I've also been running some numbers on finances, and it occurs to me that there ought to be some limit on regular grogs (after all, these are all people being given up from other covenants). So I'll say that you can have up to the following number of 'regular' (i.e., free) grogs:
Specialists: 10
Craftsmen: 10
Soldiers: 15 (just regular footmen)
Laborers/Servants/Teamsters: as many as required by Covenants (at least 30)
Horses: as many as you want (within reason)
This does not count grogs that you pay BPs for. They come in over top of this. Also, a magus' shield grog and one servant are free as well.
I'll assign who the grogs are on a first-come-first-served basis. Currently we have one specialist assigned (Granny Grizel, the chirurgeon). Remember that many of these grogs will have been chosen because they have supernatural abilities, so you're free to choose any reasonable supernatural ability you like, and need not fear that you're going over the top.
Oh, and one other thing that I can see is that I haven;t given you enough cash, 250 mythic pounds doesn't go very far when you're spending 120 of that to placate a dragon. So I'll give you a second normal revenue source, giving you a total of 350 MP/year. But that still doesn't mean that you shouldn't look for new sources of revenue. These both represent charity from other covenants. This charity is not infinite. They expect you to get on your feet eventually and support yourselves. It's just that you have some time to do that.