<PAGE>
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 the six-month period ended September 30, 1998. Your
Fund produced an annualized yield of 2.76% and, after taking into account the
effect of compounding, the annualized effective yield was 2.80%.*
THE ECONOMY
The risk of global recession loomed large by the end of the reporting period.
Since last summer, the international economic crisis has spread from Asia and
Russia into Latin America and its effects are evident in the U.S., as witnessed
by early signs of a slowing in our domestic economy. Second-quarter gross
domestic product grew at an annual rate of 1.8%, well below the 5.5% rate in the
first quarter, while the trade deficit has continued to widen, affected by
weakening foreign demand and low-priced imports. These developments have
heightened a sense of global economic interdependence and have resulted in a
shift in emphasis by the Federal Reserve Board, whereby fighting inflation has
taken a subordinate role to that of maintaining stable U.S. economic growth. On
September 29, the Federal Open Market Committee cut interest rates for the first
time since January 1996. That quarter-point reduction in the Federal Funds
target rate to 5.25% was designed to cushion the adverse effects of the overseas
economic crisis on the domestic economy. The Federal Funds rate is the interest
rate that banks charge each other for overnight loans.
While the corporate sector wrestles with the economic implications of global
developments, consumers have powered the economy. The reasons for their optimism
are no surprise. Inflation remains tame, running at an annual rate comfortably
below 2% . After-tax income is growing and jobs are plentiful: the unemployment
rate has been at or near 30-year lows throughout the reporting period and new
jobs have been created at a robust pace. The consumer sector comprises two
thirds of the activity in the $8-trillion U.S. economy and, with the business
sector slowing, any significant pullback in household spending could trigger a
recession. Up to now, the spillover effect from developments abroad has been
largely confined to the manufacturing sector, whose activity has contracted of
late due to the falloff in export demand. Aside from this "erosion at the edges"
as Fed Chairman Alan Greenspan describes it, layoffs on a broader scale--a
factor that could weaken consumer resolve to spend--so far have not occurred. It
is clear that the Fed is concerned about the possibility of worldwide recession.
The recent October interest rate reduction was a major step by the Fed toward
mitigating the domestic effects of international financial turmoil and a gesture
meant to serve notice to the world of the seriousness of its purpose.
<PAGE>
MARKET ENVIRONMENT/PORTFOLIO STRATEGY
The Fed's action to reduce the target rate for Fed Funds provided even greater
strength to the short-term municipal money market. Prior to this action, the
short-term market had already felt the effects of the diminished supply of
eligible new issuance over the summer months. This year's summer calendar of
municipal notes (consisting mainly of California paper) was drastically reduced
by a combination of factors. Due to the strength of local and state economies,
several issuers reduced the amount of short-term borrowing needed. Additionally,
unlike prior years, many issuers came to market with securities with maturities
beyond the 13-month maximum restriction allowable for money funds. Other issues
were converted to a synthetic structure that is not currently permitted for
purchase in your Fund. The overall result was a lower yield for most one-year
paper, both national and state specific.
We extended your Fund's average maturity to the 50-day range in early summer,
just prior to the market strengthening. Your Fund benefited from our purchase of
securities in the one-year range at yields significantly higher than what is
currently available in the market. In mid-summer, yields began to drop and we
utilized the commercial paper market to maintain the Fund's average maturity. In
late September, the State of California's $1.7 billion note issuance provided
additional supply to the short-term market. This allowed us the opportunity to
extend your Fund's average maturity into the 70--day range. In the months ahead,
we will continue to participate in the tax-exempt commercial paper market as a
means of extension while yields in the one-year note market remain aggressive.
In the event of any market weakness, we would consider additional purchases in
the one-year range. As always, we will structure the portfolio in an attempt to
maximize current yield while maintaining our commitment to high quality
tax-exempt investments.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 1998
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<PAGE>
<TABLE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Tax Exempt Investments--100.5% Amount Value
- ------------------------------------------------------- ______________ _____________
California--91.4%
State of California:
CP 3.20%, 12/17/98 (LOC: Bayerische Landesbank, Credit Suisse, Landesbank
Hessen,
<S> <C> <C>
Morgan Guaranty Trust Co. and Westduetsche Landesbank) . . . . . . . . . . . . . . . . $ 2,300,000 $ 2,300,000
RAN 4%, 6/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 8,049,440
(Veterans) 4.125%, Series BJ, 6/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . 8,800,000 8,807,658
California Health Facilities Financing Authority, Revenue, VRDN:
(Catholic Health Care):
3.60%, Series C (Insured; MBIA and Liquidity; Morgan Guaranty Trust Co.) (a) . . . . . 5,500,000 5,500,000
3.60%, Series D (Insured; MBIA and LOC; Rabobank Nederland) (a) . . . . . . . . . . . 2,000,000 2,000,000
(Hospital-Adventist):
4%, Series A (Insured; MBIA and LOC; California State Teachers Retirement) (a) . . . . 2,800,000 2,800,000
4%, Series C (Insured; MBIA and LOC; California State Teachers Retirement) (a) . . . . 2,100,000 2,100,000
California Pollution Control Financing Authority, PCR, Refunding
(Pacific Gas and Electric):
CP 4.05%, Series D, 10/7/98 (LOC; Union Bank of Switzerland) . . . . . . . . . . . . . 5,000,000 5,000,000
VRDN 4%, Series F (LOC; Banque Nationale de Paris) (a) . . . . . . . . . . . . . . . . 4,000,000 4,000,000
California Public Capital Improvements Financing Authority, Revenue (Pooled
Project)
3.45%, Series C, 12/15/98 (LOC; National Westminster Bank) . . . . . . . . . . . . . . . 3,000,000 3,000,000
California School Cash Reserve Program Authority, Notes
4.50%, Series A, 7/2/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,027,475
California Transit Finance Authority, VRDN 3.20% (BPA; Credit Suisse and Insured; FSA) (a) . 9,000,000 9,000,000
Garden Grove Housing Authority, MFHR, VRDN (Valley View-Senior Villas Project)
3.35%, Series A (LOC; Wells Fargo Bank) (a) . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,200,000
Kern County, COP, VRDN (Kern Public Facilities Project)
3%, Series B (LOC; Union Bank of Switzerland) (a) . . . . . . . . . . . . . . . . . . . 3,955,000 3,955,000
Kern County Board of Education, TRAN 4.25%, 6/30/99. . . . . . . . . . . . . . . . . . . . 6,000,000 6,027,918
Kings County Housing Authority, MFHR, Refunding, VRDN (Edgewater Isle
Apartments)
3.60%, Series A (LOC; Wells Fargo Bank) (a) . . . . . . . . . . . . . . . . . . . . . . 6,155,000 6,155,000
City of Los Angeles, VRDN:
MFHR (Lucas Studios Project) 3.60%, Series D (LOC; Bank of America) (a) . . . . . . . . 3,655,000 3,655,000
Multi-Family Revenue (Loans To Tender Program)
4.10%, Series A (LOC; Federal Home Loan Banks) (a) . . . . . . . . . . . . . . . . . . 6,325,000 6,325,000
Los Angeles County, TRAN 4.50%, Series A, 6/30/99. . . . . . . . . . . . . . . . . . . . . 9,000,000 9,053,600
Newport Beach, Revenue, VRDN (Hoag Memorial Presbyterian Hospital):
3.80% (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,050,000 3,050,000
3.80%, Series B (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000,000 16,000,000
3.80%, Series C (LOC; Bank of America) (a) . . . . . . . . . . . . . . . . . . . . . . . 1,400,000 1,400,000
City of Oakland, Unified School District of Alameda County, TRAN 4.25%, 10/28/98 . . . . . 6,000,000 6,001,709
City of Ontario Redevelopment Agency, Revenue, VRDN (Mission Oaks)
4.25%, Series A (LOC; Union Bank of Switzerland) (a) . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
<PAGE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
California (continued)
Orange County, VRDN:
Apartment Development Revenue, Refunding (Villas Aliento)
3.40%, Series E (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 5,000,000
Sanitation District Numbers 1-3, 5-7 and 11, COP
3.60% (BPA; Barclays Bank and Insured; AMBAC) (a) . . . . . . . . . . . . . . . . . . 7,500,000 7,500,000
San Diego Housing Authority, MFHR, VRDN (Nobel Court Apartments)
3.65% (LOC; Citibank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,685,000 3,685,000
San Diego Water Authority, CP
3.20%, Series 1, 2/17/99 (Liquidity: Bayerische Landesbank) . . . . . . . . . . . . . . 4,000,000 4,000,000
City and County of San Francisco Unified School District, TRAN 4.50%, 10/30/98 . . . . . . 5,000,000 5,003,631
City of San Jose, MFHR, VRDN (Siena at Renaissance)
3.35%, Series A (LOC; Key Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,500,000
San Leandro, Multi-Family Revenue, VRDN (Parkside Commons)
3%, Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,425,000 12,425,000
Santa Barbara County Schools Financing Authority, TRAN 4.50%, 6/30/99. . . . . . . . . . . 4,000,000 4,023,852
University of California, Board of Regents, Revenues, CP:
3.20%, 11/9/98 (LOC: Bank of America, Bank of Montreal, Canadian Imperial Bank
of Commerce, Credit Agricole and Societe Generale) . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
3.15%, 1/26/99 (LOC: Bank of America, Bank of Montreal, Canadian Imperial Bank
of Commerce, Credit Agricole and Societe Generale) . . . . . . . . . . . . . . . . . . 6,000,000 6,000,000
U.S. Related--9.1%
Government Development Bank of the Commonwealth of Puerto Rico, CP:
3.50%, 11/18/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
3.15%, 12/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,016,000 2,016,000
Guam Power Authority, CP 3.20%, 1/12/99 (Insured; AMBAC and LOC; Kredietbank). . . . . . . 3,700,000 3,700,000
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Facilities Finance Authority, Higher Education Revenue, VRDN
(Anna G. Mendez University Systems Project)
3.55%, Series A (LOC; Banco Popular de Puerto Rico) (a) . . . . . . . . . . . . . . . . 7,000,000 7,000,000
_____________
TOTAL INVESTMENTS (cost $196,261,283). . . . . . . . . . . . . . . . . . . . . . . . . . . 100.5% $196,261,283
_______ _____________
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (.5%) $ (998,224)
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $195,263,059
_______ _____________
<PAGE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
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Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
BPA Bond Purchase Agreement Insurance Corporation
COP Certificate of Participation MFHR Multi-Family Housing Revenue
CP Commercial Paper PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RAN Revenue Anticipation Notes
FSA Financial Security Assurance TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ___________________
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1, A2 100.0%
_______
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Securities payable on demand.Variable interest rate-subject to periodic
change.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $196,261,283 $196,261,283
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 6,226,375
Interest receivable . . . . . . . . . . . . . . . . . . . 970,734
_____________
203,458,392
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 81,704
Payable for investments securities purchased . . . . . . 8,049,440
Accrued expenses and other liabilities . . . . . . . . . 64,189
_____________
8,195,333
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $195,263,059
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $195,431,990
Accumulated net realized gain (loss) on investments . . . (168,931)
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $195,263,059
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.01 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED). . . . . . . 195,431,990
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
_____
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $3,292,275
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $ 477,763
Shareholder servicing costs--Note 2(b) . . . . . . . . . 96,457
Professional fees . . . . . . . . . . . . . . . . . . . . 23,106
Registration fees . . . . . . . . . . . . . . . . . . . . 16,613
Trustees' fees and expenses--Note 2(c) . . . . . . . . . 15,123
Custodian fees . . . . . . . . . . . . . . . . . . . . . 11,772
Prospectus and shareholders' reports . . . . . . . . . . 8,155
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 3,100
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 652,089
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,640,186
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . . . . . (1,962)
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $2,638,224
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1998 Year Ended
(Unaudited) March 31, 1998
_____________ ___________________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,640,186 $ 6,106,787
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . (1,962) 12,767
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . 2,638,224 6,119,554
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,640,186) (6,106,787)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . 177,100,741 377,154,421
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,726,280 3,727,148
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . (177,774,619) (413,229,486)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . 1,052,402 (32,347,917)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . 1,050,440 (32,335,150)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,212,619 226,547,769
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $195,263,059 $194,212,619
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
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
September 30, 1998 Year Ended March 31,
_____________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
___________ ______ ______ ______ ______ ______
<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 . . . . . . . . . . . . . .014 .029 .028 .030 .026 .019
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.014) (.029) (.028) (.030) (.026) (.019)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . 2.77%* 2.91% 2.80% 3.07% 2.60% 1.94%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .68%* .69% .66% .64% .64% .65%
Ratio of net investment income
to average net assets . . . . . . . . . . . . 2.76%* 2.88% 2.77% 3.03% 2.56% 1.92%
Net Assets, end of period (000's Omitted) . . . . $195,263 $194,213 $226,548 $252,985 $281,764 $319,627
- -----------------------------
* Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
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, as amended (the "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 (the "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 in securities 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. Under the terms of the custodian agreement, the Fund
received net earnings credits of $5,260 based on available cash balances left on
deposit. Income earned under this arrangement is included in interest income.
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 of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $135,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1998. If not
applied, $7,000 of the carryover 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 September 30, 1998, 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).
<PAGE>
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 of1% of the value of the Fund's average
daily net assets and is payable monthly.
(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
September 30, 1998, the Fund was charged $61,123 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. During the period
ended September 30, 1998, the Fund was charged $26,790 pursuant to the transfer
agency agreement.
(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.
<PAGE>
Dreyfus lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
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. 357SA989
California Tax Exempt
Money Market Fund
Semi-Annual
Report
September 30, 1998
