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.
What they are paid
- 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
- 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.
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
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%
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%
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.
- PoliceThe cityArroyo Grande Police DepartmentCity of Arroyo Grande · May 12, 2026
- Fire protectionAnother agencyFive Cities Fire Authority (joint powers authority with Grover Beach)City of Arroyo Grande · May 12, 2026
- WaterThe cityCity of Arroyo GrandeCity of Arroyo Grande · May 12, 2026
- Lopez Reservoir water treatmentThe countyCounty of San Luis ObispoCity of Arroyo Grande · May 12, 2026
- Sewer collectionThe cityCity of Arroyo GrandeCity of Arroyo Grande · Jun 9, 2026
- Wastewater treatmentSeparate districtSouth San Luis Obispo County Sanitation DistrictCity of Arroyo Grande · May 12, 2026
- Trash disposalContractorContracted out by the cityCity of Arroyo Grande · Jun 9, 2026
- StreetsThe cityCity of Arroyo GrandeCity of Arroyo Grande · May 12, 2026
- Recreation programsThe cityCity of Arroyo GrandeCity of Arroyo Grande · May 12, 2026
- SchoolsSeparate districtLucia Mar Unified School DistrictCity of Arroyo Grande · Jun 9, 2026
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.
| Per city | El SegundoCA | Laguna WoodsCA | Arroyo GrandeCA | PinoleCA |
|---|---|---|---|---|
| Residents | 16,950 | 16,970 | 17,780 | 18,891 |
| Top administrator's base pay | $280,800 | $247,935 | $274,960 | $305,000 |
| Council member pay | $10,800 | $3,600 | $7,776 | Not 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 residents | 23.1 | 1.1 | 5.0 | 6.1 |
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.
- Yes: Adopted budget posted online City of Arroyo Grande · Jun 9, 2026
- Yes: City manager's contract findable onlineThe 2024 contract and both amendments are posted on the city's Compensation and Benefits page. City of Arroyo Grande
- Yes: Council pay stated in a public documentThe City Council Handbook states the mayor's $798 and members' $648 monthly pay. City of Arroyo Grande · Oct 14, 2025
- Yes: Employee pay publishedThe city posts a combined salary schedule with annual pay ranges by job title, effective July 31, 2026. City of Arroyo Grande · Jul 31, 2026
Questions to ask your council
- 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?
- 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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