NORFOLK - In a town with little commercial tax base, its financial constraints are particularly acute in a downturn economy.

Even in healthy years, Proposition 21/2 budget overrides are presented to voters - and often they are approved.

The upcoming budget year promises to be what could be the toughest one of them yet.

"Last year we were saying there would be an overrride this year," Selectman Rob Garrity recalled. "The economic situation is really tough for people. I think it is a hard question folks are going to have to ask. Everytime an override comes up, it comes down to what you value most in town and what can we do with the money we collect."

The selectman said he opposed the requested $414,910 budget override that went down in defeat by a 2-1 margin last June. "I thought this year coming up was going to be real bad," Garrity said of his reasoning for his opposition.

"My first hope is I would love to have a budget we can balance without an override," Garrity added. "If it looks like we can't give the same services we have had, we will have to discuss values and priorities."

Some welcome new tax revenue is coming in, with some business growth scattered around town, including two small industrial parks and a new Walgreen's drugstore downtown.

The town for years has been hoping the closed Southwood Hospital campus would be redeveloped into a revenue producer.

Residents at last spring's town meeting passed a measure that expedites the permitting process for the land.

"I think in the spring we will look to do downtown, too," Garrity said of proposing a similar easing of the permit process. "Timelines are certainly important to applicants."

To save money, Garrity has pushed for the formation of an energy committee, which beginning will look at ways the town can reduce its energy consumption.

"The energy committee is getting set up. We are getting folks interested," Garrity said. "Some towns that do these kinds of committees come up with big savings. Every $50,000 you save, you save a position."

On the school side, an increase in new bus fees for next school year is a possibility, among other reductions, school officials acknowledge.

"I think it really is going to be a real tough year budget-wise," Garrity said. "Most of it will depend on what happens with local aid. It has been the subject of a couple of selectmen meetings, but because it is such a fluid thing, it is hard to plan." Communication is being stepped up with boards and departments.

Some projects likely will fall on the backburner.

A new public safety building was also brought before voters for the first time last June, but the Proposition 2 1/2 debt exclusion for up to $14.4 million was soundly rejected. A committee has been meeting to bring the project along.

Another issue that has arisen this past year is a few dozen homes having leaks in their water pipes, which is being partly attributed to town water.

"We would like to get the water situation cleared up. That is a big goal," Garrity said.

STEPHEN PETERSON can be reached at 508-236-0377 or at speterson@thesunchronicle.com.