What is an "Interlocal Agreement"?

An "Interlocal Agreement" is a formal arrangement made between two or more governmental entities to cooperate and share resources or services. This type of agreement allows municipalities to collaborate on various functions, such as public safety, maintenance of facilities, or transportation services, leading to increased efficiency and reduced costs. This cooperative approach is particularly valuable in local government settings where taxpayer resources are limited.

The significance of Interlocal Agreements lies in their ability to facilitate shared services, which can enhance service delivery, minimize redundancy, and ultimately improve overall governance. Such agreements often address shared responsibilities and outline the terms under which the collaborating entities will operate, ensuring clear expectations and accountability.

In contrast, the other options provided do not accurately describe the nature of Interlocal Agreements. They focus on concepts like funding, donations, or legal representation, which, while essential, do not capture the essence of collaboration between governmental agencies that the term "Interlocal Agreement" embodies. Thus, the correct choice effectively reflects the purpose and function of Interlocal Agreements in the realm of municipal governance.