Dreyfus California
Tax Exempt Money Market Fund
ANNUAL REPORT March 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
17 Report of Independent Auditors
18 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus California
Tax Exempt Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus California Tax Exempt
Money Market Fund, covering the 12-month period from April 1, 1999 through March
31, 2000. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Jill Shaffro.
When the reporting period began, it had become apparent that international and
domestic economies were growing faster than many analysts expected, giving rise
to concerns that long-dormant inflationary pressures might re-emerge. Consumers
continued to spend heavily, unemployment levels reached new lows and the stock
market continued to climb.
Because unsustainable economic growth may trigger unwanted inflationary
pressures, the Federal Reserve Board raised key short-term interest rates five
times during the reporting period. In total, the Federal Reserve Board has
raised short-term interest rates by 125 basis points since late June 1999. While
these economic influences adversely affected longer term municipal bonds, they
positively influenced tax-exempt money market yields.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus California Tax Exempt Money Market Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Jill Shaffro, Portfolio Manager
How did Dreyfus California Tax Exempt Money Market Fund perform during the
period?
For the 12-month period ended March 31, 2000, the fund produced an annualized
tax-exempt yield of 2.40%. Taking into account the effects of compounding, the
fund provided an annualized effective yield of 2.42%.(1) We attribute the fund's
performance to higher short-term interest rates implemented by the Federal
Reserve Board, which helped enhance tax-exempt money market yields. However, the
effects of higher interest rates were largely offset in California by high
investor demand and a declining supply of newly issued securities.
What is the fund's investment approach?
The fund' s objective is to seek a high level of federal and California state
tax-exempt income while maintaining a stable $1.00 share price. We are
especially vigilant in our efforts to preserve capital.
In pursuing this objective, we employ two primary strategies. First, we attempt
to add value by constructing a diverse portfolio of high quality, tax-exempt
money market instruments from California issuers. Second, we actively manage the
portfolio' s average maturity in anticipation of supply-and-demand changes in
California's short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the portfolio, which would enable us to purchase new
securities with higher yields. Yields tend to rise when there is an increase in
new-issue supply competing for investor interest. New securities are generally
issued with maturities in the one-year range, which will lengthen the
portfolio' s average maturity. If we anticipate limited new-issue supply, we may
extend the portfolio's average maturity to maintain current yields for as long
as practical. At other times, we try to maintain an average maturity that The
Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
reflects our view of short-term interest-rate trends and future
supply-and-demand considerations.
What other factors influenced the fund's performance?
The fund was primarily influenced by robust U.S. economic growth, rising
interest rates and a declining supply of newly issued securities.
By the time the reporting period began on April 1, 1999, it had become apparent
that economic growth in the United States and overseas was stronger than many
analysts had expected. In the U.S., consumer confidence had reached a 30-year
high, oil prices were bouncing back from the previous year' s lows, and
employment was strong with hourly wages rising. These economic forces raised
concerns among fixed-income investors that long-dormant inflationary pressures
might re-emerge. In response, between June 1999 and March 2000, the Federal
Reserve Board increased short-term interest rates five times for a total
increase of 125 basis points.
Although these interest-rate increases caused short-term tax-exempt yields to
rise, tax-exempt money market yields rose less than comparable taxable yields
over the past six months. That' s because California and many of its
municipalities enjoyed higher tax revenues, reducing their need to borrow and
resulting in a reduced supply of securities. On the other hand, the strong
California economy has created substantial wealth for many members of the
state' s high-tech community, many of whom have invested in tax-exempt money
market securities. This surge in demand for a limited number of securities
constrained the rise of California tax-exempt money market yields.
What is the fund's current strategy?
We have continued to manage the portfolio' s weighted average maturity and
portfolio mix according to our interest-rate and supply-and-demand expectations
Accordingly, in August, we had adopted a relatively long average maturity to
maintain competitive yields during a time of little new
issuance. We later allowed the portfolio's average maturity to decline naturally
as existing holdings matured. We again extended the average maturity toward the
end of the year to take advantage of market weakness in advance of potential
Year 2000 concerns, which ultimately proved unfounded. Throughout the first
quarter of 2000, we maintained a weighted average maturity that was slightly
long relative to our peer group.
Our security selection strategy continued to focus on Variable Rate Demand Notes
(VRDNs) , which feature adjustable yields, short maturities, and afford the
portfolio a high degree of liquidity and credit quality. Whenever opportunities
arose, we attempted to take advantage of any available municipal notes or
commercial paper that might enable us to lock in attractive yields without
extending our average maturity. We believe that this strategy will serve the
fund well until more municipal notes become available during the traditional May
through July new-issuance season. Of course, portfolio composition will change
over time.
April 12, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-CALIFORNIA
RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. AN INVESTMENT IN THE FUND IS NOT INSURED OR
GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS
TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO
LOSE MONEY BY INVESTING IN THE FUND.
The Fund
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
March 31, 2000
STATEMENT OF INVESTMENTS
Principal
TAX EXEMPT INVESTMENTS--98.2% Amount ($) Value ($)
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CALIFORNIA--84.2%
Alameda-Contra Costa School Finance Authority, COP,
VRDN (Capital Improvement Financing Project)
3.25%, Series I (Insured; AMBAC and Liquidity
<S> <C> <C>
Facility; Kreditbank) 3,520,000 (a) 3,520,000
Anaheim Housing Authority, MFHR, Refunding, VRDN
(Sage Park Project)
3.25%, Series A (LOC; FNMA) 2,000,000 (a) 2,000,000
Antioch Public Financing Authority,
Reassessment Revenue
4.20%, Series A, 9/2/2000 (Insured; AMBAC) 1,450,000 1,453,210
State of California 3.20%, Series BJ, 6/1/2000 2,835,000 2,835,111
California Educational Facility Authority, Revenue,
VRDN (San Francisco Conservatory)
4.20% (Corp. Guaranty; California State Teachers
Retirement System) 3,000,000 (a) 3,000,000
California Housing Finance Agency,
Home Mortgage Revenue:
3.02%, Series D, 4/30/2000 5,000,000 5,000,000
VRDN, 3.35%, Series C (Corp. Guaranty;
California State Teachers Retirement System
and LOC; Commerzbank) 4,000,000 (a) 4,000,000
California Public Capital Improvements Financing
Authority, Revenue (Pooled Project)
3.60%, Series C, 6/15/2000
(LOC; National Westminster Bank) 9,000,000 9,000,000
California School Cash Reserve Program Authority,
4%, Series A, 7/3/2000 (Insured; AMBAC) 8,000,000 8,017,739
California Statewide Community Development Authority:
COP, VRDN (North California Retired Officers)
3.45% (LOC; DresdnerBank) 6,000,000 (a) 6,000,000
Revenue, TRAN
4%, Series A-1, 6/30/2000 (Insured; FSA) 4,000,000 4,007,328
City of Daly Housing Development Financing Agency,
Multi-Family Revenue, Refunding, VRDN
(Serramonte Del Ray)
3.23%, Series A (LOC; FNMA) 10,000,000 (a) 10,000,000
East Bay Regional Park District
5.50%, Series C, 9/1/2000 (Insured; FGIC) 500,000 503,458
Garden Grove Housing Authority, Multi-Family Revenue,
VRDN (Valley View-Senior Villas Project)
3.30%, Series A (LOC; Wells Fargo Bank) 3,200,000 (a) 3,200,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
Kings County Housing Authority, MFHR, Refunding,
VRDN (Edgewater Isle Apartments)
3.20%, Series A (LOC; Wells Fargo Bank) 6,155,000 (a) 6,155,000
City of Los Angeles, Multi-Family Revenue, VRDN:
(Loans To Lender Program)
3.50%, Series A (LOC; Federal Home Loan Bank) 2,625,000 (a) 2,625,000
Refunding:
(Canyon Creek Apartments)
3.20%, Series C (LOC; Banco Santander) 4,000,000 (a) 4,000,000
(Moutainback Apartments)
3.20%, Series B (LOC; Banco Santander) 1,840,000 (a) 1,840,000
Los Angeles County, TRAN 4%, 6/30/2000 4,100,000 4,106,632
Los Angeles County Public Works Financing Authority,
LR, Refunding (Master Refunding Project)
5%, Series A (Insured; FSA) 3,000,000 3,032,807
Los Angeles Department of Water and Sewer, Electric Plant
Revenue, VRDN (Second Issue)
3.20%, Series D
(Liquidity Facility; Toronto-Dominion Bank) 8,000,000 (a) 8,000,000
Los Angeles Unified School District, TRAN
4%, Series A, 6/30/2000 4,000,000 4,008,581
Metropolitan Water District, Southern California
Waterworks Revenue
3.65%, Series B, 6/1/2000
(Liquidity Facility; Bank of America) 2,200,000 2,200,000
Newport Beach, Revenue, VRDN
(Hoag Memorial Presbyterian Hospital)
3.65%, Series C
(Corp. Guaranty; Hoag Memorial Presbyterian Hospital) 7,200,000 (a) 7,200,000
Orange County, Apartment Development Revenue,
Refunding, VRDN:
(Laguna Summit Apartments)
3.15%, Series X (Insured; FGIC) 8,500,000 (a) 8,500,000
(Vintage Woods)
3.15%, Series H (LOC; FNMA) 10,000,000 (a) 10,000,000
San Bernardino County, TRAN 3.75%, 9/29/2000 1,735,000 1,735,000
City of San Jose, MFHR, VRDN:
Refunding (Kimberly Woods Apartments)
3.25%, Series A (LOC; Federal Home Loan Bank) 6,000,000 (a) 6,000,000
(Seina Renaissance Square Apartments)
3.20%, Series A (LOC; Landesbank Hessen) 3,500,000 (a) 3,500,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
Santa Ana Community Redevelopment Agency, Prerefunded
(Santa Ana Redevelopment Project Area)
6.50%, Series B, 12/15/2000
(Escrowed in; U.S. Government Securities) 2,000,000 (b) 2,077,364
U.S. RELATED--14.0%
Commonwealth of Puerto Rico Government
Development Bank, CP:
3.70%, 4/11/2000 5,000,000 5,000,000
3.15%, 4/27/2000 2,200,000 2,200,000
3.15%, 4/28/2000 4,487,000 4,487,000
3.55%, 7/13/2000 2,000,000 2,000,000
3.60%, 8/10/2000 3,000,000 3,000,000
Commonwealth of Puerto Rico Government Aqueduct
and Sewer Authority, Revenue
8.75%, Series A, 7/1/2000 (Insured; FSA) 500,000 506,190
Commonwealth of Puerto Rico Government Highway
Authority, Highway Revenue, Prerefunded
7.75%, Series Q, 7/1/2000 2,100,000 2,161,299
Commonwealth of Puerto Rico Government Highway
and Transportation, Revenue, VRDN
3.25%, Series A (Insured; AMBAC and Liquidity
Facility; Bank of Nova Scotia) 2,300,000 (a) 2,300,000
Virgin Islands Public Finance Authority, Revenue,
Prerefunded
7.30%, Series A, 10/1/2000
(Escrowed in; U.S. Government Securities) 1,110,000 (b) 1,140,470
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TOTAL INVESTMENTS (cost $160,312,189) 98.2% 160,312,189
CASH AND RECEIVABLES (NET) 1.8% 2,997,315
NET ASSETS 100.0% 163,309,504
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
CP Commercial Paper
FGIC Financial Guaranty Insurance
Company
FNMA Federal National Mortgage
Association
FSA Financal Security Assurance
LOC Letter of Credit
LR Lease Revenue
MFHR Multi-Family Housing Revenue
TRAN Tax and Revenue Anticipation
Notes
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1, A2 93.2
AAA/AA (c) Aaa/Aa (c) AAA/AA (c) 6.8
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC CHANGE.
(B) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(C) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF
THE ISSUERS.
(D) AT MARCH 31, 2000, THE FUND HAD $66,820,000 (40.9% OF NET ASSETS) INVESTED
IN SECURITIES WHOSE PAYMENT OF PRINCIPAL AND INTEREST IS DEPENDENT UPON REVENUES
GENERATED FROM HOUSING PROJECTS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 160,312,189 160,312,189
Cash 1,893,215
Interest receivable 1,222,516
Prepaid expenses and other assets 8,207
163,436,127
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 63,174
Accrued expenses and other liabilities 63,449
126,623
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NET ASSETS ($) 163,309,504
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 163,402,119
Accumulated net realized gain (loss) on investments (92,615)
NET ASSETS ($) 163,309,504
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SHARES OUTSTANDING
(unlimited number of $.01 par value shares of Beneficial Interest authorized)
163,434,453
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended March 31, 2000
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INVESTMENT INCOME ($):
INTEREST INCOME 5,460,860
EXPENSES:
Management fee--Note 2(a) 886,194
Shareholder servicing costs--Note 2(b) 180,440
Professional fees 52,367
Trustees' fees and expenses--Note 2(c) 27,405
Custodian fees 18,894
Prospectus and shareholders' reports 15,953
Registration fees 12,630
Miscellaneous 6,613
TOTAL EXPENSES 1,200,496
INVESTMENT INCOME--NET 4,260,364
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NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($): 8,135
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,268,499
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended March 31,
-----------------------------------
2000 1999
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OPERATIONS ($):
Investment income--net 4,260,364 4,994,835
Net realized gain (loss) from investments 8,135 33,885
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,268,499 5,028,720
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (4,260,364) (4,994,835)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 361,109,472 356,240,141
Dividends reinvested 2,767,290 3,266,962
Cost of shares redeemed (394,794,925) (359,534,075)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (30,918,163) (26,972)
TOTAL INCREASE (DECREASE) IN NET ASSETS (30,910,028) 6,913
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 194,219,532 194,212,619
END OF PERIOD 163,309,504 194,219,532
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Year Ended March 31,
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2000 1999 1998 1997 1996
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PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .024 .026 .029 .028 .030
Distributions:
Dividends from investment income--net (.024) (.026) (.029) (.028) (.030)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 2.43 2.59 2.91 2.80 3.07
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .68 .66 .69 .66 .64
Ratio of net investment income
to average net assets 2.40 2.56 2.88 2.77 3.03
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Net Assets, end of period ($ x 1,000) 163,310 194,220 194,213 226,548 252,985
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The 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, 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., which is a wholly-owned subsidiary of Mellon
Financial Corporation. Effective March 22, 2000, Dreyfus Service Corporation
("DSC"), a wholly-owned subsidiary of the Manager, became the distributor of the
fund' s shares, which are sold to the public without a sales charge. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor.
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 custody agreement, the fund received net earnings credits
of $7,006 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 $63,000 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to March 31, 2000. If not applied, $21,000
of the carryover 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, 2000, 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).
The Fund
NOTES TO FINANCIAL STATEMENTS (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 of 1% of the value of the fund's average
daily net assets and is payable monthly.
(b) Under the Shareholder Services Plan, the fund reimburses DSC 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, 2000, the fund was charged $112,395 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 March 31, 2000, the fund was charged $48,217 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.
REPORT OF 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, 2000 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, 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 accounting principles generally
accepted in the United States.
New York, New York
May 5, 2000
The Fund
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, 2000 as
" exempt-interest dividends" (not generally subject to regular Federal and, for
individuals who are California residents, California personal income taxes).
NOTES
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 357AR003
