CLEVELAND — The town of Cleveland formally passed its budget at the board meeting this week, including a two-cent tax increase.

Town officials cited inflationary pressures on operation costs and other expenditures as grounds for the increase.

The new tax rate is $0.32 per $100 valuation, up from $0.30. Even with the uptick, Cleveland still remains the municipality in Rowan County with the lowest tax rate by nearly a dime. Faith is $0.41 per $100 valuation.

According to information from Cleveland Town Hall, the median home value in the town in 2022-2023 was $125,000. More recent property valuation data was unobtainable by the Salisbury Post’s deadline, but because Rowan County has undergone a property tax reassessment since that time, for purposes of calculating the impact that the 2-cent tax increase will have on a Cleveland resident’s tax bill, a hypothetical $150,000 home will be used.

Last year, that home would have cost a property owner $450 in municipal taxes. Their bill this year will be $480 for an increase of $30.

Revenues for Cleveland’s General Fund are budgeted at $2,017,323. The greatest portion of that comes from ad valorem or property taxes, an estimated $859,000. Local option sales tax also represents a significant portion of approximately $300,000 and an appropriated fund balance amount of $294,224.

As usual, the greatest expense is the Cleveland Police Department which commands $828,073. Public Works represents the second greatest expenditure for the small western Rowan County town at $402,000. Administrative costs are also slated to cost the town $337,410.

Other expenditures of notes are street and sanitation which are $80,000 and $95,500 respectively.

The town anticipates collecting $205,000 in water fund revenues, with the bulk of expenditures in that category going towards operations ($121,500) and administration ($60,000.)

Lastly, Cleveland anticipates revenues of $693,000 for the sewer fund. The bulk of those revenues, $600,000, are slated to come from consumer charges. Expenditures in that same category include administration ($240,000), operations ($343,350) and capital outlay ($75,000).

Mayor Pat Phifer said last week that it was expected the Cleveland Board of Commissioners would have to raise taxes a penny or two.

“There is a possibility for an increase,” Phifer said at the time. “We are still booking at numbers to see if there is a way we could not do it … We have gone through the budget with a fine-tooth comb to make sure we can pinch everything we can.”

Phifer indicated that the uptick would be the result of rising expenses across the board.

“Operation costs and everything else are going up,” he said. “We have had 21-percent inflation since our last tax increase.”

Additionally, as the town eyes the future, a much-needed sewer plant presents a glaring expense. Administration for expenses related to sewer were more than $100,000 greater than they were last year due in part to preparation for that new project.

Money was included in this year’s budget for the acquisition of two new police vehicles. Spending was down this year for parks and recreation because the town spent so much in the previous fiscal year adding new amenities to the town’s public spaces, like pickleball courts, new playground equipment and a paved walking trail.