Mayor Michael Bloomberg and the City Council speaker agreed Tuesday to a $52.9 billion budget just days before the fiscal year comes to an end.

The budget proposal, which leaves the city deficit-free for another year, includes money for new initiatives and restorations to services that had been cut. Services that were cut include cultural affairs and libraries. It also includes $1 billion for a new trust fund to pay health benefits for retired city employees.

The budget will now head to the City Council for final approval.