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                                                                                        City of Muskegon
                                                                 Discretely Presented Component Units

                                                                    STATEMENT OF NET ASSETS

                                                                                  December 31, 2002


                                                               Local                                 Local                                Local                         Downtown 
                                                        Development                           Development                          Development                        Development
                                                             Finance                               Finance                              Finance                          Authority                        Combined
                                                           Authority I                          Authority II                        Authority III                  Debt Retirement                           Totals
ASSETS
   Cash and cash equivalents (note A and B)          $                      299
                                                                                           $               519,173
                                                                                                                                 $            277,963
                                                                                                                                                                 $                  240,063
                                                                                                                                                                                                       $        1,037,498
                                                                                                                                                                                                                   
   Property taxes receivable                                                      -                         911,346
                                                                                                                                                           -                         701,019
                                                                                                                                                                                                                 1,612,365
                                                                                                                                                                                                                   
   Restricted cash and cash 
    equivalents (note A and B)                                                    -                                     -                   4,255,055
                                                                                                                                                                                                 -               4,255,055
                                                                                                                                                                                                                   
   Deferred debt expense (note A)                                                 -                                     -                      141,966
                                                                                                                                                                                                 -                  141,966
                                                                                                                                                                                                                        
                                                                             299
                                                                                                         1,430,519
                                                                                                                                            4,674,984
                                                                                                                                                                                     941,082
                                                                                                                                                                                                                 7,046,884
                                                                                                                                                                                                                   

   Capital assets
      Land and construction in progress                                           -                                     -                      718,803
                                                                                                                                                                                                 -                  718,803
                                                                                                                                                                                                                        

TOTAL ASSETS                                         $                      299
                                                                                           $            1,430,519
                                                                                                                                 $         5,393,787
                                                                                                                                                                 $                  941,082
                                                                                                                                                                                                       $        7,765,687
                                                                                                                                                                                                                   


LIABILITIES AND NET ASSETS
Liabilities
   Accounts payable                                  $                           -         $                           -         $            250,427
                                                                                                                                                                 $                  300,000
                                                                                                                                                                                                       $           550,427
                                                                                                                                                                                                                        
   Accrued interest                                                               -                             4,000
                                                                                                                                                 34,200
                                                                                                                                                                                       14,200
                                                                                                                                                                                                                      52,400
                                                                                                                                                                                                                             
   Due to other government units                                                  -                           81,703
                                                                                                                                                           -                                     -                    81,703
                                                                                                                                                                                                                             
   Due to primary government                                                      -                         155,672
                                                                                                                                                           -                                     -                  155,672
                                                                                                                                                                                                                        
   Deferred revenue (note A)                                                      -                         911,197
                                                                                                                                                           -                         698,180
                                                                                                                                                                                                                 1,609,377
                                                                                                                                                                                                                   
                                                                                  -                      1,152,572
                                                                                                                                               284,627
                                                                                                                                                                                  1,012,380
                                                                                                                                                                                                                 2,449,579
                                                                                                                                                                                                                   
   Long-term liabilities (note A and D)
      Due within one year
         Bonds payable                                                            -                         100,000
                                                                                                                                                           -                         170,000
                                                                                                                                                                                                                    270,000
                                                                                                                                                                                                                        
      Due in more than one year
         Bonds payable (net of unamortized
         discount of $9,176)                                                      -                         725,000
                                                                                                                                            4,715,824
                                                                                                                                                                                  4,670,000
                                                                                                                                                                                                               10,110,824
                                                                                                                                                                                                              
   Total long-term liabilities                                                    -                         825,000
                                                                                                                                            4,715,824
                                                                                                                                                                                  4,840,000
                                                                                                                                                                                                               10,380,824
                                                                                                                                                                                                              
Total liabilities                                                                 -                      1,977,572
                                                                                                                                            5,000,451
                                                                                                                                                                                  5,852,380
                                                                                                                                                                                                               12,830,403
                                                                                                                                                                                                              

Net assets (note A)
   Restricted for capital projects                                                -                                     -                   4,255,055
                                                                                                                                                                                                 -               4,255,055
                                                                                                                                                                                                                   
   Unrestricted                                                              299
                                                                                                           (547,053)
                                                                                                                                           (3,861,719)
                                                                                                                                                                                 (4,911,298)
                                                                                                                                                                                                                (9,319,771)
                                                                                                                                                                                                              
Total net assets                                                             299
                                                                                                           (547,053)
                                                                                                                                               393,336
                                                                                                                                                                                 (4,911,298)
                                                                                                                                                                                                                (5,064,716)
                                                                                                                                                                                                              

TOTAL LIABILITIES AND NET ASSETS                     $                      299
                                                                                           $            1,430,519
                                                                                                                                 $         5,393,787
                                                                                                                                                                 $                  941,082
                                                                                                                                                                                                       $        7,765,687
                                                                                                                                                                                                                   





























The accompanying notes are an integral part of this statement.