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 annual reporting period ended March 31,
1996, your Fund provided an annualized yield of 3.02%. Income dividends
exempt from Federal and State of California personal income taxes of
approximately $.030 per share were paid to shareholders.* Reinvesting these
dividends and calculating the effect of compounding resulted in an annualized
effective yield of 3.07%.**
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. On the consumer level, retail sales were marginally stronger although
consumer installment debt remained at near-record proportions as a percentage
of disposable income. Presently, there are indications that the labor market
may be tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a
possibility well worth noting since worker wages are emerging as a political
issue in this year's election. These favorable economic reports caused
long-term interest rates to rise sharply during the last quarter.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed reduced the level of short-term interest rates three times
to spur the sluggish economy, the last reduction occurring on January 31,
1996. On that date, the Fed eased the Federal Funds rate to its present level
of 5.25%.
MARKET ENVIRONMENT
The short-term municipal market certainly is influenced by any Federal
Reserve Board decision to alter interest rates; however, market technicals
(i.e. supply/demand) were the overriding factor affecting the yields that
prevailed throughout this period. By Fall, rates on short-term issues had
settled into a trading range. A steady interchange of variable rate demand
notes (VRDNs) between corporate holders and municipal money market funds kept
rates on these securities attractive, which resulted in an inverted yield
curve (rates on shorter maturities were higher than rates on longer issues)
during most of the season.
Despite the Fed's easing move in early December, its second rate
reduction of the year, rates on VRDNs trended even higher toward year-end.
That was a seasonal occurrence (as prior years have demonstrated) which
reverses dramatically in January as cash returns to the money market arena.
The "January effect" leads to a high increase in demand for VRDNs and,
accordingly, a substantial yield drop on these issues as well. The unusually
large asset inflows abated by late January, thereby lessening the high demand
for VRDNs and serving to restore stability to short-term yields.
Technical factors should once again play a significant role in the
short-term municipal market since tax-free money market funds usually
experience an outflow of assets as individuals redeem shares to meet tax
payment needs. The decreased demand for short-term securities that follows
often places temporary upward pressure on VRDN yields. A high percentage of
these redemptions are experienced in national money market funds. Typically,
state-specific money market fund cash flows remain relatively stable
throughout the period. Due to the fact that there is no need to sell higher
yielding demand notes to meet redemption needs, state-specific funds such as
yours derive a temporary benefit of higher yields on VRDNs from this seasonal
occurrence.
PORTFOLIO ACTIVITY
With the inverted yield curve, daily and weekly demand notes yielded
moderately more than both commercial paper and longer-term notes through most
of the period. Our investment strategy in late 1995 involved lengthening the
portfolio's maturity, when possible, in order to lock in rates that we felt
would outperform variable rate notes early in 1996.
The commercial paper and one-year note markets provided the primary means
for us to extend. However, our success in achieving the desired average
maturity remained limited due to a scarcity of high quality California exempt
issues from which to choose. As a result, your Portfolio's current average
maturity still leaves room to extend should a change in market or supply
conditions warrant.
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
April 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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DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS MARCH 31, 1996
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
------------- ------------
<S> <C> <C>
CALIFORNIA-89.2%
Burbank Redevelopment Agency, MFHR, VRDN
3.15%, Series A (LOC; Coast Savings and Loan Association) (a,b)..................... $ 10,400,000 $ 10,400,000
California Health Facilities Financing Authority, Revenue, VRDN:
(Pooled Loan Program) 3.10%, Series A (LOC; Rabobank Nederland) (a,b)............... 6,100,000 6,100,000
(Pooled Program) 3.10% (LOC; Swiss Bank Corp.) (a,b)................................ 1,100,000 1,100,000
(Scripps Memorial Hospital)
3.10%, Series A (Insured; MBIA and LOC; Morgan Guaranty Trust Co.) (a,b).......... 4,700,000 4,700,000
California Pollution Control Financing Authority:
PCR:
CP:
Refunding (Pacific Gas and Electric):
3.10%, Series F, 4/16/96 (LOC; Banque Nationale de Paris) (b)............... 10,000,000 10,000,000
3.05%, Series A, 4/3/96 (LOC; Swiss Bank Corp.) (b)......................... 8,000,000 8,000,000
(San Diego Gas and Electric)
4%, Series A, 9/1/96 (Corporate Guaranty; San Diego Gas and Electric)....... 4,000,000 4,000,000
(Southern California Edison)
3%, 5/16/96 (Corporate Guaranty; Southern California Edison)................ 3,000,000 3,000,000
VRDN (Wadham Energy) 3.35%, Series C (LOC; Banque Paribas) (a,b).............. 1,500,000 1,500,000
RRR, VRDN:
(Delano Project) 3.50% (LOC; ABN-Amro Bank) (a,b)................................. 8,400,000 8,400,000
Refunding (Ultrapower-Rocklin) 3.55%, Series A (LOC; Bank of America) (a,b)....... 7,000,000 7,000,000
California Statewide Communities Development Authority,
Apartment Development Revenue, Refunding, VRDN (Subseries A-1)
2.85% (Corporate Guaranty; FNMA) (a)................................................ 7,000,000 7,000,000
Contra Costa County, TRAN 4.50%, 7/3/96................................................. 11,000,000 11,025,223
City of Fontana, MFMR, VRDN (Oakcrest Apartments Project)
3.15%, Series A (Corporate Guaranty; FNMA) (a)...................................... 7,800,000 7,800,000
Garden Grove Housing Authority, MFHR, VRDN (Valley View-Senior Villas Project)
3.45%, Series A (LOC; Wells Fargo Bank) (a,b)....................................... 1,200,000 1,200,000
Golden Empire Schools Financing Authority, VRDN, Refunding:
(Golden Empire Project) 3.15%, Series B (LOC: Canadian Imperial Bank
of Commerce and National Westminster Bank) (a,b).................................. 5,400,000 5,400,000
(Kern High School District) 3.15%, Series A (LOC; National Westminster Bank) (a,b).. 7,400,000 7,400,000
Kern County, COP, VRDN (Kern Public Facilities Project)
3.05%, Series B (LOC; Union Bank of Switzerland) (a,b).............................. 7,955,000 7,955,000
Kings County Housing Authority, MFHR, Refunding, VRDN
(Edgewater Isle Apartments)
2.95%, 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)
3.55%, Series A (LOC; Federal Home Loan Banks) (a,b)................................ 1,500,000 1,500,000
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- ------------
CALIFORNIA (CONTINUED)
Los Angeles County, TRAN
4.50%, Series A, 7/1/96 (LOC: Credit Suisse, Morgan Guaranty Trust Co.,
Union Bank of Switzerland and West Deutsche Landesbank) (b)......................... $11,800,000 $ 11,822,529
Los Angeles County Industrial Development Authority, IDR, Refunding, VRDN
(Kransco Project) 3.45% (LOC; Harris Trust and Savings Bank) (a,b).................. 1,650,000 1,650,000
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, CP
(Prop C-Second Series) 3.45%, 4/8/96................................................ 3,100,000 3,100,000
Los Angeles Unified School District, TRAN 4.50%, 7/3/96................................. 11,000,000 11,025,586
City of Pleasant Hill, MFMR, VRDN (Brookside Apartments Project)
3.15%, Series A (Corporate Guaranty; FNMA) (a)...................................... 2,600,000 2,600,000
Riverside County Housing Authority, MFHR, VRDN
(Victoria Springs Apartments Project)
3.40% (LOC; Bank of America) (a,b).................................................. 6,300,000 6,300,000
Sacramento County, MFHR, VRDN
3.45%, 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)
3.45%, 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 2,901,122
San Bernardino County, Multi-Family Revenue, VRDN (Woodview Apartments Project)
3.15%, Series I (LOC; Bank of America) (a,b)........................................ 5,300,000 5,300,000
San Diego Housing Authority, MFHR, VRDN (Nobel Court)
3.05% (LOC; Citibank) (a,b)......................................................... 4,000,000 4,000,000
San Diego Regional Transportation Commission, Revenue
4%, Series A, 4/1/97 (Insured; FGIC)................................................ 2,700,000 2,713,070
San Diego Water Authority, CP:
2.90%, Series 1, 4/8/96 (LOC; Bayerishe Landesbank) (b)............................. 4,000,000 4,000,000
3.10%, Series 1, 5/10/96 (LOC; Bayerishe Landesbank) (b)............................ 3,600,000 3,600,000
City of San Jose, MFHR, VRDN (Fox Chase) 3.25%, Series B (Insured; FGIC) (a)............ 7,600,000 7,600,000
San Jose-Santa Clara Water Financing Authority, Sewer Revenue, VRDN
2.95%, Series B (Insured; FGIC) (a)................................................. 3,800,000 3,800,000
City of Santa Clara, Electric Revenue, VRDN
3.10%, Series B (LOC; National Westminster Bank) (a,b).............................. 3,105,000 3,105,000
Simi Valley, MFHR, Refunding, VRDN (Creekside Village)
3%, Series A (LOC; Bank of America) (a,b)........................................... 4,900,000 4,900,000
South Coast Local Educational Agency, Pooled Transportation Notes 5%, 8/14/96........... 7,000,000 7,012,350
Turlock Irrigation District, COP, VRDN (Transmission Project)
2.80%, Series A (LOC; Societe Generale) (a,b)....................................... 3,000,000 3,000,000
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- ------------
CALIFORNIA (CONTINUED)
Tustin Improvement Bond Act of 1915, Reassessment District No. 95-2, VRDN
3.55%, Series A (LOC; Kredietbank) (a,b)............................................ $ 1,000,000 $ 1,000,000
Vista, MFHR, Refunding, VRDN 3.45%, Series A (LOC; Swiss Bank Corp.) (a,b).............. 2,600,000 2,600,000
Western Riverside County Regional Wastewater Authority, VRDN
2.80% (LOC; National Westminster Bank) (a,b)........................................ 2,100,000 2,100,000
U.S. RELATED-10.8%
Commonwealth of Puerto Rico Government Development Bank, CP:
3.20%, 4/8/96....................................................................... 7,250,000 7,250,000
3.05%, 5/10/96...................................................................... 6,500,000 6,500,000
3.10%, 5/14/96...................................................................... 5,000,000 5,000,000
3.05%, 5/22/96...................................................................... 8,000,000 8,000,000
------------
TOTAL INVESTMENTS (cost $248,009,880)................................................... $248,009,880
============
</TABLE>
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<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
COP Certificate of Participation MFHR Multi-Family Housing Revenue
CP Commercial Paper MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
IDR Industrial Development Revenue 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 (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
<S> <C> <S> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 94.4%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 5.6
--------
100.0%
========
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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, 1996, 58.4% 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 March 31, 1996, the Fund had $74,850,000 (29.6% 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, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)....................................... $248,009,880
Cash................................................................................ 3,161,865
Interest receivable................................................................. 1 ,994,621
Prepaid expenses.................................................................... 17,446
------------
253,183,812
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries..................................... $104,129
Accrued expenses and other liabilities.............................................. 94,870 198,999
-------- ------------
NET ASSETS ............................................................................ $252,984,813
============
REPRESENTED BY:
Paid-in capital..................................................................... $253,160,435
Accumulated net realized (loss) on investments...................................... (175,622)
------------
NET ASSETS at value applicable to 253,160,435 shares outstanding
(unlimited number of $.01 par value shares of Beneficial
Interest authorized)................................................................ $252,984,813
============
NET ASSET VALUE, offering and redemption price per share
($252,984,813 / 253,160,435 shares)................................................. $1.00
=====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME..................................................................... $9,798,479
EXPENSES:
Management fee-Note 2(a).......................................................... $1,336,414
Shareholder servicing costs-Note 2(b)............................................. 199,644
Professional fees................................................................. 53,655
Trustees' fees and expenses-Note 2(c)............................................. 32,370
Custodian fees.................................................................... 29,720
Registration fees................................................................. 26,449
Prospectus and shareholders' reports.............................................. 13,793
Miscellaneous..................................................................... 9,392
---------
TOTAL EXPENSES................................................................ 1,701,437
----------
INVESTMENT INCOME-NET................................................................... 8,097,042
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)............................................ (9,381)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................... $8,087,661
==========
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,
----------------------------
1995 1996
------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................................... $ 7,621,893 $ 8,097,042
Net realized gain (loss) on investments............................................. 23,305 (9,381)
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. 7,645,198 8,087,661
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................................... (7,621,893) (8,097,042)
------------- -------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold....................................................... 594,800,158 503,720,818
Dividends reinvested................................................................ 4,899,842 4,960,945
Cost of shares redeemed............................................................. (637,586,541) (537,451,138)
------------- -------------
(DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS.............................................. (37,886,541) (28,769,375)
------------- -------------
TOTAL (DECREASE) IN NET ASSETS.............................................. (37,863,236) (28,778,756)
NET ASSETS:
Beginning of year................................................................... 319,626,805 281,763,569
------------- -------------
End of year......................................................................... $ 281,763,569 $ 252,984,813
============= =============
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: 1992 1993 1994 1995 1996
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____
INVESTMENT OPERATIONS;
Investment income-net........................ .035 .024 .019 .026 .030
____ ____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net......... (.035) (.024) (.019) (.026) (.030)
____ ____ ____ ____ ____
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 3.58% 2.38% 1.94% 2.60% 3.07%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .66% .65% .65% .64% .64%
Ratio of net investment income to average
net assets................................. 3.53% 2.34% 1.92% 2.56% 3.03%
Net Assets, end of year (000's Omitted)...... $322,255 $316,344 $319,627 $281,764 $252,985
See notes to financial statements.
</TABLE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
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. (the
"Distributor") 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 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.
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
At March 31, 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 for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage, interest
on borrowings and extraordinary expenses, exceed 11\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, 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 year ended March 31, 1996, the Fund was charged an aggregate of
$77,175 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, 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 $22,320 for the period from
December 1, 1995 through March 31, 1996.
(C) Each trustee who is not an "affiliated person" as defines 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
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, 1996, 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, 1996 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,
1996, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
April 30, 1996
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
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, 1996 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are California residents, California personal income
taxes).
[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.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 357AR963
[Dreyfus logo]
California
Tax Exempt
Money Market Fund
Annual Report
March 31, 1996
