The Union Bridge property tax rate will increase by 4 cents, as the Town Council passed a nearly $500,000 budget for the next fiscal year.
Officials said the town would take in and spend $494,500 next fiscal year, more than 38 percent over the current budget.
The budget proposal was discussed at a public hearing prior to the Monday night council meeting.
The assessed value of property within the town has increased from $17.3 million to about $19 million.
The tax rate was raised to support numerous town projects in the next fiscal year, said Mayor Perry L. Jones Jr.
"We had explained why we needed an increase pretty well," the mayor said. "I didn't anticipate any comments."
The town had lowered its property tax rate from 72 cents per $100 of assessed value to 68 cents per $100 two years ago and "probably shouldn't have," said the mayor.
"We should have put the money in a capital improvement program," said Mr. Jones. "Now we are right back to where we started from."
The largest expenditure on the 1994 budget is for construction of new municipal offices, which are expected to cost the town $100,000.
In other business, the town has relinquished ownership of the disputed alley on South Main Street.
The landowners will decide what to do with the land, a 12-foot-wide strip between the properties of Russell Doehrer and Sam Myers.