Interlocal agreements between public agencies should result in mutual benefits for all of the parties involved. In essence, an interlocal agreement is a collaborative contract between public bodies aiming to provide more efficient, less costly public services. It's likely your community's public entities enter into interlocal agreements annually. Perhaps your town's animal control officer also provides services in neighboring municipalities. That's likely the result of an interlocal agreement.
Purchasing Agreements
Purchasing in volume usually results in lower costs, so towns might enter into cooperative, interlocal purchasing agreements with county, state or other public entities to save money. This agreement gives different public agencies the ability to save money on goods ranging from capital equipment to copy paper. Interlocal agreements might be renewed annually, or revoked by either agency if the arrangement isn't working out.
Shared Services Agreements
One or more municipalities or agencies might make interlocal agreements for shared services. For example, a municipality might arrange for a school board to service its vehicles if the latter operates a garage for school bus repairs and maintenance. Sharing resources save taxpayers money, because the town's governing body pays the school board through the interlocal agreement -- it doesn't have to maintain its own garage and hire employees.