General
New York Municipal
Bond Fund, Inc.
ANNUAL REPORT
October 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
22 Report of Independent Auditors
23 Important Tax Information
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
General New York
Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for General New York Municipal Bond
Fund, Inc., covering the 12-month period from November 1, 1999 through October
31, 2000. 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.
Despite some fluctuations due to changing economic conditions, municipal bond
prices generally rose modestly over the 12-month reporting period. Most of those
gains were achieved after January 2000, with a rally in the municipal bond
market. More recently, most sectors of the municipal bond market also benefited
from slowing economic growth. Additionally, the moderating effects of the
Federal Reserve Board's (the "Fed") interest-rate hikes during the first half of
2000 helped the Fed to achieve its goal of slowing the U.S. economy. Other
factors such as higher energy prices and a weak euro also served to slow
economic growth.
In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above their historical averages,
establishing unrealistic expectations for some investors. We believe that as the
risks of the stock market have become more apparent recently, the relative
stability and income potential of municipal bonds can make them an attractive
investment as part of a well-balanced portfolio.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.
Thank you for investing in General New York Municipal Bond Fund, Inc.
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
2
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did General New York Municipal Bond Fund, Inc. perform during the period?
The fund achieved a 8.36% total return over the 12-month period ended October
31, 2000.(1) In comparison, the Lipper New York Municipal Debt Funds category
average returned 7.91% over the same period.(2)
We attribute the fund's good absolute performance to a relatively strong
investment environment for municipal bonds, particularly over the past 10
months. The market rally was driven primarily by signs of an economic slowdown
in the U.S., as well as positive supply-and-demand factors affecting New York
municipal bonds. The fund's good relative performance is largely the result of
our security selection strategy, which positioned the fund appropriately to
participate in the market rally.
What is the fund's investment approach?
The fund's goal is to seek a high level of federal and New York state and city
tax-exempt income from a diversified portfolio of longer term municipal bonds.
We also manage the fund to achieve a competitive total return, which includes
both income and changes in share price.
In pursuing these objectives, we first attempt to add value by selecting the
tax-exempt bonds that we believe are most likely to provide attractive yields.
These bonds comprise the portfolio's long-term core position. We continually
endeavor to identify maturity ranges that will provide the most favorable
returns.
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 the purchase of higher
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
yielding securities. 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 reporting period began on November 1, 1999, the U.S. and New York
economies continued to grow strongly, raising concerns that long-dormant
inflationary pressures might reemerge. In response, the Federal Reserve Board
(the "Fed") raised short-term interest rates four times between November 1999
and May 2000. Subsequently, signs emerged that the Fed's previous rate hikes
were having the desired effect of slowing the economy. Fewer housing starts,
moderating growth and little change in the core inflation rate suggested that
the Fed's restrictive monetary policies could be near an end.
In addition, the continuing strength of the New York economies helped keep New
York municipal bond yields relatively attractive compared to those of bonds from
other states. New York and its municipalities enjoyed higher tax revenues,
curtailing their need to borrow and resulting in a sharply reduced supply of
securities compared to the same period one year earlier. At the same time,
demand has been strong from New York residents seeking to protect their wealth.
When demand rises and supply falls, prices of existing bonds generally tend to
move higher.
In this environment, we moved from a relatively defensive strategy during 1999's
market decline to a more aggressive stance in early 2000, which positioned the
fund to take advantage of the ensuing market rally as bond yields fell. More
specifically, we sold holdings of bonds that were likely to be redeemed by their
issuers over the near term, which we had held for their ability to cushion
volatility during 1999' s more difficult market conditions. In addition, we
shifted assets from intermediate-term bonds to longer term bonds, effectively
enhancing our ability to lock in prevailing yields.
4
What is the fund's current strategy?
After the market's substantial rally and in light of evidence of a continuing
economic slowdown, we have recently backed off of our relatively aggressive
posture, preferring instead to adopt a more conservative approach in advance of
traditional year-end market pressures. This shift included the sale of bonds
priced at a discount to their face value, which tend to do best during market
rallies but generally lag at other times. We have redeployed some of those
assets to income-oriented bonds in the 20-year maturity range. In addition, our
purchase of New York tobacco bonds, which securitized the state's share of the
tobacco industry litigation settlement, helped improve the fund' s coupon
protection from the effects of early redemptions and bond calls. As volatility
continues in other investment markets, such as equities, we believe that the
municipal bond market should remain firm through year-end.
November 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE
AND LOCAL TAXES FOR NON-NEW YORK RESIDENTS, AND SOME INCOME MAY BE SUBJECT
TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL
GAINS, IF ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER INC.
The Fund 5
FUND PERFORMANCE
Exhibit A
Comparison of change in value of $10,000 investment in General New York
Municipal Bond Fund, Inc. and the Lehman Brothers Municipal Bond Index
--------------------------------------------------------------------------------
Average Annual Total Returns AS OF 10/31/00
1 Year 5 Years 10 Years
--------------------------------------------------------------------------------
FUND 8.36% 5.01% 7.06%
((+)) SOURCE: LIPPER INC.
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, INC. ON 10/31/90 TO A $10,000 INVESTMENT MADE IN THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED.
THE FUND INVESTS PRIMARILY IN NEW YORK MUNICIPAL SECURITIES AND ITS PERFORMANCE
SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES. THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS PRINCIPALLY IN NEW
YORK MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES. THE
LEHMAN BROTHERS MUNICIPAL BOND INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL
RETURN PERFORMANCE BENCHMARK FOR THE LONG-TERM, INVESTMENT-GRADE, GEOGRAPHICALLY
UNRESTRICTED TAX-EXEMPT BOND MARKET, CALCULATED BY USING MUNICIPAL BONDS
SELECTED TO BE REPRESENTATIVE OF THE MUNICIPAL MARKET OVERALL. THESE FACTORS CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
6
STATEMENT OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.9% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW YORK--90.0%
Albany Industrial Development Agency:
Civic Facility Revenue (Sage Colleges Project)
5.30%, 4/1/2029 2,265,000 2,074,310
IDR (Hampton Plaza Project) 6.25%, 3/15/2018 5,600,000 5,515,048
LR:
(New York State Assembly Building Project)
7.75%, 1/1/2010 3,180,000 3,250,723
(New York State Department of Health Building Project)
7.25%, 10/1/2010 1,710,000 1,778,468
Cohoes Industrial Development Agency, IDR (Norlite Corp.
Project) 6.75%, 5/1/2009
(LOC; Dresdner Bank, Prerefunded 5/1/2002) 2,400,000 (a) 2,522,928
Erie County Asset Securitization Corp.
6.50%, 7/15/2032 3,500,000 3,560,305
Franklin County Solid Waste Management Authority, Solid
Waste Systems Revenue 6.125%, 6/1/2009 1,350,000 1,341,212
Huntington Housing Authority, Senior Housing Facility Revenue
(Gurwin Jewish Senior Residences) 6%, 5/1/2029 1,370,000 1,123,592
Islip Resource Recovery Agency, RRR
6.125%, 7/1/2013 (Insured; AMBAC) 1,425,000 1,492,773
Long Island Power Authority, Electric System Revenue
5.25%, 12/1/2026 (Insured; MBIA) 2,000,000 1,900,560
Metropolitan Transportation Authority, Transportation Facilities
Revenue:
4.982%, 7/1/2014 (Insured; FSA) 2,000,000 (b,c) 1,995,580
6%, 7/1/2016 (Insured; FSA) 5,000,000 5,261,150
6.50%, 7/1/2018 (Insured; FGIC) (Prerefunded 7/1/2002) 4,000,000 (a) 4,217,280
4.75%, 7/1/2026 (Insured; FGIC) 2,000,000 1,748,940
Nassau County Industrial Development Agency, Civic Facility
Revenue (Hofstra University Project)
4.75%, 7/1/2028 (Insured; MBIA) 2,000,000 1,736,920
New York City:
6.375%, 8/15/2012 2,670,000 2,839,011
5.875%, 8/15/2013 3,300,000 3,437,676
6%, 8/1/2016 4,000,000 4,151,240
5.875%, 8/15/2016 2,715,000 2,789,771
6%, 5/15/2020 3,000,000 3,128,130
New York City Industrial Development Agency:
Civic Facility Revenue:
(College of Aeronautics Project) 5.50%, 5/1/2028 1,600,000 1,469,792
(YMCA of Greater New York Project) 5.80%, 8/1/2016 1,900,000 1,912,464
The Fund 7
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City Industrial Development Agency (continued):
IDR:
(Brooklyn Navy Yard) 5.75%, 10/1/2036 1,970,000 1,787,558
(LaGuardia Association LP Project) 6%, 11/1/2028 3,790,000 3,249,508
Special Facility Revenue (Terminal One Group
Association Project) 6%, 1/1/2019 3,000,000 3,057,630
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue:
5.50%, 6/15/2023 2,000,000 1,960,560
5.75%, 6/15/2031 (Insured; FGIC) 2,000,000 2,020,460
New York City Transitional Finance Authority,
Future Tax Secured Revenue 6%, 11/15/2013 3,000,000 3,245,250
State of New York 5.70%, 3/15/2013 2,000,000 2,067,420
New York State Dormitory Authority, Revenues:
4201 School Program 5%, 7/1/2018 2,000,000 1,891,000
Consolidated City University Systems:
5.35%, 7/1/2009 (Insured; FGIC) 3,000,000 3,129,720
5.75%, 7/1/2013 10,005,000 10,581,588
5.25%, 7/1/2014 (Insured; FGIC) 2,230,000 2,250,025
5.625%, 7/1/2016 2,500,000 2,586,900
5.75%, 7/1/2018 2,500,000 2,591,375
6.30%, 7/1/2024 (Insured; AMBAC)
(Prerefunded 7/1/2004) 2,800,000 (a) 3,020,416
Department of Health:
5.75%, 7/1/2017 5,240,000 5,358,424
(Roswell Park Cancer)
6.625%, 7/1/2024 (Prerefunded 7/1/2005) 2,700,000 (a) 2,993,004
(Miriam Osborne Memorial Home)
6.875%, 7/1/2019 (Insured; ACA) 1,475,000 1,632,825
(Mount Sinai School of Medicine)
5.15%, 7/1/2024 (Insured MBIA) 5,765,000 5,444,697
Secured Hospital (New York Downtown Hospital)
5.30%, 2/15/2020 (Insured; MBIA) 5,000,000 4,809,750
State University Educational Facilities:
5.875%, 5/15/2017 2,060,000 2,202,284
6%, 5/15/2025 (Prerefunded 5/15/2005) 3,825,000 (a) 4,134,557
5.50%, 5/15/2026 (Insured; MBIA) 6,400,000 6,300,608
New York State Energy Research and Development Authority,
Revenue:
Electric Facilities (Long Island Lighting Co.)
5.30%, 11/1/2023 1,600,000 1,485,504
8
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Energy Research and Development Authority
Revenue (continued):
Facilities (Consolidated Edison Co. of
New York, Inc. Project)
6.375%, 12/1/2027 (Insured; MBIA) 5,000,000 5,093,650
Gas Facilities Revenue (Brooklyn Union Gas Co. Project)
6.368%, 4/1/2020 5,000,000 5,262,900
New York State Environmental Facilities Corp.
PCR (Pilgrim State Sewer Project) 6.30%, 3/15/2016 5,200,000 5,435,248
New York State Housing Finance Agency, Revenue:
Health Facilities 6%, 11/1/2007 6,000,000 6,348,900
(Housing Mortgage Project)
6.10%, 11/1/2015 (Insured; FSA) 1,965,000 2,028,135
(LooseStrife Fields Apartments and Fairway Manor)
6.75%, 11/15/2036 (Insured; FHA) 5,855,000 6,102,257
Service Contract Obligation:
6%, 9/15/2016 8,675,000 8,951,299
5.50%, 9/15/2018 6,000,000 5,915,700
New York State Local Government Assistance Corp.
5.50%, 4/1/2017 (Insured; FSA) 5,000,000 5,144,500
New York State Medical Care Facilities Finance Agency:
Hospital & Nursing Home Insured Mortgage Revenue:
6.125%, 2/15/2015 5,170,000 5,408,285
6.125%, 2/15/2015 (Insured; MBIA) 4,000,000 4,201,840
(Mental Health Services Facilities Improvement)
6.25%, 8/15/2018
(Insured; AMBAC) (Prerefunded 2/15/2002) 2,000,000 (a) 2,086,480
(Sisters of Charity Hospital)
6.625%, 11/1/2018 (Insured; AMBAC) 2,000,000 2,073,740
New York State Mortgage Agency, Homeowner Revenue:
6%, 4/1/2017 2,000,000 2,048,960
6.60%, 10/1/2019 3,500,000 3,625,160
6.05%, 4/1/2026 4,915,000 4,996,736
6.40%, 4/1/2027 3,875,000 4,020,700
5.95%, 4/1/2030 3,490,000 3,503,681
New York State Thruway Authority, Service Contract Revenue,
Local Highway and Bridge:
6%, 4/1/2012 3,195,000 3,381,780
6.25%, 4/1/2014 (Prerefunded 4/1/2005) 2,000,000 (a) 2,172,820
5.75%, 4/1/2016 4,950,000 5,028,804
5.75%, 4/1/2019 2,000,000 2,025,680
The Fund 9
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Urban Development Corp.,
Correctional Facilities Revenue:
5.50%, 1/1/2014 3,000,000 3,089,130
5.50%, 1/1/2014 (Insured; FSA) 3,000,000 3,135,810
5.375%, 1/1/2015 (Insured; FSA) 3,000,000 3,021,030
Newburgh Industrial Development Agency, IDR (Bourne and
Kenney Redevelopment Co.):
5.65%, 8/1/2020 (Guaranteed; SONYMA) 1,000,000 984,130
5.75%, 2/1/2032 (Guaranteed; SONYMA) 1,535,000 1,498,943
Niagara Frontier Transportation Authority, Airport Revenue
(Buffalo Niagara International Airport)
6.125%, 4/1/2014 (Insured; AMBAC) 2,700,000 2,816,046
North Country Development Authority, Solid Waste
Management System Revenue
6%, 5/15/2015 (Insured; FSA) 2,260,000 2,456,552
Onondaga County Industrial Development Agency,
Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024 4,000,000 4,127,520
Orange County Industrial Development Agency,
Life Care Community Revenue
(Glenn Arden Inc. Project) 5.625%, 1/1/2018 1,000,000 823,030
Port Authority of New York and New Jersey:
5.80%, 11/1/2010 (Insured; FGIC) 7,160,000 7,470,601
6.25%, 1/15/2027 (Insured; AMBAC) 2,000,000 2,038,020
4.375%, 10/1/2033 (Insured; FGIC) 2,000,000 1,595,660
Port, Airport and Marina Revenue (Consolidated Bond
116th Series) 4.25%, 10/1/2026 (Insured; FGIC) 3,000,000 2,406,270
Special Obligation Revenue
(Special Project-JFK International Air Terminal)
6.25%, 12/1/2013 (Insured; MBIA) 5,000,000 5,561,550
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.) 7.55%, 6/1/2007 4,000,000 4,541,240
Scotia Housing Authority, Housing Revenue (Coburg Village
Inc. Project) 6.15%, 7/1/2028 3,000,000 2,536,140
Triborough Bridge and Tunnel Authority,
General Purpose Revenue:
6.125%, 1/1/2021 5,000,000 5,464,350
5.50%, 1/1/2030 2,000,000 1,958,580
10
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
TSASC, Inc., Tobacco Flexible Amortization Bonds
6.375%, 7/15/2039 4,000,000 4,002,360
Ulster County Industrial Development Agency, Civic Facility
Revenue (Benedictine Hospital Project) 6.45%, 6/1/2024 1,950,000 1,732,770
Yonkers Industrial Development Agency, Civic Facilities
Revenue (St. Joseph's Hospital) 5.90%, 3/1/2008 3,900,000 3,715,686
U.S. RELATED--8.9%
Children's Trust Fund of Puerto Rico, Revenue
6%, 7/1/2026 2,695,000 2,679,019
Puerto Rico Electric Power Authority, Power Revenue:
5.40%, 7/1/2013 (Insured; MBIA) 3,700,000 3,852,699
5.625%, 7/1/2019 (Insured; FSA) 3,000,000 3,094,470
5.929%, 7/1/2023 (Prerefunded 7/1/2002) 2,000,000 (a) 2,076,140
5.25%, 7/1/2029 (Insured; FSA) 4,500,000 4,379,400
Puerto Rico Highway and Transportation Authority,
Transportation Revenue:
5.75%, 7/1/2019 (Insured; MBIA) 2,420,000 2,528,731
6%, 7/1/2039 6,500,000 6,783,075
Virgin Islands Public Finance Authority, Revenue
5.50%, 10/1/2014 (Insured; ACA) 4,000,000 3,963,400
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $317,927,860) 326,238,543
SHORT-TERM MUNICIPAL INVESTMENT--.4%
------------------------------------------------------------------------------------------------------------------------------------
New York City Municipal Water Finance Authority, Sewer
System Revenue, VRDN
4.55% (SBPA; FGIC Securities Purchase, Inc.)
(cost $1,500,000) 1,500,000 (d) 1,500,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $319,427,860) 99.3% 327,738,543
CASH AND RECEIVABLES (NET) .7% 2,152,217
NET ASSETS 100.0% 329,890,760
The Fund 11
</TABLE>
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
ACA American Capital Access MBIA Municipal Bond Investors
Assurance
Insurance Corporation
AMBAC American Municipal Bond PCR Pollution Control Revenue
Assurance Corporation
FGIC Financial Guaranty Insurance RRR Resources Recovery Revenue
Company
FHA Federal Housing Administration SBPA Standby Bond Purchase
Agreement
FSA Financial Security Assurance SONYMA State of New York Mortgage
Association
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
LR Lease Revenue
Summary of Combined Ratings (Unaudited)
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 46.8
AA Aa AA 10.5
A A A 30.9
BBB Baa BBB 3.3
F1 Mig1 SP1 .5
Not Rated (e) Not Rated (e) Not Rated (e) 8.0
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) 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, 2000, THIS
SECURITY AMOUNTED TO $1,995,580 OR .6% OF NET ASSETS.
(D) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
12
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 319,427,860 327,738,543
Interest receivable 5,468,566
Prepaid expenses 2,567
333,209,676
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 239,394
Cash overdraft due to Custodian 294,479
Payable for investment securities purchased 2,667,969
Accrued expenses 117,074
3,318,916
--------------------------------------------------------------------------------
NET ASSETS ($) 329,890,760
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 323,905,373
Accumulated net realized gain (loss) on investments (2,325,296)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 8,310,683
--------------------------------------------------------------------------------
NET ASSETS ($) 329,890,760
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 17,188,274
NET ASSET VALUE, offering and redemption
price per share--Note 3(d) ($)
19.19
SEE NOTES TO FINANCIAL STATEMENTS
The Fund 13
STATEMENT OF OPERATIONS
Year Ended October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 19,562,052
EXPENSES:
Management fee--Note 3(a) 2,001,089
Shareholder servicing costs--Note 3(b) 851,360
Professional fees 53,907
Directors' fees and expenses--Note 3(c) 39,017
Custodian fees 33,075
Prospectus and shareholders' reports 28,584
Registration fees 6,746
Loan commitment fees--Note 2 1,955
Miscellaneous 11,148
TOTAL EXPENSES 3,026,881
INVESTMENT INCOME--NET 16,535,171
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (2,333,377)
Net unrealized appreciation (depreciation) on investments 12,476,350
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 10,142,973
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 26,678,144
SEE NOTES TO FINANCIAL STATEMENTS.
14
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
---------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 16,535,171 13,931,559
Net realized gain (loss) on investments (2,333,377) 728,064
Net unrealized appreciation (depreciation)
on investments 12,476,350 (28,485,436)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 26,678,144 (13,825,813)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (16,632,253) (13,871,417)
Net realized gain on investments (727,958) (3,618,844)
TOTAL DIVIDENDS (17,360,211) (17,490,261)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 46,362,559 49,456,495
Net assets received in connection with
reorganization--Note 1 -- 104,039,500
Dividends reinvested 12,139,294 12,742,031
Cost of shares redeemed (98,474,560) (67,607,222)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (39,972,707) 98,630,804
TOTAL INCREASE (DECREASE) IN NET ASSETS (30,654,774) 67,314,730
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 360,545,534 293,230,804
END OF PERIOD 329,890,760 360,545,534
Undistributed investment income--net -- 97,082
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,481,701 2,444,560
Shares issued in connection
with reorganizaion--Note 1 -- 5,461,391
Shares issued for dividends reinvested 646,977 638,682
Shares redeemed (5,268,865) (3,412,586)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,140,187) 5,132,047
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 15
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
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>
Year Ended October 31,
--------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 18.65 20.66 20.20 19.66 19.90
Investment Operations:
Investment income--net .94 .94 .96 .98 1.01
Net realized and unrealized
gain (loss) on investments .58 (1.77) .65 .66 (.10)
Total from Investment Operations 1.52 (.83) 1.61 1.64 .91
Distributions:
Dividends from investment income--net (.94) (.93) (.96) (.98) (1.01)
Dividends from net realized
gain on investments (.04) (.25) (.19) (.12) (.14)
Total Distributions (.98) (1.18) (1.15) (1.10) (1.15)
Net asset value, end of period 19.19 18.65 20.66 20.20 19.66
------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 8.36 (4.16) 8.14 8.63 4.68
------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .91 .92 .90 .91 .91
Ratio of net investment income
to average net assets 4.96 4.72 4.70 4.98 5.12
Portfolio Turnover Rate 18.98 32.53 32.96 66.32 80.30
------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 329,891 360,546 293,231 304,958 309,690
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
16
NOTES TO FINANCIAL STATEMENTS
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., which is a wholly-owned
subsidiary of Mellon Financial Corporation. Effective March 22, 2000, Dreyfus
Service Corporation ("DSC"), a wholly owned subsidiary of the Manager, became
the distributor of the fund's shares, which are sold to the public without a
sales charge. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was
the distributor.
On September 23, 1999, pursuant to an Agreement and Plan of Reorganization
previously approved by the fund's Board of Directors, Dreyfus New York Insured
Tax Exempt Bond Fund's assets and liabilities were transferred to the fund in a
tax free exchange of Common Stock of the fund at net asset value. Net assets of
$104,039,500 (including $740,050 net unrealized depreciation on investments)
were exchanged by Dreyfus New York Insured Tax Exempt Bond Fund for 5,461,391
shares of the fund valued at $19.05 per share.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, 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
The Fund 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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
18
the Internal Revenue Code of 1986, as amended (the "Code"). To the extent that
net realized capital gain can be offset by capital loss carryovers, it is the
policy of the fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $2,345,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 2000. If not
applied, the carryover expires in fiscal 2008.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 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
October 31, 2000, 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 fees, interest on borrowings, commitment fees and extraordinary
expenses, exceed 1 1/2% of the value of the fund's average net assets, the
fund may deduct from
The Fund 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the payments to be made to the Manager, or the Manager will bear such excess
expense. During the period ended October 31 2000, there was no expense
reimbursement pursuant to the Agreement.
(b) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1 under the
Act, the fund pays the distributor for distributing the fund's shares, for
servicing shareholder accounts, ("Servicing") and for advertising and marketing
relating to the fund. The Plan provides payments to be made at an aggregate
annual rate of .20 of 1% of the value of the fund's average daily net assets.
Prior to March 22, 2000, Premier Mutual Fund Services, Inc. and not DSC,
received payments under the Plan for distributing fund shares and for servicing
shareholder accounts. The distributor determines 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 October 31, 2000, the fund was charged $669,602 pursuant to the
Plan, of which $441,181 was paid to DSC.
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 October 31, 2000, the fund was charged $111,568 pursuant to the transfer
agency agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $50,000 and an atten-
20
dance fee of $6,500 for each meeting attended and $500 for telephone meetings.
These fees are allocated among the funds in the Fund Group. The Chairman of the
Board receives an additional 25% of such compensation. Prior to April 13, 2000,
each Board member who was not an "affiliated person" as defined in the Act
received from the fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board received an additional 25% of such
compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board
members, if any, receive 50% of the fund's annual retainer fee and per meeting
fee paid at the time the Board member achieves emeritus status.
(d) A .10% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. During the period ended
October 31, 2000, redemption fees charged and retained by the fund amounted to
$346. Prior to June 1, 2000, the fee was chargeable within fifteen days
following the date of issuance of such shares.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended October 31, 2000, amounted to
$62,373,246 and $94,157,616, respectively.
At October 31, 2000, accumulated net unrealized appreciation on investments was
$8,310,683, consisting of $12,589,882 gross unrealized appreciation and
$4,279,199 gross unrealized depreciation.
At October 31, 2000, 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).
The Fund 21
REPORT OF 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, 2000, 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 auditing standards generally accepted
in the United States. 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 and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2000 by correspondence with
the custodian and brokers. 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, 2000, 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 accounting principles generally
accepted in the United States.
[ERNST & YOUNG LLP SIGNATURE LOGO]
New York, New York
December 7, 2000
22
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended October 31, 2000:
--all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax and, for
individuals who are New York residents, New York State and New York City
personal income taxes), and
--the fund hereby designates $.0390 per share as a long-term capital gain
distribution paid on December 9, 1999.
As required by Federal tax law rules, shareholders will receive notification of
their portion of the fund's taxable ordinary dividends (if any) and capital gain
distributions (if any) paid for the 2000 calendar year on Form 1099-DIV which
will be mailed by January 31, 2001.
The Fund 23
NOTES
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 949AR0010
