Contracts may be made by the Board of Library trustees with any other boards of trustees of any other free public libraries, or with any other city, school corporation, township, or county, or with the trustees of any County library district for the use of the Library by their respective residents. Such contracts shall provide for the rate of tax to be levied during the period thereof. They may, by mutual consent of the contracting parties, be terminated at any time. They may also be terminated by a majority of the electors, represented by either of the contracting parties, voting on a proposition to terminate which shall be submitted by the governing body upon a written petition of electors in a number not less than five percent (5%) of those who voted in the area for Governor at the last general election. The proposition may be submitted at any election provided by law which covers the area of that seeking to terminate the contract. The petition shall be presented to the governing body not less than forty (40) days before the election at which the question is to be submitted.