The Cambridge City Council voted last week to extend the city manager's contract for two more years and to draw up a resolution that will raise his yearly pay $12,000.

The council unanimously praised city Manager Robert W. Healy for his accomplishments in the position which he has held since 1981. Only one city councilor, David E. Sullivan, voted against the contract and possible pay raise which will bring his salary to $95,000.

The extension, which assures Healy pay until 1990, was approved after the council met with Healy earlier this month to review the city manager's performance and to negotiate for the new contract.

City Councilor Alice K. Wolf said the extension was necessary to "insulate" Healy from political pressures and concern in his job. She said that with the contract, Healy will be able to carry out his duties without fearing the council.

But Sullivan said that it will establish unnecessary tenure for the city manager and will lessen his accountability to the council and the constituents by limiting the elected officials' ability to evaluate his performance.

Sullivan noted that the extended contract may well be in effect even after current city councilors leave office and may limit future city councils.

Healy, who has worked in the city manager's office since 1974, guided the city through a financially rough period of revenue cuts and recession. He is credited by many city councilors with maintaining the city's budget and improving its financial position.

"Cambridge was in the midst of a financial crisis [in 1981]," Healy said in a letter to the city council listing his accomplishments. Healy increased the city's capital improvement spending, reduced short term borrowing to nothing from $40 million in 1981 while improving Cambridge's debt rating and lowering its interest charges, and instituted five-year operating plans for the city.

During Healy's review meeting, the council went into executive session, barring the public and press. Councilors who voted for the executive session said that it was necessary to bargain with Healy candidly and to discuss Healy's performance.

Only one serious criticism of Healy's performance has been raised publicly--council members and community leaders said Healy had not worked seriously to institute the controversial Civilian Review Board (CRB) which was created to oversee police action and to review complaints of improper police behavior.