"Hagpa" was later renamed "San Francisco" in honor of Deputy District Governor Francisco Cataylo. In early 1955, the first local government was established as San Francisco was created as a Municipal District. Francisca Tesoro Samson was appointed as the first Municipal District Mayor by then Provincial Governor Felixberto Dagani. On June 21, 1959, through "Republic Act No. 2518", San Francisco was officially created into a regular municipality of the Province of Agusan. In the same year, the first local officials of the municipality were elected with Atty. Paquito Fuentes as the first elected municipal mayor, who served for three consecutive terms of office. He was succeeded by his vice mayor, Cresencio Ausmolo who stayed in office by operation of law during the latter half-portion of his last term.