LAFCOs are responsible for reviewing and approving proposed boundary changes for most public agencies, including annexations and detachments of territory to 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, LAFCOs must review and approve contractual service agreements, determine spheres of influence (plans that show future service areas and boundaries) for each city and district, and may initiate proposals involving district consolidation and dissolution.