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CREATING EFFECTIVE MEMBER COMMUNICATIONS
This is an example of how your Board could present the reason for a rate increase because the insurance premium has increased:
| Concept | Sample/Script |
|---|---|
| Bottom Line Up Front | Our insurance premium is increasing. The Board is sharing this update so members understand the water co-op's operating expenses before rate changes are considered. |
| What's Happening | When we reviewed and renewed our insurance policy with RMA Insurance in November, premiums went up more than planned, for the same amount of coverage on our water system, infrastructure and equipment. |
| Why It Matters | Insurance is an essential safeguard for our water co-op. However, because these premiums are paid from our general operating budget, rising costs may require an adjustment to the rates members pay, if the water co-op plans to stay on track with its routine maintenance and other financial and operational goals. |
| What the Board's Doing About It | We have confirmed that our coverage is adequate and competitive. The Board has modeled what a small rate adjustment for members would look like to maintain the rest of the water co-op's annual operating plan. |
| What Happens Next | No decision has been made yet. The Board is inviting your feedback and questions. If a rate adjustment is needed, it will be modest and based on actual verified cost increases, and it will be voted upon by members on [date]. |
| Closing Comment and Contact Info | The Board is committed to careful financial management and open communication. [Name, Title, phone/email] will be happy to review the details with you and answer any of your questions. |