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                                                                            City of Muskegon
                                                                            Proprietary Funds

                                                          STATEMENT OF FUND NET ASSETS

                                                                            December 31, 2003

                                                                                              Business-Type Activities                                                                        Governmental
                                                                                                       Enterprise Funds                                                                            Activities

                                                                                                                                Marina and                                                          Internal 
                                                                  Sewer                          Water                     Launch Ramp                                         Total                Service
ASSETS
Current assets
   Cash and cash equivalents (note A and B)                $      1,046,328
                                                                                        $          2,599,705
                                                                                                                           $                  -                 $       3,646,033
                                                                                                                                                                                              $       2,050,882
                                                                                                                                                                                                        
   Accounts receivable                                             1,169,868
                                                                                                    1,078,545
                                                                                                                                          601
                                                                                                                                                                         2,249,014
                                                                                                                                                                                                          127,233
                                                                                                                                                                                                             
   Due from other governmental units                                              -                    540,535
                                                                                                                                               -                            540,535
                                                                                                                                                                                                                      - 
   Inventories (note A)                                                 23,092
                                                                                                         70,272
                                                                                                                                               -                              93,364
                                                                                                                                                                                                                 10,404
                                                                                                                                                                                                             
   Prepaid items (note A)                                               10,258
                                                                                                         11,770
                                                                                                                                          739
                                                                                                                                                                              22,767
                                                                                                                                                                                                                 27,831
                                                                                                                                                                                                             
Total current assets                                               2,249,546
                                                                                                    4,300,827
                                                                                                                                       1,340
                                                                                                                                                                         6,551,713
                                                                                                                                                                                                       2,216,350
                                                                                                                                                                                                        

Noncurrent assets
   Restricted cash and cash equivalents (note A and B)                            -                    822,559
                                                                                                                                               -                            822,559
                                                                                                                                                                                                                      - 
   Deferred debt expense (note A)                                                 -                    143,455
                                                                                                                                               -                            143,455
                                                                                                                                                                                                                      - 
   Contract receivable (note A)                                    3,422,522
                                                                                                                   -                           -                         3,422,522
                                                                                                                                                                                                                      - 
   Wastewater facility rights (net of
    accumulated amortization of
    $2,012,722) (note A)                                           1,451,372
                                                                                                                   -                           -                         1,451,372
                                                                                                                                                                                                                      - 
   Capital assets (note A and C)                                                                                                                                                               
      Land, construction in progress and other                                                                                                                                                 
       assets not being depreciated                                1,881,659
                                                                                                    7,101,769
                                                                                                                                   521,301
                                                                                                                                                                         9,504,729
                                                                                                                                                                                                          108,410
                                                                                                                                                                                                             
      Other capital assets, net of depreciation                  10,726,244
                                                                                                  20,157,107
                                                                                                                                   964,154
                                                                                                                                                                       31,847,505
                                                                                                                                                                                                       2,761,663
                                                                                                                                                                                                        
   Total capital assets                                          12,607,903
                                                                                                  27,258,876
                                                                                                                                1,485,455
                                                                                                                                                                       41,352,234
                                                                                                                                                                                                       2,870,073
                                                                                                                                                                                                        
Total noncurrent assets                                          17,481,797
                                                                                                  28,224,890
                                                                                                                                1,485,455
                                                                                                                                                                       47,192,142
                                                                                                                                                                                                       2,870,073
                                                                                                                                                                                                        

TOTAL ASSETS                                               $    19,731,343
                                                                                        $        32,525,717
                                                                                                                           $   1,486,795
                                                                                                                                                                $     53,743,855
                                                                                                                                                                                              $       5,086,423
                                                                                                                                                                                                        

LIABILITIES AND NET ASSETS
Liabilities
   Current liabilities
      Current maturities of long-term debt                 $      1,107,267
                                                                                        $             420,000
                                                                                                                           $                 -                  $       1,527,267
                                                                                                                                                                                              $                      - 
      Accounts payable                                                  34,154
                                                                                                       151,119
                                                                                                                                       5,014
                                                                                                                                                                            190,287
                                                                                                                                                                                                          312,930
                                                                                                                                                                                                             
      Accrued payroll                                                   13,571
                                                                                                         38,576
                                                                                                                                       1,160
                                                                                                                                                                              53,307
                                                                                                                                                                                                                 23,621
                                                                                                                                                                                                             
      Accrued interest                                                            -                      72,000
                                                                                                                                               -                              72,000
                                                                                                                                                                                                                      - 
      Due to other funds (note E)                                                 -                                -                 72,012
                                                                                                                                                                              72,012
                                                                                                                                                                                                                      - 
      Due to other governmental units                                 128,647
                                                                                                                   -                           -                            128,647
                                                                                                                                                                                                                      - 
      Compensated absences payable (note A)                             44,955
                                                                                                       140,885
                                                                                                                                       4,117
                                                                                                                                                                            189,957
                                                                                                                                                                                                                 93,855
                                                                                                                                                                                                             
   Total current liabilities                                       1,328,594
                                                                                                       822,580
                                                                                                                                     82,303
                                                                                                                                                                         2,233,477
                                                                                                                                                                                                          430,406
                                                                                                                                                                                                             

   Noncurrent liabilities (note A and D)
      Contracts payable-Muskegon County                            5,886,923
                                                                                                                   -                           -                         5,886,923
                                                                                                                                                                                                                      - 
      Bonds payable (net of 
       unamortized discount of $93,654)                                           -                 9,251,346
                                                                                                                                               -                         9,251,346
                                                                                                                                                                                                                      - 
      Less current maturities                                     (1,107,267)
                                                                                                      (420,000)
                                                                                                                                               -                        (1,527,267)
                                                                                                                                                                                                                      - 
   Total noncurrent liabilities                                    4,779,656
                                                                                                    8,831,346
                                                                                                                                               -                       13,611,002
                                                                                                                                                                                                                      - 
Total liabilities                                                  6,108,250
                                                                                                    9,653,926
                                                                                                                                     82,303
                                                                                                                                                                       15,844,479
                                                                                                                                                                                                          430,406
                                                                                                                                                                                                             

Net assets (note A)
   Invested in capital assets, net of related debt                 8,172,352
                                                                                                  18,150,985
                                                                                                                                1,485,455
                                                                                                                                                                       27,808,792
                                                                                                                                                                                                       2,870,073
                                                                                                                                                                                                        
   Restricted for
      Debt service                                                                -                    822,559
                                                                                                                                               -                            822,559
                                                                                                                                                                                                                      - 
   Unrestricted                                                    5,450,741
                                                                                                    3,898,247
                                                                                                                                    (80,963)
                                                                                                                                                                         9,268,025
                                                                                                                                                                                                       1,785,944
                                                                                                                                                                                                        
Total net assets                                                 13,623,093
                                                                                                  22,871,791
                                                                                                                                1,404,492
                                                                                                                                                                       37,899,376
                                                                                                                                                                                                       4,656,017
                                                                                                                                                                                                        

TOTAL LIABILITIES AND NET ASSETS                           $    19,731,343
                                                                                        $        32,525,717
                                                                                                                           $   1,486,795
                                                                                                                                                                $     53,743,855
                                                                                                                                                                                              $       5,086,423
                                                                                                                                                                                                        


Reconciliation to the statement of net assets

Total net assets of enterprise funds                                                                                                                            $     37,899,376
                                                                                                                                                                      

Some amounts reported for business-type
 activities in the statement of net assets are
 different because certain internal service fund
 assets and liabilities are included with business-                                                                                                                      1,219,997
                                                                                                                                                                                
 type activities

Net assets of business-type activities                                                                                                                          $     39,119,373
                                                                                                                                                                      





The accompanying notes are an integral part of this statement.