The commission shall not approve or conditionally approve any proposal that includes an incorporation, unless the commission finds, based on the entire record, that: (a) The proposed incorporation is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001, 56300, 56301, and 56377. (b) It has reviewed the spheres of influence of the affected local agencies and the incorporation is consistent with those spheres of influence. (c) It has reviewed the comprehensive fiscal analysis prepared pursuant to Section 56800 and the Controllerâs report prepared pursuant to Section 56801. (d) It has reviewed the executive officerâs report and recommendation prepared pursuant to Section 56665, and the testimony presented at its public hearing. (e) The proposed city is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following incorporation.
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