“It is the ultimate goal of the Officials and Employees of the Lungsod ng San Pedro to make San Pedro a highly-urbanized place to sojourn, and the best commercial hub to do business. Running parallel is our desire to provide the best quality services to our constituents through effective and efficient governance. It is therefore imperative for us to ensure public safety, promote social justice and well-being, as well as the protection of human rights of every citizen of the Lungsod ng San Pedro…”—Service Pledge, San Pedro Citizen’s Charter, 2023
It is one of the smallest cities in the province of Laguna, with a total land area of only 24.05 square kilometers—a little larger than Makati (21.57 km2), the 2nd richest city in Metro Manila, according to the Commission on Audit (COA).
And like Makati in 1995 (population density: 14,000), the present population density of the Lungsod ng San Pedro is also 14,000 people per square kilometer, the highest in Laguna and in the entire CALABARZON (Cavite-Laguna-Batangas-Rizal-Quezon) region.
Considering that it only takes 22 minutes to reach Makati from the Lungsod ng San Pedro, how quaint would it be if San Pedro followed the development trajectory of one of the recognized urban development icons of Metro Manila?
Industry experts equate high population density to increased productivity. As “Laguna’s Gateway to Metro Manila,” San Pedro’s City Government—led by Mayor Art Joseph Francis Mercado—hums with highly productive development programs and projects for its burgeoning labor force, as well as its entire constituency.
SMART CITY BY 2032

As of 2020, San Pedro’s economically active population and actual or potential members of the work force, constitute a total of 67.98% or 221,189 persons out of the city’s total population of 326,001. The senior citizen population, those aged 65 and over, total 4.48% (14,610).
Mercado sees this considerable labor force, coupled with the city’s close proximity to Metro Manila, as strategic advantages for propelling San Pedro into a Smart City in 10 years’ time.

Plans for the San Pedro Smart City will include a central business district, residential areas, medical and health facilities, support programs for education and sports, and the building of roads and infrastructure—all guided by technology-propelled basic services catering to the students, youths, senior citizens, persons-with-disabilities (PWDs), small-and-medium enterprises (SMEs), farmers and fisherfolks.
VISION
“My vision for the city’s 10-year development is centered on transforming San Pedro into a Smart City that serves every resident with efficiency, sustainability, and safety. When I first took office in 2022, we laid the groundwork for this transformation by introducing the San Pedro Green Card (still ongoing), a multifunctional identification card designed to make financial assistance and transactions across the city seamless and cashless. This card is more than just a convenience; it represents our commitment to leveraging technology to improve the lives of our citizens,” Mercado said.

He stressed that San Pedro’s Smart City plan extends beyond digital transactions. “We are actively working on digitalizing government services, making it easier for residents to access the services they need without the usual bureaucratic delays. This includes everything from applying for permits to accessing health services.
The goal is to bring the government closer to the people, making it more transparent, responsive, and efficient.”
For more than 200 years since it was founded as a town by the Spanish government in the early 18th century, San Pedro existed as an agricultural enclave, with farming, livestock raising, and fishing as the primary income of its town folk.
Come the 1960s, the industrialization of San Pedro began. Industrial estates, subdivisions, urban poor resettlement projects, bus liners, and railways were built.
In time, San Pedro was labeled the “dormitory town,” with a transient population of migrants from other Laguna towns that use the city for commuting to their work destinations in Metro Manila.
INNOVATIVE, STRATEGIC, SUSTAINABLE
“I fully recognize that the Lungsod ng San Pedro has long been seen as a dormitory town, with limited space for industrial development. Given this reality, our development strategy has to be both innovative and strategic. We have very little land available for large-scale industrial projects, which is why we’re focusing on attracting investors in sectors like Information Technology (IT) and Business Process Outsourcing (BPO). These industries require relatively small physical spaces but offer significant economic opportunities and job creation for our residents,” Mercado said.
With their Smart City blueprint for development, Mercado said they intend to ensure that sustainability remains at the heart of the City Government’s vision.
“Sustainability is at the heart of our vision. We are developing programs that ensure San Pedro grows in an environmentally responsible way. This includes initiatives like smart waste management, energy-efficient infrastructure, and the pro-motion of green spaces as we also revive the Sampaguita Industry. Our focus on sustainability isn’t just about promoting our culture or preserving the environment. It’s about ensuring that our city remains livable and thriving for future generations,” he said.
PUBLIC SAFETY
He mentioned that another key aspect the San Pedro Smart City initiative is enhancing disaster response and public safety. “San Pedro is no stranger to natural disasters, and we are investing in technology that will allow us to respond more quickly and effectively.”
The range of technology includes early warning systems, real-time communication networks, and data-driven decision-making tools that can save lives during emergencies.
Public safety is also being bolstered by smart surveillance systems and community-based programs that make our neighborhoods safer.
Mercado recognizes that 10 years may not be enough to fully realize the vision of a Smart City. He added, however, that he is of firm belief that with the foundations they are laying now, San Pedro will be smarter, more resilient, and more connected than ever before. “We are on the right path, and this is just the beginning of a brighter, smarter future for our beloved city.”
BUDGET
As admitted by Mercado, budget is always a challenge for any administration, especially when it comes to ambitious projects like building a Smart City.
“In our case, we’ve made it a priority to ensure that every peso spent aligns with our mission to transform San Pedro into a smarter, more efficient city over time. Our approach is not about launching a one-time, big-budget project that’s all about appearances. Instead, we’re taking a more measured and sustainable approach, breaking down our Smart City efforts into manageable, phased initiatives,” he elaborated.
Mercado added that the City Government fully understands that transforming a city doesn’t happen overnight. “It’s a continuous journey that requires careful planning, consistent funding, and ongoing community involvement. By taking small but significant steps, we’re able to build momentum and ensure that each phase of the project is completed successfully before moving on to the next. This allows us to manage the budget more effectively, avoid unnecessary spending, and make adjustments as we learn from each stage of implementation.”
He cited as an example the San Pedro Green Card and how they are gradually expanding their digital services, allowing for the testing and refining of these systems before scaling up.
“It’s about building a strong foundation that will support future growth and innovation. Each of these steps is carefully budgeted to ensure that we’re maximizing the impact of our resources while staying true to our long-term vision,” Mercado stressed.
In essence, San Pedro’s budget strategy for the Smart City plan is rooted in pragmatism and sustainability. As elucidated by Mercado: “We’re committed to making smart, deliberate investments that will benefit our residents now and in the future. By being strategic with our budget, we’re ensuring that San Pedro’s journey toward becoming a Smart City is both financially responsible and impactful.”
GREEN CARD, DIGITALIZATION

Mercado said that the Lungsod ng San Pedro Green Card is already in place, adding that they have made significant progress in registering their most vulnerable sectors, including Senior Citizens and Persons with Disabilities (PWDs).
“This card is a crucial step in our digitalization efforts. It not only facilitates cashless transactions but also ensures that our social assistance programs are more efficiently and securely managed,” he explained.
San Pedro is politically subdivided into 27 barangays. Barangay San Antonio, the largest barangay, has a total land area of 780 hectares, while Barangay San Vicente is the most populous with a total population of 92,092.
As of August 28, some 2,826 San Pedrenses have been issued Green Cards, with the first phase intended for PWDs, Senior Citizens, and City Hall personnel.

Registration started in August with a definite schedule for barangay on-site registration so as not to burden Seniors and PWDs with traveling to registration sites.
To date, the total number of Senior Citizens in the city’s 27 barangays is 51,879, with continuous cleansing of deceased and transferred seniors.
“Our digitalization of government services is also in full swing. We’ve been working hard on system updates and hardware upgrades to make sure that our services are more accessible and user-friendly for all residents. This ongoing process is crucial to creating a more streamlined and transparent government, where citizens can easily access the services that they need without the traditional delays and complexities,” Mercado said.
STREAMLINED BUSINESS REGISTRATION

In partnership with the Department of Trade and Industry (DTI), the City Government of San Pedro implemented the streamlining of business registration in the city.
The objective is to simplify business registration and licensing procedures, as well as business creation and investment inflows by cutting red tape. In the process, informal businesses will be encouraged to register.
The new, simplified procedures will likewise help spur the creation of new businesses and generate more revenues for San Pedro.
TAX COLLECTION

Statistics provided by the city government showed an increase of P7.8 billion in taxable assessments, while tax collection was at P1.01 billion—a 13% increase in the collection of local revenue sources from two consecutive years with a total operating income of P1.3 billion. This led to a P2.3 billion increase in estimated income for the 2024 Fiscal Year.
According to Mayor Mercado, the annual regular revenue of San Pedro is approximately P1 billion.
And while the City Government has made strides in improving tax collection, Mercado said that San Pedro is still heavily reliant on the National Tax Allotment from the National Government.
ENHANCED REVENUE COLLECTION
“We are committed to further enhancing our revenue collection, ensuring the efficient use of taxes, and maintaining good governance to better serve our constituents,” he said.
Improvements in revenue collection, said Lungsod ng San Pedro Public Affairs and Information Office (PAIO) head Jhe-Rico Sam Colina, shall be anchored on five factors, namely: business confidence in the city government, opening of many micro-businesses, aggressive tax collection, transparency efforts, and proper budget management.
The San Pedro City Government forecast that 2024 will be a boom year for both local businesses and the local government.
“We are targeting a 15% increase for this year. An increase of P521 million from the P426 million increase collected in November 2023,” tax officials said.
For his part, Mercado said that they are addressing all Commission on Audit (COA) recommendations governing tax collections.
TAX CAMPAIGN

“We’re actively working on implementing a tax campaign program to improve collections, enacting an ordinance on the fair market share of properties, and evaluating our computer software projects,” he said.
On the whole, Mercado sees the value of tax collection and wise revenue management as fund sources for San Pedro’s crucial public service programs and projects—from health and education to jobs and the provision of livelihood.
“As public servants, we are here to provide aid and assistance sa lahat, ng walang pag-aalangan o pinipili na tutulungan [to everyone, without fear or favor]. As long as I, deep in my heart, know that what I am doing is right, I am happy. Especially kapag nakikita kong may napapasaya tayong mga kababayan. Yung mga ngiti nila, yun ang nakakapag pasaya sa akin bilang mayor [when I see our constituents happy. Their smiles fill me with joy as a mayor].
COMING SOON: ONLINE BOSS
Beginning January of each year, the San Pedro Business Permits and Licensing Office (BPLO) opens its Business One-Stop-Shop (BOSS).
From January until Feb. 29, 2024, the BPLO conducted its BOSS using the Face-to-Face format. The Office stated, however, that it is now working on the implementation of an online registration scheme, where registration and renewal of business permits and licenses can be conducted from one’s office or in the comfort of one’s home. Online business registration is targeted for implementation before the end of 2024.
The BPLO likewise offered 100% condonation of registration fees and charges for businesses that failed to register during the COVID-19 period (2019-2020). Meanwhile, a 25% and 50% payment of fees will be granted to those that have failed to register in 2021 and in 2022-2023, respectively.
AUTOMATED SAN PEDRO
According to Mercado, the automation of the BPLO will be followed by the automation of the Treasury, until it covers all the other operations of the City Hall.
With automation, the red tape that usually plagues government operations will once-and-for-all be avoided, the San Pedro Mayor said, adding that “automation will pave the way for a transparent City Hall.”
There are more than 4,700 business establishments in San Pedro. These include more than 55 manufacturing companies, 40 commercial, savings, and rural banks; more than 110 restaurants, cafeterias, and other refreshment parlors, two public and five private markets and supermarkets, 40 banks, over 60 pawnshops, more than 30 lending institutions, and 11 insurance companies.
San Pedro also has a large number of factories, most notably the Alaska Milk Corporation factory in San Antonio, the city’s largest and most populous barangay.—Trixzy Leigh Bonotan