What is the difference between a Memorandum of Understanding and an Intermunicipal Agreement?
Memoranda of Understanding (MOU) are most commonly used between two state agencies, which cannot “contract” with one other. At least two parties are needed to form a contract and state agencies are considered to be one entity – the State. For this purpose, MOUs essentially take the place of contracts in order for state agencies to memorialize agreements with one another. State agencies may, however, contract with municipalities or decide to use an MOU with a municipality when appropriate. Intermunicipal agreements (IMA) are written agreements among two or more units of local government (which may also contract with one another). There is not really a difference between an IMA and an MOU. Both are written agreements between municipalities to jointly undertake an activity that each participating municipality has the power to undertake on its own.
