About LAFCo

The Local Agency Formation Commission (LAFCo) is an independent local government agency responsible for implementing the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. There is one LAFCo for every County in California.

LAFCo has the authority to review, approve, or deny boundary changes, such as annexations, detachments, and extension of services between the County, Cities, and Special Districts, and to establish local "spheres of influence." The sphere of influence for each governmental agency is a plan for its future boundary and service area. LAFCo's function is outlined in Government Code Section 56000 et. seq. known as the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.

LAFCo is responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structure and preparing a sphere of influence for each city and special district within each county.

A Commission's efforts are directed toward seeing that services are provided efficiently and economically while agricultural and open-space lands are protected. To better inform itself and the community as it seeks to exercise its charge, each LAFCo must conduct service reviews to evaluate the provision of municipal services within each county.

LAFCo has authority over:

  • Boundary Changes

  • Sphere of Influence Studies

  • Service Reviews

  • Initiation of Special District Consolidations

  • Out of Agency Service Agreements

  • Adoption of Local Policies

1. Boundary Changes

LAFCo regulates, through approval or denial, the boundary changes proposed by other public agencies or individuals. LAFCo does not have the power to initiate boundary changes on their own, except for proposals involving the dissolution or consolidation of special districts and the merging of subsidiary districts.

Typical applicants might include:

  • Individual home owners requesting annexation to a sewer district due to a failing septic system.

  • Developers seeking annexation to cities in order to obtain urban services for new housing.

  • Cities wishing to annex pockets or "islands" of unincorporated land located within their borders in order to avoid duplication of services with the county.

2. Spheres of Influence Studies

In 1972, LAFCo was given the power to determine spheres of influence for all local governmental agencies. A sphere of influence is a planning boundary outside of an agency’s legal boundary (such as the city limit line) that designates the agency’s probable future boundary and service area. Factors considered in a sphere of influence review focus on the current and future land use, the current and future need and capacity for service, and any relevant communities of interest. With the passage of the CKH Act, spheres for all cities and special districts are reviewed every five years.

The purpose of the sphere of influence is to ensure the provision of efficient services while discouraging urban sprawl and the premature conversion of agricultural and open space lands by preventing overlapping jurisdictions and duplication of services. Commissions cannot tell agencies what their planning goals should be. Rather, on a regional level, LAFCo coordinates the orderly development of a community through reconciling differences between agency plans so that the most efficient urban service arrangements are created for the benefit of area residents and property owners.

3. Municipal Service Reviews

Municipal Service Reviews (MSR) were added to LAFCo mandates with the passage of the CKH Act in 2000. A service review is a comprehensive study designed to better inform LAFCo, local agencies, and the community about the provision of municipal services. Service reviews attempt to capture and analyze information about the governance structures and efficiencies of service providers, and to identify opportunities for greater coordination and cooperation between providers. The service review is a prerequisite to a sphere of influence determination and may also lead a LAFCo to take other actions under its authority.

4. Special District Consolidations

As of July 1, 1994, LAFCo has the authority to initiate proposals that include the dissolution or consolidation of special districts, or the merging of an existing subsidiary district. Prior to initiating such an action, LAFCo must determine that the district's customers would benefit from the proposal through adoption of a sphere of influence or other special study.

5. Out of Agency Service Agreements

Cities and special districts are required to obtain LAFCo's approval prior to entering into contracts with private individuals or organizations to provide services outside of the agency's boundaries.

6. Local Policies

Each LAFCo may adopt local policies to appropriately administer the CKH Act in its county. LAFCo must act in accordance with any locally adopted policies.

LAFCo reviews proposals for the formation of new local governmental agencies and for changes in the organization of existing agencies. There are 58 LAFCOs working with nearly 3,500 governmental agencies (400+ cities, and 3,000+ special districts). Agency boundaries are often unrelated to one another and sometimes overlap at random, often leading to higher service costs to the taxpayer and general confusion regarding service area boundaries. LAFCo decisions form the basis of sustainable regional planning and strive to balance the competing needs in California for efficient services, affordable housing, economic opportunity, and conservation of natural resources.

LAFCo must also consider the effect that any proposal will produce on existing agricultural lands. By guiding development toward vacant urban land and away from agricultural preserves, LAFCo assists with the preservation of our valuable agricultural resources while addressing urban infill.

Urban sprawl can best be described as irregular and disorganized growth occurring without apparent design or plan. This pattern of development is characterized by the inefficient delivery of urban services (police, fire, water, and sanitation) and the unnecessary loss of agricultural resources and open space lands. By discouraging sprawl, LAFCo limits the misuse of land resources and promotes a more efficient system of local governmental agencies and efficiency translates into cost savings for the local residents.

Citizens are welcome and encouraged to attend regular LAFCo meetings and state their views during the public hearings on proposals that are held before commissions. In addition, the meetings provide an excellent opportunity for citizens to familiarize themselves with the growth, development, and inter-jurisdictional issues facing their county.