Reserve balance is the total amount of money held in a municipality's reserve funds at a given point in time. Municipalities maintain various reserves—operating reserves, capital reserves, equipment replacement reserves, and contingency reserves—each with its own balance. Total reserve balances appear in financial statements and indicate financial flexibility. Balances change as municipalities contribute to reserves or withdraw funds for approved purposes. Tracking reserve balances helps ensure targets are met and funds are available when needed. Higher reserve balances provide more financial cushion but may indicate money that could be used for services or tax relief. Appropriate balance levels depend on municipal circumstances and policies.