(a) A community that meets the following standards may incorporate as a first class or home rule city:
(1) the community has 400 or more permanent residents;
(2) the boundaries of the proposed city include all areas necessary to provide municipal services on an efficient scale;
(3) the economy of the community includes the human and financial resources necessary to provide municipal services; in considering the economy of the community, the Local Boundary Commission shall consider property values, economic base, personal income, resource and commercial development, anticipated functions, and the expenses and income of the proposed city, including the ability of the community to generate local revenue;
(4) the population of the community is stable enough to support city government;
(5) there is a demonstrated need for city government.
(b) A community that meets all the standards under (a) of this section except (a)(1) may incorporate as a second class city.
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