ALLIANCE MUNICIPAL TRUST -CALIFORNIA PORTFOLIO
ALLIANCE CAPITAL
ANNUAL REPORT
JUNE 30, 1998
STATEMENT OF NET ASSETS
JUNE 30, 1998
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-110.8%
CALIFORNIA-108.0%
ABAG FINANCE AUTHORITY COP
(Harker School Foundation)
Series '98 VRDN (a)
$ 3,000 1/01/23 3.15% $3,000,000
ALAMEDA COUNTY IDA
(Dicon Fiberoptics Project)
Series '97A AMT VRDN (a)
1,725 5/01/03 3.50 1,725,000
ALAMEDA COUNTY IDA
(Heat & Control Inc. Project)
Series '95A AMT VRDN (a)
5,100 11/01/25 3.55 5,100,000
ALAMEDA COUNTY IDA
(JMS Family Partnership Project)
Series '95A AMT VRDN (a)
2,930 10/01/25 3.55 2,930,000
ALAMEDA COUNTY IDA
(Ream Enterprises Project)
Series A AMT VRDN (a)
1,925 11/01/20 3.55 1,925,000
BERKELEY UNIFIED SCHOOL DISTRICT TAN
4,000 6/30/99 3.57 4,016,560
CALIFORNIA COUNTY IDR
(S&P Investment Project)
AMT VRDN (a)
1,095 9/01/08 3.45 1,095,000
CALIFORNIA ECONOMIC
DEVELOPMENT AUTHORITY
(Marko Foam Products Inc.)
Series '96 AMT VRDN (a)
2,900 10/01/26 4.05 2,900,000
CALIFORNIA ECONOMIC
DEVELOPMENT FINANCE AUTHORITY
(Inland Empire Venture L.L.C.)
Series '95 AMT VRDN (a)
2,300 7/01/25 3.55 2,300,000
CALIFORNIA ECONOMIC
DEVELOPMENT FINANCE AUTHORITY
(Valley Plating Works Inc.)
Series '95 AMT VRDN (a)
5,925 10/01/20 4.10 5,925,000
CALIFORNIA HFA
(Adventist Health System)
Series '91A VRDN (a)
9,800 8/01/21 3.20 9,800,000
CALIFORNIA HFA MFHR
Series '97B AMT VRDN (a)
2,100 8/01/39 3.25 2,100,000
CALIFORNIA HFA SFMR
(Home Mortgage Revenue)
Series '96J AMT PPB (a)
5,425 8/01/28 3.95 5,425,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Athens Disposal Co., Inc. Project)
Series '95A AMT VRDN (a)
4,900 1/01/16 3.25 4,900,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Browning-Ferris Industries)
Series '97B AMT VRDN (a)
2,500 9/01/17 3.15 2,500,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Burrtec Waste Industries)
Series '98A AMT VRDN (a)
$ 2,000 5/01/05 3.25% $2,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Burrtec Waste Project)
Series '97B AMT VRDN (a)
2,000 7/01/12 3.25 2,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Burrtec Waste Project)
Series A AMT VRDN (a)
2,900 10/01/02 3.25 2,900,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(California Waste Recovery Project)
Series '96A AMT VRDN (a)
1,710 10/01/06 3.25 1,710,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Calsan Inc. Project)
Series '96A AMT VRDN (a)
4,860 12/01/11 3.25 4,860,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Colmac Energy Project)
Series B AMT VRDN (a)
1,100 12/01/16 3.15 1,100,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Contra Costa Waste Services)
Series A AMT VRDN (a)
4,325 12/01/10 3.20 4,325,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(CR & R Inc. Project)
Series '95A AMT VRDN (a)
2,195 10/01/10 3.25 2,195,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Edco Disposal Corp. Project)
Series '96A AMT VRDN (a)
3,000 10/01/16 3.25 3,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Gilton Solid Waste Management)
Series '95A AMT VRDN (a)
2,400 12/01/05 3.30 2,400,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Greenteam of San Jose Project)
Series '97A AMT VRDN (a)
4,805 8/01/12 3.25 4,805,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(New United Motor Manufacturing)
Series '98A AMT VRDN (a)
2,000 4/01/18 4.15 2,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Pacific Electric & Gas)
Series '97B AMT VRDN (a)
11,800 11/01/26 3.40 11,800,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Sanger Project)
Series A AMT VRDN (a)
3,300 9/01/20 3.15 3,300,000
2
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Santa Clara Valley Industries)
Series '98A VRDN (a)
$ 2,000 3/01/18 3.20% $2,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Santa Fe Geothermal Inc.)
Series '83 VRDN (a)
2,400 9/01/13 3.65 2,400,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Southern California Edison)
Series '86B VRDN (a)
1,700 2/28/08 3.45 1,700,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Western Waste Project)
Series '94A AMT VRDN (a)
1,400 10/01/06 3.70 1,400,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
Res Rec.:(Burney Forest Project)
Series '88A AMT VRDN (a)
10,900 9/01/20 3.70 10,900,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
Res. Rec. : (Colmac Energy Project)
Series '90A AMT VRDN (a)
2,300 12/01/16 3.15 2,300,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY PCR
(Sanifill Inc. Project)
Series '94A AMT VRDN (a)
300 8/01/07 3.30 300,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY PCR
(Southern California Edison)
Series '86B VRDN (a)
1,000 2/28/08 3.45 1,000,000
CALIFORNIA SCHOOL CASH
RESERVE PROGRAM AUTHORITY
Series '97A
10,000 7/02/98 3.77 10,000,241
CALIFORNIA SCHOOL CASH
RESERVE PROGRAM AUTHORITY
Series '98A
10,000 7/02/99 3.74 10,073,200
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Artefex Project) Series '97E
AMT VRDN (a)
2,575 7/01/17 3.75 2,575,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Chino Basin Municipal
Water Project)
Series '90 AMT VRDN (a)
3,945 8/01/10 3.25 3,945,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Contech Construction)
Series '89 AMT VRDN (a)
1,320 5/01/09 3.45 1,320,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Housing Aegis of Aptos Project)
Series '98 Y VRDN (a)
2,450 6/01/33 3.55 2,450,000
3
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Kennerly-Spratling Project)
Series '95A AMT VRDN (a)
$ 2,760 6/01/20 3.40% $2,760,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Lance Camper Project)
Series '94B AMT VRDN (a)
3,530 12/01/14 3.40 3,530,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Lesaint Limited Partners)
Series '98B VRDN (a)
2,800 3/01/18 3.55 2,800,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Pacific Bearings Company Project)
Series '96L AMT VRDN (a)
2,305 10/01/06 3.75 2,305,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Primary Color Project)
Series '97F AMT VRDN (a)
2,315 7/01/04 3.75 2,315,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(S.V.D.P. Management
Inc. Project) VRDN (a)
2,000 2/01/28 4.00 2,000,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Tri-Valley Growers Project)
Series '95E AMT VRDN (a)
5,500 12/01/10 3.25 5,500,000
CALIFORNIA STATEWIDE
ECONOMIC DEVELOPMENT AUTHORITY
(Pioneer Converting Inc.)
AMT VRDN (a)
1,970 4/01/16 3.55 1,970,000
CHULA VISTA IDR
(Sutherland/Palumbo Project)
AMT VRDN (a)
3,000 12/01/21 4.10 3,000,000
CITY OF WEST HOLLYWOOD
PUBLIC FACILITIES CORP. COP
Series '98 VRDN (a)
3,360 2/01/25 3.90 3,360,000
COMMERCE JOINT POWERS
(Precision Wire Productions)
AMT VRDN (a)
2,355 11/01/14 3.55 2,355,000
CONTRA COSTA COUNTY MFHR
(Delta Square Project)
Series A VRDN (a)
4,500 8/01/07 3.50 4,500,000
FAIRFIELD IDA
(Aitchison Family Partnership)
VRDN (a)
1,700 4/01/12 3.55 1,700,000
FOOTHILL EASTERN
TRANSPORTATION AUTHORITY
(California Toll Road Revenue)
Series Y VRDN (a)
2,000 1/02/35 3.00 2,000,000
GILROY UNIFIED SCHOOL
DISTRICT TAN
5,000 6/30/99 3.57 5,020,700
HUNTINGTON PARK COMMUNITY
REDEVELOPMENT AGENCY
(Personal Storage I) VRDN (a)
140 11/15/17 4.50 140,000
4
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
INDIO HOUSING AUTHORITY MFHR
(Olive Courts Apts.)
Series '96 AMT VRDN (a)
$ 500 12/01/26 3.65% $ 500,000
INDIO HOUSING AUTHORITY MFHR
(Smoketree Apts.)
Series A VRDN (a)
9,575 12/01/07 3.85 9,575,000
IRVINE ASSESSMENT DISTRICT
Series '85-7 VRDN (a)
9,300 9/02/11 3.20 9,300,000
IRVINE CAPITAL
IMPROVEMENT AUTHORITY
(Public Facilities and
Infrastructure) VRDN (a)
2,400 11/01/10 3.20 2,400,000
KERN COUNTY TRAN
Board of Education
Series '97
7,500 7/07/98 3.92 7,500,684
LONG BEACH
Res. Rec.: (Southeast
Facility Lease Rev.)
Series '95B AMT VRDN (a)
30,300 12/01/18 4.45 30,300,000
LOS ANGELES COUNTY COP
(Belmont Learning Complex)
Series '97A VRDN (a)
1,500 12/01/17 3.20 1,500,000
LOS ANGELES COUNTY
HOUSING AUTHORITY MFHR
(Diamond Park Apts. Project)
Series '87A AMT VRDN (a)
1,400 2/01/09 3.30 1,400,000
LOS ANGELES COUNTY
HOUSING AUTHORITY MFHR
(Sand Canyon Village Project)
Series '89A AMT VRDN (a)
4,200 11/01/09 4.45 4,200,000
LOS ANGELES COUNTY
HOUSING AUTHORITY MFHR
(Valencia Village Project)
Series '84 VRDN (a)
10,000 10/01/14 3.40 10,000,000
LOS ANGELES COUNTY
UNIFIED SCHOOL DISTRICT TRAN
13,000 10/01/98 3.43 13,034,450
MODESTO COUNTY SCHOOL DISTRICT
(Capital Facilities)
Series '91 VRDN (a)
2,755 8/01/11 3.15 2,755,000
MONROVIA REDEVELOPMENT AGENCY
(Holiday Inn Hotel Project)
Series '84 VRDN (a)
4,300 12/01/14 3.70 4,300,000
OAKLAND IDA
(Allen Temple Family Life)
Series '97A VRDN (a)
3,100 8/01/27 3.30 3,100,000
OCEANSIDE HOUSING AUTHORITY MFHR
(Riverview Springs Apts.)
Series '90A AMT VRDN (a)
16,800 7/01/20 3.75 16,800,000
ORANGE COUNTY AIRPORT REVENUE
MBIA
3,000 7/01/98 5.00 3,000,000
ORANGE COUNTY HOUSING
AUTHORITY MFHR
(Alicia Viejo Project)
Series '86A AMT VRDN (a)
290 12/01/16 3.75 290,000
ORANGE COUNTY HOUSING
AUTHORITY MFHR
(Vintage Woods Apts.)
Series '84E VRDN (a)
5,700 11/01/08 4.10 5,700,000
5
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
PANAMA-BUENA VISTA
(Unified School District Capital
Improvement Financing Project)
VRDN (a)
$ 5,000 6/01/24 4.10% $5,000,000
PARAMOUNT COUNTY UNIFIED
SCHOOL DISTRICT TRAN
5,000 10/01/98 3.43 5,013,250
PETALUMA HOUSING AUTHORITY MFHR
(Oakmont at Petaluma)
Series '96A AMT VRDN (a)
1,000 4/01/26 3.55 1,000,000
PLEASANT HILL REDEVELOPMENT
AGENCY MFHR
(Chateau III Project)
Series '96A AMT VRDN (a)
2,260 8/01/26 3.45 2,260,000
REDONDO BEACH REDEVELOPMENT
AGENCY MFHR
(McCandless Housing Project)
Series '95A VRDN (a)
3,640 12/01/25 3.45 3,640,000
RIVERSIDE COUNTY IDR
(Advanced Business Forms)
Series '89 AMT VRDN (a)
1,400 4/05/14 3.15 1,400,000
RIVERSIDE COUNTY IDR
(Cryogenic Partners)
Series '89 AMT VRDN (a)
1,400 7/05/14 3.15 1,400,000
RIVERSIDE COUNTY IDR
(Riverfront Cresteel Project)
Series '89 AMT VRDN (a)
2,750 4/01/09 3.15 2,750,000
ROSEVILLE COUNTY HIGH
SCHOOL DISTRICT COP
(Northwest Roseville Land Project)
Series '91 VRDN (a)
3,220 8/01/06 3.15 3,220,000
SACRAMENTO CITY
FINANCING AUTHORITY BAN
(California EPA Building)
Series '98A
13,000 12/15/98 3.55 13,000,000
SACRAMENTO COUNTY HFA MFHR
(Grouse Run Apts.)
Series '90 VRDN (a)
6,500 6/01/10 3.05 6,500,000
SAN BERNARDINO COUNTY
HOUSING AUTHORITY MFHR
(Mountain View Apts.)
Series '97A VRDN (a)
6,000 3/01/27 3.30 6,000,000
SAN DIEGO UNIFIED SCHOOL
DISTRICT TRAN
15,000 10/01/98 3.43 15,039,750
SAN DIMAS COMMUNITY
REDEVELOPMENT AGENCY
(San Dimas Commerce Center)
Series '83 VRDN (a)
110 12/01/13 3.70 110,000
SAN JOSE REDEVELOPMENT AGENCY MFHR
(San Fernando Apts.)
Series '98A AMT VRDN (a)
10,000 12/01/28 3.45 10,000,000
SAN LUIS OBISPO COUNTY TRAN
10,500 7/07/99 3.56 10,569,720
SANTA ANA UNIFIED
SCHOOL DISTRICT COP
Series '90 VRDN (a)
1,000 7/01/15 3.10 1,000,000
SANTA FE SPRINGS IDR
(Metal Center Inc. Project)
Series '89A AMT VRDN (a)
2,500 7/01/14 3.30 2,500,000
6
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
SIMI VALLEY HOUSING
AUTHORITY MFHR
(Shadowridge Apts.)
Series '89 VRDN (a)
$ 5,000 9/01/19 3.50% $ 5,000,000
STANISLAUS COUNTY GO TRAN
Series '97
10,000 7/09/98 3.94 10,001,200
TRIUNFO COUNTY
Sanitation District Revenue
VRDN (a)
1,000 6/01/19 3.20 1,000,000
UPLAND COMMUNITY
REDEVELOPMENT AGENCY MFHR
(Northwoods 156)
Series A VRDN (a)
5,850 3/01/14 3.30 5,850,000
UPLAND COMMUNITY
REDEVELOPMENT AGENCY MFHR
(Northwoods 168)
Series B VRDN (a)
3,235 3/01/14 3.30 3,235,000
VALLECITOS WATER DISTRICT
(Twin Oaks Reservoir Project)
Series '98 VRDN (a)
3,265 7/01/30 3.00 3,265,000
VENTURA COUNTY TRAN
Series '97
10,000 7/01/98 3.90 10,000,000
-------------
456,064,755
PUERTO RICO-2.8%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '85 MBIA VRDN (a)
7,000 12/01/15 3.15 7,000,000
PUERTO RICO HIGHWAY &
TRANSPORTATION
Series '98A AMBAC VRDN (a)
5,000 7/01/28 3.00 5,000,000
-------------
12,000,000
TOTAL INVESTMENTS-110.8%
(amortized cost $468,064,755) 468,064,755
Other assets less liabilities-(10.8%) (45,600,564)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
422,488,191 shares outstanding) $422,464,191
# 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:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
COP Certificate of Participation
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
TAN Tax Anticipation Note
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
7
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1998
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $14,788,489
EXPENSES
Advisory fee (Note B) $2,016,456
Distribution assistance and
administrative service (Note C) 1,448,480
Transfer agency (Note B) 227,743
Custodian fees 104,926
Printing 46,731
Audit and legal fees 25,191
Registration fees 22,962
Trustees' fees 3,014
Miscellaneous 4,242
Total expenses 3,899,745
Less: fee waiver (25,195)
Net expenses 3,874,550
NET INCREASE IN NET ASSETS FROM OPERATIONS $10,913,939
STATEMENT OF CHANGES IN NET ASSETS
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30,1998 JUNE 30,1997
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 10,913,939 $ 9,627,307
Net realized gain on investment transactions -0- 99
Net change in unrealized appreciation
of investments -0- (114)
Net increase in net assets from operations 10,913,939 9,627,292
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (10,913,939) (9,627,307)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 65,315,989 59,285,776
Total increase 65,315,989 59,285,761
NET ASSETS
Beginning of year 357,148,202 297,862,441
End of year $422,464,191 $357,148,202
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
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 an open-end investment company. The Fund operates as a
series company currently consisting of: 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.
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 financial statements have been prepared in
conformity with generally accepted accounting principles which require
management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities in the financial statements and amounts of
income and expenses during the reporting period. Actual results could differ
from those estimates. 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 meet 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 any, 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, 1998, 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% on the first $1.25 billion of average daily net
assets; .49% on the next $.25 billion; .48% on the next $.25 billion; .47% on
the next $.25 billion; .46% on the next $1 billion; and .45% 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 from July 1, 1997 to
November 19, 1997 for expenses exceeding .93% of its average daily net assets
and from May 6, 1998 to June 30, 1998 for expenses exceeding .92% of its
average daily net assets. No reimbursement was required for the year ended June
30, 1998.
The Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $119,875 for the year ended June 30, 1998.
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 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, 1998, the distribution fee amounted to $1,008,228, of which
$25,195 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,
1998, such payments by the Portfolio amounted to $440,252, of which $94,500 was
paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1998, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1998, the
Portfolio had a capital loss carryforward of $24,000, of which $6,135 expires
in 2000, $13,804 expires in 2002, $3,239 expires in 2003 and $822 expires in
the year 2004.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1998, capital paid-in aggregated $422,488,191. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1998 1997
--------------- ---------------
Shares sold 1,649,193,927 1,497,181,205
Shares issued on reinvestments of dividends 10,913,939 9,627,307
Shares redeemed (1,594,791,877) (1,447,522,736)
Net increase 65,315,989 59,285,776
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,
---------------------------------------------------------------
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<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 .027 .029 .027 .018
LESS: DIVIDENDS
Dividends from net investment income (.027) (.027) (.029) (.027) (.018)
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 2.74% 2.76% 2.91% 2.78% 1.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $422,464 $357,148 $297,862 $236,479 $219,673
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .96% .93% .93% .93% .93%
Expenses, before waivers and
reimbursements .97% .96% .94% 1.01% 1.02%
Net investment income (a) 2.71% 2.73% 2.86% 2.75% 1.82%
</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 net assets of the California
Portfolio of Alliance Municipal Trust as of June 30, 1998 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, 1998, 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, 1998, 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 24, 1998
12
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
