Vt. Stat. Ann. tit. 24, § 4932

The State and all departments, boards, bureaus, commissions, and other agencies thereof are hereby authorized and empowered, within the limitations of the constitution, to furnish and make available services, assistance, funds, property, and other incentives to any two or more municipalities participating in a union municipal district or interlocal contract so as to effectuate economy or simplification in the administration or financing thereof.