Alexandria City Manager Douglas Harman urged the City Council last night to adopt a "no thrills" $145 million budget that calls for a 3 percent salary increase for city employes and teachers, maintains the current real estate tax rate but falls short of what the superintendent says is needed to run the schools.

Harman's budget for the fiscal year beginning July 1 calls for a 5 percent increase in city spending and is the ninth and final one he has prepared for the city. Harman leaves today to become city manager of Fort Worth.

Vice Mayor Patricia S. Ticer said that the council is certain to revise Harman's budget. "There will be a huge amount of debate before this is final," she said. "You can almost bet it will be altered."

Harman told the seven-member council, which faces a May 5 election before they vote on final approval of the budget, he had prepared a "conservative" spending plan in line with their wishes not to increase taxes. He said his budget neither cuts services nor introduces new programs.

Assistant City Manager Clifford Rusch said the staff applied the "no thrills" label because the budget is "dull. It includes no new programs."

Ticer predicted that the proposed 3 percent pay raise for the city's 1,803 employes would be the budget's most emotional item. Teachers have requested a 5 percent increase and Superintendent Robert W. Peebles has said that anything less than that would cause an "erosion in the school system."

Last night, when he heard that Harman's proposal undercut his $55.98 million budget by almost $652,000, Peebles said, "It disappoints me . . . . I feel that that isn't sufficient for us to remain competitive. We must offer our teachers the same as Fairfax, Falls Church and other Virginia schools."

The real estate tax, which has not been changed in three years, would remain at $1.41 per $100 assessed value. The city will collect more from homeowners, though, because the assessed value of most properties rose last year.

The average owner of an Alexandria house valued at $140,500, for instance, will have to pay $79 more next year, or $2,060 in prop- erty taxes, because the assessed value rose by 4 percent.

According to Harman's plan, the 1986 personal property tax will also remain the same as this year, at $5 per $100 assessed value. Personal property taxes in Virginia are levied on office equipment, boats, airplanes and automobiles.

Because of Metro subway operations in the city, the city government will have to increase its subsidies for Metrobus and Metrorail by 9.6 percent, for a total of $7 million, Harman said.

Harman also outlined a six-year capital improvement program that totals $86.6 million and would finance the completion of a public safety center, City Hall renovation and a waterfront development near the Torpedo Factory. The plan would include shops, a park and other amenities near the foot of King Street.

"I was told this was going to be an uncomplicated budget," said council member Donald C. Casey. " . . . We're not going to raise taxes, but we are going to have to find extra money for the employes somewhere." CAPTION: Picture/one: chart Tight Budget Proposed In Alexandria Called 'No Thrills' Plan By Mary Jordan Washington Post Staff Writer

Alexandria City Manager Douglas Harman urged the City Council last night to adopt a "no thrills" $145 million budget that calls for a 3 percent salary increase for city employes and teachers, maintains the current real estate tax rate but falls short of what the superintendent says is needed to run the schools.

Harman's budget for the fiscal year beginning July 1 calls for a 5 percent increase in city spending and is the ninth and final one he has prepared for the city. Harman leaves today to become city manager of Fort Worth.

Vice Mayor Patricia S. Ticer said that the council is certain to revise Harman's budget. "There will be a huge amount of debate before this is final," she said. "You can almost bet it will be altered."

Harman told the seven-member council, which faces a May 5 election before they vote on final approval of the budget, he had prepared a "conservative" spending plan in line with their wishes not to increase taxes. He said his budget neither cuts services nor introduces new programs.

Assistant City Manager Clifford Rusch said the staff applied the "no thrills" label because the budget is "dull. It includes no new programs."

Ticer predicted that the proposed 3 percent pay raise for the city's 1,803 employes would be the budget's most emotional item. Teachers have requested a 5 percent increase and Superintendent Robert W. Peebles has said that anything less than that would cause an "erosion in the school system."

Last night, when he heard that Harman's proposal undercut his $55.98 million budget by almost $652,000, Peebles said, "It disappoints me . . . . I feel that that isn't sufficient for us to remain competitive. We must offer our teachers the same as Fairfax, Falls Church and other Virginia schools."

The real estate tax, which has not been changed in three years, would remain at $1.41 per $100 assessed value. The city will collect more from homeowners, though, because the assessed value of most properties rose last year.

The average owner of an Alexandria house valued at $140,500, for instance, will have to pay $79 more next year, or $2,060 in prop- erty taxes, because the assessed value rose by 4 percent.

According to Harman's plan, the 1986 personal property tax will also remain the same as this year, at $5 per $100 assessed value. Personal property taxes in Virginia are levied on office equipment, boats, airplanes and automobiles.

Because of Metro subway operations in the city, the city government will have to increase its subsidies for Metrobus and Metrorail by 9.6 percent, for a total of $7 million, Harman said.

Harman also outlined a six-year capital improvement program that totals $86.6 million and would finance the completion of a public safety center, City Hall renovation and a waterfront development near the Torpedo Factory. The plan would include shops, a park and other amenities near the foot of King Street.

"I was told this was going to be an uncomplicated budget," said council member Donald C. Casey. " . . . We're not going to raise taxes, but we are going to have to find extra money for the employes somewhere."Chart, Alexandria Budget