Transaction Details

City of Pontiac

Municipal

Municipal Advisor

City of Pontiac Invests in Community, Achieves Investment-Grade Rating

The City of Pontiac, Michigan (the “City”) is a historic and diverse community located in the heart of Oakland County. Once a hub of automotive innovation and manufacturing, The City of Pontiac has evolved into a dynamic city focused on economic revitalization, fiscal stability, and community growth. The City has undertaken strategic investments in infrastructure, public services, and neighborhood redevelopment to strengthen its foundation for long-term sustainability.

To support these ongoing efforts, the City issued 2025 Capital Improvement Bonds (Limited Tax General Obligation) in the amount of $18,680,000 to fund the construction of a new state-of-the-art recreation center within the City. The project will include the acquisition, construction, and improvement of a modern community recreation facility, encompassing site preparation, structural and building systems. This new facility is designed to serve as a central hub for community engagement, recreation, and wellness programming, aligning with the City’s broader strategy to enhance residents’ quality of life and strengthen neighborhood vitality.

The 2025 Capital Improvement Bonds were sold through a negotiated sale and are secured by the City’s limited tax full faith and credit pledge. The transaction represented a significant milestone for the City, achieving an inaugural investment-grade rating of “AA-” from S&P Global Ratings, marking a substantial improvement from the City’s prior non-investment-grade status over a decade ago. This rating reflects the City’s strengthened financial position and continued fiscal discipline.

The financing generated $20 million in project proceeds, inclusive of an original issue premium, with maturities extending through 2045. The structure provides long-term affordability and flexibility to support the City’s capital plan, with optional redemption beginning in 2035 and term bonds maturing in 2043 and 2045. The transaction achieved favorable pricing and strong investor participation, underscoring market confidence in the City’s financial turnaround and credit profile.

Baird served as Municipal Advisor to the City, guiding officials through all stages of the financing process — from early financial planning and rating agency engagement to transaction structuring, market timing, and successful bond pricing. The City’s collaboration with Baird helped deliver an efficient, investment-grade bond financing that will fund the development of a key community asset and continue the City’s progress toward long-term fiscal stability and civic renewal.