He's trying...really he is.

Murphy is generally a good, make that GREAT dog. He's not too hyper, 99.9% potty trained, likes his space, is ALWAYS up for a road trip, and is super cute. If I say so myself. He has lived in an apartment for almost a year. It's the end of a 5-plex, so it's not so different from his former house. He has a chair by the window so he can watch people outside. He mimics the ambulance/firetruck sirens, like in his old neighborhood. He still feels the need to give a menacing growl-turned-bark when he doesn't like the looks of whoever is walking past. This habit is annoying, and I'd like to break him of it for my sake as well as the neighbor's.
My main method is to squirt him with the water bottle while saying "No!" in a firm voice. I can do this from pretty much anywhere in the room. I'm not sure it's that effective. Sometimes he raises an eyebrow in annoyance. Sometimes he shakes his head and body as if he were a female lifeguard on "Baywatch" fresh from the salty ocean. At some point he always wants to sit by (or ON) me after this. And he always smells like a wet dog. I seem to be at the short end of this discipline deal and I wonder, is it safe to Febreeze a dog?