The Board of Trustees shall have the authority, on behalf of the Town, to enter into contractual arrangements within or among other local governments for the performance of any governmental service, activity or undertaking which could be performed by each of the local governments. Any such contract shall set forth fully the purposes, powers, rights, obligations and the responsibilities, financial or otherwise, of the contracting parties. Such contract may be approved by the Board by resolution or by ordinance. (1990 Code)