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                                                                                                                 City of Muskegon
                                                                                                                Pension Trust Funds

                                                                         COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS


                                                                                                         Year Ended December 31, 2002



                                                General Employees Retirement System                                                            Policemen and Firemen Retirement System
                                                                                                                                                                                                                                              Retiree                       Combined
                                              Pension                              Healthcare                         Total                    Pension                      Healthcare                            Total                      Healthcare                             Total

Additions
   Contributions
      Member                             $         325,527
                                                                              $                   -        $        325,527
                                                                                                                                          $        410,413
                                                                                                                                                                       $                    -      $        410,413
                                                                                                                                                                                                                                       $                   -            $            735,940
                                                                                                                                                                                                                                                                                               
      City                                                      -                                  -                             -                  290,431
                                                                                                                                                                                             -               290,431
                                                                                                                                                                                                                                                830,684
                                                                                                                                                                                                                                                                                   1,121,115
                                                                                                                                                                                                                                                                                          
   Total contributions                              325,527
                                                                                                   -                 325,527
                                                                                                                                                    700,844
                                                                                                                                                                                             -               700,844
                                                                                                                                                                                                                                                830,684
                                                                                                                                                                                                                                                                                   1,857,055
                                                                                                                                                                                                                                                                                          
   Net investment income                                                                                                                                                                            
      Interest and dividends                          12,038
                                                                                                  -                    12,038
                                                                                                                                                      10,069
                                                                                                                                                                                             -                 10,069
                                                                                                                                                                                                                                                  53,946
                                                                                                                                                                                                                                                                                        76,053
                                                                                                                                                                                                                                                                                                         
      Net increase (decrease) in fair
        value of investments                       (570,799)
                                                                                     (422,053)
                                                                                                                    (992,852)
                                                                                                                                                          (848,262)
                                                                                                                                                                                (372,124)
                                                                                                                                                                                                         (1,220,386)
                                                                                                                                                                                                                                               (239,850)
                                                                                                                                                                                                                                                                                  (2,453,088)
                                                                                                                                                                                                                                                                                     
Total additions                                    (233,234)
                                                                                      (422,053)
                                                                                                                           (655,287)
                                                                                                                                                          (137,349)
                                                                                                                                                                                (372,124)
                                                                                                                                                                                                            (509,473)
                                                                                                                                                                                                                                                         644,780                     (519,980)
                                                                                                                                                                                                                                                                                               

Deductions
   Benefit payments                              1,402,697
                                                                                                  -               1,402,697
                                                                                                                                                 2,841,440
                                                                                                                                                                                             -            2,841,440
                                                                                                                                                                                                                                                            -                      4,244,137
                                                                                                                                                                                                                                                                                          
   Refunds of contributions                           68,479
                                                                                                  -                    68,479
                                                                                                                                                    567,725
                                                                                                                                                                                             -               567,725
                                                                                                                                                                                                                                                            -                         636,204
                                                                                                                                                                                                                                                                                                    
   Administrative expenses                            73,844
                                                                                                  -                    73,844
                                                                                                                                                      92,358
                                                                                                                                                                                             -                 92,358
                                                                                                                                                                                                                                                    1,171
                                                                                                                                                                                                                                                                                      167,373
                                                                                                                                                                                                                                                                                                    
   Operating transfers out                                     -                      312,664
                                                                                                                     312,664
                                                                                                                                                                -                894,058
                                                                                                                                                                                                             894,058
                                                                                                                                                                                                                                                            -                      1,206,722
                                                                                                                                                                                                                                                                                          
Total deductions                                 1,545,020
                                                                                      312,664
                                                                                                                  1,857,684
                                                                                                                                                 3,501,523
                                                                                                                                                                                 894,058
                                                                                                                                                                                                          4,395,581
                                                                                                                                                                                                                                                    1,171
                                                                                                                                                                                                                                                                                   6,254,436
                                                                                                                                                                                                                                                                                          

Intrafund transfers in (out)                       (234,065)
                                                                                      234,065
                                                                                                                                 -                        (205,204)
                                                                                                                                                                                 205,204
                                                                                                                                                                                                                         -                                  -                                     - 
                                                                                                                                                                                                                                         
     Net increase (decrease)                    (2,012,319)
                                                                                     (500,652)
                                                                                                                 (2,512,971)
                                                                                                                                                (3,844,076)
                                                                                                                                                                             (1,060,978)
                                                                                                                                                                                                         (4,905,054)
                                                                                                                                                                                                                                                643,609
                                                                                                                                                                                                                                                                                  (6,774,416)
                                                                                                                                                                                                                                                                                     

Net assets at beginning of year                28,902,238
                                                                                   3,789,788
                                                                                                                32,692,026
                                                                                                                                               42,268,717
                                                                                                                                                                              3,714,748
                                                                                                                                                                                                        45,983,465
                                                                                                                                                                                                                                             1,477,580
                                                                                                                                                                                                                                                                                 80,153,071
                                                                                                                                                                                                                                                                                  

Net assets at end of year                $    26,889,919                      $    3,289,136               $   30,179,055                 $   38,424,641               $     2,653,770             $   41,078,411                      $    2,121,189                            73,378,655
                                                                                                                                                                                                                                                                        $