Sec. 5. (a) Subject to subsections (b) and (c), the legislative body of a unit or fire protection district and the legislative body of at least one (1) other contiguous unit or contiguous fire protection district may establish a fire protection territory for any of the following purposes:
(1) Fire protection, including the capability for extinguishing all fires that might be reasonably expected because of the types of improvements, personal property, and real property within the boundaries of the territory.
(2) Fire prevention, including identification and elimination of all potential and actual sources of fire hazard.
(3) Other purposes or functions related to fire protection and fire prevention.
(b) Not more than one (1) unit or fire protection district within the proposed territory may be designated as the provider unit for the territory.
(c) The boundaries of a territory need not coincide with those of other political subdivisions.