| SUBJECT: The Rule on ‘Creation and Conversion’ of LGUs (Requirements) |
I. Introduction
This memorandum exhaustively examines the legal framework governing the creation and conversion of local government units (LGUs) in the Philippines. The process is a significant exercise of legislative power, constrained by constitutional and statutory mandates designed to ensure the viability and genuine decentralization of local governance. The primary sources of law are the 1987 Constitution, the Local Government Code of 1991 (Republic Act No. 7160), and pertinent jurisprudence. This memo will detail the constitutional basis, statutory requirements, procedural steps, and judicial interpretations that define and limit the power to create, divide, merge, abolish, or convert LGUs.
II. Constitutional Foundation
The power to create or alter LGUs is fundamentally a legislative power. Section 10, Article X of the 1987 Constitution provides: “No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered, except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected.” This provision establishes two non-negotiable conditions: 1) compliance with criteria in the Local Government Code, and 2) approval via a plebiscite. It embodies the principle that such changes are not merely political acts but must involve the direct consent of the affected populace.
III. Statutory Authority: The Local Government Code of 1991
Republic Act No. 7160, the Local Government Code, operationalizes the constitutional mandate. Its relevant provisions are found primarily in:
* Title II, Chapter 1: Creation, Division, Merger, and Abolition of LGUs.
* Title II, Chapter 2: Corporate Powers and Attributes of LGUs.
* Title III, Chapter 1: The Barangay.
* Title III, Chapter 2: The Municipality.
* Title III, Chapter 3: The City.
* Title III, Chapter 4: The Province.
The Code prescribes specific income, population, and land area requirements for each level of LGU, alongside procedural rules for legislation and plebiscite.
IV. General Requirements for Creation and Conversion
For any creation, division, merger, or conversion, the following are universally required:
V. Specific Criteria for Each LGU Level
The Local Government Code sets minimum quantitative criteria. Note that “conversion” (e.g., municipality to city) requires meeting the criteria for the new, higher level of LGU.
A. Barangay:
Population: A minimum of 2,000 inhabitants, except in Metropolitan Manila* and highly urbanized cities where the minimum is 5,000.
Creation: By an ordinance of the sangguniang panlalawigan or sangguniang panlungsod, subject to approval by a majority of votes cast in a plebiscite in the political unit or units* directly affected.
B. Municipality:
Income: An average annual income* of at least ₱2,500,000 for the last two consecutive years based on 1991 constant prices.
Population*: A minimum of 25,000 inhabitants.
Land Area*: A contiguous territory of at least 50 square kilometers. (Note: Jurisprudence has clarified this is not an absolute requirement if other indicators of viability are present).
C. Component City:
Income: An average annual income* of at least ₱20,000,000 for the last two consecutive years based on 1991 constant prices.
Population*: A minimum of 150,000 inhabitants.
Land Area*: A contiguous territory of at least 100 square kilometers. (Similarly, not an absolute requirement per jurisprudence).
D. Province:
Income: An average annual income* of at least ₱20,000,000 for the last two consecutive years based on 1991 constant prices.
Population*: A minimum of 250,000 inhabitants.
Land Area*: A contiguous territory of at least 2,000 square kilometers.
VI. The Plebiscite Requirement: Jurisprudential Doctrines
The plebiscite is the constitutional expression of the people’s sovereign will. Key doctrines include:
Directly Affected Political Units: All political units whose territorial boundaries or political identity are altered by the creation or conversion are deemed directly affected. In creation, the parent unit(s) losing territory and the new unit are affected. In conversion* (e.g., municipality to city), only the municipality seeking conversion is directly affected.
Majority Vote in the Entire Affected Area: The required majority is computed based on the total votes cast in all areas constituting the “directly affected” unit(s). For example, in creating a new province from an existing one, voters from both the mother province and the proposed new province vote together; if the majority in the combined vote is “Yes,” the new province is created even if the majority in the mother province votes “No” (Tan v. COMELEC*).
Indispensable Legislative Step: No creation, division, merger, abolition, or substantial boundary alteration is valid without a plebiscite. The absence of a plebiscite renders the law inoperative*.
VII. Comparative Table of Requirements
The following table summarizes the statutory criteria for creation and conversion.
| LGU Type | Minimum Average Annual Income (1991 Constant Prices) | Minimum Population | Minimum Land Area (Contiguous) | Governing Body for Creation (Barangay) / Legislative Act |
|---|---|---|---|---|
| Barangay | Not specified | 2,000 (5,000 in Metro Manila & HUCs) | Not specified | Ordinance of Sangguniang Panlalawigan or Panlungsod |
| Municipality | ₱2,500,000 | 25,000 | 50 sq km | Act of Congress |
| Component City | ₱20,000,000 | 150,000 | 100 sq km | Act of Congress |
| Province | ₱20,000,000 | 250,000 | 2,000 sq km | Act of Congress |
VIII. Judicial Interpretation and Key Doctrines
The Supreme Court has refined the application of the statutory criteria:
Land Area as Not Absolute: In Aquino III v. COMELEC, the Court held that while the income and population requirements are mandatory, the land area* requirement is not an absolute territorial requirement. A smaller area may suffice if the LGU can prove it is capable of existence and development as an independent unit, especially for cities where urbanization is key.
Income Must Be Actual and Accruing: The income requirement refers to income actually realized and accrued to the LGU’s treasury, not projected or estimated revenues. It must be based on certified statements by the Commission on Audit*.
Strict Compliance with Procedure: The process for creation or conversion is strictly construed. Failure to comply with any mandatory step, such as a proper certification of compliance from relevant agencies (e.g., National Statistics Office for population, Lands Management Bureau for land area) or the conduct of the plebiscite*, can invalidate the law’s implementation.
Prohibition on Gerrymandering*: The creation must not be for the purpose of gerrymandering, which is the alteration of political boundaries to favor a particular party or class.
IX. Procedural Steps for Creation/Conversion by Congress
The Commission on Audit (for income* requirement).
The National Statistics Office (for population* requirement).
The Lands Management Bureau (for land area* and territorial contiguity).
X. Conclusion
The creation and conversion of LGUs is a power vested in the legislative branch, heavily circumscribed by the 1987 Constitution and the Local Government Code. The twin pillars of this framework are: (1) strict adherence to verifiable criteria of income, population, and viability; and (2) the indispensable democratic approval through a plebiscite of the directly affected populace. Jurisprudence has provided flexibility regarding the land area requirement but has reinforced the mandatory nature of the income and population thresholds and the sanctity of the plebiscite. Any legislative act that fails to conform to these substantive and procedural mandates is susceptible to judicial nullification. The overarching goal remains the enhancement of local autonomy and genuine decentralization, not the political fragmentation of existing viable units.
