Budget

Each year at the Annual Meeting, the Board of Directors submits an Annual Budget for approval of the Members (Associate Members cannot vote on this issue). The Budget authorizes the Board of Directors to collect assessments and pay for the maintenance and management of Soapstone Cluster. At the same meeting, the Members (but not Associate Members) approve the quarterly assessment per unit.

Budget Categories

General description and purpose of each category used in the current budget, and the Annual Financial Report is as follows:

Administration

This provides for Board operating expenses such as printing, postage and bank fees.

Contracts

This provides for all contractual obligations / costs relative to the maintenance and upkeep of Cluster common property, including grounds maintenance, trash / recycling pick-up and snow removal (as necessary.)

Professional Fees

This provides for legal, audit and tax preparation fees in addition to management fees paid to a property management company for assistance with Board responsibilities (e.g. billing and collection of quarterly Cluster assessments.)

Repairs and Maintenance

This provides for general repairs and maintenance costs such as pruning and maintenance of trees and shrubbery, and limited repair of curbs, sidewalks and footpaths.

Capital Reserve

The Soapstone Cluster Association owns and maintains all the common property within the Cluster boundaries. This property was transferred from the builder to the Cluster at the time the Association was established. The Cluster ownership includes the woods, parks, playground, sidewalks, car entrances and parking lots.

The Board contracts with engineering consultants who conduct a study of our capital assets every five years. Based on the maintenance schedule that they produce with estimated costs, the Board determines the amount that should be maintained in the Capital Reserve. Deposits in the Reserve are factored into the budget.

Taxes and Insurance

The Cluster pays taxes on interest income of Cluster bank accounts to the Internal Revenue Service and the Commonwealth of Virginia. Assessment income expended for necessary Cluster functions is exempt from taxes.

The Cluster has a General Liability insurance policy covering risks involving our common property. A liability policy for the Officers and Directors covers the actions of our Directors in carrying out Cluster responsibilities.

Utilities

Cluster utility costs consist of Dominion Virginia Power electricity bills for watch lights along footpaths and parking lots and Fairfax Water for water usage for common grounds.

Operating Surplus

In the past the Cluster’s income from assessments has been slightly in excess of the funds disbursed for Cluster expenses. Each year the Membership has voted to carry these funds over into the following fiscal year in an operating surplus category. The money is a financial cushion for emergency or extraordinary requirements, and balances the uneven flow of assessment income versus monthly expenses. Annual Membership approval is necessary under Internal Revenue Service regulations so the money involved will not be taxed.

Assessments/Income

Each house is assessed 1/80th of the approved budget. The assessments are billed quarterly at the beginning of each quarter and are payable within 30 days. Owners receive their quarterly bills from the Cluster management company and can pay by personal check, bank check, or through automatic payments. Owners can contact the management company (GHA) to set up automatic payments.

The Treasurer monitors the billing and collection of the assessment fees by the management company. The Board of Directors considers delinquent assessments to be a serious problem and strictly enforces collection procedures described in the Bylaws.

An assessment is delinquent if not received within the first 30 days of the quarter. A late charge is added to the account when it becomes delinquent. If the assessment remains unpaid after 60 days past the due date, the balance of the annual assessment may become due and payable at the discretion of the Board of Directors. If the account is still delinquent after another 30 days, it may be turned over to a lawyer for collection. A lien may be recorded against the property. The delinquent homeowner is responsible for the attorney’s fees. The Membership rights of the delinquent owner may be suspended at the option of the Board of Directors until payment is received.

Monthly Financial Reports

Each month our Management company issues a monthly financial report for review by the Board of Directors. A summary of that report can be found in the owner’s GHA accounts.

You can also find the monthly reports here.