Municipal Service Reviews (MSRs) and
Sphere of Influence (SOI) Studies

A Municipal Service Review (MSR) is a study conducted by the Local Agency Formation Commission (LAFCo) to evaluate how effectively cities and special districts deliver services. Required by Government Code Section 56430, MSRs analyze service capacity, financing, growth, and governance to promote efficient and sustainable public services.

Findings from an MSR guide updates to an agency’s Sphere of Influence (SOI), defined under Government Code Section 56425 as the area LAFCo determines to be the agency’s probable future boundary and service area. Together, MSRs and SOIs help LAFCo plan for orderly growth, protect open space and agricultural lands, and support accountable local governance.