I have fondly remembered this show since watching it in class as an elementary schooler in the 70s. I have been able to find absolutely no references to it online, until I ran across this thread, so I had to register here, JUST to reply. I was actually starting to think the show had been a figment of my imagination...but I do remember the title (as well as bits and pieces of the theme song). It was "Once Upon a Town."
EDIT: ...aaaaand I only just now noticed that, prior to "1 month ago," the time stamp of the OP says "8 years," so I doubt this will be seen by that poster, if anyone. Ah, well.