The town of Wilsonville is pulling from its reserves and borrowing money to pay for several capital projects.

According to the 2006-2007 operating budget that the town council adopted Sept. 11, Wilsonville is expected to take in close to $1 million in revenue this year, but has expenses closer to $2 million.

To balance the budget, the town council decided to take $400,000 from Wilsonville&8217;s reserves and borrow $900,000 from M&F Bank.

The loan money has been earmarked to finish renovations at the Wilsonville Town Hall and build a new water tower. Of the loan, $500,000 will go directly towards the water tower, while the other $400,000 will go into the general fund to be used to finish the town hall renovations and other special, one-time projects.

Next year&8217;s operating budget includes funding for the town&8217;s third fire truck and slight increases for the town&8217;s library and cemetery funds.

Mayor Rosemary Liveoak also recommended a three percent cost-of-living raise for Wilsonville&8217;s full-time employees, which the council unanimously approved. The town&8217;s one-part time employee&8217;s wage was also raised to $9.50 an hour.

Wilsonville has 15 years to pay off the loan