General
New York Municipal
Bond Fund, Inc.
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not
properly process and calculate date-related information from and after January
1, 2000. The Dreyfus Corporation is working to avoid Year 2000-related problems
in its systems and to obtain assurances from other service providers that they
are taking similar steps. In addition, issuers of securities in which the
fund invests may be adversely affected by Year 2000-related problems. This
could have an impact on the value of the fund's investments and its share
price.
<PAGE>
Contents
THE FUND
- ----------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
- -----------------------
Back Cover
<PAGE>
General New York The Fund
Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this semiannual report for General New York Municipal
Bond Fund, Inc., covering the six-month period from November 1, 1998 through
April 30, 1999. Inside, you'll find valuable information about how the Fund was
managed during the reporting period, including a discussion with the Fund's
portfolio manager, Monica Wieboldt.
The past six months have generally been rewarding for municipal bond investors.
Lower short-term interest rates adopted by the Federal Reserve Board and other
central banks in the fall of 1998 appear to have helped many U.S. businesses
withstand the effects of economic weakness in Japan, Asia and Latin America. At
the same time, the U.S. economy entered its eighth year of expansion in an
environment characterized by low inflation and high levels of consumer spending.
Tax-exempt fixed-income securities provided good results in this economic
climate, especially relative to taxable U.S. Treasury securities. While prices
for U.S. Treasury securities declined significantly through most of the
reporting period, a lack of new issuance relative to robust investor demand
supported most municipal bond prices, which remained relatively unchanged over
the past six months. As a result, the differences in valuations between taxable
U.S. Treasury securities and tax-exempt bonds narrowed to more historically
normal levels.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in General New York Municipal Bond Fund, Inc.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Monica Wieboldt, Portfolio Manager
How did General New York Municipal Bond Fund, Inc. perform?
The Fund produced a 1.53% total return over the six-month period ended April 30,
1999,1 compared to a total return of 1.28% for the average of the Lipper New
York Municipal Debt Funds category.(2)
What is the Fund's investment approach?
Our goal is to seek a high level of federally and New York state tax-exempt
income from a diversified portfolio of longer-term municipal bonds. To achieve
this goal, we employ two primary strategies. First, we attempt to add value by
selecting bonds that we believe are most likely to provide the highest yields.
These bonds comprise the portfolio's long-term core position. We augment the
core position with holdings that have the potential to provide capital
appreciation.
Second, we tactically manage the portfolio's average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase, we may reduce the portfolio's average duration to make cash available
for purchases. Conversely, if we expect demand for municipal bonds to surge at a
time when we anticipate little issuance, we may increase the portfolio's average
duration to maintain current yields for as long as practical.
What other factors influenced the Fund's performance?
When the Asian currency and credit crisis spread to Russia and threatened
Latin America last summer and fall, investors flocked to U.S. Treasury
securities. As a result, yields on taxable Treasuries fell
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
briefly in October, just before the six-month reporting period began, to
levels that were roughly equivalent to yields on comparable tax-exempt bonds.
However, the Federal Reserve Board and other central banks moved quickly to
stimulate global economic growth. They did so last fall by reducing key short-
term interest rates. Because lower short-term interest rates were expected to
stimulate economic growth and potentially reignite inflationary pressures,
yields on longer-term bonds rose. However, the extent of that rise was much
greater for taxable U.S. Treasury securities than for tax-free municipal bonds.
In addition, because of strong economic conditions throughout the country, New
York state and its municipalities have had less need to borrow. As a result,
fewer tax-exempt bonds were issued than in the same period one year ago. Yet,
demand from investors seeking to minimize their income tax liabilities remained
high. This balance between supply and demand helped keep municipal bond prices
relatively stable while U.S. Treasury bond prices fell sharply.
4
<PAGE>
What is the Fund's current strategy?
We continue to search for the most attractive values in New York's municipal
bond market. We have found such values, in our opinion, in bonds issued by
municipalities such as New York City, which has traditionally offered higher
yields than most other New York issuers. However, a strong economy and prudent
fiscal management have improved New York City's financial condition, and new
issues have reflected those improvements. The Fund continually evaluates
situations such as private placements or smaller issuers that provide
opportunities to enhance or maintain yield. We expect these strategies to help
us continue to maximize tax-exempt returns for our shareholders.
May 13, 1999
1 Total return includes reinvestment of dividends and any capital gains
paid. Income may be subject to state and local income taxes for non-New York
residents. Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders.
2 Source: Lipper Analytical Services, Inc.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--99.4% Amount ($) Value ($)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
New York--94.5%
Albany Industrial Development Agency:
Civic Facility Revenue (Sage Colleges Project)
5.30%, 4/1/2029 1,750,000 1,739,255
IDR (Hampton Plaza Project) 6.25%, 3/15/2018 5,600,000 5,790,064
LR:
(New York State Assembly Building Project)
7.75%, 1/1/2010 3,390,000 3,647,335
(New York State Department of Health Building
Project) 7.25%, 10/1/2010 1,730,000 1,932,635
Board of Cooperative Educational Services, COP
(Greenport Vocational Facility Project)
7.875%, 10/1/2000 461,881 472,403
Cohoes Industrial Development Agency, IDR (Norlite
Corp. Project) 6.75%, 5/1/2009 (LOC; Dresdner
Bank, Prerefunded 5/1/2002)a 2,400,000 2,638,032
Franklin County Solid Waste Management Authority,
Solid Waste Systems Revenue 6.125%, 6/1/2009 1,350,000 1,392,012
Huntington Housing Authority, Senior Housing Facility
Revenue (Gurwin Jewish Senior Residences)
6%, 5/1/2029 1,370,000 1,373,480
Long Island Power Authority, Electric System Revenue
5.50%, 12/1/2029 2,960,000 3,040,897
Metropolitan Transportation Authority,
Transportation Facilities Revenue:
6.521%, 7/1/2014 (Insured; FSA)b 2,000,000 2,122,800
6%, 7/1/2016 (Insured; FSA) 5,000,000 5,426,350
Refunding (Service Contract) 5.375%, 7/1/2021 3,000,000 3,046,740
New York City:
5.875%, 8/15/2013 3,300,000 3,564,627
5.875%, 8/15/2016 2,715,000 2,929,213
Refunding:
6.375%, 8/15/2012 2,670,000 2,956,224
6%, 8/1/2016 4,000,000 4,349,960
6%, 8/1/2017 2,000,000 2,183,160
6%, 8/1/2021 6,000,000 6,540,900
6.125%, 8/1/2025 5,000,000 5,511,000
New York City Health and Hospitals Corp.,
Health Systems Revenue 5.25%, 2/15/2017 1,700,000 1,678,580
New York City Industrial Development Agency:
Civic Facility Revenue:
(College of Aeronautics Project) 5.50%,
5/1/2028 1,600,000 1,621,760
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
New York City Industrial Development Agency (continued):
Civic Facility Revenue (continued):
(YMCA of Greater New York Project)
5.80%, 8/1/2016 1,500,000 1,577,265
IDR:
(Brooklyn Navy Yard) 5.75%, 10/1/2036 1,970,000 2,017,122
Refunding (LaGuardia Association LP Project)
6%, 11/1/2028 3,790,000 3,823,845
Special Facility Revenue:
(1990 American Airlines Inc. Project)
5.40%, 7/1/2020 2,000,000 2,019,920
(Terminal One Group Association Project)
6%, 1/1/2019 3,000,000 3,177,720
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue
6%, 6/15/2025 (Prerefunded 6/15/2005)a 9,750,000 10,884,510
State of New York, GO 5.70%, 3/15/2013 2,000,000 2,130,520
New York State Dormitory Authority, Revenues:
4201 School Program 5%, 7/1/2018 2,000,000 1,950,500
Consolidated City University Systems:
5.75%, 7/1/2013 10,005,000 10,892,443
5.625%, 7/1/2016 2,500,000 2,685,950
5.75%, 7/1/2018 2,500,000 2,714,725
Department of Health:
5.75%, 7/1/2017 5,240,000 5,504,201
(Roswell Park Cancer) 6.625%, 7/1/2024
(Prerefunded 7/1/2005)a 2,700,000 3,117,366
Lease Revenue (Municipal Health Facilities
Improvement Program)
4.75%, 1/15/2029 1,500,000 1,408,020
Refunding:
(Mental Health Services Facility) 6%, 8/15/2021 1,750,000 1,900,255
Secured Hospital (New York Downtown Hospital)
5.30%, 2/15/2020 5,000,000 5,001,600
State University Educational Facilities:
5.875%, 5/15/2017 2,060,000 2,279,040
6%, 5/15/2025 (Prerefunded 5/15/2005)a 3,825,000 4,302,016
(WK Nursing Home Corp.) 6.05%, 2/1/2026
(Insured; FHA) 5,000,000 5,375,050
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
New York State Energy Research and Development
Authority: Electric Facilities Revenue
(Long Island Lighting Co.):
7.15%, 2/1/2022 915,000 992,006
7.15%, 2/1/2022 (Prerefunded 6/15/2002)a 2,520,000 2,805,894
5.30%, 11/1/2023 1,600,000 1,592,816
Facilities Revenue (Consolidated Edison Co. of
New York, Inc. Project) 7.125%, 12/1/2029 2,000,000 2,294,820
Gas Facilities Revenue (Brooklyn Union Gas Co.
Project) 6.368%, 4/1/2020 5,000,000 5,686,700
New York State Environmental Facilities Corp.
PCR (Pilgrim State Sewer Project) 6.30%, 3/15/2016 5,200,000 5,733,572
New York State Housing Finance Agency, Revenue:
(LooseStrife Fields Apartments and Fairway Manor)
6.75%, 11/15/2036 (Insured; FHA) 5,910,000 6,411,700
Refunding:
Health Facilities 6%, 11/1/2007 6,000,000 6,599,460
(Housing Mortgage Project)
6.10%, 11/1/2015 (Insured; FSA) 1,965,000 2,131,357
Service Contract Obligation:
6%, 9/15/2016 8,675,000 9,314,000
6%, 3/15/2026 6,645,000 7,239,462
Refunding:
5.25%, 3/15/2011 2,000,000 2,066,020
5.50%, 9/15/2018 6,000,000 6,231,060
New York State Medical Care Facilities Finance Agency,
Revenue: Hospital & Nursing Home Insured Mortgage:
6.85%, 2/15/2012 (Prerefunded 2/15/2002)
(Insured; FHA)a 2,670,000 2,920,820
6.20%, 8/15/2013 (Insured; FHA) 3,000,000 3,201,990
6.125%, 2/15/2015 5,170,000 5,581,377
Long Term Health Care 6.45%, 11/1/2010
(Insured; FSA) 4,705,000 5,156,962
New York State Mortgage Agency, Homeowner Revenue:
6%, 4/1/2017 2,000,000 2,140,280
6.60%, 10/1/2019 3,500,000 3,788,785
6.05%, 4/1/2026 5,490,000 5,866,449
6.40%, 4/1/2027 3,965,000 4,313,920
New York State Thruway Authority, Service Contract
Revenue (Local Highway and Bridge):
6%, 4/1/2012 6,195,000 6,840,457
6.25%, 4/1/2014 (Prerefunded 4/1/2005)a 2,000,000 2,254,780
5.75%, 4/1/2016 4,950,000 5,274,819
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
New York State Urban Development Corp.,
Correctional Facilities Revenue:
5.375%, 1/1/2015 3,000,000 3,072,840
Refunding 5.50%, 1/1/2014 3,000,000 3,191,400
Niagara Frontier Transportation Authority, Airport
Revenue (Greater Buffalo International Airport)
6.125%, 4/1/2014 (Insured; AMBAC) 2,700,000 2,901,447
Onondaga County Industrial Development Agency,
Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024 4,000,000 4,354,600
Orange County Industrial Development Agency,
Life Care Community Revenue
(Glenn Arden Inc. Project) 5.625%, 1/1/2018 1,000,000 993,860
Port Authority of New York and New Jersey:
Port, Airport and Marina Revenue
(Consolidated Bond 116th Series)
4.25%, 10/1/2026 (Insured; FGIC) 1,000,000 873,190
Special Obligation Revenue
(Special Project-JFK International Air Terminal)
5.75%, 12/1/2025 (Insured; MBIA) 4,500,000 4,770,090
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.) 7.55%, 6/1/2007 4,000,000 4,769,400
Scotia Housing Authority, Housing Revenue
(Coburg Village Inc. Project) 6.15%, 7/1/2028 3,000,000 3,028,650
Triborough Bridge and Tunnel Authority,
General Purpose Revenue, Refunding
6.125%, 1/1/2021 3,000,000 3,458,490
Yonkers Industrial Development Agency,
Civic Facilities Revenue (St. Joseph's Hospital)
5.90%, 3/1/2008 3,900,000 3,893,487
U.S. Related--4.9%
Puerto Rico Commonwealth, Refunding (Public
Improvement) 6%, 7/1/2026
(Prerefunded 7/1/2007)a 5,000,000 5,694,250
Puerto Rico Electric Power Authority, Power Revenue
5.929%, 7/1/2023 (Prerefunded 7/1/2002)a 2,000,000 2,148,920
Puerto Rico Highway and Transportation Authority,
Transportation Revenue:
7.49%, 7/1/2038 (Insured; MBIA)b 2,000,000 1,942,240
8.384%, 7/1/2038 (Insured; MBIA)b 500,000 485,560
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Related (continued)
Virgin Islands Public Finance Authority, Revenue,
Refunding 5.50%, 10/1/2014 4,000,000 4,142,280
Total Long-Term Municipal Investments
(cost $271,559,721) 292,879,705
Principal
Short-Term Municipal Investments--.5% Amount ($) Value ($)
- ----------------------------------------------------------------------------------------
New York;
New York City, VRDN
4.25% (Insured; AMBAC, SBPA;
Morgan Guaranty Trust)c
(cost $1,600,000) 1,600,000 1,600,000
- ----------------------------------------------------------------------------------------
Total Investments (cost $273,159,721) 99.9% 294,479,705
Cash and Receivables (Net) .1% 347,494
Net Assets 100% 294,827,199
</TABLE>
10
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond LOC Letter of Credit
Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors
FGIC Financial Guaranty Insurance Company Assurance Insurance Corporation
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase
GO General Obligation Agreement
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
</TABLE>
Summary of Combined Ratings
Fitch or Moody's or Standard & Poor's Value (%)
________________________________________________________________________
AAA Aaa AAA 28.6
AA Aa AA 7.5
A A A 26.8
BBB Baa BBB 26.7
BB Ba BB .5
B B B .5
Not Rated (d) Not Rated (d) Not Rated (d) 9.4
100.0
a Bonds which are prerefunded are collateralized by U.S. Government securities
which are held in escrow and are used to pay principal and interest on the
municipal issue and to retire the bonds in full at the earliest refunding
date.
b Inverse floater security-the interest rate is subject to change periodically.
c Securities payable on demand. Variable interest rate-subject to periodic
change.
d Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
See notes to financial statements.
The Fund 11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Cost Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Assets($):
Investments in securities--See Statement of Investments 273,159,721 294,479,705
Interest receivable 4,301,199
Receivable for shares of Common Stock subscribed 2,000
Prepaid expenses 14,829
298,797,733
- -----------------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 203,892
Due to Distributor 6,138
Cash overdraft due to custodian 47,284
Payable for investment securities purchased 3,617,543
Payable for shares of Common Stock redeemed 35,500
Accrued expenses 60,177
3,970,534
- -----------------------------------------------------------------------------------------
Net Assets ($) 294,827,199
- -----------------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 272,818,001
Accumulated net realized gain (loss) on investments 689,214
Accumulated net unrealized appreciation (depreciation)
of investments--Note 4 21,319,984
- -----------------------------------------------------------------------------------------
Net Assets ($) 294,827,199
- -----------------------------------------------------------------------------------------
Shares Outstanding
(100 million shares of $.01 par value Common Stock authorized) 14,566,448
Net Asset Value, offering and redemption price
per share--Note 3(d) ($) 20.24
</TABLE>
See notes to financial statements.
12
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income ($)
Income
Interest Income 8,086,010
Expenses:
Management fee--Note 3(a) 878,552
Shareholder servicing costs--Note 3(b) 360,274
Professional fees 29,017
Directors' fees and expenses--Note 3(c) 17,755
Custodian fees 14,946
Registration fees 7,365
Prospectus and shareholders' reports 6,613
Loan commitment fees--Note 2 708
Miscellaneous 19,452
Total Expenses 1,334,682
Investment Income--Net 6,751,328
- -----------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments 681,239
Net unrealized appreciation (depreciation) on investments (2,999,785)
Net Realized and Unrealized Gain (Loss) on Investments (2,318,546)
Net Increase in Net Assets Resulting From Operations 4,432,782
</TABLE>
See notes to financial statements.
The Fund 13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income--net 6,751,328 14,578,552
Net realized gain (loss) on investments 681,239 3,851,809
Net unrealized appreciation (depreciation) on investments (2,999,785) 6,042,756
Net Increase (Decrease) in Net Assets
Resulting from Operations 4,432,782 24,473,117
- -----------------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net (6,788,268) (14,541,612)
Net realized gain on investments (3,618,844) (2,945,618)
Total Dividends (10,407,112) (17,487,230)
- -----------------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold 28,749,787 73,000,612
Dividends reinvested 7,675,374 12,761,186
Cost of shares redeemed (28,854,436) (104,474,425)
Increase (Decrease) in Net Assets from Capital Stock
Transactions 7,570,725 (18,712,627)
Total Increase (Decrease) in Net Assets 1,596,395 (11,726,740)
- -----------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 293,230,804 304,957,544
End of Period 294,827,199 293,230,804
Undistributed investment income-net -- 36,940
- -----------------------------------------------------------------------------------------
Capital Share Transactions (Shares):
Shares sold 1,409,039 3,587,659
Shares issued for dividends reinvested 376,008 625,795
Shares redeemed (1,415,013) (5,110,787)
Net Increase (Decrease) in Shares Outstanding 370,034 (897,333)
</TABLE>
See notes to financial statements.
14
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods
indicated. Certain information reflects financial results for a single
Fund share. "Total return" shows how much your investment in the Fund
would have increased (or decreased) during each period, assuming you had
reinvested all dividends and distributions. These figures have been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
----------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value,
beginning of period 20.66 20.20 19.66 19.90 18.73 21.53
Investment Operations:
Investment income--net .47 .96 .98 1.01 1.06 1.14
Net realized and unrealized gain
(loss) on investments (.17) .65 .66 (.10) 1.29 (2.49)
Total from investment operations .30 1.61 1.64 .91 2.35 (1.35)
Distributions:
Dividends from investment
income--net (.47) (.96) (.98) (1.01) (1.06) (1.15)
Dividends from net realized
gain on investments (.25) (.19) (.12) (.14) (.12) (.30)
Total Distributions (.72) (1.15) (1.10) (1.15) (1.18) (1.45)
Net asset value, end of period 20.24 20.66 20.20 19.66 19.90 18.73
- ---------------------------------------------------------------------------------------------
Total Return (%) 3.09(a) 8.14 8.63 4.68 12.98 (6.59)
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average
net assets .90a .90 .91 .91 .86 .76
Ratio of net investment income
to average net assets 4.61a 4.70 4.98 5.12 5.51 5.62
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- -- -- .04 .12
Portfolio Turnover Rate 8.37(b) 32.96 66.32 80.30 65.91 24.56
- ---------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 294,827 293,231 304,958 309,690 322,636 307,996
<FN>
a Annualized.
b Not annualized.
</FN>
</TABLE>
See notes to financial statements.
The Fund 15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General New York Municipal Bond Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a non-diversified
open-end management investment company. The Fund's investment objective is to
maximize current income exempt from Federal, New York State and New York City
income taxes to the extent consistent with the preservation of capital. The
Dreyfus Corporation (the "Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund
Services, Inc. (the "Distributor") is the distributor of the Fund's shares,
which are sold to the public without a sales load.
On April 12, 1999 and April 14, 1999, the Boards of Dreyfus New York Insured Tax
Exempt Bond Fund and the Fund, respectively, approved an Agreement and Plan of
Reorganization whereby, subject to approval by the shareholders of Dreyfus New
York Insured Tax Exempt Bond Fund, the Fund will acquire all the assets, subject
to the liabilities, of Dreyfus New York Insured Tax Exempt Bond Fund, in
exchange for a number of the Fund's shares having an aggregate net asset value
equal to the aggregate net asset value of the shares of Dreyfus New York Insured
Tax Exempt Bond Fund.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
16
<PAGE>
(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. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. 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. Under the terms of the custody
agreement, the Fund receives net earnings credits based on available cash
balances left on deposit.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
Fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the extent that net realized capital gain can be offset by capital
loss carry-
The Fund 17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
overs, 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 Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended April
30, 1999, the Fund did not borrow under the Facility.
NOTE 3--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 value of the
Fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full year the aggregate expenses of the Fund, exclusive of taxes,
brokerage, interest on borrowings, commitment fees and extraordinary expenses,
exceed 11/2% of the value of the Fund's average net assets, the Fund may deduct
from the payments to be made to the Manager, or the Manager will bear such
excess expense. During the period ended April 30, 1999, there was no expense
reimbursement pursuant to the Agreement.
18
<PAGE>
(b) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1 under the
Act, the Fund (a) reimburses the Distributor for payments to certain Service
Agents (a securities dealer, financial institution or other industry
professional) for distributing the Fund's shares and servicing shareholder
accounts ("Servicing") and (b) pays the Manager, Dreyfus Service Corporation, a
wholly-owned subsidiary of the Manager, and any affiliate of either of them
(collectively, "Dreyfus") for advertising and marketing relating to the Fund and
for Servicing, at an aggregate annual rate of .20 of 1% of the value of the
Fund's average daily net assets. Both the Distributor and Dreyfus may pay one or
more Service Agents 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. Both the Distributor and Dreyfus
determine the amounts, if any, to be paid to Service Agents under the Plan and
the basis on which such payments are made. The fees payable under the Plan are
payable without regard to actual expenses incurred. 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 value of the Fund's average daily net
assets for any full fiscal year. During the period ended April 30, 1999, the
Fund was charged $292,851 pursuant to the Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended April 30, 1999, the Fund was charged $48,416 pursuant to the transfer
agency agreement.
The Fund 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A .10% redemption fee is charged and retained by the Fund on shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the Fund Exchange privilege. During the period ended April
30, 1999, redemption fees retained by the Fund amounted to $102.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended April 30, 1999, amounted to
$30,473,090 and $24,333,891, respectively.
At April 30, 1999, accumulated net unrealized appreciation on investments was
$21,319,984, consisting of $21,509,101 gross unrealized appreciation and
$189,117 gross unrealized depreciation.
At April 30, 1999, 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).
20
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FOR MORE INFORMATION
General New York
Municipal Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone:
Call 1-800-645-6561
By mail Wite to:
The Dreyfus Family of Funds
14 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
By E-Mail Send your request
to [email protected]
On the Internet Information
can be viwed online or
downloaded from:
http://www.dreyfus.com
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
c 1999, Dreyfus Service Corporation 959SA994
