ALLIANCE MUNICIPAL TRUST -CALIFORNIA PORTFOLIO
ALLIANCE CAPITAL
ANNUAL REPORT
JUNE 30, 1997
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CALIFORNIA MUNICIPAL BONDS-79.3%
ALAMEDA COUNTY IDB
(Ream Enterprises Project)
Series A AMT VRDN(a)
$ 2,150 11/01/20 4.20% $ 2,150,000
ALAMEDA COUNTY IDR
(Heat Control Project) Series '95A
AMT VRDN(a)
5,200 11/01/25 4.20 5,200,000
ALAMEDA COUNTY IDR
(JMS Family Partnership Project)
Series '95A AMT VRDN(a)
2,730 10/01/25 4.20 2,730,000
ALAMEDA COUNTY TRAN
(Board of Education) Series '96
7,000 7/01/97 4.04 7,000,000
CALIFORNIA COMMUNITY COLLEGE TRAN
Series A
5,000 7/02/97 3.90 5,000,097
CALIFORNIA ECONOMIC
DEVELOPMENT AUTHORITY
(Marko Foam Products Inc.)
Series '96 AMT VRDN(a)
2,945 10/1/26 4.35 2,945,000
CALIFORNIA ECONOMIC
DEVELOPMENT AUTHORITY
(Pioneer Converting Inc.)
AMT VRDN(a)
2,090 4/01/16 4.20 2,090,000
CALIFORNIA ECONOMIC
DEVELOPMENT AUTHORITY IDR
(National R.V. Inc.)
Series '95 AMT VRDN(a)
4,000 12/01/20 4.35 4,000,000
CALIFORNIA ECONOMIC DEVELOPMENT
FINANCE AUTHORITY
(Inland Empire Venture L.L.C.)
Series '95 AMT VRDN(a)
2,500 7/01/25 4.15 2,500,000
CALIFORNIA ECONOMIC DEVELOPMENT
FINANCE AUTHORITY
(Valley Plating Works, Inc.)
Series '95 AMT VRDN(a)
6,025 10/01/20 4.35 6,025,000
CALIFORNIA HFA MFHR
Series '97B AMT VRDN(a)
2,100 8/01/39 4.20 2,100,000
CALIFORNIA HFA SFMR
(Home Mortgage Revenue) Series '96J
AMT PPB(a)
14,000 8/01/28 4.00 14,000,000
CALIFORNIA PCFA
(Colmac Energy Project)
Series B AMT VRDN(a)
2,400 12/01/16 3.95 2,400,000
CALIFORNIA PCFA
(Contra Costa Waste Services)
Series A AMT VRDN(a)
4,725 12/01/10 4.00 4,725,000
CALIFORNIA PCFA
(CR & R Inc. Project)
Series '95A AMT VRDN(a)
4,385 10/01/10 4.05 4,385,000
CALIFORNIA PCFA
(Edco Disposal Corp. Project)
Series '96A AMT VRDN(a)
3,000 10/01/16 4.05 3,000,000
CALIFORNIA PCFA
(Sanger Project)
Series '90A AMT VRDN(a)
3,300 9/01/20 3.95 3,300,000
CALIFORNIA PCFA
(Sanifill Inc. Project)
Series '94A AMT VRDN(a)
300 8/01/07 3.90 300,000
CALIFORNIA PCFA
(Santa Fe Geothermal Inc.)
Series '83 VRDN(a)
2,400 9/01/13 3.65 2,400,000
1
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CALIFORNIA PCFA
(Taormina Inds. Inc. Project)
Series '96A AMT VRDN(a)
$ 2,500 8/01/16 4.15% $ 2,500,000
CALIFORNIA PCFA SOLID WASTE
(Athens Disposal Co. Project)
Series '95A AMT VRDN(a)
5,000 1/01/16 4.05 5,000,000
CALIFORNIA PCFA SOLID WASTE
(Burrtec Waste Project)
Series '95A AMT VRDN(a)
3,500 10/01/02 4.05 3,500,000
CALIFORNIA PCFA SOLID WASTE
(California Waste Recovery Project)
Series '96A AMT VRDN(a)
1,815 10/01/06 4.05 1,815,000
CALIFORNIA PCFA SOLID WASTE
(Calsan Inc. Project)
Series '96A AMT VRDN(a)
6,700 12/01/11 4.05 6,700,000
CALIFORNIA PCFA SOLID WASTE
(Gilton Solid Waste Management)
Series '95A AMT VRDN(a)
2,600 12/01/05 3.85 2,600,000
CALIFORNIA SCHOOL CASH RESERVE
Series A
15,000 7/02/97 4.01 15,000,288
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Lance Camper Project)
Series '94B AMT VRDN(a)
3,835 12/01/14 4.10 3,835,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT CORP.
(Pacific Bearings Company Project)
Series '96L AMT VRDN(a)
2,560 10/01/06 4.15% $2,560,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT CORP. IDR
(Howard Leight & Assoc.)
Series '95B AMT VRDN(a)
3,340 7/01/20 4.30 3,340,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT CORP. IDR
(Huntington Memorial Hospital)
Series '96 CONNIE LEE COP
1,745 7/01/97 4.00 1,745,000
CHULA VISTA IDR
(Sutherland/Palumbo Project)
AMT VRDN(a)
3,280 12/01/21 4.35 3,280,000
COMMERCE JOINT POWERS
(Precision Wire Productions)
AMT VRDN(a)
2,620 11/01/14 4.20 2,620,000
CONTRA COSTA COUNTY MFHR
(Delta Square Project)
Series '92A AMT VRDN(a)
4,500 8/01/07 4.13 4,500,000
CONTRA COSTA COUNTY MFHR
(Park Regency Apts.)
Series '92A AMT VRDN(a)
2,900 8/01/32 4.20 2,900,000
2
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
FAIRFIELD IDR
(Aitchison Family Partnership)
VRDN(a)
$ 1,700 4/01/12 4.20% $ 1,700,000
HUNTINGTON PARK COMMUNITY
REDEVELOPMENT AGENCY
(Personal Storage I) VRDN(a)
140 11/15/17 4.50 140,000
INDIO HOUSING AUTHORITY MFHR
(Smoketree Apts.)
Series A VRDN(a)
9,800 12/01/07 4.10 9,800,000
INDIO MFHR
(Olive Courts Apts.)
Series '96 AMT VRDN(a)
500 12/01/26 3.85 500,000
LONG BEACH
Res. Rec.: (Southeast Fac.
Authority Lease Rev.)
Series '95B AMT VRDN(a)
30,300 12/01/18 4.20 30,300,000
LOS ANGELES COUNTY TRAN
Series '97
8,000 6/30/98 3.90 8,046,000
LOS ANGELES HFA MFHR
(Malibu Meadows Project 91A) VRDN(a)
1,500 12/01/15 4.10 1,500,000
LOS ANGELES MFHR
(Poinsettia Apartment Project)
Series '89A AMT VRDN(a)
5,450 7/01/19 4.30 5,450,000
LOS ANGELES MFHR
(Studio Colony Project)
Series '85C VRDN(a)
1,900 5/01/07 4.20 1,900,000
MARIN COUNTY HOUSING AUTHORITY MFHR
(Crest Marin ll Apts.)
Series A AMT VRDN(a)
9,300 10/15/29 4.30 9,300,000
MONROVIA REDEVELOPMENT AGENCY
(Holiday Inn Hotel Project)
Series '84 VRDN(a)
4,400 12/01/14 3.85 4,400,000
OCEANSIDE MFHR
(Riverview Springs Apts.)
Series '90A AMT VRDN(a)
17,400 7/01/20 4.35 17,400,000
ORANGE COUNTY HFA MFHR
(Lantern Pines Project) VRDN(a)
1,600 12/01/07 4.10 1,600,000
ORANGE COUNTY MFHR
(Alicia Viejo Project)
Series '86A AMT VRDN(a)
290 12/01/16 4.35 290,000
ORANGE COUNTY MFHR
(Vintage Woods Apts.)
Series '84E VRDN(a)
1,900 11/01/08 3.85 1,900,000
PANAMA-BUENA VISTA
(Unified School District Capital
Improvement Financing Project)
VRDN(a)
5,000 6/01/24 4.25 5,000,000
PLEASANT HILL REDEVELOPMENT
AGENCY MFHR
(Chateau III Project)
Series '96A AMT VRDN(a)
2,260 8/01/26 4.10 2,260,000
RIVERSIDE COUNTY GO RAN
(School Financing Authority)
Series '96
4,000 7/17/97 4.05 4,000,967
3
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
RIVERSIDE COUNTY HOUSING AUTHORITY
MFHR
(Tyler Village Apts.)
Series '86A AMT VRDN(a)
$ 300 12/01/16 4.20% $ 300,000
RIVERSIDE COUNTY HOUSING AUTHORITY
MFHR
(Victoria Springs Apts.)
Series '89C AMT VRDN(a)
500 7/01/19 4.20 500,000
SAN BERNARDINO COUNTY HFA MFHR
(Mountain View Apts.)
Series '97A VRDN(a)
6,000 3/01/27 4.05 6,000,000
SAN BERNARDINO COUNTY MFHR
(Alta Park Apts)
Series '89A VRDN(a)
5,145 5/01/06 4.20 5,145,000
SAN DIMAS COMMUNITY
REDEVELOPMENT AGENCY
(San Dimas Commerce Center)
Series '83 VRDN(a)
110 12/01/13 3.70 110,000
SAN FRANCISCO IDR
(Hoefer Scientific Institute)
Series '92A AMT VRDN(a)
940 8/01/07 4.70 940,000
SAN JOSE MFHR
(Siena at Renaissance Apts.)
Series '96A AMT VRDN(a)
3,500 12/01/29 4.10 3,500,000
SANTA FE SPRINGS IDR
(Metal Center Inc. Project)
Series '89A AMT VRDN(a)
2,650 7/01/14 4.10 2,650,000
TRIUNFO COUNTY
Sanitation District Revenue
VRDN(a)
1,000 6/01/19 4.20 1,000,000
UNION CITY MFHR
(Skylark Apts.)
Series '89B VRDN(a)
400 11/01/07 4.20 400,000
UPLAND COMMUNITY REDEVELOPMENT
AGENCY MFHR
(Northwoods 156) Series A VRDN(a)
5,850 3/01/14 4.70 5,850,000
UPLAND COMMUNITY REDEVELOPMENT
AGENCY MFHR
(Northwoods 168) Series B VRDN(a)
3,235 3/01/14 4.70 3,235,000
VENTURA COUNTY TRAN
Series '97
10,000 7/01/98 3.90 10,057,700
Total Municipal Bonds
(amortized cost $283,320,052) 283,320,052
COMMERCIAL PAPER-20.1%
CALIFORNIA-14.3%
CALIFORNIA GO
12,000 8/18/97 3.80 12,000,000
LOS ANGELES COUNTY MTA
Sales Tax Revenue Series A
4,244 7/16/97 3.70 4,244,000
LOS ANGELES COUNTY MTA
Sales Tax Revenue Series A
4,000 9/04/97 3.80 4,000,000
LOS ANGELES WATER & POWER
15,000 10/14/97 3.90 15,000,000
ORANGE COUNTY WATER DISTRICT
2,000 8/21/97 3.75 2,000,000
UNIVERSITY OF CALIFORNIA
BOARD OF REGENTS
6,000 8/15/97 3.55 6,000,000
4
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
UNIVERSITY OF CALIFORNIA
BOARD OF REGENTS
$ 5,000 8/20/97 3.65% $ 5,000,000
UNIVERSITY OF CALIFORNIA
BOARD OF REGENTS
3,000 7/22/97 3.75 3,000,000
------------
51,244,000
PUERTO RICO-5.8%
PUERTO RICO GOVERNMENT DEVELOPMENT BANK
Series '96
13,100 8/15/97 3.75 13,100,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
4,500 7/14/97 3.80 4,500,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
3,000 7/14/97 3.85 3,000,000
-------------
20,600,000
Total Commercial Paper
(amortized cost $71,844,000) 71,844,000
TOTAL INVESTMENTS-99.4%
(amortized cost $355,164,052) 355,164,052
Other assets less liabilities-0.6% 1,984,150
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
357,172,202 shares outstanding) $357,148,202
# All securities either mature or their interest rate changes in one year or
less.
(a) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as 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
CONNIE LEECollege construction loan assurance assn
COP Certificate of participation
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
RAN Revenue anticipation note
SFMR Single family mortgage revenue
TRAN Tax & revenue anticipation note
See notes to financial statements.
5
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $355,164,052) $355,164,052
Cash 19,300,796
Interest receivable 2,825,996
Receivable for capital stock sold 529,790
Total assets 377,820,634
LIABILITIES
Payable for investments purchased 20,283,700
Investment advisory payable 148,558
Distribution fee payable 68,332
Accrued expenses 171,842
Total liabilities 20,672,432
NET ASSETS $357,148,202
COMPOSITION OF NET ASSETS
Paid-in-capital $357,172,202
Accumulated net realized loss on investments (24,000)
$357,148,202
See notes to financial statements.
6
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1997
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $12,908,202
EXPENSES
Advisory fee (Note B) $1,763,920
Distribution assistance and administrative
service (Note C) 1,103,670
Transfer agency (Note B) 280,278
Custodian fees 103,572
Registration fees 50,229
Printing 43,090
Audit and legal fees 29,519
Trustees' fees 1,743
Miscellaneous 9,348
Total expenses 3,385,369
Less: fee waiver (104,474)
Net expenses 3,280,895
Net investment income 9,627,307
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment transactions 99
Net change in unrealized appreciation of investments (114)
Net loss on investment transactions (15)
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,627,292
See notes to financial statements.
7
STATEMENT OF CHANGES
IN NET ASSETS
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30,1997 JUNE 30,1996
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 9,627,307 $ 8,134,512
Net realized gain on investment transactions 99 8,350
Net change in unrealized appreciation of
investment transactions (114) (6,990)
Net increase in net assets from operations 9,627,292 8,135,872
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (9,627,307) (8,134,512)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 59,285,776 61,381,700
Total increase 59,285,761 61,383,060
NET ASSETS
Beginning of year 297,862,441 236,479,381
End of year $357,148,202 $297,862,441
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
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 eight 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, Alliance Municipal Trust-Florida Portfolio and
Alliance Municipal Trust-Massachusetts Portfolio. Each series is considered to
be a separate entity for financial reporting and tax purposes. As a matter of
fundamental policy, the 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, 1997 are exempt from federal income taxes. However, certain
shareholders may be subject to the alternative minimum tax.
4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued as earned. Investment transactions are recorded on a
trade date basis. Realized gain (loss) from investment 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, 1997 for expenses exceeding .93 of 1% of its average
daily net assets. No reimbursement was required for the year ended June 30,
1997. 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
$146,523 for the year ended June 30, 1997.
9
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays the Adviser a distribution fee at the
annual rate of up to .25 of 1% of the average daily value of the portfolio's
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, 1997, the distribution fee amounted to 881,960 of which $104,474
was waived. In addition, the Portfolio may reimburse certain broker-dealers for
administrative costs incurred in connection with providing shareholder
services, and may reimburse the Adviser for accounting and bookkeeping, and
legal and compliance support. For the year ended June 30, 1997, such payments
by the Portfolio amounted to $221,710 of which $94,000 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1997, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1997, the
Portfolio had a capital loss carryforward of $24,000, of which $11,589 expires
in 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,
1997, capital paid-in aggregated $357,172,202. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1997 1996
--------------- ---------------
Shares sold 1,497,181,205 1,207,086,940
Shares issued on reinvestments of dividends 9,627,307 8,134,512
Shares redeemed (1,447,522,736) (1,153,839,752)
Net increase 59,285,776 61,381,700
10
FINANCIAL HIGHLIGHTS
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
----------------------------------------------------------
1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ----------
<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 (a) .027 .029 .027 .018 .020
LESS: DISTRIBUTIONS
Dividends from net investment income (.027) (.029) (.027) (.018) (.020)
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 (b) 2.76% 2.91% 2.78% 1.83% 2.05%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $357,148 $297,862 $236,479 $219,673 $156,200
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .93% .93% .93% .93% .93%
Expenses, before waivers and reimbursements .96% .94% 1.01% 1.02% 1.02%
Net investment income (a) 2.73% 2.86% 2.75% 1.82% 2.01%
</TABLE>
(a) Net of expenses reimbursed or waived by the Adviser.
(b) 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.
11
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 assets and liabilities, including
the portfolio of investments, of the California Portfolio of Alliance Municipal
Trust as of June 30, 1997 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, 1997, 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 the
California Portfolio of Alliance Municipal Trust as of June 30, 1997, 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 29, 1997
12
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
DREW BIEGEL, SENIOR VICE 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
KENNETH T. CARTY, VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
MARIA R. CONA, 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
VINCENT S. NOTO, 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
13
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
ALLIANCE CAPITAL
DISTRIBUTION OF THIS REPORT OTHER THAN TO SHAREHOLDERS MUST
BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS,
WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM
THE OWNER, ALLIANCE CAPITAL MANAGEMENT L.P.
ACAAR
