The city consists of several urbanized and developed barangays. Like the municipality, it serves as a general purpose government for the coordination of basic, regular and direct services and effective governance of the inhabitants of its territorial jurisdiction. There are 3 kinds of cities:
1.) Component Cities
2.) Independent Component Cities
3.) Highly Urbanized Cities
Component cities are subordinate to the province. Hence, their mayors answer to the governor. Independent component cities are component cities whose charters say nothing about electing their provincial officials and are independent of the province. Highly urbanized cities are also independent of the province and have other characteristics that differentiate them from independent component cities.
A city is created, merged, abolished or have its boundaries substantially altered only by law. The law must be approved in a plebiscite held by COMELEC in the LGU/s directly affected. The plebiscite must be held within 120 days from the passage of the law in question unless the law itself specifies another date or time frame.
Requisites (component and independent component cities:)
1.) Average annual income of Php 20 million for the last 2 consecutive years (certified by the Department of Finance)
2.) Contiguous territory of at least 100 sq. km.(certified by the Lands Management Bureau)
3.) Population of at least 150,000 inhabitants (certified by the NSO)
The creation can't reduce the land area, population and income of the original LGU/s to below the minimum requisites. The territory requirement won't apply if the city in question consists of more than 1 island; it also doesn't have to be contiguous if it comprises 2 or more islands. The average annual income includes the income going to the general fund and excludes specific funds, transfers and non-recurring income.
Requisites (highly urbanized cities:)
1.) Minimum population of at least 200,000 inhabitants (certified by the NSO)
2.) Latest annual income of at least Php50 million based on 1991 constant prices (certified by the city treasurer, not the Department of Finance)
3.) Declaration by the President within 30 days after the city has met the minimum requirements
4.) Approval in a plebiscite (same rules as a component or independent component city)
It's clear from the requirements of a highly urbanized city that it needs to be a city first. Also, if a city doesn't meet the above requirements, it will be considered a component city of the province where it's located in; and if it's located within the boundaries of 2 or more provinces, it will be considered a component city of the province where it used to be a municipality.
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