Module 3
Module 3
This unit presents the general and specific requirements prescribed by the Code for the creation of
LGUs. It also identifies the source of the authority to create LGUs.
LESSON 1
Authority to Create LGUs, General Requirements
and Corporate Existence of LGUs
Objectives
1. Recite the codal provision providing authority to create, divide, merge or abolish local government
units;
2. Summarize the general and specific requirements; and
From the foregoing provision of the Code, it is clear that a province, city, municipality, or any other
political subdivision or unit may be created, divided, merged, abolished, or its boundaries substantially
altered only by a law passed by Congress. In the same vein, the creation, division, merger, abolition, or
substantial alteration of the boundaries of a barangay may be effected through an ordinance of the
sangguniang panlalawigan or sangguniang panlungsod in the case of the barangay located within its
territorial jurisdiction subject to the limitations and requirements prescribed in Book III of the Code.
However, Congress may create barangays in indigenous cultural communities to enhance and speed up the
delivery of services in these areas regardless of the population of the same. It may also create barangays
within the Metropolitan Manila Area.
The phrase “any other political subdivision” refers to the Autonomous Region of Muslim Mindanao
and the Cordillera Administrative Region, as defined in Art. X of the Constitution of the Philippines, and
other political subdivisions that may be created later aside from barangays.
General Requirements for the Creation, Conversion, Division, Merger and Abolition of LGUs
● The Secretary of the Department of Finance (DOF) will attest to the compliance with
the income requirement in the case of provinces and cities, and the provincial treasurer
in the case of municipalities.
● As to the population requirement, the Administrator of the National Statistics Office
(NSO) is the certifying officer,
● while the Director of the Lands Management Bureau (LMB) of the Department of
Environment and Natural resources (DENR) certifies compliance with the land area
requirement.
Abolition
When the income, population, or land area of a local government unit has been irreversibly reduced
to less than the minimum standards prescribed for its creation under Book III of the Code, as certified by
the national government agencies mentioned in Section 7 hereof to the Congress of the Philippines or to
the sanggunian concerned, as the case may be, so much so that its viability and capacity to provide services
is in serious doubt, the local government unit may be abolished (Sec. 9, LGC). A local government created
through a legislative enactment of Congress or through an ordinance of the sangguniang panlalawigan or
In such a law or ordinance, where applicable, abolishing a local government unit shall clearly
specify the local government unit to which the local government unit sought to be abolished will be
attached, merged, or incorporated (Ibid.).
Plebiscite Requirement
The creation, division, merger, abolition, or substantial alteration of boundaries of local
government units will take effect only if approved in a plebiscite. Sec. 10 of the Code provides that “No
creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall
take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the
political unit or units directly affected.”
Under the supervision of the COMELEC, the plebiscite is to be held within 120 days from the
date of the effectivity of the law or ordinance authorizing such action, unless a different date is fixed
by said law or ordinance (Ibid.). It is the duty of the COMELEC to conduct an intensified information
campaign in the LGUs affected or concerned at least twenty days before the plebiscite in the case of
provinces, cities, and municipalities, and ten days, in case of barangays.
Naming of Local Government Units and Other Public Places, Streets and Structures
Pursuant to the Code (Sec. 13) the sangguniang panlalawigan, after consultation with the Philippine
Historical Institute (PHI) should change the name of the following within its territorial boundaries:
1. component cities and municipalities, upon the recommendation of the sanggunian
concerned;
2. provincial roads, avenues, boulevards, thoroughfares, and bridges;
3. public vocational or technical schools and other post-secondary and tertiary schools;
4. provincial hospitals, health centers, and other health facilities; and
5. any other place, building, or structure owned by the provincial government.
Highly-urbanized cities and component cities whose charters or the laws creating them do not allow
their voters to vote for provincial elective officials, through their sanggunians and in consultation with the
PHI may change the name of the following within the limits of their territorial boundaries:
1. barangays within the city upon the recommendation of the barangays concerned;
2. city roads, avenues, boulevards, thoroughfares, and bridges;
3. city hospitals, health centers, and other health facilities;
In consultation with the PHI, sanggunians of component cities and municipalities may change the
name of the following within the boundaries of their territorial jurisdiction:
1. barangays of the city or municipality upon the recommendation of the affected barangay;
2. city, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges;
3. city and municipal public elementary, secondary and vocational or technical schools, post-
secondary and other tertiary schools;
4. city and municipal hospitals, health centers and other health facilities; and
5. any other public place, building, or structure owned by the city or municipal government.
Rules
Rules on the naming of or changing of the name of local government units, and places are
prescribed by the Code (Sec. 13 pars. d, e, f, g, and h), namely:
⮚ No local government unit, institution, place, building, or structure may be named after a living
person.
⮚ Any change in name may not be made often or more frequent than once every ten (10) years.
⮚ A change of name of public school may be effected or made only upon the recommendation of the
local school board concerned.
⮚ A change of name of public hospitals, health centers, and other health facilities shall be made only
upon the recommendation of the local health board concerned.
⮚ The Office of the President, the representative of the legislative district concerned, and the Bureau
of Posts shall be notified of any change of name.
LESSON 2
Specific Requirements for the Creation, Division, Merger and Abolition of LGUs
Objectives
At the end of this lesson the student should be able to:
2. Familiarize himself with the steps in the creation, division, merger and abolition of barangays,
municipalities, cities and provinces.
Barangays
The Code provides that “A barangay may be created, divided, merged, abolished, or its boundaries
substantially altered, by law or an ordinance of the sangguniang panlalawigan or sangguniang
panlungsod… In the case of the creation of barangays by the sangguniang panlalawigan, the
recommendation of the sangguniang bayan concerned shall be necessary” (Sec. 385).
Strictly speaking, the measures passed by the sangguniang panlalawigan and sangguniang
panlungsod go by the nomenclatures ordinance/resolution, whereas, the enactments of the Congress are
termed law, statute or act. Therefore, the interpretation that Sec. 385 allows the creation by the sangguniang
panlalawigan or the sangguniang panlungsod of a barangay by law is incorrect. The sangguniang
panlalawigan or sangguniang panlungsod can only create a local government unit through an ordinance.
That the foregoing is the intent of the law is supported by Art. 6 of the Code which clearly states that “A
local government unit may be created or its boundaries substantially altered either by law enacted by
Congress in the case of province, city, municipality, or by ordinance passed by the sangguniang
panlalawigan or sanggunian panlungsod concerned in the case of a barangay . . .” Save the case of
barangays in indigenous cultural communities created by an act of Congress to “enhance the delivery of
basic services” to such communities as provided by Sec. 386, LGC, as cited earlier.
The creation, division, merger, abolition, or substantial alteration of the boundaries of a barangay
must be approved by a majority of the votes, not majority of all voters, cast in a plebiscite called for the
purpose by the COMELEC in the local government unit, if there is only one LGU affected, or units, if there
is more than one LGU directly affected. Generally, the plebiscite is to be conducted within 120 days from
the date the ordinance effecting or proposing to effect the creation of a new barangay, unless, a different
date is set by the ordinance (Sec. 385, LGC). The recommendation of the sangguniang bayan concerned is
necessary in the case of the creation of a barangay by the sangguniang panlalawigan (Ibid.).
Requisites
There are two requisites for the creation of a barangay, namely: territory and population. Sec.
386, Book III of the Code requires the territory of a new barangay to be contiguous. Both the 1987 and
1973 Constitutions of the Philippines require local government units to have contiguous, compact and
Municipalities
Subject to the provisions of Sec. 6 of the Code, a municipality may be created if it has the following
requirements, namely:
● An average annual income of at least P2,500,000.00 for at least two consecutive years based on
1991 constant prices as certified by the provincial treasurer, including the income accruing to the
general fund, but excluding special funds, transfers and non-recurring income.
● A population of at least 25,000 inhabitants as certified by the NSO; and
● Contiguous territory of at least 50 square kilometers as certified by the LMB. Where the
municipality proposed to be created is composed one or more islands, aforecited requirement on
contiguity of territory and the size of the land area are waived (Sec. 442 (a, b, and c), LGC).
Cities
A municipality or a cluster or group of barangays may be converted into a component city if it has
an average annual income of at least twenty million pesos for the last two consecutive years based on 1991
constant prices, as certified by the DOF and either a contiguous territory of at least 100 square kilometers,
as certified the LMB, or a population of not less than 150,000 inhabitants (Sec. 450, (a), (i) and (ii). This
means that a city can be fashioned out of a municipality or an aggregate of barangays with an income of
P20,000,000.00 as defined herein and either of the last two requisites: a population of 150,000 inhabitants
or land area (100 sq. kms.).
However, the required land area and contiguity of territory are waived if the city proposed to be
created is made of an island or group of islands (Ibid., par. b). Simply stated, if a city is to be created out of
an island or group of islands, the size of that island or group of islands which will constitute the territory of
the proposed city need not be contiguous or compact, as islands are disparate, and may be smaller than 100
sq. kms. in size.
Similarly, there is still the common requirement that the creation of the new city shall not reduce
the land area, population, and income of the original unit or units affected by such creation to less than the
minimum requirements as prescribed in the Code, namely: land area of 100 sq. kms.; population of 150,000
inhabitants and an income of P20,000,000.00 (Ibid., par. ii).
Provinces
Develop a matrix summarizing the requirements for the creation of LGUs. The left side of the matrix should
indicate the LGUs (barangay, municipality, city or province). on the right side, should be written the
requirements as to populations, land area, and income (30 points).
https://www.officialgazette.gov.ph/downloads/1991/10oct/19911010-RA-7160-CCA.pdf