As funding dwindles for nonprofit organizations, how much financial assistance should the Sterling City Council give to groups that help Sterling residents? And as the city faces an uncertain funding picture on the federal and state level, how much can the city give?

Those were questions the Sterling City Council began to grapple with at the city’s budget hearing Monday. The council will vote on the proposed city budget for fiscal 2027 at its April 20 council meeting.

The council heard a presentation from Emily Hammer, executive director of the Whiteside County Senior Center and Whiteside County Public Transportation, in which Hammer told the council that when Whiteside County Public Transportation annexes to the Reagan Mass Transit District later this year, the Senior Center expects to lose revenue.

“We have applied for more funding from our grants that we get every year and from donors, who are very generous, so we are hoping that we can continue to do the amazing things that we do,” Hammer said.

After Hammer’s presentation, Mayor Diana Merdian convened the budget hearing and Retha Elston, 1st Ward alderwoman, asked city manager Scott Shumard if the city could help the senior center financially later in the year.

“It’s a policy choice on your part,” Shumard said.

“It might be a policy choice on us but is it something that, monetarily, we can entertain?” Alderman Allen Przysucha asked Shumard.

“I would say it like this - don’t make the decision in a vacuum, because this is going to be one request,” Shumard said.

“And we might get more?” Elston said.

“Right,” Shumard said.

Josh Johnson, 3rd Ward alderman, said he would like to learn more about the budget implications of the senior center losing the transportation services. Those services will not cease but instead will be administered by the Reagan Mass Transit District.

“The services are still going to be there, it’s just a different company doing the services,” Johnson said.

Johnson said he has no problem with the city helping the center.

“I absolutely think, if they need help, then we can step in as the city and I have no problem with that. But I would love to see where they need the help and what budget implications happen because of that and what they are doing to make their own corrective action before we step in,” Johnson said.

“For the benefit of the taxpayers and the users of the center, we have the responsibility of doing our due diligence,” said Jim Wise, alderman-at-large.

Alderman Joe Strabala-Bright said he expects the council will get more funding requests from nonprofits as federal and state funds and grants dry up.

“I think we are going to be seeing more and more of this and we have limited funds, but I would like to see us help where we can,” Strabala-Bright said.

Shumard said the city’s coffers will suffer from those same funding uncertainties and outright cuts.

“We are going to suffer from the same consequences as the nonprofits are. If oil stays at $113 a barrel, it’s going to cost us utility wise. It’s going to cost us construction wise because oil is a big contributor to the cost of asphalt. We’re going to get pinched as much as anybody else is,” Shumard said.

In addition, a slowing economy also could impact the city’s tax revenues.

“If you get a slowdown of the economy, that’s a slowdown of income tax coming in, a slowing of the sales tax coming in. It will all just start snowballing from there. It’s hard to make that prediction 12 months out, but, if you’re asking me right now, I’d say it’s not looking promising,” Shumard said.

Shumard added that in the case of nonprofits, like the Whiteside County Senior Center that serves the wider area, other communities the nonprofit serves should also be expected to contribute.

“It’s a county-wide thing so that is one of the things where if you get some of the other communities on board, then we’re on board type of thing. It doesn’t just become the Sterling show and everybody else, for lack of a better word, getting a free ride,” Shumard said.

Johnson said he doesn’t see the council’s primary purpose as that of a charitable foundation board deciding which groups get funds.

“I would hate for this council to be a foundation board, where we dictate who gets money. I don’t know that that’s our purpose,” Johnson said.

Shumard told the council that November would be a good time to start hearing any outside funding requests from nonprofit groups.