A Special Report on Aguadilla-Bayamón-Carolina-Guaynabo-Mayagüez-Ponce (November 1963)

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.

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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.

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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.

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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.

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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.

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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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