenced post-RA No. 11683.

Rules to be construed in accordance with the policies and objectives of the LGC of 1991 as amended.
DILG, DOF, and DBM shall jointly clarify any doubts or ambiguities.

Two alternative sets of requisites based on income and population or land area:
- Option 1:
  - Income: Locally generated average annual income of Php 100 million (2000 constant prices) for last 2 years (DOF certified).
  - Population: At least 150,000 inhabitants (PSA certified).
  - Or land area: contiguous area of at least 100 sq km (LMB certified).
- Option 2:
  - Income: Locally generated average annual income of Php 400 million (2012 constant prices) for last 2 years (DOF certified).
  - This threshold increases by 5% every 3 years after RA No. 11683 effectivity.
  - Population: At least 100,000 inhabitants (PSA certified).
  - Or land area: contiguous area of at least 100 sq km (LMB certified).
Land area requirement waived if composed of one or more islands; contiguity not required for multiple islands.
Average income excludes specific funds, transfers, and nonrecurring income.
Creation must not reduce original LGU's land area, population, or income below prescribed minima.

Certification from DOF on income requirements and impact on original LGU.
Certification from PSA on population and impact.
Certification from LMB on land area and impact.
Official map indicating proposed city boundaries and road network.
Data on existing and commercial establishments (PSA).
Certification on potable water sources (LWUA or MWSS).
Certification on sewerage, garbage, and waste disposal facilities (local engineer).
Other relevant information as deemed necessary.
Petitioners bear all document preparation costs.

Newly converted cities' NTA shares as municipalities will be ported to their city allotment.
NTA distribution follows Section 285 of RA No. 7160: 50% population, 25% land area, 25% equal sharing.
Portability applies for 3 years from conversion.
DBM to implement adjustments in the fiscal year after receiving notice.
Example illustrates calculation and allocation method.

DOF:
- Issue guidelines for income certification.
- Compute and update income thresholds regularly.
DBM:
- Compute NTA shares.
- Apply NTA portability mechanisms.
- Issue additional guidelines as needed.
DILG:
- Disseminate information on RA No. 11683 and its IRR.
- Gather updates on city creation and share with DBM/DOF.

Repeals inconsistent or contrary issuances.
Separability clause preserves remaining provisions if any part is invalid.
Rules become effective 15 days after publication in the Official Gazette or two newspapers of general circulation.