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Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Subsection (a) of Section two thousand five hundred and fifty-three of the Revised Administrative Code is hereby amended to read as follows:

"SEC. 2553. The City Council.—Powers.—The city council shall have power by ordinance or resolution—

"(a) To make all  appropriations  for the expenses of government of the city, and establish and fix therein the salaries of the city officers and employees, except teachers in the public schools, subject to approval by the Department Head.  In consideration of the exemption from taxation of the extensive real-estate holdings of the National Government within the limits of the city, of the expense of improvements which the government of said city is required to make by reason of the location therein of offices of the National Government, and of free service connection with said offices, from nineteen hundred forty-five until the end of the fiscal year nineteen hundred sixty-six the sum of ten million four hundred ninety-three thousand seven hundred sixty-two pesos and nine centavos (P10,493,762.09) is hereby appropriated, from any funds in National Treasury not otherwise appropriated, and made available to the City of Baguio, and beginning with the fiscal year nineteen hundred sixty-seven, there is hereby created a permanent continuing appropriation in the annual General Appropriations Act of seven hundred thousand pesos, or such amounts as may be certified by the City of Baguio as may be equivalent to fifty per centum of the expenses of the government of the city exclusive of those accounts which appear as expenses by reason of inter-departmental charges and charges against the National Government for services and supplies."

SEC. 2. This Act shall take effect upon its approval.

Approved, June 18, 1966.