KENNER, La. (AP) — Kenner Mayor Mike Yenni has proposes a $61.1 million budget for the 2012-13 fiscal year.

The Times-Picayune reports (http://bit.ly/ItZ2pz ) most employees will get their first pay raises in four years, but the city will dip into the surplus funds to avoid a deficit.

The operating budget for the year beginning July 1 would total $57.7 million, slightly up from the $57.2 million budget that the council adopted a year ago.

Finance Director Duke McConnell says the proposed capital budget, at $3.4 million, is up slightly from this year's $3.3 million spending plan.

The city council plans to hold public hearings on the budget later this month.

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Information from: The Times-Picayune, http://www.nola.com