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70-383 Budget Summit # 3 – December 1, 2016 is approximately $6.4 million, a 6.6% increase over FY17, and the municipal share is approximately $2.3 million, also a 6.6% increase over FY17. Mr. Addelson pointed out that the $618,148 in Unallocated Needs could absorb a potential increase in health insurance. The projected increase in health insurance is budgeted at 5% but the consultants are projecting increases as much as 7%. Mr. Addelson pointed out the recommendation that $5 million go in to the Debt Service/Capital Stabilization Fund. And last, is the $983,000 in unallocated revenue, which can be used to balance competing operating and capital demands. Mr. Levine inquired as to the trends in building permits. In his observation, there seemed to be less building activity than in past years. Mr. Addelson responded that building permits were a tool used to project growth in the tax levy. Projections for FY17 were a 2.5% increase with actuals coming in at about 3.3%. Projections for FY18 were also 2.5%. Mr. Valente elaborated on the $618,148 in Unallocated/Unidentified Needs. This could go to fill the gap for items where revenue projections have fallen short. Though revenue projections are typically conservative, an example could be where actual state aid falls below the Town’s projections. The second category could be for an expense that is not included in the recommended budget, but should be. The third category could be an unknown increase in fixed costs, for example health insurance, as has been mentioned previously. Mr. Valente explained that a focus continues to be capital plan management to mitigate the amount of debt service by increasing the capital stabilization fund and addressing some of the capital needs through cash capital, limiting the need for further debt. By keeping budgets level and increases modest more can be put into the stabilization fund that can subsequently be used to limit the tax impact to tax payers for various capital projects/debt service. Mr. Valente discussed some emerging policy issues including increased requests for improvements to pedestrian, bicycle, and vehicle safety. On that note, the Town recently received good news around the Complete Streets Program. A $292,000 grant was received through the program which would go directly to towards transportation safety initiatives. Also of note, the increasing financial impact of complying with the federal and state stormwater management requirements is being felt in both the capital and operating budgets. It is becoming increasingly difficult to absorb without new revenue sources. The committees were invited to pass along any other policy priorities they are seeing. Confirm Date for Summit 4 The date for Summit 4 was set for Thursday, January 12, 2017 at 7:00 p.m. in the cafeteria at the Public Services Building. Update on Lexington Children’s Place (LCP) Site Options and High School HVAC Mr. Hurley provided an overview on the site options that have been explored for the Lexington Children’s Place (LCP). The School Committee has had numerous conversations in an effort to