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                                                                                   City of Muskegon
                                                                              Governmental Funds

                                 STATEMENT OF REVENUES, EXPENDITURES  AND CHANGES IN FUND BALANCES

                                                             Year Ended December 31, 2002


                                                                                                                                                                Other                                 Total 
                                                                                             Major Streets                                              Governmental                       Governmental 
                                                              General                       and Trunkline                 Local Streets                        Funds                              Funds
Revenues
   Taxes                                                $     13,465,040
                                                                                                                   -
                                                                                            $                                                      -
                                                                                                                         $                              $          142,823
                                                                                                                                                                                                   13,607,863
                                                                                                                                                                                          $        
   Special assessments                                                                 -
                                                                                                            324,200
                                                                                                                                     143,845
                                                                                                                                                                    479,383
                                                                                                                                                                                                          947,428
                                                                                                                                                                                                         
   Licenses and permits                                          1,071,236
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                         1,071,236
                                                                                                                                                                                                      
   Federal grants                                                   278,308
                                                                                                     3,487,352
                                                                                                                                                   -
                                                                                                                                                                 1,967,805
                                                                                                                                                                                                        5,733,465
                                                                                                                                                                                                      
   State grants                                                       11,316
                                                                                                             91,973
                                                                                                                                                   -
                                                                                                                                                                 1,059,968
                                                                                                                                                                                                        1,163,257
                                                                                                                                                                                                      
   State shared revenues                                         5,353,987
                                                                                                     2,582,023
                                                                                                                                     638,602
                                                                                                                                                                                     -
                                                                                                                                                                                                         8,574,612
                                                                                                                                                                                                      
   State reimbursement revenue                                                         -
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                        1,986
                                                                                                                                                                                                               1,986
                                                                                                                                                                                                             
   Charges for services                                          2,091,356
                                                                                                          287,084
                                                                                                                                                   -
                                                                                                                                                                    632,358
                                                                                                                                                                                                        3,010,798
                                                                                                                                                                                                      
   Interest and rental income                                       332,560
                                                                                                             95,702
                                                                                                                                       14,516
                                                                                                                                                                    219,735
                                                                                                                                                                                                          662,513
                                                                                                                                                                                                         
   Fines and fees                                                   393,314
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                          393,314
                                                                                                                                                                                                         
   Other                                                            439,062
                                                                                                               3,118
                                                                                                                                                 804
                                                                                                                                                                    354,984
                                                                                                                                                                                                          797,968
                                                                                                                                                                                                         
Total revenues                                                 23,436,179
                                                                                                     6,871,452
                                                                                                                                     797,767
                                                                                                                                                                 4,859,042
                                                                                                                                                                                                   35,964,440
                                                                                                                                                                                                    

Expenditures
   Current
      Public representation services                                985,107
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                          985,107
                                                                                                                                                                                                         
      Administrative services                                       816,581
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                          816,581
                                                                                                                                                                                                         
      Financial services                                         1,797,662
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                         1,797,662
                                                                                                                                                                                                      
      Public safety                                            11,497,673
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                      16,478
                                                                                                                                                                                                   11,514,151
                                                                                                                                                                                                    
      Public works                                               2,680,695
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                         2,680,695
                                                                                                                                                                                                      
      Highways, streets and bridges                                                    -
                                                                                                         6,945,604
                                                                                                                                  1,870,701
                                                                                                                                                                                     -
                                                                                                                                                                                                         8,816,305
                                                                                                                                                                                                      
      Leisure services                                           2,610,935
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                         2,610,935
                                                                                                                                                                                                      
      Planning and economic development                             971,335
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                          971,335
                                                                                                                                                                                                         
      Other governmental functions                                  777,438
                                                                                                             50,868
                                                                                                                                                   -
                                                                                                                                                                    970,039
                                                                                                                                                                                                        1,798,345
                                                                                                                                                                                                      
   Capital outlay                                                   140,413
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                 4,580,742
                                                                                                                                                                                                        4,721,155
                                                                                                                                                                                                      
   Debt services
      Principal                                                     185,000
                                                                                                          465,000
                                                                                                                                                   -
                                                                                                                                                                    695,000
                                                                                                                                                                                                        1,345,000
                                                                                                                                                                                                      
      Interest                                                        31,860
                                                                                                          175,550
                                                                                                                                                   -
                                                                                                                                                                    108,845
                                                                                                                                                                                                          316,255
                                                                                                                                                                                                         
Total expenditures                                             22,494,699
                                                                                                    7,637,022
                                                                                                                                  1,870,701
                                                                                                                                                                 6,371,104
                                                                                                                                                                                                  38,373,526
                                                                                                                                                                                                    

   Excess (deficiency) of revenues over expenditures                941,480
                                                                                                          (765,570)
                                                                                                                                 (1,072,934)
                                                                                                                                                                (1,512,062)
                                                                                                                                                                                                      (2,409,086)
                                                                                                                                                                                                     

Other financing sources (uses)
   Operating transfers in                                           170,985
                                                                                                          100,000
                                                                                                                                  1,050,000
                                                                                                                                                                    728,351
                                                                                                                                                                                                        2,049,336
                                                                                                                                                                                                      
   Operating transfers in - component units                           10,000
                                                                                                                   -
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                             10,000
                                                                                                                                                                                                           
   Sale of property                                                                    -
                                                                                                             88,109
                                                                                                                                                   -
                                                                                                                                                                    312,171
                                                                                                                                                                                                          400,280
                                                                                                                                                                                                         
   Proceeds of refunding bonds                                                         -
                                                                                                     2,245,000
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                        2,245,000
                                                                                                                                                                                                      
   Bond premium on refunding bonds                                                     -
                                                                                                             11,807
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                             11,807
                                                                                                                                                                                                           
   Payment to refunded bonds escrow agent                                              -
                                                                                                   (2,150,000)
                                                                                                                                                   -
                                                                                                                                                                                     -
                                                                                                                                                                                                      (2,150,000)
                                                                                                                                                                                                     
   Operating transfers out                                      (1,476,837)
                                                                                                          (269,243)
                                                                                                                                       (124,113)
                                                                                                                                                                   (177,298)
                                                                                                                                                                                                      (2,047,491)
                                                                                                                                                                                                     
Total other financing sources (uses)                            (1,295,852)
                                                                                                             25,673
                                                                                                                                     925,887
                                                                                                                                                                    863,224
                                                                                                                                                                                                          518,932
                                                                                                                                                                                                         

   Excess (deficiency) of revenues and other
    sources over expenditures and other uses                       (354,372)
                                                                                                          (739,897)
                                                                                                                                       (147,047)
                                                                                                                                                                   (648,838)
                                                                                                                                                                                                      (1,890,154)
                                                                                                                                                                                                     

Fund balances at beginning of year                               3,162,368
                                                                                                    2,361,992
                                                                                                                                     156,748
                                                                                                                                                                 6,829,586
                                                                                                                                                                                                  12,510,694
                                                                                                                                                                                                    
 Fund balances at end of year                           $       2,807,996                            1,622,09
                                                                                            $                      5     $              9,701           $       6,180,74
                                                                                                                                                                                     8             10,620,54
                                                                                                                                                                                          $                       0












The accompanying notes are an integral part of this statement.