Reversion of Manila's Sinking Fund

Republic Act No. 6039, amending Sec. 18(cc) of Republic Act No. 409 (Revised Charter of the City of Manila), mandates creation of a sinking fund.
The sinking fund is sourced from 30% of the gross market fee receipts.
Intended uses include amortization, financing new markets, remodeling/replacing old market buildings, purchasing buildings and sites for public market purposes, and constructing market facilities.
Until old self-liquidating markets are replaced/reconstructed as per Market Committee specifications, market fee collections are to be allocated 70% to the city's special fund and 30% to the sinking fund.

On December 28, 1972, a contract was executed between the City of Manila and Asiatic Integrated Corporation for the management of 35 public markets and talipapas.
The contract mandates appropriation of no less than 30% of the gross market fee receipts from fiscal year 1971-1972 for maintenance, repair, reconstruction, development, and rehabilitation of said markets.

By the time of the contract, there was an accumulated sinking fund amounting to P3,696,921.99.
This sum represents 30% of gross market fees but was not appropriated as required by law.

The accumulated sinking fund is no longer needed for its original purposes since Asiatic Integrated Corporation assumes responsibility for market improvements.
The city has urgent pending public works projects, such as street construction, repair, and estero dredging and clearing, lacking sufficient funds.
Utilizing the accumulated sinking fund for these urgent projects is necessary to ensure their successful undertaking.

President Ferdinand E. Marcos, under Constitutional powers and proclamations related to martial law, authorizes the reversion of the P3,696,921.99 sinking fund to the City's General Fund.
The City of Manila is authorized to appropriate this reverted fund for its public works projects.
The decree takes effect immediately upon issuance on November 26, 1973.

Sinking fund: a reserved portion of market fees for specific public market-related capital expenses.
Reversion: the legal act of redirecting reserved funds to a different government fund.
Contractual delegation: transfer of market maintenance responsibilities to a private entity with budgetary provisions.
Public works prioritization: allowing fund reallocation to address more urgent infrastructural needs.
Presidential decree: a law issued by the President under emergency powers granted by the Constitution and special proclamations, which has immediate force of law.