An unrestricted reserve (or general reserve) is a municipal savings fund that council can use at its discretion without restrictions on purpose. Unlike restricted reserves dedicated to specific uses (capital replacement, liability coverage, specific projects), unrestricted reserves provide flexible financial capacity. They serve as financial cushions for unexpected needs, temporary revenue shortfalls, or emerging priorities. Council can allocate unrestricted reserves to any lawful purpose through budget or spending decisions. Reserve policies typically establish target levels and guidelines for unrestricted reserve use. Adequate unrestricted reserves indicate financial resilience; depleted reserves suggest fiscal stress. Unrestricted reserves provide council flexibility but require discipline to maintain—the temptation to use flexible reserves for immediate priorities can undermine long-term financial security.