What is the point of a reserve fund? A property with a healthy reserve fund is ultimately preferable to both occupants and the managing party.
This is because, in the event that major works are required in the property, a large portion, if not the entirety of the cost will be absorbed by the reserve fund.
This means that no additional service charge needs to be paid by the occupants.
A good reserve fund balance will also increase the value of the property, giving it an advantage over blocks and estates without one in place.