LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund ended its annual reporting period on May 31, 1995, its net
asset value was $14.54 per share. Income dividends of approximately $.817 per
share were paid during this period, representing a distribution rate per
share of 5.60% based on the May 31, 1995 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 (AMT) on some portfolio
income.
As calendar 1994 drew to a close, the bond market continued to exhibit
great volatility. Yields, as measured by the Bond Buyer 20-Bond GO Index,
rose dramatically during the year from a low of 5.25% in February to a high
of 7.06% in November.* Much of this rise was attributable to tightening moves
by the Federal Reserve Board during the year in an effort to slow what
appeared to be a very strong economy. The "last gasp" of this apparent
strength occurred with the strong retail sales data reported at year-end.
While the economy grew at its fastest pace in 10 years during calendar
year 1994, signs were developing in the final months that the expansion was
moderating as higher interest rates began to take hold. As an example,
existing home sales, new home construction and auto sales slowed during the
first quarter of 1995. In addition, jobless claims and inventories rose
during the latter part of the reporting period as sales slowed. Many
forecasts for economic growth in the first half of 1995 are being adjusted
downward to reflect the slowdown. Economic discussions suggesting a "soft
landing" have recently been broadened to include the growing likelihood of an
outright recession.
The California economy had lagged the improvement in the national economy
but has shown substantial improvement since mid-1994. We are concerned that
the recent improvement in the state's economy will be negatively affected by
a return to a national slowdown just as California's economy is showing
strengthening signs of recovery.
With inflation remaining subdued and economic activity slowing, the case
for further Fed tightening near term has disappeared. In fact, there is now a
consensus that the Fed will ease interest rates should the current weakening
trend continue. All of this is, of course, very positive for your Fund.
The Fund's performance during most of the year reflected its ongoing
emphasis on maximizing tax exempt income through the use of high coupon
securities. The Fund also continued a structure which stressed strong credit
quality during a market period which weathered many uncertainties, including
those caused by the Orange County, California bankruptcy. It should be noted
that your Fund does not have any direct exposure to Orange County securities.
The use of high coupon securities to maximize income, and the use of a
significant percentage of highly rated securities, tends to lessen the
volatility of the Fund.
Our strategy in this current market environment is to remain fully
invested in order to take advantage of any continued market improvement and
provide a high level of tax exempt income. Our view of a continuation of the
market rally is a cautious one, however, since much of 1995's potential
appreciation in bond prices may already be behind us, even as the economy
slows further. As the year goes forward, we will be slowly adding more
defensive securities to the portfolio in anticipation of an increase in
inflationary pressures by year-end.
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
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 13, 1995
New York, N.Y.
* The Bond Buyer 20-Bond GO Index is a sampling of national general
obligation bonds maturing in 20 years and has a rating roughly equivalent to
A1.
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC. MAY 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS CALIFORNIA TAX
EXEMPT BOND FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
In Dollars
$24,519
Lehman Brothers Municipal Bond Index*
$21,022
California Tax Exempt Bond Fund
*Source: Lehman Brothers
<TABLE>
<S> <C> <C> <C>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
MAY 31, 1995 MAY 31, 1995 MAY 31, 1995
----------------- ------------------ -----------------
5.93% 6.96% 7.71%
</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 5/31/85 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 shown in the line graph 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,
geographically unrestricted tax exempt bond market, calculated by using
municipal bonds selected to be representative of the market. The Index does
not take into account charges, fees and other expenses. Also, unlike the
Fund which principally limits investments to California municipal
obligations, the Index is not state-specific. These factors can contribute to
the Index potentially outperforming the Fund. 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, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-95.9% AMOUNT VALUE
---------------- ----------------
<S> <C> <C>
Alameda County, COP:
7.25%, 12/1/2014 (Insured; BIGI) (Prerefunded 12/1/2000) (a)............ $ 5,980,000 $ 6,879,631
7.25%, 12/1/2015 (Insured; BIGI) (Prerefunded 12/1/2000) (a)............ 4,045,000 4,653,530
Anaheim, COP (Anaheim Memorial Hospital Association)
7.25%, 5/15/2020 (Insured; AMBAC) (Prerefunded 5/15/2000) (a)........... 6,000,000 6,815,940
Anaheim Electric System, COP 6.75%, 10/1/2022 (Insured; AMBAC)
(Prerefunded 10/1/2000) (a)............................................. 1,500,000 1,684,275
Anaheim Public Finance Authority, Revenue:
Electric Utility 5.75%, 10/1/2022....................................... 5,000,000 4,999,500
Tax Allocation 6.45%, 12/28/2018 (Insured; MBIA)........................ 20,000,000 21,228,600
Atwater Community Facilities District, Special Tax 7.75%, 8/1/2015 (b)...... 16,040,000 6,897,200
Bay Area Government Association, Tax Allocation Revenue
(California Redevelopment Agency) 6%, 12/15/2024........................ 11,500,000 11,662,150
Bellflower, COP, Refunding
(Bellflower Civic Center), 7.20%, 10/1/2019 (Insured; MBIA)............. 1,475,000 1,624,300
Big Independent Cities Excess Pool Joint Power Authority, Insurance Program
Revenue
8.25%, 3/1/2009......................................................... 5,750,000 6,030,313
Brea Public Finance Authority, Revenue, Tax Allocation (Redevelopment
Project):
6.75%, 8/1/2022 (Insured; MBIA) (Prerefunded 8/1/2001) (a).............. 4,625,000 5,244,519
6.75%, 8/1/2022 (Insured; MBIA)......................................... 1,775,000 1,920,745
Burbank Redevelopment Agency, Tax Allocation
(City Center Redevelopment Project) 5.50%, 12/1/2023 (Insured; CGIC).... 4,000,000 3,866,080
California:
6.40%, 2/1/2022......................................................... 30,000,000 30,248,700
5.90%, 4/1/2023 ........................................................ 9,000,000 9,015,750
6.375%, 2/1/2027 (Insured; AMBAC)....................................... 30,000,000 30,460,800
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 16,522,304
California Department of Veteran Affairs, Home Purchase Revenue 8.30%, 8/1/2019 1,000,000 1,048,500
California Department of Water Resources,
(Central Valley Project) Water System Revenue:
6.125%, Series J-2, 12/1/2013......................................... 3,000,000 3,060,420
6.60%, 12/1/2019 (Prerefunded 6/1/2000) (a)........................... 3,000,000 3,319,560
6.90%, 12/1/2025 (Prerefunded 6/1/2000) (a)........................... 5,070,000 5,677,538
California Educational Facilities Authority, Revenue:
(Claremont Colleges Pooled Facilities) 6.375%, 5/1/2022................. 3,655,000 3,725,615
(Loyola Marymount University) 5.75%, 10/1/2024.......................... 4,750,000 4,561,283
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
California Health Facilities Authority, HR
(Saint Joseph's Health System) 9.875%, 7/1/2014 (Prerefunded 7/1/1995)(a) $ 400,000 $ 405,988
California Health Facilities Financing Authority, Revenue:
(Adventist Health System-West):
6.40%, 3/1/2002 (Insured; MBIA)....................................... 1,955,000 2,134,528
6.50%, 3/1/2003 (Insured; MBIA)....................................... 2,140,000 2,343,086
(Catholic Health Facilities) 5%, 7/1/2008 (Insured; MBIA)............... 5,000,000 4,791,200
(Downey Community Hospital):
5.625%, 5/15/2008..................................................... 2,500,000 2,381,700
5.75%, 5/15/2015...................................................... 2,750,000 2,606,313
(Episcopal Homes Foundation) 7.75%, 7/1/2018............................ 4,270,000 4,365,264
(Mills-Peninsula Hospital) 7.50%, 1/15/2000............................. 800,000 846,912
(Robert F. Kennedy Medical Center) 7.75%, 3/1/2014...................... 1,500,000 1,617,885
(Saint Joseph's Health System) 6.75%, 7/1/2021 (Prerefunded 7/1/2001) (a) 8,500,000 9,598,285
(San Diego Children's Hospital) 6.50%, 7/1/2020 (Insured; MBIA)......... 7,300,000 7,714,275
(Stanford University):
6.50%, 11/1/2020 (Prerefunded 11/1/2000) (a).......................... 8,975,000 9,988,367
6.50%, 11/1/2020...................................................... 1,025,000 1,044,813
(Unihealth America) 7.625%, 10/1/2015 (Insured; AMBAC).................. 55,000 60,973
California Housing Finance Agency, Revenue:
Home Mortage:
6.30%, 2/1/2008....................................................... 2,790,000 2,877,746
6.35%, 2/1/2009....................................................... 2,970,000 3,075,405
6.40%, 2/1/2010....................................................... 3,135,000 3,256,356
8.20%, 8/1/2017....................................................... 115,000 122,439
8.30%, 8/1/2019....................................................... 230,000 246,836
6.70%, 8/1/2025....................................................... 8,550,000 8,835,656
6.55%, 8/1/2026....................................................... 11,250,000 11,580,863
7.65%, 8/1/2029....................................................... 11,150,000 11,793,355
Multi-Unit Rental Housing 6.85%, 8/1/2015............................... 3,140,000 3,269,588
Single Family Mortgage 6.45%, 8/1/2025.................................. 4,000,000 4,089,840
California Pollution Control Financing Authority:
PCR:
(Pacific Gas & Electric Co.):
6.35%, 6/1/2009................................................... 5,000,000 5,165,500
5.85%, 12/1/2023 (Insured: AMBAC)................................. 5,000,000 4,945,300
5.85%, 12/1/2023 (Insured; MBIA) ................................. 15,000,000 14,835,900
(Southern California Edison Co.):
6.40% 12/1/2024................................................... 8,000,000 8,136,480
6.40%, 12/1/2024 (Insured; AMBAC)................................. 4,125,000 4,246,151
6.40% 12/1/2024 (Insured; FGIC)................................... 10,000,000 10,293,700
RRR (Waste Management Inc.) 7.15%, 2/1/2011............................. 17,500,000 18,708,550
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
California Pollution Control Financing Authority (continued):
SWDR:
(Browning Ferris Industry) 6.75%, 9/1/2019............................ $ 3,400,000 $ 3,519,510
(Keller Canyon Landfill Co. Project) 6.875%, 11/1/2027................ 5,950,000 6,224,176
California Public Works Board, LR:
(California State University Library Project) 6.25%, 9/1/2016........... 11,900,000 12,022,689
(Community College Projects) 6%, 10/1/2014.............................. 11,000,000 10,998,900
(Department of Corrections) 6.50%, 9/1/2019 (Prerefunded 9/1/2001) (a).. 2,270,000 2,546,486
(Department of Corrections, Calipatria State Prison, Imperial County)
6.50%, 9/1/2017 (Insured; MBIA)....................................... 10,000,000 11,176,700
(Department of Corrections, Madera State Prison):
6%, 6/1/2007.......................................................... 6,090,000 6,311,554
6%, 6/1/2009.......................................................... 7,870,000 8,164,889
(Franchise Tax Board) 6.25%, 9/1/2011................................. 3,500,000 3,553,585
(Regents of the University of California) 7%, 9/1/2010 (Prerefunded 9/1/2000)(a) 2,500,000 2,833,725
(Various University of California Projects):
Refunding 5.50%, 6/1/2010............................................. 6,950,000 6,675,753
5.50%, 6/1/2014....................................................... 6,750,000 6,385,028
6.70%, 10/1/2017...................................................... 8,000,000 8,441,680
5.50%, 12/1/2018...................................................... 4,750,000 4,458,493
6.375%, 10/1/2019..................................................... 12,775,000 13,005,717
California Statewide Community Development Authority:
(Pacific Homes) 6%, 4/1/2017............................................ 7,500,000 7,436,175
Revenue:
COP (Saint Joseph Health System):
Refunding 5.50%, 7/1/2009......................................... 8,645,000 8,651,138
Refunding 5.50%, 7/1/2010......................................... 9,115,000 9,031,598
6.50%, 7/1/2015................................................... 7,000,000 7,331,870
(Insured Health Facilities, Unihealth) 5.50%, 10/1/2014 (Insured; AMBAC) 11,750,000 11,543,200
(Oakland Convention Center Project) 5.50%, 10/1/2014 (Insured; AMBAC). 12,000,000 11,802,720
Calleguas Municipal Water District, COP
6.25%, 7/1/2017 (Insured; AMBAC) (Prerefunded 7/1/2001) (a)............. 15,000,000 16,586,100
Carlsbad Housing and Redevelopment Agency, Tax Allocation
(Village Redevelopment Project) 7.80%, 4/1/2011 (Insured; AMBAC)
(Prerefunded 4/1/1997) (a).............................................. 2,000,000 2,164,880
Castaic Lake Water Agency, COP
(Water System Improvement Project) 7.125%, 8/1/2016 (Insured; MBIA)
(Prerefunded 8/1/2000) (a).............................................. 5,000,000 5,688,050
Central Basin Municipal Water District, COP
(Century Reclamation Program):
6.875%, 2/1/2011 (Insured; FGIC) (Prerefunded 2/1/2000) (a)........... 3,400,000 3,796,032
6.875%, 2/1/2016 (Insured; FGIC) (Prerefunded 2/1/2000) (a)........... 2,935,000 3,276,869
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Central Coast Water Authority, Revenue
(State Water Project Regional Facilities) 6.60%, 10/1/2022 (Insured; AMBAC) $ 3,800,000 $ 4,078,616
Chico Public Financing Authority, Revenue
(Southeast Chico Redevelopment Project) 6.625%, 4/1/2021 (Insured; FGIC) 9,235,000 9,815,882
Compton Community Redevelopment Agency, Refunding
(Walnut Industrial Park Project):
7.50%, 8/1/2013 (Insured; AMBAC)...................................... 3,000,000 3,345,510
8.10%, 8/1/2013....................................................... . 14,000,000 15,013,320
Contra Costa County, COP (Merrithew Memorial Hospital) 6.60%, 11/1/2012..... 10,000,000 10,324,500
Corona Community Facilities District, Special Tax, Refunding:
7.60%, 9/1/2013......................................................... 5,755,000 6,014,666
7.60%, 9/1/2017......................................................... 3,000,000 3,137,640
7.70%, 9/1/2019......................................................... 2,000,000 2,099,040
Costa Mesa City Hall and Public Safety Facilities Inc., LR
(Victoria Street) 7.60%, 10/1/2018 (Prerefunded 10/1/1997) (a).......... 4,600,000 4,932,120
Dos Palos Public Financing Authority, Local Agency Revenue 7.90%, 10/1/2020. 8,615,000 9,117,771
East Bay Municipal Utilities District, Revenue:
Wastewater Treatment System:
5.50%, 6/1/2013 (Insured; AMBAC) ..................................... 16,900,000 16,559,803
7.20%, 6/1/2020 (Insured; AMBAC) (Prerefunded 6/1/2000) (a)........... 3,325,000 3,782,620
5.55%, 6/1/2020(Insured; AMBAC)....................................... 30,000,000 29,209,200
Water System:
6%, 6/1/2020.......................................................... 5,900,000 5,957,112
6.375%, 6/1/2021 (Insured; AMBAC) (Prerefunded 12/1/2001) (a)......... 22,000,000 24,605,460
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2024................. 2,365,000 2,432,710
Fairfield, COP, Home Mortgage Revenue 11%, 7/1/2017. ....................... 5,000 5,000
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment
Projects)
5.50%, 8/1/2023 (Insured; CGIC)......................................... 9,000,000 8,760,510
Folsom, Special Tax (Community Facilities District Number 3) 7.80%, 12/1/2015 1,900,000 2,021,638
Folsom Public Financing Authority, Local Agency Revenue:
7.90%, 10/1/2019 (Prerefunded 10/1/1996) (a)............................ 3,780,000 4,076,276
7.90%, 10/1/2019........................................................ 19,595,000 20,441,112
Fontana, Special Tax
(Community Facilities District Number 3):
8.60%, 10/1/2010...................................................... 7,500,000 6,675,000
8.70%, 10/1/2015...................................................... 11,500,000 10,235,000
Fresno Health Facilities, Revenue (Holy Cross Health System Corp.)
5.625%, 12/1/2015 (Insured; MBIA)....................................... 7,000,000 6,903,680
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Hesperia Water District, COP, Refunding
(Water Facilities Improvement Project) 7.15%, 6/1/2026 (Insured; FGIC).. $ 4,500,000 $ 5,011,875
Industry Urban Development Agency, Refunding (Civic Recreational Project):
7.375%, 5/1/2015 (Prerefunded 5/1/1997) (a)............................. 765,000 823,224
7.375%, 5/1/2015........................................................ 235,000 241,846
Inglewood, HR (Daniel Freeman Hospital, Inc.) 6.75%, 5/1/2013............... 6,300,000 6,557,670
La Mirada Redevelopment Agency,
5.90%, 8/15/2024 (Insured; CGIC)........................................ 5,000,000 5,003,750
La Verne Community Facilities District, Special Tax
(Koll Business Center) 7.875%, 3/1/2014................................. 3,625,000 3,869,978
Lake Elsinore Public Financing Authority, Revenue:
Local Agency:
7.50%, 10/1/2010...................................................... 2,600,000 2,734,212
8%, 10/1/2020......................................................... 12,970,000 13,709,420
7.75%, 10/1/2021...................................................... 5,000,000 5,249,100
Tax Allocation
(Lake Elsinore Redevelopment Project) 6.25%, 2/1/2019 (Insured; FGIC). 4,220,000 4,346,811
Loma Linda, HR, (Loma Linda University Medical Center Project):
7%, 12/1/2022 (Prerefunded 12/1/2001) (a)............................... 23,870,000 27,172,892
Refunding 7%, 12/1/2015 (Insured; AMBAC)................................ 12,355,000 13,542,810
Long Beach, COP (Airport Improvements Project) 6.95%, 6/1/2016 (Insured;
MBIA)
(Prerefunded 6/1/1999) (a).............................................. 4,000,000 4,441,480
Los Angeles:
COP (Woodbury University Project) 8%, 6/1/2018 (LOC; Tokai Bank) (c).... 2,500,000 2,500,000
Home Mortgage Revenue 9.875%, 12/1/2004................................. 20,000 20,455
Wastewater System Revenue:
6.80%, 8/1/1998....................................................... 1,050,000 1,145,204
Refunding 7%, 6/1/2011 (Insured; AMBAC)............................... 2,830,000 3,084,728
Refunding 6%, 12/1/2018 (Insured; FGIC)............................... 14,600,000 14,813,306
Los Angeles Community Redevelopment Agency, Tax Allocation:
(Bunker Hill Project)
5.625%, 12/1/2023 (Insured; FSA)...................................... 9,290,000 9,064,625
(Hollywood Redevelopment Project) 6.10%, 7/1/2022 (Insured; MBIA)....... 4,900,000 5,009,270
Los Angeles Convention and Exhibition Center Authority, COP, Refunding:
7%, 8/15/2020 (Prerefunded 8/15/1999) (a)............................... 1,835,000 2,037,621
7%, 8/15/2021 (Insured; AMBAC) (Prerefunded 8/15/2000)(a)............... 2,750,000 3,114,760
Los Angeles County, COP:
(Disney Parking Project):
6.50%, 3/1/2023....................................................... 7,440,000 7,649,882
Zero Coupon, 3/1/2014................................................. 4,290,000 1,258,171
(Edmund D. Edelman Childrens' Court) 6%, 4/1/2012 (Insured; AMBAC)...... 9,000,000 9,203,310
(Van Nuys Courthouse Project) 9%, 6/1/2015 (Prerefunded 6/1/1996) (a)... 225,000 240,221
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Los Angeles County Health Facilities Authority, LR (Olive View Medical
Center)
7.50%, 3/1/2008 (Prerefunded 3/1/1998) (a).............................. $ 1,980,000 $ 2,173,644
Los Angeles County Metropolitan Transportation Authority,
Sales Tax Revenue, Refunding:
5.50%, 7/1/2013....................................................... 4,750,000 4,612,107
5%, 7/1/2021 (Insured; FGIC).......................................... 12,000,000 10,850,880
Los Angeles County Public Works Financing Authority, Revenue, Refunding
5%, 3/1/2011............................................................ 3,000,000 2,789,220
Los Angeles County Sanitation Districts Financing Authority, Revenue
(Capital Projects) 5.375%, 10/1/2013.................................... 4,000,000 3,831,040
Los Angeles County Transport Commission, Sales Tax Revenue,
Refunding 5.75%, 7/1/2018............................................... 2,150,000 2,125,511
Los Angeles Department Water and Power, Revenue:
Electric Plant:
5.30%, 2/15/2025...................................................... 4,200,000 3,903,774
7.10%, 1/15/2031...................................................... 2,160,000 2,437,474
Crossover Refunding 5.375%, 9/1/2023.................................. 2,000,000 1,885,040
Waterworks, Refunding:
5.90%, 5/15/2011 (Insured; FGIC)...................................... 2,190,000 2,240,874
6.40%, 5/15/2028...................................................... 2,435,000 2,525,996
6.375%, 7/1/2034 (Insured; MBIA)...................................... 12,000,000 12,567,600
Los Angeles Harbor Department, Revenue:
6.625%, 8/1/2019........................................................ 3,855,000 4,086,686
6.625%, 8/1/2019 (Insured; AMBAC)....................................... 6,000,000 6,373,740
6.625%, 8/1/2025........................................................ 17,780,000 18,783,859
Los Angeles Municipal Improvement Corp., LR, Refunding
(Central Library Project):
5.375%, 6/1/2011...................................................... 3,725,000 3,565,123
6.30%, 6/1/2016....................................................... 3,500,000 3,567,305
6.30%, 6/1/2018....................................................... 4,250,000 4,334,703
6.35%, 6/1/2020....................................................... 7,700,000 7,818,503
Marin Municipal Water District, COP, Revenue
6.60%, 7/1/2016 (Insured; FGIC) (Prerefunded 7/1/1998) (a).............. 4,955,000 5,373,499
Mesa Consolidated Water District, COP
(Mesa Consolidated Water Improvement Co.-Capital Improvement)
7.625%, 3/15/2008 (Insured; AMBAC)...................................... 1,500,000 1,643,355
Metropolitan Water District of Southern California, Waterworks Revenue,
6.75%, 7/1/2018 (Prerefunded 7/1/2001) (a).............................. 4,750,000 5,380,040
M-S-R Public Power Agency, Revenue (San Juan Project):
6.625%, 7/1/2013 (Insured; BIGI)........................................ 10,000,000 10,458,500
6.50%, 7/1/2017 (Insured; MBIA)......................................... 3,200,000 3,387,104
6.875%, 7/1/2019 (Insured; AMBAC)....................................... 5,200,000 5,452,668
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Modesto:
COP (Modesto Community Center Project) 8%, 11/1/2006
(Prerefunded 11/1/1997) (a)........................................... $ 2,000,000 $ 2,208,500
Multi-Family Housing Mortage Revenue, Refunding 6.40%, 6/1/2029......... 7,723,000 7,828,264
Modesto Irrigation District, Electric Revenue
9.625%, 1/1/2011........................................................ 8,780,000 12,093,484
Moreno Valley Unified School District,
Community Facilities District, Special Tax:
7.65%, 8/15/2009...................................................... 5,000,000 5,244,900
7.70%, 8/15/2014...................................................... 9,000,000 9,393,840
Moulton Niguel Water District (Improvement District Number 6)
7.25%, 4/1/2016 (Insured; AMBAC) (Prerefunded 4/1/2000) (a)............. 5,000,000 5,676,200
Mount Diablo Hospital District, Revenue
6.125%, 12/1/2020 (Insured; AMBAC) (Prerefunded 12/1/2000) (a).......... 5,000,000 5,480,550
Mount Diablo Unified School District, Community Facilities District Special
Tax
7.05%, 8/1/2020 (Insured; FGIC)......................................... 3,500,000 3,855,145
Northern California, Transmission Revenue
(California-Oregon Transmission Project):
6.50%, 5/1/2016 (Insured; MBIA)....................................... 2,250,000 2,400,232
6%, 5/1/2024 (Insured; MBIA).......................................... 5,000,000 5,061,650
Northern California Power Agency, Power Revenue:
(Hydroelectric Project) 7%, 1/1/2016 (Insured; AMBAC)................... 670,000 792,871
Refunding 7.50%, 7/1/2023 (Insured; AMBAC) (Prerefunded 7/1/2021) (a). 375,000 471,468
Oceanside Community Development Commission, LR
(Oceanside Civic Center Project) 8%, 8/1/2019 (Prerefunded 8/1/1996) (a) 1,000,000 1,064,040
Palm Springs Unified School District
6.125%, 2/1/2020 (Insured MBIA)......................................... 4,000,000 4,082,880
Pasadena, COP, Refunding (Capital Project) 5.75%, 1/1/2013.................. 1,500,000 1,461,090
Pittsburgh Redevelopment Agency, Tax Allocation
(Los Medanos Community Development Project) 7.75%, 8/1/2015
(Prerefunded 8/1/1996) (a).............................................. 1,500,000 1,591,830
Port of Oakland, Revenue:
Port:
6.50%, 11/1/2016 (Insured; MBIA)...................................... 8,300,000 8,728,778
6.40%, 11/1/2022 (Insured; MBIA)...................................... 10,000,000 10,474,300
Special Facilities
(Mitsui O.S.K. Lines Ltd.) 6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (c) 2,000,000 2,048,780
Rancho Cucamonga Redevelopment Agency, Tax Allocation
(Rancho Cucamonga Redevelopment Project):
7.125%, 9/1/2019 (Prerefunded 9/1/1999) (a)........................... 2,545,000 2,851,112
7.125%, 9/1/2019 (Insured; MBIA)...................................... 2,455,000 2,703,986
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Rancho Cucamonga Redevelopment Agency, Tax Allocation (continued):
(Rancho Cucamonga Redevelopment Project) (continued):
6.75%, 9/1/2020 (Insured; MBIA)....................................... $ 1,665,000 $ 1,787,544
6.75%, 9/1/2020 (Insured; MBIA) (Prerefunded 9/1/1999) (a)............ 1,835,000 2,033,858
Redding Redevelopment Agency, TAN, Refunding
(Canby, Hilltop, Cypress) 5%, 9/1/2023 (Insured; CGIC).................. 1,285,000 1,157,669
Redlands, COP, 7%, 12/1/2022 (Insured; MBIA) (Prerefunded 12/1/2020) (a).... 2,600,000 2,957,032
Riverside County:
COP, Refunding (Public Financing Project):
7.75%, Type 1, 12/1/2003.............................................. 1,500,000 1,601,400
7.75%, Type 2, 12/1/2003 (Prerefunded 12/1/1996) (a).................. 1,500,000 1,609,605
7.875%, Type 1, 12/1/2015............................................. 2,000,000 2,106,140
Riverside County Asset Leasing Corp., Leasehold Revenue
(Riverside County Hospital Project):
7.20%, 6/1/2010 (Insured; BIGI) (Prerefunded 6/1/1999) (a)............ 4,450,000 4,973,765
6.25%, 6/1/2019....................................................... 7,500,000 7,531,500
Riverside County Community Facilities District, Special Tax:
7.80%, 9/1/2015......................................................... 7,000,000 5,932,220
8.25%, 9/1/2016......................................................... 4,730,000 4,524,340
Sacramento, COP (Refunding-Public Facilities Project) 6%, 7/1/2012.......... 6,000,000 6,056,940
Sacramento County, COP (Cherry Island Golf Course Project)
8.125%, 12/1/2018 (Prerefunded 12/1/1998) (a)........................... 1,500,000 1,716,900
Sacramento City Financing Authority, Revenue
6.80%, 11/1/2020 (Prerefunded 11/1/2001) (a)............................ 2,800,000 3,194,044
Saddleback Community College District, COP
7%, 8/1/2019 (Insured; BIGI)............................................ 2,875,000 3,143,353
San Bernardino County, COP:
(Capital Facilities Project)
6.875%, 8/1/2024...................................................... 5,000,000 5,918,650
(West Valley Detention Center)
5.90%, 11/1/2001 (Insured; MBIA)...................................... 1,565,000 1,670,590
San Elijo Joint Powers Authority, Revenue
(San Elijo Water Pollution Control Project)
7%, 3/1/2020 (Insured; FGIC) (Prerefunded 3/1/2000) (a)................. 5,500,000 6,175,675
San Francisco City and County:
COP (25 Van Ness Avenue Project) 6%, 9/1/2016........................... 2,350,000 2,355,781
Sewer Revenue:
Refunding 5.90%, 10/1/2007 (Insured; AMBAC)........................... 10,000,000 10,436,400
Refunding 5.90%, 10/1/2008 (Insured; AMBAC)........................... 15,000,000 15,542,850
6.50%, 10/1/2011 (Insured; AMBAC) (Prerefunded 10/1/1999) (a)......... 5,900,000 6,491,062
6.50%, 10/1/2016 (Insured; AMBAC) (Prerefunded 10/1/1999) (a)......... 6,075,000 6,668,406
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
San Francisco City and County (continued):
Sewer Revenue (continued):
6.50%, 10/1/2021 (Insured; AMBAC) (Prerefunded 10/1/1999) (a)......... $ 500,000 $ 548,840
SFMR, (GNMA/FNMA Mortgage Backed Securities Program) 7.45%, 1/1/2024.... 275,000 291,376
San Francisco City and County Airports Commission, International Airport
Revenue,
Refunding:
6.10%, 5/1/2003 (Insured; AMBAC)...................................... 3,000,000 3,238,830
6.20%, 5/1/2004 (Insured; AMBAC)...................................... 2,500,000 2,712,075
6.20%, 5/1/2008 (Insured; AMBAC)...................................... 2,500,000 2,638,100
6.50%, 5/1/2013 (Insured; AMBAC)...................................... 2,250,000 2,406,757
San Francisco City and County Public Utilities Commission, Water Revenue
6.50%, 11/1/2017........................................................ 3,500,000 3,680,145
San Francisco City and County Redevelopment Agency, Multi-Family Revenue
(South Beach Project) 5.50%, 3/1/2014................................... 4,500,000 4,272,570
San Gabriel Valley Schools Financing Authority, Revenue, Refunding
(Pomona Unified School District) 5.50% 2/1/2024......................... 4,500,000 4,193,460
San Jacinto Community Facilities District, Special Tax 7.75%, 9/1/2005...... 1,100,000 1,135,398
San Marcos Public Facilities Authority, Tax Allocation Revenue:
6%, 1/1/2006 (Prerefunded 1/1/2002) (a)................................. 13,000,000 14,215,760
5.50%, 8/1/2023......................................................... 8,000,000 7,689,600
San Marcos Special Tax Community Facilities District 88-1
7.625%, 9/1/2019........................................................ 4,475,000 4,625,046
San Mateo County, COP (Capital Projects Program)
6.50%, 7/1/2017 (Insured; MBIA) (Prerefunded 7/1/2001) (a).............. 6,000,000 6,716,820
San Mateo Joint Powers Financing Authority, LR
(San Mateo County Health Care Center) 5.75%, 7/15/2022 (Insured; FSA)... 2,150,000 2,129,425
Santa Barbara, COP, Refunding (Water System Improvement Project)
6.70%, 4/1/2027 (Insured; AMBAC)........................................ 4,000,000 4,313,280
Santa Barbara County, Retirement Facility Revenue, COP
(Montecito Retirement Project) 7.80%, 4/1/2018 (Prerefunded 4/1/1997) (a) 5,000,000 5,400,150
Santa Clara County, COP (Capital Project)
6.25%, 10/1/2016 (Insured; AMBAC)....................................... 10,000,000 10,349,100
Santa Cruz County, COP (Capital Facilities Project)
6.70%, 9/1/2020 (Insured; MBIA)......................................... 5,000,000 5,389,900
Santa Cruz County Public Financing Authority, Revenue, Refunding
7.10%, 9/1/2021 (Insured; MBIA)......................................... 6,500,000 7,142,590
Santa Rosa, Mortgage Revenue, Refunding
(Redwood Park Apartments Projects) 5.625%, 1/1/2026..................... 3,310,000 3,050,231
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Southern California Public Power Authority, Revenue:
Power Project (Multiple Projects)
5.50%, 7/1/2020....................................................... $ 675,000 $ 638,995
Transmission Project (Refunding - Southern Transmission Project)
6.125%, 7/1/2018...................................................... 1,470,000 1,486,728
Southern California Rapid Transportation District, COP (Workers Compensation
Fund)
6.50%, 7/1/2007 (Insured; MBIA)......................................... 22,900,000 24,813,295
Stockton, COP (Recreational District 2074) 8.15%, 8/1/2013
(Prerefunded 8/1/1998) (a).............................................. 5,240,000 5,968,203
University of California:
COP (UCLA Central Chiller/Cogeneration):
6.25%, 11/1/2009 (Prerefunded 11/1/1999) (a).......................... 3,000,000 3,271,200
5.50%, 11/1/2017...................................................... 7,000,000 6,653,920
7%, 11/1/2018 (Prerefunded 11/1/1999) (a)............................. 8,650,000 9,678,744
Revenue (Multiple Purpose Projects):
6.10%, 9/1/2010 (Insured; MBIA)....................................... 5,000,000 5,174,400
5.125%, 9/1/2013 (Insured; AMBAC)..................................... 4,845,000 4,551,925
6.375%, 9/1/2024 (Insured; MBIA)...................................... 4,000,000 4,179,880
Wasco Public Finance Authority, Local Agency Revenue:
7.75%, 10/1/2019........................................................ 19,050,000 17,405,794
8%, 10/1/2019........................................................... 7,280,000 6,734,000
West Basin Municipal Water District, COP
6.85%, 8/1/2016 (Insured; AMBAC) (Prerefunded 8/1/2000) (a)............. 6,000,000 6,747,300
West Sacramento Financing Authority, Water System Revenue
(Improvement Project) 5.50%, 8/1/2015 (Insured FGIC).................... 4,500,000 4,424,265
---------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,379,830,202)................................................... $1,444,305,802
===============
SHORT-TERM MUNICIPAL INVESTMENTS-4.1%
California Pollution Control Financing Authority, VRDN:
RRR (Honey Lake Power Company Project)
4.35% (LOC; Banque Nationale De Paris) (c,d).......................... $ 7,000,000 $ 7,000,000
SWDR (Shell Oil Company Martinez Project) 4.15% (d)..................... 11,900,000 11,900,000
California Statewide Community Development Authority, VRDN
Apartment Development Revenue Refunding:
3.50% (d)............................................................. 20,000,000 20,000,000
4.20% (d)............................................................. 10,000,000 10,000,000
Los Angeles, Multi-Family Revenue, VRDN
(Loans To Lender Program) 4.30% (d)..................................... 2,500,000 2,500,000
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Southern California Public Power Authority, Transmission Project Revenue,
VRDN
(Southern Transmission) 3.25% (d)....................................... $ 10,000,000 $ 10,000,000
---------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $61,400,000)...................................................... $ 61,400,000
===============
TOTAL INVESTMENTS-100.0%
(cost $1,441,230,202)................................................... $1,505,705,802
===============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
BIGI Bond Investors Guaranty Insurance LOC Letter of Credit
CGIC Capital Guaranty Insurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
FSA Financial Security Assurance SWDR Solid Waste Disposal Revenue
GNMA Government National Mortgage Association SFMR Single Family Mortgage Revenue
HR Hospital Revenue TAN Tax Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 53.0%
AA Aa AA 14.4
A A A 16.2
BBB Baa BBB 1.2
F1 MIG1/P1 SP1/A1 1.6
Not Rated(f) Not Rated(f) Not Rated(f) 13.6
-------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Bonds which are prerefunded are collateralized by U.S. government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Non-income producing security.
(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 Manager 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, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,441,230,202)-see statement................................... $1,505,705,802
Cash.................................................................... 6,399,350
Interest receivable..................................................... 28,707,883
Receivable for investment securities sold............................... 18,387,279
Prepaid expenses........................................................ 23,495
--------------
1,559,223,809
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $901,426
Payable for Common Stock redeemed....................................... 304,447
Accrued expenses and other liabilities.................................. 263,526 1,469,399
--------- --------------
NET ASSETS ................................................................ $1,557,754,410
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,529,162,729
Accumulated net realized (loss) on investments.......................... (35,883,919)
Accumulated net unrealized appreciation on investments-Note 3........... 64,475,600
--------------
NET ASSETS at value applicable to 107,144,235 shares outstanding
(300 million shares of $.01 par value Common Stock authorized).......... $1,557,754,410
==============
NET ASSET VALUE, offering and redemption price per share
($1,557,754,410 / 107,144,235 shares)................................... $14.54
=======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $99,680,878
EXPENSES:
Management fee-Note 2(a).............................................. $ 9,237,533
Shareholder servicing costs-Note 2(b)................................. 1,258,217
Custodian fees........................................................ 105,223
Prospectus and shareholders' reports.................................. 95,639
Professional fees..................................................... 69,980
Directors' fees and expenses-Note 2(c)................................ 41,938
Registration fees..................................................... 26,466
Miscellaneous......................................................... 83,242
------------
TOTAL EXPENSES.................................................... 10,918,238
-----------
INVESTMENT INCOME-NET............................................. 88,762,640
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(35,847,441)
Net unrealized appreciation on investments.............................. 28,991,441
-------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (6,856,000)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $81,906,640
============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
-----------------------------------
1994 1995
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 98,860,776 $ 88,762,640
Net realized gain (loss) on investments................................. 14,715,643 (35,847,441)
Net unrealized appreciation (depreciation) on investments for the year.. (79,157,377) 28,991,441
---------------- ----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 34,419,042 81,906,640
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (99,704,852) (88,762,640)
Net realized gain on investments........................................ (19,722,025) (5,043,994)
---------------- ----------------
TOTAL DIVIDENDS....................................................... (119,426,877) (93,806,634)
================ =================
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 620,929,689 774,956,088
Dividends reinvested.................................................... 78,107,135 59,447,230
Cost of shares redeemed................................................. (790,202,833) (923,531,181)
---------------- ----------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.............. (91,166,009) (89,127,863)
---------------- ----------------
TOTAL (DECREASE) IN NET ASSETS.................................... (176,173,844) (101,027,857)
NET ASSETS:
Beginning of year....................................................... 1,834,956,111 1,658,782,267
---------------- ----------------
End of year............................................................. $1,658,782,267 $1,557,754,410
================ ===============
SHARES SHARES
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 42,109,715 54,884,789
Shares issued for dividends reinvested.................................. 5,084,822 4,208,309
Shares redeemed......................................................... (53,152,760) (65,606,330)
---------------- ----------------
NET (DECREASE) IN SHARES OUTSTANDING.................................. (5,958,223) (6,513,232)
================ ================
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: 1991 1992 1993 1994 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $14.43 $14.66 $14.82 $15.34 $14.59
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net........................ .99 .93 .89 .84 .82
Net realized and unrealized gain (loss) on investments .23 .20 .66 (.57) --
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... 1.22 1.13 1.55 .27 .82
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net......... (.99) (.93) (.88) (.85) (.82)
Dividends from net realized gain on investments -- (.04) (.15) (.17) (.05)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.99) (.97) (1.03) (1.02) (.87)
------- ------- ------- ------- -------
Net asset value, end of year................. $14.66 $14.82 $15.34 $14.59 $14.54
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN.......................... 8.75% 7.90% 10.89% 1.58% 5.93%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .69% .68% .69% .70% .71%
Ratio of net investment income to average net assets 6.82% 6.32% 5.88% 5.46% 5.77%
Portfolio Turnover Rate...................... 55.82% 45.58% 41.40% 28.14% 39.85%
Net Assets, end of year (000's Omitted)...... $1,629,837 $1,751,880 $1,834,956 $1,658,782 $1,557,754
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, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc.
(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 original issue 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, 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 and
excise taxes.
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $2,069,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through May 31, 1995 which are treated, for Federal income tax purposes,
as arising in fiscal 1996. If not applied, the carryover expires in fiscal
2003.
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, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation 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, 1995, the Fund was charged an aggregate of $483,217 pursuant to the
Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $4,500 and an attendance fee of $500 per meeting.
The Chairman of the Board receives an additional 25% of such compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $1,171,923,726 and $1,299,546,628, respectively, for the year
ended May 31, 1995, and consisted entirely of long-term and short-term
municipal investments.
At May 31, 1995, accumulated net unrealized appreciation on investments
was $64,475,600, consisting of $85,148,492 gross unrealized appreciation and
$20,672,892 gross unrealized depreciation.
At May 31, 1995, 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 LLP, 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, 1995, 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, 1995 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus California Tax Exempt Bond Fund, Inc. at May 31, 1995,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
Ernst & Young LLP
New York, New York
June 30, 1995
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, 1995:
- 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 $.0468 per share paid by the Fund on December 14, 1994 represents a
long-term capital gain distribution.
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 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
DREYFUS CALIFORNIA
TAX EXEMPT BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 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. 928AR955
California
Tax Exempt
Bond Fund, Inc.
Annual Report
May 31, 1995
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 |
|--------------- | ----------------- | -----------------|
| 5/31/85 | 10,000 | 10,000 |
| 5/31/86 | 11,662 | 11,463 |
| 5/31/87 | 12,424 | 12,084 |
| 5/31/88 | 13,539 | 12,752 |
| 5/31/89 | 15,098 | 14,153 |
| 5/31/90 | 16,203 | 15,016 |
| 5/31/91 | 17,836 | 16,329 |
| 5/31/92 | 19,587 | 17,619 |
| 5/31/93 | 21,931 | 19,538 |
| 5/31/94 | 22,472 | 19,846 |
| 5/31/95 | 24,519 | 21,022 |
|---------------------------------------------------------|
*Source: Lehman Brothers
