A Special Report on San Juan (July 1965)

JULY 1965 A SPECIAL REPORT ON

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SAN JUAN—Capital of Puerto Riq COMMONWEALTH OF PUERTO RtCO

GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO SAN JUAN, PUERTO RtCO

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The Municipal Building stands in

fills

Bonds of the Commonwealth of Puerto Rico, its

municipalities, agencies and authorities are exempt, as are other municipal bonds, from Federal income taxes. In addition, however, by Act of the Congress of the United States, all bonds issued by Puerto Rican public bodies are further exempt from taxes levied by any state or subdivision thereof. This exemption is expressed in Public Law 600, 81st Congress, as follows:

"*** all bonds issued by the Government of Puerto Rico, or by its authority, shall be exempt from taxation by the Government of the United States, or

by the Government of Puerto Rico or of any political or municipal subdivision thereof, or by any State, Territory, or possession or by any county, munici

pality, or other municipal subdivision of any State, Territory, or possession of the United Slates, or by the District of Columbia."

the heart of Old San Juan.

r SAN JUAN-

Capifal off Puerto Rico

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 477,000 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

Doila Felisa Rincon de Gamier. Mayoress of San Juan

Bayamon, Catano, Guaynabo, Carolina and Trujillo

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

Alto, the metropolitan area has a population of almost 797,000. The harbor enclosed by the city is

(314 hours flying time) and 1.000 miles southeast of Miami. It is Puerto Rico's largest city and is the

excellent and the airport serving the city is one of the

center of the economic, educational, cultural and

finest and busiest in the Western Hemisphere.

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

a population of approximately 2,572,000. The topog raphy is characterized by a fertile coastal plain rising to interior mountains which run mostly from east to west.

Under its compact with the United States, the Commonwealth of Puerto Rico exercises virtually the same control over its internal affairs, and

with the same general procedure as do the fifty fed erated States over theirs. It differs from the States

primarily in its relationship to the Federal Govern ment. In brief, residents of Puerto Rico do not vote

in the national elections and are represented in Con gress only by a Resident Commissioner who has a voice but no vote in the House of Representatives.

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

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Aerial view of Santiirce Residential section (Mirainar) with part of Old San Juan in the hackf>ruiind.

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

perseded in 1917 by the Organic Act or Jones Act,

exported Puerto Rican products, such as rum and

which granted United States citizenship to Puerto Ricans. as well as unrestricted suffrage for local pur

tobacco, are returned to the Commonwealth Treas

poses. It also provided that members of both Senate

ury. This relationship with the Federal Government

and House were to be elected by the people, but the

is defined through the medium of the compact en tered into by Congress and the People of Puerto Rico,

Executive and Judicial branches remained under con

and is further described hereafter.

President.

trol of Washington through appointment by the No further change occurred until 1946 when the President for the first time appointed a Puerto Rican

Government History

as Governor. In 1947 the Jones Act was amended to

permit Puerto Ricans to elect their own Governor,

Puerto Rico came under United States sovereignty

who in turn was empowered to appoint his Cabinet

by the Treaty of Paris on December 10, 1898. The

and members of the Supreme Court.

The next advance toward complete local govern

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

Judiciary, all appointed by the President of the

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,

United States; only a House of Delegates was elected

1950. This law. which is "in the nature of a com

by the People of Puerto Rico.

pact." became effective upon its acceptance by the

Over succeeding years strong feeling developed for a less colonial form of government and in favor of

tions of the Organic Act which define the political,

United States citizenship. The original Act was su

economic and fiscal relationship between Puerto

electorate of Puerto Rico. It provides that those sec

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

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

of Puerto Rico to draft and approve their own con

Supreme Court of the United States and writs of er

stitution. The Constitution was drafted by a freely elected constitutional convention, overwhelmingly

ror and appeals from judgments of the Supreme Court of Puerto Rico may be taken to the Supreme Court

approved in a special referendum, and approved by

of the United States, in the same manner and under

Congress and the President. It became effective upon proclamation of the Governor of Puerto Rico on July 25, 1952.

the same terms and conditions 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 as

sumed by a State government. Municipalities which 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

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

combine both rural and urban areas are the only 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 local governments in the continental United States.

Among these are police and fire protection, educa-

Piierio Rico International Airport.

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Dormitory buildings, University of Puerto Rico.

Interior view of Miguel Such Vocational High School.

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.

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 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 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

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

sufficient time had elapsed, and enough experience had been gained, to consider improvement and re finement of the commonwealth concept. Once this was to be defined, measures could then be taken to

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 plebiscite.

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 establishment of a "United States-Puerto Rico Com mission on the Status of Puerto Rico" which is to

study all factors which may have a bearing on the

removal of control of the Commonwealth debt limit

present and future relationship between the United

from the Federal Relations Act at such time as it was

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

incorporated by referendum in the Puerto Rican Con

stitution, and authorized appeal of decision of the

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Entrance to San Juan Harbor.

by the Senate and the House of Representatives, and six appointed by the Governor of Puerto Rico. The

5% of their respective assessed valuations, except in the cases of San Juan, Ponce, Mayaguez, Arecibo,

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 September 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

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

(gross debt less sinking fund resources) was $87,-

plebiscite can express the basic preference and choice

458,448 or 3.50% of the assessed valuation.

of the voters of Puerto Rico as to their future politi cal status.

Incurrence and Payment of Municipal Debt

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 Com monwealth as of January 1, 1965 was $2,499,238,540

and the net indebtedness of all the municipalities

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

Puerto Rico is divided into seventy-six contiguous

directly all municipal and other taxes upon real and

municipalities, each of which consists of urban and

personal property. From these collections, the amount

rural areas. Municipalities may incur bonded debt

allocated for the payment of principal and interest on

only after receiving approval of the Governor of the

outstanding obligations is retained for each munici

Commonwealth. This is obtained only after recom

pality and deposited in redemption funds. Sums suffi

mendation of the Department of the Treasury, and the bonds must be sold through the Government

cient to meet payments on municipal debt as it be comes due are withdrawn and paid by the Secretary of the Treasury of the Commonwealth from the appro priate municipal bond redemption fund.

Development Bank as fiscal agent. The borrowing capacity of the municipalities is limited by law to

Expansion and Diversification of the

with the expansion in net agricultural income from

Economy of Puerto Rico

$71 million in 1939-40 to $205 million in 1963-64,

Economic growth in Puerto Rico since 1940 has been very rapid. Gross Product of the Common wealth has increased almost nine times over its 1940

level and has almost tripled during the past 10 years.

manufacturing income increased from $27 million to $486 million, substantially surpassing agriculture as a source of income.

Puerto Rican manufacturing has been increasingly diversified during the last two decades. In 1939-40

In the year ended June 30, 1964, gross product

the manufacture of sugar products accounted for

totaled an estimated $2,532 million, representing an

1964. Income, measured in terms of 1954 prices, has shown an average increase of about 6.5% com pounded annually and in the year ended June 30,

35% of manufacturing income. By 1963-64, about 7.6% of manufacturing income resulted from this industry. Manufacturing income is now generally de 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 1963-64 they had reached a total of about $580

1964 it increased by 8.9%. Per capita net income is

million.

increase over the prior year of more than 10%.

Net income of the economy has increased from a level of $225 million in 1940 to $2,097 million in

now $830 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 diver sified between industry and agriculture. Concurrently

Nurses Dormitory, new Medical Center of Puerto Rico.

New Medical Building near Presbyterian Hospital.

These new products cover a wide range such as

apparel, petroleum derivatives, and electronic prod ucts. Large, heavily capitalized manufacturing opera tions have shown a significant increase in recent years as compared to those labor-intensive opera-

tions promoted during the early part of the indus trialization program. These include the Union Car bide & Chemical Corp., which operates a $28 million glycol plant and is constructing a $22 million plant to produce alcohol intermediates. Petroleum refiner

ies are operated by Caribbean Refining Co., which recently completed an expansion program, and the Commonwealth Oil Refining Co., which is currently

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 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

expanding its operation. An addition to Puerto Rico's petrochemical complex will be Puerto Rico Chemical Co., which announced plans to establish a $6 million

bean processing plant will produce feed for the grow ing cattle and dairy industry, and oil for the domestic

anhydrous benzene bicarboxylic plant. The most im

Libby, McNeill, and Libby has established a plant for the canning of tomato paste and juice produced from

portant venture in the petrochemical complex field is the Phillips Petroleum Company that will establish a huge oil refinery in the Guayama Area, south coast of the island. It is expected to employ around 33,000 people and will eventually create 100,000 jobs on the

island. The Phillips Petroleum Company would rep resent a total investment of some $600 million. In

calendar 1964, some 175 new factories began opera tion on the island, bringing the total of U. S. affiliated plants in Puerto Rico to 1,100.

Buses which supply iransporiadon facilities throughout Sau Juan are operated hy the Metropolitan Bus Authority.

market and for the tuna canneries. A subsidiary of

local crops.

Further, many of the plants are branches or sub sidiaries set up by such firms as General Electric, Consolidated Cigar Corporation, General Cigar,

American Can Company, Phelps Dodge Corporation, Sperry Rand Corporation, Daystrom, Inc.. Carbo rundum 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, one of the most modern facilities of its kind in the world.

Helping to bring about the extraordinary changes in Puerto Rico's economy has been the Common 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 $31 million in 1947 to $309 million in 1964. Annual fixed investment from all sources has risen from $62

million to $581 million during the same period and

has equalled 22 per cent of gross product for the last five consecutive fiscal years 1960 through 1964.

The Puerto Rican people have benefited greatly from the economic expansion achieved since 1940.

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Life expectancy has increased from 46 years to 70 years and the death rate has declined from 18.4 per thousand to 7 per thousand. Personal income for the average family has risen from $611 to $3,827. Public

and private day school enrollment has increased from 286.000 to 670.000. University and college enroll ment has grown from 5.000 to 33.000.

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Middle Income Housing.

A Guest House in the Condado section.

SAN JUAN

As the principal city of the Commonwealth, San

the University of Puerto Rico with 24,809 students,

Juan has shared fully in the expansion of the Puerto

the Interamerican University has an enrollment of over 2,000 students at its San Juan campus which

Rican economy. San Juan itself has over 27% and the entire metropolitan area has over 48% of all the manufacturing establishments on the island. Of the

more than 1,100 new plants established in Puerto Rico with the help of the Economic Development

includes its Law School.

The thriving Puerto Rican tourist industry is centered in San Juan and the investment in tourist

facilities continues to expand significantly. The num

Administration, 307 are in San Juan proper and 539

ber of available hotel rooms in the San Juan metro

are in the metropolitan area.

politan area totals 3,860 and various hotels now

The Commonwealth governmental headquarters

under construction will add 726 additional rooms.

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

Expenditures made on the island last year by about

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

526,000 tourists are estimated to total about $96.4

installations of the U. S. Armed Forces are main

gains in every year since 1955.

The Puerto Rico International Airport, located at

tained in and around San Juan.

San Juan is an important educational center. In

addition to being the site of the principal campus of

million. Tourist expenditures have shown sizeable Carolina, immediately adjacent to San Juan, cleared 2.382,971 passengers and moved almost 42.3 thou-

The proceeds of the present bond issue will be applied to retire outstanding Bond Anticipation Notes issued evidencing advances made to the Municipality to carry out the following improvements:

1) Municipal contribution to the construction of sanitary sewer facilities in the Metropolitan Area.

2) Construction and reconstruction of municipal streets and roads.

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3) Construction of rain sewer facilities.

4) Construction of hospital facilities.

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Financial Administration

After allowing for the sale of these bonds, gross debt of San Juan will be $62,450,000 and net debt,

after deducting bond redemption funds, will be $59,921,062. This includes $3,000,000 in bond an ticipation notes, issued in connection with future borrowing plans described below.

Growth in assessed valuation, which amounted to

$1,161,161,310 on January 1, 1965, has kept pace Ashjord Park Condominium.

with net indebtedness as shown on the following

pages. The present ratio of net debt of $59,921,062 to assessed valuation is 5.2%. Per capita net debt of $125.62 is moderate.

sand tons of cargo during fiscal 1964.

The port facilities of San Juan are the most impor tant on the island and in 1963 about 36% of the

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

15,692,848 short tons of cargo moving through

share is 46.46%. Net overlapping debt, including this issue will be $199,867,150, or 17.2% of assessed

Puerto Rico's ports went through San Juan. Over 2,800 ships used the port facilities during the year.

valuation.

Because of the continuing growth of commerce,

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

Bond maturities over the next five years average

about 7.4% each year of net debt outstanding.

Many of the functions usually associated with municipal administration in the States are handled by the Commonwealth of Puerto Rico itself. Conse

ing the present sale of $9,700,000 Series B bonds,

quently, the actual expenditures of the Capital of Puerto Rico are relatively modest. San Juan is empowered 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.

The actual tax rate of $2.48 per $ 100, of which $ 1 .03 is levied for general Commonwealth purposes, and

the remaining $10,200,000 will be sold within ap proximately one year.

$.37 for San Juan bond purposes, is exceptionally low in comparison with cities of similar size.

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 fiive-year capital improvement program. An issue of $15,000,000 Series A bonds was sold on July 8, 1964. Follow

All property tax collections and all debt service

Recognizing, however, the importance of the prop

funds are administered directly by the Secretary of the Treasury of Puerto Rico, who retains in his custody from these collections the amounts appro priated for the payment of principal and interest on

erty tax in the fiscal requirements of the municipali

outstanding obligations. The City relies for its rev enues mainly on the property tax. It also derives revenues from municipal licenses and fees, and a per centage of the cigarette tax and automobile license

fees levied by the Commonwealth Government are returned to the City. The Puerto Rico Water Re sources Authority pays to the City, in lieu of taxes, 6 per cent of its gross revenues collected in the munic

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

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 erty tax forgiveness on the first $15,000 of assessed valuation on all residences occupied by their owners,

starting 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 cer tificate with the Secretary of the Treasury to the effect that he is the owner and occupant of the residence so affected.

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 pen

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 palities thereby would receive the full amount levied.

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 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 stimulation of home own

ership used has been the reduction of property taxes in recent years on low and moderate cost houses where the owner is the occupant of the residence.

Nif>ht BiisehaH. Hiram Bithorn Municipal Siadium.

the only difference being the Commonwealth Treas

property, including the first $15,000 of assessed valu

ury instead of the property taxpayer becomes the

ation of owner-occupied homes, if tax forgiveness shall be suspended in the circumstances mentioned

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

above, in an amount sufficient, with any other avail

able funds, for the payment of the debt service on its outstanding bonds.

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

Additional Bond Authorizations

debtedness.

In 1959, an issue of $10,000,000 general obligation

It should be emphasized that Act No. 24 does not

bonds was authorized to finance the construction of

modify or lessen the pledge of the full faith, credit,

single and multiple-unit housing facilities for low-

and taxing power of this municipality. The obligation remains unchanged to levy a special tax on all taxable

income persons. The units will be rented or sold to

the tenants and the proceeds applied toward debt

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The Institute

of Culture.

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Partial view of the ever-changing skyline of San Juan.

retirement. One project has been constructed at a cost of about $620,000 and another project is in the final stages of construction providing for 392 housing units

The debt paying record of San Juan is clear of default or delinquency. There has never been any

costing approximately $5,312,000 which will be

forced or "managed" refunding of maturing bonds to

ready for occupancy within two months.

Bond anticipation notes in the amount of $3,000,-

central government and all municipalities and instru

000 to finance these projects have been issued and

mentalities of Puerto Rico.

are outstanding. A $4,000,000 bond issue sold in July 1963 against the $10,000,000 authorization will

and trust funds in the State of New York. They are

avoid default. A similar debt record exists for the

The bonds are legal investments for savings banks

stantial portion of the issue will be retired after July 1, 1965 with the proceeds of the sale of 215 apart

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

ment facilities which will produce approximately

Puerto Rico.

mature on July 1, 1968 but it is expected that a sub

$2,388,000. The rental income of the remaining un

Savings banks and incorporated insurers in the

sold units available for rental purposes will be applied to the payment of principal and interest on outstand

in bonds and other evidences of indebtedness of the

ing bonds.

municipalities of Puerto Rico.

State of California are legally empowered to invest

Outstanding Public Net Debt of San Juan

Versus Legal Debt Limit Fiscal Years 1955-56 to 1964-65

millions of dollars

LEGEND;

■ LEGAL DEBT LIMIT 10®c ef Assessed Valuation —

Real ond Personol Property

^ PUBLIC NET DEBT

55-56

56-57

57-58

58-59

59-60

60-61

61 62

62 63

See inside cover for financed tables on Assessed Valuations, Propertv Tax Collec

tions, Operating Receipts and Expenditures, and Trend of Bonded Indebtedness.

63 64

64 65

SAN JUAN — Capital of Puerto Rico Property Tax Collections FISCAL

ASSESSED

TAX RATE

TOTAL

YEAR

VALUATION

PER $1,000

LEVY

1954-55 .

1955-56 .

1956-57 .

1957-58 .

1958-59==' .

1959-60 .

1960-61 .

1961-62 .

1962-63 .

1963-64 .

1964-65 .

1965-66 .

. . . . . . . . . . . . .

$ 391,729,690 418,830,660 451,645,450 521,067,120 709,269,090 753,734,000 807,716,360 851,606,970 904,582,710 1,002,243,820 1,026,465,170 1,161,161,310

CURRENT YEAR

$ 6,317,998 6,941,097 6,923,244 7,053,283 8,623,438 7,543,238 9,882,967

$ 9,175,927 10,292,682 11,094,552 11,838,941 13,808,526 13,121,030^ 13,717,97211 17,788,51511 23,031,22711 23,267,23711 24,268,488#11 26,000,000t

$23.00 25.10 25.10 25.10 21.30 21.30 21.30 21.30 23.60 23.60 23.60 24.80

13,464,706 19,039,893 18,431,954

19,513,800# —

* Increases in Assessed Valuation resulted partly from annual growth in tax base and partly from a change in basis of assessment.

HAS of May 31. 1965. t Official estimate.

*i 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.

1964-65.

GROSS LEVY

DISCOUNT

NET LEVY

$13,841,870

$ 720,840 860,948

$13,121,030

14,578,920 18,849,555 24,213,916 24,515,465 25,599.265

1,061,040 1,182,689 1,248,228 1,330,777

13,717,972 17,788,515 23,031,227 23,267,237 24,268,488

Cash Receipts FISCAL

CASH BALANCE

LOAN

PROPERTY TAX

OTHER

TOTAL

YEAR

BEGINNING OF YEAR

PROCEEDS

RECEIPTS

RECEIPTS

RECEIPTS

1957-58 1958-59 1959-60 1960-61 1961-62 1962-63 1963-64

. . . . . . .

. . . . . . .

$6,604,145 5,440,694 8,809,338 4,952,432 7,181,432 8,331,952 9,983,748

. . . . . . . . . . . . . .

$

517 7,005,213 2,200,000 8,100,000 13,776,557 12,700,004 11,956,721

$ 6,627,655 7,101,498 9,733,713 9,378,306 9,527,016 12,282,440 13,197,020

$ 7,048,176 8,028,451 8,318,244 10,488,302 12,060,441 14,719,618 20,307,184

$13,676,348 22,135,162 20,251,957 27,966,608 35,364,014 39,702,062 45,460,925

ditures FISCAL

CAPITAL

OTHER

TOTAL

CASH BALANCE

YEAR

EXPENDITURES

DEBT SERVICE

EXPENDITURES

EXPENDITURES

AT YEAR END

$ 1,138,478

$1,525,645 1,398,988 1,809,385 1,885,277 2,343,775 2,405,963 3,078,481

$12,175,676 13,823,347 15,829,548 17,264,438 19,543,892 23,182,1 10 28,244,863

$14,839,799 18,766,518

1957-58 1958-59 1959-60 1960-61 1961-62 1962-63 1963-64

. . . . . . .

. . . . .

. . . . .

.

.

3,544,183 6,469,930 6,587,893 12,325,827 12,462,193 15,859,310

24,108,863 25,737,608 34,213,494 38,050,266 47,182,654

$5,440,694 8,809,338 4,952,432 7,181,432 8,331,952 9,983,748 8,262,019

GROSS BONDED DEBT

of Bonded Indebtedness

PER CENT OF AS OF

GROSS BONDED

REDEMPTION FUNDS

NET DEBT

ASSESSED

JULY 1

DEBT

AS OF JULY 1

AS OF JULY 1

VALUATION

PER CAPITA

$ 9,253,000

$2,466,172 2,528,849 2,461,239 2,519,840 2,606,662 2,847,750

$ 6,786,828 8,237,151 10,453,761 9,364,160 13,563,338

2.2

$ 25.08

2*4

29.18 35.00 28.57 35.99 38.10 55.08 75.01 96.59 1 10.31 130.92

1955 1956 1957 1958 1959

. . . . .

1960 1961 1962 1963 1964 1965

. . . . . .

. . . .

.

.

. . . .

. . . . .

.

.

.

.

.

Includes $ 12.7()n.()()() bond issue

.

10.766,000 12,915,000 1 1,884,000 16,170,000 17,1 ]8,000 24,750,000 33,878,000 43,466,000 52.618.000 62.450,000==

2.550.794 2.293,022

14,270.2.50 22,199,206 31,584,978

2,784,77]

40,681,229

3,165.991

49,452,009

2,528,938

59.921.062

2.5 1 .7 2.1 2.1 2,9 3.7 4.8 5.3 5.4

in bond anticipation notes of which $9,700,000 will be retired out of the proceeds of this

Redemption funds as of May 31. 1965 less debt requirement of July 1. 1965.

COLLECTIONS TOTAL

UNCOLLECTED OF PREVIOUS

COLLECTIONS

RESPECTIVE LEVIES

PER CENT OF

PER CENT OF

TOTAL

ON 6-30-64

CURRENT LEVY

CURRENT LEVY

$ 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 20,978,690 22,382,726#

$ 452,996 600,719 809,660 907,844 996,199 1,075,413 1,381,205 1,734,406 2,534,708 4,835,051

68.9

YEARS

$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 2,546,736 2,868,926/K

CURRENT COLLECTIONS

67.4 62.4 59.6 62.5 57.5 72.0 75.7 82.7 79.2 80.4

—

94.5 92.3 85.7 90.8 96.3 92.1 95.9 90.7 97.7 90.2 92.2

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

Overlapping Debt - July i, 1965 Assessed Valuation, Jan. 1,1965 Commonwealth . . . .

Net Direct Debt

$2,499,238,540

Commonwealth

. .

$301,218,441

San Juan share 46.46% San Juan . .

.

.

$139,946,088

1,161,161,310

San Juan direct debt .

59,921,062

46.46%

Net Overlapping Debt

$199,867,150

Per cent of total A. V.

Ratio of net overlapping debt to Assessed Valuation

17.21%

Per capita net overlapping debt

$419

Bond Requirements, Next Five Years 1966

Principal Interest Total

1967

1968

1969

1970

$2,375,000 1,695,460

$2,245,000 1,609,342

$6,155,000* 1,527,100*

$2,075,000 1,340,313

$2,200,000 1,266,925

$4,070,460

$3,854,342

$7,682,100

$3,415,313

$3,466,925

$ 200,000

$ 200,000

$ 200,000

$ 200,000

New Issue (principal) Series B

. .

$ 200,000

* 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 in the final stages of con struction.

Breakdown of Property Tax

(Per hundred dollars)

Municipal

Cieneral Funds'"" l.oans

Total Municipal Commonwealth

Total

$1.08 .37

1.45 1.03

$2.48

■ * The tax rate levy for general purposes is $1.28. but $.20 is granted as a reduction and is not collected as authorized by Act No. 16. approved May 31. I960, 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 compensate the municipality in an amount equivalent to the reductions granted in various amounts on assessed valuations of owner-occupied homes.

ASTRA

ASPCRA