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                                                                                                                                                  City of Muskegon

                                                                                                                                  STATEMENT OF ACTIVITIES

                                                                                                                               Year Ended December 31, 2003



                                                                                                                                                                                             Net (Expense) Revenue and Change in Net Assets
                                                                                                                    Program Revenues                                                                                     Primary Government
                                                                                                                                                          Capital Grants 
                                                                                        Charges for                  Operating Grants                              and                      Governmental                      Business-Type                                                              Component                     Total Reporting 
Functions/Programs Expenses                                                                Services                 and Contributions                      Contributions                        Activities                        Activities                                 Total                            Units                                    Entity
Primary government
   Governmental activities
      Public representation services                   $             887,496
                                                                                      $          204,435
                                                                                                                    $                            -                                 -
                                                                                                                                                         $                               $               (683,061)
                                                                                                                                                                                                                              $                     -        $         (683,061)
                                                                                                                                                                                                                                                                                                      $                       -        $          (683,061)
                                                                                                                                                                                                                                                                                                                                                                  
      Administrative services                                      1,227,407
                                                                                                  292,665
                                                                                                                                        33,000
                                                                                                                                                                                   -
                                                                                                                                                                                                          (901,742)
                                                                                                                                                                                                                                                     -                  (901,742)
                                                                                                                                                                                                                                                                                                                               -                   (901,742)
                                                                                                                                                                                                                                                                                                                                                                  
      Financial services                                           1,842,653
                                                                                                  591,174
                                                                                                                                                  -                                -
                                                                                                                                                                                                       (1,251,479)
                                                                                                                                                                                                                                                     -               (1,251,479)
                                                                                                                                                                                                                                                                                                                               -                (1,251,479)
                                                                                                                                                                                                                                                                                                                                                        
      Public safety                                              11,583,282
                                                                                               1,162,175
                                                                                                                                      211,597
                                                                                                                                                                                   -
                                                                                                                                                                                                     (10,209,510)
                                                                                                                                                                                                                                                     -             (10,209,510)
                                                                                                                                                                                                                                                                                                                               -              (10,209,510)
                                                                                                                                                                                                                                                                                                                                              
      Public works                                                 2,947,194
                                                                                                  266,045
                                                                                                                                                  -                     391,055
                                                                                                                                                                                                       (2,290,094)
                                                                                                                                                                                                                                                     -               (2,290,094)
                                                                                                                                                                                                                                                                                                                               -                (2,290,094)
                                                                                                                                                                                                                                                                                                                                                        
      Leisure services                                             3,042,315
                                                                                               1,026,822
                                                                                                                                        52,265
                                                                                                                                                                        245,987
                                                                                                                                                                                                       (1,717,241)
                                                                                                                                                                                                                                                     -               (1,717,241)
                                                                                                                                                                                                                                                                                                                               -                (1,717,241)
                                                                                                                                                                                                                                                                                                                                                        
      Planning and economic development                            3,371,472
                                                                                                  977,448
                                                                                                                                   2,077,731
                                                                                                                                                                        667,065
                                                                                                                                                                                                                   350,772
                                                                                                                                                                                                                                                     -                   350,772
                                                                                                                                                                                                                                                                                                                               -                    350,772
                                                                                                                                                                                                                                                                                                                                                                       
      Highways, streets and bridges                                3,483,032
                                                                                                  273,893
                                                                                                                                   3,239,035
                                                                                                                                                                     9,190,510
                                                                                                                                                                                                              9,220,406
                                                                                                                                                                                                                                                     -                9,220,406
                                                                                                                                                                                                                                                                                                                               -                 9,220,406
                                                                                                                                                                                                                                                                                                                                                             
      General administration                                       1,601,112
                                                                                                  122,447
                                                                                                                                                  -                                -
                                                                                                                                                                                                       (1,478,665)
                                                                                                                                                                                                                                                     -               (1,478,665)
                                                                                                                                                                                                                                                                                                                               -                (1,478,665)
                                                                                                                                                                                                                                                                                                                                                        
      Interest on long-term debt                                      223,717
                                                                                                              -                                   -                                -
                                                                                                                                                                                                          (223,717)
                                                                                                                                                                                                                                                     -                  (223,717)
                                                                                                                                                                                                                                                                                                                               -                   (223,717)
                                                                                                                                                                                                                                                                                                                                                                  
   Total governmental activities                                30,209,680
                                                                                               4,917,104
                                                                                                                                   5,613,628
                                                                                                                                                                   10,494,617
                                                                                                                                                                                                       (9,184,331)
                                                                                                                                                                                                                                                     -               (9,184,331)
                                                                                                                                                                                                                                                                                                                               -                (9,184,331)
                                                                                                                                                                                                                                                                                                                                                        

   Business-type activities
      Water                                                        4,538,186
                                                                                               4,131,126
                                                                                                                                                  -                                -
                                                                                                                                                                                                                       -                (407,060)
                                                                                                                                                                                                                                                                        (407,060)
                                                                                                                                                                                                                                                                                                                               -                   (407,060)
                                                                                                                                                                                                                                                                                                                                                                  
      Sewer                                                        3,416,372
                                                                                               4,057,743
                                                                                                                                                  -                                -
                                                                                                                                                                                                                       -                  641,371
                                                                                                                                                                                                                                                                         641,371
                                                                                                                                                                                                                                                                                                                               -                    641,371
                                                                                                                                                                                                                                                                                                                                                                       
      Marina                                                          325,401
                                                                                                  274,258
                                                                                                                                                  -                     256,612
                                                                                                                                                                                                                       -                  205,469
                                                                                                                                                                                                                                                                         205,469
                                                                                                                                                                                                                                                                                                                               -                    205,469
                                                                                                                                                                                                                                                                                                                                                                       
   Total business-type activities                                  8,279,959
                                                                                               8,463,127
                                                                                                                                                  -                     256,612
                                                                                                                                                                                                                       -                  439,780
                                                                                                                                                                                                                                                                         439,780
                                                                                                                                                                                                                                                                                                                               -                    439,780
                                                                                                                                                                                                                                                                                                                                                                       
Total primary government                                        38,489,639
                                                       $                              $     13,380,231              $             5,613,628              $        10,751,229                           (9,184,331)                        439,780                    (8,744,551)                                               -                (8,744,551)

Component units
   Local Development Finance Authority I                                        -
                                                       $                              $                      -      $                            -                                 -
                                                                                                                                                         $                                                             -                              -                              -                                         -                                - 
   Local Development Finance Authority II                             544,148
                                                                                                              -                                   -                                -
                                                                                                                                                                                                                       -                              -                              -                            (544,148)
                                                                                                                                                                                                                                                                                                                                                   (544,148)
                                                                                                                                                                                                                                                                                                                                                                  
   Local Development Finance Authority III                            231,786
                                                                                                              -                                   -                                -
                                                                                                                                                                                                                       -                              -                              -                            (231,786)
                                                                                                                                                                                                                                                                                                                                                   (231,786)
                                                                                                                                                                                                                                                                                                                                                                  
   Downtown Development Authority                                     276,312
                                                                                                              -                                   -                                -
                                                                                                                                                                                                                       -                              -                              -                            (276,312)
                                                                                                                                                                                                                                                                                                                                                   (276,312)
                                                                                                                                                                                                                                                                                                                                                                  
Total component units                                  $          1,052,246
                                                                                      $                      -      $                            -                                 -
                                                                                                                                                         $                                                             -                              -                              -                         (1,052,246)                      (1,052,246)

                                                      General revenues
                                                         Property taxes                                                                                                                                       7,029,393
                                                                                                                                                                                                                                                     -                7,029,393
                                                                                                                                                                                                                                                                                                                1,796,169
                                                                                                                                                                                                                                                                                                                                                 8,825,562
                                                                                                                                                                                                                                                                                                                                                             
                                                         Income taxes                                                                                                                                         6,644,708
                                                                                                                                                                                                                                                     -                6,644,708
                                                                                                                                                                                                                                                                                                                               -                 6,644,708
                                                                                                                                                                                                                                                                                                                                                             
                                                         State shared revenues                                                                                                                                4,938,861
                                                                                                                                                                                                                                                     -                4,938,861
                                                                                                                                                                                                                                                                                                                               -                 4,938,861
                                                                                                                                                                                                                                                                                                                                                             
                                                         Cable franchise fees                                                                                                                                      265,532
                                                                                                                                                                                                                                                     -                   265,532
                                                                                                                                                                                                                                                                                                                               -                    265,532
                                                                                                                                                                                                                                                                                                                                                                       
                                                         Investment earnings                                                                                                                                       281,492
                                                                                                                                                                                                                                            71,628
                                                                                                                                                                                                                                                                         353,120
                                                                                                                                                                                                                                                                                                                     70,291
                                                                                                                                                                                                                                                                                                                                                    423,411
                                                                                                                                                                                                                                                                                                                                                                       
                                                         Miscellaneous                                                                                                                                             109,620
                                                                                                                                                                                                                                                     -                   109,620
                                                                                                                                                                                                                                                                                                                               -                    109,620
                                                                                                                                                                                                                                                                                                                                                                       
                                                         Gain (loss) on sale of capital assets                                                                                                                      62,992
                                                                                                                                                                                                                                          (88,767)
                                                                                                                                                                                                                                                                          (25,775)
                                                                                                                                                                                                                                                                                                                               -                     (25,775)
                                                                                                                                                                                                                                                                                                                                                                            
                                                      Total general revenues                                                                                                                             19,332,598
                                                                                                                                                                                                                                          (17,139)
                                                                                                                                                                                                                                                                    19,315,459
                                                                                                                                                                                                                                                                                                                1,866,460
                                                                                                                                                                                                                                                                                                                                               21,181,919
                                                                                                                                                                                                                                                                                                                                                   

                                                         Change in net assets                                                                                                                            10,148,267
                                                                                                                                                                                                                                          422,641
                                                                                                                                                                                                                                                                    10,570,908
                                                                                                                                                                                                                                                                                                                   814,214
                                                                                                                                                                                                                                                                                                                                               11,385,122
                                                                                                                                                                                                                                                                                                                                                   

                                                      Net assets at beginning of year                                                                                                                    36,933,205
                                                                                                                                                                                                                                     38,696,732
                                                                                                                                                                                                                                                                    75,629,937
                                                                                                                                                                                                                                                                                                               (5,064,716)
                                                                                                                                                                                                                                                                                                                                               70,565,221
                                                                                                                                                                                                                                                                                                                                                   

                                                      Net assets at end of year                                                                                                                          47,081,472
                                                                                                                                                                                         $                                    $     39,119,373               $     86,200,845                         $       (4,250,502)              $      81,950,343







The accompanying notes are an integral part of this statement.