Whiting and Hammond are in negotiations to consolidate the Whiting Fire Department and have neighboring Hammond provide the city's fire protection and emergency services.

If the agreement is reached, the earliest the Hammond Fire Department could provide services for Whiting is Jan. 1, after the current labor agreement Whiting has with its 15 fire and emergency services employees expires.

Both cities hope for a combined savings of up to $4 million on investments in capital and up to $1.5 million annually on operational costs, Whiting Mayor Joe Stahura said.

Stahura said seeking the consolidation agreement was an unintended consequence of the property tax caps going into effect this year. Stahura said he is confident that residents would receive the same level of service they are used to.

"Pressure on our budget is forcing us to look for ways to reduce our costs," Stahura said. "It's not easy to make wholesale changes unless there's a solution. This happens to be a project that fits the bill."

Hammond Mayor Thomas McDermott Jr. said talks still are at an early stage, and the two communities probably are months away from finalizing a deal.

"We have a special relationship with each other," McDermott said. "We're sister cities and the mayors have a great relationship and Hammond is very receptive to help Whiting."

McDermott said the city has to work out issues with covering a larger territory and how to handle whether to increase manpower while under a hiring freeze.

Stahura said unions haven't had a chance to respond to the talks, but he insisted he would meet with leaders regularly and eventually they would be a part of the negotiation process. Although the decision is an emotional one, Stahura said one of his main concerns is that the employees are covered.

Hammond's Robertsdale neighborhood fire station in the 2200 block of Calumet Avenue and the Whiting fire station are less than two miles apart and share a common ZIP code. Hammond Mayor Thomas McDermott Jr. said firefighters probably would be housed at the Whiting station on Schrage Avenue with the agreement.

As the deal progresses, Stahura said the city will have sessions for public comment.

Michael Griffin, clerk-treasurer for Highland, said many fire departments in the area have mutual aid agreements, but the deal the two cities are trying to pull off is unique in Lake County. He said although both communities may find it efficient to make the deal, organizational concerns on both sides can hinder progress.

Highland and Munster attempted to create a fire territory patrol agreement in 2005, but the measure eventually was met with resistance from both sides and it ended without either council adopting the agreement, Griffin said. The agreement is different from the Whiting-Hammond proposal because both towns were going to share firefighters and equipment.