AGREEMENT FINALIZED WITH STEAM UTILITY BONDHOLDERS

The mutually agreed upon settlement between holders of Menasha steam utility revenue bonds and the City of Menasha was finalized Monday, and funds will be released to bondholders.  There were no appeals of a judgment issued in Indiana court on December 1st to resolve the years’ long process.  The closing of the transaction eliminates uncertainty regarding the financial impact to residents.  The final settlement will allow us to once again focus on Menasha's future.

The settlement is a significant change in events that will likely trigger a review of the city’s bond rating which has declined due to the failure of the steam utility.  An improvement in the community’s bond rating will aid the continued recovery and growth of Menasha.

In April 2010, the citizens of Menasha came together to overwhelmingly approve a referendum that made a settlement with the steam plant bondholders possible. The sale/leaseback of the municipal electric utility maintains the community’s control of the utility that keeps Menasha's power costs considerably lower than neighbors in the region.  The agreement with WPPI allowed the city the ability to access equity in the electric utility without sacrificing the pilot payment or lower rates to the Menasha community.  Electric ratepayers will finance the lease for approximately 20 years at which time the electric utility will be able to be repurchased for $1.

The city maintains ownership of the steam utility facility, a former electric generating plant, the common council will be discussing potential future uses of the facility or site in coming months.  The city is also in continuing discussions with both the EPA and WDNR regarding alleged environmental violations.  The final resolution will be dependent on the city council’s determination of the final use of the site.

The final settlement will allow us to once again focus on Menasha's future, and restore the image of Menasha as a community of strong neighborhoods, vibrant businesses, and efficient government.