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                                                                                                                  City of Muskegon
                                                                                                Discretely Presented Component Units

                                                                                                             STATEMENT OF ACTIVITIES

                                                                                                                 December 31, 2002


                                                                                            Progam Revenues                                                  Net (Expenses) Revenue and Change in Net Assets
                                                                                                                                                       Local                          Local                       Local 
                                                                                 Operational                     Capital Grants                  Development                   Development                  Development                  Downtown 
                                                                                  Grants and                              and                        Finance                        Finance                     Finance                Development                  Combining 
                                                    Expenses                   Contributions                     Contributions                     Authority I                   Authority II                Authority III                Authority                         Totals
Local Development Finance Authority I
   Economic development                         $                       -     $                       -         $                       -      $                       -      $                      -      $                   -      $                   -      $                    - 

Local Development Finance Authority II
   Economic development                                      802,385
                                                                                                       -                                 -                              -               (802,385)
                                                                                                                                                                                                                                 -                          -              (802,385)
                                                                                                                                                                                                                                                                                  
   Interest on long-term debt                                  50,900
                                                                                                       -                                 -                              -                 (50,900)
                                                                                                                                                                                                                                 -                          -                (50,900)
                                                                                                                                                                                                                                                                                            
Total Local Development Finance 
 Authority II                                                853,285
                                                                                                       -                                 -                              -               (853,285)
                                                                                                                                                                                                                                 -                          -              (853,285)
                                                                                                                                                                                                                                                                                  

Local Development Finance Authority III
   Economic development                                          4,000
                                                                                                5,500
                                                                                                                              400,000
                                                                                                                                                                        -                             -               401,500
                                                                                                                                                                                                                                                            -               401,500
                                                                                                                                                                                                                                                                                       
   Interest on long-term debt                                  34,200
                                                                                                       -                                 -                              -                             -               (34,200)
                                                                                                                                                                                                                                                            -                (34,200)
                                                                                                                                                                                                                                                                                            
Total Local Development Finance 
 Authority III                                                 38,200
                                                                                                5,500
                                                                                                                              400,000
                                                                                                                                                                        -                             -               367,300
                                                                                                                                                                                                                                                            -               367,300
                                                                                                                                                                                                                                                                                       

Downtown Development Authority
   Economic development                                      358,264
                                                                                                       -                                 -                              -                             -                          -             (358,264)
                                                                                                                                                                                                                                                                           (358,264)
                                                                                                                                                                                                                                                                                  
   Interest on long-term debt                                173,892
                                                                                                       -                                 -                              -                             -                          -             (173,892)
                                                                                                                                                                                                                                                                           (173,892)
                                                                                                                                                                                                                                                                                  
Total Downtown Development Authority                         532,156
                                                                                                       -                                 -                              -                             -                          -             (532,156)
                                                                                                                                                                                                                                                                           (532,156)
                                                                                                                                                                                                                                                                                  

Total discretely presented component
 units                                          $        1,423,641
                                                                              $                5,500
                                                                                                                $            400,000
                                                                                                                                                                        -               (853,285)
                                                                                                                                                                                                                      367,300
                                                                                                                                                                                                                                               (532,156)
                                                                                                                                                                                                                                                                        (1,018,141)
                                                                                                                                                                                                                                                                        


                                                General revenues
                                                   Property taxes                                                                                                       -                 789,045
                                                                                                                                                                                                                                 -              512,670
                                                                                                                                                                                                                                                                         1,301,715
                                                                                                                                                                                                                                                                             
                                                   Interest income                                                                                                   11
                                                                                                                                                                                            19,945
                                                                                                                                                                                                                        26,036
                                                                                                                                                                                                                                                    5,016
                                                                                                                                                                                                                                                                              51,008
                                                                                                                                                                                                                                                                                                 
                                                Total general revenues                                                                                               11
                                                                                                                                                                                          808,990
                                                                                                                                                                                                                        26,036
                                                                                                                                                                                                                                                517,686
                                                                                                                                                                                                                                                                         1,352,723
                                                                                                                                                                                                                                                                             

                                                   Change in net assets                                                                                              11
                                                                                                                                                                                          (44,295)
                                                                                                                                                                                                                      393,336
                                                                                                                                                                                                                                                 (14,470)
                                                                                                                                                                                                                                                                            334,582
                                                                                                                                                                                                                                                                                       

                                                Net assets at beginning of year                                                                                    288
                                                                                                                                                                                        (502,758)
                                                                                                                                                                                                                                 -          (4,896,828)
                                                                                                                                                                                                                                                                        (5,399,298)
                                                                                                                                                                                                                                                                        

                                                Net assets at end of year                                                                      $                  299
                                                                                                                                                                              $        (547,053)
                                                                                                                                                                                                            $        393,336
                                                                                                                                                                                                                                            (4,911,298)
                                                                                                                                                                                                                                       $                          $    (5,064,716)
                                                                                                                                                                                                                                                                        




The accompanying notes are an integral part of this statement.