In a recent announcement from Davao City, the province of Davao Occidental revealed that four of its towns have achieved first-class municipality status. Malita and Jose Abad Santos have successfully maintained their first-class status, while Don Marcelino and Santa Maria have been newly elevated to this prestigious category. Previously, Santa Maria was classified as a second-class municipality, and Don Marcelino as a third-class municipality.
The reclassification, effective from January 1, was formalized through Department Order No. 074, Series of 2024, issued by the Department of Finance (DOF). This order adheres to the guidelines set forth in Republic Act 11964, known as the Automatic Income Classification of Local Government Units Act.
The DOF classifies provinces, cities, and municipalities into five categories based on their average annual regular income over the previous three fiscal years. For municipalities, the classifications are as follows: first-class municipalities have an income of PHP200 million or more; second-class, from PHP160 million to less than PHP200 million; third-class, from PHP130 million to less than PHP160 million; fourth-class, from PHP90 million to less than PHP130 million; and fifth-class, less than PHP90 million.
This year, the number of fifth-class municipalities in Davao Occidental has significantly dropped from nine to just one. Additionally, the province itself has improved its standing, moving from a fourth-class to a second-class province in terms of income classification.
In the broader Region 11, the provinces of Davao de Oro, Davao del Norte, Davao Oriental, and Davao del Sur have all retained their first-class province status.