Municipal League chief: Issue 3 would give cities tools to recruit

Issue 3, a ballot measure legislators referred to voters for this November’s election, would give cities in Arkansas the same ability to form development districts that cities in surrounding states have, Arkansas Municipal League Executive Director Mark Hayes said Tuesday (May 19) in a speech to the Rotary Club of Little Rock.

He said development districts would let cities offer tax incentives to spur economic investment. That can’t happen without a constitutional amendment because cities can’t give away property, money or other services under Article 12, Section 5 of Arkansas’ Constitution.

“We don’t have the kind of thing that allows a city or county, for that matter, to get with a company and say, ‘Yes, we can do the following things for you based upon the new tools that we have,’” he said.

The prohibition robs Arkansas cities of economic development tools enjoyed by Arkansas’ surrounding states, Hayes said. He said several cities in Texas have solved their housing problems using development districts.

Arkansas lawmakers last year sent Issue 3 to voters as one of the three constitutional amendments they are allowed to refer. Issue 3 would address cities’ fiscal constraints, which was one of five challenges Hayes described in his talk. The others were technology, infrastructure needs, public safety, and housing affordability and accessibility.

Hayes said cities face challenges in using technology effectively while also defending themselves against cyber attacks. While a city the size of Little Rock has the resources to protect itself against cyber attacks, smaller government entities do not. A county recently had its entire system locked down, and the rebuilding process lasted four weeks at a high financial cost.

Hayes said Arkansas has 500 cities and towns comprising 70% of the state’s population. Only 37 cities, or 8%, have more than 10,000 residents. Another 74, or 15%, have between 2,500 and 9,999 residents. Twenty-nine percent of the state’s towns, or 147, have between 500 and 2,499 residents, while 191, or 38%, have between 100 and 499. Ten percent of the state’s towns (51) have less than 100 residents.

Infrastructure funding is another challenge. Hayes said cities produce 75% of the state’s drinking water. While big cities have the resources to maintain the systems, smaller cities may not, as evidenced by the many boil orders throughout the state and the National Guard providing water in Helena-West Helena.

“Unfortunately, over time, because of the lack of population and a lack of resources, many smaller systems are now failing and failing rather dramatically,” he said.

Hayes said communities are struggling to find water operators, which he called a “dying breed.” They’re licensed professionals who require technical training. To address the situation, the Municipal League is working with two-year colleges to produce more water operators and is studying how to regionalize multiple systems. He said the League hopes Gov. Sarah Sanders will release $25 million in water system grants in the next couple of months.

“The bond market has to remain strong, and it has to remain tax free,” he added. “There’s been a couple of movements to take that tool away at the national level. That would absolutely devastate public entities, and you would have no water systems left, frankly, if that tool went away.”

Public safety is another challenge facing cities. Hayes said it’s become difficult to recruit and retain police officers nationwide. Low pay is one reason. He also said when he started his career as an attorney, police officers were trusted to tell the truth and held in higher esteem. That is no longer the case. He said that officers must be continuously educated on the possibility that someone has a camera and could post a social media clip of an encounter that does not accurately reflect what happened.

Affordable and accessible housing is another issue with which cities are grappling. Hayes said Arkansas lawmakers during the past four legislative sessions have reduced cities’ authority on zoning and regulations. He said safety codes are designed internationally and adopted by most states and cities to ensure houses are safe. The codes should be protected, though regulations could be simplified.

He said cities must consider mixed use developments and said denser cities make it easier to provide basic services. Housing availability needs to be encouraged in Camden and East Camden, where many defense industry employees drive from elsewhere to work, he added.