A councilor in the tourism town of Panglao has questioned the legality, funding transparency and long-term financial impact of the proposed P500-million municipal hall project following its groundbreaking ceremony this week.
Panglao Councilor Analyn Casane said she opposed the resolution authorizing the execution of the deed of sale tied to the project, citing unanswered questions on land valuation, funding sources, legal compliance and the municipality’s financial preparedness.
Casane said she deliberately skipped the groundbreaking ceremony held Wednesday because she was not yet convinced that the project had undergone complete legal and financial review.
“I am not against development,” Casane said in a statement addressed to Panglaonons. “But ceremonial activities should not be rushed while major questions remain unresolved regarding funding, valuation and the long-term obligations of the municipality.”
The four-story municipal hall, planned on a two-hectare property in Barangay Tawala, is designed as a solar-powered and eco-friendly government complex estimated to cost P500 million.
Municipal officials said the building would feature natural ventilation, rainwater collection systems and an interior solarium to reduce energy consumption.
The complex will also allocate 1,000 square meters for a new Philippine National Police building.
Mayor Edgardo “Boy” Arcay said the project aims to provide Panglao with a modern and presentable municipal center as the town continues to grow as one of the country’s major tourism destinations.
Arcay also said the project would not be fully funded through local sources and insisted the municipality would not incur debt for the development.
During the ceremony, officials announced that the provincial government would contribute P5 million to the project.
Architect Mario Mejos, who worked with renowned urban planner, designed the building using a “modern boat” concept intended to maximize natural airflow and sustainability features.
Casane, however, questioned why municipal officials have yet to publicly disclose the amount of available funds and where the remaining financing would come from if current resources prove insufficient.
She also questioned the sustainability of the project, its possible effect on future municipal budgets and essential services, and whether adequate public consultations and transparency measures were conducted before implementation.
The councilor warned that future administrations and taxpayers could end up carrying financial obligations resulting from the project if it is not carefully planned.
She urged local officials to prioritize “responsible governance over political convenience,” especially amid fears over slowing tourism and economic uncertainties that could affect Panglao’s fiscal stability.
As of Friday, the municipal government had yet to issue a formal response to Casane’s arguments.
The municipal hall project comes as Panglao pushes for possible cityhood by 2027, buoyed by rising local revenues driven largely by tourism and real property tax collections.
According to Region VII Director Gerardo Avorque, Panglao’s annual locally generated income has already reached around P200 million, exceeding the P100-million income requirement for conversion into a component city under the Local Government Code.
Officials said Panglao’s strong fiscal performance and its status as a first-class municipality since 2024 strengthen its bid for cityhood despite limitations in land area and population requirements because the municipality is island-based.
Meanwhile, Casane also defended her earlier vote supporting the renewal of poker-related operations in Panglao, saying the decision was based on legal authority and regulatory compliance rather than personal preference.
She said the gaming operation possessed permits from Pagcor and argued that town lawmakers must distinguish between personal moral views and existing national laws regulating gaming activities.