LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund ended its annual reporting period on May 31, 1994, its net
asset value was $14.59 per share. Income dividends of approximately $.85 per
share were paid during this period, representing an annualized distribution
rate per share of 5.68%, based on the May 31, 1994 net asset value, adjusted
for capital gain distributions. In addition, we are pleased to report that
all dividends paid from net investment income during this period were exempt
from Federal and State of California income taxes, although certain
shareholders may be subject to the Federal Alternative Minimum Tax on some
portfolio income.
As the reporting period began, the market for fixed-income securities was
very strong as the economy remained weak and inflation worries were virtually
nonexistent. By the fourth quarter of 1993, however, signs of solid economic
growth appeared and prices for fixed-income securities weakened.
The bond market weakness was a direct result of the fear of rising
inflation, as rapid economic growth was recorded in the fourth quarter of
1993 and the first quarter of 1994. The impressive increase in Gross Domestic
Product in the first quarter of 1994 came despite extremely bad weather and
the earthquake in southern California. It had been anticipated that the bad
weather throughout much of the nation, and the earthquake's impact on a major
economic center, would have a significantly negative impact on overall U.S.
economic growth. However, economic growth continued to be strong.
As the economy continued to improve in the fourth quarter of 1993 and
into the first quarter of 1994, fears of rising inflation intensified. It
became clear to market participants that the economy had, over the past year,
moved from recession to rapid expansion. Supporting this view were increases
in several key economic indicators such as capacity utilization, retail
sales, consumer confidence, commodity prices, and new orders for durable
goods, just to name a few.
Reaction by the Federal Reserve Board to this rapid economic growth and
its perceived threat to price stability was swift, with two quarter-point
increases in the Fed Funds rate in the first quarter of 1994. Further rate
increases followed as the economy continued to grow and inflation indicators
became troublesome. The bond market's negative reaction to these increases
was dramatic, resulting in substantial price declines by the end of 1994's
first quarter. Subsequently, the market improved as market participants'
fears of inflation subsided in anticipation of a slower economy following the
Fed action.
The Federal Reserve appears determined to respond quickly to any
perceived inflationary threat. Near-term, this policy will continue to create
an uncertain and volatile market. Longer- term, however, this should bode
well for the value of long-term securities as inflationary pressures subside.
In the coming year, we anticipate greater market volatility in California
securities than in the bond market generally as the California budget deficit
is addressed. The State economy and fiscal condition remain a concern and a
potential threat to the State's credit rating. In addition, continued threats
to portfolio values will occur as inflationary pressures rise with economic
growth. Our strategy in this environment has become more defensive than
during 1993. We have shortened the average maturity of the Fund and increased
the short-term holdings to reflect this more cautious outlook on long-term
rates. Securities with shorter maturities tend to be less volatile in a
rising rate environment, but they usually provide less income to the Fund.
This strategy should help to lessen the Fund's vulnerability to dramatic
price swings as experienced in the first quarter of 1994.
The municipal market is in an otherwise strong position as 1994 unfolds
due to the expectation of substantially reduced supplies during the year in
the face of increased tax rates. In addition, we believe that the Federal
Reserve's vigilance in fighting inflation will benefit all fixed-income
instruments in the coming year.
We have included a current Statement of Investments and recent financial
statements for your review. We greatly appreciate your investment in the Fund
and look forward to serving your investment needs in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
June 16, 1994
New York, N.Y.
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS CALIFORNIA TAX
EXEMPT BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A]
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
MAY 31, 1994 MAY 31, 1994 MAY 31, 1994
----------------- ------------------ ------------------
<S> <C> <S>
1.58% 6.99% 9.13%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the Dreyfus California
Tax Exempt Bond Fund on 5/31/84 to a $10,000 investment made in the Lehman
Brothers Municipal Bond Index on that date. All dividends and capital gain
distributions are reinvested.
The Fund invests primarily in California municipal securities and its
performance takes into account fees and expenses. Unlike the Fund, the Lehman
Brothers Municipal Bond Index is an unmanaged total return performance
benchmark for the long-term, investment-grade tax exempt bond market,
calculated by using municipal bonds selected to be representative of the
market. As such, the Fund's performance directly reflects economic events
existing in the State of California while the Index reflects them to a much
lesser extent, if at all. The Index also does not take into account charges,
fees and other expenses. Further information relating to Fund performance,
including expense reimbursements, if applicable, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in
this report.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS--93.7% AMOUNT VALUE
--------------- -------------
<S> <C> <C>
Alameda County, COP:
7.25%, 12/1/2014 (Insured; BIGI)........................................ $ 5,980,000 $ 6,815,765
7.25%, 12/1/2015 (Insured; BIGI)........................................ 4,045,000 4,610,329
Zero Coupon, 6/15/2018 (Insured; MBIA).................................. 1,200,000 238,800
Anaheim, COP (Anaheim Memorial Hospital Association)
7.25%, 5/15/2020 (Insured; AMBAC)....................................... 6,000,000 6,750,720
Anaheim Electric System, COP 6.75%, 10/1/2022 (Insured; AMBAC).............. 1,500,000 1,661,940
Anaheim Public Finance Authority, Tax Allocation Revenue
9.60%, 12/28/2018 (Insured; MBIA) (a)................................... 3,000,000 3,097,500
Atwater Community Facilities District, Special Tax 7.75%, 8/1/2015.......... 16,040,000 14,756,800
Bellflower, COP, Refunding
(Bellflower Civic Center) 7.20%, 10/1/2019 (Insured; MBIA).............. 1,475,000 1,615,066
Big Independent Cities Excess Pool Joint Power Authority, Insurance Program Revenue
8.25%, 3/1/2009......................................................... 5,750,000 6,116,275
Brea and Olinda Unified School District, COP 7.70%, 8/1/2018................ 2,950,000 3,082,543
Brea Public Finance Authority, Revenue, Tax Allocation (Redevelopment Project):
6.75%, 8/1/2022 (Insured; MBIA)......................................... 4,625,000 5,151,232
6.75%, 8/1/2022 (Insured; MBIA)......................................... 1,775,000 1,841,030
California:
6.42%, 4/1/2003 (a,b)................................................... 12,700,000 12,128,500
6.20%, 9/1/2006......................................................... 8,500,000 8,939,110
5.75%, 10/1/2010........................................................ 1,830,000 1,777,040
5.50%, 3/1/2011......................................................... 10,350,000 9,723,618
5.50%, 4/1/2013......................................................... 10,000,000 9,290,400
7.866%, 4/1/2023 (a,b).................................................. 10,000,000 9,087,500
California Alternative Energy Source Financing Authority, Cogeneration Revenue
(SRI International Project) 9.75%, 12/1/2005............................ 3,250,000 1,625,000
California Department of Transportation, COP (East Bay State Building)
6.50%, 3/1/2016......................................................... 15,975,000 15,994,010
California Department of Veteran Affairs, Home Purchase Revenue 8.30%, 8/1/2019 1,000,000 1,024,160
California Department of Water Resources
(Central Valley Project) Water System Revenue:
6.125%, Series J-2, 12/1/2013......................................... 3,000,000 3,002,940
6.60%, 12/1/2019...................................................... 3,000,000 3,281,250
6.90%, 12/1/2025...................................................... 5,070,000 5,609,448
California Educational Facilities Authority, Revenue:
(National University) 7.15%, 5/1/2021................................... 7,500,000 8,437,800
(University of San Francisco) 6.40%, 10/1/2017.......................... 6,300,000 6,239,016
California Health Facilities Authority, HR
(Saint Joseph's Health System) 9.875%, 7/1/2014......................... 400,000 429,632
California Health Facilities Financing Authority, Revenue:
(Adventist Health System-West):
6.40%, 3/1/2002 (Insured; MBIA)....................................... 1,955,000 2,090,012
6.50%, 3/1/2003 (Insured; MBIA)....................................... 2,140,000 2,301,313
(Catholic Health Facilities) 5%, 7/1/2008 (Insured; MBIA)............... 5,000,000 4,577,800
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
California Health Facilities Financing Authority, Revenue (continued):
(Downey Community Hospital):
5.625%, 5/15/2008..................................................... $ 2,500,000 $ 2,357,325
5.75%, 5/15/2015...................................................... 2,750,000 2,445,135
(Episcopal Homes Foundation) 7.75%, 7/1/2018............................ 4,270,000 4,496,822
(Health Facilities-Sisters of Providence) 7.50%, 10/1/2010 ............. 4,545,000 4,919,235
(Kaiser Permanente):
7%, 10/1/2018......................................................... 10,520,000 11,122,796
5.60%, 5/1/2033....................................................... 4,250,000 3,699,412
(Mills-Peninsula Hospital) 7.50%, 1/15/2000............................. 800,000 861,104
(Robert F. Kennedy Medical Center) 7.75%, 3/1/2014...................... 1,500,000 1,623,555
(Saint Joseph's Health System) 6.75%, 7/1/2021.......................... 8,500,000 9,440,100
(San Diego Children's Hospital) 6.50%, 7/1/2020 (Insured; MBIA)......... 7,500,000 7,640,775
(Stanford University):
6.50%, 11/1/2020...................................................... 8,975,000 9,851,229
6.50%, 11/1/2020...................................................... 1,025,000 1,032,175
(Unihealth America):
7.625%, 10/1/2015 (Insured; AMBAC).................................... 9,690,000 10,906,386
7.625%, 10/1/2015 (Insured; AMBAC).................................... 55,000 61,058
California Housing Finance Agency,
Home Mortage Revenue:
6.30%, 2/1/2008....................................................... 2,790,000 2,770,777
6.35%, 2/1/2009....................................................... 2,970,000 2,952,863
6.40%, 2/1/2010....................................................... 3,135,000 3,116,253
8.20%, 8/1/2017....................................................... 115,000 119,870
8.30%, 8/1/2019....................................................... 285,000 295,901
6.55%, 8/1/2026....................................................... 8,000,000 8,012,320
Revenue 9.621%, 8/1/2023 (a)............................................ 10,000,000 10,062,500
California Pollution Control Financing Authority:
PCR:
(Pacific Gas & Electric Co.):
8.75%, 1/1/2007................................................... 8,000,000 8,996,240
6.35%, 6/1/2009................................................... 10,000,000 10,068,500
5.85%, 12/1/2023 (Insured; MBIA) (a).............................. 15,000,000 14,100,450
(Southern California Edison Co.):
6.40% 12/1/2024................................................... 28,000,000 27,888,280
6.40% 12/1/2024................................................... 10,000,000 10,091,200
RRR (Waste Management Inc.) 7.15%, 2/1/2011............................. 17,500,000 18,562,600
SWDR (North County Recycling Center) 6.75%, 7/1/2017
(LOC; Union Bank of Switzerland) (c).................................. 10,000,000 10,241,400
California Public Works Board, LR:
(California State University Library Project) 6.25%, 9/1/2016........... 11,900,000 11,633,083
(Department of Corrections) 6.50%, 9/1/2019............................. 2,270,000 2,496,228
(Department of Corrections, Madera State Prison):
6%, 6/1/2007.......................................................... 6,090,000 6,144,749
6%, 6/1/2009.......................................................... 7,870,000 7,793,346
(Regents of the University of California) 7%, 9/1/2010.................. 2,500,000 2,806,325
(Various University of California Projects):
Refunding 5.50%, 6/1/2010............................................. 6,950,000 6,420,896
5.25%, 12/1/2013...................................................... 7,500,000 6,747,150
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
California Public Works Board, LR (continued):
(Various University of California Projects)(continued):
5.50%, 6/1/2014....................................................... $ 6,750,000 $ 6,062,985
5.50%, 12/1/2018...................................................... 4,750,000 4,198,050
Refunding 5.50%, 6/1/2021............................................. 21,700,000 19,004,643
6.60%, 12/1/2022...................................................... 13,000,000 14,424,670
California Statewide Community Development Authority:
(Pacific Homes) 6%, 4/1/2017............................................ 7,500,000 6,991,650
Revenue:
COP (Motion Picture and TV Fund) 7.97%, 1/1/2017 (Insured; AMBAC) (a). 6,300,000 4,603,725
(Insured Health Facilities, Unihealth) 5.50%, 10/1/2014 (Insured; AMBAC) 8,750,000 8,018,325
(Oakland Convention Center Project) 5.50%, 10/1/2014 (Insured; AMBAC). 12,000,000 11,035,440
Calleguas Municipal Water District, COP
6.25%, 7/1/2017 (Insured; AMBAC)........................................ 15,000,000 16,289,400
Carlsbad Housing and Redevelopment Agency, Tax Allocation
(Village Redevelopment Project) 7.80%, 4/1/2011 (Insured; AMBAC)........ 2,000,000 2,203,160
Castaic Lake Water Agency, COP
(Water System Improvement Project) 7.125%, 8/1/2016 (Insured; MBIA)..... 5,000,000 5,360,600
Central Basin Municipal Water District, COP
(Century Reclamation Program):
6.875%, 2/1/2011 (Insured; FGIC)...................................... 3,400,000 3,756,966
6.875%, 2/1/2016 (Insured; FGIC)...................................... 2,935,000 3,243,146
Central Coast Water Authority, Revenue
(State Water Project Regional Facilities) 6.60%, 10/1/2022 (Insured; AMBAC) 4,000,000 4,117,200
Chico Public Financing Authority, Revenue
(Southeast Chico Redevelopment Project) 6.625%, 4/1/2021 (Insured; FGIC) 10,000,000 10,352,900
Chula Vista, IDR (San Diego Gas and Electric) 6.40%, 12/1/2027.............. 20,600,000 20,347,856
Compton Community Redevelopment Agency, Refunding
(Walnut Industrial Park Project):
7.50%, 8/1/2013 (Insured; AMBAC)...................................... 3,000,000 3,338,910
8.10%, 8/1/2013....................................................... 14,000,000 15,151,360
Contra Costa County, COP (Merrithew Memorial Hospital) 6.60%, 11/1/2012..... 10,000,000 10,119,300
Corona Community Facilities District, Special Tax, Refunding:
7.60%, 9/1/2013......................................................... 5,755,000 5,826,535
7.60%, 9/1/2017......................................................... 3,000,000 2,974,920
7.70%, 9/1/2019......................................................... 2,000,000 1,978,520
Costa Mesa City Hall and Public Safety Facilities Inc., LR
(Victoria Street) 7.60%, 10/1/2018...................................... 4,600,000 5,023,016
Dos Palos Public Financing Authority, Local Agency Revenue 7.90%, 10/1/2020. 8,880,000 9,187,337
East Bay Municipal Utilities District, Revenue:
Wastewater Treatment System:
7.20%, 6/1/2020 (Insured; AMBAC)...................................... 3,325,000 3,755,155
8.17%, 6/1/2020 (a)................................................... 15,000,000 12,093,750
Water System 6.375%, 6/1/2021 (Insured; AMBAC).......................... 22,000,000 24,060,520
Eastern Municipal Water District, Water and Sewer Revenue, COP
6.50%, 7/1/2020 (Insured; FGIC)......................................... 10,000,000 10,981,800
Fairfield, COP, Home Mortgage Revenue 11%, 7/1/2017......................... 110,000 111,085
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment Projects)
5.50%, 8/1/2023 (Insured; Capital Guaranty)............................. $ 9,000,000 $ 8,076,420
Folsom, Special Tax (Community Facilities District Number 3) 7.80%, 12/1/2015 1,900,000 1,981,719
Folsom Public Financing Authority, Local Agency Revenue:
7.90%, 10/1/2019........................................................ 3,780,000 4,197,728
7.90%, 10/1/2019........................................................ 19,595,000 20,379,192
Fontana, Special Tax (Community Facilities District Number 3):
8.60%, 10/1/2010........................................................ 7,500,000 7,971,450
8.70%, 10/1/2015........................................................ 11,500,000 12,069,020
Galt Community Facilities District, Special Tax 7.70%, 9/1/2019............. 10,950,000 11,241,708
Glendale Redevelopment Agency, Tax Allocation Revenue
(Central Glendale Redevelopment Project):
7%, 12/1/2011 (Insured; AMBAC)........................................ 4,600,000 5,095,328
7.10%, 12/1/2020 (Insured; AMBAC)..................................... 4,700,000 5,224,943
Hesperia Water District, COP, Refunding
(Water Facilities Improvement Project) 7.15%, 6/1/2026 (Insured; FGIC).. 4,500,000 4,819,860
Industry Urban Development Agency, Refunding (Civic Recreational Project):
7.375%, 5/1/2015........................................................ 765,000 836,581
7.375%, 5/1/2015........................................................ 235,000 247,236
Inglewood, HR (Daniel Freeman Hospital, Inc.) 6.75%, 5/1/2013............... 6,300,000 6,474,195
Irvine Ranch Water District Joint Powers Agency, Local Pool Revenue
8.25%, 8/15/2023........................................................ 950,000 1,006,592
La Verne Community Facilities District, Special Tax
(Koll Business Center) 7.875%, 3/1/2014................................. 3,625,000 3,787,472
Lake Elsinore Public Financing Authority, Revenue:
Local Agency:
7.50%, 10/1/2010...................................................... 2,600,000 2,652,260
8%, 10/1/2020......................................................... 12,970,000 13,260,139
7.75%, 10/1/2021...................................................... 5,000,000 5,123,150
Tax Allocation (Lake Elsinore Redevelopment Project)
6.25%, 2/1/2019 (Insured; FGIC)....................................... 4,500,000 4,507,650
Local Government Finance Authority, Revenue, Refunding
(San Francisco Redevelopment Agency) 6.80%, 8/1/2019 (Insured; MBIA).... 5,000,000 5,150,500
Loma Linda, HR (Loma Linda University Medical Center Project):
7%, 12/1/2022........................................................... 23,870,000 26,880,484
Refunding 7%, 12/1/2015 (Insured; AMBAC)................................ 12,355,000 13,237,147
Long Beach, COP (Airport Improvements Project) 6.95%, 6/1/2016 (Insured; MBIA) 4,000,000 4,411,280
Los Angeles:
COP (Woodbury University Project) 8%, 6/1/2018 (LOC; Tokai Bank) (c).... 2,500,000 2,620,850
Home Mortgage Revenue 9.875%, 12/1/2004................................. 85,000 87,617
Wastewater System Revenue:
Refunding 7%, 6/1/2011 (Insured; AMBAC)............................... 2,830,000 3,033,392
Refunding 6%, 12/1/2018 (Insured; FGIC)............................... 14,600,000 14,270,478
6.80%, 8/1/1998....................................................... 1,050,000 1,146,841
7%, 2/1/2020 (Insured; FGIC).......................................... 6,000,000 6,650,820
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
Los Angeles Community Redevelopment Agency, Tax Allocation:
(Bunker Hill Project):
6.80%, 12/1/2007 (Insured; MBIA)...................................... $ 5,000,000 $ 5,572,900
5.625%, 12/1/2023 (Insured; FSA)...................................... 9,290,000 8,523,761
5.60%, 12/1/2028 (Insured; FSA)....................................... 14,000,000 12,736,360
(Hollywood Redevelopment Project) 6.10%, 7/1/2022 (Insured; MBIA)....... 4,900,000 4,847,717
Los Angeles Convention and Exhibition Center Authority, COP, Refunding:
7%, 8/15/2020........................................................... 1,835,000 2,038,538
7%, 8/15/2021 (Insured; AMBAC).......................................... 2,750,000 3,085,225
Los Angeles County, COP:
(Correctional Facilities Project) 6.50%, 9/1/2013 (Insured; MBIA)....... 24,600,000 25,211,310
(Disney Parking Project) 6.50%, 3/1/2023............................... 5,800,000 5,791,706
(Edmund D. Edelman Childrens' Court) 6%, 4/1/2012 (Insured; AMBAC)...... 9,000,000 8,960,130
(Van Nuys Courthouse Project) 9%, 6/1/2015.............................. 225,000 250,119
Los Angeles County Capital Asset Leasing Corp., Leasehold Revenue, Refunding
5.75%, 12/1/2004 (Insured; AMBAC)....................................... 3,000,000 3,068,820
Los Angeles County Health Facilities Authority, LR, Refunding
(Olive View Medical Center) 7.50%, 3/1/2008............................. 1,980,000 2,194,414
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Refunding
5.50%, 7/1/2013......................................................... 4,750,000 4,405,672
Los Angeles County Public Works Financing Authority, Revenue, Refunding
5%, 3/1/2011............................................................ 3,000,000 2,644,980
Los Angeles County Sanitation Districts Financing Authority, Revenue
(Capital Projects) 5.375%, 10/1/2013.................................... 4,000,000 3,651,840
Los Angeles County Transport Commission, Sales Tax Revenue:
Refunding 5.75%, 7/1/2018............................................... 2,150,000 2,014,400
6.75%, 7/1/2018 (Insured; FGIC)......................................... 25,150,000 27,989,435
Los Angeles Department Airports, Airport Revenue, Refunding 7.40%, 5/1/2010. 3,700,000 3,973,837
Los Angeles Department Water and Power, Revenue:
Electric Plant:
7.10%, 1/15/2031...................................................... 2,160,000 2,408,983
6.625%, 10/1/2031..................................................... 21,000,000 22,997,100
9.055%, 1/15/2033 (a,b)............................................... 4,500,000 4,106,250
Waterworks, Refunding 6.40%, 5/15/2028.................................. 2,435,000 2,453,555
Los Angeles Municipal Improvement Corp., LR, Refunding
(Central Library Project):
5.375%, 6/1/2011...................................................... 3,725,000 3,347,062
6.30%, 6/1/2016....................................................... 3,500,000 3,495,835
6.30%, 6/1/2018....................................................... 4,250,000 4,218,805
Marin Municipal Water District, COP, Revenue
6.60%, 7/1/2016 (Insured; FGIC)......................................... 4,955,000 5,380,882
Mesa Consolidated Water District, COP
(Mesa Consolidated Water Improvement Co. - Capital Improvement)
7.625%, 3/15/2008 (Insured; AMBAC)...................................... 1,500,000 1,653,060
Metropolitan Water District of Southern California:
Crossover Refunding 5.50%, 3/1/2010..................................... 7,000,000 6,714,610
Waterworks Revenue 6.75%, 7/1/2018...................................... 4,750,000 5,285,088
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
M-S-R Public Power Agency, Revenue (San Juan Project):
6.625%, 7/1/2013 (Insured; BIGI)........................................ $ 10,000,000 $ 10,230,500
6.50%, 7/1/2017 (Insured; MBIA)......................................... 3,200,000 3,261,216
6.875%, 7/1/2019 (Insured; AMBAC)....................................... 5,200,000 5,350,280
Modesto:
COP, (Modesto Community Center Project) 8%, 11/1/2006................... 2,000,000 2,246,180
Multi-Family Housing Mortage Revenue, Refunding 6.40%, 6/1/2029......... 7,723,000 7,649,245
Modesto Irrigation District, Electric Revenue
9.625%, 1/1/2011........................................................ 8,780,000 12,516,329
Moreno Valley Unified School District,
Community Facilities District, Special Tax:
7.65%, 8/15/2009...................................................... 5,000,000 5,097,700
7.70%, 8/15/2014...................................................... 9,000,000 9,190,800
Moulton Niguel Water District (Improvement District Number 6)
7.25%, 4/1/2016 (Insured; AMBAC)........................................ 5,000,000 5,621,350
Mount Diablo Hospital District, Revenue
6.125%, 12/1/2020 (Insured; AMBAC)...................................... 5,000,000 5,410,450
Mount Diablo Unified School District, Community Facilities District Special Tax
7.05%, 8/1/2020 (Insured; FGIC)......................................... 3,500,000 3,765,370
Northern California, Transmission Revenue
(California-Oregon Transmission Project):
6.50%, 5/1/2016 (Insured; MBIA)....................................... 2,250,000 2,314,395
6%, 5/1/2024 (Insured; MBIA).......................................... 5,000,000 4,870,950
Northern California Power Agency, Power Revenue
(Hydroelectric Project) 7%, 1/1/2016 (Insured; AMBAC)................... 670,000 753,067
Refunding:
7.50%, 7/1/2023 (Insured; AMBAC)...................................... 375,000 446,389
(Geothermal Project) 5.50%, 7/1/2005.................................. 5,000,000 4,948,700
Oceanside Community Development Commission, LR
(Oceanside Civic Center Project) 8%, 8/1/2019........................... 1,000,000 1,097,200
Orange County Local Transportation Authority, Sales Tax Revenue
5.70%, 2/15/2003........................................................ 7,500,000 7,695,825
7.50%, 2/15/2010 (Insured; FGIC) (a).................................... 6,100,000 4,845,352
7.55%, 2/15/2011 (Insured; FGIC) (a).................................... 6,900,000 5,459,625
Pasadena, COP, Refunding (Capital Project) 5.75%, 1/1/2013.................. 1,500,000 1,410,300
Pittsburg Redevelopment Agency, Tax Allocation
(Los Medanos Community Development Project) 7.75%, 8/1/2015............. 1,500,000 1,632,660
Port of Oakland, Revenue:
Port:
6.50%, 11/1/2016 (Insured; MBIA)...................................... 8,500,000 8,666,770
6.40%, 11/1/2022 (Insured; MBIA)...................................... 10,000,000 10,143,400
Special Facilities
(Mitsui O.S.K. Lines Ltd.) 6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (c) 2,000,000 2,033,360
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
Rancho Cucamonga Redevelopment Agency, Tax Allocation
(Rancho Cucamonga Redevelopment Project):
Refunding 6.75%, 9/1/1999 (Insured; MBIA)............................. $ 1,835,000 $ 2,016,959
Refunding 7.125%, 9/1/1999............................................ 2,545,000 2,853,607
7.125%, 9/1/2019 (Insured; MBIA)...................................... 2,455,000 2,682,014
6.75%, 9/1/2020 (Insured; MBIA)....................................... 1,665,000 1,728,420
Redding, Electric System Revenue, COP
9.297%, 7/1/2022 (Insured; MBIA)(a)..................................... 3,650,000 3,791,438
Redlands, COP, 7%, 12/1/2022 (Insured; MBIA)................................ 2,600,000 2,910,960
Rialto, COP (Wastewater Treatment Facilities Project) 7.30%, 11/1/2008...... 5,260,000 5,862,796
Riverside County
COP, Refunding (Public Financing Project):
7.75%, Type 1, 12/1/2003.............................................. 1,500,000 1,647,645
7.75%, Type 2, 12/1/2003.............................................. 1,500,000 1,643,895
7.875%, Type 1, 12/1/2015............................................. 2,000,000 2,185,740
Riverside County Asset Leasing Corp., Leasehold Revenue
(Riverside County Hospital Project):
7.20%, 6/1/2010 (Insured; BIGI)....................................... 4,450,000 4,985,735
6.25%, 6/1/2019....................................................... 7,500,000 7,260,825
Riverside County Community Facilities District, Special Tax:
7.80%, 9/1/2015......................................................... 7,000,000 6,739,250
8.25%, 9/1/2016......................................................... 4,730,000 4,795,132
8.60%, 9/1/2020......................................................... 4,000,000 3,600,000
Sacramento, COP (Refunding-Public Facilities Project) 6%, 7/1/2012.......... 6,000,000 5,769,420
Sacramento County, COP (Cherry Island Golf Course Project) 8.125%, 12/1/2018 1,500,000 1,736,085
Sacramento City Financing Authority, Revenue
6.80%, 11/1/2020........................................................ 2,800,000 3,133,928
Saddleback Community College District, COP
7%, 8/1/2019 (Insured; BIGI)............................................ 2,875,000 3,072,254
San Bernardino, Special Tax
(Community Facilities District Number 995):
8.45%, 9/1/2010....................................................... 1,750,000 945,000
8.50%, 9/1/2015....................................................... 3,325,000 1,795,500
San Bernardino County, COP:
(Capital Facilities Project)
6.875%, 8/1/2024...................................................... 5,000,000 5,593,300
(West Valley Detention Center)
5.90%, 11/1/2001 (Insured; MBIA)...................................... 1,565,000 1,635,535
San Buenaventura, SFMR
(FNMA Mortgage Backed Security Program) 7%, 12/1/2024................... 3,000,000 3,054,060
San Elijo Joint Powers Authority, Revenue
(San Elijo Water Pollution Control Project) 7%, 3/1/2020 (Insured; FGIC) 5,500,000 6,108,520
San Francisco City and County:
COP (25 Van Ness Avenue Project) 6%, 9/1/2016........................... 2,350,000 2,236,330
Sewer Revenue:
Refunding 5.90%, 10/1/2007 (Insured; AMBAC)........................... 10,000,000 10,169,200
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
San Francisco City and County (continued):
Sewer revenue (continued):
Refunding 5.90%, 10/1/2008 (Insured; AMBAC)........................... $ 15,000,000 $ 15,113,850
6.50%, 10/1/2011 (Insured; AMBAC)..................................... 5,900,000 6,434,776
6.50%, 10/1/2012 (Insured; AMBAC)..................................... 6,500,000 7,089,160
6.50%, 10/1/2016 (Insured; AMBAC)..................................... 6,075,000 6,643,681
6.50%, 10/1/2021 (Insured; AMBAC)..................................... 500,000 542,370
SFMR, (FNMA/GNMA Mortgage Backed Securities Program) 7.45%, 1/1/2024.... 275,000 284,991
San Francisco City and County Airports Commission, International Airport Revenue,
Refunding:
6.10%, 5/1/2003 (Insured; AMBAC)...................................... 3,000,000 3,155,550
6.20%, 5/1/2004 (Insured; AMBAC)...................................... 2,500,000 2,640,075
6.20%, 5/1/2008 (Insured; AMBAC)...................................... 7,500,000 7,792,125
6.50%, 5/1/2013 (Insured; AMBAC)...................................... 2,250,000 2,327,918
San Francisco City and County Public Utilities Commission, Water Revenue
6.50%, 11/1/2017........................................................ 3,500,000 3,583,825
San Jacinto Community Facilities District, Special Tax 7.75%, 9/1/2005...... 1,100,000 1,148,972
San Marcos Public Facilities Authority, Revenue,
Tax Allocation 6%, 1/1/2006............................................. 13,000,000 13,871,000
San Marcos Special Tax Community Facilities District 88-1
7.625%, 9/1/2019........................................................ 4,475,000 4,463,499
San Mateo County, COP (Capital Projects Program)
6.50%, 7/1/2017 (Insured; MBIA)......................................... 6,000,000 6,589,080
San Mateo County Transportation District, Sales Tax Revenue
6.50%, 6/1/2020 (Insured; MBIA)......................................... 7,250,000 7,769,753
Santa Barbara, COP, Refunding (Water System Improvement Project)
6.70%, 4/1/2027 (Insured; AMBAC)........................................ 4,000,000 4,158,680
Santa Barbara County, Retirement Facility Revenue, COP
(Montecito Retirement Project) 7.80%, 4/1/2018.......................... 5,000,000 5,514,000
Santa Clara County, COP (Capital Project)
6.25%, 10/1/2016 (Insured; AMBAC)....................................... 10,000,000 10,056,900
Santa Cruz County, COP (Capital Facilities Project)
6.70%, 9/1/2020 (Insured; MBIA)......................................... 5,000,000 5,195,600
Santa Cruz County Public Financing Authority, Revenue, Refunding
7.10%, 9/1/2021 (Insured; MBIA)......................................... 6,500,000 7,006,480
Santa Rosa, Mortgage Revenue, Refunding
(Redwood Park Apartments Projects) 5.625%, 1/1/2026..................... 3,310,000 2,896,449
Southern California Public Power Authority, Revenue:
Power Project (Multiple Projects):
5.50%, 7/1/2020....................................................... 675,000 594,520
Refunding 5.50%, 7/1/2000............................................. 1,015,000 1,052,048
Transmission Project (Refunding - Southern Transmission Project):
6.125%, 7/1/2018...................................................... 25,000,000 24,734,500
5.75%, 7/1/2021....................................................... 10,000,000 9,313,500
Southern California Rapid Transportation District, COP (Workers Compensation Fund)
6.50%, 7/1/2007 (Insured; MBIA)......................................... 22,900,000 24,222,933
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
--------------- -------------
Stanislaus County, COP, Refunding 7.55%, 4/1/2018........................... $ 12,455,000 $ 13,102,660
Stockton, COP (Recreational District 2074) 8.15%, 8/1/2013.................. 5,240,000 6,044,759
Tehachapi Community Facilities District, Special Tax 7.40%, 10/1/2014....... 6,345,000 3,172,500
University of California:
COP (UCLA Central Chiller/Cogeneration):
6.25%, 11/1/2009...................................................... 3,000,000 3,244,830
5.50%, 11/1/2017...................................................... 7,000,000 6,318,620
7%, 11/1/2018......................................................... 8,650,000 9,602,365
Revenue (Multiple Purpose Projects):
6.10%, 9/1/2010 (Insured; MBIA)....................................... 5,000,000 5,010,750
5.125%, 9/1/2013 (Insured; AMBAC)..................................... 4,845,000 4,273,678
6.375%, 9/1/2024 (Insured; MBIA)...................................... 4,000,000 4,006,920
Wasco Public Finance Authority, Local Agency Revenue:
7.75%, 10/1/2019........................................................ 19,050,000 19,390,233
8%, 10/1/2019........................................................... 7,280,000 7,462,582
West Basin Municipal Water District, COP
6.85%, 8/1/2016 (Insured; AMBAC)........................................ 6,000,000 6,660,600
West Sacramento Financing Authority, Water System Revenue
(Improvement Project) 5.50%, 8/1/2015 (Insured; FGIC)................... 4,500,000 4,131,000
--------------
TOTAL MUNICIPAL BONDS
(cost $1,500,847,698)................................................... $1,536,380,650
==============
SHORT-TERM MUNICIPAL INVESTMENTS--6.3%
California, RAN:
3.50%, 6/28/1994........................................................ $ 20,000,000 $ 20,000,400
3.50%, 7/26/1994........................................................ 30,230,000 30,241,790
California Pollution Control Financing Authority, VRDN:
PCR (Wadham Energy Project) 3.10% (LOC; Banque Paribas) (c,d)........... 1,500,000 1,500,000
RRR (Delano Project) 3.25% (d).......................................... 3,300,000 3,300,000
Los Angeles, TRAN 3%, 6/30/1994............................................. 6,050,000 6,047,761
Los Angeles County, Metropolitian Transportation Authority,
Sales Tax Revenue, Refunding, VRDN
2.55% (LOC; Industrial Bank of Japan) (Insured; MBIA) (c,d)............. 11,500,000 11,500,000
Orange County, TRAN 3%, 6/30/1994........................................... 23,000,000 22,990,570
Southern California Public Power Authority, Transmission Project Revenue,
Refunding, VRDN (Southern Transmission) 2.70% (LOC; Swiss Bank
Corporation) (c,d).......................................................... 8,400,000 8,400,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $104,029,314)..................................................... $ 103,980,521
==============
TOTAL INVESTMENTS--100.0%
(cost $1,604,877,012)................................................... $1,640,361,171
==============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
BIGI Bond Investors Guaranty Insurance MBIA Municipal Bond Insurance Association
COP Certificate of Participation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Corporation RAN Revenue Anticipation Notes
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
HR Hospital Revenue TRAN Tax and Revenue Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 47.9%
AA Aa AA 19.9
A A A 11.9
BBB Baa BB 1.5
F1 MIG1/P1 SP1/A1 6.3
Not Rated (f) Not Rated (f) Not Rated (f) 12.5
--------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Residual Interest Security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At May 31,
1994, these securities amounted to $25,322,250 or 1.5% of net assets.
(c) Secured by letters of credit.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Directors to be of
comparable quality to those rated securities in which the Fund may
invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $1,604,877,012)_see statement................................... $1,640,361,171
Interest receivable..................................................... 33,656,675
Prepaid expenses........................................................ 81,091
--------------
1,674,098,937
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 890,076
Payable for investment securities purchased............................. 1,004,240
Payable for Common Stock redeemed....................................... 453
Accrued expenses and other liabilities.................................. 13,421,901 15,316,670
------------- --------------
NET ASSETS ................................................................ $1,658,782,267
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,618,290,592
Accumulated undistributed net realized gain on investments.............. 5,007,516
Accumulated net unrealized appreciation on investments_Note 3........... 35,484,159
--------------
NET ASSETS at value applicable to 113,657,467 shares outstanding
(300 million shares of $.01 par value Common Stock authorized).......... $1,658,782,267
==============
NET ASSET VALUE, offering and redemption price per share
($1,658,782,267 / 113,657,467 shares)................................... $14.59
=======
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1994
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 111,462,867
EXPENSES:
Management fee--Note 2(a)............................................. $10,861,852
Shareholder servicing costs_Note 2(b)................................. 1,252,457
Professional fees..................................................... 125,510
Custodian fees........................................................ 117,745
Prospectus and shareholders' reports.................................. 61,423
Directors' fees and expenses_Note 2(c)................................ 30,735
Registration fees..................................................... 17,262
Miscellaneous......................................................... 135,107
-------------
TOTAL EXPENSES.................................................... 12,602,091
--------------
INVESTMENT INCOME--NET............................................ 98,860,776
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3................................ $14,715,643
Net unrealized (depreciation) on investments............................ (79,157,377)
-------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS..................... (64,441,734)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 34,419,042
==============
See notes to financial statements.
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
---------------------------------
1993 1994
--------------- -------------
OPERATIONS:
Investment income--net............................................... $ 105,708,639 $ 98,860,776
Net realized gain on investments..................................... 17,936,064 14,715,643
Net unrealized appreciation (depreciation) on investments for the year 62,130,572 (79,157,377)
--------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 185,775,275 34,419,042
--------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................... (105,459,362) (99,704,852)
Net realized gain on investments..................................... (18,322,945) (19,722,025)
--------------- -------------
TOTAL DIVIDENDS.................................................... (123,782,307) (119,426,877)
--------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 303,997,072 620,929,689
Dividends reinvested................................................. 82,358,046 78,107,135
Cost of shares redeemed.............................................. (365,272,142) (790,202,833)
--------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.. 21,082,976 (91,166,009)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 83,075,944 (176,173,844)
NET ASSETS:
Beginning of year.................................................... 1,751,880,167 1,834,956,111
-------------- --------------
End of year (including undistributed investment income_net; $844,076 in 1993) $1,834,956,111 $1,658,782,267
============== ==============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 20,197,863 42,109,715
Shares issued for dividends reinvested............................... 5,487,607 5,084,822
Shares redeemed...................................................... (24,249,863) (53,152,760)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... 1,435,607 (5,958,223)
============== ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED MAY 31,
---------------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.............. $14.60 $14.43 $14.66 $14.82 $15.34
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net.......................... 1.03 .99 .93 .89 .84
Net realized and unrealized gain (loss) on investments (.17) .23 .20 .66 (.57)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.............. .86 1.22 1.13 1.55 .27
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net........... (1.03) (.99) (.93) (.88) (.85)
Dividends from net realized gain on investments. -- -- (.04) (.15) (.17)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................... (1.03) (.99) (.97) (1.03) (1.02)
------- ------- ------- ------- -------
Net asset value, end of year.................... $14.43 $14.66 $14.82 $15.34 $14.59
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 6.10% 8.75% 7.90% 10.89% 1.58%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... .69% .69% .68% .69% .70%
Ratio of net investment income to average net assets 7.10% 6.82% 6.32% 5.88% 5.46%
Portfolio Turnover Rate......................... 35.44% 55.82% 45.58% 41.40% 28.14%
Net Assets, end of year (000's Omitted)......... $1,497,552 $1,629,837 $1,751,880 $1,834,956 $1,658,782
See notes to financial statements.
</TABLE>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the exclusive distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor
is a wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and, when appropriate,
discounts on investments, is earned from settlement date and recognized on
the accrual basis. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade date.
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 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. To
the 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 Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
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 .60 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings, brokerage
commissions and extraordinary expenses, exceed 1 1/2% of the average value of
the Fund's net assets for any full fiscal year. There was no expense
reimbursement for the year ended May 31, 1994.
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
the Distributor an amount not to exceed an annual rate of .25 of 1% of the
value of the Fund's average daily net assets for servicing shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts. During the year ended May 31, 1994, the
Fund was charged an aggregate of $431,660 pursuant to the Shareholder
Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $4,500 and an
attendance fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of the Manager and of Mellon. The merger is
expected to occur in August 1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's
shareholders before completion of the merger. Proxy materials, approved by
the Fund's Board, recently have been mailed to Fund shareholders.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $1,006,300,476 and
$1,114,926,466, respectively, for the year ended May 31, 1994, and consisted
entirely of municipal bonds and short-term municipal investments.
At May 31, 1994, accumulated net unrealized appreciation on investments
was $35,484,159, consisting of $71,718,125 gross unrealized appreciation and
$36,233,966 gross unrealized depreciation.
At May 31, 1994, 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).
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus California Tax Exempt Bond Fund, Inc., including the statement of
investments, as of May 31, 1994, 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. Our procedures included confirmation of
securities owned as of May 31, 1994 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 Dreyfus California Tax Exempt Bond Fund, Inc. at May 31, 1994,
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 Signature Logo)
New York, New York
June 30, 1994
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended May 31, 1994:
-- All the dividends paid from investment income-net are
"exempt-interest dividends" (not subject to regular Federal and, for
individuals who are California residents, California personal income
taxes), and
-- The portion of the $.1674 per share paid by the Fund on December
14, 1993 representing a long-term capital gain distribution is $.1424
per share.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
(Dreyfus Logo)
California
Tax Exempt
Bond Fund, Inc.
Annual Report
May 31, 1994
(Dreyfus Lion Logo)
(Dreyfus `D' Logo)
DREYFUS CALIFORNIA
TAX EXEMPT BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 928AR945
Registration Mark
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
__________________________________________________________
| | | DREYFUS |
| | LEHMAN BROTHERS | CALIFORNIA |
| PERIOD | MUNICIPAL | TAX EXEMPT |
| | BOND INDEX * | BOND FUND |
|--------------- | ----------------- | -----------------|
| 5/31/84 | 10,000 | 10,000 |
| 5/31/85 | 12,746 | 12,073 |
| 5/31/86 | 14,864 | 13,839 |
| 5/31/87 | 15,835 | 14,589 |
| 5/31/88 | 17,257 | 15,396 |
| 5/31/89 | 19,243 | 17,087 |
| 5/31/90 | 20,651 | 18,129 |
| 5/31/91 | 22,732 | 19,714 |
| 5/31/92 | 24,964 | 21,271 |
| 5/31/93 | 27,952 | 23,588 |
| 5/31/94 | 28,642 | 23,960 |
|----------------------------------------------------------
*Source: Lehman Brothers
Average Annual Total Return
----------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
May 31, 1994 May 31, 1994 May 31, 1994
--------------- ----------------- -----------------
1.58% 6.99% 9.13%
