(a) The treasurer shall establish or cause to be established in the county treasury a district fire protection fund for each district in which a financial charge is then being levied and collected, and shall maintain such district fire protection fund, or cause it to be maintained, so long as such district exists and such financial charge is levied and collected therein. The proceeds derived for the levy and collection of a financial charge within any district and paid over to the treasurer pursuant to Section 45-41-141.08 shall be deposited by him or her in the district fire protection fund for such district. Moneys on deposit in each district fire protection fund shall be kept separate and apart from other county revenues or funds and shall be used or disbursed, by or upon order of the commission, solely to pay:

(1) Expenses of providing fire protection, fire prevention, and related services and facilities within the district in which such financial charge is so levied and collected, including the employment of paid firefighters and

(2) Expenses of providing emergency medical services,

(3) Matching funds for federal grants,

(4) Expenses of levying and collecting the financial charge within such district, it being understood that for purposes of this section and applicable provisions of the authorizing amendment,

a. Costs incurred in connection with conducting any election held in such district under or pursuant to the authorizing amendment and this part (or other applicable law or laws, if any) shall be deemed expenses of levying and collecting such financial charge,

b. Costs incurred in connection with the preparation, advertisement, or enactment of this part shall be deemed expenses of providing fire protection, fire prevention, and related services or facilities within such district, and

c. Any such expenses or costs paid by the county in anticipation of reimbursement therefor out of the proceeds of such financial charge shall be deemed expenses of providing fire protection, fire prevention, and related services and facilities or expenses of levying and collecting such financial charge (as the case may be), for which the county may be reimbursed out of the district fire protection fund provided, in the case of any such costs referred to in paragraph b. of subdivision (4) of subsection (a), that the county may be reimbursed therefor out of any district fire protection funds then in existence and in amounts prorated among such funds in such manner as the commission may reasonably determine.

(b) Specifically, and without limiting the generality of the foregoing, the commission may appropriate or disburse moneys on deposit in any district fire protection fund to or for the benefit of any volunteer fire department operating in the district for which such fund has been established and maintained; and such department shall use such moneys for payment of expenses incurred by it in providing fire protection, fire prevention, and related services and facilities within such district, it being expressly understood, however, that nothing contained herein shall be construed to prohibit any volunteer fire department whose expenses have been, are being or are to be paid wholly or partly with proceeds from any financial charge deposited in a district fire protection fund from responding to calls for fire fighting assistance in counties adjacent to the county or in districts other than the district for which such fund has been established and maintained. Any unappropriated and unexpended balance in a district fire protection fund at the end of any fiscal year shall remain therein for appropriation and use during any fiscal year thereafter.

(c) The commission, to the extent permitted by Amendment 392, may enter into an agreement or agreements with any volunteer fire department with respect to the fire protection, fire prevention, and related services and facilities provided or to be provided by such volunteer fire department within one or more districts.