The 'A' rating on Springdale, Ark.'s bonds is based on Springdale's: Low, manageable level of current and planned future indebtedness; Healthy projected debt service coverage; and Significant rate flexibility. A significant concentration in the customer base constitutes a major offsetting factor. The bonds are secured by a first-lien pledge on the net revenues of the waterworks and sanitary sewer system. Springdale (population 46,000) is in far northwest Arkansas, immediately north of Fayetteville. The city is the headquarters for Tyson Foods and the regional economy is dominated by processed food and food preparation businesses, but also has other manufacturing and light industrial employment. The 10 largest water customers account for over 40% of both revenues and demand. Springdale's economy also benefits
