If approved in the fiscal year budget, step raises for all eligible employees shall be considered based upon employee performance appraisal results. Employees who meet or exceed expectations shall receive an increase of two steps (maximum step 20) or approximately 3 percent of base pay. Employees who fail to meet or exceed expectations shall not receive a step increase in the year the employee fails to meet or exceed expectations. Step raises shall be considered on the employee's anniversary date of hire each year and any step increases shall be effective the first full pay period after the employee's anniversary date of hire. Any employee that has received final disciplinary action in the form of two or more written reprimands, a suspension without pay or an involuntary demotion in the preceding year measured from the employee's anniversary date of hire, or from the employee's last previous increase in base pay pursuant to the pay plan, whichever is longer, shall not be entitled or eligible to receive any pay increases provided for herein for that year; but shall remain eligible for cost of living adjustment (COLA) increase.