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• KLG: ar <br /> 10/15/78 <br /> reimbursement is not an increase in salary, no salary range <br /> applicable to any of the affected employees shall be changed <br /> or deemed to have been changed by reason of such reimburse- <br /> ment, no benefits payable to the affected employees, or any <br /> of them, which are calculated on the basis of salary shall <br /> be increased hereby, and because the City is reimbursing <br /> employees for monies expended or to be expended by the, the <br /> City will not treat these payments as ordinary income and, <br /> thus, will not withhold federal or state income tax from <br /> said payments . <br /> On July 1, 1979, the City's obligation to make such <br /> reimbursement shall discontinue; provided, however, that as <br /> a substitute therefor, the base salary of each affected <br /> employee shall automatically be increased by 5% over and <br /> above current base salary, unless to do so will expose City <br /> to loss of moneys from the State of California, in which event <br /> the parties shall agree on a payment schedule which will <br /> continue such reimbursement to the affected employees until <br /> receipt of such moneys is no longer jeopardized, whereupon <br /> City's said obligation shall discontinue. This conversion <br /> shall in no way operate to deprive Association of its lawful <br /> rights to request improvements in compensation benefits, including <br /> -4- <br />