Consistent with the local autonomy and decentralization as mandated under RA No. 7160 also known the Local Government code of 1991, Local Government Units shall endeavor to be self-reliant and shall exercise powers and discharge such other functions and responsibilities for the provision of basic service and facilities.

Under Section 18 of R.A 7160 provides “Local Government Units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, programs, obligations, objectives and priorities to create their own sources and revenues and to levy, taxes, fees, and charges which shall accrue exclusively for their use and disposition and which shall be retained by them.

While under section 76 of the code provides that” Every LGU shall design and implement its own organizational structure and staffing pattern taking into consideration its requirements and financial capacity, subject to the minimum standards and guidelines prescribed by the Civil Service Commission.

The existence of Lopez Municipal Economic Enterprise Unit (LMEEU) is mainly for the purpose of managing sustainable municipal enterprises to enhance the income of the municipality.