The rating on Tacoma, Wash.'s bonds reflects: * Strong system financial performance, * Low water rates, and * Reduced operational and financial risk associated with a proposed second supply water project. The rating also reflects the fact that the proposal has not yet been finalized. The bonds are secured by net revenues of the water system. The utility has been working closely with neighboring utilities to develop a second surface water source. Final agreement had originally been expected by December 1997 or early in 1998. Although the utilities appear to be close to agreement, they have not yet finalized the contracts, leaving room for uncertainty as to the final outcome. Although the utility has received necessary permits to begin construction,
