LETTER TO SHAREHOLDERS
Dear Shareholder:
When your Fund ended its fiscal year on October 31, 1994, the net asset
value per share was $18.73, a decrease of $2.80 from the net asset value on
October 31, 1993. During the fiscal year, income dividends of approximately
$1.15 per share were paid, which translates into an annualized distribution
rate of 5.99% per share, based on the closing October 31 net asset value,
adjusted for a capital gain distribution.* As has been true from the Fund's
inception, all interest income paid to you has been exempt from Federal, New
York State and City taxes, although certain shareholders may be subject to
the Federal Alternative Minimum tax (AMT).
During 1994, the bond markets have been victimized by a strengthening
economy, fears of rising inflation and a weakening U.S. dollar. As a result
of these influences, interest rates have risen much faster this year than
most economists had anticipated. Prices of municipal bonds reached their low
points early in the second quarter, staged a modest rebound this summer, and
began sliding again in recent weeks. As a consequence, tax-exempt yields have
risen to their highest levels in nearly two years.
The most recent tightening by the Federal Reserve on November 15 has yet
to have a positive effect on the fixed income market (total federal funds
rate increase this year is 250 basis points). Along with inflation concerns
and an unresilient dollar, the potential inability of the administration to
function in the new congressional environment could make investors, both
foreign and domestic, very wary.
We continue to be what we consider cautious in our investment strategy.
It had been anticipated that the Fed's tightening policy would have
translated into more favorable economic news for the markets by this time. It
still is unclear how much further the Fed may go before the effects of its
rate increases are felt. We believe the municipal market does have positive
factors working to its advantage (i.e., adequate retail demand for tax-exempt
securities, combined with a sharp reduction in the supply of new issuance
this year). While we view the municipal market more favorably today than we
have in months, we are wary of the strong influence exerted on it by the
price volatility of taxable securities, particularly the U.S. Treasury
markets. The New York market, as well as the general market, has seen a
reduction in issuance throughout 1994. Within the coming year, we expect the
State will be addressing many new changes resulting from the election of a
Republican governor, with tax reform apparently foremost on the agenda.
After enjoying a number of years of strong market performance, it is
unsettling, to say the least, to be faced with such an uncertain environment.
With the benefit of hindsight, many investors might have opted earlier this
year to re-deploy their investment holdings into more defensive securities as
a hedge against rising rates: falling prices earlier this year reduced the
value of the portfolio, but the level of tax-free dividends remains stable.
We entered 1994 with a certain wariness, so we increased our short-term cash
position and shortened our duration. As the year progressed we took advantage
of some of the inequities that arose in a bear market: discount coupon bonds
that usually trade at a premium to current coupon obligations became cheaper o
n several occasions, and we viewed this as a buying opportunity. Most of the
year has been a series of trading cycles with the market stabilizing, moving
up, and then falling back to cheaper levels. We attempted to use this to our
advantage by selling selectively during those periods of strength.
We continue to direct our management efforts to provide a high level of
tax-exempt income each year and to deliver strong long-term performance
results. We trust that our philosophy is in concert with yours.
Sincerely,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
December 19, 1994
New York, N.Y.
* Capital gains, if any, are generally subject to Federal, State and local
taxes.
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN GENERAL NEW YORK
MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
(Exhibit A)
* Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (11/19/84)
OCTOBER 31, 1994 OCTOBER 31, 1994 TO OCTOBER 31, 1994
------------------ ------------------ ------------------------------
(6.59%) 7.65% 8.11%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the General New York
Municipal Bond Fund on 11/19/84 (Inception Date) to a $10,000 investment made
in the Lehman Brothers Municipal Bond Index on that date. For comparative
purposes the value of the Index on 11/30/84 is used as the beginning value on
11/19/84. All dividends and capital gain distributions are reinvested.
The Fund invests primarily in municipal securities and its performance takes
into account fees and expenses. Unlike the Fund, the Lehman Brothers
Municipal Bond Index is an unmanaged total return performance benchmark for
the long-term, investment-grade tax exempt bond market, calculated by using
municipal bonds selected to be representative of the market. The Index does
not take into account charges, fees and other expenses. Further information
relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
NEW YORK-90.1%
Albany Industrial Development Agency:
IDR (Hampton Plaza Project) 6.25%, 3/1/2018............................. $ 5,600,000 $ 4,901,176
LR:
(New York State Assembly Building Project) 7.75%, 1/1/2010............ 3,615,000 3,720,088
(New York State Department of Health Building Project) 7.25%, 10/1/2010 1,755,000 1,734,379
Board of Cooperative Educational Services, COP (Greenport Vocational
Facility Project)
7.875%, 10/1/2000....................................................... 1,120,000 1,174,813
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009 (LOC; Dresdner Bank) (a)................................ 2,400,000 2,384,664
Erie County Water Authority, Water Revenue, Refunding
Zero Coupon, 12/1/2017 (Insured; AMBAC)................................. 1,210,000 227,431
Franklin County Solid Waste Management Authority, Solid Waste Systems Revenue
6.125%, 6/1/2009........................................................ 2,150,000 2,010,379
Grand Central District Management Association, Inc., Business Improvement
District,
Capital Improvement, Refunding:
5.125%, 1/1/2014...................................................... 1,000,000 811,830
5.25%, 1/1/2022....................................................... 3,000,000 2,353,320
Jefferson County Industrial Development Agency, SWDR
(Champion International Corp.) 7.20%, 12/1/2020......................... 2,000,000 2,009,540
Metropolitan Transportation Authority, Service Contract,
Transportation Facilities:
Refunding:
7.125%, 7/1/2009.................................................. 2,000,000 2,036,740
7%, 7/1/2012...................................................... 3,000,000 3,016,980
Revenue 7.004%, 7/1/2022 (b,c)........................................ 3,000,000 1,980,000
New York City:
7.50%, 2/1/2006......................................................... 5,000,000 5,275,200
7.65%, 2/1/2006......................................................... 3,000,000 3,196,110
7.75%, 8/15/2007........................................................ 4,000,000 4,279,640
7%, 10/1/2008........................................................... 1,750,000 1,761,025
7.50%, 3/15/2009........................................................ 1,000,000 1,035,260
6.25%, 8/1/2011 (Insured; FSA, Prerefunded 8/1/2002) (d)................ 1,550,000 1,622,633
7.20%, 2/1/2014......................................................... 5,000,000 5,052,900
New York City Health and Hospital Authority, Local Government Revenue,
Refunding
6%, 2/15/2007........................................................... 2,750,000 2,574,880
New York City Industrial Development Agency:
Civic Facility Revenue:
(Saint Christopher Ottilie Project) 7.50%, 7/1/2021 (LOC; Allied Irish Banks) (a) 2,620,000 2,690,792
(YMCA of Greater New York Project) 8%, 8/1/2016....................... 3,300,000 3,426,357
IDR:
7.625%, 11/1/2009 (LOC; ABN Amro Bank) (a)............................ 1,340,000 1,369,132
(Plaza Packaging Corp. Project) 7.65%, 12/1/2009 (LOC; Barclays Bank) (a) 2,750,000 2,870,037
Special Facility Revenue:
(American Airlines, Inc. Project) 6.90%, 8/1/2024..................... 3,000,000 2,886,210
(Terminal One Group Association Project):
6%, 1/1/2015...................................................... 4,375,000 3,980,069
6.125%, 1/1/2024.................................................. 6,000,000 5,391,000
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW YORK (CONTINUED)
New York City Municipal Water Finance Authority, Water and Sewer Systems
Revenue
7%, 6/15/2009........................................................... $ 3,500,000 $ 3,626,875
New York State, Crossover, Refunding 6.125%, 11/15/2012..................... 5,000,000 4,807,450
New York State Dormitory Authority, Revenues:
City University;
5.75%, 7/1/2011....................................................... 2,455,000 2,164,377
Consolidated City University Systems:
2nd Generation 5.75%, 7/1/2013........................................ 5,000,000 4,321,100
5.75%, 7/1/2013....................................................... 2,975,000 2,571,054
State University Educational Facilities:
6.25%, 5/15/2014...................................................... 2,000,000 1,851,500
6.25%, 5/15/2017...................................................... 5,000,000 4,588,250
6.25%, 5/15/2020...................................................... 2,000,000 1,813,820
5.40%, 5/15/2023...................................................... 12,750,000 10,100,550
5.75%, 5/15/2024...................................................... 2,000,000 1,670,200
Refunding:
5.50%, 5/15/2008.................................................. 5,000,000 4,442,650
7.50%, 5/15/2011.................................................. 2,000,000 2,121,260
7.375%, 5/15/2014................................................. 1,310,000 1,339,868
7%, 5/15/2016..................................................... 4,245,000 4,249,712
6%, 5/15/2017..................................................... 2,575,000 2,279,750
Suffolk County Judicial Facility 9.50%, 4/15/2014....................... 3,000,000 3,510,570
Upstate Community Colleges 7.20%, 7/1/2021 (Prerefunded 7/1/2001) (d)... 2,130,000 2,357,910
New York State Energy Research and Development Authority:
Electric Facilities Revenue:
(Consolidated Edison Co. of New York, Inc.) 6.75%, 1/15/2027.......... 3,250,000 3,162,282
(Long Island Lighting Co.):
7.15%, Series A, 6/1/2020......................................... 2,000,000 1,883,980
7.15%, Series A, 2/1/2022......................................... 3,000,000 2,822,250
6.90%, Series D, 8/1/2022......................................... 4,000,000 3,647,520
Gas Facilities Revenue 7.539%, 7/8/2026 (Insured; MBIA) (b)............. 3,000,000 2,032,500
New York State Environmental Facilities Corp.:
PCR (State Water Revolving Fund):
7.25%, 6/15/2010...................................................... 1,300,000 1,379,287
7.20%, 3/15/2011...................................................... 4,500,000 4,759,875
7.50%, 6/15/2012...................................................... 2,000,000 2,163,880
6.30%, 3/15/2016...................................................... 5,200,000 4,903,132
Special Obligation (Riverbank State Park):
7.25%, 4/1/2007....................................................... 1,500,000 1,554,885
7.25%, 4/1/2012....................................................... 2,500,000 2,582,675
New York State Housing Finance Agency, Revenue:
Childrens' Rescue Fund Housing 7.625%, 5/1/2018 ........................ 2,400,000 2,350,008
Multi-Family Housing:
Second Mortgage 6.625%, 8/15/2012..................................... 2,500,000 2,480,325
7.75%, 11/1/2020 (Insured; AMBAC)..................................... 2,230,000 2,346,451
(Refunding - Health Facilities) 8%, 11/1/2008........................... 2,000,000 2,207,940
Service Contract Obligation:
6.30%, 9/15/2012...................................................... 2,500,000 2,378,975
7.375%, 9/15/2021 (Prerefunded 3/15/2002) (d)......................... 2,000,000 2,241,020
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW YORK (CONTINUED)
New York State Local Government Assistance Corp.:
7.25%, 4/1/2018 (Prerefunded 4/1/2001) (d).............................. $ 4,000,000 $ 4,434,960
Refunding 6%, 4/1/2014.................................................. 4,000,000 3,673,680
New York State Medical Care Facilities Finance Agency, Revenue:
(Hospital & Nursing Home Insured Mortgage):
6.85%, 2/15/2012 (Insured; FHA)....................................... 3,000,000 3,076,140
6.20%, 8/15/2013 (Insured; FHA)....................................... 3,000,000 2,862,180
8%, 2/15/2028 (Insured; FHA).......................................... 4,470,000 4,865,193
7.45%, 8/15/2031 (Insured; FHA)....................................... 3,000,000 3,141,090
Refunding 6.20%, 2/15/2023 (Insured; FHA)............................. 1,700,000 1,561,314
Refunding (Huntington Hospital Mortgage Project) 6.50%, 11/1/2014..... 1,750,000 1,640,503
Improvement (Mental Health Services Facilities):
6.50%, 2/15/2019...................................................... 5,290,000 4,895,630
7.875%, 8/15/2020 (Prerefunded 8/15/2000) (d)......................... 1,250,000 1,414,912
(Long Term Health Care - Insured Program) 6.45%, 11/1/2010 (Insured; CGIC) 5,000,000 4,995,050
(North General Hospital) 7.40%, 2/15/2019............................... 1,000,000 1,021,160
(Refunding - Mortgage Hospital) 8%, 2/15/2025
(Insured; FHA, Prerefunded 8/15/1997) (d)............................. 1,000,000 1,099,180
New York State Mortgage Agency, Revenue:
6.30%, 10/1/2017........................................................ 4,550,000 4,267,354
Homeowner Revenue:
7.50%, 4/1/2016....................................................... 1,000,000 1,031,710
7.50%, 10/1/2017...................................................... 3,000,000 3,087,480
7.55%, 10/1/2017...................................................... 1,000,000 1,035,550
6.45%, 10/1/2020...................................................... 3,960,000 3,874,424
7.80%, 10/1/2020...................................................... 2,000,000 2,067,580
6.65%, 4/1/2022....................................................... 2,000,000 1,943,440
7.95%, 4/1/2022....................................................... 1,950,000 2,015,832
New York State Power Authority, General Purpose Revenue 5%, 1/1/2014........ 7,000,000 5,705,910
New York State Thruway Authority, Service Contract Revenue
(Local Highway and Bridge) 7.25%, 1/1/2010.............................. 4,350,000 4,489,766
New York State Urban Development Corp., Revenue:
(Alfred Technology Resources, Inc. Project) 7.875%, 1/1/2020............ 2,070,000 2,194,283
(Onondaga County Convention Project) 7.875%, 1/1/2020................... 1,000,000 1,066,370
North Country Development Authority, Solid Waste Management System Revenue
6.75%, 7/1/2012......................................................... 4,530,000 4,433,511
Oneida - Herkimer Solid Waste Management Authority, Solid Waste System
Revenue,
Refunding 6.75%, 4/1/2014............................................... 1,600,000 1,525,184
Rensselaer County Industrial Development Agency, IDR (Albany International
Corp.)
7.55%, 6/1/2007......................................................... 4,000,000 4,218,160
Suffolk County Industrial Development Agency, Civic Facility Revenue
(Long Island Association of Children) 7.35%, 8/1/2009 (LOC; Barclays Bank) (a) 2,040,000 2,073,191
Triborough Bridge and Tunnel Authority:
(Convention Center Project) 7.25%, 1/1/2010............................. 4,500,000 4,654,620
Revenues:
7%, 1/1/2020 (Prerefunded 1/1/2001) (d)............................... 2,550,000 2,785,391
7%, 1/1/2021 (Prerefunded 1/1/2001) (d)............................... 2,000,000 2,177,460
Special Obligation, Refunding 7.10%, 1/1/2010........................... 3,000,000 3,147,120
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
U.S. RELATED-9.9%
Commonwealth of Puerto Rico Highway and Transportation Authority,
Highway Revenue 6.444%, 7/1/2006 (b).................................... $ 7,450,000 $ 6,118,313
Commonwealth of Puerto Rico Infrastructure Financing Authority 7.50%, 7/1/2009 2,000,000 2,132,800
Guam Airport Authority, Revenue 6.60%, 10/1/2010............................ 2,000,000 1,946,920
Puerto Rico Electric Power Authority, Power Revenue 6.375%, 7/1/2024........ 1,500,000 1,420,785
Puerto Rico Housing Finance Corp., SFMR 9.302%, 8/4/2025 (Collateralized; GNMA) (b) 2,000,000 1,762,500
Puerto Rico Industrial Medical and Environmental Pollution Control
Facilities Financing Authority, Revenue:
(Pepsico, Inc. Project) 6.25%, 11/15/2013 (Guaranteed; Pepsico, Inc.). 4,000,000 3,878,800
(Refunding - St Luke's Hospital Project) 6.25%, 6/1/2010.............. 1,100,000 1,062,655
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
8.10%, 10/1/2005........................................................ 3,500,000 3,759,525
Virgin Islands Public Finance Authority, Revenue:
(Highway - Transportation Trust Fund) 7.70%, 10/1/2004................ 1,750,000 1,877,960
(Refunding - Matching Fund Loan Note) 7.25%, 10/1/2018................ 3,500,000 3,472,280
Virgin Islands Water and Power Authority, Electric System Revenue 7.40%, 7/1/2011 1,000,000 1,019,670
--------------
TOTAL INVESTMENTS
(cost $308,980,015)..................................................... $303,414,002
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
CGIC Capital Guaranty Insurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- - --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 12.5%
AA Aa AA 19.5
A A A 27.0
BBB Baa BBB 33.3
BB Ba BB 1.6
Not Rated Not Rated Not Rated 6.1
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Inverse floater security - the interest rate is subject to change
periodically.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1994, this security amounted to $1,980,000 or .6% of net assets.
(d) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $308,980,015)-see statement..................................... $303,414,002
Interest receivable..................................................... 6,042,163
Prepaid expenses........................................................ 4,736
--------------
309,460,901
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 135,333
Due to Custodian........................................................ 1,148,422
Payable for Common Stock redeemed....................................... 9,649
Accrued expenses and other liabilities.................................. 171,886 1,465,290
----------- --------------
NET ASSETS ................................................................ $307,995,611
==============
REPRESENTED BY:
Paid-in capital......................................................... $311,656,579
Accumulated undistributed net realized gain on investments.............. 1,905,045
Accumulated net unrealized (depreciation) on investments-Note 3......... (5,566,013)
--------------
NET ASSETS at value applicable to 16,443,758 shares outstanding
(100 million shares of $.01 par value Common Stock authorized).......... $307,995,611
==============
NET ASSET VALUE, offering and redemption price per share
($307,995,611 / 16,443,758 shares)...................................... $18.73
========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 23,013,649
EXPENSES:
Management fee-Note 2(a).............................................. $ 2,150,206
Shareholder servicing costs-Note 2(b)................................. 855,535
Professional fees..................................................... 46,958
Custodian fees........................................................ 43,350
Prospectus and shareholders' reports-Note 2(b)........................ 30,067
Directors' fees and expenses-Note 2(c)................................ 26,033
Registration fees..................................................... 2,345
Miscellaneous......................................................... 36,162
--------------
3,190,656
Less-reduction in management fee due to undertakings-Note 2(a)........ 440,853
--------------
TOTAL EXPENSES.................................................. 2,749,803
-------------
INVESTMENT INCOME-NET........................................... 20,263,846
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 1,906,458
Net unrealized (depreciation) on investments............................ (46,196,850)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (44,290,392)
-------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(24,026,546)
=============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
--------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 20,808,983 $ 20,263,846
Net realized gain on investments........................................ 5,565,671 1,906,458
Net unrealized appreciation (depreciation) on investments for the year.. 33,345,236 (46,196,850)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 59,719,890 (24,026,546)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (20,735,883) (20,385,019)
Net realized gain on investments........................................ (4,115,876) (5,588,704)
-------------- --------------
TOTAL DIVIDENDS....................................................... (24,851,759) (25,973,723)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 367,798,322 178,945,529
Dividends reinvested.................................................... 19,356,609 19,895,760
Cost of shares redeemed................................................. (292,270,773) (254,981,061)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 94,884,158 (56,139,772)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 129,752,289 (106,140,041)
NET ASSETS:
Beginning of year....................................................... 284,383,363 414,135,652
-------------- --------------
End of year (including undistributed investment income-net;
$121,173 in 1993)..................................................... $414,135,652 $307,995,611
============== ==============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 17,866,847 8,859,506
Shares issued for dividends reinvested.................................. 941,812 980,345
Shares redeemed......................................................... (14,115,202) (12,633,641)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 4,693,457 (2,793,790)
============== ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED OCTOBER 31,
------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $18.31 $17.96 $19.24 $19.55 $21.53
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net........................ 1.32 1.30 1.24 1.17 1.14
Net realized and unrealized gain (loss) on investments (.35) 1.28 .31 2.24 (2.49)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS........... .97 2.58 1.55 3.41 (1.35)
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net......... (1.32) (1.30) (1.24) (1.16) (1.15)
Dividends from net realized gain on investments -- -- -- (.27) (.30)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS........................ (1.32) (1.30) (1.24) (1.43) (1.45)
------ ------ ------ ------ ------
Net asset value, end of year................. $17.96 $19.24 $19.55 $21.53 $18.73
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 5.47% 14.83% 8.23% 18.05% (6.59%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .07% .36% .62% .69% .76%
Ratio of net investment income to average net assets 7.36% 6.95% 6.32% 5.64% 5.62%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ 1.14% .69% .39% .22% .12%
Portfolio Turnover Rate...................... 59.98% 19.32% 43.20% 23.46% 24.56%
Net Assets, end of year (000's Omitted)...... $102,603 $209,165 $284,383 $414,136 $307,996
See notes to financial statements.
</TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the distributor of the Fund's
shares, which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgement of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. Investments not listed on an
exchange or the national securities market, or securities for which there
were no transactions, are valued at the average of the most recent bid and
asked prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay prinicipal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the average
daily value of the Fund's net assets. The Agreement provides that if in any
full fiscal year the aggregate expenses of the Fund, exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Fund, the Fund
may deduct from the payment to be made to the Manager under the Agreement, or
the Manager will bear, the excess expense to the extent required by state
law. However, the Manager had undertaken from November 1, 1993 through April
7, 1994, to reduce the management fee paid by the Fund, to the extent that
the Fund's aggregate expenses (excluding certain expenses as described above)
exceeded specified annual percentages of the Fund's average daily net assets.
The Manager has currently undertaken from April 8, 1994 to waive receipt of
the management fee payable to it by the Fund in excess of an annual rate of
.50 of 1% of the Fund's average daily net assets. The reduction in management
fee, pursuant to the undertakings, amounted to $440,853 for the year ended
October 31, 1994.
The Manager may modify the expense limitation percentages from time to
time, provided that the resulting expense reimbursement would not be less
than the amount required pursuant to the Agreement.
(B) On August 3, 1994, Fund shareholders approved a revised Service Plan
(the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Plan,
effective August 24, 1994, the Fund (a) reimburses the Distributor for
payments to third parties for distributing the Fund's shares and servicing
shareholder accounts and (b) pays the Manager, Dreyfus Service Corporation or
any affiliate (collectively "Dreyfus") for advertising and marketing relating
to the Fund and servicing Shareholders accounts, at an aggregate annual rate
of .20 of 1% of the value of the Fund's average daily net assets. Each of the
Distributor and Dreyfus may pay Service Agents (a securities dealer,
financial institution or other industry professional) a fee in respect of the
Fund's shares owned by shareholders with whom the Service Agent has a
servicing relationship or for whom the Service Agent is the dealer or holder
of record. Each of the Distributor and Dreyfus determine the amounts to be
paid to Service Agents to which it will make payments and the basis on which
such payments are made. The Plan also separately provides for the Fund to
bear the costs of preparing, printing and distributing certain of the Fund's
prospectuses and statements of additional information and costs associated
with implementing and operating the Plan, not to exceed the greater of
$100,000 or .005 of 1% of the Fund's average daily net assets for any full
fiscal year.
Prior to August 24, 1994, the Fund's Service Plan ("prior Service Plan")
provided that the Fund pay Dreyfus Service Corporation at an annual rate of
.20 of 1% of the value of the Fund's average daily net assets, for costs and
expenses in connection with advertising, marketing and distributing the
Fund's shares and for servicing shareholder accounts. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's shares owned by clients of the Service Agent. The prior Service
Plan also separately provided for the Fund to bear the costs of preparing,
printing and distributing certain of the Fund's prospectuses and statements
of additional information and costs associated with implementing and
operating the prior Service Plan, not to exceed the greater of $100,000 or
.005 of 1% of the Fund's average daily net assets for any full fiscal year.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During the year ended October 31, 1994, $126,661 was charged to the Fund
pursuant to the Plan and $606,032 was charged pursuant to the prior Service
Plan.
(c) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $2,500 and an attendence fee of $500 per meeting.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $218,281,486 and $278,077,925, respectively, for the year ended
October 31, 1994, and consisted entirely of long-term and short-term
municipal investments.
At October 31, 1994, accumulated net unrealized depreciation on
investments was $5,566,013, consisting of $8,383,052 gross unrealized
appreciation and $13,949,065 gross unrealized depreciation.
At October 31, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
General New York Municipal Bond Fund, Inc., including the statement of
investments, as of October 31, 1994, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1994 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 General New York Municipal Bond Fund, Inc. at October 31, 1994,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
(Ernst and Young LLP Signature Logo)
New York, New York
December 7, 1994
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended October 31, 1994:
-- all the dividends paid from investment income-net are
"exempt-interest dividends" (not subject to regular Federal and, for
individuals who are New York residents, New York State and New York
City personal income taxes), and
-- the portion of the $.2991 per share paid by the Fund on
December 9, 1993 representing a long-term capital gain distribution is
$.1514 per share.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's capital gain distributions paid for the 1994
calendar year on Form 1099-DIV which will be mailed by January 31, 1995.
(Dreyfus Lion "D" Logo)
GENERAL NEW YORK
MUNICIPAL BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 949AR9410
(Dreyfus Logo)
General
New York
Municipal
Bond Fund, Inc.
Annual Report
October 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
_________________________________________________________
| | | |
| | LEHMAN | GENERAL |
| | BROTHERS | NEW YORK |
| PERIOD | MUNICIPAL | MUNICIPAL |
| | BOND INDEX * | BOND FUND |
|---------------- | ------------------ | -------------|
| 11/19/84 | 10,000 | 10,000 |
| 10/31/85 | 11,701 | 11,312 |
| 10/31/86 | 14,345 | 13,169 |
| 10/31/87 | 14,226 | 13,127 |
| 10/31/88 | 16,298 | 14,344 |
| 10/31/89 | 17,619 | 15,032 |
| 10/31/90 | 18,927 | 15,853 |
| 10/31/91 | 21,230 | 18,204 |
| 10/31/92 | 23,011 | 19,702 |
| 10/31/93 | 26,252 | 23,259 |
| 10/31/94 | 25,108 | 21,726 |
|--------------------------------------------------------|
*Source: Lehman Brothers
