A reserve management strategy is a municipal policy framework guiding how reserves are accumulated, maintained, and used. The strategy establishes target balances for different reserve types, contribution schedules to reach targets, conditions for withdrawals, and reporting requirements. Effective strategies consider municipal risks, infrastructure needs, revenue stability, and long-term planning horizons. They balance building reserves against current service needs and tax impacts. Strategies are typically reviewed periodically and adjusted based on changing circumstances. A documented reserve management strategy demonstrates fiscal responsibility to auditors, rating agencies, and citizens while guiding council decisions about reserve contributions and withdrawals.