Worcester is giving City Manager Eric Batista a new three-year contract that could gradually raise his salary to more than $300,000 and will give him a $1,500 monthly stipend for his personal car.

A majority of city councilors approved the agreement Tuesday night following two hours of negotiation with Batista. Councilors made several changes to the proposed contract after residents criticized it during a council meeting in November.

Batista, who’s responsible for overseeing municipal operations in New England’s second largest city, had a budgeted salary of $283,254 for the fiscal year 2023. The new contract will raise his pay 4.5% by the end of December. His next two annual pay raises will be at most 3%, and could result in his salary increasing to as much as $314,000.

“The city manager’s responsible for a billion dollar budget,” Councilor Morris Bergman said during Tuesday’s meeting. “I do think the city manager’s deserving of a higher salary.”

The changes to the contract included shaving Batista’s severance pay from the proposed 12 months to nine. Councilors also eliminated a clause requiring the city to pay Batista $10,000 more than the next-highest paid city worker, including employees of the Worcester school district.

There had been concerns the provision could violate the state’s Equal Pay Act since it would automatically give Batista a higher contract than Worcester Public Schools Superintendent Rachel Monárrez.

While Batista’s salary increase for this year is set at 4.5%, his raises in 2025 and 2026 will align with pay bumps that other city workers receive. Batista’s pay will go up as much as the highest percentage increase awarded to any city employee collective bargaining unit, to a maximum of 3%.

Several councilors still opposed other aspects of the contract. Thu Nguyen and Khrystian King questioned why Batista needed the $1,500 monthly payment to cover the costs of operating, maintaining and insuring his car. King noted that in the past city managers have used a city-supplied vehicle instead of receiving a stipend.

“If he uses his personal car, he should get the Massachusetts set amount, which is 67 cents per mile,” added Nguyen, who voted against the contract.

George Russell was the only other councilor to oppose the agreement. He said he supported Batista but thought the terms of the new contract should be similar to those of his previous one.

The agreement comes as the city deals with the fallout of a U.S. Department of Justice investigation that found Worcester police officers have repeatedly used excessive force and engaged in sexual misconduct. Batista oversees the police department, and in response to the DOJ findings, said he’s committed to restoring the public’s trust in it.

During Tuesday’s meeting, King noted that this was a particularly challenging time for the city. He pushed for the council to create a process to more effectively evaluate the city manager’s performance in the future.

“I think it’s important that we have a council that has expectations,” King said.