DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus California
Tax Exempt Money Market Fund. For its semi-annual reporting period ended
September 30, 1996, your Fund provided an annualized yield of 2.77%. Income
dividends exempt from Federal and State of California personal income taxes
of approximately $.014 per share were paid to shareholders.* Reinvesting
these dividends and calculating the effect of compounding resulted in an
annualized effective yield of 2.81%.**
Data over the past few months have largely continued to show a strong
U.S. economy, although there were some signs of softening as September drew
to a close. Real Gross Domestic Product (GDP) rose 2.1% in the first quarter
of 1996 and 4.8% in the second. Housing sales remained relatively robust, and
consumer confidence was high. The big news came on the job front in August,
as hourly wages rose by six cents and unemployment dropped to 5.1%, a new low
for this business cycle. Signs of a slowdown began to appear in the September
job data, which indicated mild declines in nonfarm and manufacturing
payrolls, along with modest gains in private sector employment. Summer retail
sales figures were also somewhat sluggish, new factory orders dropped in
August, and the widely watched Purchasing Managers' Index showed a
deceleration in factory activity.
Nonetheless, it was far from certain that the economy was retrenching.
Once again, inconclusive economic evidence - and conflicting statements from
Federal Reserve Board ("the Fed") officials - gave rise to the market's
favorite pastime: guessing what the Fed would do with short-term interest
rates at its next meeting. Many, if not most, market participants believed
the Fed would raise rates slightly, perhaps by 1/2 or 1/4 of a percentage
point. In fact, the Fed left monetary policy on hold in September, believing
the economy would soon slow enough to dampen any inflationary forces that
might be building.
In the money market nationwide, expectations for a Fed interest-rate hike
led to somewhat higher yields throughout most of the period. Yields had
already been inching up since March, when the first robust employment growth
figures of 1996 were announced. More specifically, California, in the third
year of a modest economic recovery, breathed a sigh of relief as the Fed held
off on its expected boost of short-term interest rates. Such a boost could
have hurt the State's economic comeback. California's economy has enjoyed a
solid improvement due to the steady creation of new jobs, and is now seeing
strong growth in all sectors and all parts of the State. As further evidence
of the comeback, California received a ratings upgrade by Standard & Poor's
Corporation, citing the State's broad economic recovery from years of
recession. Top California finance officials said the upgrade was a major
victory for the State.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
If one were to trace the trend in short-term municipal rates over this
most recent six-month period, the direction would mirror closely the changes
in supply and demand conditions. The six-month cycle reflected: price
weakness/higher rates in April as investors tapped their money market funds
to pay income taxes, market strength in late June/early July as $9 billion in
notes maturities left the market, price weakness and buying opportunities in
late July due to inflationary concerns and the added supply of summer
financings. These technical influences continue to be the overriding factor
affecting municipal money rates.
These conditions, coupled with policies of the Federal Reserve Board,
provide the framework for our investment strategy-both on a day-to-day basis
and looking ahead over a one-year horizon. In late April, the short-term
market exhibited signs of weakness as a result of redemptions due to tax
payments. While this supply/demand imbalance was only temporary, it
translated, for a time, into higher yields on short-term securities. During
this period, the purchase of attractively yielding California-exempt commercial
paper in the 60-to-90-day range allowed us to capture returns similar to
those on one-year issues.
The opportunity for the market to commit to the longer note issues
appeared in July and August. We did, to some extent, participate in these
offerings which resulted in an extension of your Fund's average maturity to
the 70-day range. We will take advantage of any additional buying
opportunities that represent an attractive return as we monitor potential Fed
activity and any other significant changes in the municipal market. All new
investments will continue to meet the high credit quality standards which we
require and to provide a significant level of liquidity, commensurate with
the needs of your Fund.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 15, 1996
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders.
** Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
CALIFORNIA-97.6%
Alameda County, TRAN 4.50%, 6/30/97......................................... $ 4,000,000 $ 4,015,766
Burbank Redevelopment Agency, MFHR, VRDN
3.45%, Series A (LOC; Coast Savings and Loan Association) (a,b)......... 10,400,000 10,400,000
State of California:
Department of Water Resource, Water Revenue, CP
3.55%, Series 1, 12/19/96
(LOC: Canadian Imperial Bank of Commerce and Swiss Bank Corp.) (b).... 6,739,000 6,739,000
Housing Finance Agency, Mortgage Revenue 4%, Series J, 7/24/97 (Insured; FGIC) 8,000,000 8,000,000
RAN 4.50%, Series A, 6/30/97............................................ 6,000,000 6,022,788
California Health Facilities Financing Authority, Revenue, VRDN (Pooled Loan
Program)
3.70%, Series A (LOC; Rabobank Nederland) (a,b)......................... 5,900,000 5,900,000
California Pollution Control Financing Authority:
PCR:
CP Refunding (Pacific Gas and Electric)
3.60%, Series E, 12/9/96 (LOC; Morgan Guaranty Trust Co.) (b)..... 5,000,000 5,000,000
VRDN (Wadham Energy) 3.90%, Series C (LOC; Banque Paribas) (a,b)...... 1,500,000 1,500,000
RRR, VRDN:
(Delano Project) 3.95% (LOC; ABN-Amro Bank) (a,b)..................... 6,400,000 6,400,000
Refunding (Ultrapower-Rocklin) 4%, Series A (LOC; Bank of America) (a,b) 4,000,000 4,000,000
California School Cash Reserve Program Authority, Revenue
4.75%, Series A, 7/2/97 (Insured; MBIA)................................. 8,000,000 8,048,300
California Statewide Communities Development Authority,
Apartment Development Revenue, Refunding, VRDN (Subseries A-1)
3.60% (Corporate Guaranty; FNMA) (a).................................... 7,000,000 7,000,000
City of Fontana, MFMR, VRDN (Oakcrest Apartments Project)
3.70%, Series A (Corporate Guaranty; FNMA) (a).......................... 7,800,000 7,800,000
Garden Grove Housing Authority, MFHR, VRDN (Valley View-Senior Villas
Project)
3.95%, Series A (LOC; Wells Fargo Bank) (a,b)........................... 1,200,000 1,200,000
Golden Empire Schools Financing Authority, VRDN, Refunding (Golden Empire
Project)
3.75%, Series B (LOC: Canadian Imperial Bank of Commerce and
National Westminster Bank) (a,b)........................................ 5,400,000 5,400,000
Kern County, COP, VRDN (Kern Public Facilities Project)
3.65%, Series B (LOC; Union Bank of Switzerland) (a,b).................. 4,555,000 4,555,000
Kings County Housing Authority, MFHR, Refunding, VRDN (Edgewater Isle
Apartments)
3.75%, Series A (LOC; First Interstate Bank of California) (a,b)........ 3,250,000 3,250,000
City of Los Angeles:
Multi-Family Revenue, VRDN (Loans To Lender Program)
3.95%, Series A (LOC; Federal Home Loan Banks) (a,b).................... 1,500,000 1,500,000
TRAN 4.50%, 6/19/97..................................................... 4,000,000 4,014,313
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
Los Angeles County, TRAN
4.50%, Series A, 6/30/97 (LOC: Credit Suisse, Morgan Guaranty Trust Co.,
Union Bank of Switzerland and West Deutsche Landesbank) (b)............. $ 5,000,000 $ 5,023,314
Los Angeles County Metropolitan Transportation Authority, Revenue, CP
3.55%, 10/9/96 (LOC: ABN-Amro Bank, Banque Nationale de Paribas, Canadian
Imperial Bank of Commerce and National Westminster Bank) (b)............ 6,200,000 6,200,000
Los Angeles County Public Works Financing Authority, Lease Revenue, Refunding
4.25%, Series B, 3/1/97 (Insured; MBIA)................................. 3,060,000 3,067,157
Orange County Sanitation District Numbers 1-3, 5-7 and 11, VRDN
3.65% (BPA; Barclays Bank and Insured; AMBAC) (a)....................... 7,000,000 7,000,000
Petaluma Community Development Commission, Multi-Family Revenue, VRDN
(Oakmont of Petaluma) 4%, Series A (LOC; Banque Nationale de Paribas) (a,b) 2,750,000 2,750,000
Riverside County Housing Authority, MFHR, VRDN (Victoria Springs Apartments
Project)
3.85% (LOC; Bank of America) (a,b)...................................... 6,300,000 6,300,000
Sacramento County, MFHR, VRDN 3.90%, Series C (LOC; Dai-Ichi Kangyo Bank) (a,b) 8,000,000 8,000,000
Sacramento County Housing Authority, MFHR, VRDN (Stone Creek Apartments
Project)
3.95%, Series L (LOC; First Interstate Bank of California) (a,b)........ 2,400,000 2,400,000
Sacramento County Sanitation District Finance Authority, Revenue 5%, 12/1/96 2,875,000 2,881,531
Sacramento Municipal Utilities District, Electric Revenue, VRDN
3.55%, Series 1 (LOC; Bayerische Landesbank) (a,b)...................... 5,000,000 5,000,000
San Diego County Water Authority, Regional Transportation Commission, Revenue
4%, Series A, 4/1/97 (Insured; FGIC).................................... 2,700,000 2,706,517
San Diego Housing Authority, MFHR, VRDN (Nobel Court)
3.70% (LOC; Citibank) (a,b)............................................. 3,885,000 3,885,000
San Diego Water Authority, CP:
3.50%, 10/9/96 (LOC; Bayerishe Landesbank) (b).......................... 4,000,000 4,000,000
3.60%, Series 1, 11/12/96 (LOC; Bayerishe Landesbank) (b)............... 3,600,000 3,600,000
City and County of San Francisco Redevelopment Agency, Multi-Family Revenue,
VRDN
(Bayside Village Project)
3.575%, Series D (LOC; Industrial Bank of Japan) (a,b).................. 8,600,000 8,600,000
City of San Jose, MFHR, VRDN (Fox Chase) 3.65%, Series B (Insured; FGIC) (a) 7,600,000 7,600,000
Simi Valley, MFHR, Refunding, VRDN (Creekside Village)
3.55%, Series A (LOC; Bank of America) (a,b)............................ 4,800,000 4,800,000
South Coast Local Educational Agency, TRAN 4.75%, 6/30/97................... 3,000,000 3,014,589
Southern California Public Power Authority, Transmission Project Revenue,
Refunding
VRDN (Southern Transmission)
3.70% (Insured; AMBAC and LOC; Swiss Bank Corp.) (a,b).................. 9,800,000 9,800,000
Vista, MFHR, Refunding, VRDN 3.75%, Series A (LOC; Swiss Bank Corp.) (a,b).. 2,600,000 2,600,000
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
U.S. RELATED-2.4%
Puerto Rico Industrial Tourist Educational, Medical and Environmental Control
Facilities Financing Authority, Higher Education Revenue, VRDN
(Anna G. Mendez University Systems Project)
4% (LOC; Banco Popular) (a,b)........................................... $ 5,000,000 $ 5,000,000
_______
TOTAL INVESTMENTS (cost $204,973,275)....................................... $204,973,275
=======
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
BPA Bond Purchase Agreement MFMR Multi-Family Mortgage Revenue
COP Certificate of Participation PCR Pollution Control Revenue
CP Commercial Paper RAN Revenue Anticipation Notes
FGIC Financial Guaranty Insurance Company RRR Resources Recovery Revenue
FNMA Federal National Mortgage Association TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
<S> <C> <C> <C>
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _____ __________ ____________
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 92.7%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 7.3
____
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 September 30, 1996, 62.8% 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) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) At September 30, 1996, the Fund had $86,085,000 (40.4% of net
assets) invested in securities whose payment of principal and interest is
dependent upon revenues generated from housing projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $204,973,275
Cash.................................................................... 6,931,139
Interest receivable..................................................... 1,095,400
Prepaid expenses........................................................ 879
_______
213,000,693
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 73,473
Accrued expenses........................................................ 35,516 108,989
_____ _______
NET ASSETS.................................................................. $212,891,704
=======
REPRESENTED BY:
Paid-in capital......................................................... $213,082,670
Accumulated net realized (loss) on investments.......................... (190,966)
_______
NET ASSETS at value applicable to 213,082,670 shares outstanding
(unlimited number of $.01 par value shares of Beneficial
Interest authorized).................................................... $212,891,704
=======
NET ASSET VALUE, offering and redemption price per share
($212,891,704 / 213,082,670 shares)..................................... $1.00
=======
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNUAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 4,030,799
EXPENSES:
Management fee-Note 2(a).............................................. $591,039
Shareholder servicing costs-Note 2(b)................................. 114,309
Trustees' fees and expenses-Note 2(c)................................. 15,155
Custodian fees........................................................ 12,949
Registration fees..................................................... 7,053
Prospectus and shareholders' reports.................................. 6,362
Professional fees..................................................... 1,642
Miscellaneous......................................................... 6,580
_____
TOTAL EXPENSES.................................................... 755,089
_______
INVESTMENT INCOME-NET....................................................... 3,275,710
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (15,344)
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 3,260,366
=======
See independent accountants' review report and notes to financial statements.
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1996
1996 (UNAUDITED)
________ ___________
OPERATIONS:
Investment income-net................................................ $ 8,097,042 $ 3,275,710
Net realized (loss) on investments................................... (9,381) (15,344)
________ ________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 8,087,661 3,260,366
________ ________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (8,097,042) (3,275,710)
________ ________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 503,720,818 242,018,464
Dividends reinvested................................................. 4,960,945 2,041,926
Cost of shares redeemed.............................................. (537,451,138) (284,138,155)
________ ________
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.... (28,769,375) (40,077,765)
________ ________
TOTAL (DECREASE) IN NET ASSETS................................. (28,778,756) (40,093,109)
NET ASSETS:
Beginning of period.................................................. 281,763,569 252,984,813
________ ________
End of period........................................................ $ 252,984,813 $ 212,891,704
======== ========
See independent accountants' review report and 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 period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1996
__________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996 (UNAUDITED)
___ ___ ___ ___ ___ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
___ ___ ___ ___ ___ ___
INVESTMENT OPERATIONS;
Investment income-net................ .035 .024 .019 .026 .030 .014
___ ___ ___ ___ ___ ___
DISTRIBUTIONS;
Dividends from investment income-net. (.035) (.024) (.019) (.026) (.030) (.014)
___ ___ ___ ___ ___ ___
Net asset value, end of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=== === === === === ===
TOTAL INVESTMENT RETURN.................. 3.58% 2.38% 1.94% 2.60% 3.07% 2.79%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . .66% .65% .65% .64% .64% .64%*
Ratio of net investment income to
average net assets................. 3.53% 2.34% 1.92% 2.56% 3.03% 2.77%*
Net Assets, end of period (000's Omitted) $322,255 $316,344 $319,627 $281,764 $252,985 $212,892
*Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus California Tax Exempt Money Market Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a diversified
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income exempt from Federal
and State of California income taxes as is consistent with the preservation
of capital and the maintenance of liquidity. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. acts as
the distributor of the Fund's shares, which are sold to the public without a
sales charge.
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 per share of $1.00.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(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. Cost of investments represents amortized cost.
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, if any, 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 $174,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1996. If not
applied, $44,000 of the carryover expires in fiscal 1998, $7,000 expires in
fiscal 1999, $65,000 expires in fiscal 2000, $21,000 expires in fiscal 2002,
$27,000 expires in fiscal 2003 and $10,000 expires in fiscal 2004.
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At September 30, 1996, 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).
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 value
of the Fund's average daily net assets and is payable monthly.
The Agreement provides that if in any full fiscal year the aggregate
expenses of the Fund, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed 1-1\2% of the value of the Fund's average
daily net assets for any full fiscal year, the Fund may deduct from payments
to be made to the Manager, or the Manager will bear such excess expense.
There was no expense reimbursement for the six months ended September 30,
1996.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining 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 six months ended September 30, 1996, the Fund was charged an
aggregate of $75,905 pursuant to the Shareholder Services 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. Such
compensation amounted to $32,064 during the six months ended September 30,
1996.
(C) Each trustee 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 $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus California Tax Exempt Money Market Fund, including the statement of
investments, as of September 30, 1996, and the related statements of
operations and the changes in net assets and financial highlights for the six
month period ended September 30, 1996. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
March 31, 1996 and financial highlights for each of the five years in the
period ended March 31, 1996 and in our report dated April 30, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
November 1, 1996
[Dreyfus lion "d" logo]
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
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 357SA969
[Dreyfus logo]
California
Tax Exempt
Money Market Fund
Semi-Annual
Report
September 30, 1996
