Transaction Details

School District of the City of Pontiac

Municipal

Municipal Advisor

Revitalizing Pontiac Schools Through Strategic Financing

The School District of the City of Pontiac, Michigan (the “School District”), serves a diverse student population across Pontiac and neighboring Oakland County communities. In response to decades of evolving educational and facility needs, voters authorized the issuance of bonds in one or more series in an amount not to exceed $147 million in March of 2020. This initiative aimed to modernize schools, expand academic offerings, and reinforce the School District's commitment to providing safe, inclusive, and future-ready educational environments.

To strategically align bond proceeds with capital needs and minimize the tax impact on residents, the School District partnered with Baird, serving as municipal advisor, in executing the financing in three structured phases:

• Series 2020 ($90.05 million par amount issued): Addressed immediate and critical infrastructure repairs, including roofing and HVAC systems across multiple campuses.
• Series 2023 ($24.04 million par amount issued): Focused on technology enhancements, bilingual and STEM program expansions, and increasing dual-enrollment capacity.
• Series 2025 ($18.015 million par amount issued): Completed essential upgrades such as ADA accessibility improvements, security enhancements, and playground refurbishments.

The Series 2025 Bonds, which closed on July 15, 2025, represents the final installment under the 2020 voter-approved authorization. The bonds, structured as Unlimited-Tax General Obligations, carry an Aa1 rating from Moody’s, fully qualified under the Michigan School Bond Qualification and Loan Program. This qualification provided critical state support, significantly lowering borrowing costs and ensuring stable debt service obligations even in periods of economic uncertainty.

Baird’s municipal advisory team played a pivotal role in guiding the School District through the intricate multi-year financing process, carefully structuring each issuance to maximize taxpayer value while efficiently meeting essential capital priorities. Notably, the 2025 Bonds were strategically structured with an optional redemption date of May 1, 2035, callable at par value, offering the School District flexibility in managing long-term interest costs and financial obligations.

Through the partnership with Baird, the School District successfully leveraged favorable financing conditions, positioning the School District to continue its trajectory of academic excellence and infrastructural renewal. The completion of the Series 2025 Bonds underscores the community's commitment to safe, modern, and equitable schools.