Cebu City faces budget crisis over daily garbage hauling

CEBU City may soon run out of funds for garbage hauling and disposal as the City Government continues to spend millions of pesos daily to transport waste to Aloguinsan.

With annual garbage expenses nearing P1 billion, Councilor Dave Tumulak, chairman of the City Council committee on budget and finance, warned that the current allocation could be exhausted if the present setup continues.

“If this will continue, yes, it’s true, the budget will really run out,” Tumulak said in an interview on Thursday, Sept. 3, 2026.

Depleted allocation

Mayor Nestor Archival previously indicated that garbage funds could run out by November, prompting the City Government to consider requesting another supplemental budget of P100 million to P200 million. Before the Jan. 8 Binaliw landfill tragedy, the City maintained an annual waste management budget of about P500 million. Following the incident, which rendered the facility unusable, hauling costs surged as waste was redirected to Aloguinsan, driving projected annual expenses to nearly P2 billion.

To cushion these costs, the City Government sought P500 million in additional waste management funding under Supplemental Budget 1. The City Council ultimately approved P400 million as part of an overall P800.54-million package, cutting more than P160 million from the administration’s original proposal. Despite the addition, Archival noted in August that garbage expenses had effectively doubled, with the City spending P4.2 million to P4.5 million daily on transportation to Aloguinsan.

Deferred projects

Tumulak explained that securing additional funding depends on revenue sources identified by the mayor’s office. If new allocations are requested, some capital projects may face deferral to cover ongoing waste management expenses. He added that city services remain unaffected for now because no new supplemental budget request has been formally submitted or approved.

The shift to Aloguinsan has proved increasingly costly because the City pays both hauling and tipping fees for every ton of waste. At roughly P3,900 per ton — including a tipping fee of around P1,600 — costs add up rapidly with dozens of 10-ton capacity trucks deployed daily. “That’s about millions per day. Almost around P4 million per day,” Tumulak said, emphasizing that the long transit distance continues to drain municipal finances.

Alternative sites

Because Aloguinsan is significantly farther than previous disposal facilities, officials are actively evaluating alternative sanitary landfills to reduce transit time and fuel costs. Tumulak said potential options include a private facility associated with Asian Energy, alongside sites in Toledo City and Bogo. The City Government is currently gathering operational data on these facilities before presenting recommendations to Archival for potential negotiations.

Among the choices under review, the Toledo City landfill offers a larger capacity than Binaliw, though it is not yet operational. While Toledo is not closer in straight-line distance, Tumulak noted that the Liloan-Balamban route offers a more manageable trip than the long haul to Aloguinsan and passes through fewer heavily populated areas than routes leading to Bogo or Consolacion.

Ongoing rehabilitation

Cebu City cannot yet return to the Binaliw landfill as rehabilitation and inspection activities remain ongoing following the Jan. 8 garbage slide that killed 36 workers and a volunteer rescuer. Having relied on the Aloguinsan facility for roughly six months, officials warn that paying dual fees over extended distances remains financially unsustainable, leaving another supplemental budget request as the City’s primary option if existing funds run dry. / CAV