A Special Report on San Juan (June 1964)

Page 1

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July 1964

A SPECIAL

REPORT ON

SAN J Capital off Puerto Rico

COMMONWEALTH OF PUERTO RICO

GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO SAN JUAN. PUERTO RICO


Aerial view of the Capital of Puerto Rico with island of Old San Juan in foreground. â–

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SAN JUAN-

Capital of Puerto Rico Dona Fclisa Rincon de Gamier,

Mayoress of San Jiian.

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San Juan, Capital of Puerto Rico, founded in 1521, is the oldest city within the United States. From its beginnings as an outpost of the Spanish Empire, San Juan has grown to become a city of approximately 450,000 and although it still retains much of its charming old world character, it is now a modern and progressive metropolis and a thriving center of commerce and industry.

Including the five adjacent municipalities of Bayamon, Cataho, Guaynabo, Carolina and Trujillo Alto, the Metropolitan Area has a population of almost 650,000. The harbor enclosed by the City is

excellent and the airport serving the City is one of the finest and busiest in the Western Hemisphere.

San Juan is "The gateway to the Caribbean." and is about 1,690 miles southeast of New York City

(3Vi hours flying time) and 1.000 miles southeast of Miami. It is Puerto Rico's largest city and is the center of the economic, educational, cultural and

governmental activities on the island.


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

On the other hand. Federal taxes do not apply in Puerto Rico except by mutual consent, such as social security taxes. No Federal income tax is collected

a population of approximately 2,534,000. The topog raphy is characterized by a fertile coastal plain rising to interior mountains which run mostly from east to

from Puerto Rican residents on income earned in Puerto Rico and Federal excise taxes collected on

west. San Juan, Capital of Puerto Rico, lies some 1,690 miles southeast of New York, 3V^ hours by

tobacco, are returned to the Commonwealth Treas ury. This relationship with the Federal Government is defined through the medium of the compact en

jet plane, and 1,000 miles southeast of Miami, 214 hours by jet plane. Under its compact with the United States, the

exported Puerto Rican products, such as rum and

tered into by Congress and the People of Puerto Rico, and is further described hereafter.

Commonwealth of Puerto Rico exercises virtually the same control over its internal affairs, and

with the same general procedure as do the fifty fed

Government History

erated States over theirs. It differs from the States

primarily in its relationship to the Federal Govern

Puerto Rico came under United States sovereignty

ment. In brief, residents of Puerto Rico do not vote in the national elections and are represented in Con

by the Treaty of Paris on December 10, 1898. The Congress of the United States provided for a civil government for the island in 1900. It provided for a Governor, a Cabinet, a Senate and a Supreme Court

gress only by a Resident Commissioner who has a voice but no vote in the House of Representatives.


Harbor view of Old San Juan with Dos Hermanos Bridge and Yacht Club in center foreground.

United States; only a House of Delegates was elected

No further change occurred until 1946 when the President for the first time appointed a Puerto Rican

by the People of Puerto Rico.

as Governor. In 1947 the Jones Act was amended to

Judiciary, all appointed by the President of the

Over succeeding years strong feeling developed for a less colonial form of government and in favor of United States citizenship. The original Act was su

perseded in 1917 by the Organic Act or Jones Act, which granted United States citizenship to Puerto Ricans, as well as unrestricted suffrage for local pur

poses. It also provided that members of both Senate and House were to be elected by the people, but the

permit Puerto Ricans to elect their own Governor, who in turn was empowered to appoint his Cabinet and members of the Supreme Court. The next advance toward complete local govern ment occurred in 1950 when, in accordance with the

wishes of the People of Puerto Rico, the 81st Con gress enacted Public Law 600, approved July 3, 1950. This law, which is "in the nature of a com

Executive and Judicial branches remained under con

pact," became effective upon its acceptance by the

trol of Washington through appointment by the

electorate of Puerto Rico. It provides that those sec

President.

tions of the Organic Act which define the political,


Kr' ' Top left: A brightly lighted thoroughfare in the Santiirce section of San Juan. Lower left: Freighter at Ports Authority pier. Above: Pump )notors in modern sewage plant.

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 con stitution. The Constitution was drafted by a freely elected constitutional 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.

cameral legislature are subject to regular election every four years. The Legislature operates under standard parliamentary and legislative rules. The judicial system, administered by a Supreme Court appointed for life, is composed of lower and inter mediate 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 er ror 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 conditions as writs of error and

The Commonwealth Government

The Constitution recognizes and assures a separation

of powers among the executive, legislative, and judi cial branches as in the Federal Constitution, and in those of the States. Both the Governor and the bi

appeals may be taken from other Federal and State courts.

Governmental responsibilities assumed

by the

Commonwealth arc greater than those normally as

sumed by a State government. Municipalities which


combine both rural and urban areas are the only

had been gained, to consider improvement and re finement of the commonwealth concept. Once this

local political subdivisions and are comparable to counties in scope. The only units of government with the right to levy ad valorem taxes are the Common wealth Government and the municipalities. There is, therefore, no other overlapping taxation or bonded indebtedness payable from taxes. The Common wealth Government assumes responsibility for a num ber of important functions usually performed by lo

hold a plebiscite in which the people could express their preference for a perfected commonwealth status, or for the classical forms of government of statehood or independence. The Legislature of Puerto Rico, by almost unanimous vote, adopted a Resolution petitioning Congress to provide the basis for such

cal governments in the continental United States.

plebiscite.

Among these are police and fire protection, educa tion, all major street and highway construction, and public health programs. In addition, the Common wealth Government supervises municipal fiscal affairs to a very substantial extent.

In response to this, a Resolution (HR 5945) was introduced on April 30, 1963 in the United States House of Representatives, and was passed by the House on October 23, 1963 and by the Senate on February 18, 1964. The Resolution provides for the

Commonwealth and municipal governments are relieved of most of the responsibility 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 ad

establishment of a "United States-Puerto Rico Com

ministered by the Ports Authority. The bonded debt of these public corporations is supported entirely by revenues derived from their operations.

Prospective Plebiscite Since 1952, when Congress authorized and Puerto Rico accepted the present commonwealth form of

government, it has been recognized that this concept of political status, being a new legal entity within the framework of the government of the United States, could in due course be subject to improvement. No

was to be defined, measures could then be taken to

mission on the Status of Puerto Rico" which is to

study all factors which may have a bearing on the present and future relationship between the United States and Puerto Rico. The membership of the Com mission consists of three persons appointed by the President of the United States, plus two each selected by the Senate and the House of Representatives, and six appointed by the Governor of Puerto Rico. The

Commission is to render its report to the President and the Congress of the United States and to the Governor and the Legislative Assembly of Puerto Rico not later than January 1966. It is expected that this study will result in the basis of a clarification and perfection of common wealth status in such a manner that a subsequent plebiscite can express the basic preference and choice of the voters of Puerto Rico as to their future politi

significant changes were proposed until 1961 when, through direct vote by Puerto Ricans, and with ap proval by Congress, the U. S. Congress provided for

cal status.

removal of control of the Commonwealth debt limit from the Federal Relations Act at such time as it was

Incurrence and Payment of Municipal Debt

incorporated by referendum in the Puerto Rican Con

Puerto Rico is divided into seventy-six contiguous

stitution, and authorized appeal of decision of the

municipalities, each of which consists of urban and

Supreme Court of Puerto Rico directly to the U. S. Supreme Court, instead of through the U. S. First Circuit Court of Appeals. On July 25, 1962, the 10th Anniversary of the Commonwealth, the Governor of Puerto Rico stated

rural areas. Municipalities may incur bonded debt only after receiving approval of the Governor of the Commonwealth. This is obtained only after recom mendation of the Department of Justice, the Plan ning Board and the Department of the Treasury, and

sufficient time had elapsed, and enough experience

the bonds must be sold through the Government De-


velopment Bank as fiscal agent. The borrowing ca pacity of the municipalities is limited by law to 5% of their respective assessed valuations, except in the

nicipality and deposited in redemption funds. Sums sufficient to meet payments on municipal debt as it becomes due are withdrawn and paid by the Secre

cases of San Juan, Ponce, Mayaguez, Arecibo, Baya-

tary of the Treasury of the Commonwealth from the

mon and Caguas, where the limit is 10%. There is

appropriate municipal bond redemption fund.

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 Com monwealth as of January 1,1964 was $2,238,836,990 and the net indebtedness of all the municipalities

Expansion and Diversification of the Economy of Puerto Rico Economic growth in Puerto Rico since 1940 has been

(gross debt less sinking fund resources) was

very rapid. Gross Product of the Commonwealth has

$81,260,390 or 3.63% of the assessed valuation.

increased more than IV2 times over its 1940 level

The Municipal Law provides that interest on the public debt and amortization thereof constitute a first

budgetary charge on any and all available municipal revenues. Property is assessed by the Secretary of the Treasury throughout Puerto Rico, and he collects di rectly all municipal and other taxes upon real and per sonal property. From these collections, the amount

and has more than doubled during the past 10 years.

In the year ended June 30, 1963, gross product to taled an estimated $2,233 million, representing an

increase over the prior year of more than 13%. Net income of the economy has increased from a level of $225 million in 1940 to $1,811 million in 1963. Income, measured in terms of 1954 prices, has

allocated for the payment of principal and interest

shown an average increase of about 5.9% com

on outstanding obligations is retained for each mu

pounded annually and in the year ended June 30,

Scene at Puerto Rico International Airport,

Close-up view of the Yacht Club.

fifteen minutes from downtown San Juan.


1963 it increased by 9.5%. Per capita net income is now $736 compared to $121 in 1940.

The Commonwealth Government's program of in dustrialization has aided the economy to shift from one principally agricultural to one much better di versified between industry and agriculture. Concur rently with the expansion in net agricultural income from $70 million in 1939-40 to $220 million in

1962-63, manufacturing income increased from $27 million to $432 million, substantially surpassing agri culture as a source of income.

Puerto Rican manufacturing has been increasingly

Rico's food requirements. Four large tuna canneries are now in operation, and with one additional plant recently promoted, the island has become one of the leading suppliers of canned fish in the United States market. The forthcoming establishment of a soya bean processing plant will produce feed for the grow ing cattle and dairy industry, and oil for the domestic market and for the tuna canneries. A subsidiary of Libby, McNeill, and Libby has recently set up a plant for the canning of tomato paste and juice. Further, many of the plants are branches or sub

rived from the production of new types of goods, principally for shipment to the United States. Such shipments amounted to only $23 million in 1948-49. By 1962-63 they had reached a total of about $531

sidiaries set up by such firms as General Electric, Consolidated Cigar Corporation, Sunbeam Corpora tion, American Can Company, Phelps Dodge Corpo ration, Sperry Rand Corporation, Daystrom, Inc., Carborundum Corp., Sprague Electric, Van Camp Sea Food, Van Raalte, B.V.D. Corp., and W. R. Grace Company. One significant addition to Puerto Rico's blue chip roster will be Ford Motor Co.'s $15 million ball bearing plant now under construction which will be the most modern facility of its kind in

million.

the world.

These new products cover a wide range such as apparel, petroleum derivatives, and electronic prod

Helping to bring about the extraordinary changes in Puerto Rico's economy has been the Common

ucts. Large, heavily capitalized manufacturing opera tions have shown a significant increase in recent years as compared to those labor-intensive operations promoted during the early part of the industrializa tion program. These include the Union Carbide & Chemical Corp., which operates a $28 million glycol plant and is constructing a $22 million plant to pro

wealth Government's comprehensive development program, especially those phases directed at encour aging manufacturers in the continental United States to expand and locate their new plants in Puerto Rico. As a result of this program, the annual inflow of capital from the continental United States for fixed investment in the Commonwealth has risen from $30

duce alcohol intermediates. Petroleum refineries are

million in 1947 to $212 million in 1963. Annual fixed

operated by Caribbean Refining Co., which recently completed an expansion program, and the Common wealth Oil Refining Co., which is currently expand ing its operation. An addition to Puerto Rico's petro chemical complex will be Puerto Rico Chemical Co., which announced plans to establish a $6 million an hydrous benzene bicarboxylic plant. In calendar 1963, a record 302 new factories began operation on the island, bringing the total of U. S. affiliated plants

investment from all sources has risen from $62 mil

diversified during the last two decades. In 1939-40

the manufacture of sugar products accounted for 35% of manufacturing income. By 1962-63, about 6.8% of manufacturing income resulted from this industry. Manufacturing income is now generally de

in Puerto Rico to 950.

Food processing has also been a significant growth area in recent years. Two rice mills and a large flour and feed mill supply an important share of Puerto

lion to $487 million during the same period and has equalled 21 per cent or more of gross product for the last four consecutive fiscal years 1960 through 1963.

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 18.2 per thousand to 6.8 per thousand. Personal income for the average family has risen from $611 to $3,488. Public and private day school enrollment has in creased from 297,000 to 659,000. University and

college enrollment has grown from 5,000 to 30,900.


SAN JUAN

As the principal city of the Commonwealth, San Juan has shared fully in the expansion of the Puerto Rican economy. San Juan has over 25% and the metro politan area has over 38% of all the manufacturing

includes its Law School.

establishments on the island. Of the more than 917

of available hotel rooms in the San Juan Metropoli tan Area totals 3,838 and three hotels now under con struction will add 300 additional rooms. Expenditures made on the island last year by about 465,000 tour ists are estimated to total about $80 million. Tourist expenditures have shown sizeable gains in every year

new plants established in Puerto Rico with the help of the Economic Development Administration, 245 are in San Juan proper and 461 are in the metro politan area.

The Commonwealth governmental headquarters

The thriving Puerto Rican tourist industry is cen tered in San Juan and the investment in tourist facili

ties continues to expand significantly. The number

are in San Juan as are the main offices of all the

since 1950.

autonomous public corporations. The city is the cen ter for all the Federal Government offices, and large

The Puerto Rico International Airport, located at Carolina, immediately adjacent to San Juan, cleared

installations of the U. S. Armed Forces are main tained in and around San Juan.

2,020,282 passengers and moved almost 39.5 thou sand tons of cargo during fiscal 1963.

San Juan is an important educational center. In addition to being the site of the principal campus of the University of Puerto Rico with 22,959 students,

The port facilities of San Juan are the most im portant on the island and in 1961 about 39% of the

the Interamerican University has an enrollment of over 1,900 students at its San Juan campus which

Puerto Rico's ports wents through San Juan. Over

8

14,526,320 short tons of cargo moving through 2,740 ships used the port facilities during the year.


Because of the continuing growth of commerce,

both airport and seaport facilities are undergoing a $40 million expansion program.

Present Bond Issue

On November 28, 1962, San Juan adopted a bond

ordinance authorizing the issuance of $34,900,000 in public improvement bonds to cover a five-year capi tal improvement program. Following the present sale of $15,000,000 Series A bonds, the remainder, $19,900,000, will be sold in lots of about $10,000,000 at approximately one year intervals.

Financial Administration

After allowing for the sale of these bonds, gross debt of San Juan will be $54,018,000 and net debt, after

deducting bond redemption funds, will be $51,370,Above: Aerial view of BaUlorioty de Castro Avenue. In ri},'ht foreftround area, new Government buildings are planned. Below: Interior view of Hotel El Convento in Old San Juan.

344. This includes $2,000,000 in bond anticipation notes, issued in connection with future borrowing plans described below. Growth in assessed valuation, which amounted to

$1,026,465,170 on January 1, 1964, has kept pace with net indebtedness, as shown on the following

pages. The present ratio of net debt of $49,970,344 to assessed valuation is 4.9%, and after the sale of this issue will be $51,370,344 or 5%. Per capita net debt of $111.05 is moderate.

The only overlapping tax supported indebtedness is that of the Commonwealth, of which the San Juan

share is 45.85%. Net overlapping debt, including this issue will be $173,079,329, or 16.9% of assessed valuation.

Bond maturities over the next five years average

about 7.4% each year of net debt outstanding. Many of the functions usually associated with mu nicipal administration in the States are handled by the Commonwealth of Puerto Rico itself. Conse

quently. the actual expenditures of the Capital of Puerto Rico are relatively modest. San Juan is em powered to levy an annual tax of 2 per cent of its

taxable property for operating expenses. Under the


Municipal Borrowing Law, unlimited ad valorem taxes may be levied for payment of all bonds issued.

ipality. For the present fiscal year this payment is estimated to be approximately $1.45 million.

The actual tax rate of $2.36 per $100, of which $1.03

is levied for general Commonwealth purposes, and $.41 for San Juan bond purposes, is exceptionally low in comparison with cities of similar size. All property tax collections and all debt service

Tax Penalties and Reductions

In June, 1958, the Legislature enacted Public Law

funds are administered directly by the Secretary of

No. 67 which provided for an increase thereafter

the Treasury of Puerto Rico, who retains in his cus tody from these collections the amounts appro priated for the payment of principal and interest on outstanding obligations. The City relies for its rev enues mainly on the property tax. It also derives

from 6% to 9% per annum in the interest rate

revenues from municipal licenses and fees, and a per

centage of the cigarette tax and automobile license fees levied by the Commonwealth Government are

charged on delinquent taxes. Whereas no penalties

were previously charged on delinquent taxes, other than interest, the Act provides that thereafter a pen alty 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 an additional incentive for the

prompt payment of property taxes, the Legislature

returned to the City. The Puerto Rico Water Re sources Authority pays to the City, in lieu of taxes,

approved in 1959 Act No. 80, of June 25, 1959

6 per cent of its gross revenues collected in the munic

granting a 10% discount if the taxes for the entire

Right: The Professional Building, one of San Juan's sky scrapers. Below: Guest House in the Condado section.

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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

pality mentioned above should be discontinued and the available income of the municipality is not suffi cient to pay principal and interest on its bonded in debtedness.

It should be emphasized that Act No. 24 does not modify or lessen the pledge of the full faith, credit,

basic policies. One form of stimulation of home own

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 valu ation of owner-occupied homes, if tax forgiveness shall be suspended in the circumstances mentioned above, in an amount sufficient, with any other avail able funds, for the payment of the debt service on its

ership used has been the reduction of property taxes

outstanding bonds.

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

in recent years on low and moderate cost houses

where the owner is the occupant of the residence. Recognizing, however, the importance of the prop erty tax in the fiscal requirements of the municipali ties, the Commonwealth makes annual appropriations from the General Fund of the Treasury to the munici palities as compensation in the amount of revenues lost from the reduction or non-collection of such property taxes.

Act No. 24 of June 8, 1962, grants complete prop

Additional Bond Authorizations

In 1959, an issue of $10,000,000 general obligation bonds was authorized to finance the construction of

single and multiple-unit housing facilities for lowincome persons. The units will be rented or sold to the tenants and the proceeds applied toward debt

erty tax forgiveness on the first $15,000 of assessed

service. One project has been constructed at a cost of about $620,000 and another project is under con

valuation on all residences occupied by their owners, starting in the 1962-63 fiscal year. Such properties

completed within six months.

struction, costing about $4,800,000, which will be

will remain on the tax rolls, and to receive the benefit

Bond anticipation notes in the amount of $2,000,-

of the tax forgiveness, the taxpayer must file a cer tificate with the Secretary of the Treasury to the effect that he is the owner and occupant of the residence

000 to finance these projects have been issued. A $4,000,000 bond issue sold in July 1963 against the $10,000,000 authorization will mature on July 1, 1968 but will be retired after July 1, 1965 with the

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 munici

proceeds of the sale of the apartment facilities of this latter project.

palities thereby would receive the full amount levied,

the only difference being the Commonwealth Treas ury 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 munici

The debt paying record of San Juan is clear of de fault or delinquency. There has never been any forced or "managed" refunding of maturing bonds to 11


Above: Modern library on campus of the University of Puerto Rico. Top right: Central market construction at Puerto Nuevo. Lower right: Restored buildings in Old San Juan.

avoid default. A similar debt record exists for the

central government and all municipalities and instru mentalities of Puerto Rico.

Under the provisions of the Acts of Congress and Constitution and Laws of Puerto Rico 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.

The bonds are legal investments for savings banks and trust funds in the State of New York. 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.

Savings banks and incorporated insurers in the State of California are legally empowered to invest in bonds and other evidences of indebtedness of the

Municipalities of Puerto Rico.


Outstanding Public Net Debt of San Juan Versus Legal Debt Limit Fiscal Years 1954-55 to 1963-64

millions

of dollars

LEGEND:

LEGAL DEBT LIMIT

10% of Assessed Volootion

Real ond Personal Property PUBLIC NET DEBT

54-55

I

55-56

56-57

57-58

58-59

59-60

60-61

61-62

See inside cover for financial tables on Assessed Valuations, Property Tax Collec tions, Operating Receipts and Expenditures, and Trend of Bonded Indebtedness.

62-63

63-64


SAN JUAN-Capital of Puerto Rico Property Tax Collections FISCAL

ASSESSED

TAX RATE

TOTAL

YEAR

VALUATION

PER $1,000

LEVY

CURRENT YEAR

$21.00

$ 7,479,891 9,175,927 10,292,682 11,094,552 11,838,941 13,808,526 13,121,030*1 13,717,972*1 17,788,51511

$ 4,925,340 6,317,998 6,941,097 6,923,244 7,053,283

1953-54 1954-55 1955-56 1956-57 1957-58 1958-59* 1959-60 1960-61

. . . . . . . .

. . $358,617,020 . . 391,729,690 . . . .

418,830,660 451,645,450

. .

521,067,120

. . . 1961-62 . . 1962-63 . . 1963-64# . . 1964-65 . .

23.00 25.10 25.10 25.10 21.30 21.30 21.30 21.30

. 709,269,090 . 753,734,000 . 807,716,360 . 851,606,970 . 904,582,710 . 1,002,243,820 . 1,026,465,170

* Increases in Assessed basis of assessment.

8,623,438 7,543,238 9,882,967 13,464,706 19,039,893 18,376,283

23,031,227*1 24,075,318*^ 24,200,000t

23.60

23.60 23.60

-

Valuation resulted partly from annual growth in tax base and partly from a change in

'S'As of May 31, 1964. t Official estimate.

The gross figure of taxes levied was reduced by discounts for prompt payment as follows:

1959-60 1960-61 1961-62 1962-63 1963-64

GROSS LEVY

DISCOUNT

NET LEVY

$13,841,870 14,578,920 18,849,555

$ 720,840 860,948 1,061,040

$13,121,030 13,717,972

24,213,916

1,182,689 1,217,516

23,031,227

25,292,834

17,788,515 24,075,318

Cash Receipts FISCAL

CASH BALANCE

LOAN

PROPERTY TAX

OTHER

TOTAL

YEAR

BEGINNING OF YEAR

PROCEEDS

RECEIPTS

RECEIPTS

RECEIPTS

$5,973,789 6,604,145

; 3,350,000

$3,521,161 6,627,655

; 8,456,212

5,440,694 8,809,338 4,952,432 7,181,432

7,005,213 2,200,000 8,100,000 13,776,557

;15,327,373 13,676,348 22,135,162 20,251,957 27,966,608 35,364,014

. .

1956-57 1957-58 1958-59 1959-60 1960-61 1961-62 1962-63

.

517

7,101,498 9,733,713 9,378,306 9,527,016 12,282,440

7,048,176 8,028,451 8,318,244 10,488,302 12,060,441 14,719,618

39,702,062

iditures FISCAL

CAPITAL

DEBT

OTHER

TOTAL

CASH BALANCE

year

EXPENDITURES

SERVICE

EXPENDITURES

EXPENDITURES

AT YEAR END

$14,697,017 14,839,799

1956-57 . . . 1957-58 . . . 1958-59 . . . 1959-60 . . . 1960-61 . . . 1961-62 . . .

. . . . . .

1962-63

.

.

. .

$2,787,174

$1,457,452

$10,452,391

1,138,478

1,525,645

3,544,183

1,398,988

6,469,930 6,587,893 12,325,827 12,462,193

1,809,385 1,885,277 2,343,775

12.175,676 13,823,347 15,829,548

2,405,963

17,264,438

19,543,892 23,182,1 10

Of Bonded Indebtedness

18,766,518 24,108,863 25,737,608 34,213,494 38,050,266

$6,604,145 5,440,694 8,809,338 4.952,432 7.181.432

8,331,952 9,983,748

GROSS BONDED DEBT PER CENT OF

AS OF

â– ILLY 1

GROSS BONDED

REDEMPTION FUNDS

NET DEBT AS

ASSESSED

debt

AS OF .lULY i

OF .lULY 1

VALUATION

PER CAPITA

$ 2.272.552

2.1

$ 9.30

2.2 2.4

25.08

1950 1955 1956 1957

$ 3,443.000 9,253,000

$1,170,448

2,466,172

6.786.828

10,766,000

2.528.849

8,237,151

12,915,000

1958 1959

1 1,884.000 16,170,000

2,461 ,239 2.519,840 2.606.662

10,453,761 9,364, 160

1960 1961

17,1 18,000 '>4 750,000

2,847,750 2,550,794

1962 1963 1964

33.878,000 43,466.000

2,293,022

2,'784,'77r

52,618,000*

2,647.656

13,563.338 14,270.250

22,199,206 31.584.978 40.681,229 49,970.344

2.5 1.7 2. 1 2.1 2.9 3.7 4.8 5.3

29. 18 35.00 28.57 35.99 38.10 55.08 75.01 96.59 1 16.93

Includes $15,600,000 in bond anticipation notes of which $13,600,000 will be retired out of the proceeds of this bond issue.


COLLECTIONStt

TOTAL UNCOLLECTED OF

PREVIOUS

CURRENT COLLECTIONS

RESPECTIVE LEVIES

ON 6-30-63

YEARS

TOTAL

$5,745,105 2,357,789 2,562,155 2,589,838 3,696,309 4,680,289 4,541,780 3,270,630 2,664,542 3,455,713 2,561,861

$10,670,445 8,675,787 9,503,252 9,513,082 10,749,592 13,303,727 12,085,018 13,153,597 16,129,248 22,495,606 20,938,144

COLLECTIONS

PER CENT OF

PER CENT OF

CURRENT LEVY

CURRENT LEVY

65^i

$ 440,030 464,742

142.7 94.5 92.3 85.7 90.8 96.3 92.1 95.9 90.7 97.7

68.9 67.4 62.4 59.6 62.5

618,600 845,968 1,031,039 1,125,966 1,288,837 1,712,244 2,173,077 3,991,334

57.5 72.0 75.7 82.7

Property tax collectioris through 1959-60 were about 60% for San Juan and 40% for Commonwealth purposes; since that time, the division has been about equal between the two purposes.

Overlapping Debt - Ju/y i, i964 Assessed Valuation, Jan. 1, 1964

Net Direct Debt

Commonwealth . . . . $2,238,836,990

Commonwealth .

$265,450,348

San Juan

San Juan share 45.85%

$121,708,985

1,026,465,170

Per cent of total A. V. . .

45.85%

San Juan direct debt

49,970,344

Net Overlapping Debt .

$171,679,329

Ratio of net overlapping debt to Assessed Valuation

16.73%

Per capita net overlapping debt

$381

Bond Requirements, Next Five Years

Principal Interest Total

1965

1966

1967

$1,868,000 1,240,098

$1,975,000 1,170,459

$1,845,000 1,104,342

$5,755,000^=' 1,042,100*'

$1,675,000

$3,108,098

$3,145,459

$2,949,342

$6,797,100

$2,550,312

$400,000

$400,000

$400,000

$400,000

1968

1969

875,312

New Issue (principal) Series A . . .

$400,000

Breakdown of Property Tax Rate (Per hundred dollars) Municipal

General Funds*

Loans

Total Municipal Commonwealth

Total

SAN .JUAN

RIO PI FDR AS

$ .92

$ .92

41

.37

1.33

1.29

1.03

1.03

$2.32

The tax rate levy of San Juan for general purposes is $1.12. but $.20 is granted as a

reduction and is not collected as authorized by Act No. 16. approved May 31. 1960. and the rate for Commonwealth purposes was raised from $.83 to $1.03. Act No.

23. of June 6, 1961 directs the Secretary of the Treasury of Puerto Rico to compen sate the municipality in an amount equivalent to the reductions granted in various amounts on assessed valuations of owner-occupied homes. Includes $4,000,000 of principal and $104,000 of interest on bonds which will be

paid out of the proceeds of the sale of housing facilities under construction at the present time.


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