ALLIANCE
MUNICIPAL
TRUST
- -CALIFORNIA PORTFOLIO
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1996
STATEMENT OF NET ASSETS
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
MUNICIPAL BONDS-84.5%
CALIFORNIA-84.5%
ALAMEDA COUNTY IDB
(Ream Enterprises Project)
Series A AMT VRDN*
$ 1,300 11/01/20 3.30% $ 1,300,000
ALAMEDA COUNTY IDR
(Heat Control Project)
Series '95A AMT VRDN*
4,800 11/01/25 3.30 4,800,000
ALAMEDA COUNTY TRAN
(Board of Education)
5,000 7/05/96 4.00 5,000,260
ALAMEDA COUNTY TRAN
(Unified School District)
4,335 7/05/96 3.58-4.00 4,335,302
ALAMEDA COUNTY TRAN
Series '96
2,600 6/30/97 3.95 2,613,676
CALIFORNIA ECON. DEV.
AUTHORITY IDR
(National R.V. Inc.)
Series '95 AMT VRDN*
4,000 12/01/20 3.45 4,000,000
CALIFORNIA ECON. DEV.
FIN. AUTHORITY
(Inland Empire Venture L.L.C.)
Series '95 AMT VRDN*
2,500 7/01/25 3.45 2,500,000
CALIFORNIA ECON. DEV.
FIN. AUTHORITY
(Valley Plating Works, Inc.)
Series '95 AMT VRDN*
6,100 10/01/20 3.45 6,100,000
CALIFORNIA HFA
(Home Mortgage)
Series '96D AMT PPB*
11,500 4/01/97 3.55 11,500,000
CALIFORNIA PCFA
(Western Waste Industries
Project) Series '94A AMT
VRDN*
9,600 10/01/06 3.10 9,600,000
CALIFORNIA PCFA SOLID WASTE
(Athens Disposal Co. Project)
Series '95 AMT VRDN*
5,000 1/01/16 3.40 5,000,000
CALIFORNIA PCFA SOLID WASTE
(Burrtec Waste Project)
Series A AMT VRDN*
4,000 10/01/02 3.45 4,000,000
CALIFORNIA PCFA SOLID WASTE
(Gilton Solid Waste
Management)
Series '95A AMT VRDN*
$ 2,900 12/01/05 3.40% $ 2,900,000
CALIFORNIA STATEWIDE
COMM. DEV. CORP. IDR
(Howard Leight & Associates)
Series '95B AMT VRDN*
3,500 7/01/20 3.40 3,500,000
CHULA VISTA IDR
(Home Depot Project)
VRDN*
2,900 12/01/10 3.20 2,900,000
CONTRA COSTA COUNTY MFHR
(Park Regency Apts.)
Series '92A AMT VRDN*
8,600 8/01/32 3.60 8,600,000
GRAND TERRACE MFHR
(Mt. Vernon Villas Project)
Series '85A VRDN*
3,535 12/01/11 3.40 3,535,000
LONG BEACH
Res. Rec.: Southeast Fac.
Authority Lease Rev.
Series '95B AMT VRDN*
22,500 12/01/18 3.60 22,500,000
LOS ANGELES COUNTY
GO TRAN
Series '95
10,000 7/01/96 3.65-3.80 10,000,000
LOS ANGELES COUNTY TRAN
(Community College Dist.)
3,000 7/31/96 3.95 3,001,304
LOS ANGELES HOUSING
AUTH. MFHR
(Sand Canyon Villas Project)
Series '89A AMT VRDN*
900 11/01/09 3.40 900,000
LOS ANGELES MFHR
(Poinsettia Apartment Project)
Series '89A AMT VRDN*
5,450 7/01/19 3.20 5,450,000
LOS ANGELES TRAN
(Unified School District)
10,500 7/03/96 3.90-3.95 10,500,306
MARIN COUNTY HOUSING
AUTHORITY MFHR
(Crest Marin ll Apt.)
Series A AMT VRDN*
9,450 10/15/29 3.40 9,450,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
MONROVIA REDEV. AGENCY
(Holiday Inn Hotel Project)
Series '84 VRDN*
$ 4,600 12/01/14 3.85% $ 4,600,000
MORGAN HILL REDEV. AGENCY
(Kent Trust) VRDN*
2,515 12/01/14 4.54 2,515,000
MORGAN HILL REDEV. AGENCY
(Nob Hill Venture
Investors) VRDN*
1,690 12/01/09 5.36 1,690,000
OCEANSIDE MFHR
(Riverview Springs Apts.)
Series '90A AMT VRDN*
15,200 7/01/20 3.80 15,200,000
ORANGE COUNTY HOUSING
AUTHORITY
(Costa Partner
Development) VRDN*
8,300 12/01/09 3.25 8,300,000
ORANGE COUNTY MFHR
(Alicia Viejo Project)
Series '86A AMT VRDN*
290 12/01/16 3.80 290,000
PANAMA BUENA VISTA
(Unified School District
Capital Improvement
Financing Project) VRDN*
5,000 6/01/24 3.25 5,000,000
RIVERSIDE COUNTY GO RAN
(School Financing
Authority) Series '96
4,000 7/17/97 4.05 4,023,040
RIVERSIDE COUNTY GO TRAN
Series '95
10,000 7/01/96 3.40 10,000,000
SACRAMENTO CITY TRAN
(Unified School District)
5,000 11/29/96 3.65 5,006,950
SACRAMENTO COUNTY
GO TRAN
11,500 10/04/96 3.50-3.77 11,529,775
SAN BERNARDINO COUNTY
GO TRAN
Series '95
5,000 7/05/96 3.95 5,000,289
SAN FRANCISCO IDR
(Hoefer Scientific Institute)
Series '92A AMT VRDN*
960 8/01/07 3.80 960,000
SAN JOSE TRAN
(Unified School District)
Series '95
$ 8,883 9/19/96 4.05% $ 8,896,045
SANTA ANA IDR
(Newport Electronics Project)
Series '88A AMT VRDN*
1,500 11/01/18 3.65 1,500,000
SANTA CLARA GO TRAN
(Unified School District)
Series '95
3,000 7/10/96 4.00 3,000,354
SANTA FE SPRINGS IDR
(Metal Center Inc. Project)
Series '89A AMT VRDN*
3,650 7/01/14 3.40 3,650,000
SOUTH COAST TRAN
Series '96A
10,000 6/30/97 4.07 10,064,900
UPLAND COMM. REDEV.
AGENCY MFHR
(Northwoods 156)
Series A VRDN*
4,925 3/01/14 3.80 4,925,000
UPLAND COMM. REDEV.
AGENCY MFHR
(Northwoods 168)
Series B VRDN*
1,460 3/01/14 3.80 1,460,000
Total Municipal Bonds
(amortized cost
$251,597,201) 251,597,201
COMMERCIAL PAPER-19.6%
CALIFORNIA-11.2%
CALIFORNIA PCFA PCR
(Pacific Gas & Electric)
Series '88A AMT
1,500 7/31/96 3.35 1,500,000
CALIFORNIA PCFA PCR
(Pacific Gas & Electric)
Series '88A AMT
1,200 8/08/96 3.40 1,199,838
CALIFORNIA PCFA PCR
(Pacific Gas & Electric)
Series '88D AMT
7,500 7/25/96 3.50 7,500,000
CALIFORNIA PCFA PCR
(Pacific Gas & Electric)
Series '88D AMT
5,395 7/25/96 3.70 5,395,000
2
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
IRVINE ASSESSMENT DISTRICT
Series '85-7
$ 5,000 7/09/96 3.35% $ 5,000,000
LONG BEACH
(Harbor & Terminal
Project) AMT
6,000 7/16/96 3.30 6,000,000
LOS ANGELES MTA
Sales Tax Revenue Series A
2,000 7/25/96 3.50 2,000,000
LOS ANGELES MTA
Sales Tax Revenue Series A
2,000 8/13/96 3.55 2,000,000
SACRAMENTO UTILITY
DISTRICT
Series I
2,637 7/30/96 3.45 2,637,000
33,231,838
PUERTO RICO-8.4%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
6,000 7/26/96 3.55 6,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
$ 6,000 8/16/96 3.60% $ 6,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
3,100 9/11/96 3.65 3,100,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
10,000 8/21/96 3.70 10,000,000
25,100,000
Total Commercial Paper
(amortized cost
$58,331,724) 58,331,838
TOTAL INVESTMENTS-104.1%
(amortized cost
$309,928,925) 309,929,039
Other assets less
liabilities-(4.1%) (12,066,598)
NET ASSETS-100%
(offering and redemption
price of$1.00 per share;
297,886,426 shares
outstanding) $297,862,441
+ All securities either mature or their interest rate changes in one year or
less.
* Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as the
prime interest rate). These instruments are payable on demand and are secured
by letters of credit or other credit support agreements from major banks.
Periodic Put Bonds (PPB) are payable on demand quarterly, semi-annually or
annually and their interest rates change less frequently than rates on Variable
Rate Demand Notes.
Glossary of Terms:
AMT Alternative Minimum Tax
GO General Obligation
HFA Housing Finance Agency/Authority
IDB Industrial Development Board
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
MTA Metropolitan Transportation Authority
PCFA Pollution Control Financing Authority
PCR Pollution Control Revenue
PPB Periodic Put Bond
RAN Revenue Anticipation Note
TRAN Tax & Revenue Anticipation Note
VRDN Variable Rate Demand Note
See notes to financial statements.
3
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $10,770,529
EXPENSES
Advisory fee (Note B) $1,419,915
Distribution assistance and
administrative service (Note C) 900,410
Transfer agency (Note B) 194,745
Custodian fees 80,352
Printing 27,473
Registration fees 17,273
Audit and legal fees 10,769
Trustees' fees 3,417
Miscellaneous 10,061
Total expenses 2,664,415
Less: fee waiver (28,398)
2,636,017
Net investment income 8,134,512
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments 8,350
Net change in unrealized appreciation of investments (6,990)
Net gain on investments 1,360
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 8,135,872
See notes to financial statements.
4
STATEMENTS OF CHANGES
IN NET ASSETS ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 8,134,512 $ 6,199,924
Net realized gain (loss) on investments 8,350 (12,411)
Net change in unrealized appreciation of
investments (6,990) 7,104
Net increase in net assets from operations 8,135,872 6,194,617
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (8,134,512) (6,199,924)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 61,381,700 16,811,556
Total increase 61,383,060 16,806,249
NET ASSETS
Beginning of year 236,479,381 219,673,132
End of year $297,862,441 $236,479,381
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Municipal Trust (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end investment company. The Fund
operates as a series company currently issuing seven classes of shares of
beneficial interest: Alliance Municipal Trust-General Portfolio, Alliance
Municipal Trust-New York Portfolio, Alliance Municipal Trust-California
Portfolio (the "Portfolio"), Alliance Municipal Trust-Connecticut Portfolio,
Alliance Municipal Trust-New Jersey Portfolio, Alliance Municipal
Trust-Virginia Portfolio and Alliance Municipal Trust-Florida Portfolio. Each
series is considered to be a separate entity for financial reporting and tax
purposes. As a matter of fundamental policy, each Portfolio pursues its
objectives by maintaining a portfolio of high-quality money market securities
all of which, at the time of investment, have remaining maturities of 397 days
or less. The following is a summary of significant accounting policies followed
by the Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity. Amortization of premium is charged to income.
Accretion of market discount is credited to unrealized gains.
2. TAXES
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if applicable,
to its shareholders. Therefore, no provisions for federal income or excise
taxes are required.
3. DIVIDENDS
The Portfolio declares dividends daily from net investment income and
automatically reinvests such dividends in additional shares at net asset value.
Net realized capital gains on investments, if any, are expected to be
distributed near year end. Dividends paid from net investment income for the
year ended June 30, 1996 are exempt from federal income taxes. However, certain
shareholders may be subject to the alternative minimum tax (AMT).
4. GENERAL
Interest income is accrued daily. Security transactions are recorded on the
date securities are purchased or sold. Realized gain (loss) from security
transactions is recorded on the identified cost basis.
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50 of 1% on the first $1.25 billion of average daily
net assets; .49 of 1% on the next $.25 billion; .48 of 1% on the next $.25
billion; .47 of 1% on the next $.25 billion; .46 of 1% on the next $1 billion;
and .45 of 1% in excess of $3 billion. The Adviser has agreed, pursuant to the
advisory agreement, to reimburse the Portfolio to the extent that its annual
aggregate expenses (excluding taxes, brokerage, interest and, where permitted,
extraordinary expenses) exceed 1% of its average daily net assets for any
fiscal year. The Adviser also voluntarily agreed to reimburse the Portfolio for
the year ended June 30, 1996 for expenses exceeding .93 of 1% of its average
daily net assets. No reimbursement was required for the year ended June 30,
1996. The Portfolio compensates Alliance Fund Services, Inc. (a wholly-owned
subsidiary of the Adviser) for providing personnel and facilities to perform
transfer agency services for the Portfolio. Such compensation amounted to
$144,803 for the year ended June 30, 1996.
6
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays a distribution fee to the Adviser at an
annual rate of up to .25 of 1% of the Portfolio's average daily net assets.
The Plan provides that the Adviser will use such payments in their entirety for
distribution assistance and promotional activities. For the year ended June 30,
1996, the distribution fee amounted to $709,958 of which $28,398 was waived. In
addition, the Portfolio reimbursed certain broker-dealers for administrative
costs incurred in connection with providing shareholder services, accounting,
bookkeeping, legal and compliance support.
For the year ended June 30, 1996, such payments by the Portfolio amounted to
$190,452 of which $95,500 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1996, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1996, the
Portfolio had a capital loss carryforward of $24,099, of which $11,688 expires
in the year 2002 and $12,411 expires in the year 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1996, capital paid-in aggregated $297,886,426. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1996 1995
--------------- -------------
Shares sold 1,207,086,940 865,677,866
Shares issued on reinvestments of dividends 8,134,512 6,199,924
Shares redeemed (1,153,839,752) (855,066,234)
Net increase 61,381,700 16,811,556
7
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
NOTE F: FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each year.
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
-----------------------------------------------------------------
1996 1995 1994 1993 1992
------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .029 .027 .018 .020 .032
LESS: DISTRIBUTIONS
Dividends from net investment income (.029) (.027) (.018) (.020) (.032)
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 2.91% 2.78% 1.83% 2.05% 3.26%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $297,862 $236,479 $219,673 $156,200 $121,317
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .93% .93% .93% .93% .95%
Expenses, before waivers and
reimbursements .94% 1.01% 1.02% 1.02% 1.05%
Net investment income (b) 2.86% 2.75% 1.82% 2.01% 3.18%
</TABLE>
(a) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(b) Net of expenses reimbursed or waived by the Adviser.
8
INDEPENDENT AUDITOR'S REPORT ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
We have audited the accompanying statement of net assets of the California
Portfolio of Alliance Municipal Trust as of June 30, 1996 and the related
statements of operations, changes in net assets, and financial highlights for
the periods indicated in the accompanying financial statements. These financial
statements and financial highlights are the responsibility of the Portfolio'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. Our procedures included confirmation of securities owned as of June
30, 1996, 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 the
California Portfolio of Alliance Municipal Trust as of June 30, 1996, and the
results of its operations, changes in its net assets, and its financial
highlights for the periods indicated, in conformity with generally accepted
accounting principles.
McGladrey & Pullen, LLP
New York, New York
July 26, 1996
9
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
TRUSTEES
DAVE H. WILLIAMS, CHAIRMAN
JOHN D. CARIFA
SAM Y. CROSS
CHARLES H.P. DUELL
WILLIAM H. FOULK, JR.
ELIZABETH J. MCCORMACK
DAVID K. STORRS
SHELBY WHITE
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
JOHN R. BONCZEK, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
ROBERT I. KURZWEIL, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
PATRICIA NETTER, SENIOR VICE PRESIDENT
RONALD R. VALEGGIA, SENIOR VICE PRESIDENT
DREW BIEGEL, VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
WILLIAM J. FAGAN, VICE PRESIDENT
JOSEPH R. LASPINA, VICE PRESIDENT
LINDA D. NEIL, VICE PRESIDENT
WILLIAM E. OLIVER, VICE PRESIDENT
RAYMOND J. PAPERA, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JOSEPH J. MANTINEO, CONTROLLER
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN, LLP
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
10
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
YIELDS. For current recorded yield information on Alliance
Municipal Trust, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 3 0 #
For non-touch-tone telephones, call toll-free (800) 221-9513
ALLIANCECAPITAL
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WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
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