The 3-1 vote on Wednesday was prompted by a request by one member of the Finance Committee to deflate the town administrator's salary line item from $95,000 to $80,000 because the member feared the capped salary would only limit the hiring process.
The city is looking to give about $40,000 worth of raises to non-union employees.
On Monday, the City Council's Ordinance and Rules Committee approved changes to the pay scales of both exempt employees and management, both of which are not covered by collective bargaining.
Williamstown is not at the point where people are calling for the defeat of the school budget.
In fact, last spring, the loudest voices prior to annual town meeting were calling for more spending on public education.
The city is finishing out the fiscal year under budget and with the anticipation of free cash in its coffers.
Mayor Richard Alcombight on Tuesday night presented the City Council with some $615,815.51 in internal transfers to close out fiscal 2016, required by the end of this week.