VALPARAISO -- With Gov. Mitch Daniels trying to eliminate township governments, the city and Center Township are looking at preserving their agreement for firefighting services.

On Thursday, the Board of Works and Safety approved a contract with Umbaugh and Associates of Indianapolis to explore creating a fire territory.

Center Township pays Valparaiso $885,000 annually for fire and ambulance services, said Fire Chief David Nondorf.

By creating a fire territory, that annual contract would be replaced by a consolidation of the area as far as emergency services go.

The appropriate taxes from unincorporated Center Township would go directly to the fire department, and the department would serve the city and township directly.

Residents wouldn't see any change, Nondorf said.

There could also be cost savings from efficiencies in combining to a larger operation, City Attorney David Hollenbeck said.

The impact isn't certain yet.

Umbaugh would investigate the financial impact as a first step in the contract, which is not to exceed $25,000.

"If they see it's not going to work, the contract is ended," Hollenbeck said.

Nondorf said the financial impact study should be done by mid-February, and if it's positive, Umbaugh will prepare budget documents and present its findings to the Department of Local Government Financing.

Under state law, fire territories must be established between Jan. 1 and April 1 or wait until the next year.

Although this will formalize a partnership between Valparaiso and Center Township, the agreement creating fire territory can be ended at any time.

Nondorf said that both the city and township have been looking at creating a fire territory for years.

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