The 'A+' rating on Portage, Mich.'s public utility revenue refunding bonds reflects: Solid revenue bond debt service coverage (DSC) and strong system liquidity, Rate flexibility due to moderate rates and the city's ability to raise rates without outside agency approval, Adequate legal provisions, and Strong service area economy. Offsetting factors include: Significant capital needs that, if debt financed, will dilute coverage levels. Net revenues of the water and sewer system secure the bonds. The city serves about 14,000 water and sewer customers. The utility has adequate groundwater supplies; and sewage is treated by Kalamazoo, Mich. The system has more than adequate capacity. The water system has a 25 million gallons per day (mgd) capacity and an average daily production of
