Nevada City School District
Supporting the first Measure E financing for capital improvements
Background & Opportunity
Nevada City School District, located in Nevada County, serves approximately 659 students through one elementary school and one intermediate school. For purposes of education funding, the District is a Community Supported District, meaning local property tax revenues exceed its funding entitlement under the State’s education funding formula. The District received voter authorization in June 2026 to issue up to $26 million of general obligation bonds to finance the renovation, construction and improvement of school facilities. The financing represented the first issuance under the authorization and provided funding for the next phase of the District's capital program.
On September 15, 2026, Baird's California K-12 Public Finance group served as sole managing underwriter for the District's $14,150,000 General Obligation Bonds, Election of 2026, Series A. The bonds carried an Aa2 rating from Moody's.
Solution & Implementation
The District's strategy was to enter the market in advance of the September Federal Reserve rate decision. By pricing on September 15, 2026, the District was able to take advantage of a lighter issuance calendar and avoid a degree of volatility that emerged later in the week following the Federal Reserve meeting.
While the bond sale generated investor interest, balances remained in certain maturities at the end of the order period. The longer maturities were more than 2x oversubscribed, while maturities in the front and middle portions of the yield curve experienced less demand. Baird adjusted spreads by 1 to 4 basis points in maturities from 2038 through 2046 and committed capital to support the order book.
Results & Impact
The financing generated approximately $14.0 million for the District's building fund and provided funding for voter-approved facility improvements through the first issuance under the District's 2026 bond authorization. The transaction funded the next phase of the District's capital program while preserving remaining authorization for future issuances.
