DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for the Dreyfus California Tax
Exempt Money Market Fund for its fiscal year ended March 31, 1997. Your Fund
produced a yield of 2.77% and, after taking into account the effect of
compounding, the effective yield was 2.80%.*
THE ECONOMY
The economy continued to gain momentum during the past several months,
with virtually every new economic report containing fresh evidence of robust
growth. Overall, the Commerce Department pegged real economic growth at 3.8
percent for the October through December period. Housing showed particular
strength, as home resales jumped a full 9 percent during February and sales
of new homes surpassed an 800,000 annual rate for two consecutive months _
January and February _ for the first time in more than a decade. Sales of
manufactured goods also quickened, as new orders for factory durables and
consumer confidence improved. Meanwhile, the number of people receiving
jobless benefits plunged in March.
Against this steady economic advance, rates rose on two fronts. The
Federal Reserve Board took action at its March 25 meeting, raising the
Federal Funds rate by 25 basis points. Many analysts and financial market
participants interpreted this preemptive strike against inflation as just the
first, anticipating another interest-rate increase at the Fed's May meeting.
However, despite lower unemployment and increased help wanted advertising,
higher inflation is not yet evident. Still, advance indicators of inflation
are rising and market participants and Fed policymakers remain alert for any
sign that inflation is trending upward. Meanwhile, short-term rates continued
to move up gradually in the money markets over the period. The market widely
anticipated the Fed's move in March, and has already begun adjusting prices
in anticipation of the next rate increase.
California's economy continues its solid improvement following long years
of recession. The State's unemployment rate has fallen further and, at 6.5%,
has been gradually approaching the national level; the UCLA-Anderson Business
Forecasting Project now predicts that in 1999 it will drop to 5.5%. Consumer
optimism has risen; a recent Field Poll finds that Californians increasingly
believe the State is enjoying good times, and nearly half of those surveyed
believe themselves better off financially than a year ago.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
The economic picture is an important component of our portfolio
strategy. Market expectations can also affect the short-term municipal
market, however, as was the case in this most recent period. For example, the
anticipation of Federal Reserve activity prior to the Presidential election
this past November left the market jittery, while the lack of Fed action in
the weeks following the election helped settle the market into a trading
range. Various other influences which affect the municipal market (most
specifically supply and demand) can lead us to adjust our strategy, and that
could result in a portfolio structure and/or average maturity which may not
appear to coincide exactly with interest rate moves, economic conditions, or
forecasts. In this way, one might have expected that your Fund's average
maturity, during this most recent period, would be relatively short in
expectation of higher rates. However, our strategy was to attempt to extend
out in the 50-60 day range_due to the expectation of limited availability of
high quality municipal note issues in early 1997. Unfortunately, a full
execution of this strategy was hampered, once again, by lack of supply of
attractive high quality California issues. We did utilize the commercial
paper market to extend out to a lesser degree, which provided your Fund with
additional diversification.
In the coming months, we expect additional technical market situations to
occur, such as increased redemptions in April due to income tax payments and
the maturing of significant note issues in June, and clearly we would adjust
the
Fund's composition to respond to such situations. We will continue to commit
to those issues which meet our high quality investment guidelines and which
provide the appropriate level of liquidity for your Fund's needs.
Additionally, we will continue to monitor those conditions which affect our
marketplace and adjust our investment strategy where necessary to pursue
competitive returns.
Included in this report are detailed statements about your Fund's
holdings and its financial condition. We hope you find them informative.
Please know that we greatly appreciate 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 21, 1997
New York, N.Y.
*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, 1997
Principal
Tax Exempt Investments_100.0% Amount Value
_______ _______
<S> <C> <C>
California_92.3%
Alameda County, TRAN 4.50%, 6/30/97......................................... $ 4,000,000 $ 4,005,217
Burbank Redevelopment Agency, Multi-Family Revenue, VRDN (Issue A)
3.10%, Series A (LOC; Coast Savings and Loan Association) (a,b)........... 10,400,000 10,400,000
State of California:
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.............................................. 5,000,000 5,011,468
VRDN 3.40%, Series C-5 (LOC: Bank of America, Bank of Nova Scotia,
Commerzbank
and National Westminster Bank) (a,b).................................... 3,200,000 3,200,000
California Health Facilities Financing Authority, Revenue, VRDN:
(Catholic Health Care)
3.20%, Series C (Insured; MBIA and Liquidity; Morgan Guaranty Trust Co.) (a) 5,500,000 5,500,000
(Pooled Loan Program) 3.30%, Series A (LOC; Rabobank Nederland) (a,b)..... 5,600,000 5,600,000
California Housing Finance Agency, Single-Family Mortgage Purchase Revenue
3.70%, 4/1/98 (LOC; Morgan Stanley and Co.) (b)........................... 5,500,000 5,500,000
California Pollution Control Financing Authority:
PCR, Refunding:
CP (Pacific Gas and Electric)
3.15%, Series A, 5/13/97 (LOC; Morgan Guaranty Trust Co.) (b)......... 5,000,000 5,000,000
VRDN:
(Pacific Gas and Electric) 3.55%, Series C (LOC; Bank of America) (a,b) 1,800,000 1,800,000
(Wadham Energy) 3.45%, Series C (LOC; Banque Paribas) (a,b)........... 1,500,000 1,500,000
RRR, VRDN:
(Delano Project) 3.70% (LOC; ABN-Amro Bank) (a,b)....................... 1,700,000 1,700,000
(Honey Lake Power Project) 3.70% (LOC; Banque Nationale de Paribas) (a,b) 3,600,000 3,600,000
Refunding (Ultrapower-Rocklin) 3.70%, Series A (LOC; Bank of America) (a,b) 4,000,000 4,000,000
California Public Capital Improvements Financing Authority, Revenue (Pooled
Project)
3.55%, Series C, 6/16/97 (LOC; National Westminster Bank) (b)............. 3,000,000 3,000,000
California School Cash Reserve Program Authority, Revenue:
4.75%, Series A, 7/2/97 (Insured; MBIA)................................... 8,000,000 8,016,218
(Pooled Bonds) 4.50%, Series B, 12/19/97 (Insured; MBIA).................. 5,000,000 5,031,171
California Statewide Communities Development Authority, Revenue, COP, VRDN:
(Northern California Retired Officers) 3.55% (LOC; Dresdner Bank) (a,b)... 6,200,000 6,200,000
(Sutter Health Obligation Group)
3.55% (BPA; Industrial Bank of Japan and Insured; AMBAC) (a)............ 3,500,000 3,500,000
Garden Grove Housing Authority, MFHR, VRDN (Valley View-Senior Villas
Project)
3.40%, Series A (LOC; Wells Fargo Bank) (a,b)............................. 1,200,000 1,200,000
Golden Empire Schools Financing Authority, Refunding, VRDN (Golden Empire
Project)
3.35%, Series B (LOC: Canadian Imperial Bank of Commerce and
National Westminster Bank) (a,b).......................................... 5,400,000 5,400,000
Irvine Ranch Water District, COP, VRDN (Capital Improvement Project)
3.45% (LOC; Toronto-Dominion Bank) (a,b).................................. 7,000,000 7,000,000
Kern County, COP, VRDN (Kern Public Facilities Project)
3.20%, Series B (LOC; Union Bank of Switzerland) (a,b).................... 4,555,000 4,555,000
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Tax Exempt Investments (continued) Amount Value
_______ _______
California (continued)
Kings County Housing Authority, MFHR, Refunding, VRDN (Edgewater Isle Apartments)
3.25%, Series A (LOC; First Interstate Bank of California) (a,b).......... 3,250,000 $ 3,250,000
City of Los Angeles:
TRAN 4.50%, 6/19/97....................................................... 4,000,000 4,004,332
Multi-Family Revenue, VRDN (Loans To Lender Program)
3.70%, Series A (LOC; Federal Home Loan Banks) (a,b).................... 3,500,000 3,500,000
Metropolitan Water District of Southern California, CP
3.15%, Series B, 5/16/97 (LOC; Westdeutsche Landesbank) (b)............... 5,000,000 5,000,000
City of Ontario Redevelopment Agency, Revenue, VRDN (Mission Oaks)
3.50%, Series A (LOC; Union Bank of Switzerland) (a,b).................... 2,000,000 2,000,000
Orange County, Sanitation District Numbers 1-3, 5-7 and 11, VRDN
3.20% (BPA; Barclays Bank and Insured; AMBAC) (a)......................... 8,000,000 8,000,000
Petaluma Community Development Commission, Multi-Family Revenue, VRDN
(Oakmont of Petaluma) 3.70%, 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)
3.45% (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)
3.40%, Series L (LOC; First Interstate Bank of California) (a,b).......... 2,400,000 2,400,000
San Diego County, TRAN 4.375%, 9/30/97 (LOC: Canadian Imperial Bank of
Commerce,
Commerzbank and Nova Scotia Trust Co.) (b)................................ 5,000,000 5,017,510
San Diego Housing Authority, MFHR, VRDN (Nobel Court)
3.25% (LOC; Citibank) (a,b)............................................... 3,785,000 3,785,000
San Diego Regional Transportation Commission, Sales Tax Revenue
(Second Seniors Sales Tax)
4%, Series A, 4/1/97 (Insured; FGIC)...................................... 2,700,000 2,700,000
San Diego Water Authority, CP
3.35%, Series 1, 5/20/97 (LOC; Bayerishe Landesbank) (b).................. 4,000,000 4,000,000
City and County of San Francisco Redevelopment Agency, Multi-Family Revenue,
VRDN
(Bayside Village Project)
3.40%, Series D (LOC; Industrial Bank of Japan) (a,b)..................... 8,600,000 8,600,000
City of San Jose, MFHR, VRDN (Fox Chase) 3.20%, Series B (Insured; FGIC) (a) 7,600,000 7,600,000
Santa Clara County Transit District, Refunding, VRDN
3.60%, Series A (LOC; Sumitomo Bank) (a,b)................................ 4,000,000 4,000,000
Simi Valley, MFHR, Refunding, VRDN (Creekside Village)
3.20%, Series A (LOC; Bank of America) (a,b).............................. 4,675,000 4,675,000
South Coast Local Educational Agency, TRAN 4.75%, 6/30/97................... 3,000,000 3,004,827
Southern California Public Power Authority, Transmission Project Revenue,
Refunding
VRDN (Southern Transmission) 3.20% (Insured; AMBAC and Liquidity; Swiss
Bank Corp.) (a)............................................................. 9,800,000 9,800,000
Vista, MFHR, Refunding, VRDN 3.35%, 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) MARCH 31, 1997
Principal
Tax Exempt Investments (continued) Amount Value
_______ _______
U.S. Related_7.7%
Commonwealth of Puerto Rico:
Government Development Bank, CP:
3.25%, 5/21/97.......................................................... $ 4,600,000 $ 4,600,000
3.25%, 6/12/97.......................................................... 5,000,000 5,000,000
TRAN 4%, Series A, 7/30/97................................................ 8,000,000 8,014,343
_______
TOTAL INVESTMENTS (cost $227,320,086)....................................... $227,320,086
=======
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Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
BPA Bond Purchase Agreement PCR Pollution Control Revenue
COP Certificate of Participation RAN Revenue Anticipation Notes
CP Commercial Paper RRR Resources Recovery Revenue
FGIC Financial Guaranty Insurance Company TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
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<CAPTION>
Summary of Combined Ratings (Unaudited)
<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) 96.5%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 3.5
____
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, 1997, 59.8% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks, government agencies and brokerage firms.
(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, 1997, the Fund had $80,560,000 (35.6% 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.
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DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1997
Cost Value
_______ _______
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $227,320,086 $227,320,086
Cash....................................... 3,099,817
Interest receivable........................ 1,754,328
Prepaid expenses........................... 21,358
_______
232,195,589
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 96,755
Payable for investment securities purchased 5,500,000
Accrued expenses........................... 51,065
_______
5,647,820
_______
NET ASSETS.................................................................. $226,547,769
=======
REPRESENTED BY: Paid-in capital............................ $226,727,505
Accumulated net realized gain (loss) on investments (179,736)
_______
NET ASSETS.................................................................. $226,547,769
=======
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.01 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) 226,727,505
NET ASSET VALUE, offering and redemption price per share.................... $1.00
===
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $ 7,806,176
EXPENSES: Management fee_Note 2(a)................... $ 1,139,823
Shareholder servicing costs_Note 2(b)...... 246,592
Trustees' fees and expenses_Note 2(c)...... 32,350
Professional fees.......................... 25,670
Custodian fees............................. 24,356
Registration fees.......................... 11,519
Prospectus and shareholders' reports....... 6,883
Miscellaneous.............................. 12,469
_______
Total Expenses......................... 1,499,662
_______
INVESTMENT INCOME_NET....................................................... 6,306,514
NET REALIZED GAIN (LOSS) ON INVESTMENTS_Note 1(b)........................... (4,114)
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 6,302,400
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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<CAPTION>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1997 March 31, 1996
_________________ ________________
<S> <C> <C>
OPERATIONS:
Investment income_net................................................. $ 6,306,514 $ 8,097,042
Net realized gain (loss) on investments............................... (4,114) (9,381)
________ _______
Net Increase (Decrease) in Net Assets Resulting from Operations..... 6,302,400 8,087,661
________ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................. (6,306,514) (8,097,042)
________ _______
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold......................................... 428,205,882 503,720,818
Dividends reinvested.................................................. 3,924,208 4,960,945
Cost of shares redeemed............................................... (458,563,020) (537,451,138)
________ _______
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (26,432,930) (28,769,375)
________ _______
Total Increase (Decrease) in Net Assets........................... (26,437,044) (28,778,756)
NET ASSETS:
Beginning of Period................................................... 252,984,813 281,763,569
________ _______
End of Period......................................................... $ 226,547,769 $ 252,984,813
======== =======
SEE NOTES TO FINANCIAL STATEMENTS.
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<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.
Year Ended March 31,
______________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____
Investment Operations:
Investment income_net........................ .028 .030 .026 .019 .024
____ ____ ____ ____ ____
Distributions:
Dividends from investment income_net......... (.028) (.030) (.026) (.019) (.024)
____ ____ ____ ____ ____
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 2.80% 3.07% 2.60% 1.94% 2.38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .66% .64% .64% .65% .65%
Ratio of net investment income
to average net assets...................... 2.77% 3.03% 2.56% 1.92% 2.34%
Net Assets, end of period (000's Omitted).... $226,548 $252,985 $281,764 $319,627 $316,344
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. is 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 $179,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1997. 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, $10,000 expires in fiscal 2004 and $5,000
expires in fiscal 2005.
At March 31, 1997, 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 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.
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) Under the 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 period ended March 31, 1997,
the Fund was charged an aggregate of $155,629 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 $63,511 during the period ended March 31, 1997.
(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
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, 1997 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 and financial highlights. Our procedures included
confirmation of securities owned as of March 31, 1997 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 Dreyfus California Tax Exempt Money Market Fund at March 31, 1997
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 & YOUNG LLP signature logo]
New York, New York
April 24, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during its fiscal year ended March
31, 1997 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are California residents, California personal income
taxes).
[Dreyfus lion "d" logo]
Registration Mark
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. 357AR973
[Dreyfus logo]
Registration Mark
California
Tax Exempt
Money Market Fund
Annual Report
March 31, 1997
