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"Municipality" shall include a city, town, town school district, incorporated school or fire district or incorporated village and all other governmental incorporated units.
(a) Any one or more municipalities may contract with any one or more other municipalities to perform any governmental service, activity, or undertaking which each municipality entering into the contract is authorized by law to perform, provided that the legislative body of each municipality approves the contract, and expenses for such governmental service, activity, or undertaking are included in a municipal budget approved under 17 V.S.A. § 2664 or comparable charter provision.
(b) If the interlocal contract is such that the participating municipalities or their legislative bodies, commissions, boards, officers or voters have the authority to enter into it, by virtue of any charter provision, statute, or the general authority of such municipality or its officers and bodies, then the procedures of this section for approval shall not be exclusive, it being the intent that the powers and procedures set forth herein for interlocal contracts are supplementary to any other powers or procedures heretofore or hereafter possessed by any municipality.
(c) A municipality may submit an interlocal contract to the attorney general prior to approval by its legislative body. If such a contract is submitted, the attorney general shall determine whether the contract is in proper form and compatible with the laws of this state and notify the legislative body of the municipality of his or her determination. In the event that the attorney general does not respond to the request within 30 days after receipt of a copy of the contract, the legislative body may approve the contract.