PSJA finance team reports 96% tax collection rate and reviews investment portfolio as Fed begins rate cuts

Assistant superintendent for finance presented the district’s annual tax collections report and an external advisor reviewed the quarterly investment report during the Oct. 27 meeting.

Miss Gonzales reported an adjusted levy of approximately $65 million and $62.7 million collected in the 12‑month period, representing a 96% collection rate. She noted prior‑year tax compression and the increase in the homestead exemption affected levy figures, and explained that the state had provided offsetting revenue in the prior compression year so district revenues were stable.

Philip Jones, an advisor with public‑funds advisory services, presented the quarterly investment review for the period ending Aug. 31, 2025. Jones summarized macroeconomic themes: the Federal Reserve began cutting the federal‑funds rate in September, markets are pricing additional cuts later in the year, and inflation remains a key determinant of cut pace. He recommended laddering portions of the portfolio into 2‑ to 3‑year maturities to lock in yields while managing liquidity, and noted the district’s current weighted average maturity of under one year and a portfolio yield near recent months’ averages.

Trustees asked about year‑to‑year yield changes, comparisons with peer districts and collateral/FDIC insurance; the advisor said the yield decline since May reflected market movements and portfolio cash flows, and staff said they would work on laddering strategies consistent with anticipated cash needs.

The tax collection report and investment briefing were informational; separate consent votes earlier in the meeting finalized specific budget amendments and procurement items.