City of Pontiac Achieves Successful $20 Million Bond Sale to Fund New Recreation Center

PONTIAC, MI (October 16, 2025) — The City of Pontiac is proud to announce the successful sale of its 2025 Capital Improvement Bonds, generating $20 million in proceeds to support the acquisition, construction, and improvement of a new state-of-the-art recreation center within the City

“We’re very pleased that our city’s financial responsibility in recent years has enabled Pontiac to earn its highest ever bond rating of AA-, thereby saving taxpayers hundreds of thousands of dollars in interest on this bond issuance,” said Mayor Tim Greimel.

The successful bond sale is a significant boost for Pontiac as it prepares to lay down the blueprint and ignite the next step towards developing its highly anticipated recreation center, which includes:

• Comprehensive system installations

• Site enhancements

• Structural modifications

All of which will serve residents for decades to come.

In preparation for the bond sale, the City and its municipal advisor, Robert W. Baird & Co. Incorporated, requested a credit rating from S&P Global Ratings. S&P assigned the bonds an “AA–” rating, citing the City’s strong general fund performance, robust reserves, and modest debt burden with low carrying costs. To further enhance security, the bonds were insured by Build America Mutual, which maintains an “AA” rating.

The bonds were sold through a professional financing team that included Stifel as the underwriter, Baird as the municipal advisor, and Miller, Canfield, Paddock and Stone, P.L.C. as bond counsel. The bonds achieved an actual interest cost of 4.05% and will mature in 2045, representing a repayment term of approximately 20 years.

This transaction marks the first time in nearly two decades that the City has accessed the capital markets. Pontiac’s new “AA–” rating and sound fiscal management practices attracted strong investor demand, with participation from many of the nation’s most respected institutional investors, including bond funds, money managers, and bank and trust departments. When the bonds were offered for sale, investor demand was exceptionally strong, with orders totaling nearly four times the available amount. This high level of interest allowed the City to secure more favorable borrowing terms and reduce overall costs over the life of the bonds.

“This successful bond sale is a testament to Pontiac’s strengthened financial foundation and investor confidence in our City,” said contracted Finance Director, Daniel Clark, CPA (Principal at Rehmann). “We are proud to invest in critical community infrastructure while demonstrating prudent financial stewardship.”