The warrant for next week’s special town meeting in Oak Bluffs contains only seven articles, but the issues it will decide are critical to the town’s future.

When voters gather on Tuesday at 7 p.m. at the Oak Bluffs School they will decide whether the town should cut $500,000 from the current operating budget and then spend $2.44 million to expand the town sewer system in order to tie in the regional high school and new YMCA building, among others.

The operating budget cuts are part of a larger plan by town officials to stem an ongoing financial crisis that has already resulted in layoffs, a spending freeze and consolidation in town departments.

The budget article, which appears first on the warrant, proposes cuts in 11 separate accounts, including $108,000 in salaries and $52,485 in other expenses at the Oak Bluffs school, $139,000 from the treasurer’s office, $68,562 from police department salaries, $26,481 from the assessors’ department, $35,563 from the shellfish department, $29,673 from health department salaries and $23,500 from harbor department salaries.

Gregory Coogan, chairman of the selectmen, said this week that town leaders have done their best to deal with a difficult financial situation. Local revenue and state aid have both dropped dramatically this year, he said.

“We don’t have the revenues of the past, that’s just the reality. And we’re doing more than just cutting taxes or raising taxes; we’re trying to make some changes to make town government more efficient,” he said. “I would hope people understand the bind the town — and the whole country — is in. I think you’d have to live under a rock if you didn’t.”

Meanwhile another article on the warrant asking voters to spend $2.44 million to expand the sewer system may appear ill-timed given the ongoing financial crisis. But wastewater superintendent Joe Alosso said the article only fronts the money for the improvements, and in the end will cost taxpayers nothing.

The cost of connecting the high school, the Y and the other facilities — about $994,000 — will be repaid through user agreements, Mr. Alosso said. And the town has applied for federal stimulus money from the U.S. Department of Agriculture that could cover between 40 and 50 per cent of the project, leaving the town’s actual financial obligation at about $746,600, according to language in the warrant article.

Mr. Alosso said he plans to amend the article on the floor of town meeting to allow for the remaining $746,600 to be paid from the town wastewater retained earnings account, and not general taxation. He said the wastewater commission decided to make the change in light of the town’s current fiscal problems.

“It’s not a good time to ask for more money from the taxpayer. We understand that everyone is hurting right now. But at the same time this is still an opportunity to do important work for the future of the town. We are fortunate in Oak Bluffs that the wastewater department is self-funded; it means we don’t have to put these projects on hold when money gets tight,” he said.

Mr. Alosso said expanding the wastewater system is part of a larger plan to reduce nitrogen loading in the town’s coastal ponds and watersheds.

But the project has its detractors.

Selectman Kerry Scott has questioned why the wastewater department purchased the Leonardo property two years ago when the site was within a protected sole-source aquifer area. “Somebody didn’t do their homework, and it wound up costing the town a lot of money,” she said.

Ms. Scott said the sewer system plan has not been thoroughly vetted by the public.

“The only chance people will have to talk about this is at town meeting, and in my opinion that’s too late. This is an important plan with serious long-term implications. Do I think it has benefits? Yes, there is no question we need to look at ways to reduce nitrogen loading. But I worry about a plan that has so many variables — from user agreements, to federal grants to questions [about the Leonardo property].”

She continued: “I admit I lost faith in the wastewater department a long time ago. They have a history of saying they will do something and then not doing it.”

A related request on the warrant seeking $50,000 for the wastewater department to install monitoring equipment and make repairs to leaching beds under Ocean Park is expected to be withdrawn.

Another spending article asks voters to allocate $250,000 to enter into a five-year lease-purchase agreement for a new town ambulance. The money would come from the ambulance reserve fund and would be used to replace a 2004 Ford ambulance that currently has around 130,000 miles on it.

Oak Bluffs ambulance chief John Rose said the town ambulance frequently breaks down and requires ongoing maintenance.

“We’ve broken down with patients in the back . . . we’ve actually broken down off-Island, meaning the ambulance has been unavailable for long stretches. It’s a huge problem,” he said.

The warrant also includes:

• Two articles asking voters to approve increased meals and rooms taxes, although selectmen have already said they do not expect either to be put to a vote. The articles appear for discussion purposes only and are expected to return on the annual town meeting warrant in the spring.

• An article asking voters to transfer $225,000 from the old resident homesite account to the affordable housing committee, to help complete the conversion of the old town library into three affordable apartments and retail space. The project is expected to cost about $900,000.

• An article asking voters to approve a zoning change that would add a half-acre parcel on Eastville avenue into the health care district. The Martha’s Vineyard Hospital wants to use the lot for additional parking.