Spread the hate.. jus don't litter..

Honestly I'd be more upset if they were arrested for this. "I may not agree with what you are saying, but I would die for your right to say it." The residents needn't worry, this new KKK doesn't have the govenment behind it, meaning they won't break any actual laws (because they aren't stupid, just...whatever they are). Ignore them and they'll all die off in one or two generations. Make a big deal and you give them validity.