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SECTION 4. COMPENSATION PLAN The Compensation Plan shall consist of the Salary Schedule, the alphabetical listing of job titles with assigned grades, and the following policies that govern the administration of the Compensation Plan. The City Manager may authorize variations in the application of this section and may make adjustments and modifications as needed. The grades assigned in the alphabetical listing of job titles designate the salary range for each position with due respect to (1) the salary ranges for other classes, (2) the relative difficulty, responsibility, and characteristic duties of positions in the class, (3) the minimum qualifications required, (4) the prevailing rate paid for similar employment outside the City, and (5) any other factors that may properly be considered to have a bearing upon the fairness or adequacy ofthe range. The Salary Schedule shall contain a series of salary ranges, each range having a minimum, midpoint and maximum salary. The Compensation Plan shall be governed by the following policies: a. Salaries and Pay Schedules for 2006-2007 In fiscal year 2006, effective January 1, 2006, salaries for general employees and sworn personnel were increased by 2.5% of the employees' base rate as one-half of the 5% general wage increase recommended for fiscal year 2007. In fiscal year 2007, effective July 1, 2006, salaries for general employees and sworn personnel will be increased by 2.5% of the employees' base rate. No employees' salary will be increased beyond the maximum range of their grade. b. Public Safety - Sworn Personnel New sworn Fire and Police Personnel will be hired at the minimum rate as a trainee unless they have been approved otherwise due to previously obtained certification. An employee's base salary may not be less than the minimum or more than the maximum for the position. 5