LAFCO is responsible for reviewing and approving proposed jurisdictional boundary changes, including annexations and detachments of territory to and/or from cities and special districts, incorporations of new cities, formations of new special districts, and consolidations, mergers, and dissolutions of existing districts. In addition, LAFCO must review and approve contractual service agreements, determine spheres of influence for each city and district, and may initiate proposals involving district consolidation, dissolution, establishment of subsidiary districts, mergers, and reorganizations (combinations of these jurisdictional changes).
With the passage of new legislation in 2000, LAFCOs also were charged with the responsibility to conduct municipal service reviews. A Municipal Service Review (MSR) is a study designed to determine the adequacy of governmental services being provided in the region or sub-region. Developing and updating spheres of influence and performing service reviews for each city and special district within the county may be used by LAFCO, other governmental agencies, and the public to better understand and improve service conditions.