DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus California
Tax Exempt Bond Fund. For its semi-annual reporting period ended November 30,
1995, your Fund produced a total return of 3.37%.* Income dividends of
approximately $.397 per share were paid,** exempt from Federal and State of
California personal income taxes, which is equivalent to an annualized
tax-free distribution rate per share of 5.42%.***
THE ECONOMY
Modest economic growth and low inflation have spurred a dramatic rally in
the bond market for most of 1995. The Federal Reserve Board's recent
reduction of the Fed Funds rate confirms what investors had already
suspected: that inflation, at least for the immediate future, is under
control. Now questions abound regarding the duration of the economic recovery
and the likelihood of recession.
The economic recovery of the 1990s was productivity-driven. Corporations
implemented extraordinary cost control measures that, while dramatically
improving bottom line earnings, now contribute to the slow rate of employment
growth. Job creation is a significant factor that affects consumer spending,
and is a major component of economic activity. New job creation, currently
running at the slowest pace of the post-World War II era, is worrisome.
Indeed, wages and salaries grew at under 3% over the past year, barely
keeping pace with inflation. Still, surveys indicate that consumers remain
optimistic, despite indications that their spending is being affected by the
slow growth in disposable income. Recent reports on retail sales confirm this
reticence in spending. A consumer-led weakening of the economy could lead to
further Federal Reserve easing of monetary policy.
It was concern about lagging economic growth that prompted the Federal
Reserve to ease the Federal Funds rate two times in 1995, first in July and
then again in December. The housing market and new home construction had been
helped earlier this year by low interest rates, though both have exhibited
signs of weakness recently. Business capital spending, another engine of
economic growth, has been solid. Exports remain another bright area of the
economy. Because of the new competitiveness of American businesses abroad,
the U.S. trade deficit continues to shrink. Through September, the trade
deficit with Japan narrowed for the sixth consecutive month. Exports, while a
relatively small component of overall economic activity in this country,
provide an important support for the job market. If U.S. products lose
competitiveness in world markets, foreign orders may go elsewhere and jobs
could be lost here.
MARKET ENVIRONMENT
Municipal bonds have enjoyed a dramatic bull market for the past 12
months. Current business sluggishness may result in further Fed easing next
year, particularly if the Clinton Administration and Congress can arrive at a
meaningful budget agreement. The prospect of a balanced Federal budget should
be beneficial to the bond market since it could mean a reduction in the
issuance of government securities. A similar supply situation is present in
the municipal bond market. The redemption of existing municipal bonds has
outpaced the rate of new issuance for two years, and is expected to recur in
1996.
Overall, we remain confident in our optimistic view of the municipal bond
market. Yet we are also mindful of the stimulatory effect of easing monetary
policy, and are watchful for any signs of a reigniting of inflationary
pressures in the economy.
THE PORTFOLIO
During the reporting period, the portfolio's structure was moderately
aggressive in keeping with our view of interest-rate trends. We have remained
fully invested when possible to maximize income to our shareholders. Of
course, we continue to closely monitor credit quality. Concern about Orange
County's default has had a minimal impact on California credits as a whole,
but continues to roil those issuers located within the County. In addition,
real estate-related projects continue to be a source of concern as the real
estate market continues to lag the improvement seen in other sectors of the
California economy.
For most of this year, market yields have declined significantly. This
persistently low interest rate environment is a major threat to an
income-oriented fund, such as your Dreyfus California Tax Exempt Bond Fund.
The risk of early redemption of high coupon securities grows with each
passing day. A principal strategy to address this risk has been to identify
such securities, attempt to achieve a price above the redemption value, and
reinvest proceeds at an attractive level of income. This will be an ongoing
exercise in the coming year.
With inflation low, the economy sluggish but resilient, and the Federal
Reserve's outstanding track record to date, we do not envision a major
sell-off due to accelerating inflation. We therefore will continue to
maintain a fully invested position with strong credit quality during the
coming months.
The high level of volatility exhibited by the market in recent years
underscores the need to maintain a disciplined and long-term focus. Our
primary task _ to maximize current income exempt from Federal and California
income taxes to the extent consistent with preservation of capital _
continues to guide our portfolio management decisions.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
(Richard J. Moynihan Signature logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
December 21, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
***Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-95.6% AMOUNT VALUE
________ ________
<S> <C> <C>
CALIFORNIA-95.6%
Alameda County, COP:
7.25%, 12/1/2014 (Insured; BIGI) (Prerefunded 12/1/2000) (a)............ $ 5,980,000 $ 6,910,069
7.25%, 12/1/2015 (Insured; BIGI) (Prerefunded 12/1/2000) (a)............ 4,045,000 4,674,119
Anaheim Electric System, COP
6.75%, 10/1/2022 (Insured; AMBAC) (Prerefunded 10/1/2000) (a)........... 1,500,000 1,693,785
Anaheim Public Finance Authority, Revenue:
Electric Utility 5.75%, 10/1/2022....................................... 5,000,000 5,037,250
Tax Allocation 6.45%, 12/28/2018 (Insured; MBIA) (b).................... 20,000,000 21,712,800
Bay Area Government Association, Tax Allocation Revenue
(California Redevelopment Agency) 6%, 12/15/2024........................ 11,500,000 11,994,960
Bellflower, COP, Refunding
(Bellflower Civic Center) 7.20%, 10/1/2019 (Insured; MBIA).............. 1,475,000 1,633,931
Berkeley, Health Facilities Revenue, Refunding
(Alta Bates Medical Center) 6.55%, 12/1/2022........................... 17,000,000 17,219,980
Big Independent Cities Excess Pool Joint Power Authority, Insurance Program
Revenue
8.25%, 3/1/2009......................................................... 5,750,000 5,957,288
Brea Public Finance Authority, Revenue, Tax Allocation (Redevelopment
Project):
6.75%, 8/1/2022 (Insured; MBIA) (Prerefunded 8/1/2001) (a).............. 4,625,000 5,274,628
6.75%, 8/1/2022 (Insured; MBIA)......................................... 1,775,000 1,938,176
Burbank Redevelopment Agency, Tax Allocation
(City Center Redevelopment Project) 5.50%, 12/1/2023 (Insured; CGIC).... 4,000,000 3,896,920
California:
6.40%, 2/1/2022......................................................... 30,000,000 30,516,600
5.90%, 4/1/2023 ........................................................ 13,000,000 13,227,370
6.375%, 2/1/2027 (Insured; AMBAC)....................................... 30,000,000 30,789,300
California Department of Veteran Affairs, Home Purchase Revenue
8.30%, 8/1/2019......................................................... 1,000,000 1,048,890
California Department of Water Resources
(Central Valley Project) Water System Revenue:
6.125%, Series J-2, 12/1/2013......................................... 3,000,000 3,113,940
Refunding 5.875%, 12/1/2025........................................... 2,000,000 2,020,880
California Educational Facilities Authority, Revenue:
(Claremont Colleges Pooled Facilities) 6.375%, 5/1/2022................. 3,655,000 3,774,811
(Loyola Marymount University) 5.75%, 10/1/2024.......................... 4,750,000 4,693,570
California Health Facilities Financing Authority, Revenue:
(Adventist Health System-West):
6.40%, 3/1/2002 (Insured; MBIA)....................................... 1,955,000 2,161,487
6.50%, 3/1/2003 (Insured; MBIA)....................................... 2,140,000 2,367,161
(Catholic Health Facilities) 5%, 7/1/2008 (Insured; MBIA)............... 5,000,000 4,924,100
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_____________ __________
CALIFORNIA (CONTINUED)
California Health Facilities Financing Authority, Revenue (continued):
(Downey Community Hospital):
5.625%, 5/15/2008..................................................... $ 2,500,000 $ 2,497,700
5.75%, 5/15/2015...................................................... 4,750,000 4,633,198
(Episcopal Homes Foundation) 7.75%, 7/1/2018............................ 4,270,000 4,367,997
(Mills-Peninsula Hospital) 7.50%, 1/15/2000 (Prerefunded 1/15/1997) (a). 800,000 848,704
(Robert F. Kennedy Medical Center) 7.75%, 3/1/2014...................... 1,500,000 1,620,720
(Saint Joseph's Health System) 6.75%, 7/1/2021 (Prerefunded 7/1/2001) (a) 8,500,000 9,648,945
(San Diego Hospital Association) 6.125%, 8/1/2022 (Insured; MBIA)....... 4,250,000 4,420,425
(Stanford University):
6.50%, 11/1/2020 (Prerefunded 11/1/2000) (a).......................... 8,975,000 10,021,306
6.50%, 11/1/2020...................................................... 1,025,000 1,068,614
(Unihealth America) 7.625%, 10/1/2015 (Insured; AMBAC).................. 55,000 60,594
California Housing Finance Agency:
Home Mortage Revenue:
6.30%, 2/1/2008....................................................... 2,775,000 2,899,681
6.35%, 2/1/2009....................................................... 2,950,000 3,070,301
6.40%, 2/1/2010....................................................... 3,115,000 3,249,225
8.20%, 8/1/2017....................................................... 115,000 121,729
8.30%, 8/1/2019....................................................... 170,000 181,006
6.70%, 8/1/2025....................................................... 8,550,000 8,869,001
7.125%, 2/1/2026...................................................... 3,690,000 3,943,282
6.55%, 8/1/2026....................................................... 11,250,000 11,704,163
6.15%, 8/1/2027 (Insured; MBIA) (c)................................... 7,000,000 7,046,970
7.65%, 8/1/2029....................................................... 11,150,000 11,816,213
MFHR 6.30%, 8/1/2026 (Insured; AMBAC)................................... 7,150,000 7,240,162
Multi-Unit Rental Housing Revenue 6.85%, 8/1/2015....................... 3,140,000 3,292,102
Single Family Mortgage:
6.25%, 8/1/2014 (Insured; AMBAC)...................................... 3,650,000 3,713,766
6.25%, 2/1/2018 (Insured; FHA)........................................ 2,000,000 2,036,640
6.30%, 8/1/2024....................................................... 8,000,000 8,159,680
6.45%, 8/1/2025....................................................... 15,355,000 15,829,623
Revenue 6.25%, 8/1/2027 (Insured; AMBAC).............................. 6,600,000 6,697,614
California Pollution Control Financing Authority:
PCR:
(Pacific Gas & Electric Co.):
6.35%, 6/1/2009................................................... 5,000,000 5,230,000
5.85%, 12/1/2023 (Insured: AMBAC)................................. 5,000,000 5,031,950
5.85%, 12/1/2023 (Insured; MBIA) ................................. 20,000,000 20,127,800
(Southern California Edison Co.):
6.40% 12/1/2024................................................... 12,600,000 12,981,906
6.40%, 12/1/2024 (Insured; AMBAC)................................. 4,125,000 4,384,339
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_____________ ___________
CALIFORNIA (CONTINUED)
California Pollution Control Financing Authority (continued):
PCR (continued):
(Southern California Edison Co.) (continued):
6.40% 12/1/2024 (Insured; FGIC)................................... $ 10,000,000 $ 10,628,700
RRR (Waste Management Inc.) 7.15%, 2/1/2011............................. 17,500,000 19,237,050
SWDR:
(Browning Ferris Industry) 6.75%, 9/1/2019............................ 3,400,000 3,591,794
(Keller Canyon Landfill Co. Project) 6.875%, 11/1/2027................ 7,440,000 7,910,506
California Public Works Board, LR:
(California State University Library Project) 6.25%, 9/1/2016........... 11,900,000 12,224,513
(Community College Projects) 6%, 10/1/2014.............................. 11,000,000 11,090,530
(Department of Corrections, California State Prison, Susanville)
5.375%, 6/1/2018 (Insured; MBIA)...................................... 5,000,000 4,923,050
(Department of Corrections, Calipatria State Prison, Imperial County)
6.50%, 9/1/2017 (Insured; MBIA)....................................... 10,000,000 11,273,600
(Department of Corrections, Madera State Prison):
6%, 6/1/2009.......................................................... 7,870,000 8,310,799
(Franchise Tax Board) 6.25%, 9/1/2011................................. 3,500,000 3,617,810
(Various University of California Projects):
5.50%, 6/1/2014....................................................... 6,750,000 6,563,093
6.70%, 10/1/2017...................................................... 8,000,000 8,568,560
5.50%, 12/1/2018...................................................... 4,750,000 4,573,158
6.375%, 10/1/2019..................................................... 12,775,000 13,290,855
California Statewide Community Development Authority:
(Pacific Homes) 6%, 4/1/2017............................................ 7,500,000 7,512,525
Revenue:
COP (Saint Joseph Health System):
Refunding 5.50%, 7/1/2009......................................... 8,645,000 8,720,817
Refunding 5.50%, 7/1/2010......................................... 9,115,000 9,112,721
6.50%, 7/1/2015................................................... 7,000,000 7,483,140
(Insured Health Facilities, Unihealth) 5.50%, 10/1/2014 (Insured; AMBAC) 11,750,000 11,674,095
(Oakland Convention Center Project) 5.50%, 10/1/2014 (Insured; AMBAC). 12,000,000 11,826,120
Calleguas Municipal Water District, COP
6.25%, 7/1/2017 (Insured; AMBAC) (Prerefunded 7/1/2001) (a)............. 15,000,000 16,714,350
Central Basin Municipal Water District, COP
(Century Reclamation Program)
6.875%, 2/1/2016 (Insured; FGIC) (Prerefunded 2/1/2000) (a)............. 2,935,000 3,287,552
Central California Joint Powers Health Financing Authority, COP, Refunding
(Community Hospitals of Central California Project) 5.25%, 2/1/2013..... 5,750,000 5,364,175
Central Coast Water Authority, Revenue
(State Water Project Regional Facilities) 6.60%, 10/1/2022 (Insured; AMBAC) 3,800,000 4,138,732
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________________ ___________
CALIFORNIA (CONTINUED)
Chico Public Financing Authority, Revenue
(Southeast Chico Redevelopment Project) 6.625%, 4/1/2021 (Insured; FGIC) $ 9,235,000 $ 9,877,756
Contra Costa County, COP (Merrithew Memorial Hospital) 6.60%, 11/1/2012..... 10,000,000 10,582,500
Corona Community Facilities District, Special Tax, Refunding:
7.60%, 9/1/2013......................................................... 5,755,000 6,085,049
7.60%, 9/1/2017......................................................... 3,000,000 3,114,930
7.70%, 9/1/2019......................................................... 2,000,000 2,126,800
Dos Palos Public Financing Authority, Local Agency Revenue 7.90%, 10/1/2020. 8,615,000 8,565,291
East Bay Municipal Utilities District, Revenue:
Wastewater Treatment System:
Refunding 5.50%, 6/1/2013 (Insured; AMBAC)............................ 16,900,000 16,862,313
Refunding 5.55%, 6/1/2020 (Insured; AMBAC)............................ 26,500,000 26,464,490
7.20%, 6/1/2020 (Insured; AMBAC) (Prerefunded 6/1/2000) (a)........... 3,325,000 3,792,894
Water System:
6%, 6/1/2020.......................................................... 5,900,000 6,063,961
6.375%, 6/1/2021 (Insured; AMBAC) (Prerefunded 12/1/2001) (a)......... 22,000,000 24,795,980
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2024................. 2,365,000 2,458,749
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment
Projects)
5.50%, 8/1/2023 (Insured; CGIC)......................................... 9,000,000 8,768,430
Folsom, Special Tax (Community Facilities District Number 3) 7.80%, 12/1/2015 1,900,000 2,023,367
Folsom Public Financing Authority, Local Agency Revenue
7.90%, 10/1/2019........................................................ 18,120,000 18,824,687
Fontana, Special Tax (Community Facilities District Number 3) (Hunter's
Ridge):
8.60%, 10/1/2010........................................................ 5,500,000 5,109,005
8.70%, 10/1/2015........................................................ 11,500,000 10,681,545
Fontana Redevelopment Agency, MFHR, Refunding
(Village Drive) 7.15%, 5/1/2028 (Insured; FHA).......................... 3,970,000 4,200,895
Foothill, Eastern Transportation Corridor Agency, Toll Road Revenue:
6.50%, 1/1/2032......................................................... 3,400,000 3,484,796
6%, 1/1/2034............................................................ 18,875,000 18,554,691
Fresno Health Facilities, Revenue (Holy Cross Health System Corp.)
5.625%, 12/1/2015 (Insured; MBIA)....................................... 7,000,000 7,031,850
Hesperia Water District, COP, Refunding
(Water Facilities Improvement Project) 7.15%, 6/1/2026 (Insured; FGIC).. 4,500,000 5,078,475
Industry Urban Development Agency, Refunding (Civic Recreational Project):
7.375%, 5/1/2015 (Prerefunded 5/1/1997) (a)............................. 765,000 818,573
7.375%, 5/1/2015........................................................ 235,000 245,422
Inglewood, HR (Daniel Freeman Hospital, Inc.) 6.75%, 5/1/2013............... 6,300,000 6,646,626
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______________ _____________
CALIFORNIA (CONTINUED)
La Mirada Redevelopment Agency,
5.90%, 8/15/2024 (Insured; CGIC)........................................ $ 5,000,000 $ 5,107,650
Lancaster Redevelopment Agency, Tax Allocation, Refunding
(Lancaster Redevelopment Project)
5.80%, 8/1/2023 (Insured; MBIA)......................................... 6,000,000 6,091,260
La Verne Community Facilities District, Special Tax
(Koll Business Center) 7.875%, 3/1/2014................................. 3,625,000 3,898,615
Lake Elsinore Public Financing Authority, Revenue:
Local Agency:
7.50%, 10/1/2010...................................................... 1,100,000 1,012,275
8%, 10/1/2020......................................................... 8,520,000 8,122,883
7.75%, 10/1/2021...................................................... 5,000,000 4,633,700
Tax Allocation
(Lake Elsinore Redevelopment Project) 6.25%, 2/1/2019 (Insured; FGIC). 4,220,000 4,395,594
Loma Linda, HR, Refunding (Loma Linda University Medical Center Project)
7%, 12/1/2015 (Insured; AMBAC).......................................... 12,355,000 13,640,908
Long Beach:
COP (Airport Improvements Project)
6.95%, 6/1/2016 (Insured; MBIA) (Prerefunded 6/1/1999) (a)............ 4,000,000 4,444,800
Harbor Revenue 5.375%, 5/15/2020 (Insured; MBIA)........................ 31,285,000 30,292,014
Los Angeles:
Home Mortgage Revenue 9.875%, 12/1/2004................................. 10,000 10,146
Wastewater System Revenue:
Refunding 7%, 6/1/2011 (Insured; AMBAC)............................... 2,830,000 3,100,039
Refunding 6%, 12/1/2018 (Insured; FGIC)............................... 14,600,000 15,110,416
6.80%, 8/1/2019 (Prerefunded 8/1/1998) (a)............................ 1,050,000 1,143,954
5.875%, 6/1/2024 (Insured; MBIA)...................................... 5,000,000 5,110,050
Los Angeles Community Redevelopment Agency, Tax Allocation:
(Bunker Hill Project)
5.625%, 12/1/2023 (Insured; FSA)...................................... 9,290,000 9,225,249
(Hollywood Redevelopment Project) 6.10%, 7/1/2022 (Insured; MBIA)....... 4,900,000 5,114,081
Los Angeles County, COP:
(Disney Parking Project)
6.50%, 3/1/2023....................................................... 7,440,000 7,565,662
(Edmund D. Edelman Childrens' Court) 6%, 4/1/2012 (Insured; AMBAC)...... 9,000,000 9,379,350
(Van Nuys Courthouse Project) 9%, 6/1/2015 (Prerefunded 6/1/1996) (a)... 225,000 235,654
Los Angeles County Health Facilities Authority, LR (Olive View Medical
Center)
7.50%, 3/1/2008 (Prerefunded 3/1/1998) (a).............................. 1,980,000 2,160,774
Los Angeles County Metropolitan Transportation Authority,
Sales Tax Revenue:
Refunding 5.50%, 7/1/2013............................................. 4,750,000 4,673,573
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_____________ ____________
CALIFORNIA (CONTINUED)
Los Angeles County Metropolitan Transportation Authority (continued),
Sales Tax Revenue (continued):
5.50%, 7/1/2017 (Insured; AMBAC)...................................... $ 5,000,000 $ 4,990,350
Refunding 5%, 7/1/2021 (Insured; FGIC)................................ 7,000,000 6,581,470
5.25%, 7/1/2023 (Insured; AMBAC)...................................... 3,800,000 3,699,908
Los Angeles County Public Works Financing Authority, Revenue, Refunding
5%, 3/1/2011............................................................ 3,000,000 2,907,930
Los Angeles County Sanitation Districts Financing Authority, Revenue
(Capital Projects) 5.375%, 10/1/2013.................................... 4,000,000 3,950,000
Los Angeles County Transport Commission, Sales Tax Revenue,
Refunding 5.75%, 7/1/2018............................................... 2,150,000 2,127,103
Los Angeles Department Water and Power, Revenue:
Electric Plant:
5.30%, 2/15/2025...................................................... 4,200,000 4,039,896
Crossover Refunding:
5.375%, 9/1/2023.................................................. 2,000,000 1,932,720
5.25%, 11/15/2026 (Insured; MBIA)................................. 15,000,000 14,520,600
5.25%, 11/15/2026 (Insured; FGIC)................................. 5,750,000 5,566,230
5.875%, 9/1/2030 (Insured; FGIC).................................. 4,500,000 4,586,490
7.10%, 1/15/2031...................................................... 2,160,000 2,455,121
Waterworks, Refunding:
5.90%, 5/15/2011 (Insured; FGIC)...................................... 2,190,000 2,314,239
6.40%, 5/15/2028...................................................... 2,435,000 2,575,037
6.375%, 7/1/2034 (Insured; MBIA)...................................... 12,000,000 12,848,400
Los Angeles Harbor Department, Revenue:
6.625%, 8/1/2019........................................................ 3,855,000 4,121,727
6.625%, 8/1/2019 (Insured; AMBAC)....................................... 6,000,000 6,502,920
6.625%, 8/1/2025........................................................ 17,780,000 19,010,198
Los Angeles Municipal Improvement Corp., LR, Refunding
(Central Library Project):
5.375%, 6/1/2011...................................................... 3,725,000 3,595,892
6.30%, 6/1/2016....................................................... 3,500,000 3,586,660
6.30%, 6/1/2018....................................................... 4,250,000 4,358,120
6.35%, 6/1/2020....................................................... 7,700,000 7,910,980
Mesa Consolidated Water District, COP
(Mesa Consolidated Water Improvement Co.-Capital Improvement)
7.625%, 3/15/2008 (Insured; AMBAC) (Prerefunded 3/15/1998) (a).......... 1,500,000 1,648,695
Metropolitan Water District of Southern California, Waterworks Revenue,
6.75%, 7/1/2018 (Prerefunded 7/1/2001) (a).............................. 4,750,000 5,392,058
M-S-R Public Power Agency, Revenue (San Juan Project)
6.50%, 7/1/2017 (Insured; MBIA)......................................... 3,200,000 3,435,200
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
______________ ____________
CALIFORNIA (CONTINUED)
Modesto, Multi-Family Housing Mortage Revenue, Refunding 6.40%, 6/1/2029.... $ 7,723,000 $ 7,885,183
Moreno Valley Unified School District,
Community Facilities District, Special Tax:
7.65%, 8/15/2009...................................................... 5,000,000 5,277,650
7.70%, 8/15/2014...................................................... 9,000,000 9,465,660
Moulton Niguel Water District (Improvement District Number 6)
7.25%, 4/1/2016 (Insured; AMBAC) (Prerefunded 4/1/2000) (a)............. 5,000,000 5,692,600
Mount Diablo Hospital District, Revenue
6.125%, 12/1/2020 (Insured; AMBAC) (Prerefunded 12/1/2000) (a).......... 5,000,000 5,523,400
Mount Diablo Unified School District, Community Facilities District Special
Tax
7.05%, 8/1/2020 (Insured; FGIC)......................................... 3,500,000 3,912,160
Northern California, Transmission Revenue
(California-Oregon Transmission Project):
6.50%, 5/1/2016 (Insured; MBIA)....................................... 2,250,000 2,438,235
6%, 5/1/2024 (Insured; MBIA).......................................... 5,000,000 5,140,200
Northern California Power Agency, Power Revenue:
(Hydroelectric Project) 7%, 7/1/2016 (Insured; AMBAC) (Prerefunded 1/1/2016) (a) 670,000 819,176
Refunding 7.50%, 7/1/2023 (Insured; AMBAC) (Prerefunded 7/1/2021) (a)... 375,000 467,708
Palm Springs Unified School District
6.125%, 2/1/2020 (Insured; MBIA)........................................ 4,000,000 4,185,120
Pasadena, COP, Refunding (Capital Project) 5.75%, 1/1/2013.................. 1,500,000 1,501,350
Pasadena Community Development Commission, MFHR, (Civic Center)
6.45%, 12/1/2021 (Insured; FSA)......................................... 15,000,000 15,255,750
Port of Oakland, Revenue:
Port:
6.50%, 11/1/2016 (Insured; MBIA)...................................... 8,300,000 8,881,498
6.40%, 11/1/2022 (Insured; MBIA)...................................... 10,000,000 10,645,300
Special Facilities
(Mitsui O.S.K. Lines Ltd.) 6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (d) 2,000,000 2,085,580
Rancho Cucamonga Redevelopment Agency, Tax Allocation
(Rancho Cucamonga Redevelopment Project):
7.125%, 9/1/2019 (Prerefunded 9/1/1999) (a)........................... 2,545,000 2,858,493
7.125%, 9/1/2019 (Insured; MBIA)...................................... 2,455,000 2,711,621
6.75%, 9/1/2020 (Insured; MBIA)....................................... 1,665,000 1,797,917
6.75%, 9/1/2020 (Insured; MBIA) (Prerefunded 9/1/1999) (a)............ 1,835,000 2,037,309
Redding Redevelopment Agency, TAN, Refunding
(Canby, Hilltop, Cypress) 5%, 9/1/2023 (Insured; CGIC).................. 1,285,000 1,187,983
Redlands, COP, 7%, 12/1/2022 (Insured; MBIA) (Prerefunded 12/1/2000) (a).... 2,600,000 2,974,010
Riverside County Asset Leasing Corp., Leasehold Revenue
(Riverside County Hospital Project) 6.25%, 6/1/2019..................... 7,500,000 7,576,050
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_____________ _____________
CALIFORNIA (CONTINUED)
Riverside County Community Facilities District, Special Tax:
7.80%, 9/1/2015......................................................... $ 7,000,000 $ 4,970,000
8.25%, 9/1/2016......................................................... 4,730,000 4,526,090
Sacramento, COP (Refunding-Public Facilities Project) 6%, 7/1/2012.......... 6,000,000 6,163,140
Sacramento City Financing Authority, Revenue
6.80%, 11/1/2020 (Prerefunded 11/1/2001) (a)............................ 2,800,000 3,213,756
Sacramento County, COP (Cherry Island Golf Course Project)
8.125%, 12/1/2018 (Prerefunded 12/1/1998) (a)........................... 1,500,000 1,708,860
Sacramento Municipal Utility District, Electric Revenue
5.75%, 1/1/2015 (Insured; MBIA)......................................... 6,100,000 6,195,282
Saddleback Community College District, COP
7%, 8/1/2019 (Insured; BIGI)............................................ 2,875,000 3,155,485
San Bernardino County, COP:
(Capital Facilities Project)
6.875%, 8/1/2024...................................................... 5,000,000 6,153,700
(Refunding, Medical Center Financing Project)
5.50%, 8/1/2024....................................................... 4,400,000 3,997,268
(West Valley Detention Center)
5.90%, 11/1/2001 (Insured; MBIA)...................................... 1,565,000 1,691,186
San Diego, IDR, Refunding
(San Diego Gas and Electric):
5.90%, 6/1/2018 (Insured; AMBAC)...................................... 5,000,000 5,103,850
5.90%, 9/1/2018 (Insured; AMBAC)...................................... 4,250,000 4,339,590
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 6,197,235
San Francisco City and County:
COP (25 Van Ness Avenue Project) 6%, 9/1/2016........................... 2,350,000 2,363,466
Sewer Revenue:
Refunding 5.90%, 10/1/2007 (Insured; AMBAC)........................... 10,000,000 10,683,600
Refunding 5.90%, 10/1/2008 (Insured; AMBAC)........................... 15,000,000 15,915,150
6.50%, 10/1/2021 (Insured; AMBAC) (Prerefunded 10/1/1999) (a)......... 500,000 551,660
SFMR, (GNMA/FNMA Mortgage Backed Securities Program) 7.45%, 1/1/2024.... 270,000 286,797
San Francisco City and County Airports Commission, International Airport
Revenue,
Refunding:
6.10%, 5/1/2003 (Insured; AMBAC)...................................... 3,000,000 3,290,880
6.20%, 5/1/2004 (Insured; AMBAC)...................................... 1,500,000 1,650,464
6.20%, 5/1/2008 (Insured; AMBAC)...................................... 2,500,000 2,708,650
6.50%, 5/1/2013 (Insured; AMBAC)...................................... 2,250,000 2,444,670
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
____________ _____________
CALIFORNIA (CONTINUED)
San Francisco City and County Public Utilities Commission, Water Revenue
6.50%, 11/1/2017........................................................ $ 3,500,000 $ 3,763,094
San Francisco City and County Redevelopment Agency, Multi-Family Revenue
(South Beach Project) 5.50%, 3/1/2014................................... 4,500,000 4,398,254
San Gabriel Valley Schools Financing Authority, Revenue, Refunding
(Pomona Unified School District) 5.50%, 2/1/2024........................ 4,500,000 4,250,880
San Jacinto Community Facilities District, Special Tax 7.75%, 9/1/2005...... 1,100,000 759,000
San Jose Redevelopment Agency, Tax Allocation
(Redevelopment Project) 5.75%, 8/1/2024................................. 10,525,000 10,385,753
San Marcos Public Facilities Authority, Tax Allocation Revenue:
6%, 1/1/2006 (Prerefunded 1/1/2002) (a)................................. 13,000,000 14,372,540
5.50%, 8/1/2023......................................................... 8,000,000 7,837,840
San Marcos Special Tax Community Facilities District 88-1
7.625%, 9/1/2019........................................................ 4,475,000 4,656,102
San Mateo County, COP (Capital Projects Program)
6.50%, 7/1/2017 (Insured; MBIA) (Prerefunded 7/1/2001) (a).............. 6,000,000 6,759,660
San Mateo Joint Powers Financing Authority, LR
(San Mateo County Health Care Center) 5.75%, 7/15/2022 (Insured; FSA)... 2,150,000 2,164,275
Santa Barbara, COP, Refunding (Water System Improvement Project)
6.70%, 4/1/2027 (Insured; AMBAC)........................................ 4,000,000 4,356,240
Santa Clara County, COP (Capital Project)
6.25%, 10/1/2016 (Insured; AMBAC)....................................... 10,000,000 10,488,400
Santa Cruz County, COP (Capital Facilities Project)
6.70%, 9/1/2020 (Insured; MBIA)......................................... 5,000,000 5,444,000
Santa Cruz County Public Financing Authority, Revenue, Refunding
7.10%, 9/1/2021 (Insured; MBIA)......................................... 6,500,000 7,201,350
Santa Rosa, Mortgage Revenue, Refunding
(Redwood Park Apartments Projects) 5.625%, 1/1/2026..................... 3,310,000 3,195,903
Southern California Public Power Authority, Revenue:
Power Project (Multiple Projects)
5.50%, 7/1/2020....................................................... 675,000 649,032
Transmission Project (Refunding - Southern Transmission Project)
6.125%, 7/1/2018...................................................... 1,470,000 1,515,393
Southern California Rapid Transportation District, COP (Workers Compensation
Fund)
6.50%, 7/1/2007 (Insured; MBIA)......................................... 22,900,000 25,114,430
University of California:
COP (UCLA Central Chiller/Cogeneration):
6.25%, 11/1/2009 (Prerefunded 11/1/1999) (a).......................... 3,000,000 3,280,110
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________________ _____________
CALIFORNIA (CONTINUED)
University of California (continued):
COP (UCLA Central Chiller/Cogeneration) (continued):
5.50%, 11/1/2017...................................................... $ 7,000,000 $ 6,804,350
Revenue (Multiple Purpose Projects):
5.125%, 9/1/2013 (Insured; AMBAC)..................................... 4,845,000 4,728,767
6.375%, 9/1/2024 (Insured; MBIA)...................................... 4,000,000 4,267,320
Wasco Public Finance Authority, Local Agency Revenue
7.75%, 10/1/2019........................................................ 17,050,000 11,082,500
West Basin Municipal Water District, COP
6.85%, 8/1/2016 (Insured; AMBAC) (Prerefunded 8/1/2000) (a)............. 6,000,000 6,779,880
West Sacramento Financing Authority, Water System Revenue
(Improvement Project) 5.50%, 8/1/2015 (Insured; FGIC)................... 4,500,000 4,470,210
____________ _____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,373,254,514)................................................... $1,442,777,297
==============
SHORT-TERM MUNICIPAL INVESTMENTS-4.4%
CALIFORNIA-4.3%
Anaheim, COP, VRDN (Refunding Project)
3.85% (Insured; AMBAC) (LOC; Industrial Bank of Japan) (d,e)............ 7,500,000 7,500,000
California Department of Water Resources, Water Revenue, CP 3.45%, 12/4/1995 7,936,000 7,936,000
California Health Facilities Financing Authority, Revenue, VRDN
(Scripps Memorial Hospital) 3.40% (e)................................... 8,900,000 8,900,000
California Pollution Control Financing Authority, RRR, VRDN
(Delano Project) 3.75% (LOC; ABN Ambro Bank N.V.) (d,e)................. 2,900,000 2,900,000
California Statewide Community Development Authority, VRDN
Apartment Development Revenue, Refunding 3.45% (e)...................... 400,000 400,000
IDR (Howard Leight Project) 4.15% (LOC; Sanwa Bank) (d,e)............... 3,500,000 3,500,000
Los Angeles County, TRAN 4.50%, 7/1/1996.................................... 5,000,000 5,030,850
Los Angeles County Metropolitian Transportation Authority, Sales Tax Revenue,
Refunding
VRDN 4% (Insured; MBIA) (LOC; Industrial Bank of Japan) (d,e)........... 5,000,000 5,000,000
San Francisco City and County Redevelopment Agency, Multi-Family Revenue,
VRDN (Bayside Village Project):
3.55%, Series A (LOC; Industrial Bank of Japan) (d,e)................. 12,100,000 12,100,000
3.55%, Series B (LOC; Industrial Bank of Japan) (d,e)................. 11,000,000 11,000,000
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_________________ ______________
U.S. RELATED-.1%
Commonwealth of Puerto Rico, Government Development Bank, Refunding,
VRDN 3.30% (LOC; Credit Suisse) (d,e)................................... $ 2,000,000 $ 2,000,000
___________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $66,258,739)...................................................... $ 66,266,850
=============
TOTAL INVESTMENTS-100.0%
(cost $1,439,513,253)................................................... $1,509,044,147
==============
</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
CP Commercial Paper MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FNMA Federal National Mortgage Association SWDR Solid Waste Disposal Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association TAN Tax Anticipation Notes
HR Hospital Revenue TRAN Tax and Revenue Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ---------- -------- ------------------ -------------------
<S> <C> <S> <C>
AAA Aaa AAA 54.8%
AA Aa AA 12.9
A A A 17.7
BBB Baa BBB 2.2
F1 MIG1/P1 SP1/A1 4.2
Not Rated (g) Not Rated (g) Not Rated (g) 8.2
_________
100.0%
=========
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 bond in full at the
earliest refunding date.
(b) Partially held by custodian as collateral for delayed delivery
security.
(c) Purchased on a delayed delivery basis.
(d) Secured by letters of credit.
(e) 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.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) 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 independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,439,513,253)-see statement................................... $1,509,044,147
Cash.................................................................... 1,160,742
Interest receivable..................................................... 28,223,425
Receivable for investment securities sold............................... 5,818,029
Receivable for Common Stock subscribed.................................. 990,000
Prepaid expenses........................................................ 21,637
_____________
1,545,257,980
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 761,115
Payable for investment securities purchased............................. 41,243,070
Payable for Common Stock redeemed....................................... 166,492
Accrued expenses and other liabilities 92,678 42,263,355
______________ ______________
NET ASSETS ................................................................ $1,502,994,625
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,465,460,891
Accumulated net realized (loss) on investments.......................... (31,997,160)
Accumulated net unrealized appreciation on investments-Note 3........... 69,530,894
_____________
NET ASSETS at value applicable to 102,819,570 outstanding shares of
Common Stock, equivalent to $14.62 per share (300 million shares of
$.01 par value authorized).............................................. $1,502,994,625
==============
STATEMENT OF OPERATIONS SIX MONTHS ENDED NOVEMBER 30, 1995 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 46,021,185
EXPENSES:
Management fee-Note 2(a).............................................. $ 4,437,942
Shareholder servicing costs-Note 2(b)................................. 426,812
Professional fees..................................................... 54,349
Custodian fees........................................................ 51,746
Prospectus and shareholders' reports.................................. 35,104
Directors' fees and expenses-Note 2(c)................................ 26,418
Registration fees..................................................... 15,351
Miscellaneous......................................................... 37,606
_______________
TOTAL EXPENSES.................................................... 5,085,328
______________
INVESTMENT INCOME-NET............................................. 40,935,857
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 3,886,759
Net unrealized appreciation on investments.............................. 5,055,294
_______________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 8,942,053
______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 49,877,910
===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MAY 31, NOVEMBER 30, 1995
1995 (UNAUDITED)
________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income-net.............................................. $ 88,762,640 $ 40,935,857
Net realized gain (loss) on investments............................ (35,847,441) 3,886,759
Net unrealized appreciation on investments for the period.......... 28,991,441 5,055,294
________________ _________________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. 81,906,640 49,877,910
________________ _________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.............................................. (88,762,640) (40,935,857)
Net realized gain on investments................................... (5,043,994) --
________________ _________________
TOTAL DIVIDENDS.................................................. (93,806,634) (40,935,857)
________________ _________________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold...................................... 774,956,088 629,555,898
Dividends reinvested............................................... 59,447,230 25,932,935
Cost of shares redeemed............................................ (923,531,181) (719,190,671)
________________ _________________
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS......... (89,127,863) (63,701,838)
________________ _________________
TOTAL (DECREASE) IN NET ASSETS............................... (101,027,857) (54,759,785)
NET ASSETS:
Beginning of period................................................ 1,658,782,267 1,557,754,410
________________ _________________
End of period...................................................... $1,557,754,410 $1,502,994,625
================ ==================
SHARES SHARES
________________ _________________
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................ 54,884,789 43,951,044
Shares issued for dividends reinvested............................. 4,208,309 1,807,117
Shares redeemed.................................................... (65,606,330) (50,082,826)
________________ ________________
NET (DECREASE) IN SHARES OUTSTANDING............................. (6,513,232) (4,324,665)
================ =================
See independent accountants' review report and 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 period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED MAY 31, NOVEMBER 30, 1995
______________________________________-__ ____________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
------ ------ ------ ------ ----- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $14.43 $14.66 $14.82 $15.34 $14.59 $14.54
------ ------ ------ ------ ----- ----------
INVESTMENT OPERATIONS:
Investment income-net............ .99 .93 .89 .84 .82 .40
Net realized and unrealized gain (loss)
on investments................. .23 .20 .66 (.57) -- .08
------ ------ ------ ------ ----- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.22 1.13 1.55 .27 .82 .48
------ ------ ------ ------ ----- ----------
DISTRIBUTIONS:
Dividends from investment income-net (.99) (.93) (.88) (.85) (.82) (.40)
Dividends from net realized gain
on investments................. -- (.04) (.15) (.17) (.05) --
------ ------ ------ ------ ----- ----------
TOTAL DISTRIBUTIONS............ (.99) (.97) (1.03) (1.02) (.87) (.40)
------ ------ ------ ------ ----- ----------
Net asset value, end of period... $14.66 $14.82 $15.34 $14.59 $14.54 $14.62
====== ====== ====== ====== ====== ===========
TOTAL INVESTMENT RETURN.............. 8.75% 7.90% 10.89% 1.58% 5.93% 6.72%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .69% .68% .69% .70% .71% .69%(1)
Ratio of net investment income to
average net assets............. 6.82% 6.32% 5.88% 5.46% 5.77% 5.52%(1)
Portfolio Turnover Rate.......... 55.82% 45.58% 41.40% 28.14% 39.85% 16.86%(2)
Net Assets, end of period
(000's Omitted)................ $1,629,837 $1,751,880 $1,834,956 $1,658,782 $1,557,754 $1,502,995
(1) Annualized.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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. Premier Mutual
Fund Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. 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. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(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 (UNAUDITED) (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 six months ended November 30, 1995.
Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned
subsidiary of the Manager, serves as the Fund's Transfer and Dividend
Disbursing Agent.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining 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 six months ended November 30, 1995, the Fund was charged an
aggregate of $98,069 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund 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,
excluding short-term securities, during the six months ended November 30,
1995, amounted to $241,895,647 and $252,404,406, respectively.
At November 30, 1995, accumulated net unrealized appreciation on
investments was $69,530,894, consisting of $81,268,744 gross unrealized
appreciation and $11,737,850 gross unrealized depreciation.
At November 30, 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.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus California Tax Exempt Bond Fund, Inc., including the statement of
investments, as of November 30, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended November 30, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
May 31, 1995 and financial highlights for each of the five years in the
period ended May 31, 1995 and in our report dated June 30, 1995, we expressed
an unqualified opinion on such statement of changes in net assets and
financial highlights.
(Ernst & Young LLP Signature logo)
New York, New York
January 5, 1996
(Dreyfus lion "d" logo)
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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 928SA9511
(Dreyfus Logo)
California
Tax Exempt
Bond Fund, Inc.
Semi-Annual
Report
November 30, 1995
