SUPPLEMENT TO THE SPARTAN(registered trademark) FLORIDA MUNICIPAL
FUNDS JANUARY 25, 1999 PROSPECTUS
The following information replaces the first bullet under the
"Principal Investment Strategies" section for Spartan Florida
Municipal Money Market Fund on page 3.
(small solid bullet) Investing normally in municipal money market
securities, including a municipal money market fund managed by an
affiliate of FMR.
The following information replaces the first paragraph under the
"Principal Investment Strategies" section for Spartan Florida
Municipal Money Market Fund on page 8.
FMR normally invests the fund's assets in municipal money market
securities, including a municipal money market fund managed by an
affiliate of FMR.
The following information replaces the first paragraph under the
"Description of Principal Security Types" section on page 9.
MONEY MARKET SECURITIES are high-quality, short-term securities that
pay a fixed, variable, or floating interest rate. Securities are often
specifically structured so that they are eligible investments for a
money market fund. For example, in order to satisfy the maturity
restrictions for a money market fund, some money market securities
have demand or put features which have the effect of shortening the
security's maturity. Municipal money market securities include
variable rate demand notes, commercial paper, municipal notes and
municipal money market funds.
The following information replaces the third paragraph under the
heading "Principal Investment Strategies" for Spartan Florida
Municipal Money Market Fund on page 8.
FMR may invest the fund's assets in municipal securities subject to
the Florida intangible tax, but expects the fund to be exempt from the
Florida intangible tax. Although FMR does not currently intend to
invest the fund's assets in municipal securities whose interest is
subject to federal income tax, FMR may invest all of the fund's assets
in municipal securities whose interest is subject to the federal
alternative minimum tax.
The following information replaces the third paragraph under the
heading "Principal Investment Strategies" for Spartan Florida
Municipal Income Fund on page 9.
FMR may invest the fund's assets in municipal securities subject to
the Florida intangible tax, but expects the fund to be exempt from the
Florida intangible tax. Although FMR does not currently intend to
invest the fund's assets in municipal securities whose interest is
subject to federal income tax, FMR may invest all of the fund's assets
in municipal securities whose interest is subject to the federal
alternative minimum tax.
The following information replaces similar information found under
the heading "Tax Consequences" on page 24.
TAXES ON DISTRIBUTIONS. Each fund seeks to earn income and
pay dividends exempt from federal income tax, and also seeks exemption
of fund shares from the Florida intangible tax.
A portion of each fund's income, and the dividends you receive, may
be subject to federal income taxes. Each fund's income may be subject
to the federal alternative minimum tax. Each fund may also realize
taxable income or gains on the sale of municipal bonds and may make
taxable distributions.
SUPPLEMENT TO THE
SPARTAN(registered trademark) FLORIDA MUNICIPAL MONEY MARKET FUND
A FUND OF FIDELITY COURT STREET TRUST II
SPARTAN FLORIDA MUNICIPAL INCOME FUND
A FUND OF FIDELITY COURT STREET TRUST
JANUARY 25, 1999
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING NON-FUNDAMENTAL LIMITATION REPLACES SPARTAN FLORIDA
MUNICIPAL MONEY MARKET FUND'S NON-FUNDAMENTAL LIMITATION (IV) IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (3)).
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR SPARTAN
FLORIDA MUNICIPAL MONEY MARKET FUND FOUND IN THE "INVESTMENT POLICIES
AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
For purposes of normally investing at least 65% of the fund's total
assets in municipal securities exempt from Florida intangible tax, FMR
interprets "total assets" to exclude collateral received for
securities lending transactions.
THE FOLLOWING NON-FUNDAMENTAL LIMITATION REPLACES SPARTAN FLORIDA
MUNICIPAL INCOME FUND'S NON-FUNDAMENTAL LIMITATION (IV) IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)).
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR SPARTAN
FLORIDA MUNICIPAL INCOME FUND FOUND IN THE "INVESTMENT POLICIES AND
LIMITATIONS" SECTION BEGINNING ON PAGE 2.
For purposes of normally investing at least 65% of the fund's total
assets in municipal securities exempt from Florida intangible tax, FMR
interprets "total assets" to exclude collateral received for
securities lending transactions.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
SOURCES OF LIQUIDITY OR CREDIT SUPPORT. Issuers may employ
various forms of credit and liquidity enhancements, including letters
of credit, guarantees, puts, and demand features, and insurance
provided by domestic or foreign entities such as banks and other
financial institutions. FMR may rely on its evaluation of the credit
of the liquidity or credit enhancement provider in determining whether
to purchase a security supported by such enhancement. In evaluating
the credit of a foreign bank or other foreign entities, FMR will
consider whether adequate public information about the entity is
available and whether the entity may be subject to unfavorable
political or economic developments, currency controls, or other
government restrictions that might affect its ability to honor its
commitment. Changes in the credit quality of the entity providing the
enhancement could affect the value of the security or a fund's share
price.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND UNDER
THE HEADING "FLORIDA TAX MATTERS" IN THE "DISTRIBUTIONS AND TAXES"
SECTION ON PAGE 21.
The State of Florida currently imposes an "intangible tax" at the
annual rate of two mills, or .20% on certain securities and other
intangible personal property owned by Florida residents. (Effective
January 1, 2000, the rate has been reduced to 1.5 mills or .15%). With
respect to the first mill, or first .10%, of the intangible tax, every
natural person is entitled each year to an exemption of the first
$20,000 of the value of the property subject to the tax. A husband and
wife filing jointly will have an exemption of $40,000. With respect to
the last mill, or last .10% (effective January 1, 2000 the last 0.5
mill or .005%), of the intangible tax, every natural person is
entitled each year to an exemption of the first $100,000 of the value
of the property subject to the tax. A husband and wife filing jointly
will have an exemption of $200,000. Notes, bonds, and other
obligations issued by the State of Florida or its municipalities,
counties, and other taxing districts, or by the U.S. government, its
agencies and certain U.S. territories and possessions (such as Guam,
Puerto Rico and the Virgin Islands) are exempt from this intangible
tax. If on the last business day of any year at least 90% of the net
assets of the fund consist of such exempt assets, then the fund's
shares will be wholly exempt from the Florida intangible tax payable
in the following year.
In order to take advantage of the exemption from the intangible tax
in any year, a fund must sell a sufficient amount of non-exempt assets
held in its portfolio during the year and reinvest the proceeds in
exempt assets on or before the last business day of the calendar year
to meet this 90% test. Transaction costs involved in restructuring a
fund in this fashion would likely reduce investment return and might
exceed any increased investment return the fund achieved by investing
in non-exempt assets during the year.
THE FOLLOWING INFORMATION REPLACES AND SUPPLEMENTS SIMILAR INFORMATION
FOUND IN THE "TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 24.
*EDWARD C. JOHNSON 3d (68), Trustee and President, is Chairman, Chief
Executive Officer and a Director of FMR Corp.; a Director and Chairman
of the Board and of the Executive Committee of FMR; Chairman and a
Director of Fidelity Investments Money Management, Inc. (1998),
Fidelity Management & Research (U.K.) Inc., and Fidelity Management &
Research (Far East) Inc. Abigail Johnson, Member of the Advisory Board
of Fidelity Court Street Trust and Fidelity Court Street Trust II, is
Mr. Johnson's daughter.
ABIGAIL P. JOHNSON (38), Member of the Advisory Board of Fidelity
Court Street Trust and Fidelity Court Street Trust II (1999), is Vice
President of certain Equity Funds (1997), and is a Director of FMR
Corp. (1994). Before assuming her current responsibilities, Ms.
Johnson managed a number of Fidelity funds. Edward C. Johnson 3d,
Trustee and President of the Funds, is Ms. Johnson's father.
The following table sets forth information describing the compensation
of each Trustee and Member of the Advisory Board of each fund for his
or her services for the fiscal year ended November 30, 1998, or
calendar year ended December 31, 1998, as applicable.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMPENSATION TABLE
Trustees and Members of the Aggregate Compensation from Aggregate Compensation from Total Compensation from the
Advisory Board Spartan FL Muni Money MarketB Spartan FL Muni IncomeB Fund Complex*,A
J. Gary Burkhead** $ 0 $ 0 $ 0
Ralph F. Cox $ 174 $ 155 $ 223,500
Phyllis Burke Davis $ 173 $ 154 $ 220,500
Robert M. Gates $ 175 $ 156 $ 223,500
Edward C. Johnson 3d** $ 0 $ 0 $ 0
Abigail P. Johnson** $ 0 $ 0 $ 0
E. Bradley Jones $ 174 $ 155 $ 222,000
Donald J. Kirk $ 177 $ 158 $ 226,500
Peter S. Lynch** $ 0 $ 0 $ 0
William O. McCoy $ 175 $ 156 $ 223,500
Gerald C. McDonough $ 215 $ 191 $ 273,500
Marvin L. Mann $ 172 $ 153 $ 220,500
Robert C. Pozen** $ 0 $ 0 $ 0
Thomas R. Williams $ 175 $ 156 $ 223,500
</TABLE>
* Information is for the calendar year ended December 31, 1998 for 237
funds in the complex.
** Interested Trustees of the funds, Ms. Johnson and Mr. Burkhead are
compensated by FMR.
A Compensation figures include cash, amounts required to be deferred,
and may include amounts deferred at the election of Trustees. For the
calendar year ended December 31, 1998, the Trustees accrued required
deferred compensation from the funds as follows: Ralph F. Cox,
$75,000; Phyllis Burke Davis, $75,000; Robert M. Gates, $75,000; E.
Bradley Jones, $75,000; Donald J. Kirk, $75,000; William O. McCoy,
$75,000; Gerald C. McDonough, $87,500; Marvin L. Mann, $75,000; and
Thomas R. Williams, $75,000. Certain of the non-interested Trustees
elected voluntarily to defer a portion of their compensation as
follows: Ralph F. Cox, $55,039; William O. McCoy, $55,039; Marvin L.
Mann, $55,039; and Thomas R. Williams, $63,433.
B Compensation figures include cash.
THE FOLLOWING INFORMATION REPLACES THE FIRST, EIGHTH, AND TENTH
PARAGRAPHS FOUND IN THE "TRANSFER AND SERVICE AGENT AGREEMENTS"
SECTION ON PAGE 29.
Each fund has entered into a transfer agent agreement with Citibank,
N.A., which is located at 111 Wall Street, New York, New York. Under
the terms of the agreements, Citibank, N.A. provides transfer agency,
dividend disbursing, and shareholder services for each fund. Citibank,
N.A. in turn has entered into sub-transfer agent agreements with FSC,
an affiliate of FMR. Under the terms of the sub-agreements, FSC
performs all processing activities associated with providing these
services for each fund and receives all related transfer agency fees
paid to Citibank, N.A.
In addition, Citibank, N.A. receives the pro rata portion of the
transfer agency fees applicable to shareholder accounts in a qualified
state tuition program (QSTP), as defined under the Small Business Job
Protection Act of 1996, managed by FMR or an affiliate and each
Fidelity Freedom Fund, a fund of funds managed by an FMR affiliate,
according to the percentage of the QSTP's or Freedom Fund's assets
that is invested in a fund.
Each fund has also entered into a service agent agreement with
Citibank, N.A. Under the terms of the agreements, Citibank, N.A.
provides pricing and bookkeeping services for each fund. Citibank,
N.A. in turn has entered into sub-service agent agreements with FSC.
Under the terms of the sub-agreements, FSC performs all processing
activities associated with providing these services, including
calculating the NAV and dividends for each fund and maintaining each
fund's portfolio and general accounting records, and receives all
related pricing and bookkeeping fees paid to Citibank, N.A.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION IN THE
"DESCRIPTION OF THE TRUSTS" SECTION BEGINNING ON PAGE 29.
CUSTODIAN. Citibank, N.A., 111 Wall Street, New York, New York, is
custodian of the assets of the funds. The custodian is responsible for
the safekeeping of a fund's assets and the appointment of any
subcustodian banks and clearing agencies.
