Attorneys for the Arthur D. Little (ADL) research firm presented their arguments against Cambridge's ban on nerve gas testing before the Massachusetts Supreme Judicial Court last Thursday.

ADL, a Department of Defense contractor, had been testing hazardous nerve agents in small quantities for several months before Cambridge health commissioner Melvin H. Chalfen imposed a controversial ban on chemical warfare testing within city limits one year ago.

The Court is expected to decide the case within the next four months, City Manager Robert W. Healy said last night. A lower court ruling allows ADI to continue the nerve agent testing through the appeals process.

Proclaiming the city to be in stable financial condition for the second consecutive year, Cambridge City Manager Robert W. Healy released his municipal budget for fiscal year 1986 last night.

Healy's plan for 1986 focuses on improving the city's appearance. The new budget allocates more money for main taining streets side walks, squares and park.

City Councilors last night voted to condemn a proposed state bill which would allow apartment owners to convert their rental units to condominiums on the grounds that it would have emasculated the city's rent control ordinance.

Supported by apartment owners and condominium developers, State Senator Michael LoPresti Jr. (D-Boston) introduced the bill currently sitting in committee.

Councilors Saundra Graham and David E. Sullivan led support for the resolution, which passed by only one vote, saying they were acting to protect Cambridge's 17,000 rent control units from condominium conversion.

Nearly a decade after it chose the site for the John Fitzgerald Kennedy Memorial Park, to be located at the corners of Memorial Drive and JFK Street, the state is finalizing its construction plans.

Amateur athletes may miss the vacant lot abutting the Kennedy School of Government which, since it became public land in 1976, has been host to innumerable touch football games as well as a few schemes by the Cambridge City Council to use the site for public housing.

The Massachusetts District Commission (MDC) is currently in the design stages of the $2.5 million, five-acre park and expects to begin actual construction next fall, according to MDC official Joanne Argento, Caroline B. Kennedy '80, daughter of the late president, is representing her family in reviewing plans, which will include some form of a memorial to the late President.

Local observers said they hope the MDC does a more responsible job of more responsible job of maintaining this prime piece of acreage than it does on some other Cambridge real estate; the banks of the Charles River.

Though the City's smoking ordinance has been in effect for more than a year, no violations had been reported until this past winter. Two Cantabrigians complained several weeks ago that Harvard Square's Pizzeria Regina would not seat them in a non-smoking area as they requested.

The law requires restaurants and other public facilities to have both smoking and non-smoking sections available at all times.

City Manager Robert W. Healy, who handled the initial complaint, decided to investigate the matter himself. He paid two incognito visits to the Holyoke St. eatery, but he was seated in non-smoking as requested.

But Healy, who is known for his tenacity and attention to detail, said he will continue monitoring the Regina case.