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UNIT IV
GENERAL POWERS AND
ATTRIBUTES
OF LOCAL GOVERNMENT UNITS
Introduction
Every local government unit is endowed with powers to be exercised
by it as a political subdivision of the national government and as a corporate
entity for and in behalf of its people. The powers of local governments include
those expressly granted, those necessarily implied therefrom, as well as powers
necessary, appropriate, or incidental for its efficient and effective governance,
and those essential to the promotion of the general welfare.

Objectives of the Unit

At the end of the fourth unit, you should be able to:
Clearly recite the powers and attributes of LGUs;
Distinguish express powers from implied powers; legislative powers
from executive powers; internal powers from external powers; and
mandatory powers from discretionary powers of LGUs;
Define inherent power and enumerate the types of inherent power;
Explain revenue power; and
Define general welfare and eminent domain and explain the
requirements for its valid exercise.

Suggested
2 hours

Timeframe:

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General Powers of LGUs

Express and Implied Powers
Express powers are those granted by express provision of law. Local
governments are expressly granted powers by major sources like the 1987
Constitution particularly its provisions on local government, Republic Act No.
7160, otherwise known as the Local Government Code of 1991, the Rules and
Regulations Implementing the Local Government of 1991, and all existing
laws, acts, decrees, executive orders, proclamations and administrative
regulations on local government insofar as they are not inconsistent with the
Constitution and the Local Government Code. Implied powers are those that
are implied in or incidental to the exercise of powers that are expressly
granted.
The other powers of local governments are the inherent powers,
legislative powers, executive powers, intramural and extramural powers,
municipal powers, mandatory powers, and discretionary powers. Inherent
powers are those that are essential for the existence of the municipal
corporation and indispensable for the prosecution of its avowed objects and
purposes.

Corporate,

Legislative

and

Executive Powers
As a municipal corporation, every local government unit has the
following corporate or inherent powers, namely: (1) to have continuous
succession in its corporate name; (2) to sue and be sued; (3) to have and use a
corporate seal; (4) to acquire and convey real or personal property; (5) to enter
into contracts; and (6) to exercise such other powers as are granted to
corporations, subject to the limitations provided in the Code and other laws
(Sec. 22-a).
A local government unit may enter into contracts in behalf of its chief
executive through an ordinance by the sanggunian concerned authorizing him
to do so. Ordinances are passed in the exercise of inherent powers of the
municipal corporations. Legislative power refers to the power of the municipal
corporations to make ordinances while executive power is the power to execute
or implement such ordinances.

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Internal and External Powers;

Mandatory
and
Discretionary
Powers
The powers a municipal corporation exercises within the limits of its
defined authority are called intramural or internal powers while those that it
executes without or outside its defined authority are referred to as extramural
or external powers. Examples of municipal powers are the erection of
waterworks, the provision of electricity, management of a public market, or
any other activity from which the municipal corporation derives a profit.
Mandatory powers are those that may be required of municipal
corporations while discretionary powers are those which municipal
corporations may or may not perform depending on their sound judgment and
discretion.

Revenue Powers
Likewise, they are authorized to create their own sources of revenues
and levy taxes, fees and charges that will accrue exclusively for their use and
disposition and are retained by them, entitled to a just share in national taxes.
These shall be automatically released to them and without need for a
legislation authorizing the same or for further action, and to have a just and
equitable share in the proceeds from the use or utilization and development or
exploitation of the national wealth and resources within their respective
territorial boundaries including the sharing of such proceeds with the
inhabitants therein by way of direct benefits.

General Welfare
Within their respective territorial jurisdictions, local government units
are mandated to promote the general welfare. General welfare consists of: (1)
the preservation and enrichment of culture; (2) promotion of health and safety
of the inhabitants; (3) enhancement of the right of the people to a balanced
ecology; (4) encouragement and provision of support to the development of
appropriate and self-reliant and scientific and technological capabilities; (5)
imposition of public morals; (6) enhancement of economic prosperity and

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social justice; (7) promotion of full employment among their residents; (8)
maintenance of peace and order; and (9) preservation of the comfort and
convenience of their inhabitants (Sec. 16, LGC).
Local government units are also directed to discharge such functions as
are necessary and proper, appropriate, or incidental to the efficient and
effective provision of basic services and facilities (Sec. 17, LGC). Local
government units also have the power and authority to organize or establish or
put up their development and planning offices. Such offices are charged with
the efficient and effective implementation of their development plans and
programs objectives and priorities. Local development planning is extensively
discussed, infra.

Eminent Domain
Local government units may also acquire, develop, lease, encumber,
alienate, or otherwise dispose of real or personal property held by them in their
proprietary or private capacity. In consonance hereto, they can apply their
resources and assets for productive, developmental or welfare purposes, in the
exercise or furtherance of their governmental or proprietary powers and
functions to ensure their development to the fullest extent possible as selfreliant, or self-contained, or self-sustaining communities and active
participants in and contributors to national development goals (Sec. 18, LGC).
Local government units are not possessed with the inherent power of
eminent domain. However, this power may be expressly and explicitly
delegated to local governments. The Code so delegates such power by
providing that A local government unit may, through its chief executive and
acting pursuant to an ordinance, exercise the power of eminent domain for
public use or purpose, or welfare for the benefit of the poor and the landless,
upon payment of just compensation, pursuant to the provisions of the
Constitution and pertinent laws (Sec. 19).
The exercise of the sovereign right of eminent domain, to be valid must
conform to three requirements, namely: (1) the taking must be for public use,
purpose or welfare of the poor and the landless; (2) just compensation must be
paid; and (3) due process must be observed in the taking. Eminent domain may
not be exercised unless a valid and specific or definite offer by the local
government unit has been made and such has not been accepted. . If the owner
accepts the offer, then there is no need for expropriation proceedings.

Public Use, Purpose, or Welfare

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Among others, the following are considered public use, purpose or

welfare: 1) socialized housing; 2) construction or extension of roads, streets,
sidewalks, viaducts, bridges, ferries, levers, wharves, piers; 3) establishment of
parks, playgrounds, or plazas; 4) establishment of market places and trading
centers; 5) construction of artesian wells or water supply systems; 6)
establishment of cemeteries or crematories; 7) construction/establishment of
drainage systems, cesspools, or sewerage systems; 8) construction of irrigation
canals, laterals or dams; 9) establishment of infant nurseries, health centers,
feeding centers, clinics, or hospitals; 10) establishment of abattoirs; and 11)
building of research centers, breeding and gene pools, or dispersal centers for
animals (Sec. 33, Rule VI, IRR).

Requisites
Three requisites are necessary before a private property is acquired by a
local government for public use, purpose or welfare. The suitability of the
property sought to be acquired must first be established. Once this is
accomplished, the LGU may then proceed to obtain the necessary locational
clearance from proper authorities. Other requirements imposed under existing
laws and regulations will have to be obtained.

Offer to Buy and Contract of Sale

The offer to purchase private property for public purpose has to be in
writing and must be specific. It should specify the property sought to be
acquired by the LGU, the justifications or reasons for its acquisition, and the
price offered by the LGU. An ordinary sale of property will then take place. If
the owner is willing to sell the property but at a higher price than the price
offered, the chief executive shall call the owner to a conference to agree on the
selling price. The chair of the appropriation or finance committee of the
sanggunian or any member of sanggunian in the absence of the former chosen
by the sanggunian as its representative shall attend and participate in the
conference. When an agreement on the selling price of the property is reached,
a contract of sale is executed.
The contract of sale should be supported by a resolution, which shall
specify the terms and conditions, of the sanggunian authorizing the local chief
executive to enter into a contract of sale, an ordinance appropriating the
amount stated in the contract, and a certification of the local treasurer as to the
availability of the funds intended for the purchase of the property involved.

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Expropriation Proceedings
If the offer is rejected by the owner of the property involved after filing
the requisite expropriation proceedings subject to the deposit of at least 15% of
the fair market value of the property based on the current tax declaration of the
property being subjected to expropriation. Just compensation, which is the fair
and full equivalent of the loss or damage sustained by the owner of the
property resulting from the act of expropriation, is determined by the judiciary
pursuant to Rule 67 of the Rules of Court. The same rule provides that just
compensation should be determined at the time of the filing of expropriation
proceedings (Sec. 4, Rules of Court). This rule is affirmed in the celebrated
case of EPZA V. Dulay (149 SCRA 305, April 29, 1987) wherein the Supreme
Court proclaimed that just compensation is based on the value of the property
at the time of taking.
Fair market value is the full and fair equivalent of the property taken
plus the consequential damages minus the consequential benefits, if any,
provided, however, that the consequential benefits do not exceed the
consequential damages.
Generally, however, powers of municipal corporations are two-fold:
public, governmental or political and corporate, private and proprietary. City of
Manila v. Intermediate Appellate Court (179 SCRA 428) is the authority with
regards to the definition of public and proprietary powers. In this case, the
highest court defined governmental powers as those exercised in administering
the powers of the State and promoting the public welfare and they include
legislative, judicial, public and political. On the other hand, proprietary powers
are those carried out of the special benefit and advantage of the community
including those which are ministerial, private and corporate.

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Assessment
Questions
Fill in the blanks. I want you to supply the missing word or phrase in
the blank space provided. Tear/cut off this sheet after filling in the blanks and
submit it to your tutor/instructor for evaluation/correction. Be sure that you put
a mark on your paper that will indicate your ownership of it.

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1. Express powers are those granted by __________________ provision of

law.
2. Implied powers are those that are implied in or ___________________ to
the exercise of powers that re expressly granted.
3. Legislative power refers to the power of a municipal corporation to make
___________________________.
4. The power of a municipal corporation to execute or __________________
ordinances it has passed.
5. The powers a municipal corporation exercises within the limits of its
defined authority are called intramural or _____________________
powers.
6. The powers a municipal corporation executes without or outside of its
defined authority are referred to as extramural or _____________________
powers.
7. Powers that may be required of municipal corporations are called
______________________ powers.
8. Powers which municipal corporations may or may not perform depending
on their sound judgment and discretion are called ____________________
powers.
9. The power of _______________________ refers to the power of the State,
delegated to local governments, to take private property for public use,
upon the payment of just compensation, and with the observance of due
process of law.
10. The fair and full equivalent of the private property taken plus the
consequential damages minus the consequential benefits, if any, provided
that the consequential benefits do not exceed the consequential damages is
called _____________________________.

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Summary
This unit has introduced you to the general powers and attributes of
LGUs. These powers and attributes are necessary for efficient and effective

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local governance and for the promotion of the general welfare, which LGUs
are mandated to uphold.