General Minnesota Municipal Money Market Fund
ANNUAL REPORT November 30, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
15 Notes to Financial Statements
20 Report of Independent Auditors
21 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
General Minnesota Municipal Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for General Minnesota Municipal
Money Market Fund, covering the 12-month period from December 1, 1998 through
November 30, 1999. 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, Joseph Irace.
When the period began, the Federal Reserve Board had just completed a series of
short-term interest-rate cuts in an attempt to stimulate economic growth after
the spread of a global financial crisis in overseas markets. Its strategy
apparently worked, because signs of renewed economic strength in the U.S. and
abroad became evident early in 1999, fueling fears that inflationary pressures
might re-emerge. The Federal Reserve then reversed course, raising short-term
interest rates three times during the summer and fall of 1999, effectively
eliminating all of last fall's interest-rate cuts. Higher interest rates
generally led to higher yields on most money market securities, including
tax-exempt instruments.
We appreciate your confidence over the past year, and we look forward to your
continued participation in General Minnesota Municipal Money Market Fund
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
2
DISCUSSION OF FUND PERFORMANCE
Joseph Irace, Portfolio Manager
How did General Minnesota Municipal Money Market Fund perform during the period
For the 12-month period ended November 30, 1999, the fund's Class A shares
produced a tax-exempt yield of 2.65%, while Class B shares provided a tax-exempt
yield of 2.49%. Taking into account the effects of compounding, the fund's
effective yields were 2.68% and 2.52% for Class A and Class B shares,
respectively.(1) The fund's Class A and B shares provided total returns of 2.68%
and 2.52% , respectively.(2) These results compare to the Lipper Other States
Tax-Exempt Money Market Funds category average total return of 2.73% over the
same period.(3)
What is the fund's investment approach?
The fund seeks a high level of federal and Minnesota state tax-exempt income
while maintaining a stable $1.00 share price. We are especially vigilant in our
efforts to preserve capital.
In pursuing this objective, 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 Minnesota issuers. Second, we actively manage the
fund's average maturity in anticipation of interest-rate trends and
supply-and-demand changes in the short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the fund, which would enable us to purchase new securities
with higher yields. Yields tend to rise when there is an increase of new issue
supply competing for investor interest. New securities are generally issued with
maturities in the one-year range, which tend to lengthen the fund's weighted
average maturity. If we anticipate limited new issue supply, we may extend the
portfolio's average maturity to maintain current yields for as long as
practical. At
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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 affected by rising interest rates over the past year.
Soon after the reporting period began, it became apparent that the U.S. economy
was growing more strongly than most analysts expected, raising concerns that
inflationary pressures might re-emerge. In an attempt to forestall a
reacceleration of inflation, the Federal Reserve Board increased short-term
interest rates three times during the summer and fall of 1999. Because the
market anticipated these rate hikes before they were announced, tax-exempt money
market yields had already risen by the time the monetary policy changes were
actually implemented.
However, tax-exempt money market yields did not rise as much as comparable
taxable yields, primarily because of a relative lack of supply amid steady
investor demand. Many states and municipalities throughout the country,
including Minnesota, have enjoyed higher tax revenues during this period of
economic prosperity, which have enabled them to decrease their annual debt
borrowings.
What is the fund's current strategy?
We have continued to focus on very high quality, liquid money market instruments
from a wide array of issuers. Some of the most frequently used instruments
include Variable Rate Demand Notes (VRDNs), which are issued by investment banks
through the securitization of longer term municipal bonds. VRDNs can be redeemed
at the buyer's option after either one day or seven days, which affords the fund
a high degree of liquidity as well as high credit quality. Accordingly, as of
November 30, much of the portfolio was composed of VRDNs. The remainder was
comprised primarily of tax-exempt commercial paper and tax-exempt notes. Of
course, the portfolio's composition will change over time.
4
We took advantage of limited new issuance of tax-exempt notes in June and July,
which helped us lock in prevailing yields. The addition of notes also extended
the fund's average maturity to the long end of the neutral range, giving us the
ability to maintain competitive yields during the rest of the summer and much of
the fall, which was a period of low issuance. Accordingly, as of November 30,
the fund's average maturity was 52 days, which is toward the long end of the
neutral range.
As the end of the year approaches, we expect the fund's relatively long average
maturity to help protect the fund from any market disruptions that Y2K-related
or year-end factors may present.
December 15, 1999
(1) EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND REINVESTED
MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE
FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE
THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
(2) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS. INCOME MAY BE SUBJECT TO
STATE AND LOCAL TAXES FOR NON-MINNESOTA RESIDENTS, AND SOME INCOME MAY BE
SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS.
PERFORMANCE FIGURES PROVIDED FOR CLASS A AND CLASS B SHARES REFLECT THE
ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN
UNDERTAKING IN EFFECT THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY
TIME. HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S CLASS A AND CLASS B
RETURNS WOULD HAVE BEEN LOWER. WITHOUT THE EXPENSE ABSORPTION, THE FUND'S
CLASS A AND CLASS B SHARES WOULD HAVE PRODUCED TAX-EXEMPT YIELDS OF 2.49%
AND 2.01%, RESPECTIVELY, AND EFFECTIVE YIELDS OF 2.52% AND 2.03%,
RESPECTIVELY.
(3) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund 5
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STATEMENT OF INVESTMENTS
November 30, 1999
Principal
TAX EXEMPT INVESTMENTS--101.9% Amount ($) Value ($)
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Ankoa County, G.O. Notes 3.60%, Series C, 5/1/2000 340,000 340,000
Apple Valley, G.O. Notes 4.10%, 12/1/1999 165,000 165,000
Becker, PCR, Refunding, CP (Northern State Power Co.)
3.85%, 12/17/2000
(Corp. Guaranty; Northern State Power Co.) 2,000,000 2,000,000
Beltrami County, Environmental Control Revenue, VRDN
(Northwood Panelboard Co. Project)
3.85% (LOC; Union Bank of Switzerland). 2,100,000 (a) 2,100,000
Bemidji Independent School District Number 31,
Refunding 4.50%, 2/1/2000 200,000 200,463
Cloquet, Industrial Facilities Revenue, VRDN
(Potlatch Corp. Project)
4%, Series C (LOC; Wachovia Bank) 3,000,000 (a) 3,000,000
Cohasset, Revenue, Refunding, VRDN
(Minnesota Power and Light Co. Project):
3.70%, Series A (LOC; ABN-Amro Bank) 1,100,000 (a) 1,100,000
3.70%, Series B (LOC; ABN-Amro Bank) 300,000 (a) 300,000
3.70%, Series D (LOC; ABN-Amro Bank) 400,000 (a) 400,000
Coon Rapids, G.O. Notes 3.10%, Series A, 2/1/2000 195,000 194,966
Cottage Grove, Environmental Control Revenue, VRDN
(Minnesota Mining and Manufacturing)
4.08% (Corp. Guaranty; Minnesota Mining
and Manufacturing) 500,000 (a) 500,000
Dakota County Housing and Redevelopment Authority:
SFMR 5.50%, Series A, 10/1/2000 (LOC; FNMA) 40,000 40,000
VRDN, MFMR, Refunding
(Southview Gables Apartment Project)
3.95% (Corp. Guaranty; Northwestern Mutual Life) 1,500,000 (a) 1,500,000
Duluth, Tax Increment, G.O. Notes
3.30%, Series B, 2/1/2000 200,000 200,000
Duluth Economic Development Authority,
Health Care Facilities Revenue, Refunding,
VRDN (Miller Dwan Medical Center Project)
3.70% (LOC; Credit Locale de France) 2,500,000 (a) 2,500,000
East Central Solid Waste Commission,
Solid Waste, RRR, Refunding, VRDN
4.20% (Insured; FSA) 250,000 (a) 250,974
Eden Prairie, Commercial Development Revenue,
Refunding, VRDN
(Lakeview Business Center)
3.90% (LOC; Firstar Bank of Milwaukee) 1,400,000 (a) 1,400,000
6
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Edina, Housing Revenue, VRDN (Edina Park Plaza Project)
3.65% (LOC; FNMA) 1,500,000 (a) 1,500,000
Edina Independent School District Number 273, G.O. Notes
4%, Series B, 2/1/2000 1,000,000 1,001,656
Hennepin County, G.O. Notes 4%, Series B, 12/1/1999 600,000 600,000
Metropolitan Council, Minneapolis-St. Paul Metropolitan Area:
4.25%, Series B, 6/1/2000 300,000 300,794
G.O. Notes, Refunding 4.40%, 12/1/1999 400,000 400,000
Minneapolis:
G.O. Notes, Refunding 4.50%, 3/1/2000 1,100,000 1,104,024
MFHR, Refunding, VRDN (Rental-Hennepin)
4.05% (Corp. Guaranty; St. Paul Companies Inc.) 1,500,000 (a) 1,500,000
Minneapolis and St. Paul Housing and Redevelopment Authority,
Health Care Systems Revenue, Prerefunded
(Health One Obligation) 8%, 8/15/2000 200,000 209,591
Minnesota Higher Education Coordinating Board, Revenue, VRDN
3.95% Series B (LOC; Norwest Bank of Minnesota) 3,000,000 (a) 3,000,000
Minnesota Rural Water Finance Corporation (Public Projects)
4.25%, 9/1/2000 (LOC; CDC Funding Corp.) 1,225,000 1,227,301
New Hope Utility, G.O. Notes, 3.25%, Series A, 2/1/2000 200,000 200,000
North Branch Independent School District Number 138
5.20%, 2/1/2000 (Insured; FGIC) 150,000 150,412
Prior Lake Independent School District Number 719
3.10%, 3/24/2000 400,000 400,058
Rochester Health Care Facilities, Revenue
(Mayo Foundation/Mayo Medical Center):
3.55%, Series A, 12/7/1999
(Corp. Guaranty; Mayo Foundation) 1,000,000 1,000,000
3.85%, Series A, 2/10/2000
(Corp. Guaranty; Mayo Foundation) 1,000,000 1,000,000
Roseville Tax Increment, Refunding, G.O. Notes 4%, 3/1/2000 1,000,000 1,002,232
Saint Paul Housing and Redevelopment Authority, Revenue, VRDN
(District Cooling) 3.95%, Series L
(LOC; Credit Locale de France) 1,000,000 (a) 1,000,000
Saint Paul Independent School District Number 625, G.O. Notes
4.25%, Series B, 2/1/2000 700,000 701,090
Saint Paul Port Authority, IDR, VRDN (Ideal Printers Inc.)
4.05%, Series A (Corp. Guaranty; Marshall and Isley Corp.) 1,140,000 (a) 1,140,000
Saint Paul Special Assessment, G.O. Notes
4%, Series C, 4/1/2000 560,000 561,455
The Fund 7
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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Shoreview, Refunding, G.O. Notes 3.90%, Series D, 12/1/2000 260,000 259,675
Southern Municipal Power Agency, Power Supply
Systems Revenue, CP
(Power Supply System):
3.55%, Series B, 2/10/2000 (Liquidity Facility:
ABN-Amro Bank, Bank of Nova Scotia and
Credit Agricole-Indosuez) 1,000,000 1,000,000
3.85%, 2/10/2000 (Liquidity Facility: ABN-Amro Bank,
Bank of Nova Scotia and Credit Agricole-Indosuez) 500,000 500,000
3.65%, 3/7/2000 (Liquidity Facility: ABN-Amro Bank,
Bank of Nova Scotia and Credit Agricole-Indosuez) 500,000 500,000
Wadena, IDR, VRDN (Homecrest Industry Inc. Project)
4.05% (LOC; U.S. Bank of Minneapolis) 3,000,000 (a) 3,000,000
Winona Independent School District Number 861
3.80%, 9/30/2000 925,000 923,406
State of Minnesota:
G.O. Notes:
Various Purpose:
5.60%, 8/1/2000 340,000 346,176
6.60%, 8/1/2000 200,000 202,133
Refunding 5.20%, 8/1/2000 200,000 201,810
Prerefunded, Infrastructutre Development 7%, 8/1/2000 180,000 183,554
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TOTAL INVESTMENTS (cost $41,306,352) 101.9% 41,306,770
LIABILITIES, LESS CASH AND RECEIVABLES (1.9%) (789,711)
NET ASSETS 100.0% 40,517,059
</TABLE>
8
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<S> <C> <C> <C>
Summary of Abbreviations
CP Commercial Paper MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance RRR Resource Recovery Revenue
GO General Obligation SFMR Single Family Mortgage Reveue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 69.1
AAA/AA (b) Aaa/Aa (b) AAA/AA (b) 14.9
Not Rated (c) Not Rated (c) Not Rated (c) 16.0
100.0
A SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJEST 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 OR STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
D AT NOVEMBER 30, 1999, THE FUND HAD $10,640,000 (26.3% OF NET ASSETS)
INVESTED IN SECURITIES WHOSE PAYMENT OF PRINCIPAL AND INTEREST IS DEPENDENT
UPON REVENUES GENERATED FROM INDUSTRY.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 9
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 41,306,352 41,306,770
Cash 720,421
Interest receivable 281,213
Prepaid expenses 12,352
42,320,756
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 13,331
Payable for investment securities purchased 1,760,520
Accrued expenses 29,846
1,803,697
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NET ASSETS ($) 40,517,059
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 40,516,641
Accumulated net unrealized appreciation (depreciation) on investments 418
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NET ASSETS ($) 40,517,059
NET ASSET VALUE PER SHARE
Class A Class B
- --------------------------------------------------------------------------------
Net Assets ($) 106,346 40,410,713
Shares Outstanding 106,345 40,410,296
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NET ASSET VALUE PER SHARE ($) 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
10
STATEMENT OF OPERATIONS
Year Ended November 30, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 1,096,025
EXPENSES:
Management fee--Note 2(a) 166,440
Distribution fees (Class B)--Note 2(b) 66,156
Registration fees 53,466
Prospectus and shareholders' reports 15,555
Professional fees 14,755
Custodian fees 4,258
Directors' fees and expenses--Note 2(d) 1,695
Shareholder servicing costs--Note 2(c) 99,369
Miscellaneous 4,384
TOTAL EXPENSES 426,078
Less--reduction in management fee and shareholder servicing
costs due to undertakings--Note 2(a,c) (159,969)
NET EXPENSES 266,109
INVESTMENT INCOME--NET 829,916
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NET UNREALIZED GAIN (LOSS) ON INVESTMENTS ($) 418
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 830,334
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
---------------------------------
1999 1998(a)
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OPERATIONS ($):
Investment income--net 829,916 347,474
Net unrealized appreciation (depreciation) on
investments 418 --
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 830,334 347,474
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (5,752) (14,199)
Class B shares (824,164) (333,275)
TOTAL DIVIDENDS (829,916) (347,474)
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CAPITAL STOCK TRANSACTIONS ($1.00 PER SHARE):
Net proceeds from shares sold:
Class A shares 3,000 1,000,000
Class B shares 77,718,879 44,810,839
Dividends reinvested:
Class A shares 5,739 14,128
Class B shares 807,618 326,009
Cost of shares redeemed:
Class A shares (916,522) --
Class B shares (66,275,896) (16,977,153)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 11,342,818 29,173,823
TOTAL INCREASE (DECREASE) IN NET ASSETS 11,343,236 29,173,823
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NET ASSETS ($):
Beginning of Period 29,173,823 --
END OF PERIOD 40,517,059 29,173,823
A FROM JUNE 1, 1998 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
12
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information reflects financial results for a
single fund share. Total return shows how much your investment 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.
Year Ended November 30,
------------------------
CLASS A SHARES 1999 1998(a)
- -----------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00
Investment Operations:
Investment income--net .027 .014
Distributions:
Dividends from investment income--net (.027) (.014)
Net asset value, end of period 1.00 1.00
- -----------------------------------------------------------------------------
TOTAL RETURN (%) 2.68 2.81(b)
- -----------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA ($):
Ratio of expenses to average net assets .65 .65(b)
Ratio of net investment income
to average net assets 2.73 2.80(b)
Decrease reflected in above expense ratios
due to undertakings by the Manager .16 .76(b)
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Net Assets, end of period ($ X 1,000) 106 1,014
A FROM JUNE 1, 1998 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1998.
B ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 13
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended November 30,
----------------------
CLASS B SHARES 1999 1998(a)
- ------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00
Investment Operations:
Investment income--net .025 .013
Distributions:
Dividends from investment income--net (.025) (.013)
Net asset value, end of period 1.00 1.00
- ------------------------------------------------------------------------------
TOTAL RETURN (%) 2.52 2.67(b)
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .80 .80(b)
Ratio of net investment income
to average net assets 2.49 2.63(b)
Decrease reflected in above expense ratios
due to undertakings by the Manager .48 .87(b)
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Net Assets, end of period ($ X 1,000) 40,411 28,160
A FROM JUNE 1, 1998 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1998.
B ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
14
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
General Minnesota Municipal Money Market Fund (the "fund") is a separate
non-diversified series of General Municipal Money Market Funds, Inc. (the
"Company") which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company, currently offering two series, including the fund. The
fund's investment objective is to maximize current income exempt from Federal
and State of Minnesota income taxes 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
At November 30, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held 103,266 Class A shares.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund's shares, which are sold to the public without a sales load. The fund is
authorized to issue 4 billion shares of $.001 par value Common Stock. The fund
is currently authorized to issue two classes of shares: Class A (2 billion
shares authorized) and Class B (2 billion shares authorized). Class A shares and
Class B shares are identical except for the services offered to and the expenses
borne by each class and certain voting rights. Class B shares are subject to a
Distribution Plan adopted pursuant to Rule 12b-1 under the Act and, in addition,
Class B shares are charged directly for sub-accounting services provided by
Service Agents (a securities dealer, financial institution or other industry
professional) at an annual rate of .05% of the value of the average daily net
assets of Class B shares.
The Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The Fund 15
NOTES TO FINANCIAL STATEMENTS (continued)
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
represents amortized cost. Under the terms of the custody agreement, the fund
received net earnings credits of $4,847 during the period ended November 30,
1999 based on available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(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
16
extent that net realized capital gain can be offset by capital loss carryovers,
if any, 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.
At November 30, 1999, 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).
NOTE 2--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement ("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. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed
1 1/2% of the average value of the fund's net assets, the fund may deduct from
payments to be made to the Manager, or the Manager will bear such excess
expense. The Manager had undertaken through November 30, 1999 to reduce the
management fee paid by the fund, to the extent that the fund's aggregate annual
expenses (exclusive of certain expenses as described above) exceeded an annual
rate of .65 of 1% for Class A shares, of the value of the fund's average daily
net assets. The reduction in management fee, pursuant to the undertaking
amounted to $60,736 during the period ended November 30, 1999.
(b) Under the Distribution Plan with respect to Class B ("Class B Distribution
Plan"), adopted pursuant to Rule 12b-1 under the Act, Class B shares directly
bear the costs of preparing, printing and distributing prospectuses and
statements of additional information and of
The Fund 17
NOTES TO FINANCIAL STATEMENTS (continued)
implementing and operating the Class B Distribution Plan. In addition, Class B
shares reimburse the Distributor for payments made to third parties for
distributing their shares at an annual rate of .20 of 1% of the value of the
average daily net assets of Class B. During the period ended November 30, 1999,
Class B shares were charged $66,156 pursuant to the Distribution Plan.
(c) Under the Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares reimburse Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A 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 Class A shares and providing reports and other information,
and services related to the maintenance of shareholder accounts.
Under the Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan"), Class B shares pay the Distributor, for the
provision of certain services to the holders of Class B shares, at an annual
rate of .25 of 1% of the value of the average daily net assets of Class B
shares. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding Class B
shares and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of their services. The Distributor determines the
amounts to be paid to Service Agents.
The Manager had undertaken from December 1, 1998 through November 30, 1999, that
if the aggregate expenses of Class B shares, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceeded .80 of 1% of the
average daily net assets of Class B, the Manager will reimburse the expenses of
the fund under the Class B
18
Shareholder Services Plan to the extent of any excess expense and up to the full
fee payable under such Plan. During the period ended November 30, 1999, Class B
shares were charged $99,233 all of which was reimbursed by the Manager.
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 November 30, 1999, the fund was charged $81 pursuant to the transfer
agency agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
The Fund 19
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
General Minnesota Municipal Money Market Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of General Minnesota Municipal Money Market Fund
(one of the Series constituting General Municipal Money Market Funds, Inc.) as
of November 30, 1999, 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 generally accepted auditing
standards. 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 November 30, 1999 by correspondence with the custodian
and brokers. 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
General Minnesota Municipal Money Market Fund at November 30, 1999, and the
results of its operations for the year then ended and, the changes in its net
assets and the financial highlights for each of the periods indicated therein,
in conformity with generally accepted accounting principles.
[ERNST & YOUNG LLP SIGNATURE LOGO]
New York, New York
January 5, 2000
20
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 November 1999 as "
exempt-interest dividends" (not generally subject to regular Federal and, for
individuals who are Minnesota residents, Minnesota personal income taxes).
The Fund 21
For More Information
General Minnesota Municipal Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
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 917AR9911
General Municipal
Money Market Fund
ANNUAL REPORT November 30, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
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
20 Notes to Financial Statements
25 Report of Independent Auditors
26 Important Tax Information
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
General Municipal
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for General Municipal Money Market
Fund, covering the 12-month period from December 1, 1998 through November 30,
1999. 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 period began, the Federal Reserve Board had just completed a series of
short-term interest-rate cuts in an attempt to stimulate economic growth after
the spread of a global financial crisis in overseas markets. Its strategy
apparently worked, because signs of renewed economic strength in the U.S. and
abroad became evident early in 1999, fueling fears that inflationary pressures
might re-emerge. The Federal Reserve then reversed course, raising short-term
interest rates three times during the summer and fall of 1999, effectively
eliminating all of last fall's interest-rate cuts. Higher interest rates
generally led to higher yields on most money market securities, including
tax-exempt instruments.
We appreciate your confidence over the past year, and we look forward to your
continued participation in General Municipal Money Market Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
2
DISCUSSION OF FUND PERFORMANCE
Colleen Meehan, Portfolio Manager
How did General Municipal Money Market Fund perform during the period?
For the 12-month period ended November 30, 1999, the fund's Class A shares
produced a tax-exempt yield of 2.68%, while Class B shares provided a tax-exempt
yield of 2.29% . Taking into account the effects of compounding, the fund's
effective yields were 2.71% and 2.31% for Class A and Class B shares,
respectively.(1) The fund's Class A and B shares provided total returns of 2.71%
and 2.31%, respectively.(2) These results compare to the Lipper Tax-Exempt Money
Market Funds category average total return of 2.62% over the same period.(3)
The public offering of the fund's Class X shares commenced on June 1, 1999. From
June 1, 1999 through November 30, 1999, the fund's Class X shares produced an
annualized tax-exempt yield of 2.42% and an annualized effective yield of 2.45%
.(1)
What is the fund's investment approach?
The fund seeks a high level of federally tax-exempt income while maintaining a
stable $1.00 share price. We are especially vigilant in our efforts to preserve
capital.
In pursuing this objective, we employ two primary strategies. First, we attempt
to add value by constructing a diverse portfolio of high quality tax-exempt
money market instruments. Second, we actively manage the fund's average maturity
in anticipation of interest-rate trends and supply-and-demand changes in the
short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the fund, which would enable us to purchase new securities
with higher yields. Yields tend to rise when there is an increase of new issue
supply competing for investor interest. New securities are generally issued with
maturities in the one-year range, which tend to lengthen the fund's weighted
average maturity. If we antic
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
ipate limited new issue supply, we may extend the portfolio's average maturity
to maintain current yields for as long as 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 affected by rising interest rates over the past year.
Soon after the reporting period began, it became apparent that the U.S. economy
was growing more strongly than most analysts expected, raising concerns that
inflationary pressures might re-emerge. In an attempt to forestall a
reacceleration of inflation, the Federal Reserve Board increased short-term
interest rates three times during the summer and fall of 1999. Since the market
anticipated these rate hikes before they were announced, tax-exempt money market
yields had risen by the time the monetary policy changes were actually
implemented.
However, tax-exempt money market yields did not rise as much as comparable
taxable yields, primarily because of a relative lack of supply amid steady
investor demand. Many states and municipalities throughout the country have
enjoyed higher tax revenues during this period of economic prosperity, which
have enabled them to decrease their annual debt borrowings.
What is the fund's current strategy?
We have continued to focus on very high quality, liquid money market instruments
from a wide array of issuers. Some of the most frequently used instruments
include Variable Rate Demand Notes (VRDNs), which are issued by investment banks
through the securitization of longer term municipal bonds. Since VRDNs can be
redeemed at the buyer's option after either one day or seven days, they afford
the fund a high degree of liquidity as well as high credit quality. Accordingly,
as of November 30, much of the portfolio was composed of VRDNs. The remainder
was comprised primarily of tax-exempt commercial paper and tax-exempt notes. Of
course, the portfolio's composition will change over time.
4
We took advantage of new issuance of tax-exempt notes in June and July, which
effectively enabled us to lock in prevailing yields. The addition of notes also
extended the fund's average maturity to the long end of the neutral range,
giving us the ability to maintain competitive yields during the rest of the
summer, which is usually a period of low issuance and low rates. Accordingly,
since July, new purchases have been concentrated mostly in short-term commercial
paper, which we have used to replace notes that matured or were redeemed by
their issuers. This strategy has resulted in a gradual decrease in the fund's
average maturity, which gave us the flexibility we needed to purchase higher
yielding securities that became available during the last quarter of the year.
As the end of the year approaches, we have maintained a neutral weighted average
maturity in order to help protect the fund from any market disruptions that
Y2K-related or year-end factors may present.
December 15, 1999
(1) EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND REINVESTED
MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELD
FLUCTUATES. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE
FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE
THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND. PERFORMANCE FIGURES PROVIDED FOR CLASS B
AND CLASS X SHARES REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS
CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT MAY BE EXTENDED,
TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN ABSORBED,
THE FUND'S CLASS B AND CLASS X RETURNS WOULD HAVE BEEN LOWER. WITHOUT THE
EXPENSE ABSORPTION, THE FUND'S CLASS B SHARES WOULD HAVE PRODUCED A
TAX-EXEMPT YIELD OF 2.22% AND AN EFFECTIVE YIELD OF 2.24%, AND THE FUND'S
CLASS X SHARES WOULD HAVE PRODUCED AN ANNUALIZED TAX-EXEMPT YIELD OF 2.24%
AND AN ANNUALIZED EFFECTIVE YIELD OF 2.27%.
(2) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS. INCOME MAY BE SUBJECT TO
STATE AND LOCAL TAXES, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL
ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS.
3 SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund 5
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF INVESTMENTS
November 30, 1999
Principal
TAX EXEMPT INVESTMENTS--100.6% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA--7.0%
Apache County, Tucson Electric Power, Industrial Development
Authority, IDR, VRDN (Springerville Project)
4%, Series C (LOC; Societe Generale) 6,450,000 (a) 6,450,000
Arizona Educational Loan Marketing Corporation, Educational
Loan Revenue, VRDN
4%, Series A (BPA; Fuji Bank and Insured; MBIA) 10,675,000 (a) 10,675,000
Phoenix Industrial Development Authority, MFHR, Refunding,
VRDN (Southwest Village Apartments Project)
4% (LOC; FNMA) 10,600,000 (a) 10,600,000
Pima County Industrial Development Authority:
Industrial Revenue, VRDN (Tucson Electric)
3.90% (LOC; Toronto-Dominion Bank) 14,100,000 (a) 14,100,000
SFMR, Refunding
4.10%, Series B-3, 9/1/2000 4,820,000 4,820,000
CALIFORNIA-- 5.3%
California Higher Education Loan Authority,
Student Loan Revenue, Refunding:
3.18%, Series A, 5/1/2000
(LOC; National Westminster Bank) 8,000,000 8,000,000
3.50%, Series A-1, 7/1/2000
(LOC; Student Loan Marketing Association) 11,850,000 11,850,000
California School Cash Reserves Program Authority
4%, Series A, 7/3/2000 (Insured; AMBAC) 15,000,000 15,076,890
CONNECTICUT--1.1%
State of Connecticut Special Assessment Unemployment
Compensation Advance Fund, Revenue
(Connecticut Unemployment)
3.38%, Series C, 7/1/2000 (Insured; FGIC and
Liquidity Facility; FGIC) 7,000,000 7,000,000
DISTRICT OF COLUMBIA--1.8%
District of Columbia, Refunding, VRDN
3.85%, Series A-6 (LOC; National Westminster Bank) 6,900,000 (a) 6,900,000
District of Columbia General Fund Recovery, VRDN
4%, Series B-1 (LOC; Societe Generale) 5,000,000 (a) 5,000,000
FLORIDA--4.1%
Florida Housing Financing Agency:
Multi-Family, Refunding (Iowa Lakes Project)
3.25%, Series D, 4/1/2000 (LOC; Continental Casualty) 6,155,000 6,155,000
(Wood Forest II Project)
3.15%, Series BBB, 12/1/1999 (LOC; Continental Casualty) 6,000,000 6,000,000
6
Principal
TAX EXEMPT INVESTMENTS (continued) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
Hillsborough County Industrial Development Authority, PCR,
VRDN (Tampa Electric Co. Project)
3.90% (Corp. Guaranty; Tampa Electric Co.) 5,000,000 (a) 5,000,000
Jacksonville County, PCR, Refunding, VRDN
(Florida Light and Power Co. Project)
3.80% (Corp. Guaranty; Florida Light and Power Co.) 2,200,000 (a) 2,200,000
Sarasota County Public Hospital District, HR, CP
(Sarasota Memorial Hospital Project)
3.85%, 2/11/2000 (LOC; Sun Trust Bank) 8,000,000 8,000,000
GEORGIA--6.0%
Burke County Development Authority, PCR:
CP 3.90%, 1/1/2000 (Insured; AMBAC and
Liquidity Facility; Rabobank Netherland) 12,000,000 12,000,000
Refunding, VRDN (Ogelthorpe Power Corp.)
3.90%, Series A (BPA; Credit Locale de France and
Insured; FGIC) 7,900,000 (a) 7,900,000
Cobb County Housing Authority, MFHR, Refunding, VRDN
(Six Flags Association) 3.55% (LOC; FHLM) 5,490,000 (a) 5,490,000
Fulton County School District, Construction Sales, TAN
3.25%, 12/31/1999 9,000,000 9,001,576
Savannah Economic Development Authority,
Exempt Facility Revenue, VRDN (Home Depot Project)
4%, Series B (LOC; Sun Trust Bank) 5,000,000 (a) 5,000,000
ILLINOIS--7.4%
City of Chicago, 3.75%. 12/1/1999
(LOC; Morgan Guaranty Trust Co.) 7,500,000 7,500,000
Chicago Midway Airport, Revenue, VRDN (Second Lien)
3.85%, Series A (Insured; MBIA and
Liquidity Facility; FNB Chicago) 17,800,000 (a) 17,800,000
Illinois Health Facilities Authority, Revenue, VRDN:
(Carle Foundation) 3.90% (Insured; AMBAC and Liquidity
Facility; Banc One Capital) 10,000,000 (a) 10,000,000
(Rehab Institute of Chicago Project)
3.85% (LOC; Bank of America) 13,500,000 (a) 13,500,000
INDIANA--1.5%
Indiana Health Facility Financing Authority, Revenue, CP
(Ascension Health Credit) 3.80%, Series B, 2/9/2000 10,000,000 10,000,000
The Fund 7
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (continued) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA--2.4%
Iowa Finance Authority, SWDR, VRDN
(Cedar River Paper Co. Project)
3.95% (LOC; United Bank of Switzerland) 9,100,000 (a) 9,100,000
IOWA (CONTINUED)
Louisa County, PCR, Refunding (Midwest Power System Inc.
Project) 3.95%, 2/22/2000 7,000,000 7,000,000
KANSAS--.8%
Butler County, Solid Waste Disposal and Cogeneration Revenue,
VRDN (Texaco Refining and Marketing)
3.90%, Series B ( Corp. Guaranty; Texaco Inc.) 5,500,000 (a) 5,500,000
KENTUCKY--3.1%
Boone County, IDR, VRDN (Curtin Matheson Scientific Project)
4% (LOC; Toronto-Dominion Bank) 2,500,000 (a) 2,500,000
Kentucky Association of Counties, Advance Revenue/Cash Flow
Borrowing Program, COP, TRAN 4%, 6/30/2000 7,500,000 7,523,087
Kentucky Housing Corporation, Housing Revenue
3.20%, Series C, 12/31/1999 7,500,000 7,500,000
Kentucky State Turnpike Authority, EDR, Prerefunded
(Revitalization Project) 7.375%, 5/15/2000 2,900,000 2,987,789
LOUISIANA--3.3%
Ascension Parish, Revenue, VRDN
(BASF Corp. Project) 3.90% (Corp. Guaranty; BASF Corp.) 12,000,000 (a) 12,000,000
Saint Charles Parish, PCR, VRDN
(Shell Oil Co. Norco Project)
3.85% (Corp. Guaranty; Shell Oil Co.) 9,000,000 (a) 9,000,000
West Baton Rouge Parish Industrial District Number 3, Revenue,
VRDN (Dow Chemical Co. Project)
3.95% (Corp. Guaranty; Dow Chemical Co.) 1,000,000 (a) 1,000,000
MICHIGAN--3.6%
Michigan Strategic Fund, SWDR, VRDN (Grayling Generating
Project) 3.90% (LOC; Barclays Bank) 3,800,000 (a) 3,800,000
Midland County Economic Development Corporation,
Economic Development, LOR, VRDN (Dow Chemical Co. Project)
3.90%, Series A (Corp. Guaranty; Dow Chemical Co.) 19,900,000 (a) 19,900,000
MINNESOTA--1.3%
Beltrami County, Environmental Control Revenue, VRDN
(Northwood Panelboard Co. Project)
3.85% (LOC; Union Bank of Switzerland) 1,800,000 (a) 1,800,000
8
Principal
TAX EXEMPT INVESTMENTS (continued) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (CONTINUED)
Duluth Economic Development Authority, Health Care Facility
Revenue, Refunding, VRDN (Miller-Dwan Medical Center Project)
3.70% (LOC; Credit Local de France) 1,400,000 (a) 1,400,000
Minnesota Housing Finance Agency, Single Family Mortgage
3.20%, Series F, 6/1/2000 5,700,000 5,700,000
MISSISSIPPI--1.1%
Jackson County, Port Facility Revenue, Refunding
(Chevron USA Inc. Project) 3.85%, 5/1/2000
(Corp. Guaranty; Chevron USA Inc.) 7,300,000 7,300,000
MISSOURI--2.9%
Missouri Health and Educational Facilities Authority,
Health Facilities Revenue, VRDN
(Deaconess Long Term Care) 3.95%, Series A (LOC; Bank One) 9,395,000 (a) 9,395,000
Saint Charles County Industrial Development Authority,
Industrial Revenue, Refunding, VRDN
(Country Club Apartments Project)
3.84% (LOC; Phoenix Home Life) 10,000,000 (a) 10,000,000
NEVADA--3.3%
Nevada Housing Divided Unit, MFHR, VRDN (Silverado)
4.15%, Series A (LOC; FNMA) 6,710,000 (a) 6,710,000
Washoe County, Water Facilities Revenue, VRDN
(Sierra Pacific Power Co. Project) 3.90%
3.50% (LOC; Union Bank of Switzerland) 15,300,000 (a) 15,300,000
NEW HAMPSHIRE--.3%
New Hampshire Housing Finance Authority, SFMR
3.95%, Series C, 12/1/2000 2,000,000 2,000,000
NEW MEXICO--1.5%
State of New Mexico, TRAN 4%, 6/30/2000 10,000,000 10,043,155
NEW YORK--7.9%
Metropolitan Transit Authority, CP
3.80%, 4/6/2000 (LOC; ABN-Amro Bank) 9,000,000 9,000,000
New York City Municipal Water Finance Authority:
CP 3.70%, Series 5-A, 12/9/1999 (LOC: Bayerische
Landesbank, Landesbank Hessen-Thueringen and
Westdeutche Landesbank) 10,000,000 10,000,000
Water and Sewer System Revenue, VRDN:
3.80%, Series C (Insured; FGIC and Liquidity Facility; FGIC) 3,000,000 (a) 3,000,000
4%, Series A (Insured; FGIC and Liquidity Facility; FGIC) 3,000,000 (a) 3,000,000
The Fund 9
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (continued) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Housing Finance Agency, Housing Revenue,
VRDN (Normandie Court II) 3.70%, Series A (LOC; Fleet Bank) 3,900,000 (a) 3,900,000
New York State Power Authority, CP:
3.55%, Series 4, 12/1/1999 (Liquidity Facility: Bank of
New York, Bank of Nova Scotia, Bayerishe Landesbank,
Chase Manhattan Bank, Commerzbank,
Credit Locale de France, First Union National Bank,
Landesbank Hessen-Thuringen, Morgan Guaranty
Trust Co. and State Street Bank and Trust Co.) 10,100,000 10,100,000
New York State Power Authority, CP (continued):
3.60%, Series 4, 12/7/1999 (Liquidity Facility: Bank of
New York, Bank of Nova Scotia, Bayerishe Landesbank,
Chase Manhattan Bank, Commerzbank,
Credit Locale de France, First Union National Bank,
Landesbank Hessen-Thuringen, Morgan Guaranty
Trust Co. and State Street Bank and Trust Co.) 10,000,000 10,000,000
Port Authority of New York and New Jersey, Special
Obligation Revenue, VRDN (Versatile Structure Obligation)
3.85%, Series 4 (LOC; Landesbank Hessen-Thuringen) 3,000,000 (a) 3,000,000
NORTH CAROLINA--.9%
Craven County Industrial Facilities and Pollution Control Financing
Authority, VRDN (Craven Wood Energy)
3.80%, Series C (LOC; ABN-Amro Bank) 6,000,000 (a) 6,000,000
OHIO--3.5%
Ohio Housing Finance Agency, Mortgage Revenue (Residential)
3.05%, Series A-2, 3/1/2000 13,000,000 13,000,000
Summit County, BAN 3.80%, Series A, 6/1/2000 10,000,000 10,029,059
PENNSYLVANIA--4.2%
Beaver County Industrial Development Authority, PCR,
Refunding, VRDN (Duquesne Limited Co.-Manfield)
4%, Series B (LOC; Barclays Bank) 6,700,000 (a) 6,700,000
Emmaus General Authority, Revenue, VRDN
3.90% (Insured; FSA and Liquidity Facility; Credit Suisse) 11,100,000 (a) 11,100,000
Lancaster County Hospital Authority, Health Center Revenue,
VRDN (Masonic Homes)
3.90% (Insured; AMBAC and Liquidity Facility; PNC Bank) 10,000,000 (a) 10,000,000
RHODE ISLAND--1.7%
Rhode Island Industrial Facilities Corporation, IDR, VRDN
(Cololey Inc. Project) 4.05% (LOC; Royal Bank of Scotland) 3,300,000 (a) 3,300,000
Rhode Island Student Loan Authority, Student Loan Revenue,
VRDN 3.90%, Series 1 (LOC; State Street Bank and Trust Co.) 8,000,000 (a) 8,000,000
10
Principal
TAX EXEMPT INVESTMENTS (continued) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--.7%
South Carolina Jobs Economic Development Authority, EDR,
VRDN (Wellman Inc. Project) 3.90% (LOC; Wachovia Bank and
Trust Co.) 4,900,000 (a) 4,900,000
TENNESSEE--2.3%
Sevier County Public Building Authority, VRDN
Local Government Public Improvement):
3.85%, Series III-C-2 (Insured; AMBAC and Liquidity Facility;
Landesbank-Hessen) 10,200,000 (a) 10,200,000
TENNESSEE (CONTINUED)
Sevier County Public Building Authority, VRDN
Local Government Public Improvement) (continued):
3.85%, Series III-C-3 (Insured; AMBAC and Liquidity Facility;
Landesbank-Hessen) 4,800,000 (a) 4,800,000
TEXAS--17.2%
Brazos River Authority, PCR, Refunding, VRDN
(Texas Utilities Electric Co.):
3.90%, Series A (LOC; Morgan Guaranty Tr. Co.) 8,700,000 (a) 8,700,000
3.90%, Series C (BPA; The Bank of New York and
Insured; MBIA) 13,700,000 (a) 13,700,000
3.95%, Series C (LOC; The Bank of New York) 20,000,000 (a) 20,000,000
Brazos River Harbor Naval District, Harbor Revenue, VRDN
(BASF Corp.) 3.95% (Corp. Guaranty; BASF Corp.) 6,500,000 (a) 6,500,000
Dallas County, Permanent Improvement
3.30%, Series C, 6/15/2000
(Liquidity Facility; Union Bank of Switzerland) 6,500,000 6,500,000
Gulf Coast Industrial Development Authority, VRDN,
Marine Terminal Revenue (Amoco Oil Co. Project)
3.85% (Corp. Guaranty; Amoco Credit Corp.) 13,700,000 (a) 13,700,000
Gulf Coast Waste Disposal Authority, VRDN:
Environmental Facilities Revenue (Amoco Oil Co. Project)
3.85% (Corp. Guaranty; Amoco Credit Corp.) 3,000,000 (a) 3,000,000
Solid Waste Disposal Revenue (Amoco Oil Co. Project)
3.85% (Corp. Guaranty; Amoco Credit Corp.) 7,000,000 (a) 7,000,000
Panhandle-Plains Higher Education Authority,
Student Loan Revenue, Refunding, VRDN
3.85%, Series A (LOC; Student Loan Marketing Association) 12,700,000 (a) 12,700,000
State of Texas, TRAN 4.50%, Series A, 8/31/2000 10,000,000 10,057,878
Texas Department of Housing and Community Affairs,
Mortgage Revenue (Residential)
3.90%, Series B-2, 5/1/2000 7,000,000 7,000,000
The Fund 11
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (continued) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Texas Public Finance Authority, Revenue, CP
3.85%, Series A, 4/5/2000 5,000,000 5,000,000
UTAH--1.4%
Intermountain Power Agency, Power Supply Revenue, CP
3.80%, 3/9/2000 (Liquidity Facility: Bank of America and
Bank of Nova Scotia) 9,000,000 9,000,000
VIRGINIA--2.0%
Hopewell Industrial Development Authority, Revenue, VRDN
(Hadson Power 13) 3.90%, Series A (LOC; Credit Suisse) 3,200,000 (a) 3,200,000
VIRGINIA (CONTINUED)
Richmond Industrial Development Authority, Revenue, VRDN
(Cogentrix of Richmond Project)
4.10%, Series A (LOC; Banque Paribas) 10,000,000 (a) 10,000,000
WEST VIRGINIA--1.0%
Marion County, Community Solid Waste Disposal Facility
Revenue, VRDN
(Granttown Project) 3.95%, Series B
(LOC; National Westminster Bank) 3,700,000 (a) 3,700,000
Pendleton County, IDR, VRDN
(Greer Steel Project) 4.10% (LOC; PNC Bank) 2,715,000 (a) 2,715,000
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $665,979,434) 100.6% 665,979,434
LIABILITIES, LESS CASH AND RECEIVABLES (.6%) (4,025,376)
NET ASSETS 100.0% 661,954,058
</TABLE>
12
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Summary of Abbreviations
AMBAC American Municipal Bond Assurance LOC Letter of Credit
Corporation LOR Limited Obligation Revenue
BAN Bond Anticipation Notes MBIA Municipal Bond Investors Assurance
BPA Bond Purchase Agreement Insurance Corporation
COP Certificate of Participation MFHR Multi-Family Housing Revenue
CP Commercial Paper PCR Pollution Control Revenue
EDR Economic Development Revenue SFMR Single Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company SWDR Solid Waste Disposal Revenue
FHLM Federal Home Loan Mortgage TAN Tax Anticipation Notes
FNMA Federal National Mortgage Association TRAN Tax and Revenue Anticipation
FSA Financial Security Assurance Notes
HR Hospital Revenue VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
F1+F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 94.6
AAA/AA(b) Aaa/Aa, A1(b) AAA/AA(b) 5.4
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.(
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF THE ISSUERS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 13
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 665,979,434 665,979,434
Cash 1,512,770
Interest receivable 3,734,973
Prepaid expenses 48,960
671,276,137
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 267,101
Due to Distributor 10,471
Payable for investment securities purchased 9,000,000
Accrued expenses and other liabilities 44,507
9,322,079
- --------------------------------------------------------------------------------
NET ASSETS ($) 661,954,058
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 661,966,083
Accumulated net realized gain (loss) on investments (12,025)
- --------------------------------------------------------------------------------
NET ASSETS ($) 661,954,058
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class X
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 285,848,876 376,104,182 1,000
Shares Outstanding 286,140,555 376,105,803 1,000
NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
14
STATEMENT OF OPERATIONS
Year Ended November 30, 1999
- --------------------------------------------------------------------------------
Investment Income ($):
INTEREST INCOME 21,284,873
EXPENSES:
Management fee--Note 2(a) 3,259,585
Shareholder servicing costs--Note 2(c) 1,300,239
Distribution fees (Class B and Class X)--Note 2(b) 778,359
Professional fees 76,419
Custodian fees 64,748
Registration fees 61,652
Directors' fees and expenses--Note 2(d) 33,611
Prospectus and shareholders' reports 23,944
Miscellaneous 19,691
TOTAL EXPENSES 5,618,248
Less--reduction in shareholder servicing costs due to
undertaking--Note 2(c) (268,658)
NET EXPENSES 5,349,590
INVESTMENT INCOME--NET 15,935,283
- --------------------------------------------------------------------------------
Net Realized Gain (Loss) on Investments--Note 1(b) ($) 7,897
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 15,943,180
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 15
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
---------------------------------
1999(a) 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 15,935,283 16,844,414
Net realized gain (loss) on investments 7,897 (17,137)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 15,943,180 16,827,277
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (7,034,104) (8,462,642)
Class B shares (8,901,177) (8,381,772)
Class X shares (2) --
Net realized gain on investments:
Class A shares -- (5,225)
Class B shares -- (5,196)
TOTAL DIVIDENDS (15,935,283) (16,854,835)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares 1,238,026,201 1,327,446,611
Class B shares 1,689,638,089 1,660,435,145
Class X shares 1,000 --
Dividends reinvested:
Class A shares 6,758,293 8,202,286
Class B shares 8,719,782 8,193,899
Cost of shares redeemed:
Class A shares (1,239,336,213) (1,328,295,655)
Class B shares (1,699,894,974) (1,553,986,658)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 3,912,178 121,995,628
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,920,075 121,968,070
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 658,033,983 536,065,913
END OF PERIOD 661,954,058 658,033,983
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999
FOR CLASS X SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information reflects financial results for a
single fund share. 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.
Year Ended November 30,
--------------------------------------------
CLASS A SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .027 .030 .031 .029 .034
Distributions:
Dividends from investment income--net (.027) (.030) (.031) (.029) (.034)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.71 3.02 3.14 2.97 3.41
- ------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .58 .60 .62 .66 .66
Ratio of net investment income
to average net assets 2.68 2.98 3.09 2.93 3.35
- ------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 285,849 280,398 273,058 256,862 294,379
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 17
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended November 30,
--------------------------------------------
CLASS B SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .023 .026 .028 .027 .020
Distributions:
Dividends from investment income--net (.023) (.026) (.028) (.027) (.020)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.31 2.64 2.86 2.70 3.01(b)
- ------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .98 .96 .95 .85 1.10(b)
Ratio of net investment income
to average net assets 2.29 2.59 2.87 2.65 2.83(b)
Decrease reflected in above expense ratios
due to undertakings by the Manager .07 .09 .16 .29 .09(b)
- ------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 376,104 377,636 263,008 17,491 3,024
(A) FROM MARCH 31, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1995
(B) ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
Year Ended November 30,
-------------------------
CLASS X SHARES 1999(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00
Investment Operations:
Investment income--net .012
Distributions:
Dividends from investment income--net (.012)
Net asset value, end of period 1.00
- --------------------------------------------------------------------------------
TOTAL RETURN (%) 2.43(b)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(b)
Ratio of net investment income
to average net assets 2.22(b)
Decrease reflected in above expense ratios
due to undertakings by the Manager .18(b)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1
A FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999 FOR
CLASS X SHARES.
B ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 19
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
General Municipal Money Market Fund (the "fund") is a separate diversified
series of General Municipal Money Market Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company,
currently offering two series, including the fund. 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.
On April 14, 1999, the Board of Directors approved the addition of Class X
shares which became effective June 1, 1999.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund's shares, which are sold to the public without a sales load. The fund is
authorized to issue 16.5 billion shares of $.001 par value Common Stock. The
fund is currently authorized to issue three classes of shares: Class A (15
billion shares authorized) , Class B (1 billion shares authorized) and Class X
shares (500 million shares authorized) . Class A shares, Class B and Class X
shares are identical except for the services offered to and the expenses borne
by each class and certain voting rights. Class B and Class X shares are subject
to a Distribution Plan adopted pursuant to Rule 12b-1 under the Act and, in
addition, Class B shares are charged directly for sub-accounting services
provided by Service Agents (a securities dealer, financial institution or other
industry professional) at an annual rate of .05% of the value of the average
daily net assets of Class B shares.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
20
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
represents amortized cost. Under the terms of the custody agreement, the fund
received net earnings credits of $32,154 during the period ended November 30,
1999 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 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, if 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
The Fund 21
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $9,000 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to November 30, 1999. If not applied, the
carryover expires in fiscal 2006.
At November 30, 1999, 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).
NOTE 2--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement ("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. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed 1
1/2% of the average value of the fund's net assets, the fund may deduct from
payments to be made to the Manager, or the Manager will bear such excess
expense. During the period ended November 30, 1999, there was no expense
reimbursement pursuant to the Agreement.
(B) Under the Distribution Plan (the "Plan") with respect to Class B ("Class B
Distribution Plan") and Class X ("Class X Distribution Plan") adopted pursuant
to Rule 12b-1 under the Act, Class B and Class X shares directly bear the costs
of preparing, printing and distributing prospectuses and statements of
additional information and of implementing and operating the Plan. In addition,
Class B and Class X shares reimburse the Distributor for payments made to third
parties for distributing their shares at an annual rate of .20 of 1% and .25 of
1% , respectively, of the value of their average daily net assets. During
22
the period ended November 30, 1999, Class B and Class X shares were charged
$778,357 and $2, respectively, pursuant to the Plan.
(C) Under the Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares reimburse Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A 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 Class A shares and providing reports and other information,
and services related to the maintenance of shareholder accounts. During the
period ended November 30, 1999, Class A shares were charged $64,999 pursuant to
the Class A Shareholder Services Plan.
Under the Shareholder Services Plan with respect to Class B and Class X ("Class
B and Class X Shareholder Services Plans") Class B and Class X shares pay the
Distributor for the provision of certain services to the holders of Class B and
Class X shares, at an annual rate of .25 of 1% of the value of their average
daily net assets. The services provided may include personal services relating
to shareholder accounts, such as answering shareholder inquiries regarding Class
B and Class X shares and providing reports and other information, and services
related to the maintenance of shareholder accounts. The Distributor may make
payments to Service Agents in respect of their services. The Distributor
determines the amounts to be paid to Service Agents.
The Manager had undertaken from December 1, 1998 through November 30, 1999, that
if the aggregate expenses of Class B and Class X shares, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceeded .98 of 1%
for Class B shares and 1.05% for Class X shares, of their average daily net
assets, the Manager will reimburse the expenses of the fund under the Class B
and Class X Shareholder Services Plans to the extent of any excess expense and
The Fund 23
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
up to the full fee payable under the Class B and Class X Shareholder Services
Plans. During the period ended November 30, 1999, $1,167,536 and $1,
respectively, were charged pursuant to the Class B and Class X Shareholder
Services Plans, of which $268,657 and $1, respectively, were reimbursed by the
Manager.
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 November 30, 1999, the fund was charged $35,723 pursuant to the transfer
agency agreement.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
24
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
General Municipal Money Market Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of General Municipal Money Market Fund (one of the
Series constituting General Municipal Money Market Funds, Inc.) as of November
30, 1999, 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 generally accepted auditing
standards. 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 November 30, 1999 by correspondence with the custodian
and brokers. 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
General Municipal Money Market Fund at November 30, 1999, 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 generally accepted accounting
principles.
[ERNST & YOUNG LLP SIGNATURE LOGO]
New York, New York
January 5, 2000
The Fund 25
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 November 30, 1999
as "exempt-interest dividends" (not generally subject to regular Federal income
tax).
NOTES
For More Information
General Municipal Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
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 918AR9911
