Hennepin County and the city of Minneapolis are heading toward a showdown over how they split the tab for prisoners at the county jail.

The City Council is moving to rescind a 40-year-old agreement over jail fees. It's acting after it was told that jail fees are expected to top this year's budget by more than $700,000, or 66 percent. Much of that is due to higher arrest rates.

But the move also is prompted by a recent internal audit by the city that said the city shouldn't be paying jail fees without legal authority to do so and a written contract with the county. The audit sampled arrest billings and said the city is paying more than what's required by law.

The city has been paying based on 1968 resolutions passed both by the County Board and City Council. But when the county unilaterally amended its charges in later years, the city kept paying.

The pending council action, due for a vote next week, would rescind its 1968 resolution and seek to negotiate a new agreement with the county. But if no deal is reached by July 1, Minneapolis would pay only the jail fees covered by state law, under the proposal before council.

"The clear goal is that we get a written contract," said Council Member Paul Ostrow, the council's lead person on the issue.

"It's curious they'd wait 40 years to do that," said Hennepin County Commissioner Mark Stenglein. He chairs the board's Public Safety and Judiciary Committee.

"Obviously, we have to look at what they're basing their decision on."

The county now charges a $75 processing fee for prisoners booked at the jail, plus an hourly fee for time in jail that amounts to $103.44 per day.

According to the city, Hennepin County is the only county in Minnesota to charge cities for the costs of housing someone before they are convicted. Minneapolis paid about 83 percent of jail billings, according to a 2001 county audit.

State law specifies when jail fees can be charged in some circumstances and is silent in others, according to the city attorney's office.

The county is charging the processing fee for all people booked. The law requires the city to pay for those charged under city ordinance, but the county is required to pay for those charged under state law, the legal review found.

The city also now pays the daily housing costs of those booked on misdemeanor or city ordinance charges, although state law is silent on that point, according to Assistant City Attorney Robin Hennessy.

Steve Brandt • 612-673-4438