LITTLE ROCK — Arkansas legislators are turning up the pressure on struggling small towns that may lose their municipal charter if they are unable to manage their finances.
Haynes, located in Lee County south of Forrest City, is among the municipalities facing that risk.
The city has a population of 122 but is carrying a budget deficit of more than $35,000. It also owes more than $20,000 to the Internal Revenue Service and has not repaid most of nearly $17,000 owed to the city’s own street fund.
Members of the Arkansas Joint Auditing Committee have expressed concern that small cities with dwindling populations may not be able to manage their affairs.
If a municipality is found to be in noncompliance with state accounting laws, the committee can begin a process of withholding state aid, which could ultimately result in the loss of its charter. If that happens, that city would be governed by its county.
