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                                                                                                     City of Muskegon
                                                                                    Discretely Presented Component Units

                                                                                                 STATEMENT OF ACTIVITIES

                                                                                                    December 31, 2003


                                                                                                                         Net (Expenses) Revenue and Change in Net Assets
                                                                                                                   Local                             Local                        Local 
                                                                                                            Development                       Development                  Development                  Downtown 
                                                                                                                Finance                           Finance                      Finance                Development                  Combining 
                                                                            Expenses                          Authority I                       Authority II                Authority III                Authority                     Totals
      Local Development Finance Authority I
         Economic development                                                                        -
                                                                  $                                                                     -
                                                                                                          $                                                          -
                                                                                                                                             $                                                   -
                                                                                                                                                                           $                          $                   -      $                    - 

      Local Development Finance Authority II
         Economic development                                                              499,273
                                                                                                                                        -
                                                                                                                                                          (499,273)
                                                                                                                                                                                                 -
                                                                                                                                                                                                                           -
                                                                                                                                                                                                                                          (499,273)
                                                                                                                                                                                                                                             
         Interest on long-term debt                                                            44,875
                                                                                                                                        -
                                                                                                                                                               (44,875)
                                                                                                                                                                                                 -
                                                                                                                                                                                                                           -
                                                                                                                                                                                                                                            (44,875)
                                                                                                                                                                                                                                                  
      Total Local Development Finance 
       Authority II                                                                        544,148
                                                                                                                                        -
                                                                                                                                                          (544,148)
                                                                                                                                                                                                 -
                                                                                                                                                                                                                           -
                                                                                                                                                                                                                                          (544,148)
                                                                                                                                                                                                                                             

      Local Development Finance Authority III
         Economic development                                                                  26,060
                                                                                                                                        -
                                                                                                                                                                     -
                                                                                                                                                                                         (26,060)
                                                                                                                                                                                                                           -
                                                                                                                                                                                                                                            (26,060)
                                                                                                                                                                                                                                                  
         Interest on long-term debt                                                        205,726
                                                                                                                                        -
                                                                                                                                                                     -
                                                                                                                                                                                   (205,726)
                                                                                                                                                                                                                           -
                                                                                                                                                                                                                                          (205,726)
                                                                                                                                                                                                                                             
      Total Local Development Finance 
       Authority III                                                                       231,786
                                                                                                                                        -
                                                                                                                                                                     -
                                                                                                                                                                                   (231,786)
                                                                                                                                                                                                                           -
                                                                                                                                                                                                                                          (231,786)
                                                                                                                                                                                                                                             

      Downtown Development Authority
         Economic development                                                              108,820
                                                                                                                                        -
                                                                                                                                                                     -
                                                                                                                                                                                                 -
                                                                                                                                                                                                              (108,820)
                                                                                                                                                                                                                                            (108,820)
                                                                                                                                                                                                                                           
         Interest on long-term debt                                                        167,492
                                                                                                                                        -
                                                                                                                                                                     -
                                                                                                                                                                                                 -
                                                                                                                                                                                                              (167,492)
                                                                                                                                                                                                                                            (167,492)
                                                                                                                                                                                                                                           
      Total Downtown Development Authority                                                 276,312
                                                                                                                                        -
                                                                                                                                                                     -
                                                                                                                                                                                                 -
                                                                                                                                                                                                              (276,312)
                                                                                                                                                                                                                                            (276,312)
                                                                                                                                                                                                                                           

      Total discretely presented component
       units                                                                           1,052,246
                                                                  $                                                                     -
                                                                                                                                                          (544,148)
                                                                                                                                                                                   (231,786)
                                                                                                                                                                                                              (276,312)
                                                                                                                                                                                                                                       (1,052,246)
                                                                                                                                                                                                                                       


                                                    General revenues
                                                       Property taxes                                                                   -
                                                                                                                                                      1,097,989
                                                                                                                                                                                                 -
                                                                                                                                                                                                                698,180
                                                                                                                                                                                                                                        1,796,169
                                                                                                                                                                                                                                        
                                                       Interest income                                                              2
                                                                                                                                                           14,025
                                                                                                                                                                                           51,385
                                                                                                                                                                                                                     4,879
                                                                                                                                                                                                                                             70,291
                                                                                                                                                                                                                                                  
                                                    Total general revenues                                                          2
                                                                                                                                                      1,112,014
                                                                                                                                                                                           51,385
                                                                                                                                                                                                                703,059
                                                                                                                                                                                                                                        1,866,460
                                                                                                                                                                                                                                        

                                                       Change in net assets                                                         2
                                                                                                                                                         567,866
                                                                                                                                                                                   (180,401)
                                                                                                                                                                                                                426,747
                                                                                                                                                                                                                                           814,214
                                                                                                                                                                                                                                             

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

                                                    Net assets at end of year                                                  301
                                                                                                          $                                  $            20,813
                                                                                                                                                                                         212,935
                                                                                                                                                                           $                          $   (4,484,551)
                                                                                                                                                                                                                                       (4,250,502)
                                                                                                                                                                                                                                 $     


The accompanying notes are an integral part of this statement.