NORWAY – Bankruptcy, increased fees and cuts in town services were all discussed Thursday as the Board of Selectmen considered the possible impact of the Palesky tax cap.

While the board has been sensitive to complaints that municipalities across the state are using scare tactics to undermine support for the cap, members nevertheless painted a bleak picture of the town’s future.

“If the average citizen thought they waited too long to get a pothole repaired in the spring, wait till this happens,” Selectman Bob Walker quipped.

Trying to delve deeper into the issue, the board met with attorney Robert Crawford of the Portland firm Bernstein, Shur, Sawyer and Nelson.

Crawford posed nearly as many questions as he gave answers, pointing out that while most of Norway’s revenue would likely be turned over to the school district if the cap passes, no one is sure whether the entire measure will be deemed legal.

The Palesky initiative would cap property taxes at $10 per $1,000 of assessment, based on values in 1996-97.

Crawford said there are legal questions about the rollback in assessments. State law requires that all like properties be assessed at the same value, but rolling back assessments may create disparities, he said.

In addition, he said, “all that property has to be assessed at its just value.” Just value, Crawford explained, is fair market price. Rolling back assessments to the mid-90s could be in conflict with state law.

Along with other possible discrepancies between the tax-cap proposal and state law, Crawford talked about the budget cuts Norway may face if the ballot measure passes.

If Norway is short on funds and does not pay school or county taxes, he said, drastic measures may be imposed against the town, including seizure of real estate and personal property, including that belonging to residents. The property could be sold to pay off the town’s debt to each entity, Crawford said.

The board discussed holding a special meeting in order to inform residents of the possible implications of the cap. By showing current indebtedness, how the budget would be reduced under Palesky and what the projected school and county obligations will be next year, he said, the town can try to give an accurate picture of the cap’s implications.

After a career in municipal government, Town Manager David Holt said, “I don’t have any desire to serve under this system.”

“I don’t,” he added, “have any desire to watch the towns crumble.”