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promotion is 5wo or more grades above the former classifica- tion, the employee will receive an increase of la% of the former salary. In no case will an employee's' base salary be tess than ~he minimum nor more than the maximum for the grade to which promoted unless such variation is authorized by the City Manager. e. Demotions An employees involuntarily or voluntarily demoted ~o a lower grade shall receive compensation according to the grade into which the employee is placed. If an employee is demoted ~o a position one grade below the presen5 classification, the employee will receive a decrease of 5% of the current salary. If the demotion is two grades below the current classifica- tion, the employee will receive a decrease of 10% of the current salary. When the position demoted to is more than two grades lower ~han the present classification, the Director of Personnel will designate the salary, with final written approval of the City Manager or his designee. In no case will the employee retain the same compensation that was received prior Eo the demotion, or be compensated at a rate less than the minimum salary for the grade to which demoted, nor may the maximum compensation for the position be exceeded. f. Transfers "Transfer" shall mean lateral re-asslgnmen5 of an employee from one class to the same class, or to another position of the same grade. Such 5ransfer may occur within or between departments. Any employee transferred ~o another class of employmenu shall receive the same compensation as received prior to the transfer. The transfer activity may not be used to increase or decrease the salary of the transferred employee. No employee may be transferred between departments without the prior approval of the Department Heads involved and the Director of Personnel. Reclassifications Reclassification is a change ~o the established job title or the grade assigned to a particular job title. Position reclassifications are considered a part of the annual budgen process. During the preparation of the budgen, Departmenn Heads may request the Dzrecnor of Personnel to review any position that, due to reorganization or a change in duties, needs no be re-evaluated. Special circumstances may be reviewed and adjusted by the City Manager as is deemed necessary for business operations. When an employee's position ls reclassified, the employee's salary shall be adjusted to the same rate of pay within the new range that equals the salary before reclassification. In -5-