DREYFUS CALIFORNIA TAX EXEMPT
MONEY MARKET FUND
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
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. 357AR953
California
Tax Exempt
Money Market Fund
Annual Report
March 31, 1995
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus
California Tax Exempt Money Market Fund. For the period ended March 31, 1995,
the yield provided by your Fund was 2.57%. The effective yield was 2.60%
after taking into account the effect of compounding.* Income dividends of
approximately $.026 per share paid during the period were exempt from Federal
and State of California personal income taxes.**
Our last letter recapped the series of Federal Reserve Board moves
throughout the first half of 1994--moves designed to reach a more neutral
monetary policy stance in response to continued economic expansion. By
November 15, total monetary policy actions taken in 1994 increased the
discount rate from 3.00% to 4.75%. In addition, the Federal Funds rate moved
from 3.00% to 5.50% between February and November of last year. On February 1
of this year, the Fed continued with its policy as it raised both the Federal
Funds and discount rates an additional 50 basis points to 6.00% and 5.25%,
respectively. Yields on municipal money market funds increased in response to
these higher short-term rates.
One of the most significant events occurring in the second half of last
year to affect the short-term municipal market was the bankruptcy filing by
Orange County, California. The uncertainty that resulted caused temporary
market weakness in both the national and state-specific money markets. Your
Fund held no Orange County obligations affected by the filing. However,
prices on short-term municipal notes (especially California issues) declined
as the market awaited additional information about the County's filing. The
prevailing market weakness provided several attractive buying opportunities
in the California market. However, in accordance with our conservative
portfolio strategy and our awareness of shareholder concern, we invested any
available cash in the short end of the market. As market conditions allow, we
will selectively seek out high quality issues, exempt from California taxes,
that provide the portfolio with a high level of diversity and liquidity.
We have included a current Statement of Investments and recent financial
statements for your review and look forward to serving your investment needs
in the future.
Very truly yours,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 13, 1995
New York, N.Y.
*Effective yield is based upon dividends declared daily and reinvested
monthly.
** Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS MARCH 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
City of Alameda, TRAN 4.35%, 7/5/95......................................... $ 7,200,000 $ 7,210,655
Alameda County, MFMR, Refunding, VRDN (Quail Run Apartments)
4%, Series A (LOC; Federal National Mortgage Association) (a,b)......... 2,900,000 2,900,000
Burbank Redevelopment Agency, MFHR, VRDN
4.05%, Series A (LOC; Coast Savings and Loan Association) (a,b)......... 10,400,000 10,400,000
California Department of Water, Water Systems Resource Revenue, VRDN (Central
Valley
Project) 3.45%, Series N-V (LOC; Canadian Imperial Bank of Commerce) (a,b) 7,000,000 7,000,000
California Health Facilities Financing Authority, Revenue, VRDN:
(Catholic Health Care) 3.95%, Series B (Insured; MBIA) (a).............. 7,600,000 7,600,000
(Pooled Loan Program) 4.20%, Series A (LOC; Sanwa Bank) (a,b)........... 6,600,000 6,600,000
(Pooled Program) 4.20% (LOC; Swiss Bank Corp.) (a,b).................... 1,100,000 1,100,000
(Scripps Memorial Hospital) 4.15%, Series A
(Insured; MBIA and LOC; Morgan Guaranty Trust Co.) (a,b).............. 10,400,000 10,400,000
California Housing Finance Agency, Home Mortgage Revenue:
4.30%, Series F-3, 10/2/95 (GIC; Goldman, Sachs and Co.)................ 5,350,000 5,350,000
4.60%, Series E, 2/1/96 (GIC; FGIC Capital Markets)..................... 7,000,000 7,000,000
California Pollution Control Financing Authority, VRDN:
PCR (Wadhan Energy) 4.15% (LOC; Banque Paribas) (a,b)................... 1,500,000 1,500,000
RRR:
(Delano Project) 4.25% (LOC; ABN-Amro Bank) (a,b)..................... 11,600,000 11,600,000
Refunding (Ultrapower-Malaga):
4.30%, Series A (LOC; Bank of America) (a,b)...................... 2,400,000 2,400,000
4.30%, Series B (LOC; Bank of America) (a,b)...................... 5,600,000 5,600,000
California Statewide Communities Development Authority, Revenue,
TRAN 4.44%, Series A, 7/17/95........................................... 16,165,000 16,201,194
City of Fontana, MFMR, VRDN (Oakrest Apartments Project)
4% (Corporate Guaranty; Federal National Mortgage Association) (a)...... 8,000,000 8,000,000
Garden Grove Housing Authority, MFHR, VRDN (Valley View-Senior Villas
Project)
4.35%, Series A (LOC; Wells Fargo Bank) (a,b)........................... 1,600,000 1,600,000
City of Irvine, Apartment Development Revenue, VRDN (San Rafael Apartments
Project)
4.35%, Series A (LOC; Sumitomo Bank) (a,b).............................. 4,800,000 4,800,000
Kern County, COP, VRDN (Public Facilities Project)
3.95% (LOC; Sanwa Bank) (a,b)........................................... 13,355,000 13,355,000
City of Livermore, MFMR, VRDN (Paseo Apartments Project)
4%, Series A (Corporate Guaranty; Federal National Mortgage Association) (a) 9,800,000 9,800,000
City of Los Angeles, Multi-Family Revenue, VRDN (Museum Terrace Apartments
Project)
3.90%, Series H (LOC; Bank of America) (a,b)............................ 7,800,000 7,800,000
Los Angeles County, TRAN 4.50%, Series A, 6/30/95........................... 9,350,000 9,353,177
Los Angeles County Housing Authority, MFHR, VRDN:
(Canyon Country Villas Project) 4.10%, Series H (LOC; Industrial Bank of Japan) (a,b) 8,500,000 8,500,000
(River Parks Apartments Project) 4.10%, Series D (LOC; Dai-Ichi Kangyo Bank) (a,b) 5,000,000 5,000,000
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
Los Angeles County Industrial Development Authority, IDR, Refunding, VRDN
(Kransco Project) 4.25% (LOC; Harris Trust and Savings Bank) (a,b)...... $ 1,725,000 $ 1,725,000
Los Angeles County Local Educational Agencies, COP, TRAN 4.50%, 7/6/95...... 7,000,000 7,013,292
Los Angeles County Metropolitan Transportation Authority,
Sales Tax Revenue, Refunding, VRDN (Prop C-Second Series)
4%, Series A (Insured; MBIA and SBPA; Industrial Bank of Japan) (a)..... 13,000,000 13,000,000
Los Angeles Unified School District, TRAN 4.50%, 7/10/95.................... 12,000,000 12,028,540
City of Oceanside, MFMR, VRDN (Riverview Springs Apartments)
4.45%, Series A (LOC; Bank of Tokyo) (a,b).............................. 3,300,000 3,300,000
City of Pleasant Hill, MFMR, VRDN (Brookside Apartments Project)
4%, Series A (Corporate Guaranty; Federal National Mortgage Association) (a) 5,600,000 5,600,000
City of Richmond, VRDN 4.10% (BPA; Societe Generale) (a).................... 11,400,000 11,400,000
Riverside County, TRAN 4.25%, 6/30/95....................................... 10,000,000 10,015,453
Sacramento County, MFHR, VRDN 4.20%, Series A (LOC; Dai-Ichi Kangyo Bank) (a,b) 7,900,000 7,900,000
Sacramento County Housing Authority, MFHR, VRDN (Stone Creek Apartments
Project)
4.25%, Series L (LOC; First Interstate Bank of California) (a,b)........ 2,400,000 2,400,000
San Bernardino County, Multi-Family Revenue, VRDN (Woodview Apartments
Project)
4%, Series I (LOC; Bank of America) (a,b)............................... 5,300,000 5,300,000
San Diego Housing Authority, MFHR, VRDN (Market Street Square Project)
4.45%, Series G (LOC; Mitsubishi Bank) (a,b)............................ 1,000,000 1,000,000
San Diego Regional Transportation Commission, Sales Tax Revenue, VRDN (Second
Series)
3.90%, Series A (Insured; FGIC) (a)..................................... 5,600,000 5,600,000
San Joaquin County, TRAN 4.75%, 10/18/95.................................... 5,000,000 5,015,781
City of San Jose, MFHR, VRDN (Fox Chase) 4%, Series B (Insured; FGIC) (a)... 7,600,000 7,600,000
City of Santa Clara, Electric Revenue, VRDN
4%, Series B (LOC; National Westminster Bank) (a,b)..................... 3,305,000 3,305,000
Simi Valley, MFHR, Refunding, VRDN (Creekside Village)
4%, Series A (LOC; Bank of America) (a,b)............................... 4,900,000 4,900,000
--------------
TOTAL INVESTMENTS (cost $278,173,092)....................................... $278,173,092
===============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
BPA Bond Purchase Agreement MFHR Multi-Family Housing Revenue
COP Certificate of Participation MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
GIC Guaranteed Investment Contract RRR Resources Recovery Revenue
IDR Industrial Development Revenue SBPA Standby Bond Purchase Agreement
LOC Letter of Credit TRAN Tax and Revenue Anticipation Notes
MBIA Municipal Bond Investors Assurance Insurance Corporation VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1 SP1+/SP1 95.8%
Not Rated (d) Not Rated (d) Not Rated (d) 4.2
--------
100.0%
=========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(b) Secured by letters of credit. At March 31, 1995, 43.8% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks and Government Agencies.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
(e) At March 31, 1995, the Fund had $109,150,000 (38.7% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from housing projects.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $278,173,092
Cash.................................................................... 940,076
Interest receivable..................................................... 2,838,025
Prepaid expenses........................................................ 21,395
--------------
281,972,588
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $117,070
Accrued expenses........................................................ 91,949 209,019
---------- --------------
NET ASSETS ................................................................ $281,763,569
=============
REPRESENTED BY:
Paid-in capital......................................................... $281,929,810
Accumulated net realized (loss) on investments.......................... (166,241)
--------------
NET ASSETS at value applicable to 281,929,810 shares outstanding
(unlimited number of $.01 par value shares of Beneficial
Interest authorized).................................................... $281,763,569
===============
NET ASSET VALUE, offering and redemption price per share
($281,763,569 / 281,929,810 shares)..................................... $1.00
=========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $9,518,720
EXPENSES:
Management fee-Note 2(a).............................................. $1,488,567
Shareholder servicing costs-Note 2(b)................................. 247,323
Professional fees..................................................... 71,865
Custodian fees........................................................ 29,659
Trustees' fees and expenses-Note 2(c)................................. 19,105
Prospectus and shareholders' reports.................................. 16,034
Registration fees..................................................... 11,754
Miscellaneous......................................................... 12,520
------------
TOTAL EXPENSES.................................................... 1,896,827
------------
INVESTMENT INCOME-NET....................................................... 7,621,893
NET REALIZED GAIN ON INVESTMENTS-Note 1(b).................................. 23,305
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $7,645,198
==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
--------------------------------
1994 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 5,862,761 $ 7,621,893
Net realized gain (loss) on investments................................. (50,573) 23,305
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 5,812,188 7,645,198
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (5,862,761) (7,621,893)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 682,605,559 594,800,158
Dividends reinvested.................................................... 4,434,981 4,899,842
Cost of shares redeemed................................................. (683,706,786) (637,586,541)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS.................................. 3,333,754 (37,886,541)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 3,283,181 (37,863,236)
NET ASSETS:
Beginning of year....................................................... 316,343,624 319,626,805
-------------- --------------
End of year............................................................. $319,626,805 $281,763,569
============= ================
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest 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 MARCH 31,
--------------------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995
--------- -------- -------- ------ -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ .9996 $ .9994 $ .9993 $ .9996 $ .9994
--------- ------- --------- ------- ---------
INVESTMENT OPERATIONS:
Investment income-net........................ .0492 .0352 .0235 .0192 .0257
Net realized and unrealized gain (loss) on investments (.0002) (.0001) .0003 (.0002) --
--------- ------- -------- -------- ---------
TOTAL FROM INVESTMENT OPERATIONS........... .0490 .0351 .0238 .0190 .0257
--------- ------- -------- -------- ---------
DISTRIBUTIONS;
Dividends from investment income-net......... (.0492) (.0352) (.0235) (.0192) (.0257)
--------- ------- --------- ------- ---------
Net asset value, end of year................. $ .9994 $ .9993 $ .9996 $ .9994 $ .9994
======= ======== ========== ====== =========
TOTAL INVESTMENT RETURN.......................... 5.04% 3.58% 2.38% 1.94% 2.60%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .61% .66% .65% .65% .64%
Ratio of net investment income to average net assets 4.93% 3.53% 2.34% 1.92% 2.56%
Net Assets, end of year (000's Omitted)...... $351,643 $322,255 $316,344 $319,627 $281,764
See notes to financial statements.
</TABLE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. 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.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date 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. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $166,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1995. If not
applied, $2,000 of the carryover expires in fiscal 1996, $44,000 expires in
fiscal 1998, $7,000 expires in fiscal 1999, $65,000 expires in fiscal 2000,
$21,000 expires in fiscal 2002 and $27,000 expires in fiscal 2003.
At March 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
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 .50 of 1% of the average
daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage, interest
on borrowings, and extraordinary expenses, exceed 1 1\2% of the average value
of the Fund's net assets for any full fiscal year. There was no expense
reimbursement for the year ended March 31, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the year ended
March 31, 1995, the Fund was charged an aggregate of $88,801 pursuant to the
Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives an annual fee of $2,500 and an attendance fee of $250 per meeting.
The Chairman of the Board receives an additional 25% of such compensation and
each director emeritus receives 50% of such compensation.
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus California Tax Exempt Money Market Fund, including the statement of
investments, as of March 31, 1995, 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 March 31, 1995 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 Dreyfus California Tax Exempt Money Market Fund at March 31,
1995, 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.
New York, New York
May 2, 1995
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended March
31, 1995 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are California residents, California personal income
taxes).
