Tuesday night, the Blytheville City Council gave an Arkansas Municipal League attorney the green light to make a counter-proposal to the county regarding the 2011-12 jail fees debt that is currently in litigation.
The board also allowed the attorney, Mike Mosley, to begin negotiating jail fees for January 2013 forward.
The county alleges that the city owes $887,295 as of Dec. 31, 2012, while the city contends the amount is actually $709,370 after the bills were reconciled.
The city's proposal is a $100,000 cash payment, crediting the county for what it owes for 911 and district court clerk salaries, then making $15,000 monthly payments for 30 or 31 months, depending on the agreed upon debts of both parties.
In March, the county proposed a lump sum payment of $300,000 and $25,000 monthly payments, asking that the arrearage be paid off within 24 months.
The county said part of the $300,000 could be a check swap for what it owes the city.
The two sides differ on that amount, however.
The county claims it owes $137,318 (through February), while the city says the debt is $152,644.
Mosley noted city and county employees will meet to decide exactly what Blytheville owes the county for 2011 and 2012 jail fees and determine what the county owes the city.
Whatever the final figure, the city can only afford a $15,000 monthly arrearage payment, according to Mosley, who is encouraging the Council to settle with the county, though not conceding any wrongdoing.
The $100,000 would come from an Administration of Justice account, which currently has $94,000, but should have a little more than $100,000 by the end of the month, Mosley said.
"This proposal is what, in consultation with your CFO, you can afford," the attorney said.
He noted the city is encouraged to make larger monthly payments when possible.
"But this would be the floor that we have to make," Mosley said. "Now, they're going to want to assess interest against us if we default. So my recommendation is if we make this counter offer, do not default because then we will have to pay interest at perhaps a rate of 6 percent."
In early 2011, the city and county entered into a two-year contract for jail fees with the agreement expiring at the end of 2012. There is no contract for 2013-2014 yet.
According to Mosley, unreconciled jail bills thus far this year are $22,000 for January and $21,000 each for February and March.
Along with trying to settle the lawsuit, Mosley will now start negotiating terms of a possible contract for 2013 and 2014. Typically, cities with a contract get a discounted rate.
mbrasfield@blythevillecourier.com