The rating on Tacoma, Wash.'s bonds reflects the following risks: * Rates to commercial customers that are higher than surrounding systems; and * Some uncertainty regarding future disposal costs and methods. The rating is supported by the following strengths: * The system's strong control over the waste stream through municipally owned collection, which insulates the system from competitive threats; * Good debt service coverage and healthy liquidity; and * Competitive rates to residential customers. The system provides collection and disposal for residential, commercial, and industrial entities in the city. No private haulers operate in the city, although there are approved self-haul customers representing about 7.6% of system revenues. The city has statutory authority to be the sole provider of collection
