City Manager Robert W. Healy yesterday unveiled Cambridge's fiscal 1996 budget, asking the City Council to approve a total of $317,811,335 operating expenses, a 4.8 percent increase over last year's operating costs.

But Healy proposed only a modest property tax increase of .8 percent, the smallest tax levy hike since fiscal year 1983.

According to the city manager's budget message, the cost of the hike will be covered by taxes on new properties entering the city's tax rolls this year. Cantabrigians will effectively pay the same property taxes next year as they did in fiscal 1995, councillors said.

The city expects to collect a total of $145,623,133 in taxes for fiscal 1996, of which 41.1 percent is used on educational programming.

Although Healy's budget figures reinforce the stable financial image of Cambridge--which had a surplus of more than $11 million last year--the city manager was criticized by some residents yesterday for his lack of fiscal conservatism.

Some residents said last night the city should be spending less, lowering commercial property taxes and saving surplus tax dollars in a fund balance--essentially the city's savings account, used for unforeseen circumstances and non-budgetary expenditures.

The release yesterday of the more than 400 page-long budget launches a season of five public hearings,

By state law, the City Council must approve the budget within 45 days, or by May 24. The new budget is schedule to take effect July 1. The council has the authority to make reductions in the proposed budget, but cannot make increases without the city manager's consent.

The budget appears to be yet another fiscal success for a city which has so far managed to provide an extensive range of social services--notably in community health care--while protecting a tax base largely supported by businesses.

This year's budget proposes another substantial increase in the city'ssocial service spending: a public housing programintended to assist tenants displaced or threatenedby the elimination of rent control.

For the last three years, Cambridge has savedaround $15,000,000 annually by making changes inemployee health benefits and by stabilizing salaryexpenses, according to Healy. In the meantime thecity has erected a new Area Four Youth Center andtwo elementary schools. A new senior-citizenscenter is still under construction inMid-Cambridge.

Social Spending

In February, city officials also announced therevamping of the city's public health-care system.The expansion of the Cambridge Hospital plantcontinues.

The council also unveiled plans last night forCityHome, a new city housing plan aimed atreducing the shrinkage in affordable city housingbrought about by last November's decision to endrent control.

Since January, the council's Housing andCommunity Development Committee has been meetingto review the loss of 15,700 rent controlled unitsand the prospect of a decrease in federal fundingfor housing.

The council's program would help tenants becomefirst-time homebuyers by providing "counseling,education and training to existing tenants,"establishing second mortgage programs incooperation with Cambridge banks, establishingcity, federal and state funded mortgage pools andby providing assistance with rehabilitation andclosing costs for those displaced by the end ofrent control, according to a description releasedby the council.