Three IN Fire Departments Get Green Light from State to Merge

ANDERSON — After a delay caused by a new property tax law, the expanded South Madison Fire Territory now has approval to move ahead.

Starting Jan. 1 the three fire departments serving the southern townships of Madison County will be merged into a single department.

The Lapel/Stony Creek and Markleville/ Adams departments will be merged with the South Madison Fire Territory, which already serves Fall Creek and Green townships as well as the towns of Pendleton and Ingalls.

The merger was approved this year by officials from each community involved, but it was delayed after the Indiana Legislature passed into law a bill touted by proponents as a tax relief measure. Part of that bill capped property taxes for local units of government at 40 cents per $100 of assessed value.

The entities comprising the expanded South Madison Fire Territory had planned to charge 80 cents per $100 of assessed value.

But local fire territory officials recently got a green light from the Department of Local Government Finance to move forward with the fire territory merger. The DLGF reasoned that the fire territory was not beholden to the new law since the property tax levy had been set before the new limit on tax rates was voted into law.

“We were trying to figure out the language in the legislation,” Chris Nodine, chief of the South Madison Fire Territory, said Monday. “Because we were already established, the legal opinion from the Indiana Department of Local Government Finance approved the merger.”

Nodine said the department is planning to hire up to 30 full-time firefighters, which would allow full staffing of stations in Pendleton, Lapel and Markleville.

He said the merger would result in faster response times and increased operational efficiency.

“The merger marks an important step forward for public safety in our community,” the fire chief said in announcing the merger. “By uniting our departments, we are ensuring that our firefighters have the tools, training and support needed to protect lives and property at the highest level.”

The Friday announcement said fire stations would remain operational and that firefighters would “continue to serve their communities as part of a larger, unified department.”

Earlier this year, the town of Pendleton, along with four townships and three other towns, had agreed to a tax levy of 80 cents for every $100 of assessed value.

According to a public notice, the budget for 2026 would be $12.5 million, increasing to $14.7 million in 2027 and $17.7 million in 2028.

The estimated property tax rate is 67 cents in 2026, 75 cents in 2027 and 87 cents in 2028.

The cost for a homeowner of property valued at $100,000 is estimated at $39.71 in 2026.

Property owners currently at the 1% cap for property taxes would see a minimal impact.

Stony Creek Township, Lapel, Adams Township and Markleville will continue to own the existing fire station and equipment; South Madison would provide the staffing and pay the operating costs.

Each governmental unit will have appointments to a nine-member board that will oversee fire protection territory operations.

The member government agencies have already created a new property tax of 3 cents per $100 of assessed valuation to fund fire equipment.

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