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                                                                          City of Muskegon
                                                                          Proprietary Funds

                                                                  STATEMENT OF CASH FLOWS

                                                                  Year Ended December 31, 2003


                                                                                                               Business-Type Activities                                                            Governmental
                                                                                                                              Enterprise Funds                                                          Activities
                                                                                                                                           Marina and 
                                                                          Sewer                                Water                     Launch Ramp                              Total            Internal Service
Cash flows from operating activities
   Receipts from customers                                           $    4,101,473
                                                                                                        $      4,011,422
                                                                                                                                                    311,600
                                                                                                                                        $                              $     8,424,495
                                                                                                                                                                                                                      251,861
                                                                                                                                                                                                  $              
   Receipts for internal services provided                                                         -
                                                                                                                                   -
                                                                                                                                                                  -
                                                                                                                                                                                            -                    5,878,085
                                                                                                                                                                                                               
   Payments to suppliers                                                  (1,559,605)
                                                                                                               (1,365,315)
                                                                                                                                                   (204,389)
                                                                                                                                                                            (3,129,309)
                                                                                                                                                                                                             (5,198,059)
                                                                                                                                                                                                             
   Payments to employees                                                     (519,839)
                                                                                                               (1,370,028)
                                                                                                                                                   (103,753)
                                                                                                                                                                            (1,993,620)
                                                                                                                                                                                                               (883,740)
                                                                                                                                                                                                                  
   Payments to internal service funds                                        (515,411)
                                                                                                                  (782,118)
                                                                                                                                                         (24,440)
                                                                                                                                                                            (1,321,969)
                                                                                                                                                                                                               (368,641)
                                                                                                                                                                                                                  
Net cash provided by (used for) operating activities                       1,506,618
                                                                                                                   493,961
                                                                                                                                                         (20,982)
                                                                                                                                                                              1,979,597
                                                                                                                                                                                                               (320,494)
                                                                                                                                                                                                                  

Cash flows from noncapital financing activities
   Cash deficit                                                                                    -
                                                                                                                                   -
                                                                                                                                                   (111,547)
                                                                                                                                                                               (111,547)
                                                                                                                                                                                                                            - 
   Transfers in                                                                                    -
                                                                                                                                   -
                                                                                                                                                                  -
                                                                                                                                                                                            -                    1,179,938
                                                                                                                                                                                                               
Net cash provided by (used for) noncapital financing
 activities                                                                                        -
                                                                                                                                   -
                                                                                                                                                   (111,547)
                                                                                                                                                                               (111,547)
                                                                                                                                                                                                                 1,179,938
                                                                                                                                                                                                               

Cash flows from capital and related financing activities
   State grants                                                                                    -
                                                                                                                                   -
                                                                                                                                                     256,612
                                                                                                                                                                                 256,612
                                                                                                                                                                                                                            - 
   Acquistion and construction of capital assets                          (1,106,572)
                                                                                                                  (994,987)
                                                                                                                                                   (124,083)
                                                                                                                                                                            (2,225,642)
                                                                                                                                                                                                               (501,804)
                                                                                                                                                                                                                  
   Proceeds from sale of capital assets                                                            -
                                                                                                                   504,500
                                                                                                                                                                  -
                                                                                                                                                                                 504,500
                                                                                                                                                                                                                           23,401
                                                                                                                                                                                                                    
   Principal paid on bonds                                                (1,151,091)
                                                                                                                  (405,000)
                                                                                                                                                                  -
                                                                                                                                                                            (1,556,091)
                                                                                                                                                                                                                            - 
   Interest paid on bonds                                                    (132,214)
                                                                                                                  (417,559)
                                                                                                                                                                  -
                                                                                                                                                                               (549,773)
                                                                                                                                                                                                                            - 
Net cash provided by (used for) capital and related 
 financing activities                                                     (2,389,877)
                                                                                                               (1,313,046)
                                                                                                                                                    132,529
                                                                                                                                                                            (3,570,394)
                                                                                                                                                                                                               (478,403)
                                                                                                                                                                                                                  
 Cash flows from investing activities
   Interest and dividends on investments                                        19,739
                                                                                                                     51,889
                                                                                                                                                                  -
                                                                                                                                                                                   71,628
                                                                                                                                                                                                                           26,476
                                                                                                                                                                                                                    
   Collections on contract receivable                                         677,897
                                                                                                                                   -
                                                                                                                                                                  -
                                                                                                                                                                                 677,897
                                                                                                                                                                                                                            - 
Net cash provided by investing activities                                     697,636
                                                                                                                     51,889
                                                                                                                                                                  -
                                                                                                                                                                                 749,525
                                                                                                                                                                                                                           26,476
                                                                                                                                                                                                                    

   Net increase (decrease) in cash and cash
    equivalents                                                              (185,623)
                                                                                                                  (767,196)
                                                                                                                                                                  -
                                                                                                                                                                               (952,819)
                                                                                                                                                                                                                      407,517
                                                                                                                                                                                                                  

Cash and cash equivalents at beginning of year                             1,231,951
                                                                                                                4,189,460
                                                                                                                                                                  -
                                                                                                                                                                              5,421,411
                                                                                                                                                                                                                 1,643,365
                                                                                                                                                                                                               

Cash and cash equivalents at end of year                             $    1,046,328
                                                                                                        $      3,422,264
                                                                                                                                                                  -
                                                                                                                                        $                              $     4,468,592
                                                                                                                                                                                                                 2,050,882
                                                                                                                                                                                                  $           

Reconciliation of cash and cash equivalents to the 
 balance sheet

Cash and cash equivalents                                            $    1,046,328
                                                                                                        $      2,599,705
                                                                                                                                                                  -
                                                                                                                                        $                              $     3,646,033
                                                                                                                                                                                                                 2,050,882
                                                                                                                                                                                                  $           
Restricted cash and cash equivalents                                                               -
                                                                                                                   822,559
                                                                                                                                                                  -
                                                                                                                                                                                 822,559
                                                                                                                                                                                                                            - 
                                                                     $    1,046,328
                                                                                                        $      3,422,264
                                                                                                                                                                  -
                                                                                                                                        $                              $     4,468,592
                                                                                                                                                                                                                 2,050,882
                                                                                                                                                                                                  $           

Reconciliation of operating income (loss) to net cash
 provided by (used for) operating activities
   Operating income (loss)                                           $       740,458
                                                                                                        $          (24,034)
                                                                                                                                                         (52,835)
                                                                                                                                        $                              $        663,589
                                                                                                                                                                                                  $           (787,207)
                                                                                                                                                                                                                  
   Adjustments to reconcile operating income (loss) to net
    cash provided by (used for) operating activities
      Depreciation and amortization                                           667,831
                                                                                                                   615,470
                                                                                                                                                          61,308
                                                                                                                                                                              1,344,609
                                                                                                                                                                                                                      704,264
                                                                                                                                                                                                                  
      Bad debt                                                                    6,865
                                                                                                                       5,682
                                                                                                                                                                  -
                                                                                                                                                                                   12,547
                                                                                                                                                                                                                            - 
   (Increase) decrease in 
      Accounts receivable                                                       43,730
                                                                                                                    (79,169)
                                                                                                                                                          37,342
                                                                                                                                                                                     1,903
                                                                                                                                                                                                                 (97,333)
                                                                                                                                                                                                                       
      Due from other governmental units                                                            -
                                                                                                                    (40,535)
                                                                                                                                                                  -
                                                                                                                                                                                 (40,535)
                                                                                                                                                                                                                            - 
      Inventories                                                              (10,078)
                                                                                                                    (13,903)
                                                                                                                                                                  -
                                                                                                                                                                                 (23,981)
                                                                                                                                                                                                                   (3,985)
                                                                                                                                                                                                                            
      Prepaid items                                                              (1,694)
                                                                                                                      (1,587)
                                                                                                                                                             (75)
                                                                                                                                                                                   (3,356)
                                                                                                                                                                                                                   (4,092)
                                                                                                                                                                                                                            
    Increase (decrease) in
      Accounts payable                                                          13,139
                                                                                                                     13,593
                                                                                                                                                         (67,224)
                                                                                                                                                                                 (40,492)
                                                                                                                                                                                                               (132,799)
                                                                                                                                                                                                                  
      Accrued payroll                                                               (937)
                                                                                                                       9,601
                                                                                                                                                            268
                                                                                                                                                                                     8,932
                                                                                                                                                                                                                                3,267
                                                                                                                                                                                                                      
      Due to other funds                                                                           -
                                                                                                                                   -
                                                                                                                                                                  -
                                                                                                                                                                                            -                      (1,018)
                                                                                                                                                                                                                            
      Due to other governmental units                                           52,952
                                                                                                                                   -
                                                                                                                                                                  -
                                                                                                                                                                                   52,952
                                                                                                                                                                                                                            - 
      Compensated absences payable                                               (5,648)
                                                                                                                       8,843
                                                                                                                                                            234
                                                                                                                                                                                     3,429
                                                                                                                                                                                                                   (1,591)
                                                                                                                                                                                                                            
Net cash provided by (used for) operating activities                 $    1,506,618
                                                                                                        $         493,961
                                                                                                                                                         (20,982)
                                                                                                                                        $                              $     1,979,597
                                                                                                                                                                                                  $           (320,494)
                                                                                                                                                                                                                  



The accompanying notes are an integral part of this statement.