R-85-681 - 2/14/1985RESOLUTION NO. Coo /ie
WHEREAS, certain Banks in Williamson County have filed suit
against the Williamson County Appraisal District and Appraisal
Review Board concerning the 1983 valuation of the stock of those
Banks, and
WHEREAS, a Settlement Agreement has been reached between the
parties, and
WHEREAS, the Round Rock City Council wishes to ratify the
Settlement Agreement, Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS
That the Mayor is hereby authorized and directed to execute
on behalf of the City a Ratification agreement which is attached
hereto and incorporated herein for all purposes.
RESOLVED this 14th day of February, 1985.
ATTEST:
NE LAND, City Secretary
MIRE ROBINSON, Mayor
City of Round Rock
LARRY M. CALAME
HALE LINEHAROER
RUSSELL R. ORAHAM
BRIAN E. BROWN
FRANK B. WALKER
KATHLEEN D. MORRISON
City of Round Rock
c/o Mr. Forrest Child
Tax Assessor - Collector
Round Rock Independent School District
1300 North Mays
Round Rock, Texas 78664
Dear Mr. Child:
LAW OFFICES
GALAME, LINEBAROER 8Z GRAHAM
6402 SOUTH 1. H 36
P. O. BOX 17428
AUSTIN, TEXAS 78760
612 447-6675
January 29, 1985
EL PASO OFFICE.
604 MYRTLE
EL PASO. TEXAS 79901
915 633 -0637
HOUSTON OFFICE
966 DAIRY ASHFORD, SUITE 207
HOUSTON. TEXAS 77079
713 666 -0636
RE: Ratification of Settlement Agreement Between Williamson County Appraisal
District and the Banks of Williamson County
As you probably know, sixteen of the banks in Williamson County have filed suit
against my client the Williamson County Appraisal District and Appraisal Review
Board concerning the 1983 valuation of the stock of those banks. In attempting to
reach a fair and supportable value on the banks' stock a settlement was reached
which reflects the uncertainty of this area of the property tax laws and the desire to
settle the dispute amicably without the need of expensive litigation whose outcome
would be largely unpredictable. Enclosed are two items. One is a copy of the
settlement agreement reached by the banks and the appraisal district and appraisal
review board. This is attached as Exhibit A to the Ratification Agreement which is
the other document enclosed. The Settlement Agreement contains the terms agreed to
by the appraisal district and the banks concerning the valuation of the banks' stock
for 1983 and 1984. In simple terms the banks agreed to a value equal to 70% of the
appraisal district's appraised value. Because values are within the sole jurisdiction of
the appraisal district there is no legal necessity for the taxing units to approve this
portion of the settlement. However, one of the conditions of the settlement at the
request of the banks would be that any 1983 refunds due them be applied as a credit
to their 1984 liability. Obviously, this portion of the settlement is not within the
authority of the appraisal district thus there is a need for the taxing units to agree
to this method of handling the 1983 and 1984 adjustments in tax liabilities. Although
this was a request by the banks it is my personal opinion that it works to the benefit
of the taxing entities because it eliminates the necessity of sending out refund checks
by the taxing units.
The Settlement Agreement was somewhat hastily drawn so that the banks could
tender payment of their 1984 taxes before January 1, 1985. Consequently, there are
two misleading items in the Settlement Agreement as drafted by the banks' attorneys.
First of all, the agreement on page 1 states that the disagreement over the taxing of
the banks' stock exists between the banks and the taxing entities. I believe a more
precise statement would indicate that the dispute is actually between the appraisal
district and appraisal review board and the banks. The second item which is incorrect
is the reference on page 4 to our law firm representing the taxing entities. We do
not represent the taxing entities in this matter only the appraisal district and
appraisal review board.
It is our request that the enclosed documents be reviewed by the appropriate
official within your taxing entity and reviewed by your attorney at your option. If the
ratification agreement meets with your approval we would appreciate the ratification
agreement being signed by your mayor or other appropriate official and returned to
me in the enclosed self addressed stamped envelope as soon as possible.
If I can answer any questions for you about this matter please feel free to
contact me.
BEB /cc
Yours very truly,
rian E. Brown
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
RATIFICATION
WHEREAS, a certain instrument entitled "Settlement
Agreement ", a copy of which is attached hereto as Exhibit "A ", has
been executed as of December 28, 1984, by Shapiro, Edens and Cook,
attorneys for those certain banks described in the Settlement
Agreement, and by Calame, Linebarger and Graham, attorneys for the
Williamson County Tax Appraisal District and the Williamson County
Appraisal Review Board; and
WHEREAS, the Settlement Agreement in Exhibit "A" describes in
full and constitutes the complete agreement among the parties
described therein for the settlement of the Banks' 1983 and 1984
bank stock tax disputes with the Williamson County Tax Appraisal
District, the Willliamson County Appraisal Review Board and those
certain taxing authorities described in Exhibit "A ";
NOW, THEREFORE, know all men by these presents, that the
undersigned acting on behalf of each of the Banks described in
Exhibit "A" and the undersigned acting on behalf of the Williamson
County Tax Appraisal District, the Williamson County Appraisal
Review Board and the taxing authorities described in Exhibit "A ",
for and in consideration of the premises and the benefits
anticipated to accrue to all parties under the Settlement
Agreement, Exhibit "A ", do hereby commit to said Settlement
Agreement and ratify such Settlement Agreement as contained in
Exhibit "A" and as it pertains to each party, and do hereby agree
that they shall be bound by any and all of the provisions of the
Settlement Agreement, Exhibit "A ", as they pertain to each party,
the same as if the undersigned had executed the original of said
Settlement Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this
instrument on the dates opposites their respective signatures.
48/0045/3 1
Date Executed: By:
AMERICAN BANK, Round Rock
FIRST NATIONAL BANK OF
CEDAR PARK
Date Executed: By:
CITIZENS STATE BANK,
Georgetown
Date Executed: By:
CITY NATIONAL BANK OF TAYLOR
Date Executed: By:
COUPLAND STATE BANK
Date Executed: By:
FIRST NATIONAL BANK OF
GEORGETOWN
Date Executed: By:
FIRST NATIONAL BANK OF
ROUND ROCK
Date Executed: By:
FIRST STATE BANK, Granger
Date Executed: By:
FIRST - TAYLOR NATIONAL BANK
Date Executed: By:
Date Executed: By:
48/0045/3 2
GRANGER NATIONAL BANK
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed: 02 ,5
48/0045/3 3
INTERFIRST BANK NW AUSTIN
By:
REPUBLIC BANK NORTHWEST AUSTIN
By:
SCHWERTNER STATE BANK
By:
UNION STATE BANK, Florence
By:
WALBURG STATE BANK
By:
GEORGETOWN NATIONAL BANK
By:
WILLIAMSON COUNTY TAX
APPRAISAL DISTRICT
By:
WILLIAMSON COUNTY APPRAISAL
REVIEW BOARD
By:
WILLIAMSON COUNTY, TEXAS
By:
CITY OF ROUND ROCK
By:
Date Executed: By:
Date Executed: By:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
Date Executed:
48/0045/3 4
CITY OF GEORGETOWN
CITY OF TAYLOR
CITY OF CEDAR PARK
By
CITY OF GRANGER
By:
CITY OF FLORENCE
By:
ROUND ROCK INDEPENDENT SCHOOL
DISTRICT
By:
GEORGETOWN INDEPENDENT SCHOOL
DISTRICT
By:
TAYLOR INDEPENDENT SCHOOL
DISTRICT
By:
LEANDER INDEPENDENT SCHOOL
DISTRICT
By:
Date Executed: By:
COUPLAND INDEPENDENT SCHOOL
DISTRICT
Date Executed: By:
Date Executed: By:
48/0045/3
5
GRANGER INDEPENDENT SCHOOL
DISTRICT
FLORENCE INDEPENDENT SCHOOL
DISTRICT
WHEREAS, American Bank, Round Rock; First National Bank of
Cedar Park; Citizens State Bank, Georgetown; City National Bank of
Taylor; Coupland State Bank; First National Bank of Georgetown;
First National Bank of Round Rock; First State Bank, Granger;
First - Taylor National Bank; Granger National Bank; InterFirst Bank
NW Austin; Republic Bank Northwest Austin; Schwertner State Bank;
Union State Bank, Florence;
National
County,
Bank,
Texas
having their
(hereinafter
27/3624/3 1
SETTLEMENT AGREEMENT
Walburg State Bank; and Georgetown
principal offices within Williamson
collectively referred to as the
"Banks ") have become involved in certain disputes and differences
with Williamson County (the "County "), the Cities of Round Rock,
Georgetown, Taylor, Cedar Park, Granger and Florence, Texas (the
"Cities ") and the Round Rock Independent School District, the
Georgetown Independent School District, the Taylor Independent
School District, the Leander Independent School District, the
Coupland Independent School District, the Granger Independent
School District and the Florence Independent School District, (the
"School Districts ") regarding the proper method of assessing 1983
and 1984 bank stock taxes against the Banks; and
WHEREAS, all of the Banks except Georgetown National Bank
previously filed suit against the County, the Cities, the School
Districts, Williamson County Tax Appraisal District ( "Appraisal
District ") and Williamson County Appraisal Review Board
( "Appraisal Review Board ") appealing their 1983 bank stock tax
assessments, which suit presently is pending in the 277th Judicial
District Court of Williamson County, Texas under docket no.
84- 091 -C, styled American Bank, Round Rock, et al v. Williamson
County Tax Appraisal District and Williamson County Appraisal
Review Board; and
WHEREAS, the Banks previously filed protests pursuant to
§41.41 of the Texas Tax Code with the Appraisal Review Board
appealing their 1984 bank stock tax appraisals by the Appraisal
EXHIBIT "A"
District, which protest is presently pending before the Appraisal
Review Board; and
WHEREAS, the legal issue presently involved in such
litigation and protest pertains to the computation of the Banks'
bank stock tax liabilities in light of the United States Supreme
Court decision in American Bank & Trust Company v. Dallas County,
No. 81 -1717 (July 5, 1983), which held that federal obligations
owned by a bank cannot be considered, directly or indirectly, in
computing a bank's bank stock tax assessment; in light of the
United States Supreme Court appeal in First National Bank of
Atlanta v. Bartow County Board of Tax Assessors, No. 83 -1620
(1983); and in light of American Bank and Trust Company, et al v.
Dallas County, et al, S.W. 2d (Tex.Civ.App.- Dallas 1984,
writ pending) which was the decision of the Dallas Court of
Appeals on remand from the United States Supreme Court; and
WHEREAS, the Banks allege that the American Bank & Trust
Company opinion entitles them to a substantial reduction of their
1983 and 1984 bank stock tax assessments; and
WHEREAS, in order to avoid the uncertain outcome of this
litigation and protest and the excess encumbrances and accruals on
the part of both the taxing units and the Banks until the case is
settled, a negotiated settlement is in the interest of all
parties; and
WHEREAS, the Banks, the County, the Cities, the School
Districts, the Appraisal District and the Appraisal Review Board
desire to resolve all disputes and difference relating to the
validity and computation of 1983 and 1984 bank stock taxes;
NOW, THEREFORE, in order to resolve said disputes and
differences relating to the imposition of 1983 and 1984 bank stock
taxes, the parties hereby agree to the following:
1. The County, the Cities, the School Districts, the
Appraisal District, and the Appraisal Review Board, will assess
the bank stock tax for 1983 against all of the Banks, except
Georgetown National Bank, based upon a valuation of the Banks'
stock equal to seventy percent (70 %) of the bank stock valuations
27/3624/3 2
in issue before the 277th Judicial District Court of Williamson
County, Texas in docket no. 84- 091 -C.
2. The County, the Cities, the School Districts, the
Appraisal District and the Appraisal Review Board will assess the
bank stock tax for 1984 against all of the Banks based upon a
valuation of the Banks' stock equal to seventy percent (70 %) of
the bank stock valuations in issue before the Appraisal Review
Board.
3. As partial consideration for entering into this
Settlement Agreement, the Banks will file a Motion for Non -Suit
and have entered an Order of Dismissal regarding their suit
concerning the 1983 bank stock taxes filed in the 277th Judicial
District Court of Williamson County, Texas in docket no. 84- 091 -C.
4. For purposes of the 1984 bank stock tax, the Banks will
not file or otherwise prosecute claims appealing the valuation of
the Banks' bank stock at a level equal to seventy percent (70 %) of
the bank stock valuations currently before the Appraisal Review
Board.
5. In paying their bank stock taxes for 1983 and 1984, each
Bank will be entitled to a credit, where applicable, for any
payment made on their 1983 bank stock taxes, based upon the 70%
valuation for 1983 agreed to herein. Any overpayment shall be
applied to the 1984 bank stock taxes paid by each Bank based upon
the 70% valuation for 1984 agreed to herein.
6. The 1983 and 1984 bank stock taxes based on the 70% bank
stock valuations referenced in paragraphs 1 and 2 hereof shall
constitute the full amount of taxes to be owed and paid on the
property (that is, each Bank's shares) for 1983 and 1984 tax
purposes.
7. In consideration of the County's, the Cities', the
School Districts', the Appraisal District's and the Appraisal
Review Board's entering into this Settlement Agreement, the Banks
hereby waive any and all claims arising out of or relating to the
1983 and 1984 bank stock tax assessments, except as expressly
provided herein.
27/3624/3 3
Executed and agreed to this ,„g0 day of December, 1984.
SHAPIRO, EDENS & COOK CALAME, LINEBARGER & GRAHAM
2200 One American Center P. 0. Box 17428
600 Congress Austin, Texas 78760
Austin, Texas 78701
By:
Sander W.
Gilbert J'
Attorneys for the Banks
27/3624/3 4
By:
o ssel R. Graham
rnal, Jr. Brian E. Brown
Attorneys for the County, the
Cities, the School Districts,
the Appraisal District and the
Appraisal Review Board