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Question on CR for the Half-Dragon Template

This may turn out to be a Pathfinder rules question, but the Half-Dragon template says it modifies the PC's CR to be Base Creature +2 (min 3) when applied. When using this in Hero Lab a Level 1 Half-Dragon Elf Cleric shows as a CR 3 as I would expect, but when I add additional class levels the CR is only shown as +1 to the number of class levels the character has total.

Is this an HL bug or because of a Pathfinder rule I am not aware of?
 
The CR of a character with PC class levels only is class level - 1, so adding the +2 from Half-Dragon to that gives you class level +1.
 
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