Where do my property taxes go? We broke down spending in 3 SLO County cities
Do you pay property taxes in Paso Robles? What about Atascadero or Morro Bay?
During the 2025-26 fiscal year, these three incorporated cities collected a combined total of more than $40 million in property taxes, according to city financial records.
Each city spends its tax revenue on different departments and projects, spanning from law enforcement and fire safety to parks and recreation.
Find out how your city is spending its property tax revenue:
How do property taxes work?
Homeowners in SLO County pay property taxes at the county and city level.
County property taxes are paid by all homeowners in SLO County, while some charges are dependent on what area you live in.
The California State Board of Equalization designates official tax rate areas, districts within the county that have specific property taxes.
Some taxes only affect one tax rate area, while others can impact multiple sections of the county.
This is because city specific property taxes are voter-approved local bonds that require a direct vote by the citizens in that area.
What are countywide property taxes?
SLO County has multiple countywide property taxes.
Proposition 13, passed by California voters in 1978, “limits the tax on property to 1% of its taxable value, plus the rate necessary to pay off voter-approved bonds and indebtedness,” according to the Office of San Luis Obispo County Assessor Tom J. Bordonaro, Jr.
This established a base rate for property taxes in California.
Prop 13 prohibits both state and local governments from charging any new taxes that are based on your property value.
If you see a charge for the state water bond on your property taxes, this is from the yearly water allocation from the State Water Project.
The State Water Project was approved by California voters in 1960. Voters had to then vote for their local water agency to participate in the project.
n 1963, the county water district entered into an agreement with the California Department of Water Resources for an annual state water allocation. This added the state water bond tax rate to property taxes in SLO County.
Property tax rates are a sum of the rates of bonds, leases, and projects.
Which city property taxes am I paying for?
Property tax rates can include rates from voter-approved local bonds, including:
- State Water Project
- City bonds
- Unified/high school bond lease
- Improvement district or elementary school bonds
- Community colleges
- Special district bonds
Not all incorporated cities within the county charge all the sections.
City property taxes, also called voter-approved local bonds, can only be added to statements if a two-thirds majority of registered voters are in favor within the local jurisdiction, SLO County said.
How is Paso Robles spending its property taxes?
Paso Robles property owners paid $20.28 million in property taxes for the 2025-26 fiscal year, accounting about 16% of the city’s total revenue budget.
More than 60% of property tax revenue goes to the General Fund.
This fund pays for expenditures within city government departments including the Paso Robles City Council, Police Department, Public Works and Fire and Emergency Services, according to the city’s budget report.
In past years, money from the General Fund was also transferred to other funds such as the Capital Projects Fund.
This fund supported projects including library improvements, bike and pedestrian areas on North River Road and Bolen Street sinkhole remediation.
A total of more than $2.3 million was spent on the Landscape Lighting Fund. This fund is used for improving drainage systems, irrigation systems, street lighting and open space areas, the city said.
Property taxes also contribute to other funds that improve or develop projects including:
- Ambulance and paramedic services
- Fire protection and suppressions
- Police protections
- Recreation programs
- Airport improvements
Paso Robles homeowners’ taxes also contribute to the Olsen-South Chandler Ranch Specific Plan Project.
The project seeks to develop “1,293 residential units within the city of Paso Robles, ranging from single-family to multifamily (units),” the County tax office said.
The development would also include a new public elementary school, a community building and a private recreational center with parks and trails. As of April 2026, the project had built about 200 homes, although it stalled due to a loss of funding, The Tribune previously reported.
How does Morro Bay spend tax revenue?
Morro Bay received close to $6 million in property taxes for the 2025-26 fiscal year, according to the city’s Fiscal Year 2026-27 Operating and Capital Budget report.
Property taxes accounted for 7.9% of the city’s total revenue, according to the report.
Morro Bay brought roughly $76 million in total revenue for the 2025-26 fiscal year, with expenditures costing about $67 million.
Around 31% of expenditures were from Morro Bay’s General Fund, which received more than $5.8 million from property taxes.
About 13% came from the Water Operating Fund, which accounted for $9 million of the city’s expenditures
Another 23% came from the Sewer Operating Fund, the equivalent of more than $15.6 million.
Both funds are “self-supporting,” meaning that the revenue generated from Morro Bay’s water and sewer ratepayers sustain the funds.
In the 2025-26 fiscal year, expenditures from the Water Operating Fund and the Sewer Operating Fund cost more than their revenues brought in.
The water fund went over budget by more than $500,000, and the sewer fund was about $3.5 million over budget.
In recent years, water, sewer and capital funds have supported Morro Bay’s Water Reclamation Facility project.
The new wastewater treatment plant, which was completed in 2022, will be eventually capable of supplying Morro Bay with 80% of its water needs, The Tribune previously reported.
Other aspects of the project, including three new injection wells, are expected to be finished by fall 2026, according to the 2025 Cannon Conceptual Design Report.
The Capital Projects Fund accounted for nearly 10% of total expenditures.
In the 2025-26 fiscal year, capital improvement projects in Morro Bay included storm drain maintenance, sidewalk improvements and police radio communication upgrades, according to the city’s Operating and Capital Budget for Morro Bay.
“Revenues in this fund are from several funding sources that are transferred to this General Capital Projects fund to contribute towards citywide capital projects, the city budget report said.
What does Atascadero spend its property tax revenue on?
For the 2024-25 fiscal year, Atascadero had a property tax revenue of about $14.6 million, according to the most recent Atascadero Financial Statements from 2025.
Almost 90% of property taxes went toward Atascadero’s General Fund – more than $13.4 million – while the other 10% went to other non-major governmental funds.
The General Fund “accounts for all financial resources except those to be accounted for in another fund,” the city said in its financial statement, functioning as Atacadero’s “general operating fund.”
Property taxes contributed about 33% of the $40.1 million revenue from the General Fund.
General Fund expenditures exceeded the amount of revenue allocated by more than $600,000.
More than half of the General Fund was spent on public safety, 14% went to capital outlay and another 10% went to general government as well as community, recreation and zoo services.
Capital outlay is used to maintain facilities that operate and provide programs and services, according to the California’s Legislative Analyst’s Office.
Salaries and benefits for police officers and firefighters made up the majority of public safety-related expenditures, totaling more than $14 million.
Other public safety spending came from computer maintenance, computer replacement and vehicle and equipment operating costs.
Capital outlay expenditures included the replacement of a 911 recording system, zoo perimeter fencing, aviary exhibit improvements, a turf sweeper, a utility cart and slurry seal and stripe parking lots.
The Atacadero Fire Department’s capital outlay also contributed $1.5 million to the Public Safety Facilities Project.
The Public Safety Facilities Project includes the “construction of new Fire Station No. 1 and Emergency Operations Center. Rehabilitation and upgrades to Fire Station No. 2 and police headquarters facilities,” the city of Atascadero said.
