This is the club's official press release from 1997:
“Manchester City Football Club would like to announce that they have commissioned a new crest to replace the round badge that has only existed since 1974. The new club crest is based on elements from the original “Arms of the City of Manchester”, the crest which is still used by Manchester City PLC today and worn on the team shirt for all Wembley occasions. It retains the original shield set against an eagle taken from the Badge of the City of Manchester, dating from 1957, also originally found on the City of Manchester Crest, on the ribbon flowing from the knight’s helmet. Below the shield is the new club motto “Superbia In Proelio”, a Latin phrase translating to “Pride in Battle”. The three stars above the eagle constitute a design element that relate a more continental feel to the design“.
Happy to be proven wrong if you've got evidence to the contrary.