​​​What is a LAFCo?​​ ​​

The end of World War II saw California experiencing a tremendous population increase, which resulted in the sporadic formation of cities and special service districts. The results of this development boom became evident as more of California's agricultural land was converted to urban uses. Premature and unplanned development created inefficient, expensive systems of delivering public services using various small units of local government.

Governor Edmund G. Brown, Sr. responded to this problem in 1959 by appointing the Commission on Metropolitan Area Problems. The Commission's charge was to study and make recommendations on the "misuse of land resources" and the growing complexity of overlapping, local governmental jurisdictions. The Commission's recommendations on local governmental reorganization were introduced in the Legislature in 1963, resulting in the creation of a Local Agency Formation Commission, or "LAFCo," to operate in each county.

LAFCos are state-mandated quasi-judicial countywide Commissions whose purview is to oversee boundary changes of cities and special districts, the formation of new agencies, including the incorporation of new cities and districts, and the consolidation or reorganization of special districts and or cities.

On September 26, 2000, Governor Gray Davis signed into law AB 2838 (Chapter 761, Statutes of 2000), authored by then Assembly Speaker Robert M. Hertzberg. This legislation, titled the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, marked the most significant reform to local government reorganization law since the 1963 statute that created local agency formation commissions (LAFCos) in each county. The legislation resulted from the recommendations of the Commission on Local Governance for the 21st Century, created by legislation enacted in 1997. The Commission's recommendations were included in its final report, titled “Growth Within Bounds," issued on January 20, 2000. The Commission ceased to exist on July 1, 2000, pursuant to a statutory sunset provision.

The broad goals of the Commission's directive are to ensure the orderly formation of local governmental agencies, to preserve agricultural and open space lands, and to discourage urban sprawl. Commissions must, by law, create Municipal Service Reviews and Update Spheres of Influence for each independent local governmental jurisdiction within their countywide jurisdiction.

Sacramento LAFCo joins with LAFCo's across the state in working diligently to comply with the new statute and in doing so, accepting more responsibility towards overseeing orderly provision of local government services.

Powers and Duties​

The three acts which originally empowered LAFCo - the Knox-Nisbet Act, District Reorganization Act of 1965, and the Municipal Organization Act - were combined in 1985 into one single legislative act: The Act was updated and expanded, and is now known as the Cortese-Knox-Hertzberg Act of 2000, which can be found at California Government Code Section 56000, et. seq.

In meeting its responsibility, LAFCo is required "to review and approve or disapprove, with or without amendments, wholly, partially, or conditionally, proposals for": 

Cities​

• the incorporation of cities;
• the annexation of territory to a city;
• the exclusion of territory from a city;
• the disincorporation of a city;
• the consolidation of two or more cities; 

Districts

• the formation of special districts;
• the annexation of territory to a district;
• detachments;
• dissolutions;
• mergers;
• reorganizations;
• consolidations;
• latent powers (when a commission has special district representation)​
  

Factors LAFCo Must Consider in Reviewing Proposals​

• Population, population density; land area and land use; per capita assessed valuation; topography, natural boundaries, and drainage basins; proximity to other populated areas, the likelihood of significant growth in the area and in adjacent incorporated and unincorporated areas during the next 10 years.
• Need for organized community services; the present cost and adequacy of governmental services and controls in the area; probable future needs for such services and controls; probable effect of the proposed incorporation, formation, annexation, or exclusion and of alternative courses of action on the cost and adequacy of services and controls in the area and adjacent areas.
• The effect of the proposed action and of alternative actions on adjacent areas, on mutual social and economic interests, and on the local governmental structure of the county.
• Conformity of the proposal and its effects with commission policies on providing planned, orderly, efficient patterns of urban development and with state policies and priorities on conversion of open-space lands to other uses.
• Effect of the proposal on maintaining the physical and economic integrity of lands in an agricultural preserve in open space uses.
• The definiteness and certainty of the boundaries of the territory, the nonconformance of proposed boundaries with lines of assessment or ownership, the creation of islands or corridors of unincorporated territory, and other similar matters affecting the proposed boundaries.
• Conformity with appropriate city or county general and specific plans.
• The "sphere of influence" or any local agency which may be applicable to the proposal being reviewed.

Spheres of Influence​

A "sphere of influence" is a plan for the probable ultimate physical boundaries and service area of a local governmental agency, as determined by LAFCo. The commission must also periodically review and update each plan. Factors the commission must consider in determining the sphere of influence of each governmental agency are: 

• The maximum possible service area of the agency is based upon present and possible service capabilities of the agency.
• The range of services the agency is providing or could provide.
• The projected future population growth of the area.
• The type of development occurring or planned for the area, including, but not limited to, residential, commercial, and industrial development.
• The present and probable future service needs of the area.
• Local governmental agencies presently providing services to such area and the present level, range and adequacy of services provided by such existing local governmental agencies.
• The existence of social and economic interdependence and interaction between the areas within the boundaries of a local governmental agency and the area which surrounds it and which could be considered within the agency's sphere of influence. 
• The existence of agricultural preserves in the area which could be considered within the agency's sphere of influence and the effect on maintaining the physical and economic integrity of such preserves in the event that such preserves are within a sphere of influence of a local governmental agency.

Additional Responsibilities​​​

• In addition to its regulatory and spheres responsibilities, the statues authorize LAFCo to initiate and make studies of existing governmental agencies. Such studies shall include but not be limited to inventorying such agencies and determining their maximum service area and service capabilities.
• In the event of a city incorporation or district formation, LAFCo has the responsibility for determining the amount of property tax to be transferred to the new agency, based on a formula provided in the Government Code.
• LAFCo is also responsible - as are all public agencies - for ensuring that its actions comply with the provisions of the California Environmental Quality Act (CEQA). All LAFCo proposals are reviewed for potential environmental impacts prior to commission consideration.

 Staff

​​​José C. Henríquez, Executive Officer​

Desirae Fox, Policy Analyst 

Kristi Grabow​, Policy Analyst

Joshua Nelson​, Commission Counsel 

Given the limited number of LAFCo Staff, appointments are recommended. Contact the office at (916)874-6458 or by e-mail​ to schedule an appointment.

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