A general reserve (or working fund reserve) is unrestricted savings a municipality maintains for flexibility rather than specific designated purposes. Unlike reserves earmarked for particular uses (equipment replacement, infrastructure), general reserves provide a financial cushion for unexpected needs, budget stabilization, and opportunities that may arise. General reserves can cover emergency costs, smooth revenue fluctuations, fund unanticipated capital needs, or provide bridge financing while awaiting grant payments. Sound financial management maintains adequate general reserves—typical targets range from 5% to 15% of operating budgets. Low general reserves leave municipalities vulnerable to unexpected events without options other than borrowing, service cuts, or tax increases. High general reserves may indicate excessive taxation or missed opportunities for service investment. Reserve policies typically specify target levels and conditions under which general reserves may be used and replenished.