Progress begins as signs of revenue stability filter in.

It is the toughest restructuring the city will have to undergo – finding savings and revenue that will close a $3.55 million council-identified funding gap.

This week city officials have been scrambling to find ways to save money without cutting employees.

Thus far, administration officials are trying to find savings that equal 15 full-time employee positions.

“It’s not as easy as identifying 15 people and laying them off,” said City Administrator Mark Dombroski.

Dombroski has been working with both the city employees union and the police union to find ways to reduce work schedules, but said that many layoffs would come from the planning and public works departments.

“Clearly the council directed us to stop all long-range planning,” Dombroski said. “So that will be reduced in some way.”

But staging the cuts come as there are signs the city’s dire financial straits are beginning to level off.

The first three months of revenue in 2009 have exceeded monthly predictions made by Dombroski in January.

According to Finance Director Elray Konkel, the city is seeing an increase of $100,000-$200,000 in revenue above those predictions.

Home sales also hit a four-month high last month, with 17 sales, and one home worth more than $6 million also selling.

There are 26 pending home sales, which could mean another uptick in April.

Coupled with that, the city’s bi-annual property tax incomes will be received this month.

According to Dombroski, the first order of business when property tax comes in will be to pay off a $600,000 inter-fund loan from the utilities.

“It’s not necessarily a trend but it’s a bright spot,” Dombroski said. “I think we are finding a bottom. I don’t think it will get worse.”