A debt management strategy is a comprehensive plan outlining how a municipality will use, monitor, and repay borrowed funds to maintain financial health while meeting infrastructure needs. Key elements include policies on when debt financing is appropriate, target debt levels and limits, preferred debt instruments, procedures for debt issuance, and monitoring mechanisms. A sound strategy balances the need for infrastructure investment against maintaining sustainable debt loads and protecting the municipality's credit rating. It considers interest rate risk management, optimal debt terms for different asset types, refinancing opportunities, and coordination with long-term capital plans. Many municipalities publish their debt management policies and report regularly on debt levels compared to targets, providing transparency about the community's financial obligations.