Regulation Source - 22 PA Code §131.59 - In instances where a library shares utilities, supplies, janitorial or other services with a municipality or some other agency, without paying for them, the value of these items may be calculated and included as part of local financial effort.
We interpret the phrase "other agency" to be an agency of government. The Water Authority would be considered an "other agency" here since a water authority is established by/part of a local government. In your scenario, you could use the Verification of Estimated Shared Costs form (VESC). This form would need to be completed by the Water Authority itself (not your municipality) given that the Water Authority is the agency that is providing the service. The VESC form and the related amounts listed on the form, would be entered into Section O Verification of Estimated Costs on the Annual Report.
