Dreyfus
Municipal Money
Market Fund, Inc.
ANNUAL REPORT May 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Financial Highlights
18 Notes to Financial Statements
21 Report of Independent Auditors
22 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Municipal
Money Market Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Municipal Money Market
Fund, Inc., covering the 12-month period from June 1, 1999 through May 31, 2000.
Inside you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Colleen Meehan.
When the reporting period began, international and domestic economies were
growing faster than most analysts expected, giving rise to concerns that
long-dormant inflationary pressures might reemerge. Consumers continued to spend
heavily, unemployment levels reached new lows and the stock market, while highly
volatile, continued to climb.
Because robust economic growth may trigger unwanted inflationary pressures, the
Federal Reserve Board raised short-term interest rates six times during the
reporting period, for a total increase of 1.75 percentage points since late June
1999. While these economic influences overall adversely affected long-term
municipal bonds, they positively influenced tax-exempt money market yields
We appreciate your confidence over the past year and we look forward to your
continued participation in Dreyfus Municipal Money Market Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
DISCUSSION OF FUND PERFORMANCE
Colleen Meehan, Portfolio Manager
How did Dreyfus Municipal Money Market Fund, Inc. perform during the period?
For the 12-month period ended May 31, 2000, the fund produced an annualized
yield of 3.00% . Taking into account the effects of compounding, the fund
provided an annualized effective yield of 3.04% for the same period.(1
We attribute the fund' s performance to higher short-term interest rates
implemented by the Federal Reserve Board (the "Fed"), which helped enhance
tax-exempt money market yields.
What is the fund's investment approach?
The fund seeks a level of current income exempt from federal income taxes as is
consistent with the preservation of capital and the maintenance of liquidity.
In so doing, we employ two primary strategies. First, we attempt to add value by
constructing a diverse portfolio of high quality, tax-exempt money market
instruments from issuers throughout the United States and its territories.
Second, we actively manage the portfolio's average maturity in anticipation of
supply-and-demand changes in the short-term municipal marketplace and
interest-rate trends.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the portfolio, which would enable us to take advantage of
opportunities when short-term supply increases. Generally, yields tend to rise
when there is an increase in new-issue supply competing for investor interest.
New securities are generally issued with maturities in the one-year range, which
in turn may lengthen the portfolio's average maturity. If we anticipate limited
new-issue supply, we may then look to extend the portfolio's average
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
maturity to maintain current yields for as long as we believe practical. At
other times, we try to maintain an average maturity that reflects our view of
short-term interest-rate trends and future supply-and-demand considerations.
What other factors influenced the fund's performance?
The fund was positively influenced over the past year by robust U.S. economic
growth and rising interest rates.
By the time the reporting period began on June 1, 1999, it had become apparent
that the pace of economic growth in the United States was higher than most
analysts expected. Consumer confidence reached a 30-year high, oil prices were
bouncing back from the previous year's lows and employment remained strong with
hourly wages rising. These economic forces raised concerns among fixed-income
investors that long-dormant inflationary pressures might reemerge. During the
reporting period, the Fed raised short-term interest rates six times for a total
interest-rate increase of 1.75 percentage points.
However, tax-exempt money market yields generally rose less in comparison to
taxable yields over the past 12 months. This was due to the fact that many of
the nation' s states and municipalities enjoyed higher tax revenues during the
reporting period. As a result, this lowered their need to borrow and resulted in
a reduced supply of securities.
What is the fund's current strategy?
While our strategy continues to involve active management of the portfolio's
weighted average maturity and asset mix according to our interest-rate and
supply-and-demand expectations, we believe that the current economic outlook is
uncertain. On one hand, many in the investment community believe that the Fed is
likely to raise short-term interest rates further at their next meeting in late
June. On the other hand, recent economic reports suggest that the economy may be
slowing in response to previous rate hikes, creating the possibility that the
current round of rate hikes may be over. In addition, June tends to
be a time of active issuance for many states and municipalities, which can
potentially lead to technical market influences that may have greater sway over
the markets than the Fed's monetary policy.
In the face of these uncertainties, we have recently adjusted the portfolio's
average weighted maturity so it is modestly longer than other federally
tax-exempt money market funds. This maturity management strategy was designed to
help us lock in then current prevailing yields while retaining the flexibility
required to act quickly if interest rates rise further.
Our asset mix currently emphasizes Variable Rate Demand Notes ("VRDNs") because
of the competitively high yields they offer. VRDNs generally feature adjustable
yields, short maturities and afford the portfolio a high degree of liquidity and
credit quality. We have also increased our holdings of insured municipal bonds,
pre-refunded securities with maturities in one year and tax-exempt commercial
paper. We have focused primarily on securities with maturities in the three- to
six-month range which we believe can help protect the fund's tax-exempt yield
but not drastically extend the fund's weighted average maturity. Of course,
portfolio composition is subject to change over time.
June 15, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES, AND SOME INCOME MAY
BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR THE U.S.
GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT
$1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
May 31, 2000
Principal
TAX EXEMPT INVESTMENTS--98.8% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ARIZONA--2.3%
Apache County Industrial Development Authority, IDR, VRDN
(Summerville Project)
4.15%, Series B (LOC; The Bank of New York) 13,700,000 (a) 13,700,000
Mesa Industrial Development Authority, Revenue, VRDN
(Discovery Health)
3.95%, Series B (Insured; MBIA and LOC; Chase
Manhattan Bank) 5,800,000 (a) 5,800,000
CALIFORNIA--5.2%
California Higher Education Loan Authority Inc., Student
Loan Revenue
3.20%, Series E-5, 6/1/2000
(LOC; Student Loan Marketing Association) 14,000,000 14,000,000
California School Cash Reserve Program Authority
4%, Series A, 7/3/2000 (Insured; AMBAC) 15,000,000 15,011,444
Student Education Loan Marketing Corporation, Student
Loan Revenue, Refunding, VRDN
4.40%, Series A (LOC; State Street Bank and Trust) 14,000,000 (a) 14,000,000
DELAWARE--2.3%
Delaware Economic Development Authority, Revenue, VRDN
(Hospital Billing Collection) 4.15%, Series B,
(Insured; MBIA and LOC; Morgan Stanley) 19,000,000 (a) 19,000,000
DISTRICT OF COLUMBIA--4.8%
District of Columbia, Revenue, VRDN
(George Washington University)
4.40%, Series B, (Insured; MBIA and LOC; Bank Of America) 14,000,000 (a) 14,000,000
District of Columbia Housing Finance Agency:
Mortgage Revenue 4.35%, Series B, 3/21/2001 13,000,000 13,000,000
SFMR 3.30%, Series B, 6/15/2000 (LOC; CDC Funding Corp.) 13,000,000 13,000,000
FLORIDA--4%
Capital Projects Finance Authority, Revenue, VRDN
(Capital Projects Loan Program)
4.30%, Series A (Insured; FSA and LOC; Credit Suisse) 19,500,000 (a) 19,500,000
Highlands County Health Facilities Authority, Revenue,
VRDN (Adventist Health System Sunbelt)
4.35%, Series A, (LOC; Suntrust Bank) 8,580,000 (a) 8,580,000
Miami Dade County Housing Finance Authority, Revenue
(Home Ownership Mortgage)
4.80%, Series A-2, 4/16/2001 (LOC; AIG Funding Inc.) 5,000,000 5,000,000
GEORGIA--2.6%
Dekalb County Housing Authority, MFHR,VRDN
(Forest Columbia Apartments Project)
4.45%, (LOC; First Tennessee Bank) 5,000,000 (a) 5,000,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA (CONTINUED)
Savannah Economic Development Authority, Revenue Exempt
Facilities, VRDN
(Home Depot Project) 4.45%, Series A
(Corp. Guaranty; Home Depot) 17,000,000 (a) 17,000,000
ILLINOIS--6.8%
City of Chicago, SFMR, 4.40%, Series B, 3/1/2001
(Insured; FGIC) 5,000,000 5,000,000
Glendale Heights, Multifamily Revenue, Refunding, VRDN
4.32% (LOC; Federal Home Loan Mortgage Corporation) 10,000,000 (a) 10,000,000
Illinois Development Finance Authority, PCR, VRDN
(Illinois Power Co.)
4.50%, Series C (LOC; Morgan Guaranty Trust Co.) 21,800,000 (a) 21,800,000
Illinois Health Facilities Authority, (Evansville Northwestern
Corp.) 4.75%, 5/31/2001 5,000,000 5,000,000
Lombard, MFHR, (Clover Creek) 4.05%, 12/15/2000
(LOC; Bank One of Arizona) 7,100,000 7,100,000
Madison County, EIR, VRDN (Shell Wood River Project)
4.55%, Series A (LOC; Shell Oil Co.) 4,200,000 (a) 4,200,000
University of Illinois, Revenues, VRDN (Merlots)
4.14%, Series S (Insured; MBIA and LOC; First Union Bank) 3,500,000 (a) 3,500,000
INDIANA--3.4%
Indiana Board Bank Advanced Funding Program 4.75%,
Series A-2, 1/18/2001 (LOC; Bank of America) 23,500,000 23,585,309
Whiting, Industrial Sewage & Solid Waste Disposal Revenue,
Refunding,VRDN
(Amoco Oil Company Project) 4.55%, (LOC; BP Amoco PLC) 5,000,000 (a) 5,000,000
IOWA--3.6%
Iowa School Cash Anticipation Program, Iowa School Corporation
4%, Series A, 6/23/2000 (Insured; FSA) 10,000,000 10,004,478
Louisa County, PCR, Refunding,VRDN (Iowa-Illinois Gas and
Electric) 4.35%, Series A 19,500,000 (a) 19,500,000
KANSAS--2.1%
Wichita:
PCR, Refunding, VRDN (CIC Industries Inc. Project)
4.625% (LOC; The Bank of New York) 5,000,000 (a) 5,000,000
Renewal and Improvement Temporary Notes
4.50%, 8/24/2000 12,000,000 12,014,622
KENTUCKY--3.4%
Kentucky Association of Counties Advance Revenue Cash
Flow Borrowing Program,
COP, TRAN 4%, 6/30/2000 10,000,000 10,004,211
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY (CONTINUED)
Ohio County, PCR, VRDN (Big Rivers Electric Corp.)
4.15% (Insured AMBAC and LOC; Credit Suisse) 10,000,000 (a) 10,000,000
Somerset, Industrial Building Revenue, VRDN
(Wonderfuel LLC Project)
4.30% (LOC; Bank of America) 7,920,000 (a) 7,920,000
LOUISIANA--1.7%
Ascension Parish, CP (BASF Corp.) 4.80%, 8/17/2000
(Corp Guaranty; BASF Corp.) 10,000,000 10,000,000
West Baton Rouge Parish Industrial District # 3, Revenue,
VRDN (Dow Chemical Co. Project)
4.60% (LOC; Dow Chemical Co.) 4,500,000 (a) 4,500,000
MARYLAND--2.1%
Carroll County, Revenue, VRDN (Fairhaven and Copper)
4.40%, Series B (BPA; Branch Banking and Trust and
Insured; Asset Guaranty) 9,290,000 (a) 9,290,000
State of Maryland Energy Finance Administration, SWDR,VRDN
(Cimenteries Project)
4.55% (LOC; Duetsche Bank) 8,000,000 (a) 8,000,000
MICHIGAN--1.2%
Birmingham, EDR, VRDN (Brown Association Project)
4.625% (LOC; Deutsche Bank) 1,880,000 (a) 1,880,000
Detroit Downtown Development Authority Revenue, Refunding,
VRDN (Millender Control Project)
4.50% (LOC; HSBC Bank USA) 7,000,000 (a) 7,000,000
Michigan Housing Development Authority, LOR, Refunding, VRDN
(Harbortown Limited Divide) 4.375%, (LOC; Deutsche Bank) 1,000,000 (a) 1,000,000
MINNESOTA--1.5%
City of Becker, PCR (Northern States Power Company)
4.15%, Series A, 8/11/2000 10,000,000 10,000,000
Cloquet, Industrial Facilities Revenue, VRDN
(Potlatch Corp. Project)
4.35%, Series C (LOC; Wachovia Bank and Trust Co.) 2,300,000 (a) 2,300,000
MISSOURI-1.2%
Saint Charles County Industrial Development Authority,
Industrial Revenue, Refunding, VRDN
(Country Club Apartments Project) 4.32% (LOC; Lasalle
National Bank) 10,000,000 (a) 10,000,000
NEBRASKA--1.6%
Nebhelp Incorporated, Revenue, Mutiple Mode Student Loan,
VRDN 4.20%, Series A (Insured; MBIA and
LOC; Student Loan Marketing Association) 12,995,000 (a) 12,995,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA--1.7%
Clark County, IDR, VRDN (Nevada Cogeneration Association 2)
4.55% (LOC; ABN-Amro Bank) 13,700,000 (a) 13,700,000
NEW HAMPSHIRE--1.2%
State of New Hampshire Business Financing Authority, IDR, VRDN
(Keeney Manufacturing Co. Project) 4.45% (LOC; Fleet Bank) 7,100,000 (a) 7,100,000
Strafford County, TAN 4.45%, 12/29/2000 2,500,000 2,500,689
NEW JERSEY--.6%
State of New Jersey, CP 4.05%, Series 2000-A, 6/15/2000
(Liquidity Facility: Bank of Nova Scotia, Commerzbank and
Toronto-Dominion Bank) 5,000,000 5,000,000
NEW MEXICO--1.2%
State of New Mexico, TRAN 4%, 6/30/2000 10,000,000 10,005,903
NEW YORK--4.3%
Metropolitan Transportation Authority, Transit Facilities
Revenue, CP
4.05%, Series 1, 9/1/2000 (LOC; ABN-Amro Bank) 20,000,000 20,000,000
City of New York Transitional Finance Authority, Revenue, BAN
4.75%, Series 3, 11/1/2000 6,800,000 6,809,599
Suffolk County, TAN
4.50%, Series 1, 8/10/2000 (LOC: Credit Local De France,
Landesbank, Westdueutsche Landes) 9,000,000 9,008,372
NORTH CAROLINA--1.3%
Craven County Industrial Facilities and Pollution Control
Financing Authority, VRDN
(Craven Wood Energy) 4.55%, Series C (LOC; ABN-Amro Bank) 4,100,000 (a) 4,100,000
Winston Salem,VRDN (Municipal Leasing Corp.)
4.50% (LOC; Wachovia Bank & Trust Company) 6,700,000 (a) 6,700,000
OHIO--4.3%
Lorain County, Independent Living Facilities Revenue,VRDN,
(Elyria United Methodist Project)
4.44% (LOC; Bank One Corp.) 6,835,000 (a) 6,835,000
Ohio Higher Educational Facility, CP
(Case Western Reserve University)
4.50%, 10/18/2000 (LOC; Bank One Corp) 10,000,000 10,000,000
Ohio Housing Finance Agency, Mortgage Revenue:
4.15%, Series C, 9/1/2000 5,000,000 5,000,000
4.05%, Series A-2, 9/1/2000 13,000,000 13,000,000
Sharonville, IDR, VRDN (Edgecomb Metals Co. Project)
4.25% (LOC; Wells Fargo Bank) 1,150,000 (a) 1,150,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--5.8%
Emmaus General Authority, Revenue,VRDN:
4.20%, Series O, (LOC; Goldman, Sachs and Co.) 7,000,000 (a) 7,000,000
4.15%, Series O, (Insured; FSA and LOC; First Union
National Bank) 8,000,000 (a) 8,000,000
Lancaster County Hospital Authority, Revenue, VRDN
(Masonic Homes)
4.15% ( Insured; AMBAC and LOC; PNC Bank) 22,740,000 (a) 22,740,000
Quakertown General Authority, Revenue,VRDN
(Pooled Financing Program)
4.15%, Series A (LOC; PNC Bank) 5,000,000 (a) 5,000,000
York General Authority, Pooled Financing Revenue, VRDN
4.40% (LOC; First Union National Bank) 5,000,000 (a) 5,000,000
SOUTH CAROLINA--1.7%
South Carolina Jobs Economic Development Authority, EDR,
VRDN (Wellman Inc. Project)
4.55% (LOC; Wachovia Bank and Trust Co.) 14,310,000 (a) 14,310,000
TENNESSEE--4.2%
Sevier County Public Building Authority, Local Government
Public Improvement, VRDN:
5.75%, Series B-2
(Insured; AMBAC and LOC; Krediet Bank) 460,000 (a) 460,000
4.30%, Series B-2
(Insured; AMBAC and LOC; Krediet Bank) 3,285,000 (a) 3,285,000
4.30%, Series II-C-1
(Insured; AMBAC and LOC; Krediet Bank) 6,000,000 (a) 6,000,000
4.30%, Series III-C-4
(Insured; AMBAC and LOC; Krediet Bank) 10,000,000 (a) 10,000,000
Shelby County, CP (Baptist Memorial Hospital):
4.65%, 11/17/2000 (LOC; Bank of America) 6,000,000 6,000,000
4.60%, 11/22/2000 (LOC; Bank of America) 9,000,000 9,000,000
TEXAS--13.6%
Austin, Utility Systems Revenue, Refunding
6%, 11/15/2000 (Insured; AMBAC) 4,000,000 4,034,440
Brazos River Authority, PCR, Refunding, VRDN
(Texas Utility Electric Co.)
4.25%, Series C (LOC; The Bank of New York) 10,000,000 (a) 10,000,000
Brazos River Harbor Naval District, VRDN:
Brazoria County Environmental Facility Revenue:
(Dow Chemical Project) 4.60%, Series B
(Corp. Guaranty; Dow Chemical Co.) 11,400,000 (a) 11,400,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Brazos River Harbor Naval District, VRDN (continued):
Brazoria County Environmental Facility Revenue:
(Merey Sweeny L.P. Project):
4.60%, Series A, (LOC; Chase Manhattan Bank) 6,200,000 (a) 6,200,000
4.60%, Series B (LOC; Citibank) 6,300,000 (a) 6,300,000
Revenue (Dow Chemical Project):
4.60% (Corp. Guaranty; Dow Chemical Co.) 10,000,000 (a) 10,000,000
4.60%, Series A (Corp. Guaranty; Dow Chemical Co.) 6,200,000 (a) 6,200,000
Gulf Coast Industrial Development Authority, SWDR, VRDN
(Citgo Petroleum Corp. Project)
4.60% ( LOC; Bank of America) 5,100,000 (a) 5,100,000
Gulf Coast Waste Disposal Authority, SWDR,VRDN
(Amoco Oil Company Project)
4.60% (Corp. Guaranty; BP Amoco PLC) 10,300,000 (a) 10,300,000
Houston, Water and Sewer Systems Revenue, CP
4.80%, Series A, 10/5/2000 (LOC: Bayerische Landesbank
and Westdeutsche Landes) 5,000,000 5,000,000
PanHandle-Plains Higher Education Authority Inc., Student
Loan Revenue VRDN
4.15%, Series A (LOC; Student Loan Marketing Association) 13,000,000 (a) 13,000,000
State of Texas, TRAN 4.50%, Series A, 8/31/2000 15,000,000 15,028,833
Texas Public Finance Authority, Revenue, CP
4.375%, Series A, 7/25/2000 10,300,000 10,300,000
UTAH--2.8%
Intermountain Power Agency, Power Supply Revenue, CP:
4%, Series B-2, 6/15/2000 (LOC: Bank of America and
Bank of Nova Scotia) 13,500,000 13,500,000
4.50%, Series B-5, 7/25/2000 (LOC: Bank of America and
Bank of Nova Scotia) 10,000,000 10,000,000
VIRGINIA--4.1%
Henrico County Economic Development Authority, Exempt
Facilities Revenue, VRDN Refunding
(White Oak Limited Project) 4.15% (LOC; Citibank) 18,000,000 (a) 18,000,000
Richmond Industrial Development Authority, Revenue, VRDN
(Cogentrix of Richmond Project)
4.60%, Series A (LOC; Banque Paribas) 10,000,000 (a) 10,000,000
State of Virginia Public School Authority, School Equipment
Financing 5%, 4/1/2000 6,015,000 6,041,348
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON--.8%
Washington Housing Finance Committtee, MFHR,VRDN
(Holly Village Senior Living)
4.40%, Series A (LOC; Federal National Mortgage Association) 6,600,000 (a) 6,600,000
WISCONSIN--.8%
Green Bay Area Public School District, BAN 4.90%, 4/13/2001 7,000,000 7,001,599
WYOMING--.6%
Wyoming Community Development Authority, Housing Revenue
3.538%, Series 4, 12/1/2000 5,090,000 5,061,322
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $819,949,150) 98.8% 819,957,169
CASH AND RECEIVABLES (NET) 1.2% 9,896,930
NET ASSETS 100.0% 829,854,099
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
BAN Bond Anticipation Notes
BPA Bond Purchase Agreement
COP Certificate of Participation
CP Commercial Paper
EDR Economic Development Revenue
EIR Environmental Improvement
Revenue
FGIC Federal Guaranty Insurance
Company
FSA Financial Security Assurance
IDR Industrial Development Revenue
LOC Letter of Credit
LOR Limited Obligation Revenue
MBIA Municipal Bond
Investors Assurance
Insurance Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage
Revenue
SWDR Solid Waste Disposal Revenue
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Note
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 95.7
AAA/AA(b) AAA/AA(b) AAA/AA(b) 4.0
Not Rated(c) Not Rated(c) Not Rated(c) .3
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF
THE ISSUERS.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 819,949,150 819,957,169
Cash 3,381,543
Interest receivable 6,899,991
Prepaid expenses and other assets 36,501
830,275,204
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 338,889
Accrued expenses and other liabilities 82,216
421,105
--------------------------------------------------------------------------------
NET ASSETS ($) 829,854,099
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 830,119,712
Accumulated net realized gain (loss) on investments (273,632)
Accumulated gross unrealized appreciation of investments 8,019
--------------------------------------------------------------------------------
NET ASSETS ($) 829,854,099
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(5 billion shares of $.001 par value Common Stock authorized) 831,895,461
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended May 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 31,758,649
EXPENSES:
Management fee--Note 2(a) 4,383,145
Shareholder servicing costs--Note 2(b) 765,036
Custodian fees 73,935
Professional fees 64,650
Directors' fees and expenses--Note 2(c) 56,634
Registration fees 30,192
Prospectus and shareholders' reports 28,007
Miscellaneous 20,372
TOTAL EXPENSES 5,421,971
INVESTMENT INCOME--NET 26,336,678
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($):
Net realized gain (loss) on investments 430
Net unrealized appreciation (depreciation) on investments 8,019
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 8,449
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 26,345,127
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended May 31,
-------------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 26,336,678 25,245,090
Net realized gain (loss) from investments 430 (117,565)
Net unrealized appreciation (depreciation)
of investments 8,019 1,071
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 26,345,127 25,128,596
-------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (26,336,678) (25,379,021)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 3,096,013,249 3,315,094,165
Dividends reinvested 15,349,550 14,582,815
Cost of shares redeemed (3,182,644,847) (3,332,016,091)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (71,282,048) (2,339,111)
TOTAL INCREASE (DECREASE) IN NET ASSETS (71,273,599) (2,589,536)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 901,127,698 903,717,234
END OF PERIOD 829,854,099 901,127,698
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended May 31,
------------------------------------------------------------------
2000 1999 1998 1997 1996
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<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .030 .027 .031 .029 .031
Distributions:
Dividends from investment income--net (.030) (.027) (.031) (.029) (.031)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.05 2.78 3.13 2.98 3.16
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .62 .63 .66 .65 ,64
Ratio of net investment income
to average net assets 3.00 2.73 3.08 2.94 3.11
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 829,854 901,128 903,717 1,024,649 950,598
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Municipal Money Market Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
maximize current income exempt from Federal income tax to the extent consistent
with the preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation (the "Manager") serves as the fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary
of Mellon Financial Corporation. Effective March 22, 2000, Dreyfus Service
Corporation (" DSC" ), a wholly-owned subsidiary of the Manager, became the
distributor of the fund's shares which are sold to the public without a sales
charge. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the
distributor.
It is the fund's policy to maintain a continuous net asset value per share of
$1.00; the fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the fund will be able to maintain a stable net asset value per share of
$1.00.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at amortized cost,
which has been determined by the fund's Board of Directors to represent the fair
value of the fund's investments.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Interest income, adjusted for amortization of
premiums and original issue discounts on investments, is earned from settlement
date and recognized on the accrual basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Cost of investments
represent amortized cost. Under the terms of the custody agreement, the fund
received net earnings credits of $40,114 based on available cash balances left
on deposit. Income earned under this arrangement is included in interest income.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain, if any, are normally declared and paid annually,
but the fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $251,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 2000. This amount is
calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, $4,000 expires in fiscal 2001, $49,000 expires in fiscal 2002,
$36,000 expires in fiscal 2003, $7,000 expires in fiscal 2004, $2,000 expires in
fiscal 2005, $21,000 expires in fiscal 2006, $130,000 expires in fiscal 2007
and $2,000 expires in fiscal 2008.
At May 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .50 of 1% of the value of the fund's average
daily net assets and is payable monthly.
(b) Under the Shareholder Services Plan, the fund reimburses DSC an amount not
to exceed an annual rate of .25 of 1% of the value of the fund's average daily
net assets for certain allocated expenses of providing personal services and/or
maintaining shareholder accounts. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the period
ended May 31, 2000, the fund was charged $446,774 pursuant to the Shareholder
Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended May 31, 2000, the fund was charged $233,400 pursuant to the transfer
agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Municipal Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities of Dreyfus
Municipal Money Market Fund, Inc., including the statement of investments, as of
May 31, 2000, and the related statement of operations for the year then ended,
the statement of changes in net assets for each of the two years in the period
then ended, and financial highlights for each of the years indicated therein.
These financial statements and financial highlights are the responsibility of
the fund' s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 2000 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Municipal Money Market Fund, Inc. at May 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the indicated years, in conformity with accounting principles generally accepted
in the United States.
New York, New York
July 6, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby designates all the dividends
paid from investment income-net during the fiscal year ended May 31, 2000 as
" exempt-interest dividends" (not generally subject to regular Federal income
tax).
NOTES
For More Information
Dreyfus
Municipal Money Market Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
One Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 910AR005
