How Arroyo Grande is run

Who runs Arroyo Grande, what it costs, and where your money goes

The city manager, council pay, the budget, your property tax bill and who provides each service, from Arroyo Grande's own public documents. Every number links to its source and says which year it describes. Checked Oct 10, 2026.

Who runs Arroyo Grande

A city manager appointed by the council runs day-to-day operations and appoints department heads. The council, a mayor elected citywide plus four members elected by district, adopts ordinances and the budget and hires the city manager and city attorney.

City of Arroyo Grande · May 12, 2026

What they are paid

City manager Matthew Downing: base pay$274,960FY2026-27. His contract, as amended April 28, 2026, sets his salary at the top step of the City Manager range, which is $274,959.92 a year on the schedule effective July 31, 2026. City of Arroyo Grande · Jul 31, 2026
In the contract
  • Contract runs through January 8, 2032 (2026 amendment)
  • City matches up to $3,000 a year into a 401(a) retirement plan, plus $500 a year after ten years of service
  • 80 hours of management leave a year, not cashed out at separation
  • Cannot be fired without cause for 60 days before or 120 days after a general election, with narrow exceptions
  • Same benefits as the city's executive team, except where the contract says otherwise
A council member$7,776 a year2025. Council members receive $648 a month. City of Arroyo Grande · Oct 14, 2025
The mayor$9,576 a year2025. The mayor receives $798 a month. City of Arroyo Grande · Oct 14, 2025
Council benefits
  • City contributes toward medical, dental and vision insurance at the same amount as for management employees
  • No cash paid in place of unused insurance contributions
  • Enrolled in a non-CalPERS retirement plan

Arroyo Grande city staff

88 full-time-equivalent positions, including Police 32, Public works 17, General government 13, Community development 8, Recreation 6, Water 6. FY2025. City of Arroyo Grande · May 12, 2026

The city posts a combined salary schedule with annual pay ranges for every job title, plus labor agreements. Firefighters work for the Five Cities Fire Authority, not the city. We name pay only for elected officials and the city manager.

Is Arroyo Grande in the red?

Cities must pass a balanced budget, so "profit" and "deficit" mean something different here. The useful questions: does the city's everyday money (the general fund) cover its everyday costs, how much does it keep in savings compared with its own target, and how big are its pension and debt bills.

General fund, FY2026-27$35.7MOut of $55M across all city funds, which includes utilities and other money that can only be spent on one thing. City of Arroyo Grande · Jun 9, 2026
Savings shrank, FY2025 (audited)−$2MGeneral fund revenue $25.5M, spending $24.7M. Took in $0.7 million more than it spent. After $5.3 million in transfers out and $2.5 million in transfers in, the general fund balance fell $2.0 million. City of Arroyo Grande · May 12, 2026

Savings against the city's own target

Unassigned general fund balance: $8.6M (2025-06-30). The city's own target: Keep an operating reserve of at least about 15% of yearly operating spending, with a goal of 20%. The audit says unassigned fund balance was 25.5% of general fund spending at June 30, 2025, above the 20% goal. The city meets this target. City of Arroyo Grande · May 12, 2026

Pension promises not yet funded$23.8MCalPERS, June 30, 2025: miscellaneous plan $14.9 million unfunded (72.0% funded), police plan $6.6 million (86.1% funded), fire plan $2.3 million (87.8% funded). (2025-06-30). CalPERS
Debt owed$810,3432025-06-30. City of Arroyo Grande · May 12, 2026

Why we skip the "budgeted deficit": many cities plan to dip into savings, then spend less than planned. The audited result tells you what really happened.

Where the money comes from and goes

The general fund only: the city's everyday money for FY2026-27.

Comes from

  • General Fund taxes, fees and other revenue$21.1M · 59%
  • Measure E-24 local 1% sales tax$5.9M · 17%
  • Measure O-06 local 1/2% sales tax$3M · 8%
  • Transfers in from other funds$2.9M · 8%
  • Use of fund balance$2.9M · 8%

City of Arroyo Grande · Jun 9, 2026

Goes to (FY2026-27)

  • Salaries and benefits$14.9M · 42%
  • Services and supplies$12.5M · 35%
  • Transfers out (mostly Measure O-06 and E-24 sales tax money)$7.9M · 22%
  • Debt service$282,786 · 1%
  • Capital outlay$51,529 · 0%

City of Arroyo Grande · Jun 9, 2026

Your property tax bill: who gets it

Most of the bill is the 1% base levy set by Proposition 13, which the county splits among local agencies. The rest pays for voter-approved school, college and water bonds. The city has no voter-approved property tax of its own.

0¢

of each property-tax dollar goes to the city of Arroyo Grande

  • 1% base levy (shared by the county, schools, the city and special districts)1 · 95%
  • Lucia Mar Unified School District bonds0.028 · 3%
  • Cuesta Community College bonds0.0175 · 2%
  • Lopez Dam bonds0.006 · <1%
  • State Water Project tax0.00365 · <1%
  • Total (% of assessed value)1.05515

FY2024-25 rates for a home in Arroyo Grande (San Luis Obispo County). City of Arroyo Grande · May 12, 2026

Who provides your services

Not everything in Arroyo Grande is run by the city. Who provides a service decides whose budget pays for it and whose election decides it.

Compared with similar cities

The cities in this state closest in population that we cover. Read it for scale, not as a ranking: cities provide different services.

El SegundoCALaguna WoodsCAArroyo GrandeCAPinoleCA
Residents16,95016,97017,78018,891
Top administrator's base pay$280,800$247,935$274,960$305,000
Council member pay$10,800$3,600$7,776Not confirmed
General fund per resident$6,394$566$2,008$1,585
Debt per resident$7,728$0$46$1,545
Unfunded pension per resident$1,958$-14$1,341$2,369
City staff per 1,000 residents23.11.15.06.1

Figures as shown in each city's section, divided by its population. Years differ by state, and pension figures are measured differently in each state (each city page says how). Laguna Woods and Arroyo Grande and Pinole pays another agency for police or fire, so its own staff count is lower.

What Arroyo Grande publishes

What a resident can find online today. A "no" is something you can ask the council to publish.

Questions to ask your council

  1. CalPERS pension plans were $23.8 million unfunded as of June 30, 2025, and the miscellaneous plan was 72.0% funded. Does the city plan extra payments?
  2. The FY2024-25 audit report is dated April 30, 2026, ten months after the year ended. What would it take to finish it sooner?

The fiscal year starts July 1. The city adopts a two-year budget: the FY2025-27 budget was presented May 27, 2025 and adopted June 10, 2025. A mid-cycle update for the second year comes to the council each June, with quarterly updates during the year. See who is running for council

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