LAFCO follows an ordered process with three steps:

Step 1:  Service Review

Conduct Service Reviews

Service Reviews aim to capture and analyze information about service providers’ governance structures and efficiencies. Service Reviews help identify opportunities for greater coordination and cooperation, including review and analysis of: 

• Current service area and services provided 
• Probable future service needs based on growth 
• Infrastructure capabilities and deficiencies 
• Financial ability to provide services 
• Adjacent disadvantaged communities and service needs 
• Effectiveness of governmental structure and alternatives 
• Any other matter related to effective or efficient service delivery as required by Commission policy

Step 2: Sphere's of Influence

Make Sphere of Influence Determinations

LAFCO develops and determines the Sphere of Influence (SOI) of each city and special district within the county to promote logical and orderly development, including: 

• Designating Annexation Areas to show where and when development is expected to occur in the near (0-5 years) and long (>5 years) term 
• Identifying Areas of Interest outside an SOI where land use decisions or other governmental actions may directly or indirectly impact an agency 
• Amending an SOI to expand to include additional areas of probable future growth and extension of services, or contract to remove areas where future growth or extension of services is not feasible 
• Updating to reaffirm existing SOI 
• Designating a Zero Sphere as the first step towards dissolution and consolidation with another agency

Step 3: LAFCO Actions

Take LAFCO Actions

When a city or agency’s Service Review and SOI are both up-todate, LAFCO can take requested actions such as: 

• Annexations or detachments 
• Reorganizations (consolidations, mergers, concurrent annexation/dissolution) 
• Activation of latent powers or divestiture of powers 
• Dissolution of a Special District 
• Disincorporation of a City 
• Out of Area Service Agreements 
• City Incorporations 
• District Formation