Money distributed from the fire protection fund to a municipality or to a county fire district:

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A. may be expended only for the:

(1)     maintenance of its fire department;

(2)     purchase or refinance of land for its fire stations and substations;

(3)     purchase, refinance, construction, maintenance, repair and operation of its fire stations and substations;

(4)     purchase or refinance of fire apparatus and equipment;

(5)     payment of insurance premiums on fire stations, substations, fire apparatus and equipment and insurance premiums for injuries or deaths of firefighters as otherwise provided by law;

and (6)     payment of fire department emergency medical services, except salaries;

(7)     payment of firefighters’ attendance at fire schools and conventions approved by the marshal;

to:

B. shall not, without approval by the marshal, be expended for any purpose related (1)     its water supply systems or the improvement or construction of those systems;

(2)     the purchase, rental, installation or maintenance of fire hydrants; or

(3)     any other appurtenance related to the distribution or use of water from its water supply system; and

C. shall not be expended for any public, private or other water system used for potable water supply.