Using a functional class is perfectly fine, but it may not the best way to design your application.
For instance, you might have a generic 'string' or 'data' class with static methods like this (implementation missing, obviously):
class strfunc{
public static function truncate($string, $chars);
public static function find_prefix($array);
public static function strip_prefix($string);
public static function to_slug($string); #strtolower + preg_replace
etc.
}
The point of a class like this is to provide you with a collection of generic, algorithmic solutions that you will reuse in different parts of your application. Declaring methods like these as static obviates their functional nature, and means they aren't attached to any particular set of data.
On the other hand, some behaviors, like escaping data for a query, are more specific to a particular set of data. It would probably be more appropriate to write something like this, in that case:
class db_wrapper{
public function __construct($params); #connect to db
public function escape($string);
public function query($sql);
public function get_results();
}
In this case, you can see that all of the methods are related to a database object. You might later use this object as part of another object that needs to access the database.
The essence of OOP is to keep both the data and its relevant behavior (methods) in one place, called an object. Having behavior and data in the same place makes it easier to control data by making sure that the behavior attached to the data is the only behavior allowed to change it (this is called encapsulation).
Further, having the data and behavior in one place means that you can easily pass that object (data and behavior) around to different parts of your application, increasing code reuse. This takes the form of composition and inheritance.
If you're interested in a book, The Object-Oriented Thought Process makes for a decent read. Or you can check out the free Building Skills in Object-Oriented Design from SO's S.Lott. (Tip: PHP syntax is more similar to Java than Python.)