FRANKTON, Ind. -- A funding shortage could cost the town of Frankton its fire department.

The Frankton Volunteer Fire Department requested an $8,000 increase for its 2010 budget, bringing the department's funding to $30,000 a year, 6News' Jennifer Carmack reported.

But the town council offered a $1,000 increase instead.

Fire Chief Rob Amick and the department's 25 firefighters turned down the contract Monday night, and threatened to pull out of the town if their request for more money is not met.

"We need help … to just keep the lights on, get my guys the equipment they need to do their job safely," he said.

Frankton Town Councilor Howard Sowers said that he would like to see the department get the money they need, but said negotiations are necessary.

"Whatever will be, will be," he said. "We're going to do the best we can. We're tight with money."

Amick said the fire department has not been granted a budget increase since 2002, when its contract grew from $21,000 to $22,000 a year.

Some residents said they want the town to do what it needs to do to keep local fire protection.

"We need a fire department, and I do not understand why the town board and all their little cry babies is not standing behind them," said resident Rita Borum.

If the fire department pulls out, one option would be to contract services with an out of town department. A representative with R&R Insurance in Elwood said that if there is no fire service in town limits, homeowner and business insurance rates will increase between $200 and $400 a year.

Amick said he hopes it doesn't come to that.

"All were asking for is (for them to) help us," he said, "just help us maintain and keep doing what were doing so we can provide the service to the public."

The Frankton Volunteer Fire Department also provides fire service to Lafayette and Jackson townships. Amick said that neither community has presented a contract for 2010, and that Jackson Township has yet to pay for services for this year.