Walnut Ridge-Hoxie consolidation may be considered in Lawrence County

In the middle of the vast high dollar agriculture fields that define eastern Lawrence County there is an island of civilization. Walnut Ridge, the county seat, contiguously borders two other towns, College City and Hoxie.

Last year, voters in College City and Walnut Ridge voted to consolidate, and the two towns are now one city. An effort to consolidate the newly formed Walnut Ridge and Hoxie is underway, Talk Business & Politics has learned. A petition drive could begin in the coming months and a vote could come sometime this year.

Walnut Ridge Mayor Charles Snapp said he supports the two communities joining to form a single city, one that would have a population of more than 8,000 residents.

“It would mean more jobs, better infrastructure, better services, and an enhanced quality of life for all our citizens,” Snapp said. “At some point, we have to think about the quality of life for our children and grandchildren. I’m not saying it will be easy. But it’s something we need to consider.”

Snapp has been a fervent supporter of increasing downtown redevelopment and helping push for more cultural and tourism-related visitors to Walnut Ridge centered around a Beatles visit in the early 1960’s.

Hoxie Mayor Lanny Tinker told Talk Business & Politics he doesn’t think a consolidation will happen. Hoxie, with a population of about 3,000, has been financially stable the last couple of years. If a catastrophic event, such as a total failure of the water or sewer lines were to occur, than a merger might be more appealing to voters in Lawrence County’s second largest city.

“I think I speak for the entire city council when I say we’re not interested at this time,” Tinker said.

At least 15% of the number of voters who cast ballots in the previous mayor election have to sign the petition for it to be placed on the ballot, according to the Arkansas Secretary of State’s Office. In Hoxie, 640 voters cast ballots in 2014 mayoral election, meaning at least 96 registered voters will have to sign the petition there. At least 1,449 votes were cast in the last Walnut Ridge mayoral election, meaning at least 211 voters there will have to sign the petition. If it makes the ballot, a majority of voters in both cities would have to approve the merger, Lawrence County Clerk Tina Stowers said.

A committee led by Walnut Ridge Alderman Jon Walter has been formed to study the financial ramifications of a consolidation. The committee has not completed its inquiry. Sewer and water lines, combining police forces, fire departments, garbage collection and others are being studied.

Tinker said he thinks the cities spend roughly the same amounts on these services, and the savings would be minimal. The infrastructure is about the same in both places, meaning there would be little to gain by a merger. Walnut Ridge already collects most of the sales tax in the county, so it wouldn’t receive a tax windfall if the two towns became one, he added.

There might be evidence a merger could be financially beneficial, Snapp said. Walnut Ridge city officials estimate up to $90,000 per year will be saved after the consolidation with College City. Duplication of services, state and county turn back funds, and the elimination of paid positions within the former town’s city government led to the savings, Snapp said.

College City residents had their millage rates drop from 1.5 mills, to 1 mills, meaning they will pay less property tax, according to county officials. The downside is that residents are now required to pay the city’s one-cent sales tax.

Hoxie has a 5-acre swath that borders U.S. 63 near the U.S. 67 turnoff. The site is under development, Tinker said. Electricity and other infrastructure have been improved on the lot. The goal is to lure a fast food restaurant, a hotel, or both to the site, he said. If one or both can be done, it would broaden the city’s sales tax base. Hoxie doesn’t have a fast food restaurant or hotel.

Tinker thinks a loss of community identity and the potential loss of governmental control will compel a majority of Hoxie residents to keep the town independent if the issue ever reaches the ballot.

Snapp said he hopes voters in both towns understand the ramifications if the two communities join. Large companies would be more enticed by a larger city. It could mean a boon to the region’s jobs growth, he said. It could also lead to wage growth, a serious problem in the county, Snapp said.

Hoxie has a median household income of $27,201, well below the state average and less than half the national average, according to the U.S. Census Bureau. Nearly 27.5% of Hoxie residents live in poverty. Walnut Ridge has a median household income of $34,524, and about 19.8% of its population lives below the poverty line.

Lawrence County unemployment rate has dropped almost two points from 5.4% in January to 3.6% in November of 2016, according to the U.S. Department of Labor. Jobs are more available, but at some point salaries need to increase, Snapp said.

“We’re talking about creating a community for our kids and grandkids to thrive in,” Snapp said.

With a population surge, the two towns would become one the 50 largest cities in the state. When a city of that size applies for grants with the USDA for infrastructure improvements or other governmental agencies, it has a lot more weight and will get more consideration, Snapp said.

Consolidation of Lawrence County’s two largest towns has been a topic of discussion for generations, Snapp said. Some polls conducted years ago indicated a willingness among residents in both towns to form a single municipality. But no polls have been conducted in recent years. At some point, residents in this part of the county are going to have to take a leap of faith, he said.

“We’re going to have to think about the greater good … I think we need to let the people vote,” Snapp said.