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                                                                                   City of Muskegon
                                                                              Governmental Funds

                                 STATEMENT OF REVENUES, EXPENDITURES  AND CHANGES IN FUND BALANCES

                                                             Year Ended December 31, 2003


                                                                                                                                                                       Other                                 Total 
                                                                                              Major Street                                                     Governmental                       Governmental 
                                                              General                       and Trunkline                    Local Street                             Funds                              Funds
Revenues
   Taxes                                                $     13,246,744
                                                                                                                      -
                                                                                            $                                                             -
                                                                                                                           $                                   $            60,054
                                                                                                                                                                                                          13,306,798
                                                                                                                                                                                                 $        
   Special assessments                                                                 -
                                                                                                            358,650
                                                                                                                                       240,781
                                                                                                                                                                           373,436
                                                                                                                                                                                                                 972,867
                                                                                                                                                                                                                
   Licenses and permits                                          1,108,780
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                1,108,780
                                                                                                                                                                                                             
   Federal grants                                                   211,597
                                                                                                     1,275,245
                                                                                                                                       246,000
                                                                                                                                                                        2,665,764
                                                                                                                                                                                                               4,398,606
                                                                                                                                                                                                             
   State grants                                                       23,264
                                                                                                     4,561,233
                                                                                                                                    1,120,771
                                                                                                                                                                           669,930
                                                                                                                                                                                                               6,375,198
                                                                                                                                                                                                             
   State shared revenues                                         4,938,861
                                                                                                     2,499,757
                                                                                                                                       666,649
                                                                                                                                                                                            -
                                                                                                                                                                                                                8,105,267
                                                                                                                                                                                                             
   Charges for services                                          2,240,866
                                                                                                          439,219
                                                                                                                                                          -
                                                                                                                                                                           627,522
                                                                                                                                                                                                               3,307,607
                                                                                                                                                                                                             
   Interest and rental income                                       189,485
                                                                                                          169,533
                                                                                                                                         15,133
                                                                                                                                                                           142,331
                                                                                                                                                                                                                 516,482
                                                                                                                                                                                                                
   Fines and fees                                                   471,682
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                 471,682
                                                                                                                                                                                                                
   Other                                                            331,195
                                                                                                                56
                                                                                                                                                        586
                                                                                                                                                                           228,335
                                                                                                                                                                                                                 560,172
                                                                                                                                                                                                                
Total revenues                                                 22,762,474
                                                                                                     9,303,693
                                                                                                                                    2,289,920
                                                                                                                                                                        4,767,372
                                                                                                                                                                                                          39,123,459
                                                                                                                                                                                                           

Expenditures
   Current
      Public representation services                                889,188
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                 889,188
                                                                                                                                                                                                                
      Administrative services                                       785,966
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                 785,966
                                                                                                                                                                                                                
      Financial services                                         1,846,558
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                1,846,558
                                                                                                                                                                                                             
      Public safety                                            11,437,516
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                               1,971
                                                                                                                                                                                                          11,439,487
                                                                                                                                                                                                           
      Public works                                               2,731,241
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                2,731,241
                                                                                                                                                                                                             
      Highways, streets and bridges                                                    -
                                                                                                     8,340,206
                                                                                                                                    3,459,811
                                                                                                                                                                                            -
                                                                                                                                                                                                          11,800,017
                                                                                                                                                                                                           
      Leisure services                                           2,624,275
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                2,624,275
                                                                                                                                                                                                             
      Planning and economic development                             987,097
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                                            -
                                                                                                                                                                                                                 987,097
                                                                                                                                                                                                                
      Other governmental functions                                  659,930
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                           929,642
                                                                                                                                                                                                               1,589,572
                                                                                                                                                                                                             
   Capital outlay                                                   285,310
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                        4,211,321
                                                                                                                                                                                                               4,496,631
                                                                                                                                                                                                             
   Debt services
      Principal                                                     195,000
                                                                                                          550,000
                                                                                                                                                          -
                                                                                                                                                                           525,000
                                                                                                                                                                                                               1,270,000
                                                                                                                                                                                                             
      Interest                                                        22,397
                                                                                                             97,425
                                                                                                                                                          -
                                                                                                                                                                           111,085
                                                                                                                                                                                                                 230,907
                                                                                                                                                                                                                
Total expenditures                                             22,464,478
                                                                                                    8,987,631
                                                                                                                                    3,459,811
                                                                                                                                                                        5,779,019
                                                                                                                                                                                                         40,690,939
                                                                                                                                                                                                           

   Excess (deficiency) of revenues over expenditures                297,996
                                                                                                          316,062
                                                                                                                                   (1,169,891)
                                                                                                                                                                       (1,011,647)
                                                                                                                                                                                                             (1,567,480)
                                                                                                                                                                                                            

Other financing sources (uses)
   Transfers in                                                     566,282
                                                                                                                      -
                                                                                                                                    1,370,000
                                                                                                                                                                           804,460
                                                                                                                                                                                                               2,740,742
                                                                                                                                                                                                             
   Sale of property                                                                    -
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                           282,080
                                                                                                                                                                                                                 282,080
                                                                                                                                                                                                                
   Bonds issued                                                                        -
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                        1,575,000
                                                                                                                                                                                                               1,575,000
                                                                                                                                                                                                             
   Premium on bonds                                                                    -
                                                                                                                      -
                                                                                                                                                          -
                                                                                                                                                                               3,009
                                                                                                                                                                                                                    3,009
                                                                                                                                                                                                                    
   Transfers out                                                (1,240,856)
                                                                                                          (525,049)
                                                                                                                                         (64,169)
                                                                                                                                                                          (910,668)
                                                                                                                                                                                                             (2,740,742)
                                                                                                                                                                                                            
Total other financing sources (uses)                               (674,574)
                                                                                                          (525,049)
                                                                                                                                    1,305,831
                                                                                                                                                                        1,753,881
                                                                                                                                                                                                               1,860,089
                                                                                                                                                                                                             

   Excess (deficiency) of revenues and other
    sources over expenditures and other uses                       (376,578)
                                                                                                          (208,987)
                                                                                                                                       135,940
                                                                                                                                                                           742,234
                                                                                                                                                                                                                 292,609
                                                                                                                                                                                                                

Fund balances at beginning of year                               2,807,996
                                                                                                    1,622,095
                                                                                                                                           9,701
                                                                                                                                                                        6,180,748
                                                                                                                                                                                                         10,620,540
                                                                                                                                                                                                           
 Fund balances at end of year                           $       2,431,418                            1,413,10
                                                                                            $                         8    $          145,641                  $       6,922,98
                                                                                                                                                                                            2             10,913,14
                                                                                                                                                                                                 $                      9















The accompanying notes are an integral part of this statement.