November 1963
SPECIAL REPORT ON
Aguadilla
Bayamon
Carolina
Guaynabo
Mayaguez
Ponce
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This map of Puerto Rico shows the relative locations of the
municipalities of Aguadilla. Bayamon. Carolina, Guaynabo. Mayaguez and Ponce. Aguadilla. on the northwestern coast, eighty-two miles west of San Juan, is an important trading and distribution center. Bayamon. six miles southwest of San Juan, is the third largest
municipality in Puerto Rico. Carolina, sixth largest municipality. lies eight miles southeast of San Juan. Guaynabo. also closely adjacent to San Juan, like Bayamon and Carolina, is considered part of the metropolitan area. Mayaguez. situated on the west
coast, is a primary distribution and trading center, and the
site of the Foreign-Trade Zone. Ponce, second largest city in Puerto Rico, situated on the south coast, is a highly important industrial and agricultural center.
m
PUERTO RICO
Puerto Rico is the fourth largest of the islands in the Caribbean area. It is about 100 miles long and 35 miles wide, having an area of 3,423 square miles and a
population of approximately 2,450,000. The topography is characterized by a fertile coastal plain rising to interior mountains which run mostly from east to west. San Juan, Capital of Puerto Rico, lies some 1,690 miles southeast of New York, 3V6 hours by jet plane, and 1,000 miles southeast of Miami,IVz hours by jet plane. Under its compact with the United States, the Commonwealth of Puerto Rico exercises virtually the same control over its internal affairs, following the same
general procedures, as do the fifty federated States over theirs. It differs from the States primarily in its relationship to the Federal Government. In brief, residents of Puerto Rico do not vote in the national elections. They are represented in Congress by a Resident Commissioner who has a voice but no vote in the House of Represent
atives. On the other hand. Federal taxes do not apply in Puerto Rico except by mutual consent, as is the case with social security taxes and unemployment insur ance. No Federal income tax is collected from Puerto Rican residents on income
earned in Puerto Rico, and Federal excise taxes collected on exported Puerto Rican products, such as rum and tobacco, are returned to the Commonwealth Treasury. This relationship with the Federal Government is defined through the medium of the compact entered into by Congress and the People of Puerto Rico, and is further described hereafter.
History
Puerto Rico came under United States sovereignty by the Treaty of Paris on Decem ber 10, 1898. The Congress of the United States provided for a civil government for the island in 1900. The original act was superseded in 1917 by the Organic Act of Puerto Rico, which granted United States citizenship to Puerto Ricans as well as unrestricted suffrage for local purposes. In accordance with the wishes of the People of Puerto Rico, the 81st Congress enacted Public Law 600, approved July 3, 1950. This law, which is "in the nature of a compact," became effective upon its acceptance by the electorate of Puerto Rico. It provides that those sections of the Organic Act which define the political, economic and fiscal relationship between Puerto Rico and the United States shall remain in full force and shall be thereafter known as the Puerto Rican Federal
Relations Act. It also authorized the People of Puerto Rico to draft and approve their own constitution. The Constitution was drafted by a freely elected constitu tional convention, overwhelmingly approved in a special referendum, and approved
by Congress and the President. It became effective upon proclamation of the Governor of Puerto Rico on July 25, 1952.
The Commonwealth Government
The Constitution recognizes and assures a separation of powers among the execu tive, legislative, and judicial branches as in the Federal Constitution, and in those of the States. Both the Governor and the bicameral legislature are subject to regular election every four years. The Legislature operates under standard parlia mentary and legislative rules. The judicial system, administered by a Supreme Court appointed for life, is composed of lower and intermediate courts. Writs of error and appeals from judgments of the District Court of the United States for Puerto Rico may be taken to the United States Court of Appeals for the First Circuit and to the Supreme Court of the United States and writs of error and appeals from judgments of the Supreme Court of Puerto Rico may be taken to the Supreme Court of the United States, in the same manner and under the same terms and con
ditions as writs of error and appeals may be taken from other Federal and State courts.
Governmental responsibilities assumed by the Commonwealth are greater than those normally assumed by a State government. Municipalities which combine both rural and urban areas are the only local political subdivisions and are com
parable to counties in scope. The only units of government with the right to levy ad valorem taxes are the Commonwealth Government and the municipalities. There is, therefore, no other overlapping taxation or bonded indebtedness payable from taxes. The Commonwealth Government assumes responsibility for a number
of important functions usually performed by local governments in the continental United States. Among these are police and fire protection, education, all major street and highway construction, and public health programs. In addition, the Com monwealth Government supervises municipal fiscal affairs to a very substantial extent.
Commonwealth and municipal governments are relieved of most of the respon sibility for constructing and financing electric, water and sewer systems by the Water Resources Authority and the Aqueduct and Sewer Authority. Air and sea port facilities are administered by the Ports Authority. The bonded debt of these public corporations is supported entirely by revenues derived from their operations.
Prospective Piebiscife
Since the time when the Commonwealth was established in 1952, it was recognized that this new concept of political status would in due course be subject to improve ment. No significant changes were made until 1961 when through direct vote by Puerto Ricans and approval by Congress, the U. S. Congress transferred control of the Commonwealth debt limit from the Federal Relations Act to the Puerto Rican
Constitution and authorized appeal of decisions of the Supreme Court of Puerto Rico directly to the U. S. Supreme Court, instead of through the U. S. First Circuit Court of Appeals. On the 10th Anniversary of the Commonwealth, July 25, 1962, the Governor
announced that measures would be taken for a plebiscite in which the people could
express their preference for an expanded Commonwealth, still in permanent association with the United States, or the classical forms of statehood and inde-
View of Waterfront at AguadiUa.
pendence. The Legislature of Puerto Rico by almost unanimous vote adopted a Resolution petitioning Congress to provide the basis for such plebiscite.
Taking note of this Resolution, a Resolution was introduced on April 30, 1963, in the United States House of Representatives. The Resolution (H.R.5945) provides for the establishment of a "United States-Puerto Rico Commission on the Status of
Puerto Rico" which is to formulate and draft legislative recommendations for the
prompt settlement, in a democratic manner, of the political status of Puerto Rico. This Resolution provides for the Commission to render its report to the President
and Congress of the United States and to the Governor and Legislative Assembly of Puerto Rico at the opening day of the second session of the 89th Congress in January. 1966. This Resolution was passed by a large majority in the House of Representatives on October 23, 1963, and now goes to the Senate of the United States for its consideration.
Expansion and Diversllication of the Economy of Puerto Rico Economic growth in Puerto Rico since 1940 has been very rapid. Net income
of the economy has risen from $225 million in 1940 to over $1,800 million in
fiscal 1962-1963. In the same period, gross product of the Commonwealth has increased from $287 million to almost $2,200 million. In the past two fiscal years
both net income and gross product have increased by more than 10% per year over their levels of the preceding year.
The Commonwealth Government's program of industrialization has aided the
economy to shift from one principally agricultural to one much better divided between industry and agriculture. Concurrently with an expansion in net agricul tural income from $70 million in 1940 to about $225 million in fiscal 1963, manu
facturing income increased from $27 million to $432 million, substantially surpassing agriculture as a source of income. Industrial income is generally derived from the manufacture of many diverse products, principally for shipment to the United States. These products are made in over 900 modern plants, many of which are subsidiaries or branches of such firms as General Electric Company, Inter national Paper Company, Ltd., American Can Company, Consolidated Cigar
Corporation, Sunbeam Corporation, The Carborundum Company, Sperry Rand Corporation, Union Carbide Corporation, American Motors Company, Parke, Davis Company, Inc., A. G. Spalding & Bros. Inc., Van Raalte, International Shoe Corporation, Beaunit Mills, Inc., Borden Company, and California Packing Corpo ration.
Underlying Puerto Rico's growing and changing economy has been a steady ex
pansion in investment. Gross fixed investment during the seven consecutive fiscal years 1957 to 1963 ran at the high rate of 21% of gross product. Inflowing long term U. S. capital rose from $30 million in postwar 1947 to an estimated $261 million in 1962 when it equalled 60% of the $433 million fixed investment regis tered in that year. For the year ended June 30, 1963, fixed investment was estimated to have totaled $487 million.
One of the principal incentives which has helped to bring about rapid industrial
Bayamon Transmission Center.
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growth in Puerto Rico is the exemption granted from Commonwealth taxes for a ten-year period to qualified manufacturers of new products. This naturally raises a question as to how permanent such industries may be, once the exemption period begins to terminate. Although most plants may have originally been attracted primarily by tax exemption, it is not expected that profitable firms will leave Puerto Rico to go to other areas at the end of the tax exemption period (profits of new firms in Puerto Rico have been twice as high in relation to equity investment as
companies in the same asset size classes on the U. S. mainland, before taxes). Furthermore, under Puerto Rico's corporate tax structure, rates are only slightly more than half of the usual 52% Federal corporate rate, with an additional saving over areas levying both Federal and state taxes. At the end of the tax exemption period corporate taxes are applied gradually, reaching the full tax in steps spread over a three-year period. As an added incentive, Puerto Rico allows taxpayers to
depreciate fixed assets at their own discretion. The importance of this is that at such time as a firm's income becomes taxable, depreciation accruals can be materially increased and taxable income reduced. Experience thus far indicates that termina tion of the tax exemption period will have only a limited impact, as to closing of
plants, on the industrial program and the economy of Puerto Rico. The Puerto Rican people have benefited greatly from the economic expansion achieved since 1940. Life expectancy has increased from 46 years to 70 years and the death rate has declined from 18.4 per thousand to 6.5 per thousand. Per capita net income has ri.sen from $121 to $740. Public and private day school enrollment
has increased from 286,000 to 631,000. University and college enrollment has
grown from 5,000 to over 29,000.
Loiza Filtration Plant.
MUNICIPALITIES OF PUERTO RICO
Incurrence and Payment of Municipal Debt
Puerto Rico is divided into seventy-six contiguous municipalities, each of which consists of urban and rural areas. Municipalities may incur bonded debt only after receiving approval of the Governor of the Commonwealth. This is obtained only after recommendation of the Department of Justice, the Planning Board and the Department of the Treasury, and the bonds must be sold through the Govern ment Development Bank as fiscal agent. The borrowing capacity of the munici
palities is limited by law to 5% of their respective assessed valuations, except in the cases of San Juan, Ponce, Mayaguez, Arecibo, Bayamon and Caguas, where
the limit is 10%. There is no limitation on the amount of taxes that may be levied on property for the payment of public debt. The assessed valuation of all property in the Commonwealth as of January 1, 1963 was $2,146,198,120 and the net in
debtedness of all the municipalities (gross debt less sinking fund resources) was $52,114,752 or 2.43% of the assessed valuation.
The Municipal Law provides that interest on the public debt and amortization thereof constitute a first budgetary charge on any and all available municipal rev
enues. Property is assessed by the Secretary of the Treasury throughout Puerto Rico, and he collects directly all municipal and other taxes upon real and personal property. From these collections, the amount allocated for the payment of principal and interest on outstanding obligations is retained for each municipality and deposited in redemption funds. Sums sufficient to meet payments on municipal debt as it becomes due are withdrawn and paid by the Secretary of the Treasury of the Commonwealth from the appropriate municipal bond redemption fund.
Sources off Revenues
Revenues of the municipalities of Puerto Rico are chiefly derived from property taxes collected and from payments in lieu of taxes derived from agencies of the Commonwealth of Puerto Rico. At present each municipality is entitled to levy a basic municipal rate on real and personal property up to a maximum of two per cent for general operating purposes. Municipalities are also authorized to pledge and levy unlimited ad valorem taxes for the payment of bonded debt incurred under the provisions of the Municipal Borrowing Law. Six per cent of gross revenues collected in each municipality by the Puerto Rico Water Resources Authority reverts to the corresponding local government in lieu of taxes. Additional funds are received through appropriations from the General Fund of the Commonwealth Government in lieu of tax payments by the Puerto Rico Aqueduct and Sewer
Authority, and in the form of distribution of a portion of the cigarette tax and auto mobile license fees collected by the Commonwealth of Puerto Rico.
Tax Penalties and Reductions
In June, 1958, the Legislature enacted Public Law No. 67 which provided for an increase thereafter from 6% to 9% per annum in the interest rate charged on
delinquent taxes. Whereas no penalties were previously charged on delinquent taxes, other than interest, the Act provides that thereafter a penalty of 5% of the amount of the tax will be added after becoming 30 days delinquent, increasing to 10% after becoming 60 days delinquent.
Furthermore, as additional incentive for the prompt payment of property taxes,
the Legislature approved in 1959 Act No. 80, of June 25, 1959 granting a 10% discount if the taxes for the entire fiscal year are paid within 30 days; a 5% discount if paid during 60 days; and a 3% discount if half the taxes are paid within 30 days and the other half within 30 days after January 1 of the fiscal year. These discounts are granted only if all delinquent taxes including penalties are paid in full at the time the discount is claimed upon payment of current taxes.
Encouragement of home ownership and of the building of low and medium cost homes for middle income families has been one of the prime objectives of the Government in Puerto Rico in carrying out its basic policies. One form of stimula
tion of home ownership used has been the reduction of property taxes in recent years on low and middle income homes where the owner is the occupant of the residence.
Recognizing, however, the importance of the property tax in the fiscal require ments of the municipalities, the Commonwealth makes annual appropriations from the General Fund of the Treasury to the municipalities as compensation in the amount of the revenues lost from the reduction or non-collection of such property taxes.
Act No, 24 of June 8, 1962, grants complete property tax forgiveness on the first $15,000 of assessed valuation on all residences occupied by their owners, starting
Molinas de Puerto Rico.
Trigo Milling Corporation and Rice Mill at Guaynabo.
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Aerial View of Ponce.
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in the 1962-63 fiscal year. Such properties will remain on the tax rolls, and to receive the benefit of the tax forgiveness, the taxpayer must file a certificate with the Secretary of the Treasury to the effect that he is the owner and occupant of the residence so affected.
The Act further provides for an appropriation from the general fund of the Treasury to be made each year to the municipalities in the amount of the total of the taxes forgiven on assessed valuations of owner-occupied homes up to $15,000. The municipalities thereby would receive the full amount levied, the only difference being the Commonwealth Treasury instead of the property taxpayer becomes the source of payments in the case of owner-occupied residences up to this amount. And finally, said Act No. 24 provides that such tax forgiveness will be suspended
as to any municipality if in any fiscal year the appropriations to such municipality mentioned above should be discontinued and the available income of the munici pality is not sufficient to pay principal and interest on its bonded indebtedness.
It should be emphasized that Act No. 24 does not modify or lessen the pledge of the full faith, credit, and taxing power of this municipality. The obligation remains unchanged to levy a special tax on all taxable property, including the first $15,000 of assessed valuation of owner-occupied homes, if tax forgiveness shall be suspended in the circumstances mentioned above, in an amount sufficient, with
any other available funds, for the payment of the debt service on its outstanding bonds.
Municipal Credit History and Debt Administration
Among the Municipalities of Puerto Rico there has never been any recorded default or delinquency in the payment of principal of or interest on any obligation, either direct or indirect, nor has there been any forced or managed refunding of maturing bonds to avoid default.
The Municipal Borrowing Law now in effect incorporates the best features of an older municipal law and of the Model Municipal Borrowing Law sponsored by The National Municipal League, and authorizes the pledge of an unlimited ad valorem tax to the payment of bonds and notes. The laws of the Commonwealth of Puerto Rico restrict the purposes for which
municipal debt may be incurred. Loan funds can not be used for the payment of current operating expenses. These laws also define the responsibility of the munici
pal authorities, and safeguard fulfillment of the terms of every public obligation. Legal Investments
The bonds of the municipalities of Aguadilla, Bayamon, Carolina, Guaynabo, Mayaguez and Ponce are legal investments for Savings Banks and Trust Funds in the State of New York and for Savings Banks and Incorporated Insurers in California. They are also eligible for deposit by banks in Puerto Rico to secure public funds, and by insurance companies to qualify them as required by law to do business in Puerto Rico.
Tax Exemption
Under the provisions of the Acts of Congress now in force, the bonds and income therefrom are, in the opinion of Bond Counsel, exempt from Federal, State and Commonwealth of Puerto Rico Taxation.
Panoramic View of Mayaguez-
MUNICIPALITY OF AGUADILLA
Aguadilla is located on the northwestern coast of Puerto Rico, about 25 miles north of the City of Mayaguez and 82 miles west of San Juan. Its population
according to the 1960 Federal Census was 47,864 and its area is 37 square miles.
Aguadilla serves as a trading and distribution center for the surrounding area. The Aguadilla region is primarily agricultural in nature and its most important products are sugar cane, cotton, tobacco, and cattle and dairy products. The Coloso Sugar Mill, located in this municipality, produces over 60,000 tons of sugar annually and is the largest sugar mill on the northwestern coast. Port facilities for the bulk loading of sugar are substantial and much of the sugar produced by mills in the western and northern parts of Puerto Rico is shipped from this municipality.
Manufacturing activities of the municipality are carried out by 37 enterprises of all types and sizes as reported in the 1962 Census of Manufactures published by the Bureau of Statistics of the Department of Labor. The Puerto Rico Industrial Development Company has promoted three manufacturing plants here which pro duce baseballs and softballs, wearing apparel and shoes. The municipality's most
important plants are Wilrico, Inc., a subsidiary of Wilson & Co., Inc. of Chicago, Illinois and Moda Shoe Corporation, a subsidiary of Wellco Shoes Corp. of Waynesville. North Carolina.
An important United States military establishment, Ramey Air Base, is located in Aguadilla.
Public Housing Project.
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MUNICIPALITY OF AGUADILLA Property Tax Collections FISCAL
ASSESSED
TAX RATE
TOTAL
YEAR
VALUATION
PER $1,000
LEVY
1953-54
. . . .
$ 9,598,830
$14.50
1954-55
. . . .
16.50
1955-56
. .
1956-57
. .
9,932,850 11,658,280 12,301,060 11,669,700 15,002,180 15,698,010 19,294,590 20,276,120 21,161,250 21,335,060
1957-58 . . 1958-59* . . 1959-60
. .
1960-61
. .
1961-62
. .
1962-63
. .
1963-64
. .
* Increases in
CURRENT YEAR
$144,946 $108,408 163,892 139,658 . . 16.50 192,362 137,103 179,943 . . 16.50 145,912 . . 16.50 197,114 147,569 . . 275,937 17.30 189,740 . . 17.30 288,586 223,816 . . 19.30 300,8081: 240,926t . . 19.30 286,1321: 229,733t . . 19.30 295,0641: 234,288t . . 22.50 350,000§ Assessed Valuation resulted partly from annual growth in tax base and partly from a change in —
basis of assessment.
t Includes amounts appropriated from the general fund of the Commonwealth in reimbursement for taxes forgiven. § Official Estimate.
t The gross figure of taxes levied was reduced by discounts for prompt payment as follows: GROSS LEVY
DISCOUNTS
NET LEVY
1959-60
$309,096
$20,510
$288,586
1960-61
320,979 306,278 315,900
20,171 20,146 20,836
300,808 286,132 295,064
1961-62 1962-63
Cash Receipts FISCAL
CASH BALANCE
LOAN
PROPERTY TAX
OTHER
TOTAL
YEAR
BEGINNING OF YEAR
PROCEEDS
RECEIPTS
RECEIPTS
RECEIPTS
$ 188,720 193,814 272,890 250,569 250,413 310,547 424,605
$ 241,126
1956-57 . . . . . $ 1957-58
. . . .
1958-59 . . . . 1959-60 . . . . 1960-61 . . . . 1961-62 . . . . 1962-63 . . . .
37,101 44,959 41,569 554,225 46,603 81,526 95,860
$
$
—
52,406 80,055 81,818 123,720 190,592 162,078 152,625
516,000 —
51,000 —
250,000
273,869 870,708 374,289 492,005 472,625 827,230
Expenditures FISCAL
CAPITAL
DEBT
OTHER
TOTAL
CASH BALANCE
YEAR
EXPENDITURES
SERVICE
EXPENDITURES
EXPENDITURES
AT YEAR END
1956-57 . . . . . $ 1957-58 . . . . 1958-59 . . . . 1959-60 . . . . 1960-61
. . . .
1961-62 . . . . 1962-63 . . . .
8,434 13,502 25,846 474,824 114,211 —
56,155
$
— 10,107 26,842 55,839 44,244 46,575
$ 224,834 263,757 322,029 380,245 287,032 414,047 487,373
Trend of Bonded Indebtedness
$ 233,268 277,259
358,052 881,911 457,082 458,291 590,103
$
44,959 41,569 554,225 46,603 81,526 95,860 332,987
GROSS BONDED DEBT
AS OF
GROSS BONDED
REDEMPTION FUNDS
NET DEBT AS
PER CENT OF ASSESSED
JULY 1
DEBT
AS OF JULY I
OF JULY 1
VALUATION
1950 1955
$ 38,000
$14,478 —
$ 23,522
.92
PER CAPITA
$
.86
—
1^30
1957
1958 1959 1960 1961
1962 1963
* Includes $250,000 in
490,000 465,000 491,000 455,000 670,000*
478,033 439,051 449,906 397,808 594,261
3.27
11.05
2.96
9.72
2.54
10.26
2.24
9.51
3.17
14.00
bond anticipation notes to be retired out of the proceeds of a bond issue
totaling $500,000 to be sold on November 6, 1963. 12
11,967 25,949 41,094 57,192 75,739
current
TOTAL
COLLECTIONS
COLLECTIONS
LLECTIONSfl uncollected of PREVIOUS
respective levies
PER CENT OF
PER CENT OF
ON 6-30-63
CURRENT LEVY
CURRENT LEVY
total
YEARS
$50,770 27,001 21,576 25,734 42,812 37,047
65,634 37,134 45,787 38,337
$159,178 166,659 158,679
$ 7,130 10,667
74.79
109.82
85.21
101.69
7,675
71.27
82.49
171,646 190,381 226,787 289,450 278,060
8,362 15,889 28,192 25,381 28,507 35,687 60,776
81.09
95.39
74.86
96.58
275,520 272,625
68.76
82.19
77.56
100.30
80.09
92.44
80.29
96.29
79.40
92.40
Property tax collections are about 54% for Aguadilla and 46% for Commonwealth purposes.
Overlapping Debt Assessed Valuation, 1963 — 1964
Commonwealth
Net Direct Debt
$2,146,198,120
Commonwealth $228,086,687 Aguadilla share 0.99% . . . $ 2,258,058
Aguadilla
21,335,060
Aguadilla direct debt . . . .
Per cent of total A. V. . . .
0.99%
Net Overlapping Debt . . . $ 2,852,319
Ratio of net overlapping debt to Assessed Valuation
594,261
13.37%
Per capita net overlapping debt
$59.59
Bond Requirements, Next Five Years 1964
1965
1966
1967
1968
16,275
$ 35,000 14,887
$ 40,000 13,575
$ 40,000 12,075
$ 40,000 10,575
$ 51,275
$ 49,887
$ 53,575
$ 52,075
$ 50,575
New Issue (principal) $ 15,000
$ 15,000
$ 15,000
$ 25,000
$ 25,000
Principal
$ 35,000
Interest Total
Breakdown off Property Tax Rate (Per hundred dollars) Municipal
General Funds Loans
$ .78 44
Total Municipal
$1.22
Commonwealth
Total
1.03
$2.25*
The effective tax rate levy of Aguadilla is $2.05, since $.20 is granted as a reduction and is not collected as authorized by Act No. 16, approved May 31, 1960. This Act directs the Secretary of the Treasury of Puerto Rico to compensate the municipality in an amount equivalent to the reduction granted. 13
MUNICIPALITY OF BAYAMON
Bayamon, located on the northern coast of Puerto Rico about 6 miles to the south west of San Juan, is considered part of the San Juan metropolitan area. With a
population of 72,221, it is now the third largest municipality in Puerto Rico. Its present assessed valuation of $142,510,550, represents an increase of 1,599% against its valuation of $8,388,480 in 1950. In addition to being an important trading and distribution center, Bayamon is in the path of the rapid industrial growth of the San Juan metropolitan area. Manufacturing activity is carried on by 117 plants of all types and sizes as reported in the 1962 Census of Manufactures of the Bureau of Statistics of the Department
of Labor, producing finished steel products, cans, aluminum extrusions, tools, food and kindred products, and apparel and related products. The Puerto Rico Industrial Development Company has promoted and assisted 80 manufacturing plants with other factories in the process of establishment.
Some of the most important plants are: Kelvinator of Puerto Rico, Inc., which is a subsidiary company of American Motors Corporation and is engaged in the production of home refrigerators, the Caribbean Refining Company, built at a cost of over $12,000,000, Holsum Bakers of Puerto Rico, Inc., Commonwealth Extrusion Corp., Frozen Fruit Concentrates, Inc., Puerto Rican Can Company and Standard Steel and Wire Co., Inc.
Two large shopping centers, Santa Rosa and Bayamon Shopping Center, have been successfully operating in Bayamon since 1959. Well-known continental firms such as Woolworth's, Lerner's Shops, Thom McAn, Grand Union Supermarket, Franklin's, and Kresge, are established here. Bargain Town announced the open
ing of a store here; it will be one of the largest stores in Puerto Rico. It will occupy eight acres of land with a building of 135,000 square feet with parking facilities for over 600 cars. The store will include a supermarket, things for the home including furniture, appliances and televisions, garden and patio items, apparel for men, women, children and infants, snack bar, automotive service center including tires and accessories, and a toy and hobby department.
14
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MUNICIPALITY OF BAYAMON
Property Tax Collections FISCAL
ASSESSED
TAX RATE
TOTAL
YEAR
VALUATION
PER $1,000
LEVY
$21.50
$ 416,163 494,345 549,447 583,861 709,113 758,754 1,102,735 1,257,925$ 1,477,869$ 1,470,889$ 2,075,000§
. . $ 18,443,780
1953-54
. .
1954-55
. . . .
1955-56
. . . .
1956-57
. . . .
1957-58
. . . .
21,035,940 23,380,740 26,477,060 25,576,950 35,016,680 39,693,900 57,569,210 86,730,530 105,387,270 142,510,550
1958-59* . . . . 1959-60
. . . .
1960-61
. . . .
1961-62
. . . .
1962-63
. . . .
1963-64
. . . .
23.50 23.50
23.50 23.50 18.80 18.80 20.80 20.80
20.80 20.80
CURRENT YEAR
$ 249,176 354,357 334,017 287,644 376,064 483,298 886,339
979,605$ 1,199,352$ 1,139,874$ —
* Increases in Assessed Valuation resulted partly from annual growth in tax base and partly from a change in basis of assessment.
t Includes amounts appropriated from the general fund of the Commonwealth in reimbursement forgiven.
for taxes
§ Official Estimate.
t The gross figure of taxes levied was reduced by discounts for prompt payment as follows: GROSS LEVY
DISCOUNTS
1,333,907 1,571,107 1,564,713
75,982 93,238 93,824
NET LEVY
1959-60 1960-61
. . .
1961-62
. . .
1962-63
. . .
1,257,925 1,477,869 1,470,889
Cash Receipts FISCAL
CASH BALANCE
LOAN
PROPERTY TAX
OTHER
TOTAL
YEAR
BEGINNING OF YEAR
PROCEEDS
RECEIPTS
RECEIPTS
RECEIPTS
$ 393,070 361,796 447,256 521,172 687,319 962,285 1,493,917
$ 589,539 788,945 1,132,125 1,154,370 2,524,745 1,801,688 3,859,990
. . .
. $ 129,309
1957-58 . . .
135,597
1958-59 . . .
234,654 366,610 418,543 1,448,321 1,300,526
1956-57
1959-60 . . .
1960-61
.
1961-62
.
1962-63 . . .
$
$ 196,469
—
427,149
216,400
468,469 633,198 802,742 839,403 1,166,073
—
1,034,684 —
1,200,000
Expenditures FISCAL
CAPITAL
DEBT
OTHER
TOTAL
CASH BALANCE
YEAR
EXPENDITURES
SERVICE
EXPENDITURES
EXPENDITURES
AT YEAR END
$ 482,509 606,369 772,197 836,194 916,483 1,693,135 1,980,891
$ 583,251 689,888 1,000,169
$ 135,597 234,654
1956-57 . .
.
1957-58
. . .
1958-59
. .
. $
1959-60 1960-61
. .
1961-62
. .
1962-63
. . .
— 2,188 74,756 142,897 483,588 109,224 741,940
$ 100,742 81,331 153,216 123,346 94,896 147,124 153,245
1,102,437 1,494,967 1,949,483 2,876,076
366,610 418,543 1,448,321 1,300,526 2,284,440
GROSS BONDED DEBT
Trend of Bonded indebtedness
PER CENT OF AS OF
GROSS BONDED
REDEMPTION FUNDS
NET DEBT AS
ASSESSED
JULY 1
DEBT
AS OF JULY 1
OF JULY 1
VALUATION
1950
.
.
$
44,000
1955
108,000
1956
1958
566,000 513,000 378,000
1959
478,000
1957
$ 43,795 32,856 105,661 116,926 103,766 132,060 294,982 380,973
$
205 75,144 460,339 396,074
274,234 345,940 113,018 920,027
408,000 1961 1,301,000 525,740 1962 642,260 1,168,000 792,620 1963 1,435,380 2,228,000* * Includes $ .200.000 in bond anticipation notes to be retired out of the proceeds of a issue totaling $3,240,000 to be sold on November 6, 1963. 1960
16
.52
PER CAPITA
$
.92
.51
2.25
2.42
11.79
1.94
10.69
1.48
7.87
1.37
9.96
1.03
5.65
2.26
18.01
1.35
16.17
2.1 1
30.85
bond
CURRENT
TOTAL
COLLECTIONS
COLLECTIONS
LLECTIONSH UNCOLLECTED OF RESPECTIVE LEVIES
PER CENT OF
PER CENT OF
TOTAL
ON 6-30-63
CURRENT LEVY
CURRENT LEVY
$224,259
$ 473,435
113.76
529,002 448,317 424,866 704,805 827,774 1,346,605 1,150,021 1,340,468 1,366,643
$ 32,852 25,553
59.87
174,645 114,300 137,222 328,741 344,476 460,266 170,416
71.68
107.01
PREVIOUS
YEARS
141,116 226,769
28,272 26,171 29,140 49,945 81,680 156,593 150,633
331,015
60.79
81.59
49.27
72.76
53.03
99.39
63.70
109.10
80.38
122.12
77.87
91.42
81.15
90.70
92.91
92.91
11 Property tax collections are about 50% for Bayamon and 50% for Commonwealth purposes.
Overlapping Debt Assessed Valuation, 1963 —1964
Commonwealth
Net Direct Debt
$2,146,198,120
Commonwealth . . .
$228,086,687
142,510,550
Bayamon share 6.6% Bayamon direct debt .
15,053,721 1,435,380
Net Overlapping Debt
$ 16,489,101
Bayamon Per cent of total A. V
6.6%
Ratio of net overlapping debt to Assessed Valuation Per capita net overlapping debt
13.31%
$228.31
Bond Requirements, Next Five Years 1967
1968
$ 85,000 30,850
$ 85,000 27,587
$ 85,000 24,325
$108,725
$115,850
$112,587
$109,325
$100,000
$100,000
$100,000
$100,000
1964
1965
$143,000 38,895
$ 75,000 33,725
$181,895
New Issue (principal) $ 90,000
Principal Interest Total
1966
Breakdown of Property Tax Rate {Per hundred dollars) Municipal
General Funds Loans
Total Municipal Commonwealth
Total
$ .71 -34
$1.05 103
$--08*
* The effective tax rate levy of Bayamon is $1.88, since $.20 is granted as a reduction and is not collected as authorized by Act No. 16. approved May 31, 1960. This Act directs the Secretary of the Treasury of Puerto Rico to compensate the municipality in an amount equivalent to the reduction granted. 17
MUNICIPALITY OF CAROLINA
Carolina, sixth largest municipality of Puerto Rico, is located in the northern part of the island, just 8 miles southeast of San Juan and is considered part of the metropolitan area of the Capital. Its population according to the 1960 Federal Census is 40,923, an increase of 40% over its population of 29,224 in 1950. A four-lane highway, which connects Carolina with the San Juan metropolitan area, has greatly contributed to the development of Carolina as an important industrial center.
The assessed valuation of the municipality of Carolina has increased from $5,528,415 in 1950 to $71,072,810 currently, an increase of 1,186%. Manufacturing activity is carried on within the Carolina area by 77 enter prises of all types and sizes, as reported in the 1962 Census of Manufactures pub lished by the Bureau of Statistics of the Department of Labor. The Puerto Rico Industrial Development Company has promoted and assisted 70 manufacturing plants producing food and kindred products, textile mills products, apparel and related products, furniture and fixtures, paper, chemicals, rubber, stone, clay, glass-fabricated metal products, and electrical machinery. About five new plants are in the process of establishment. Some of the most important manufacturing plants are: Parke, Davis & Co., Puerto Rico Clay Products Corp., Phelps Dodge Copper Products Corp. of Puerto Rico, Sealy Mattress of Puerto Rico Inc., Chicle Adams C. A., International Glass Fiber, Inc. and Johnson & Johnson Interamericana S. A.
The Puerto Rico International Airport, one of the finest in the world, is located
in this municipality. It is served by twelve regularly scheduled airlines, and cleared over 2 million passengers in fiscal 1962-1963 on international and local or interisland flights. The only horse race track on the island, "El Comandante" is also located in Carolina. Its plant is of the most modern design and is considered one of the best in the world. Total investment in this plant is approximately $7 million. It has a capacity of over 20,000 people.
18
Low Cost Housing Development.
7a
PfArxt'ii'
'
■'s
' •>
'IX^'
~
•
b'i
»•
I'
>^*1
MUNICIPALITY OF CAROLINA Property Tax Collections FISCAL
ASSESSED
TAX RATE
TOTAL
YEAR
VALUATION
PER $1,000
LEW
1953-54
. . . . $10,683,980
1954-55
. . . .
1955-56
. . . .
1956-57 1957-58
. . . . . . . .
1958-59* . . . . 1959-60
. . . .
1960-61
. . . .
1961-62 1962-63
. . . . . . . .
1963-64
. . . .
CURRENT YEAR
$ 217,979 275,953
$122,391 155,554
23.50
286,410 330,549 474,880
19.20
590,098
172,131 205,358 280,192 309,937
19.20
691,499 802,749t 957,460$ 952,580$ 1,150,000§
$19.70
12,600,600 13,078,090 16,580,890 18,331,690
21.90
24,237,430 26,076,350 50,818,900 56,447,590 58,947,590 71,072,810
21.90 23.50
21.20 21.20 23.20 23.20
406,527 603,076$ 706,146$ 647,610$ —
* Increases in Assessed Valuation resulted partly from annual growth in tax base and partly from a change in basis of assessment.
t Includes amounts appropriated from the general fund of the Commonwealth in reimbursement
for taxes
forgiven. § Official Estimate.
t The gross figure of taxes levied was reduced by discounts for prompt payment as follows: CROSS LEW
DISCOIWTS
NET LEW
1959-60 1960-61
. . . .
1961-62
. . . .
1962-63
. . . .
852,466 1,005,574 1,013,178
49,717 48,314 60,598
802,749 957,460 952,580
Cash Receipts FISCAL
CASH BALANCE
LOAN
PROPERTY TAX
OTHER
TOTAL
YEAR
BEGINNING OF YEAR
PROCEEDS
RECEIPTS
RECEIPTS
RECEIPTS
$ 580,892 429,792 520,912 677,629 1,053,220 1,058,644
1956-57 . . . 1957-58 . . . 1958-59 . . .
. $
1960-61 . . .
82,071 200,788 155,879 194,403 232,814
1961-62 . . . 1962-63 . . .
257,032 372,216
1959-60 . . .
$
25,000
$ 104,991
$ 225,901
262,000
254,757 269,186 410,683 399,780
175,035 251,726 266,946 391,440
257,032 372,216
801,612 945,051
—
1,100,000
2,417,267
Expenditures FISCAL
CAPITAL
DEBT
OTHER
TOTAL
CASH BALANCE
YEAR
EXPENDITURES
SERVICE
EXPENDITURES
EXPENDITURES
AT YEAR END
1956-57 . . . . . $ 111,904 1957-58 . . . . . 71,956 1958-59 . . . . . 33,741 1959-60 . . . . . 69,966 1960-61
. . . .
1961-62 .
. . 1962-63 . . . . .
359,714 39,915 595,236
$
39,295
$ 310,976
$ 462,175
39,388
363,357
40,177
408,470
44,372 39,159 37,252 45,093
524,880 630,129 866,193 1,025,927
474,701 482,388 639,218 1,029,000 943,460 1,666,256
Trend off Bonded indebtedness
$ 200,788 155,879 194,403
232,814 257,032 372,216 1,123,227
GROSS BONDED DEBT
PER CENT OF AS OF
GROSS BONDED
REDEMPTION FUNDS
NET DEBT AS
ASSESSED
JULY 1
DEBT
AS OF JULY 1
OF JULY 1
VALUATION
1950 1955 1956 1957 1958 1959 I960 1961 1962 1963
. . . . . . . . . . . . . . . . . .
.
$ 294,000
.
164,000
. . .
129,000 352,000 325,000 298,000 271,000 506,000 458,000 1,514,000*
$ 87,760 46,826 37,075 43,820 70,445 111,203 184,438 276,468 353,975 502,170
$ 206,240 117,174 91,925 308,180 254,555 186,797 86,562 229,532 104,025 1,011,830
5.39
20
$10.06
1.30
5.61
.99
4.41
2.12
12.04
1.77
11.12
1.23
10.20
1.04
6.62
1.00
12.36
.81
11.19
2.57
37.00
* Includes $1,100,000 in bond anticipation notes to be retired out of the proceeds of a bond issue totaling $2,350,000 to be sold on November 6, 1963
PER CAPITA
CURRENT
TOTAL
COLLECTIONS
COLLECTIONS
LLECTIONSfl UNCOLLECTED OF PREVIOUS
RESPECTIVE LEVIES
PER CENT OF
PER CENT OF
ON 6-30-63
CURRENT LEVY
CURRENT LEVY
TOTAL
YEARS
$145,952 93,121
$268,343 248,675
71,595 97,338 149,969 190,509 296,115 125,429
243,726 302,696 430,161 500,446
$
702,642 728,505 795,929 860,555
89,783 185,945
9,879
56.14
123.10
13,308 21,666 34,067 48,657 77,665 82,945 121,748
56.37
90.11
60.10
85.10
62.13
91.57
59.00
90.58
171,581 277,970
73.75
83.13
70.82
90.34
52.52
84.80
58.79
101.61
75.13
90.75
Property tax collections are about 56% for Carolina and 44% for Commonwealth purposes.
Overlapping Debt Net Direct Debt
Assessed Valuation, 1963 — 1964
Commonwealth
$2,146,198,120
$228,086,687
Commonwealth
7,549,669 1,011,830
Carolina share 3.31%
Carolina
71,072,810
Per cent of total A. V. . . .
Carolina direct debt .
Net Overlapping Debt
3.31%
Ratio of net overlapping debt to Assessed Valuation Per capita net overlapping debt
$
8,561,499
12.03% $209.21
Bond Requirements, Next Five Years
Principal Interest Total
1964
1965
1966
1967
1968
$ 44,000
$ 30,000 14,988
$ 30,000 13,762
$ 30,000 12,537
$ 30,000
16,572
$ 60,572
$ 44,988
$ 43,762
$ 42,537
$ 41,313
$100,000
$100,000
$100,000
$100,000
11,313
New Issue (principal) $100,000
Breakdown of Property Tax Rate (Per hundred dollars) Municipal
General Funds Loans
Total Municipal Commonwealth
Total
$ .99 30
$1.29 1.03
$2.32*
* The effective tax rate levy of Carolina is $2.12, since $.20 is granted as a reduction and is not collected as authorized by Act No. 16. approved May 31. I960. This Act directs the Secretary of the Treasury of Puerto Rico to compensate the municipality in an amount equivalent to the reduction granted. 21
MUNICIPALITY OF GUAYNABO
Guaynabo is located on the northern part of the island, adjacent to San Juan and
is considered part of the metropolitan area. Its population according to the 1960 Federal Census is 39,718, an increase of more than 36% over its population of 29,120 in 1950. Its assessed valuation of $91,080,940 has increased more than 1,660% over the assessed valuation of $5,175,155 in 1950.
Industrial development has advanced rapidly. The manufacturing activity is carried on by 39 enterprises, according to the Census of Manufacturing Industries published by the Bureau of Statistics of the Department of Labor. The Puerto Rico Industrial Development Company has promoted 24 manufacturing plants produc ing glass containers,cement, household furniture, kitchen cabinets, electric measuring instruments, paints and food and kindred products. Puerto Rico's first rice mill, a $2,000,000 venture, has been established by Rice
Growers Association of California on a 4'/i-acre site along San Juan Bay in the town of Guaynabo and provides an annual $150,000 payroll. It is adjacent to the $5,000,000 flour and feed mill opened by Nebraska Consolidated Mills of Omaha, Nebraska. Some other important plants are: Caribbean Container Co., Farmer's Rice Co. of Puerto Rico, Inc., Molinos de Puerto Rico, Inc., Puerto Rico Cement
Corp., Puerto Rico Glass Corp., Superior Paint Mfg. Co. and Warner Brothers Co. of Puerto Rico, Inc.
Panoramic View of New Housing Project.
' 'M
Filtration Plant of the Puerto Rico Aqueduct and Sewer Authority
Public Housing Project.
11*
Medical Center.
i
MUNICIPALITY OF GUAVNABO Property Tax Collections FISCAL
ASSESSED
TAX RATE
TOTAL
YEAR
VALUATION
PER $1,000
LEVY
. . $ 9,566,370
$14.20
1953-54
. .
1954-55
. . . .
18,890,260
16.20
1955-56
. . . .
26,209,210
16.20
1956-57
. . . .
16.20
1957-58
. . . .
1959-60
. . . .
1960-61
. . . .
29,377,130 35,078,380 43,620,990 47,237,440 56,585,560
1961-62 1962-63
. . . . . . . .
67,370,530 73,005,220
21.30
1963-64
. . . .
91,080,940
25.30
1958-59* . . . .
CimRENT YEAR
$ 243,244
$ 146,930
306,022 424,589 423,452 546,113 640,779 715,740 939,356$ 1,228,691$ 1,532,465$ 2,000,000§
16.20 13.80 13.80
17.20 19.20
257,588 227,704 250,757 286,412 344,722 506,648 684,4111 899,286$ 1,323,107$ —
* Increases in Assessed Valuation resulted partly from annual growth in tax base and partly from a change in basis of assessment.
t Includes amounts appropriated from the general fund of the Commonwealth in reimbursement forgiven.
for taxes
§ Official Estimate.
t The gross figure of taxes levied was reduced by discounts for prompt payment as follows: GROSS LEVY
DISCOUNTS
NET LEVY
$ 49,078
1961-62
$ 764,818 995,530 1,305,546
1962-63
1,669,944
$ 715,740 939,356 1,228,691 1,532,465
1959-60 1960-61
56,174 76,855 137,479
Cash Receipts FISCAL
CASH BALANCE
LOAN
PROPERTY TAX
OTHER
TOTAL
YEAR
BEGINNING OF YEAR
PROCEEDS
RECEIPTS
RECEIPTS
RECEIPTS
1956-57 . . . . . $ 107,838 1957-58 . . . . . 71,774 1958-59 . . . . . 76,311 1959-60 . . . . . 1960-61
. . . .
1961-62
. . . .
$
$
637,290 652,263
63,536 196,515 254,076 338,187
500,000 500,000
110,556 455,935
1962-63 . . . . .
—
355,912 483,838 1,172,949
—
—
$ 254,347 212,285 269,901 305,705 310,965 529,010 680,044
$ 317,883 408,800
523,977 1,143,892 1,166,877 1,012,848 1,852,993
Expenditures FISCAL
CAPITAL
DEBT
OTHER
TOTAL
CASH BALANCE
YEAR
EXPENDITURES
SERVICE
EXPENDITURES
EXPENDITURES
AT YEAR END
. $
1956-57
1957-58 . . . . .
1958-59
. . . .
1959-60
. . . . . .
1960-61 1961-62 1962-63
. . . .
1,866 16,795 7,972 188,825 486,241 103,519 27,060
$
39,467 16,465 1,245 16,007 13,022 96,948 89,600
$ 312,614 371,003 480,515 593,681 486,259 797,408 1,326,864
Trend of Bonded indebtedness
$ 353,947 404,263 489,732 798,513 985,522 997,875 1,443,524
$
71,774 76,31 1 1 10,556 455,935 637.290 652,263
1,061,732
GROSS BONDED DEBT
PER CENT OF
AS OF
GROSS BONDED
REDEMPTION FUNDS
NET DEBT AS
ASSESSED
JULY 1
DEBT
AS OF JULY I
OF JULY 1
VALUATION
1950
1955
1956 1957 1958 1959 1960 1961
24
.
.
.
. . .
$ 51,500 109,500 74,500
61,000 47,500 32,500 521,500
1962
967,500 913,500
1963
859,000
$ 51,500 65,732 48,133 57,285 47,500 32,500 154,672 195,322 244,738
372,842
$
— 43,768 26,367
3,715 —
—
366,828 772,178 668,762 486,158
1.00
PER CAPITA
$ 1.77
.58
3.76
.38
2.56
.21
2.09
.14
1.63
.07
1.12
1.10
13.13
1.71
24.36
1.36
22.99
1.17
21.63
CURRENT
TOTAL
COLLECTIONS
COLLECTIONS
LLECTION UNCOLLECTED OF PREVIOUS
RESPECTIVE LEVIES
PER CENT OF
PER CENT OF
ON 6-30-63
CURRENT LEVY
CURRENT LEVY
TOTAL
YEARS
$ 12,399 13,844 44,175 28,460 41,762 26,759 52,911 59,402 121,382 209,358
$ 295,158 351,394
$148,228 93,806 79,268 118,573 195,507 294,086 325,578 137,268 138,507 357,110
306,972 369,330 481,919 638,808 832,226 821,679 1,037,793 1,680,217
60.40
121.34
84.17
114.83
53.63
72.30
59.22
87.22
52.45
88.25
53.80
99.69
70.79
116.27
73.25
87.47
73.19
84.46
86.34
109.64
*1 Property tax collections are about 59% for Guaynabo and 41% for Commonwealth purposes.
Overlapping Debt Net Direct Debt
Assessed Valuation, 1963 — 1964 Commonwealth
Guaynabo
$2,146,198,120
. . . .
Commonwealth . . .
$228,086,687 $
91,080,940
Guaynabo share 4.24% Guaynabo direct debt
4.24%
Net Overlapping Debt
$ 10,157,034
Per cent of total A. V.
9,670,876 486,158
Ratio of net overlapping debt to Assessed Valuation
11.15%
Per capita net overlapping debt
$255.73
Bond Requirements, Next Five Years 1966
1967
$ 64,500 31,525
$ 64,500 29,200
$ 60,000 26,875
$ 70,000 24,775
$ 70,000 22,325
$ 96,025
$ 93,700
$ 86,875
$ 94,775
$ 92,325
$ 50,000
$ 50,000
$ 50,000
$ 75,000
1964
Principal Interest Total
1965
1968
New Issue (principal) $ 50,000
Breakdown off Property Tax Rate (Per hundred dollars) Municipal General Funds Loans
Total Municipal Commonwealth
Total
$1.26 .24
$1.50 1.03
$2.53=-'
The effective tax rate levy of Guaynabo is $2.33, since $.20 is granted as a reduction and is not collected as authorized by Act No. 16. approved May 31. I960. This Act
directs the Secretary of the Treasury of Puerto Rico to compensate the municipality in an amount equivalent to the reduction granted. 25
MUNICIPALITY OF MAYAGUEZ
Mayaguez, located at the mid-point of Puerto Rico's west coast, serves as the most important center serving the western region of the island. The total population of the municipality according to the 1960 Federal Census is 83,850 inhabitants in an area of 57 square miles. As a regional center, Mayaguez presently serves as a primary distribution and trading center for an area incorporating about fourteen other municipalities. Most of these municipalities are connected by a modern four-lane highway and are within 30 minutes traveling distance and, together with Mayaguez, contain a population estimated at 358,000. Some 1,678 wholesale, retail, and service enter prises of all sizes were operating in Mayaguez at the time of the 1958 Census of Business.
Manufacturing activity is carried on within the municipality by 162 enterprises of all types and sizes, as reported in the 1962 Census of Manufactures of the Bureau of Labor Statistics. New industrial plants promoted or assisted by the Economic
Development Administration total 48, with about eight more preparing to get under way. One of the most important plants in Star-Kist Foods, Inc. which installed a $2.7 million cannery, with a capacity for a 30 million pound annual pack of tuna fish taken off the coast of Peru. Recently the Del Monte Company inaugurated a modern tuna fish cannery in this municipality. Besides raw sugar, some of the
leading manufactures of Mayaguez are: apparel, food products, beer, rum, and
animal feed. Needlecraft skills have had a particularly long tradition among Mayaquez' workers.
A Foreign-Trade Zone has been established in Mayaguez by the Puerto Rico Industrial Development Company, where foreign and domestic merchandise of every description may be brought into the zone without being subject to customs laws governing the entry of goods or the payment of duty thereon. Puerto Rico's third largest seaport is located in Mayaguez with facilities adequate for most cargo shipping. The site of the Trade Zone is readily accessible to the port area. Three passenger flights daily arrive at Mayaguez from San Juan International
Airport, where excellent connections exist with the rest of the world. Air cargo service is also available and is supplied by the more important airlines. The University of Puerto Rico maintains its College of Agricultural and Mechani cal Arts in Mayaguez with an enrollment of about 3,600 students. Under the
sponsorship of the University and the Atomic Energy Commission the Puerto Rico Nuclear Center operates an atomic reactor installation at the college, set up for training programs. The Federal Agricultural Experiment Station is also located there where it conducts research in tropical agriculture.
Many of the departments and agencies of the Commonwealth Government maintain regional offices in Mayaguez to serve parts of western Puerto Rico. The
Federal Government has a missile tracking station installed there, serving the Atlantic Missile Range base at Cape Canaveral, Florida.
26
- iu
MoyafiUL'z Airport.
Yi .^AHiSS
i iii f>'
.
MUNICIPALITY OF MAYAGUEZ Property Tax Collections FISCAL
ASSESSED
TAX RATE
TOTAL
YEAR
VALUATION
PER $1,000
LEVY
1953-54
. . . . $41,568,810
1954-55 1955-56 1956-57
. . . . . . . . . . . .
46,306,140
21.70
47,743,480 47,777,200
21.70
1957-58 . . . . 1958-59* . . . .
56,012,360
21.70
70,249,840 72,859,430
20.00
1959-60
. . . .
1960-61 1961-62 1962-63 1963-64
. . . .
. . . .
. . . .
. . . .
$ 849,981 1,004,843 1,036,034
$19.70
1,116,683 1,153,974 1,264,255 1,253,927 1,352,115t l,522,440t
21.70
18.80
79,491,860
22.00
80,808,430 85,449,920
23.50
85,559,110
26.90
CURRENT YEAR
24.50
l,614,401t 1,800,000§
$ 568,883 711,078 766,794 732,939 760,867 961,698 940,990
l,107,754t l,275,239t l,363,863t —
* Increases in Assessed Valuation resulted partly from annual growth in tax base and partly from a change in basis of assessment.
t Includes amounts appropriated from the general fund of the Commonwealth in reimbursement for taxes forgiven. § Official Estimate.
t The gross figure of taxes levied was reduced by discounts for prompt payment as follows:
1959-60 1960-61 1961-62 1962-63
. . . .
. . . .
. . . .
GROSS LEVY
DISCOUNTS
NET LEVY
$1,345,510 1,449,253 1,628,735 1,741,223
$ 91,583 97,138 106,295 126,823
$1,253,927 1,352,115 1,522,440 1,614,401
Cash Receipts FISCAL
CASH BALANCE
loan
property tax
OTHER
TOTAL
year
beginning of year
PROCEEDS
RECEIPTS
RECEIPTS
RECEIPTS
$ 315,000
$ 455,028
$ 533,852 610,187 749,261 835,704 985,312 1,041,287 1,205,333
$1,303,880 1,226,921
1956-57 . . . . . $1,272,263 1957-58 . . . . 762,086 1958-59 . . . . 768,872
1959-60 . . 1960-61 . . . 1961-62 . . 1962-63 .
. . . . .
1,259,162 1,971,337 1,781,562 1,699,599
—
616,734
750,000 1,280,000
714,146 608,398
—
947,753
202,000 2,790,000
875,489 1,053,813
2,213,407 2,724,102 1,933,065 2,118,776 5,049,146
Expenditures FISCAL
CAPITAL
DEBT
OTHER
TOTAL
CASH BALANCE
YEAR
EXPENDITURES
SERVICE
EXPENDITURES
EXPENDITURES
AT YEAR END
$ 198,995
$ 765,552
$1,814,057
$ 762,086
215,010 204,950
992,551 1,187,077
188,562 391,092 380,020
1,255,928 1,580,301 1,582,674
418,329
1,834,497
1,220,135 1,723,1 17 2,011,927 2,122,840 2,200,739 3,255,776
768,872 1,259,162 1,971,337 1,781,562 1,699,599 3,492,969
1956-57 1957-58 1958-59
1959-60
1960-61 1961-62 1962-63
. . . $ 849,510 , . 12,574 331,090 567,437 . . 151,447 238,045 1,002,950
Trend off Bonded Indebtedness
GROSS BONDED DEB I PER CENT OF
AS OF
GROSS BONDED
REDEMPTION FUNDS
NET DEBT AS
ASSESSED
JULY 1
DEBT
AS OF JULY 1
OF JULY I
VALUATION
$443,215
$1,121,785 1,209,253 1,026,700 1,195,257 997,224 1,514,327 2,590,537 2,376,313 2,339,105 4,880,046
6.53
$17.93
3.67
19.45
1950 1955 1956 1957
1958 1959
1960 1961 1962 1963
. . . . . .
$1,565,000 1,698,000 1,551,000 1,710,000 1,555,000 2,140,000 3,175,000 2,906,000 2,793,000 5,254,000*
488,747 524,300 514,743 557,776 625,673 584,463
529,687 453,895 373,954
* Includes 5 150.000 in bond anticipation notes to be retired out
totaling $845,000 to be sold on November 6, 1963. 28
of the proceeds of a
PER CAPITA
3.25
17.76
3.58
19.59
2.78
17.81
3.05
24.51
4.36
37.87
3.66
34.66
3.46
33.31
6.14
63.04
bond issue
CURRENT
TOTAL
COLLECTIONS
COLLECTIONS
LLECTIONS^I UNCOLLECTED OF RESPECTIVE LEVIES
PER CENT OF
PER CENT OF
TOTAL
ON 6-30-63
CURRENT LEVY
CURRENT LEVY
$1,034,573
$ 65,140
66.93
881,430 1,036,013 879,911 1,126,637 1,325,763 1,185,868 1,335,437 1,478,331 1,559,222
63,425 76,928 77,452 76,166 65,798 84,479 80,779
70.77
87.72
74.01
100.00
65.64
78.80
81.93
98.77
129,386
83.76
97.10
250,537
84.48
96.58
PREVIOUS YEARS
$465,690 170,352 269,219 146,972
365,770 364,065 244,878 227,683 203.092
195,359
121.72
65.93
97.63
76.07
104.87
75.04
94.57
^ Property tax collections are about 62% for Mayaguez and 38% for Commonwealth purposes.
Overlapping Debt Assessed Valuation, 1963 — 1964
Mayaguez
Net Direct Debt
$2,146,198,120
Commonwealth . .
85,559,110
. . . .
3.99%
Per cent of total A. V.
Commonwealth . . .
$228,986,687
Mayaguez share 3.99% Mayaguez direct debt
$
Net Overlapping Debt
$ 13,980,705
9,100,659 4,880,046
Ratio of net overlapping debt to Assessed Valuation
16.34%
Per capita net overlapping debt
$167.73
Bond Requirements, Next Five Years 1964
Principal . Interest Total .
1965
1966
1967
1968
$387,000
$372,000
$337,000
$337,000
$337,000
175,935
163,430
150,000
137,970
125,940
$562,935
$535,430
$487,000
$474,970
$462,940
$ 25,000
$ 25,000
$ 25,000
$ 30,000
New Issue (principal) $ 25,000
Breakdown of Property Tax Rate (Per hundred dollars) Municipal
General Funds Loans
Total Municipal Commonwealth
Total
$ .94 72
$1.66 1.03
$2.69*
* The effective tax rate of Mayaguez is $2.49. since $.20 is granted as a reduction and is not collected as authorized by Act No. 16, approved May 31, 1960. This Act directs the Secretary of the Treasury of Puerto Rico to compensate the municipality in an amount equivalent to the reduction granted. 29
MUNICIPALITY OF PONCE
Ponce, the second largest city in Puerto Rico, with a 1960 population of 145,586, is the center of one of Puerto Rico's most integrated industrial and agricultural regions, and Ponce's approximate 2,350 wholesale, retail, and service enterprises serve a trading area with a population of over 460,000.
The Ponce-dominated region has experienced marked industrial growth. Over 100 manufacturing firms have been promoted under the Industrial Development Program and industrial investment in the region is estimated to total some 30 per cent of all new private industrial investment made in Puerto Rico. A large part of this investment is concentrated in municipalities immediately to the west of Ponce in three petrochemical plants, whose total investment is about $135 million. These
include Commonwealth Oil Refining Co., Caribe Nitrogen Corp., a subsidiary of W. R. Grace & Co., producing ammonium sulfate, and the ethylene glycol plant of a Union Carbide subsidiary.
Among the plants within the municipality are a textile mill which is a subsidiary of Indian Head Mills, and a tuna fish cannery, a subsidiary of Van Camp Sea Food. Excluding sugar and its derivatives, some of Ponce's leading manufactures are: cement, rum,food products, textiles, wearing apparel, candy, construction materials,
leather goods, furniture. The Porto Rico Iron Works, Inc., is capable of handling all major iron and steel projects for both light and heavy industry. Agricultural activity in the Ponce region includes the growing of sugar cane, coffee culture, dairying, and the raising of beef cattle and vegetables. Sugar mills in the Ponce region grind about 35 per cent of all cane ground on the island. A sugar refinery operates in conjunction with the Ponce mill as does one of the
island's largest rum distilleries, Destilen'a Serralles, maker of Don Q Rum. A
farmers cooperative, based in Ponce, handles the financing, warehousing, and marketing of an important part of Puerto Rico's coffee crop. A $2.5 million shopping center, one of the most modern in the Caribbean, is located five minutes from downtown Ponce. Covering I41/2 acres, the center has 18 stores and shops and includes such firms as Thom McAn, Kresge, Grand Union Supermarkets.
The port of Ponce, second largest in Puerto Rico, serves the shipping needs of the region. Ponce's airport handles flights connecting with San Juan International Airport.
The home offices of the second and third largest Puerto Rican chartered com
mercial banks have been located in the city since the time of Spanish rule. The rapidly growing University of Santa Maria in Ponce has an enrollment of about
2,500. Agencies of the Commonwealth Government maintain regional offices in Ponce to serve the southern area of the island.
Hotel accommodations have been enlarged to meet commercial needs and Puerto Rico s rapidly growing tourist flow. The 170-room Ponce Intercontinental Hotel,
constructed at a cost of about $4 million, operated by Intercontinental Hotels Corp.. a Pan American Airways subsidiary, was opened in I960, while Ponce's oldest
established hostelry, the Hotel Melia, has been expanded and modernized.
30
iftrff
Private Housing
Piiiif
im-
I
I gaassis Ponce District Hospital.
Intercontinental Hotel
Commonwealth Oil Refinery.
Ssi
1
MUNICIPALITY OF PONCE Property Tax Collections FISCAL
ASSESSED
TAX RATE
TOTAL
YEAR
VALUATION
PER $1,000
LEVY
$20.90
$1,645,373
$1,094,672
22.90
1,806,307
1,312,796
22.90
1,873,176 1,992,253 2,079,623 2,111,467 2,020,298 2,300,583$
1,355,511 1,418,601 1,270,325 1,481,609 1,547,928 1,897,648$
1953-54 1954-55 1955-56
. . . . $ 77,780,750 . . . . 78,878,020 . . . . 81,798,070
1956-57 1957-58
. . . . . . . .
85,770,410 90,618,270 119,722,660 127,546,330 137,370,000 140,829,190 148,826,770 160,280,390
1958-59* . . . . 1959-60 1960-61
. . . . . . . .
1961-62
. . . .
1962-63 1963-64
. . . . . . . .
22.90 22.90 18.40 18.40 20.40
CimRENT YEAR
23.80
3,003,284$
2,436,894$
23.80
2,823,837$ 3,050,000§
2,301,895$
23.80
—
* Increases in Assessed Valuation resulted partly from annual growth in tax base and partly from a change in basis of assessment.
t Includes amounts appropriated from the general fund of the Commonwealth in reimbursement for taxes forgiven. § Official Estimate.
t The gross figure of taxes levied was reduced by discounts for prompt payment as follows: GROSS LEVY
DISCOUNT
1961-62 . . .
$2,174,082 2,470,707 3,214,684
$153,784 170,124 211,400
$2,020,298 2,300,583 3,003,284
1962-63 . . .
3,054,884
231,047
2,823,837
1959-60 . . .
1960-61 . . .
NET LEVY
Cash Receipts FISCAL
CASH BALANCE
LOAN
PROPERTY TAX
OTHER
TOTAL
year
beginning of year
PROCEEDS
RECEIPTS
RECEIPTS
RECEIPTS
$1,000,000
$ 698,949 1,327,106 1,169,494 1,038,678 1,546,058 1,350,048 2,135,399
$1,325,283 1,450,109 1,574,680 1,731,885 1,866,515
$3,024,232 2,777,215 2,746,502 3,770,563 4,442,573 4,710,681 5,823,148
1956-57 . . . . . $2,030,165 1957-58 . . . . 2,408,936 1958-59 . . . . 1959-60 . .
1960-61 1961-62
.
. . . . . . . .
1962-63 . . . . .
2,277,339 1,968,405 2,418,579 2,826,964 2,273,019
2,328 1,000,000 1,030,000 1,007,865 1,350,000
2,352,768 2,337,749
Expenditures FISCAL
CAPITAL
DEBT
OTHER
TOTAL
CASH BALANCE
YEAR
EXPENDITURES
SERVICE
EXPENDITURES
EXPENDITURES
AT YEAR END
$ 444,425
$1,567,665
$2,645,461
$2,408,936
599,988 538,288 475,141 662,647 668,244 687,373
1,983,542 2,175,314 2,292,497 2,543,201 2,935,938 3,915,881
2,908,812
2.277,339
3,055,436 3,320,389
1,968,405 2,418,579
4,034,188
2,826,964
5,264,626 5,934,565
2,273,019 2,161,602
1956-57
.
1957-58
.
1958-59
1959-60 1960-61
.
. . . $ 633,371 . . 325,282 . 341,834
. .
1961-62 1962-63
552,751 828,340 1,660,444 1,331,310
Trend of Bonded Indebtedness
GROSS BONDED DEBT PER CENT OF
AS OF
GROSS BONDED
REDEMPTION FUNDS
NET DEBT AS
ASSESSED
JULY 1
DEBT
AS OF JULY 1
OF JULY I
VALUATION
$571,718 747,665 737,193 673,727 660,159 706,178 837,766
$1,977,282
6.26
$20.10
2,487,335 2,914,807 3,584,273
4.74
29.69
3,193,841 2,743,822 3,207,234 3,810,550
4.26
30.43
2.88
27.21
3.17
27.78
3.34
31.52
4,388,443 5,755,136
3.62
34.98
4.38
44.74
1950 1955
$2,549,000 3,735,000 3,262,000 4,258,000
1956 1957 1958
1959
1960 1961 1962 1963
.
3,859,000 3,450,000 4,045,000 4,589,000 5,092,000 6,514,000*
778,450 703,557 758,864
3.99
25.72
4.96
33.58
* Includes $595,000 in bond anticipation notes to be retired out of the proceeds of a bond issue
32
PER CAPITA
LLECTION Sfl UNCOLLECTED OF PRIiVIOUS
YEARS
$706,035
438,245 401,429 363,378 578,543 739,037 596,071 416,161
265,240 370,622
CURRENT
TOTAL
COLLECTIONS
COLLECTIONS
RESPECTIVE LEVIES
PER CENT OF
PER CENT OF
TOTAL
ON 6-30-63
CURRENT LEVY
CURRENT LEVY
$1,800,707 1,751,041 1,756,940 1,781,979 1,848,868 2,220,646 2,143,999 2,313,809 2,704,134
$ 57,623
66.53
109.44
80,095 79,808 196,639
72.68
96.94
72.36
93.79
71.21
89.44
119,751
61.08
88.90
120,337 139,695 192,112 303,863 521,942
70.17
105.17
76.62
106.12
82.49
100.57
81.14
90.04
81.52
94.64
2,672,517
H Property tax collections are about 57% for Ponce and 43% for Commonwealth purposes.
Overlapping Debt Assessed Valuation, 1963 — 1964
Commonwealth
Net Direct Debt
$2,146,198,120
Commonwealth .
160,280,390
Ponce direct debt
Ponce
Per cent of total A. V.
7.47%
.
. . $228,086,687
Ponce share 7.47% .
. . $ 17,038,076 5,755,136
Net Overlapping Debt
. $ 22,793,212
Ratio of net overlapping debt to Assessed Valuation
14.22%
Per capita net overlapping debt
$156.56
Bond Requirements, Next Five Years 1964
Principal Interest
Total
1965
1966
1967
1968
$475,000
$473,000
$554,000
$580,000
$382,000
209,320
191,730
174,220
153,020
132,030
$684^320
$664,730
$728,220
$733,020
$514,030
$ 20,000
$ 20,000
$ 20,000
$ 25,000
New Issue (principal) $ 20,000
Breakdown of Property Tax Rate (Per hundred dollars) Municipal General Funds
.85
Loans
.50
Total Municipal Commonwealth
Total
$1.35 1.03
$2.38^
The effective tax rate levy of Ponce is $2.18, since $.20 is granted as a reduction and is not collected as authorized by Act No. 16, approved May 31. 1960. This Act directs the Secretary of the Treasury of Puerto Rico to compensate the municipality in an amount equivalent to the reduction granted.
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