---------------------------------------
Annual Report September 30, 1998
---------------------------------------
OPPENHEIMER
NEW YORK
MUNICIPAL FUND
[GRAPHIC OMITTED]
[OPPENHEIMER LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Manager
9 Fund Performance
- ---------------------------------------
13 Financial
Statements
35 Independent
Auditors' Report
- ---------------------------------------
36 Federal
Income Tax
Information
37 Officers and
Trustees
40 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o New York municipal bonds came to represent an increasingly attractive value
compared to Treasuries.
o We focused on vital state appropriation bonds, and on high-quality bonds in
the housing sector.
o We sold many of the Fund's Puerto Rico bonds, which we believed were trading
at relatively high prices, and generally avoided utilities, which continue to be
impacted by deregulation.
Avg Annual Total Returns
For the 1-Year Period
Ended 9/30/98
Class A
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------------------
8.36% 3.22%
- ---------------------------------------
Class B
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------------------
7.62% 2.62%
- ---------------------------------------
Class C
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------------------
7.54% 6.54%
- ---------------------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
short-term changes. For updates on the Fund's performance, please contact your
financial advisor, call us at 1-800-525-7048 or visit our website,
www.oppenheimerfunds.com.
1. Includes changes in net asset value per share without deducting any sales
charges.
2. Class A return includes the current maximum initial sales charge of 4.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the contingent deferred sales charge of 1%. Class B and
C shares are subject to a 0.75% asset-based sales charge. An explanation of the
different performance calculations is in the Fund's prospectus.
2 Oppenheimer New York Municipal Fund
<PAGE>
[PHOTO OMITTED]
Bridget A. Macaskill
President
Oppenheimer New York
Municipal Fund
Dear shareholder,
- --------------------------------------------------------------------------------
The performance of the financial markets over the past several months could be
viewed as "A Tale of Two Markets." Until mid-July, the excitement surrounding
the stock market's continued ascent to new record highs overshadowed the
favorable economic environment that existed for bonds: low inflation and
declining interest rates. However, since late summer, amid heightened global
concern, stocks declined sharply. Yet, despite continued economic concerns
worldwide, the bond market appeared ready to benefit.
Why have the stock and bond markets responded differently? The financial
crises in Asia and Russia have weakened the earnings of some large U.S.
corporations and have contributed to a slowdown in U.S. economic growth.
Although this slowing economic growth has negatively impacted stocks, it created
a positive environment for bonds. That's because slowing economic growth
generally means fewer inflationary pressures and, as we've recently seen,
interest rates also tend to decline.
What should you do during this period of relative uncertainty? If you have
well-defined, long-term financial goals and an investment strategy designed to
achieve them, we encourage you to stay the course. However, if you feel your
financial plan is out-of-date or incomplete, now is the time to make
improvements. The best way to cope with short-term volatility is to adhere to a
long-term plan that contains proven strategies, such as diversification among
various financial markets, geographic regions, investment styles and individual
securities. A long-term plan will give you the focus and perspective you need to
put short-term volatility in its proper context.
As longstanding advocates of financial planning, we have been encouraged by
our shareholders' rational responses to the latest market events. Many of you
tell us that you have a long-term strategy in place, which includes diversifying
your investment portfolio among a number of different asset classes in
accordance with your tolerance for risk. At OppenheimerFunds, our portfolio
management teams include seasoned professionals who have encountered extreme
market volatility in the past, giving them the per spective required to address
risks and take advantage of opportunities in turbulent markets. In our view,
having a well-defined set of financial goals, a disciplined long-term strategy
and the help of experienced investment professionals are all fundamental parts
of The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
October 21, 1998
3 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
"We sought to boost returns and reduce risks by actively managing the
portfolio's average duration."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How did the Fund perform during the last 12 months?
Oppenheimer New York Municipal Fund performed well during the fiscal year ended
September 30, 1998. Although our returns lagged those of Treasury bonds, we
consistently provided investors with attractive tax-advantaged returns
throughout the 12-month period.
What events had the greatest impact on the New York tax-exempt market?
The overall bond market, including New York municipal bonds, traded within a
very tight range throughout the period. Prices and yields generally did not rise
or fall sharply, which limited the Fund's price appreciation potential, but
enabled us to provide investors with a steady stream of tax-free income. During
the first six months, two counterbalancing economic trends were primarily
responsible for these conditions. On the one hand, investors expected the
turmoil in Asian markets to slow the U.S. economy and keep inflation in check,
which is generally seen as positive for bonds. On the other hand, evidence
continued to mount throughout the period that the domestic economy remained
strong, raising the possibility of renewed inflation.
During the second half of the period, corporate earnings and other
economic data clearly showed that the Asian crisis was negatively affecting
global profits. However, despite the increasing likelihood of slowing growth and
lower interest rates, most bonds failed to rally substantially. The one
exception was U.S. Treasury
4 Oppenheimer New York Municipal Fund
<PAGE>
[PHOTO OMITTED]
Portfolio Management
Team (l to r)
Jerry Webman
Robert Patterson (Portfolio
Manager)
securities, which benefited from investors' desires for the most conservative,
highest-quality securities in the face of global uncertainty. New York bonds
showed some modest, steady gains. Prices in the sector were limited by very high
rates of issuance, which created an oversupply of tax-exempt municipal
instruments. As a result, by the end of the period municipal bonds were
available at bargain prices relative to Treasuries.
How did you manage the Fund in this environment?
With high-quality New York municipal bonds available at the cheapest valuations
relative to Treasuries that we have seen in years, we chose to keep the
portfolio almost fully invested. As always, we exercised strong risk management
and intensive analysis to help identify securities offering above-average return
with below-average risks.
Although the local economy remained strong throughout the period, we
guarded against the possibility of economic weakness by focusing on quality.
Accordingly, we invested primarily in larger municipalities and economically
strong sectors of vital interest to the city and state. We also sought out sound
issues available at attractive prices whenever possible, subjecting potential
candidates to thorough credit analysis.
5 Oppenheimer New York Municipal Fund
<PAGE>
Avg Annual Total Returns
For the Periods Ended 9/30/98(1)
Class A
1 year 5 year 10 year
- ---------------------------------------
3.22% 4.39% 7.17%
- ---------------------------------------
Class B
Since
1 year 5 year Inception
- ---------------------------------------
2.62% 4.30% 5.13%
- ---------------------------------------
Class C
Since
1 year 5 year Inception
- ---------------------------------------
6.54% N/A 7.21%
- ---------------------------------------
An interview with your Fund's manager
- --------------------------------------------------------------------------------
In addition to the careful selection of investment sectors and individual
issues, we sought to boost returns and reduce risks by actively managing the
portfolio's average duration. Duration is a measure of a bond's sensitivity to
changes in interest rates. The longer a portfolio's average duration, the better
it is likely to perform in an environment of falling interest rates. At the
beginning of the period, we expected interest rates to decline because of the
impact of Asia on global growth. Therefore, we established a position that was
mildly longer than our benchmarks. However, after the first of the year,
prospects dimmed for immediate interest rate reductions because the U.S. economy
remained robust. Accordingly, we shifted to a more neutral position, which we
maintained throughout the remainder of the period.
What sectors did you find attractive, and which did you avoid?
From September 1997 through March 1998, we invested in several undervalued
issues, including state appropriation bonds issued by the city and state
universities and transportation authorities. We found new opportunities to
invest in the state's hospital system through state-supported bonds, and added
to our position in New York City bonds because of the city's strengthening
financial position. We also identified investment opportunities in Puerto Rico
bonds, which broadened the Fund's diversification while providing shareholders
with income exempt from New York state and local taxes.
Beginning in April 1998, we sold many of our hos pital bonds and Puerto
Rico bonds, which we believed were trading at relatively high prices. In the
absence of new, undervalued opportunities that met our strict investment
criteria, we focused on high-quality securities in the housing sector. These
included highly rated state mortgage
6 Oppenheimer New York Municipal Fund
<PAGE>
Standardized Yields(2)
For the 30 Days Ended 9/30/98
Class A 4.06%
- ---------------------------------------
Class B 3.50
- ---------------------------------------
Class C 3.50
- ---------------------------------------
agency bonds, as well as bonds used to finance adult living facilities that
combine both nursing and residential services. Both of these investment areas
are favorably affected by New York State's changing demographic picture and are
increasingly supported by the state. We also participated in a major, successful
issuance by the Long Island Power Authority (LIPA).
On the other hand, although we believe utilities hold promise for the
future, we avoided utility bonds other than the unique LIPA issuance because the
sector continues to be impacted by deregulation. While new competition may prove
beneficial to consumers, we believe it is too early to know which companies are
likely to succeed in this rapidly evolving competitive environment.
What is your outlook for the future?
With New York municipal bond yields unusually close to those of 30-year
Treasuries, we believe that tax-free municipal instruments offer investors an
uncommonly attractive opportunity. When Treasury yields stabilize or begin to
rise, we believe municipal yields are likely to return to their comparative
historical norms, providing the potential for relative price appreciation.
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
4.75%. Class A shares were first publicly offered on 8/16/84. The Fund's maximum
sales charge for Class A shares was lower prior to 1/31/86, so actual
performance may have been higher. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year), 2% (5-year) and 1% (since
inception on 3/1/93). Class C returns for the one-year result include the
contingent deferred sales charge of 1%. Class C shares have an inception date of
8/29/95. Class B and C shares are subject to an annual 0.75% asset-based sales
charge. An explanation of the different performance calculations is in the
Fund's prospectus.
2. Standardized yield is based on net investment income for the 30-day period
ended September 30, 1998. Falling share prices will tend to artificially raise
yields.
7 Oppenheimer New York Municipal Fund
<PAGE>
[The following table was represented by a pie chart in the printed materials.]
Credit Allocation(3)
o AAA 38.2%
o AA 14.9
o A 22.3
o BBB 12.1
o BB 12.5
In our opinion, New York continues to provide a wide range of attractive
investments in the municipal bond area. The region's steady recovery continues,
as evidenced by credit-rating upgrades and budget surpluses. We are cautiously
optimistic about the region's future prospects. Our strategy of conservative
risk management and our relentless search for undervalued issues helps investors
to minimize risk while enjoying the benefits of income free from New York State,
City and federal taxes. We are keeping a careful eye on the future so that
Oppenheimer New York Municipal Fund remains part of The Right Way to Invest.
Top 5 Sectors(3)
- --------------------------------------------------------------------------------
Higher Education 12.3%
- --------------------------------------------------------------------------------
Electric Utilities 12.0
- --------------------------------------------------------------------------------
General Obligation 11.8
- --------------------------------------------------------------------------------
Highways 10.9
- --------------------------------------------------------------------------------
Lease Rental 8.1
- --------------------------------------------------------------------------------
3. Portfolio data is subject to change. Percentages are as of September 30,
1998, and are dollar-weighted based on invested assets. Securities rated by any
rating organization are included in the equivalent Standard & Poor's rating
category. Average credit quality and allocation includes securities rated by
national rating organizations as well as unrated securities (currently 8.68% of
total investments) which have ratings assigned by the Manager in categories
equivalent to those of rating organizations.
8 Oppenheimer New York Municipal Fund
<PAGE>
[GRAPHIC OMITTED]
Fund performance
- --------------------------------------------------------------------------------
How Has the Fund Performed? Below is a discussion by the Manager of the Fund's
performance during its fiscal year ended September 30, 1998, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
o Management's Discussion of Performance. During the past fiscal year that
ended September 30, 1998, Oppenheimer New York Municipal Fund performed
generally well. Prices were supported by low rates of inflation, but were
negatively affected by a large supply of new issues in the New York municipal
bond market. Additionally, the municipal bond market as a whole did not perform
as well as the U.S. Treasury bond market, which global investors sought as a
refuge from the Asian economic crisis. The Fund maintained performance by
investing in undervalued credits when they met our strict criteria, and by
otherwise remaining invested in high quality credits throughout the period. The
Fund's policy of seeking to maintain a steady dividend for its Class A shares
did not materially affect portfolio management strategies during its last fiscal
year. The Fund's portfolio holdings, allocations and our management strategies
are subject to change.
o Comparing the Fund's Performance to the Market. The graphs that follow
show the performance of a hypothetical $10,000 investment in each class of
shares of the Fund held until September 30, 1998. In the case of Class A shares,
performance is measured over a 10-year period. In the case of Class B shares,
performance is measured from inception of the Class on March 1, 1993. In the
case of Class C shares, performance is measured from inception of the Class on
August 29, 1995. The Fund's performance reflects the deduction of the 4.75%
maximum initial sales charge on Class A shares, and the applicable contingent
deferred sales charge for Class B and Class C shares. The graphs assume that all
dividends and capital gains distributions were reinvested in additional shares.
The Fund's performance is compared to the performance of that of the
Lehman Brothers Municipal Bond Index, an unmanaged index of a broad range of
investment-grade municipal bonds that is widely regarded as a measure of the
performance of the general municipal bond market.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities in
the index.
9 Oppenheimer New York Municipal Fund
<PAGE>
Fund performance
- --------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New York Municipal Fund (Class A) and Lehman Brothers Municipal Bond
Index
[The following table was represented by a line graph in the printed materials.]
Oppenheimer Lehman Brothers
New York Municipal
Municipal Fund Bond
Class A Index
9.30.88 9525 10000
9.30.89 10234 10868
9.30.90 10741 11607
9.30.91 12131 13137
9.30.92 13404 14511
9.30.93 15357 16359
9.30.94 14508 15960
9.30.95 15898 17747
9.30.96 16955 18819
9.30.97 18444 20514
9.30.98 19987 22301
Average Annual Total Return of Class AShares of the Fund at 9/30/98(1)
1 Year 3.22% 5 Year 4.39% 10 Year 7.17%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New York Municipal Fund (Class B) and Lehman Brothers Municipal Bond
Index
[The following table was represented by a line graph in the printed materials.]
Oppenheimer Lehman Brothers
New York Municipal
Municipal Fund Bond
Class B Index
3.1.93 10000 10000
9.30.93 10624 10563
9.30.94 9967 10305
9.30.95 10839 11459
9.30.96 11464 12151
9.30.97 12378 13246
9.30.98 13221 14400
Average Annual Total Return of Class BShares of the Fund at 9/30/98(2)
1 Year 2.62% 5 Year 4.30% Life 5.13%
10 Oppenheimer New York Municipal Fund
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New York Municipal Fund (Class C) and Lehman Brothers Municipal Bond
Index
[The following table was represented by a line graph in the printed materials.]
Oppenheimer Lehman Brothers
New York Municipal
Municipal Fund Bond
Class C Index
8.29.95 10000 10000
9.30.95 10110 10063
9.30.96 10680 10671
9.30.97 11528 11631
9.30.98 12398 12645
Average Annual Total Return of Class CShares of the Fund at 9/30/98(3)
1 Year 6.54% Life 7.21%
The returns and the ending account values in the graphs show change in share
value and include reinvestment of all dividends and capital gains distributions.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 2/29/93 for Class B and 8/31/95 for Class C.
1. The average annual total returns are shown net of the applicable 4.75%
maximum initial sales charge.
2. Class B shares of the Fund were first publicly offered on 3/1/93. The average
annual total returns are shown net of the applicable 5%, 2% and 1% contingent
deferred sales charges, respectively, for the one- and five-year period and the
life of the class. The ending account value in the graph is net of the
applicable 1% contingent deferred sales charge.
3. Class C shares of the Fund were first publicly offered on 8/29/95. The
average annual total returns are shown net of the applicable 1% contingent
deferred sales charge for the one-year period. Past performance is not
predictive of future performance. Graphs are not drawn to the same scale.
11 Oppenheimer New York Municipal Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
12 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
Municipal Bonds and Notes--98.8%
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York--83.9%
Allegany Cnty., NY IDA RB, Houghton College
Civic Facility, 5.25%, 1/15/18 NR/BBB $ 1,500,000 $ 1,522,230
- -----------------------------------------------------------------------------------------------------------------------------------
Allegany Cnty., NY IDA RB, Houghton College
Civic Facility, 5.25%, 1/15/24 NR/BBB 500,000 506,550
- -----------------------------------------------------------------------------------------------------------------------------------
Battery Park City, NY RB, Series A, AMBAC
Insured, 5.50%, 11/1/16 Aaa/AAA 5,000,000 5,382,700
- -----------------------------------------------------------------------------------------------------------------------------------
Erie Cnty., NY IDA Life Care Community RB,
Episcopal Church Home, Series A, 6%, 2/1/28 NR/NR 6,700,000 6,913,529
- -----------------------------------------------------------------------------------------------------------------------------------
L.I., NY PAU Electric Systems RRB,
Series A, 5.25%, 12/1/26 Baa1/AAA/A- 11,500,000 11,776,575
- -----------------------------------------------------------------------------------------------------------------------------------
Monroe Cnty., NY IDA RB, DePaul Community
Facilities, Series A, 5.875%, 2/1/28 NR/NR 1,350,000 1,374,934
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Inverse Floater, 7.444%, 8/1/08(1) A3/A- 8,250,000 9,435,937
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Inverse Floater, 8.412%, 8/1/13(1) A3/A- 5,000,000 5,856,250
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Inverse Floater, 8.462%, 8/1/14(1) A3/A- 8,150,000 9,545,687
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Prerefunded, Series A, 7.75%, 3/15/03 Aaa/AAA/A- 140,000 150,296
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Prerefunded, Series A, 7.75%, 8/15/16 Aaa/AAA/A- 115,000 129,407
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Prerefunded, Series C, Subseries
C-1, 7.50%, 8/1/20 Aaa/BBB+/A- 10,000 11,478
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Prerefunded, Series F, 8.25%, 11/15/17 Aaa/A- 8,500,000 9,763,695
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Series B, 8.25%, 6/1/07 A3/A- 1,750,000 2,248,925
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Series B, FSA Insured, Inverse
Floater, 6.843%, 10/1/07(1) Aaa/AAA 7,500,000 8,126,475
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Series H, 6.125%, 8/1/25 A3/A-/A- 6,000,000 6,677,100
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Unrefunded Balance,
Series A, 7.75%, 3/15/03 A3/A-/A- 10,000 10,690
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Unrefunded Balance,
Series A, 7.75%, 8/15/16 A3/A-/A- 42,500 47,576
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GOB, Unrefunded Balance,
Subseries C-1, 7.50%, 8/1/20 Baa1/BBB+/A- 5,000 5,653
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GORB, Prerefunded, Series F,
7.625%, 2/1/14 Baa1/BBB+/A- 20,000 22,710
- -----------------------------------------------------------------------------------------------------------------------------------
NYC GORB, Unrefunded Balance,
Series F, 7.625%, 2/1/14 A3/A-/A- 5,000 5,602
</TABLE>
13 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York (continued)
NYC HDC MH RB, Glenn Gardens
Project, 6.50%, 1/15/18 NR/NR $ 2,837,916 $ 2,980,493
- -----------------------------------------------------------------------------------------------------------------------------------
NYC HDC MH RB, Keith Plaza Project,
6.50%, 2/15/18 NR/NR 1,875,437 1,969,735
- -----------------------------------------------------------------------------------------------------------------------------------
NYC HDC MH RB, Series A, 5.625%, 5/1/12 Aa2/AA 4,500,000 4,775,265
- -----------------------------------------------------------------------------------------------------------------------------------
NYC Health & Hospital Corp. RRB, AMBAC
Insured, Inverse Floater, 7.30%, 2/15/23(1) Aaa/AAA/AAA 8,300,000 9,057,375
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDA Civic Facility RB, Community
Resources Development, 7.50%, 8/1/26 NR/NR 3,500,000 3,776,640
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDA Civic Facility RB, USTA National
Tennis Center Project, FSA Insured,
6.375%, 11/15/14 Aaa/AAA 1,500,000 1,693,845
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDA RRB, Brooklyn Navy Yard Cogen
Partners, 5.75%, 10/1/36 Baa3/BBB-/BBB- 3,000,000 3,103,920
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDA RRB, Brooklyn Navy Yard Cogen
Partners, 6.20%, 10/1/22 Baa3/BBB-/BBB- 5,000,000 5,681,100
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDA SPF RB, Northwest Airlines, Inc.,
6%, 6/1/27 Ba2/BB 14,000,000 14,754,600
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDA SPF RB, United Air Lines, Inc.
Project, 5.65%, 10/1/32 Baa3/BB+ 6,585,000 6,767,009
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDAU Civil Facility RB, YMCA
Greater NY Project, 5.80%, 8/1/16 Baa3/NR/BBB 2,470,000 2,653,052
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDAU RB, Visy Paper, Inc. Project,
7.80%, 1/1/16 NR/NR 6,800,000 7,723,848
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDAU RB, Visy Paper, Inc. Project,
7.95%, 1/1/28 NR/NR 12,250,000 13,943,685
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDAU SPF RB, Terminal One Group Assn.
Project, 6%, 1/1/15 A3/A/A- 6,000,000 6,439,740
- -----------------------------------------------------------------------------------------------------------------------------------
NYC IDAU SPF RB, Terminal One Group Assn.
Project, 6.125%, 1/1/24 A3/A/A- 3,000,000 3,234,210
- -----------------------------------------------------------------------------------------------------------------------------------
NYC MWFAU WSS RB, Unrefunded Balance,
Series B, 6.375%, 6/15/22 Aaa/AAA/A 6,625,000 7,297,239
- -----------------------------------------------------------------------------------------------------------------------------------
NYC MWFAU WSS RRB, Unrefunded Balance,
Series A-1994, 7.10%, 6/15/12 A2/A- 275,000 300,883
- -----------------------------------------------------------------------------------------------------------------------------------
NYC MWFAU WSS RRB, Series C, FGIC Insured,
5%, 6/15/21 Aaa/AAA/AAA 10,000,000 10,026,000
</TABLE>
14 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York (continued)
NYC MWFAU WSS RRB, Unrefunded Balance,
6.75%, 6/15/17 A2/A- $ 2,480,000 $ 2,671,307
- -----------------------------------------------------------------------------------------------------------------------------------
NYC Niagara Falls SDI COP, High School
Facility, 5.375%, 6/15/28 Baa3/BBB- 6,500,000 6,641,180
- -----------------------------------------------------------------------------------------------------------------------------------
NYC Transitional FAU RB, Future Tax Second,
Series A, 5.125%, 8/15/21 Aa3/AA 5,000,000 5,037,050
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RB, Ithaca College, AMBAC Insured,
5.25%, 7/1/26 Aaa/AAA 5,750,000 5,933,195
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RB, Judicial Facilities Lease, Escrowed
to Maturity, MBIA Insured, 7.375%, 7/1/16 Aaa/AAA 2,300,000 2,942,574
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RB, Mental Health Facilities Project,
AMBAC Insured, 5.25%, 2/15/18 Aaa/AAA/AAA 9,400,000 9,691,588
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RB, Pooled Capital Program, Partially
Prerefunded, FGIC Insured, 7.80%, 12/1/05 Aaa/AAA/AAA 5,310,000 5,448,219
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RB, Rosalind & Joseph Nursing Home,
AMBAC Insured, 5.70%, 2/1/37 Aaa/AAA 2,000,000 2,137,600
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, CUS, Second Series A,
5.75%, 7/1/18 Baa1/BBB+ 6,750,000 7,502,220
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, CUS, Series B, 6%, 7/1/14 Baa1/BBB+ 10,875,000 12,467,861
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, Episcopal Health Services, Inc.,
5.85%, 8/1/13 NR/AAA 500,000 539,000
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, Fordham University, FGIC Insured,
5.75%, 7/1/15 Aaa/AAA/AAA 9,100,000 9,828,000
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, Second Hospital-North General
Hospital, Series G, 5.30%, 2/15/19 Baa1/BBB+/A 5,000,000 5,100,350
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, St. Thomas Aquinas, 5.25%, 7/1/28 NR/AA 1,500,000 1,525,560
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, St. Joseph's Hospital Health
Center, MBIA Insured, 5.25%, 7/1/18 Aaa/AAA 5,035,000 5,195,415
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, St. Vincent's Hospital,
7.375%, 8/1/11 Aa2/AAA 150,000 167,082
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, SUEFS, Series A, 5.25%, 5/15/15 A3/A-/A 23,090,000 24,666,816
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, SUEFS, Series A, 5.25%, 5/15/21 A3/A-/A 5,010,000 5,315,209
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, SUEFS, Series B, 7%, 5/15/16 A3/A-/A 9,020,000 9,608,014
- -----------------------------------------------------------------------------------------------------------------------------------
NYS DA SPO Bonds, CUS, Series E, FSA Insured,
5.75%, 7/1/11 Aaa/AAA 5,955,000 6,792,273
</TABLE>
15 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York (continued)
NYS EFCPC RB, State Water Revolving Fund,
Series A, 6.60%, 9/15/12 Aaa/AAA/AAA $ 250,000 $ 278,480
- -----------------------------------------------------------------------------------------------------------------------------------
NYS EFCPC RB, State Water Revolving Fund,
Series C, 7.20%, 3/15/11 Aa2/A+/AA 350,000 373,628
- -----------------------------------------------------------------------------------------------------------------------------------
NYS ERDAUEF RB, Consolidated Edison Co.,
Series A, 7.50%, 1/1/26 A1/A+ 280,000 294,375
- -----------------------------------------------------------------------------------------------------------------------------------
NYS ERDAUEF RB, L.I. Lighting Co.,
Series A, 7.15%, 12/1/20 Ba1/BB+ 7,500,000 8,248,275
- -----------------------------------------------------------------------------------------------------------------------------------
NYS ERDAUEF RB, L.I. Lighting Co.,
Series C, 6.90%, 8/1/22 Ba1/BB+ 9,200,000 10,136,560
- -----------------------------------------------------------------------------------------------------------------------------------
NYS ERDAUGF RB, Brooklyn Union Gas Co.,
Series B, Inverse Floater, 10.051%, 7/1/26(1) A1/A/A 6,000,000 8,115,000
- -----------------------------------------------------------------------------------------------------------------------------------
NYS ERDAUGF RB, Brooklyn Union Gas Co.,
Series D, MBIA Insured, Inverse Floater,
7.488%, 7/8/26(1) Aaa/AAA/A 3,000,000 3,232,500
- -----------------------------------------------------------------------------------------------------------------------------------
NYS ERDAUPC RB, NYS Electric & Gas Project,
Series A, MBIA Insured, 6.15%, 7/1/26 Aaa/AAA 4,000,000 4,426,000
- -----------------------------------------------------------------------------------------------------------------------------------
NYS GOB, 6.875%, 3/1/12 A2/A 500,000 560,040
- -----------------------------------------------------------------------------------------------------------------------------------
NYS GOB, 7%, 2/1/09 A2/A 300,000 336,444
- -----------------------------------------------------------------------------------------------------------------------------------
NYS GORB, 7.50%, 11/15/00 A2/A 500,000 538,775
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFA MH RB, Second Mtg. Program-A,
7.05%, 8/15/24 Aa2/NR 350,000 378,553
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFA MH RB, Second Mtg. Program-C,
6.95%, 8/15/24 Aa1/NR 225,000 239,305
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFA RB, Prerefunded, 8%, 11/1/08 Aaa/BBB+ 2,690,000 2,977,830
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFA RB, Unrefunded Balance, 8%, 11/1/08 Baa/BBB+ 550,000 599,115
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFA RRB, Housing Mtg., Series A,
6.10%, 11/1/15 Aaa/AAA 12,170,000 13,351,585
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFA RRB, State University Construction,
Escrowed to Maturity, Series A, 7.90%, 11/1/06 Aaa/AAA 1,750,000 2,094,225
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFA RRB, Unrefunded Balance,
7.90%, 11/1/99 Baa1/BBB+ 1,440,000 1,473,466
</TABLE>
16 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York (continued)
NYS HFASC Obligation RB, Series A,
6%, 3/15/26 Baa1/BBB+ $10,000,000 $10,912,500
- -----------------------------------------------------------------------------------------------------------------------------------
NYS HFASC Obligation RB, Series D,
5.375%, 3/15/23 Baa1/BBB+ 9,000,000 9,204,030
- -----------------------------------------------------------------------------------------------------------------------------------
NYS LGAC RB, Prerefunded, Series C,
7%, 4/1/21 Aaa/AAA/AAA 9,455,000 10,394,354
- -----------------------------------------------------------------------------------------------------------------------------------
NYS LGAC RRB, Series B, 5.50%, 4/1/21 A3/A+/A+ 3,000,000 3,116,970
- -----------------------------------------------------------------------------------------------------------------------------------
NYS LGAC RRB, Series E, 5%, 4/1/21 A3/A+/A+ 500,000 514,015
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MAG RB, Homeowner Mtg., Series 1,
7.95%, 10/1/21 Aa2/NR 720,000 720,094
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MAG RB, Homeowner Mtg., Series 71,
5.40%, 4/1/29 Aa2/NR 26,965,000 27,503,761
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MAG RB, Homeowner Mtg., Series UU,
7.75%, 10/1/23 Aa2/NR 1,990,000 2,103,291
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MAG RB, Homeowner Mtg., Series VV,
7.375%, 10/1/11 Aa2/NR 345,000 369,733
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MAG RB, Inverse Floater,
6.733%, 10/1/24(1) NR/NR 9,000,000 9,260,010
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MAG RB, Series 40-B, 6.40%, 10/1/12 Aa2/NR 500,000 543,040
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, Hospital & Nursing Home
Project, Series D, 6.45%, 2/15/09 Aa2/AAA 335,000 372,255
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, Long-Term Health Care,
Series C, FSA Insured, 6.40%, 11/1/14 Aaa/AAA/AAA 2,800,000 3,061,520
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, MHESF, Prerefunded,
Series B, 7.875%, 8/15/20 Aaa/AAA 10,190,000 11,171,399
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, MHESF, Unrefunded Balance,
Series A, FGIC Insured, 6.375%, 8/15/17 Aaa/AAA/AAA 5,000,000 5,459,450
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, St. Francis Hospital, Project A,
FGIC Insured, 7.625%, 11/1/21 Aaa/AAA/AAA 2,690,000 2,752,838
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, St. Luke's Hospital Center Mtg.,
Prerefunded, Series B, 7.45%, 2/15/29 Aaa/AAA 7,500,000 8,033,400
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, Unrefunded Balance,
7.70%, 2/15/18 NR/A- 355,000 363,200
</TABLE>
17 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York (continued)
NYS MCFFA RRB, MHESF, Unrefunded Balance,
Series A, 8.875%, 8/15/07 A3/BBB+ $ 2,785,000 $ 2,824,603
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RRB, North Shore University
Hospital, MBIA Insured, 7.20%, 11/1/20 Aaa/AAA 250,000 272,818
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MTAU Dedicated Tax Fund RB, Series A,
FGIC Insured, 5%, 4/1/23 Aaa/AAA/AAA 9,250,000 9,286,168
- -----------------------------------------------------------------------------------------------------------------------------------
NYS MTAU RB, Transportation Facilities Service
Contracts, Series 3, 7.375%, 7/1/08 Baa1/BBB+ 250,000 299,450
- -----------------------------------------------------------------------------------------------------------------------------------
NYS TBTAU GP RB, Series X, 6%, 1/1/14 Aa3/A+ 14,510,000 15,342,729
- -----------------------------------------------------------------------------------------------------------------------------------
NYS TBTAU GP RRB, Series A, 5%, 1/1/15 Aa3/A+ 7,500,000 7,583,850
- -----------------------------------------------------------------------------------------------------------------------------------
NYS TBTAU GP RRB, Series A, 5.125%, 1/1/22 Aa3/A+ 5,300,000 5,345,845
- -----------------------------------------------------------------------------------------------------------------------------------
NYS TBTAU GP RRB, Series B, 5%, 1/1/20 Aa3/A+ 500,000 516,235
- -----------------------------------------------------------------------------------------------------------------------------------
NYS TBTAU GP RRB, Series Y, 5.50%, 1/1/17 Aa3/A+ 15,000,000 16,604,850
- -----------------------------------------------------------------------------------------------------------------------------------
NYS TBTAU SPO RRB, Series A, MBIA Insured,
6.625%, 1/1/17 Aaa/AAA 500,000 538,295
- -----------------------------------------------------------------------------------------------------------------------------------
NYS Thruway Authority General RB, Series A,
5.75%, 1/1/19 Aa3/AA- 10,000,000 10,814,200
- -----------------------------------------------------------------------------------------------------------------------------------
NYS UDC RB, Series A, MBIA Insured,
5.50%, 4/1/16 Aaa/AAA/AAA 7,500,000 8,035,800
- -----------------------------------------------------------------------------------------------------------------------------------
NYS United Nations Development Corp. RRB,
Sr. Lien, Series B, 5.60%, 7/1/26 A2/NR/A 1,500,000 1,506,930
- -----------------------------------------------------------------------------------------------------------------------------------
NYS United Nations Development Corp. RRB,
Sub. Lien, Series C, 5.60%, 7/1/26 A3/NR/A- 3,000,000 3,013,860
- -----------------------------------------------------------------------------------------------------------------------------------
Onondaga Cnty., NY RR Agency RB, RR
Facilities Project, 7%, 5/1/15 Baa1/NR/A- 15,600,000 16,912,272
- -----------------------------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB, 69th Series,
7.125%, 6/1/25 A1/AA-/AA- 2,155,000 2,290,356
- -----------------------------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RRB, 78th Series,
6.50%, 4/15/11 A1/AA-/AA- 250,000 272,660
- -----------------------------------------------------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air
Terminal Project, Series 6, 5.75%, 12/1/22 Aaa/AAA 11,150,000 12,061,736
- -----------------------------------------------------------------------------------------------------------------------------------
PAUNYNJ SPO RRB, KIAC-4 Project,
Fifth Installment, 6.75%, 10/1/19 NR/NR 12,600,000 13,988,520
-------------
605,924,344
</TABLE>
18 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Possessions--14.9%
PR CMWLTH Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA $ 500,000 $ 683,665
- -----------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH GOB, 5%, 7/1/27 Baa1/A 8,000,000 8,002,880
- -----------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH GOB, 5.375%, 7/1/25 Baa1/A 5,650,000 5,869,277
- -----------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH GORB, FSA Insured, Inverse
Floater, 7.832%, 7/1/20(1) Aaa/AAA/AAA 11,500,000 13,181,875
- -----------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH GORB, MBIA Insured,
5.25%, 7/1/18 Aaa/AAA 3,550,000 3,660,547
- -----------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Prerefunded,
Series S, 6.50%, 7/1/22 NR/AAA 10,000,000 11,138,100
- -----------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series W, Inverse
Floater, 6.217%, 7/1/10(1) Baa1/A 9,000,000 10,147,500
- -----------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU RRB,
Unrefunded Balance, Series A, 7.75%, 7/1/08 Baa1/BBB+ 1,355,000 1,386,409
- -----------------------------------------------------------------------------------------------------------------------------------
PR EPAU CAP RRB, Series N, MBIA Insured,
Zero Coupon, 5.69%, 7/1/17(2) Aaa/AAA 24,000,000 10,061,280
- -----------------------------------------------------------------------------------------------------------------------------------
PR EPAU RB, Series AA, MBIA Insured,
5.25%, 7/1/16 Aaa/AAA 5,000,000 5,305,600
- -----------------------------------------------------------------------------------------------------------------------------------
PR EPAU RB, Series AA, MBIA Insured,
5.25%, 7/1/17 Aaa/AAA 5,000,000 5,279,400
- -----------------------------------------------------------------------------------------------------------------------------------
PR EPAU RB, Series DD, 5%, 7/1/28 Baa1/BBB+ 7,240,000 7,249,050
- -----------------------------------------------------------------------------------------------------------------------------------
PR Housing Bank & Finance Agency SFM RB,
Homeownership-Fourth Portfolio, Escrowed
to Maturity, 8.50%, 12/1/18 Aaa/NR 1,580,000 1,905,148
- -----------------------------------------------------------------------------------------------------------------------------------
PR Industrial, Medical & Environmental PC
Facilities FAU RB, American Airlines, Inc.
Project, 6.45%, 12/1/25 Baa1/BB+ 850,000 945,770
- -----------------------------------------------------------------------------------------------------------------------------------
PR Industrial, Medical & Environmental PC
Facilities FAU RB, Warner Lambert Co. Project,
7.60%, 5/1/14 A1/NR 3,000,000 3,154,590
- -----------------------------------------------------------------------------------------------------------------------------------
PR POAU RB, American Airlines SPF Project,
Series A, 6.25%, 6/1/26 Baa2/BBB- 8,000,000 8,731,360
- -----------------------------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 7.168%, 1/16/15(1) Aaa/AAA 10,000,000 10,912,500
------------
107,614,951
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $650,994,691) 98.8% 713,539,295
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.2 8,832,253
----------- ------------
Net Assets 100.0% $722,371,548
=========== ============
</TABLE>
19 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
To simplify the listings of securities, abbreviations are used per the table
below:
CAP --Capital Appreciation
CMWLTH --Commonwealth
COP --Certificates of Participation
CUS --City University System
DA --Dormitory Authority
EFCPC --Environmental Facilities Corp.
Pollution Control
EPAU --Electric Power Authority
ERDAUEF --Energy Research & Development
Authority Electric Facilities
ERDAUGF --Energy Research & Development
Authority Gas Facilities
ERDAUPC --Energy Research & Development
Authority Pollution Control
FAU --Finance Authority
GP --General Purpose
GOB --General Obligation Bonds
GORB --General Obligation Refunding Bonds
HDC --Housing Development Corp.
HFA --Housing Finance Agency
HFASC --Housing Finance Agency
Service Contract
HTAU --Highway & Transportation Authority
IDA --Industrial Development Agency
IDAU --Industrial Development Authority
LGAC --Local Government Assistance Corp.
L.I. --Long Island
MAG --Mtg. Agency
MCFFA --Medical Care Facilities Finance Agency
MH --Multifamily Housing
MHESF --Mental Health Services Facilities
MTAU --Metropolitan Transportation Authority
MWFAU --Municipal Water Finance Authority
NYC --New York City
NYS --New York State
PAUNYNJ --Port Authority of New York & New Jersey
PAU --Power Authority
PC --Pollution Control
POAU --Port Authority
RB --Revenue Bonds
RR --Resource Recovery
RRB --Revenue Refunding Bonds
SDI --School District
SFM --Single Family Mtg.
SPF --Special Facilities
SPO --Special Obligations
SUEFS --State University Educational
Facilities System
TBTAU --Triborough Bridge & Tunnel Authority
UDC --Urban Development Corp.
WSS --Water & Sewer System
1. Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce less
current income. Their price may be more volatile than the price of a comparable
fixed-rate security. Inverse floaters amount to $96,871,109 or 13.41% of the
Fund's net assets as of September 30, 1998.
2. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
20 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
As of September 30, 1998, securities subject to the alternative minimum tax
amount to $179,652,487 or 24.87% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total investments at
value, is as follows:
Industry Market Value Percent
- --------------------------------------------------------------------------------
Higher Education $ 87,762,151 12.3%
- --------------------------------------------------------------------------------
Electric Utilities 85,550,655 12.0
- --------------------------------------------------------------------------------
General Obligation 84,187,319 11.8
- --------------------------------------------------------------------------------
Highways 78,031,604 10.9
- --------------------------------------------------------------------------------
Lease Rental 57,580,005 8.1
- --------------------------------------------------------------------------------
Multifamily Housing 43,811,467 6.2
- --------------------------------------------------------------------------------
Single Family Housing 42,405,076 5.9
- --------------------------------------------------------------------------------
Hospital/Healthcare 39,615,493 5.6
- --------------------------------------------------------------------------------
Marine/Aviation Facilities 35,819,091 5.0
- --------------------------------------------------------------------------------
Manufacturing, Non-Durable Goods 21,667,533 3.0
- --------------------------------------------------------------------------------
Special Assessment 21,212,848 3.0
- --------------------------------------------------------------------------------
Water Utilities 20,979,094 2.9
- --------------------------------------------------------------------------------
Corporate Backed 19,678,349 2.8
- --------------------------------------------------------------------------------
Resource Recovery 16,912,272 2.4
- --------------------------------------------------------------------------------
Sales Tax 12,294,778 1.7
- --------------------------------------------------------------------------------
Gas Utilities 11,347,500 1.6
- --------------------------------------------------------------------------------
Not-for-Profit Organization 11,137,397 1.6
- --------------------------------------------------------------------------------
Telephone Utilities 10,912,500 1.5
- --------------------------------------------------------------------------------
Adult Living Facilities 8,827,464 1.2
- --------------------------------------------------------------------------------
Pollution Control 3,154,590 0.4
- --------------------------------------------------------------------------------
Sewer Utilities 652,109 0.1
------------ -----
Total $713,539,295 100.0%
============ =====
See accompanying Notes to Financial Statements.
21 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
=====================================================================================
Assets
Investments, at value (cost $650,994,691)--see accompanying statement $713,539,295
- -------------------------------------------------------------------------------------
Cash 127,185
- -------------------------------------------------------------------------------------
Receivables:
Interest 11,249,509
Shares of beneficial interest sold 509,941
- -------------------------------------------------------------------------------------
Other 10,454
------------
Total assets 725,436,384
=====================================================================================
Liabilities
Payables and other liabilities:
Dividends 1,793,435
Distribution and service plan fees 434,281
Shares of beneficial interest redeemed 361,494
Trustees' fees--Note 1 265,969
Transfer and shareholder servicing agent fees 60,759
Other 148,898
------------
Total liabilities 3,064,836
=====================================================================================
Net Assets $722,371,548
============
=====================================================================================
Composition of Net Assets
Paid-in capital $666,806,903
- -------------------------------------------------------------------------------------
Overdistributed net investment income (1,648,412)
- -------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (5,331,547)
- -------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 62,544,604
------------
Net assets $722,371,548
============
</TABLE>
22 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $609,182,754 and 46,244,395 shares of beneficial interest
outstanding) $13.17
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $13.83
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $107,020,589 and 8,122,578 shares of beneficial interest
outstanding) $13.18
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $6,168,205 and 468,228 shares of beneficial interest
outstanding) $13.17
See accompanying Notes to Financial Statements.
23 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Year Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
===================================================================================
Investment Income
Interest $42,732,640
===================================================================================
Expenses
Management fees--Note 4 3,799,175
- -----------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,452,339
Class B 1,061,281
Class C 54,159
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 453,159
- -----------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 117,877
- -----------------------------------------------------------------------------------
Shareholder reports 117,635
- -----------------------------------------------------------------------------------
Custodian fees and expenses 76,538
- -----------------------------------------------------------------------------------
Legal, auditing and other professional fees 40,846
- -----------------------------------------------------------------------------------
Other 23,770
-----------
Total expenses 7,196,779
===================================================================================
Net Investment Income 35,535,861
===================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 4,974,143
Closing of futures contracts (2,297,337)
-----------
Net realized gain 2,676,806
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 19,959,087
-----------
Net realized and unrealized gain 22,635,893
===================================================================================
Net Increase in Net Assets Resulting from Operations $58,171,754
===========
</TABLE>
See accompanying Notes to Financial Statements.
24 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended September 30,
1998 1997
================================================================================================
<S> <C> <C>
Operations
Net investment income $ 35,535,861 $ 40,870,758
- ------------------------------------------------------------------------------------------------
Net realized gain (loss) 2,676,806 (3,110,188)
- ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 19,959,087 25,374,028
------------ ------------
Net increase in net assets resulting from operations 58,171,754 63,134,598
================================================================================================
Dividends to Shareholders
Dividends from net investment income:
Class A (31,874,990) (35,297,579)
Class B (4,618,825) (4,855,021)
Class C (234,931) (175,214)
================================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting
from beneficial interest transactions--Note 2:
Class A (43,774,682) (52,009,162)
Class B (2,555,074) 2,021,008
Class C 1,261,316 2,612,419
================================================================================================
Net Assets
Total decrease (23,625,432) (24,568,951)
- ------------------------------------------------------------------------------------------------
Beginning of period 745,996,980 770,565,931
------------ ------------
End of period [including undistributed (overdistributed) net
investment income of $(1,648,412) and $1,395,429, respectively] $722,371,548 $745,996,980
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
25 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
------------------------------------
Year Ended September 30,
1998 1997 1996
=========================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $12.79 $12.41 $12.29
- -----------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .64 .69 .68
Net realized and unrealized gain (loss) .40 .37 .12
------ ------ ------
Total income (loss) from investment operations 1.04 1.06 .80
- -----------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.66) (.68) (.68)
Distributions from net realized gain -- -- --
Distributions in excess of net realized gain -- -- --
------ ------ ------
Total dividends and distributions to shareholders (.66) (.68) (.68)
- -----------------------------------------------------------------------------------------
Net asset value, end of period $13.17 $12.79 $12.41
====== ====== ======
=========================================================================================
Total Return, at Net Asset Value(2) 8.36% 8.78% 6.65%
=========================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $609,183 $634,789 $667,258
- -----------------------------------------------------------------------------------------
Average net assets (in thousands) $621,555 $652,048 $684,981
- -----------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.96% 5.49% 5.50%
Expenses 0.87% 0.86% 0.91%
- -----------------------------------------------------------------------------------------
Portfolio turnover rate(4) 24.7% 20.5% 21.2%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to September 30,
1995.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
26 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
---------------------- ------------------------------------
Year Ended September 30,
1995 1994 1998 1997 1996
=========================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.92 $13.50 $12.79 $12.41 $12.30
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .69 .74 .55 .59 .60
Net realized and unrealized gain (loss) .41 (1.46) .41 .38 .10
------ ------ ------ ------ ------
Total income (loss) from investment operations 1.10 (.72) .96 .97 .70
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.70) (.72) (.57) (.59) (.59)
Distributions from net realized gain (.03) (.03) -- -- --
Distributions in excess of net realized gain -- (.11) -- -- --
------ ------ ------ ------ ------
Total dividends and distributions to shareholders (.73) (.86) (.57) (.59) (.59)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.29 $11.92 $13.18 $12.79 $12.41
====== ====== ====== ====== ======
=========================================================================================================================
Total Return, at Net Asset Value(2) 9.58% (5.55)% 7.62% 7.97% 5.77%
=========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $673,050 $687,233 $107,021 $106,459 $101,302
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $659,465 $738,747 $106,130 $104,183 $98,488
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.76% 5.68% 4.21% 4.72% 4.73%
Expenses 0.90% 0.86% 1.63% 1.63% 1.68%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 15.2% 9.4% 24.7% 20.5% 21.2%
</TABLE>
1995 1994
==============================================================================
Per Share Operating Data
Net asset value, beginning of period $11.93 $13.50
- ------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .60 .64
Net realized and unrealized gain (loss) .42 (1.45)
------ ------
Total income (loss) from investment operations 1.02 (.81)
- ------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.62) (.62)
Distributions from net realized gain (.03) (.03)
Distributions in excess of net realized gain -- (.11)
------ ------
Total dividends and distributions to shareholders (.65) (.76)
- ------------------------------------------------------------------------------
Net asset value, end of period $12.30 $11.93
====== ======
==============================================================================
Total Return, at Net Asset Value(2) 8.75% (6.22)%
==============================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $91,108 $73,943
- ------------------------------------------------------------------------------
Average net assets (in thousands) $81,743 $61,008
- ------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.95% 4.88%
Expenses 1.67% 1.65%
- ------------------------------------------------------------------------------
Portfolio turnover rate(4) 15.2% 9.4%
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1998, were $179,465,336 and $226,731,589, respectively.
27 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
------------------------------------------
Year Ended September 30,
1998 1997 1996 1995(1)
===============================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $12.79 $12.41 $12.30 $12.22
- -----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .47 .57 .60 .05
Net realized and unrealized gain (loss) .48 .39 .09 .08
------ ------ ------ ------
Total income (loss) from investment operations .95 .96 .69 .13
- -----------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.57) (.58) (.58) (.05)
Distributions from net realized gain -- -- -- --
Distributions in excess of net realized gain -- -- -- --
------ ------ ------ ------
Total dividends and distributions to shareholders (.57) (.58) (.58) (.05)
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $13.17 $12.79 $12.41 $12.30
====== ====== ====== ======
===============================================================================================
Total Return, at Net Asset Value(2) 7.54% 7.95% 5.64% 1.10%
===============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $6,168 $4,749 $2,007 $25
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $5,420 $3,798 $752 $18
- -----------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.30% 4.67% 4.60% 3.67%(3)
Expenses 1.63% 1.63% 1.77% 1.37%(3)
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 24.7% 20.5% 21.2% 15.2%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to September 30,
1995.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1998, were $179,465,336 and $226,731,589, respectively.
See accompanying Notes to Financial Statements
28 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer New York Municipal Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek
maximum current income exempt from Federal, New York State and New York City
income taxes for individual investors that is consistent with preservation of
capital. The Fund seeks to achieve this objective by investing primarily in
municipal obligations, the income from which is tax-exempt as described above.
The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund
offers Class A, Class B and Class C shares. Class A shares are sold with a
front-end sales charge. Class B and Class C shares may be subject to a
contingent deferred sales charge. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has its own
distribution and/or service plan, expenses directly attributable to that class
and exclusive voting rights with respect to matters affecting that class. Class
B shares will automatically convert to Class A shares six years after the date
of purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
- --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
29 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. As of September 30, 1998,
the Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $5,384,000, which expires between 2003 and 2005.
- --------------------------------------------------------------------------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
September 30, 1998, a provision of $48,514 was made for the Fund's projected
benefit obligations and payments of $11,314 were made to retired trustees,
resulting in an accumulated liability of $249,826 as of September 30, 1998.
The Board of Trustees has adopted a deferred compensation plan
for independent Trustees that enables Trustees to elect to defer receipt of all
or a portion of annual fees they are entitled to receive from the Fund. Under
the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Trustee in shares of one or more
Oppenheimer funds selected by the Trustee. The amount paid to the Trustee under
the plan will be determined based upon the performance of the selected funds.
Deferral of Trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
income per share.
- --------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends separately
for Class A, Class B and Class C shares from net investment income each day the
New York Stock Exchange is open for business and pay such dividends monthly.
Distributions from net realized gains on investments, if any, will be declared
at least once each year.
30 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of the distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
The Fund adjusts the classification of distributions to
shareholders to reflect the differences between financial statement amounts and
distributions determined in accordance with income tax regulations. Accordingly,
during the year ended September 30, 1998, amounts have been reclassified to
reflect a decrease in undistributed net investment income of $1,850,956. Paid-in
capital was decreased by the same amount.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Original issue discount on securities purchased
is amortized over the life of the respective securities, in accordance with
federal income tax requirements. As of November 4, 1997, in order to conform
book and tax bases, the Fund began amortization of premiums on securities for
book purposes. Such cumulative change was limited to a reclassification
adjustment and had no impact on net assets or total increase (decrease) in net
assets. Accordingly, during the year ended September 30, 1998, amounts have been
reclassified to reflect an increase in unrealized appreciation on investments of
$5,150,192. Paid-in capital was decreased by the same amount. For bonds acquired
after April 30, 1993, accrued market discount is recognized at maturity or
disposition as taxable ordinary income. Taxable ordinary income is realized to
the extent of the lesser of gain or accrued market discount. Realized gains and
losses on investments and unrealized appreciation and depreciation are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
31 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Year Ended September 30, 1998 Year Ended September 30, 1997
----------------------------- -----------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 3,928,958 $ 50,847,551 4,470,995 $ 56,051,835
Dividends reinvested 1,692,174 21,877,187 1,936,390 24,294,359
Redeemed (8,997,338) (116,499,420) (10,554,692) (132,355,356)
---------- ------------- ----------- -------------
Net decrease (3,376,206) $ (43,774,682) (4,147,307) $ (52,009,162)
========== ============= =========== =============
- -------------------------------------------------------------------------------------------
Class B:
Sold 925,113 $ 11,973,080 1,229,476 $ 15,435,863
Dividends reinvested 233,067 3,013,390 251,124 3,151,927
Redeemed (1,356,282) (17,541,544) (1,320,301) (16,566,782)
---------- ------------- ----------- -------------
Net increase (decrease) (198,102) $ (2,555,074) 160,299 $ 2,021,008
========== ============= =========== =============
- -------------------------------------------------------------------------------------------
Class C:
Sold 187,441 $ 2,433,192 296,169 $ 3,700,982
Dividends reinvested 14,729 190,501 11,358 142,713
Redeemed (105,189) (1,362,377) (97,937) (1,231,276)
---------- ------------- ----------- -------------
Net increase 96,981 $ 1,261,316 209,590 $ 2,612,419
========== ============= =========== =============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Investments
As of September 30, 1998, net unrealized appreciation on investments of
$62,544,604 was composed entirely of gross appreciation.
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.60% of the first
$200 million of average annual net assets, 0.55% of the next $100 million, 0.50%
of the next $200 million, 0.45% of the next $250 million, 0.40% of the next $250
million and 0.35% of average annual net assets in excess of $1 billion. The
Fund's management fee for the year ended September 30, 1998 was 0.52% of average
annual net assets for Class A, Class B and Class C shares.
32 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
For the year ended September 30, 1998, commissions (sales charges paid by
investors) on sales of Class A shares totaled $685,776, of which $133,537 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $424,646 and $22,130, respectively, of which $6,686 was
paid to an affiliated broker/dealer for Class B shares. During the year ended
September 30, 1998, OFDI received contingent deferred sales charges of $261,984
and $10,595, respectively, upon redemption of Class B and Class C shares, as
reimbursement for sales commissions advanced by OFDI at the time of sale of such
shares.
OppenheimerFunds Services (OFS), a division of the Manager, is
the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of shareholder accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not exceed
0.25% of the average annual net assets of Class A shares of the Fund. OFDI uses
the service fee to reimburse brokers, dealers, banks and other financial
institutions quarterly for providing personal service and maintenance of
accounts of their customers that hold Class A shares. During the year ended
September 30, 1998, OFDI paid $26,744 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
The Fund has adopted Distribution and Service Plans for Class B
and Class C shares to compensate OFDI for its costs in distributing Class B and
Class C shares and servicing accounts. Under the Plans, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class B and Class C shares
for its services rendered in distributing Class B and Class C shares. OFDI also
receives a service fee of 0.25% per year to compensate dealers for providing
personal services for accounts that hold Class B and Class C shares. Each fee is
computed on the average annual net assets of Class B or Class C shares,
determined as of the close of each regular business day. During the year ended
September 30, 1998, OFDI paid $6,880 to an affiliated broker/dealer as
compensation for Class B personal service and maintenance expenses and retained
$824,829 and $29,497, respectively, as compensation for Class B and Class C
sales commissions and service fee advances, as well as financing costs. If
either Plan is terminated by the Fund, the Board of Trustees may allow the Fund
to continue payments of the asset-based sales charge to OFDI for distributing
shares before the Plan was terminated. As of September 30, 1998, OFDI had
incurred excess distribution and servicing costs of $2,411,425 for Class B and
$65,456 for Class C.
33 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
5. Futures Contracts
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may also buy
or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against
increases in interest rates and the resulting negative effect on the value of
fixed rate portfolio securities. The Fund may also purchase futures contracts to
gain exposure to changes in interest rates, as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities (initial margin) in an amount equal to a
certain percentage of the contract value. Subsequent payments (variation margin)
are made or received by the Fund each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized gain or loss when the contract
is closed or expires.
Risks of entering into futures contracts (and related options)
include the possibility that there may be an illiquid market and that a change
in the value of the contract or option may not correlate with changes in the
value of the underlying securities.
================================================================================
6. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended
September 30, 1998.
34 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer New York Municipal Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer New York Municipal Fund as of September 30, 1998, and
the related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended
and the financial highlights for each of the years in the five-year period then
ended. 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 September 30, 1998, 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 Oppenheimer New York Municipal Fund as of September 30, 1998, the
results of its operations for the year then ended, the changes in its net assets
for each of the years in the two-year period then ended, and the financial
highlights for each of the years in the five-year period then ended, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
October 21, 1998
35 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year
ended September 30, 1998, are eligible for the corporate dividend-received
deduction. The dividends were derived from interest on municipal bonds and are
not subject to federal income tax. To the extent a shareholder is subject to any
state or local tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
36 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Oppenheimer New York Municipal Fund
- --------------------------------------------------------------------------------
================================================================================
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder
Servicing Agent
================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer New York Municipal Fund. This report must
be preceded or accompanied by a Prospectus of
Oppenheimer New York Municipal Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
37 Oppenheimer New York Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
==================================================================================================
Real Asset Funds
- --------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
==================================================================================================
Global Stock Funds
- --------------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth &Income Fund
Company Fund
==================================================================================================
Stock Funds
- --------------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Fund Quest Capital Value Fund Quest Value Fund
==================================================================================================
Stock & Bond Funds
- --------------------------------------------------------------------------------------------------
Main Street Income & Total Return Fund Disciplined Allocation Fund
Growth Fund Quest Balanced Multiple Strategies Fund
Quest Opportunity Value Fund(1) Convertible Securities Fund(2)
Value Fund Equity Income Fund
==================================================================================================
Taxable Bond Funds
- --------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
==================================================================================================
Municipal Bond Funds
- --------------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
==================================================================================================
Money Market Funds(4)
- --------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 5/18/98, the Fund's name was changed from "Quest Growth & Income Value
Fund."
2. On 4/28/98, the Fund's name was changed from "Bond Fund for Growth."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1998 OppenheimerFunds, Inc. All rights reserved.
38 Oppenheimer New York Municipal Fund
<PAGE>
[GRAPHIC OMITTED]
<PAGE>
Internet
24-hr access to account
information. Online
transactions now available
- ---------------------------------------
www.oppenheimerfunds.com
- ---------------------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- ---------------------------------------
1-800-525-7048
- ---------------------------------------
Account Transactions
Mon-Fri 8:30am-8pm ET
- ---------------------------------------
1-800-852-8457
- ---------------------------------------
PhoneLink
24-hr automated information
and automated transactions
- ---------------------------------------
1-800-533-3310
- ---------------------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
- ---------------------------------------
1-800-843-4461
- ---------------------------------------
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
- ---------------------------------------
1-800-835-3104
- ---------------------------------------
Information and services
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links" your Oppenheimer
funds accounts and your bank checking or savings account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[OPPENHEIMER LOGO] OppenheimerFunds(R)
Distributor, Inc.
RA0360.001.0998 November 27, 1998
