(1) General. Classification and pay plans shall be established by the Municipal Council.

(2) Pay Ranges. Pay ranges shall be established by the pay plan for each class of position in order to give administrative flexibility in recognizing individual differences between positions and classifications, in providing employee incentives, in rewarding employees for meritorious service, and in meeting emergency conditions requiring pay adjustments.

(3) Initial Placement in Pay Range. The department head shall authorize the employee’s initial placement in the assigned pay range based on the employee’s experience and qualifications and in accordance with Provo City Personnel Policy. If a former employee is reappointed to a class in which the employee was previously employed, the appointment may be made at the rate of pay which the employee had been receiving upon termination of services.

(4) Annual Advancement. Upon satisfactory completion of probationary status, an employee shall be advanced one step in the pay range for the class in which employed, and shall be advanced one step within such class annually thereafter based on merit; provided, however, that no employee shall be eligible for such annual advance unless and until satisfactory performance ratings are obtained.