Special Report on San Juan (January 1963)

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COMMONWEALTH OF PUERTO RICO

GOVERNMENT DEVELOPMENT BANK FOR PUERTO RJCO 8AN JUAN. PUCNTO NICC

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(cover picture) Downtown San Juan.

Monacillos Transmission Centei

of the Puerto Rico Water Resources Authority with skyline of San Juan in background

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Dona Felisa Rincon de Gaiitier,

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Mayoress of San Juan.

Financial Section of San Juan.

SAN JUAN —Capital of 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 450.000 and although it still retains much of its charming old world character, it is now a modern and progressive metropolis and a thriving center of commerce and industry.

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

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

San Juan is "The gateway to the Caribbean," and is about 1,600 miles southeast of New York City (3'4 hours flying time) and 1.000 miles southeast

of Miami. It is Puerto Rico's largest city and is the center of the economic, edu cational, cultural and governmental activities on the island.

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PUERTO RICO Puerto Rico is a self governing Commonwealth of the United States having a population of 2,455,000, associated with the Federal Union by compact and mutual consent. The Commonwealth Constitution is in complete harmony with the Federal Constitution providing for a republican form of government with

executive, legislative and judicial branches. In its structure and power the government of the Commonwealth resembles those of the States. Puerto Rico, however, does not have voting representation in Congress and is not included

in the U. S. federal taxing area. Neither do its residents participate in U. S.

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Presidential elections. The Commonwealth, however, does have a voice in

Congress through a Resident Commissioner elected by the people for a 4 year term. He sits in the House of Representatives and has, with the exception of a vote, the other privileges of a Member of Congress.

Puerto Rico International Airport, situated a few minutes from downtown San Juan.

History

Puerto Rico came under United States sovereignty by the Treaty of Paris on December 10, 1898. The Congress of the United States provided for a civil government for the island in 1900. 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 8 1st Con gress 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 elec torate 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 constitutional convention, overwhelmingly approved in a special referendum, and approved by Congress and the President. It became

effective upon proclamation of the Governor of Puerto Rico on July 25, 1952.

The Commonwealth Government

The Constitution recognizes and assures a separation of powers among the executive, legislative, and judicial branches. Both the Governor and the bicam

eral legislature are subject to regular election every four years. The legislature operates under standard parliamentary and legislative rules. The judicial system

is similar to and linked with the U. S. courts, with ultimate appeal available to the Supreme Court of the United States. The currency and postal systems are the same as in the States.

Trailer van shipping at the Port of San Juan.

Insofar as local governmental functions arc concerned, there are 3 basic differences between municipal government in Puerto Rico and in the States: 1. There are no overlapping local units of government. The Commonwealth government and the seventy-six municipalities are the only units of gov ernment which exist and are the only public bodies in Puerto Rico which may levy ad valorem taxes. Consequently, there is no overlapping in tax ation, expenditures or authority.

2. The Commonwealth Government to a large extent supervises municipal fiscal afiairs and collects most of the taxes levied by the municipalities.

Revenues and expenditures are under strict control and municipal debt must be approved by the Commonwealth.

3. The Commonwealth Government assumes responsibility for a number of

important functions usually performed by local governments in the con

tinental U. S. Among these are police and fire protection, education, major street and highway construction, and public health programs.

Three instrumentalities, Water Resources Authority, Aqueduct and Sewer

Authority and Ports Authority have responsibility for construction, financing and administration of electric power, water and sewer, and harbor and airport service and facilities on the island. The bonded indebtedness of these public corporations is and will continue to be entirely supported by revenues derived from their operations.

Prospective Plebiscite

On July 25, 1962, the 10th anniversary of the establishment of the Common wealth of Puerto Rico, Governor Munoz Man'n announced that it was a proper time to review the political status of Puerto Rico, and that if it were the wish of the people, the Commonwealth concept ought to be perfected under its per manent association with the United States. Governor Mufioz further stated

that, in accordance with the basic principle of self determination, the people of Puerto Rico should, however, have an opportunity to express clearly and directly their preference for any form of political status in addition to the per fected commonwealth, including federated statehood and independence.

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TapUi Theater. San Jiian, with statue oj Coltnnbits in foreground.

The Governor called a special session of the Legislature to consider the above proposal. Different bills were introduced in the Legislature by the Ma jority Party (Popular Democratic), which favors the present Commonwealth status, and by the Minority Party (Republican Statehood) which favors state hood. Extensive public hearings were held in connection with these propos als. Finally, both parties agreed on an acceptable method of approach and introduced a joint resolution providing in essence as follows; 1. To propose to the Congress of the United States that a prompt decision be made in a democratic manner on a political status for Puerto Rico, apply ing the principles of either Commonwealth, Federated Statehood or Independ ence.

2. That once Congress has expressed itself as to what form of perfected

commonwealth status it is willing to agree to with Puerto Rico, then this per fected Commonwealth status, together with Statehood and Independence, be submitted to the consideration of the people of Puerto Rico through a plebi Entrance to Metropolitan Vocational School in San Juan.

scite, and that the status obtaining the majority of the votes should be estab lished in accordance with the wishes of the people of Puerto Rico.

The above joint resolution, approved on December 3, 1962, also outlined the perfected Commonwealth status as conceived by its sponsors in the fol lowing terms:

1. Recognition of the sovereignty of Puerto Rico so as to dispel any doubt as to the legal authority of Puerto Rico to agree on its future status.

2. Guaranty of the permanence and irrevocability of the union between the United States and Puerto Rico on the basis of common citizenship, common defense, common currency, free trade, common loyalty to democratic princi

ples and such other conditions agreed upon for the mutual benefit of the United States and Puerto Rico.

3. A specific definition of the powers of the United Slates with respect to Puerto Rico, which should include only those essential to the union.

4. All the other powers to be exercised by the constitutional institutions of Puerto Rico.

5. The participation of Puerto Rico in the exercise of the powers by the

United States under the agreement in connection with matters affecting Puerto Rico (this could include the right to vote for the President and Vice President of the United States); and 6. The establishment of a formula under which Puerto Rico would con

tribute to the general expense of the government of the United States in harmony with the economic stability and growth of Puerto Rico.

As of this date, no bill has yet been introduced in Congress on this subject.

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 City Hall Plaza

in the heart of Old San Juan.

obtained only after recommendation of the Department of Justice, the Plan ning Board and the Department of the Treasury, and the bonds must be sold through the Government Development Bank as fiscal agent. The Governor is

empowered to veto any municipal bond ordinance where legally available debt margin is not sufficient or where adequate revenues are not or cannot be com mitted to debt service. There is no limitation on the amount of taxes that may

be levied on property for the payment of public debt.

Act No. 142 (Municipal Law) approved July 21, 1960 provides in Section 61 that interest on the public debt and amortization thereof constitutes 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 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 de

posited 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.

The most recent reappraisal of assessed valuations was made in 1958, and present assessments are estimated to average between 85% and 90% of 1957 market values, and less than two-thirds of current values.

Expansion and Diversification of the Economy of Puerto Rico

Capitol Building, the Commonwealth of Puerto Rico,

The giant strides made in the expansion and diversification of the economy of Puerto Rico since 1940 are well known, and Puerto Rico is considered a prime example of the gains which can be made under a system of democratic capital ism. The island has been called a showcase of economic and social development

in San Juan.

and over 13,000 persons from 126 countries came to Puerto Rico in the 1950's

to study its development.

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 $1,650

million in fiscal 1961-1962. In the same period, gross product of the Common wealth increased from $287 million to $1,985 million. For the year ended June 30, 1962, net income and gross product increased by more than 10% and 121^%, respectively, 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 diver sified between industry and agriculture. Concurrently with an expansion in net agricultural income from $70 million in 1940 to $208 million in fiscal 1962,

manufacturing income increased from $27 million to $381.4 million, substan tially surpassing agriculture as a source of income. Manufacturing income is

generally derived from the manufacture of many diverse products, principally for shipment to the United States. These products are made in approximately 750 modern plants, many of which are subsidiaries or branches of such firms as General Electric Company, International Paper Company, Ltd., American Can Company, Consolidated Cigar Corporation, Sunbeam Corporation, the

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Carborundum Company, Sperry Rand Corporation, Union Carbide Corpora tion, American Motors Company,Parke, Davis Company, Inc., A. G. Spalding & Bros. Inc., Van Raalte, International Shoe Corporation, Beaunit Mills, Inc.,

11 One of the buildings in

Old San Juan representative of the restoration of historical structures in that area.

Borden Company, and California Packing Corporation.

Underlying Puerto Rico's growing and changing economy has been a steady expansion in investment. Gross fixed investment during the six consecu tive fiscal years 1957 to 1962 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 registered in that year.

One of the principal incentives which has helped to bring about rapid indus trial 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 Fed eral and state taxes. At the end of the tax exemption period corporate taxes are applied gradually, reaching the full tax burden 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 Public Housing in San Juan.

as a firm's income becomes taxable, depreciation accruals can be materially increased and taxable income reduced. Experience thus far indicates that ter

mination 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 expan sion 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 6.6 per thousand. Average family income has risen from $629 to $3,318. Public and private day school enrollment has increased from 286,000 to 631,000. Uni versity and college enrollment has grown from 5,000 to over 26.000.

Middle Income Housing.

SAN JUAN As the principal city of the Commonwealth. San Juan has shared fully in the expansion of the Puerto Rican economy. San Juan has over 25% and the metropolitan area has over 35% of ail the manufacturing establishments on

the island. Of the more than 750 new plants established in Puerto Rico with the help of the Economic Development Administration, 213 are in San Juan proper and 380 are in the metropolitan area.

The Commonwealth governmental headquarters are in San Juan as are

the main offices of all the autonomous public corporations. The city is the center for all the Federal Government offices and large installations of the U. S. Armed Forces are maintained in and around San Juan.

San Juan is an important educational center. In addition to being the site of the principal campus of the University of Puerto Rico with 18,000 students, the Metropolitan Vocational School is situated here. This educational facility can accommodate 15,000 students and offers instruction in 55 various trades.

It is one of the largest institutions of its kind in the world and has become a training center for the entire Caribbean area.

The thriving Puerto Rican tourist industry is centered in San Juan and the investment in tourist facilities continues to expand significantly. The number of available hotel rooms in the San Juan Metropolitan Area totals 2805 and three hotels now under construction will soon add an addition 981 rooms.

Expenditures made on the island last year by about 434,000 tourists are esti mated to total about $66 million. Tourist expenditures have shown sizeable gains in every year since 1950.

The Puerto Rico International Airport, located at Carolina, immediately adjacent to San Juan, cleared 1,736,015 passengers and moved almost 31 Administration Building, University of Puerto Rico.

thousand tons of cargo during fiscal 1962.

The port facilities of San Juan are the most important on the island and in 1961 about 38% of the 13,541,061 short tons of cargo moving through Puerto Rico's ports went through San Juan. Over 2,152 ships used the port facilities during the year.

Because of the continuing growth of commerce, both airport and seaport facilities are undergoing a $40 million expansion program.

Present Bond Issue

On July 1 1, 1958, San Juan adopted a bond ordinance authorizing the issuance

of $24,100,000 in public improvement bonds to cover a five-year capital improvement program. Three scries of $5,000,000 have been sold in 1959.

1960 and 1961. The issue now offered for sale represents the remaining $9,100,000 in bonds authorized to be issued.

Financial Administration

After allowing for the sale of these bonds, gross debt of San Juan will be $40,473,000 and net debt, after deducting bond redemption funds, will be $36,990,097. This includes $3,000,000 in bond anticipation notes, issued in connection with future borrowing plans described below.

Growth in assessed valuation, which amounted to $904,582,710 on January

1, 1962, has kept pace with net indebtedness, as shown on the following pages.

The present ratio of net debt of $32,890,097 to assessed valuation is 3.6%.

Architect's drawing of the Americana. one of Puerto Rico's

new luxury hotels.

and after the sale of this issue will be $36,990,097, or 4.1%. Per capita net debt of $72.82 is moderate.

The only overlapping tax supported indebtedness is that of the Common wealth, of which the San Juan share is 45.6%. Net overlapping debt, including this issue will be $128,127,884, or 14.2% of assessed valuation.

Bond maturities over the next five years average about 5.0% 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

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 tax able property for operating expenses. Under the Municipal Borrowing Law,

unlimited ad valorem taxes may be levied for payment of all bonds issued. fiTntpm

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The actual tax rate of $2.36 per $100, of which $1.03 is levied for general Commonwealth purposes, and $.41 for San Juan bond purposes, is excep tionally low in comparison with cities of similar size.

All property tax collections and all debt service funds are administered directly by the Secretary of the Treasury of Puerto Rico, who retains in his custody from these collections the amounts appropriated for the payment of principal and interest on outstanding obligations. The City relies for its revenues mainly on the property tax. It also derives revenues from municipal licenses and fees, and a percentage of the cigarette tax and automobile license

Hotel Pierre, one of the attractive new buildings in the Sanlurce section of San Juan.

fees levied by the Commonwealth Government are returned to the City. The Puerto Rico Water Resources Authority pays to the City, in lieu of taxes, 6

per cent of its gross revenues collected in the municipality. For the present fiscal year this payment is estimated to be approximately $1.1 million.

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 delin quent 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 arc 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 One of the modern guest houses available to tourists who

prefer informal vacationing to the large luxury beach hotels.

the Government in Puerto Rico in carrying out its basic policies. One form of stimulation 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 requirements of the municipalities, the Commonwealth makes annual appro priations from the General Fund of the Treasury to the municipalities as com pensation in the amount of the revenues lost from the reduction or non-col lection 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 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 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 tax payer 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 sus pended if in any fiscal year the appropriations to the municipalities or to the Commonwealth bond redemption fund mentioned above should be discon tinued and the available income of the municipality or of the Commonwealth, as the case may be, is not sufficient to pay principal and interest on the respec tive 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.

Additional Bond Authorizations

In 1959, an issue of $10,000,000 general obligation bonds was authorized to finance the construction of single and multiple-unit housing facilities for lowincome persons. The units will be rented or sold to the tenants and the pro ceeds applied toward debt service. One project has been constructed at a cost of about $620,000 and another project is under construction, costing about $4,800,000.

Bond anticipation notes in the amount of $3,000,000 to finance these proj ects have been issued. A bond issue in the amount of about one-half of the

authorization is expected to be sold later in 1963, part of the proceeds of which will be used to retire these notes.

The Institute of Culture in San Juan.

In November, 1962, San Juan adopted a bond ordinance authorizing the issuance of $34,900,000 in public improvement bonds to cover the capital im provement program for the next four years. Bonds under this authorization

will be sold in series of about $9,000,000 each at approximately one year intervals, beginning in 1964.

The debt paying record of San Juan is clear of default or delinquency. There has never been any forced or "managed" refunding of maturing bonds to avoid default. A similar debt record exists for the central government and all munici palities and instrumentalities of Puerto Rico.

Under the provisions of the Acts of Congress and Constitution and Laws of Puerto Rico now in force, the bonds and income therefrom are, in the opinion of Bond Counsel, exempt from Federal, State and Commonwealth of Puerto Rico taxation.

The bonds are legal investments for Savings Banks and Trust Funds in the State of New York. They are also eligible for deposit by banks in Puerto Rico to secure public funds, and by insurance companies to qualify them as re quired by law to do business in Puerto Rico.

Outstanding Public Net Debt of San Juan Versus Legal Debt Limit Fiscal Years 1953-54 to 1962-63 millions

of dollars

LEGEND:

â– LEGAL DEBT LIMIT

10% of Assessed Vahiulion Real and Personal Properly

PUBLIC NET DEBT

53-54

54-55

55-56

56-57

57-58

58-59

59-60

60-61

* As of November 30, 1962.

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See inside cover for financial tables on Assessed Valuations, Property Tax Collec

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

61-62

SAN JUAN —Capital of Puerto Rico Property Tax Collections FISCAL

ASSESSED

TAX RATE

TOTAL

YEAR

VALUATION

PER $1,000

LEVY

$140,925,060 163,146,880 222,396,140

$29.70

1948-49 1949-50 1950-51 1951-52* 1952-53* 1953-54 1954-55 1955-56 1956-57 1957-58

. . . . . . . . . .

. . . . . . . . . .

. . . . . . . . . .

. . . . . . . . . .

CURRENT YEAR

$ 2,992,626

$ 4,238,823 5,379,068 5,528,338

33.10 33.10 21.00 21.00 21.00 23.90 25.10 25.10 25.10 21.30 21.30 21.30 21.30 23.60

4,048,808 4,441,187

316,121** 6,937,280 298,476,900 644,802** 6,871,070 334,521,000 4,925,340 7,479,891 358,617,020 6,317,998 9,175,927 391,729,690 10,292,682 6,941,097 418,830,660 6,923,244 11,094,552 451,645,450 7,053,283 11,838,941 521,067,120 8,623,438 13,808,526 709,269,090 1958-59* . . . .

7,543,238 13,121,030^ 753,734,000 1959-60 . . . .

9,882,967 13,717,972fl 1960-61 . . . .

807,716,360 17,788,51511 13,464,706 1961-62 . . . .

851,606,970 6,178,036 1962-63# . . . . 904,582,710 19,000,000t * Increases in Assessed Valuation resulted partly from annual growth in tax base and partly from a change in basis of assessment.

# As of October 31, 1962. t Official estimate.

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

GROSS LEVY

1959-60 . . .

$13,841,870

1960-61 . .

1961-62 . . .

14,578,920 18,849,555

$ 720,840 860,948

NET LEVY

$13,121,030

1,061,040

13,717,972 17,788,515

Cash Receipts FISCAL

CASH BALANCE

LOAN

PROPERTY TAX

OTHER

TOTAL

YEAR

BEGINNING OF YEAR

PROCEEDS

RECEIPTS

RECEIPTS

RECEIPTS

$3,350,000

$3,521,161 6,627,655

$ 8,456,212

$15,327,373

517

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

7,101,498 9,733,713 9,378,306 9,527,016

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

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

1956-57 . . . . .

1957-58 . . . .

1960-61

. . . .

$5,973,789 6,604,145 5,440,694 8,809,338 4,952,432

1961-62

. . .

7,181,432

1958-59 . . . .

1959-60 . . . .

Expenditures FISCAL

CAPITAL

DEBT

OTHER

TOTAL

CASH BALANCE

YEAR

EXPENDITURES

SERVICE

EXPENDITURES

EXPENDITURES

AT YEAR END

$2,787,174

$1,457,452

$10,452,391

1,138,478 3,544,183 6,469,930 6,587,893 12,325,827

1,525,645 1,398,988 1,809,385 1,885,277 2,343,775

12,175,676 13,823,347 15,829,548 17,264,438 19,543,892

$14,697,017 14,839,799 18,766,518 24,108,863 25,737,608 34,213,494

1956-57 .

1957-58 . .

1958-59 . .

1959-60 1960-61 1961-62 .

. . . . . .

. .

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

GROSS BONDED DEBT

Trend of Bonded Indebtedness

PER CENT OF AS OF

GROSS BONDED

NET DEBT AS

ASSESSED

JULY 1

DEBT

AS OF JULY 1

OF JULY 1

VALUATION

$ 6,852,532 4,952,400

Not Available Not Available

Not Available Not Available

$1,170,448 2,466,172 2,528,849 2,461,239

$ 2,272,552

5.0 4.6 2.1 2.2 2.4

1 940

1945 1950

1955 1956 1957 1958 1959 1960 1961 1962

1962t

3,443,000 9,253,000 10,766,000 12,915,000 11,884,000 16,170,000 17,118,000 24,750,000 33,878,000 36,373,000*

REDEMPTION FUNDS

2,519,840 2,606,662 2,847,750 2,550,794 2,293,022 3,482,903

6,786,828 8,237,151 10,453,761 9,364,160 13,563,338 14,270,250 22,199,206 31,584,978 32,890,097

2.5 1.7 2.1 2.1 2.9 3.7 4.0

PER CAPITA

$28.80 20.80 9.30 25.08 29.18 35.00 28.57 35.99 38.10 55.08 75.01 80.53

■r As of November 30, 1962.

* Includes $8,000,000 in bond anticipation notes of which $5,000,000 will be retired out of the proceeds of this bond issue.

COLLECTIONStt

TOTAL UNCOLLECTED OF

PREVIOUS YEARS

PER CENT OF

PER CENT OF

ON 6-30-62

CURRENT LEVY

CURRENT LEVY

$ 3,495,961

$ 162,669

5,200,099 5,340,448 789,920 5,809,333 10,670,445 8,675,787 9,503,252 9,513,082 10,749,592 13,303,727 12,085,018 13,153,597 16,129,248 8,264,818

169,568 237,056 497,385 456,532 451,896 477,519 666,301 926,938

899,261 473,799 5,164,531 5,745,105 2,357,789 2,562,155 2,589,838 3,696,309 4,680,289 4,541,780 3,270,630 2,664,542 2,086,782

COLLECTIONS

RESPECTIVE LEVIES TOTAL

$ 503,335 1,151,291

CURRENT COLLECTIONS

70.6 75.3 80.3 4.6** 9.4** 65.8 68.9 67.4 62.4 59.6

1,071,417

1,500,100

2,186,902

62.5 57.5

2,706,765 4,323,809

72.0 75.7

82.5 96.7

96.6 11.4 84.5 142.7 94.5 92.3 85.7 90.8 96.3

92.1 95.9 90.7

tt Property tax collections through 1959-60 were about 60% for San Juan and 40% for Commonwealth purposes; since that time, the division has been about equal between the two purposes. ♌* Tax collections in 1951-52 and 1952-53 were abnormal because the reassessment program resulted in delays in issuance of tax bills and granting of non-penalty periods pending hearings on protests against new valuations.

Overlapping Debt - November 30, 1962 Assessed Valuation, Jan. 1, 1962

Commonwealth

Net Direct Debt,

$1,982,001,740 904,582,710

San Juan

Per cent of total A. V.

45.6%

Commonwealth

$199,863,567

San Juan share 45.6%

$ 91,137,787

San Juan direct debt .

32,890,097

Net Overlapping Debt

$124,027,884

Ratio of net overlapping debt to Assessed Valuation Per capita net overlapping debt

13.71%

$275

Bond Requirements, Next Five Years Principal Interest

.

Total

1963

1964

1965

1966

$1,607,000 985,282

$1,648,000

$1,668,000

$1,675,000

$1,545,000

927,160

866,898

806,260

749,242

$2,592,282

$2,575,160

$2,534,898

$2,481,260

$2,294,242

$

$

$

$ 300,000

1967

New Issue (principal) Series D

$

200,000

200,000

200,000

300,000

Breakdown of Property Tax R.si\e (Per hundred dollars) Municipal

san juan

ri'o piedras

General Funds* Loans

$ .92 .41

$ .92 .37

Total Municipal

1.33

1.29

1.03

1.03

$2.36

$2.32

Commonwealth

Total

* The tax rate levy of San Juan for general purposes is $1.12, but $.20 is granted as a reduction and is not collected as authorized by Act No. 16, approved May 31, 1960, and the rate for Commonwealth purposes was raised from $.83 to $1.03. Act No.

23, of June 6, 1961 directs the Secretary of the Treasury of Puerto Rico to compen

sate the municipality in an amount equivalent to the reductions granted in various amounts on assessed valuations of owner-occupied homes.

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