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Any monthly rate of pay may be converted into any equivalent rate of pay or to any other time basis when, in the judgment of the City Manager, such a conversion is advisable. 6.4 Salary Advancements Full time regular employees serving in a regularly established position and part- time regular employees serving in classifications represented by the Union shall be advanced from the "A" step to the "B" step in their respective classifications after completion of twelve (12) months' full time satisfactory service, in each of the salary steps for the classification until the top of the range is reached. No salary advance shall be made so as to exceed any maximum rate established in the pay plan for the class to which the advanced employee's position is allocated. Advancements shall not be automatic but shall depend upon increased service value of an employee to the City as determined by his/her Department Head. These include length of service, performance record, special training undertaken, or other pertinent evidence. Upon the approval of the City Manager, an employee who demonstrates exceptional performance based upon the criteria in the preceding sentence may be advanced two salary steps. An employee shall not normally be eligible for advancement in pay until he/she has successfully completed his/her probationary period or any extension thereof, as provided in Section 21. A change in an employee's salary because of promotion or demotion establishes a new salary anniversary date for that employee. Salary range adjustments for a classification will not establish a new salary anniversary date for employees serving in that classification. 6.5 Salary Step When Salary Ranee is Increased Whenever the monthly schedule of compensation for a class is revised, each incumbent in a position to which the revised schedule applies shall be entitled to the step in the revised range which corresponds to the step held by him/her in the previous range. 6.6 Salary Step After Promotion or Demotion When an employee is promoted from a position in one class to a position in a higher class, he/she shall receive the minimum rate for the higher class; provided, however, that such rate is at least five percent (5%) above his/her current wage rate. When an employee is demoted, whether such demotion is voluntary or otherwise, that employee's compensation shall be adjusted to the salary prescribed for the class to which he/she is demoted. The specific rate of pay within the range shall be determined by the City Manager, whose decision shall be final; provided, however, that the employee's rate of pay shall not be set at a lower rate than he/she would have received had he/she remained in the lower class. -10 -