Municipal compost varies widely. Compost from your town is probably great stuff. I get a lot of my compost free, from our city compost dump. It is mostly unfinished leaf mold. I have used it directly on my back yard, but prefer to finish it in my compost bin. Go have a look at your towns black gold. Take some home and try it. Some concerns might be: unknown pesticide residue, not finished enough. I have a gold mine of free compost, browns, greens, nearly finished, and finished humus if one digs deep enough. This morning, I opened my bin, pulled a bunch out, turned it a little, watered it and replaced what I took out with new stuff from our city piles. Look at that barrel of fresh green grass, buckets of leaf mold. Mmmmm mmmmm good. And of course, it was free.{{gwi:112491}}

Wow! Lucky you and great idea to add it to your own.
DH went and picked up a bucket full today. It's loaded with worms, something I rarely see in my yard. It is a bit rough looking. I may dumpt it in my washed out areas, rake it out, and see how it looks. I figure if it's bad, I can topdress with good stuff when I do the rest of the lawn in order to re-seed/overseed.

Is this a good plan, do you think? Do you have concerns about pesticide residue or bugs? I accidently posted this on another forum first and got feedback about this. I hadn't thought about that.
Thanks!

I think you will be OK with what you have. Spread some around on your turf. Sweep or rake it in a little. The microbes will multiply. The worms will come. Fungus and worms will aeriate your soil. I really do not have any concern about pesticide in the compost or greens from our city dump. Bugs have not been a problem either. I have used the partially finished leaf compost on new seedings and on established turf with excellent results. I prefer to add greens and cook the free compost a little more before I use it on my front lawn and gardens.

Here is a link that might be useful: My Page

a word of caution on filling holes with compost. from lurking on this forum, i've read that compost should not be used to fill holes because it will decay and the hole will sink back in. my understanding is that the holes or washout areas should be filled with dirt and only top dressed with compost.

someone please correct me if i've misunderstood this.