Depreciation Reserve Fund

22-1-305, MCA authorizes a local governing body in which a public library has been established to set up a library depreciation reserve fund. 

Funds deposited in a library depreciation reserve fund can be used for large capital projects. Libraries that are raising funds or receive donations for capital improvement may wish to use the library depreciation fund to hold the money until the library has enough funds to complete the project. 

22-1-306, MCA explains that moneys for the library depreciation reserve fund are those funds which have been allocated to the library in any year but which have not been expended by the end of the year. Such moneys include but are not limited to city or county or city-county appropriations, federal revenue sharing funds, and public and private grants.