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The personnel policies and regulations provided herein shall not apply to elected officials, persons appointed to serve on boards and commissions, the Municipal judge, or the employees of the Medford Water Commission. All other employees of the city are divided into the following categories:

(1) The executive-professional service shall include the city manager, supervisory and confidential employees as defined in ORS 243.650.

(2) The classified service shall include all other city employees not in the executive-professional service.