Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Tomball ISD reports "superior" FIRST rating (98/100) and outlines investment outlook
Summary
CFO Zach Bowles told the Tomball ISD board the district earned a "superior achievement" FIRST rating with a 98/100 score and reviewed the annual investment report, citing a 5.23% average return in FY23-24 and lower returns in FY24-25 as federal rates fell.
CFO Zach Bowles told the Tomball Independent School District board at its Oct. 13 workshop that the district received a "superior achievement" rating under the Texas Education Agency—s Financial Integrity Rating System of Texas (FIRST), posting a score of 98 out of 100 for FY23-24.
Bowles said the FIRST rating is based on 21 indicators that assess districts—financial condition and that Tomball ISD passed all critical and ceiling indicators. He identified indicator 12—which measures future debt requirements against assessed property values—as the only indicator where the district lost points; for FY23-24 the district—s factor was 5.03, placing it in a range that resulted in an eight-point allocation for that metric.
The hearing also included a high-level review of the district—s investments. Bowles reported the district—s average rate of return was roughly 5.23% in 2023-24 and slipped to about 4.25% in 2024-25 after the Federal Reserve trimmed rates. He explained managers prioritized safety of principal and liquidity while seeking yield, and used investment pools and selected certificates of deposit (including placements with Prosperity Bank) to lock longer-term rates where appropriate. "Tomball ISD, again, we passed all critical and ceiling indicators," Bowles said during the presentation.
Board members asked whether the FIRST score affects national bond ratings. Bowles said rating agencies consider district financial practices and audited financial statements in their reviews; the FIRST rating feeds into that picture but does not alone determine agency ratings. He noted Tomball ISD maintains AA+ ratings from Standard & Poor—s, Moody—s and Fitch and that the district typically realizes about 5 to 7 basis points of interest-cost savings on bond sales relative to lower-rated peers.
The presentation also summarized portfolio composition as of June 30 snapshots, explained month-to-month liquidity differences tied to cash flows and capital-project spending, and described ongoing compliance with the Public Funds Investment Act and related local board policy. The board will receive the full FIRST report and the detailed annual investment packet as part of the regular meeting materials on Oct. 14.
The district framed the rating and investment results as evidence of sustained financial management; Bowles said he does not foresee near-term risks that would cause additional FIRST-point losses and emphasized continued monitoring of debt issuance, repayments and tax-base growth.
