This bill mandates that cities providing fire protection or emergency medical services to other cities or townships under a contract or agreement must establish a dedicated fund for these services, referred to as the fire protection and emergency medical services fund. The fund is to be used exclusively for the costs associated with providing these services to the contracted entities. All funds received from townships and other cities for these services must be credited to this fund, ensuring that the financial resources are allocated specifically for their intended purpose.

Additionally, the bill stipulates that any remaining balance in the fire protection and emergency medical services fund at the end of a fiscal year will carry over for use in future fiscal years. This provision aims to ensure that cities can maintain adequate funding for ongoing fire protection and emergency medical services, thereby enhancing the overall effectiveness and sustainability of these critical services.