YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier California
Municipal Bond Fund for the 12-month period ended January 31, 1999, as shown in
the following table:
<TABLE>
<CAPTION>
DISTRIBUTION RATE*
TOTAL RETURN* PER SHARE
___________ ________
<S> <C> <C>
Class A Shares . . . . . . . . . . . . . . . . . . . . 5.39% 4.09%
Class B Shares . . . . . . . . . . . . . . . . . . . . 4.86% 3.78%
Class C Shares . . . . . . . . . . . . . . . . . . . . 4.63% 3.57%
</TABLE>
THE ECONOMY
The U.S. economy remained strong in 1998 in spite of economic turmoil in Asia
and Russia. There were two main reasons: First, consumer spending was strong,
backed by healthy real wage and salary income and the wealth effect from high
asset prices. Second, technology spending was quite strong even as capital
spending in the older industries showed signs of cooling late in the year.
The Fed stood pat with an unchanged Federal Funds rate for the first nine
months of 1998, but began to ease rates on September 30. The trigger for its
doing so was a financial crisis brought on by defaults. Despite the fact that an
International Monetary Fund program was in place, Russia defaulted in midsummer.
As the prices of illiquid assets owned by leveraged hedge funds, brokerage firms
and banks dropped sharply, fear in financial circles escalated. The Fed broke
the momentum of financial stress by easing rates on three successive occasions.
The period of financial crisis was brief enough that little damage was done to
the U.S. economy in 1998, as yet another year of above-trend economic growth
with quiescent inflation was recorded.
The U.S. and Continental Europe experienced both good results and bad from the
Asian financial crisis. In this country, the housing and consumer sectors were
beneficiaries, while the industrial sector was weakened by the Asian recession.
Low inflation permitted credit to ease in both Europe and the U.S.
In 1998, the global economy survived a triple financial crisis focused on
Japan, on emerging market countries and on hyperleveraged financial
institutions. Overseas, excess capacity persists in many industries after years
of high capital spending followed by the onset of weakness in world demand.
Fortunately, the U.S. has led the world in making the transition from the
traditional industries to the new growth industries such as biotechnology,
software, hardware and the Internet. This contributed to the favorable
combination of a low unemployment rate and low inflation in the U.S., a
performance that has strengthened the forces for more efficient allocation of
capital elsewhere in the world. As 1999 began, the U.S. economy continued to
exhibit surprising strength.
MARKET ENVIRONMENT
The twelve-month period ended with January 1999 generally provided a favorable
environment for municipal bonds. Investors found municipal bond prices moving
moderately upward on a nearly uninterrupted track from month to month. A
continuing low rate of inflation and low interest rates, contained within a
still robust U.S. economy, were largely responsible for the positive atmosphere
enjoyed by the fixed income markets. The low interest rate climate was given
strong support by the flight-to-quality buying of U.S. Treasury securities which
began nearly nineteen months ago with the advent of the global currency and
economic crises. Interest rates on municipal bonds trended downward along with
the rates on Treasuries, but not to the same extent. During the year, the
creditworthiness of municipal obligations improved for the most part, thanks to
improved tax revenues resulting from the nation's economic expansion. A near
record-breaking volume of new bonds ($284 billion) was issued during calendar
1998, testimony to the ease with which municipalities felt new debt could be
sold even in an increasingly lower interest rate environment. Although 1998's
new-issuance total was just $8 billion short of 1992's record, brisk demand made
it difficult occasionally to locate desirable securities to purchase in many
states. That sizable new issue calendar, when combined with global events and an
escalating stock market, made for volatile trading sessions. As money from
around the world flowed into U.S. Treasury obligations in the face of global
turmoil, municipal yields vis-a-vis Treasury yields became increasingly
attractive.
Historically, when long-term municipal yields were 80% or more of the yields
available on Treasuries with comparable maturities, they were considered to be
good values. For much of calendar 1998, that ratio hovered near 100% and
remained there until very recently, when it declined to the lower 90% area as
Treasury prices began to erode. The environment for municipal bonds appears to
be positive still: the dollar value of new issues in 1999 will likely be less
than in 1998, while the yields of municipals compared to Treasuries after taxes
should continue to garner investors' attention. Interest rates do not appear to
be poised for a substantial upward movement anytime in the near-term future, and
if that stability persists, it should contribute to continued firmness in market
prices.
PORTFOLIO FOCUS
The Fund' s fiscal year ended on January 31, 1999. During that period, the
Dreyfus Premier California Municipal Bond Fund took a more aggressive investment
approach with the portfolio. We kept the portfolio' s average maturity at
approximately twenty years in order to preserve yield, yet maintained neutral
duration (a measure of sensitivity to interest rate changes) relative to the
Fund' s benchmark, the Lehman Brothers Municipal Bond Index. It was an
appropriate approach given the unclear direction of the municipal bond market,
which seesawed between periods of declines and periods of price appreciation. An
additional tactic, which we employed to minimize the effects of market
volatility, focused on identifying relative value within the secondary market.
For example, from time to time we bought discount bonds with slightly longer
maturities to balance the premium bonds producing higher income and already held
in the portfolio. This proved to be difficult to accomplish whenever there was
limited availability of longer-maturity, liquid discount bonds with good
structural characteristics available in the marketplace. On the occasions when
desirable bonds were found, the portfolio sold current coupon bonds with short
call features at a profit to provide funds for reinvestment.
Going forward, we will continue to manage the portfolio utilizing a
constructive approach to obtain value. The Fund is currently well balanced,
possessing a range of coupons allowing it to actively participate in the
marketplace. The market may see periods of volatility in the year ahead just as
it did in 1998, although presently we are without any concrete signs as to the
market' s direction. Recently, municipal bond yields fluctuated in a narrow
trading range between 5.05% and 5.35%. We believe that the inherent strength of
the portfolio will continue to benefit from the demand for California
securities, which are well sought after by national bond funds as well as by
other California bond funds.
A primary task, which guides our portfolio decisions, is to earn a high level
of current income to the extent it is consistent with the preservation of
capital, while at the same time maintaining the Fund's high credit quality.
Included in this report is a series of detailed statements outlining the
portfolio' s holdings and financial condition. We hope that 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]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
February 18, 1999
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
** Distribution rate per share is based upon dividends per share paid from net
investment income during the period, divided by the maximum offering price per
share at the end of the period in the case of Class A shares, or the net asset
value per share in the case of Class B and Class C shares, adjusted for capital
gains distributions. Some income may be subject to the Federal Alternative
Minimum Tax (AMT) for certain shareholders.
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND JANUARY 31, 1999
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER
CALIFORNIA MUNICIPAL BOND FUND CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX
Dollars
$21,835
Lehman Brothers Municipal Bond Index*
$20,083
Dreyfus Premier California Municipal Bond Fund (Class A Shares)
*Source: Lehman Brothers
Average Annual Total Returns
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ _________________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 1/31/99 Sales Charge Sales Charge (4.5%) Period Ended 1/31/99 Redemption Redemption*
___________________ ____________ ________________ ________________ __________ _________________
<S> <C> <C> <C> <C> <C>
1 Year 5.39% 0.67% 1 Year 4.86% 0.92%
5 Years 5.37 4.41 5 Years 4.84 4.53
10 Years 7.72 7.22 From Inception (1/15/93) 6.30 6.30
</TABLE>
Class C Shares
_______________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 1/31/99 No Redemption Redemption**
___________________ ____________ __________________
1 Year 4.63% 3.65%
From Inception (6/2/95) 5.71 5.71
- ---------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of Dreyfus
Premier California Municipal Bond Fund on 1/31/89 to a $10,000 investment made
in the Lehman Brothers Municipal Bond Index on that date. All dividends and
capital gain distributions are reinvested. Performance for Class B and Class C
shares will vary from the performance of Class A shares shown above due to
differences in charges and expenses.
The Fund invests primarily in California municipal securities and its
performance shown in the line graph takes into account the maximum initial sales
charge on Class A shares and all other applicable fees and expenses. The Lehman
Brothers Municipal Bond Index is not limited to investments principally in
California municipal obligations and does not take into account charges, fees
and other expenses. The Lehman Brothers Municipal Bond Index, unlike the Fund,
is an unmanaged total return performance benchmark for the long-term,
investment-grade, geographically unrestricted tax exempt bond market, calculated
by using municipal bonds selected to be representative of the municipal market
overall. These factors can contribute to the Index potentially outperforming or
underperforming the Fund. Further information relating to Fund performance,
including expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JANUARY 31, 1999
Principal
Long-Term Municipal Investments--94.5% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
California--89.0%
Abag Finance Authority For Nonprofit Corporations, MFHR (Central Park
Apartments)
5.50%, 7/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,010,000 $ 1,029,695
Alameda Corridor Transportation Authority, Transit Revenue
4.75%, 10/1/2025 (Insured; MBIA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,936,680
Brea Public Financing Authority, Water Revenue 4.75%, 7/1/2018 (Insured; FGIC).. . . . . . 2,000,000 1,996,160
California:
6.125%, 10/1/2011 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,875,000 3,415,903
4.50%, 12/1/2021 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,845,860
California Department of Water Resources, Water System Revenue, Refunding
(Central Valley Project) 5.375%, 12/1/2027 (Insured; MBIA) . . . . . . . . . . . . . . . 1,000,000 1,039,370
California Educational Facilities Authority, College and University Revenue
(Stanford University) 5.20%, 12/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,021,950
California Health Facilities Financing Authority, Revenue
(Saint Francis Memorial Hospital) 5.875%, 11/1/2023 . . . . . . . . . . . . . . . . . . 4,500,000 5,092,650
California Housing Finance Agency, Home Mortgage Revenue:
4.95%, 8/1/2014 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,533,405
6.15%, 8/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,230,280
6.70%, 8/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,805,000 1,947,306
7.50%, 8/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650,000 670,923
8%, 8/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345,000 355,881
7.60%, 8/1/2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005,000 1,051,240
California Public Works Board, LR:
(California Science Center) 5.25%, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,072,450
(Secretary of State) 6.50%, 12/1/2008 (Insured; AMBAC) . . . . . . . . . . . . . . . . . 1,400,000 1,694,350
(State University) 5.40%, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250,000 4,430,030
California Statewide Communities Development Authority, LR
(United Airlines Inc.):
5.70%, 10/1/2033 (Guaranteed; United Airlines Inc.) . . . . . . . . . . . . . . . . . 5,000,000 5,163,050
5.625%, 10/1/2034 (Guaranteed; United Airlines Inc.) . . . . . . . . . . . . . . . . . 7,000,000 7,200,270
Contra Costa County Water District, Water Revenue 6%, 10/1/2011 (Insured; MBIA). . . . . . 1,475,000 1,645,657
Delano, COP ( Delano Regional Medical Center) 5.25%, 1/1/2018. . . . . . . . . . . . . . . 3,500,000 3,381,770
Escondido Improvement Board 5.70%, 9/2/2026. . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,013,010
Fontana, Special Tax, Refunding (Senior Community Facilities District Number 2)
5.25%, 9/1/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,410,000 4,614,580
Fontana Public Financing Authority, Tax Allocation Revenue, Refunding
(North Fontana Redevelopment Project) 7.25%, 9/1/2020 . . . . . . . . . . . . . . . . . 4,250,000 4,493,100
Fremont Unified School District, Refunding 4.75%, 8/1/2020 (Insured; FGIC).. . . . . . . . 3,000,000 2,938,620
High Desert Memorial Health Care District, Revenue, Refunding 5.40%, 10/1/2011 . . . . . . 2,500,000 2,491,850
Los Angeles County, COP (Disney Parking Refunding Project)
4.75%, 3/1/2023 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,435,125
Los Angeles Harbor Department, Revenue 5.375%, 11/1/2023 . . . . . . . . . . . . . . . . . 2,250,000 2,311,695
Los Gatos-Saratoga Joint Unified High School District 4.75%, 10/1/2023.. . . . . . . . . . 2,000,000 1,843,780
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1999
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
California (continued)
Madera County, COP (Valley Children's Hospital):
6.25%, 3/15/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,250,000 $ 2,569,387
6.50%, 3/15/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,165,000 3,790,372
6.50%, 3/15/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,370,000 4,067,320
Morgan Hill Improvement Board 5.60%, 9/2/2018. . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,989,300
Nevada County, COP (Western Nevada Co. Solid Waste-McCourtney Road Landfill)
7.50%, 6/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,323,398
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Project No. 1) 6.30%, 7/1/2018 (Insured; MBIA) . . . . . . . . . . . . . 6,000,000 7,192,260
Orange County, Special Tax (Community Facilities District No. 87)
7.75%, 8/15/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,375,000 2,450,858
Redwood City Elementary School District:
Zero Coupon, 8/1/2019 (Insured: FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 5,075,000 1,826,949
Zero Coupon, 8/1/2021 (Insured: FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 5,725,000 1,852,438
Riverside County, SFMR 7.80%, 5/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,702,050
Sacramento County, Special Tax (Community Facilities District No. 1):
8.20%, 12/1/2010 (Prerefunded 12/1/2000) (b) . . . . . . . . . . . . . . . . . . . . . . 2,250,000 2,494,058
8.25%, 12/1/2020 (Prerefunded 12/1/2000) (b) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,218,720
San Diego County Water Authority, Water Revenue, COP
4.50%, 5/1/2024 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,888,820
San Francisco City and County Airport Commission, International Airport Revenue
Refunding 4.50%, 5/1/2023 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . 7,650,000 7,254,419
San Francisco City and County, Refunding 5.20%, 6/15/2015 (Insured; FGIC). . . . . . . . . 1,750,000 1,842,138
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue,
Refunding 5.50%, 1/15/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,600,000 6,791,070
San Marino Unified School District 5.25%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . 1,160,000 1,268,970
Santa Monica-Malibu Unified School District, Refunding:
5.25%, 8/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,330,000 4,697,271
5.25%, 8/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,325,000 4,606,558
Saratoga Unified School District
Zero Coupon, 9/1/2020 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 849,100
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (c) . . . . . . . 665,244 113,091
Simi Valley Unified School District, COP (Refunding and Capital Improvement
Projects):
5.25%, 8/1/2017 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,150,000 1,235,744
5.25%, 8/1/2022 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,066,660
University of California, Refunding (Multiple Purpose Projects)
5.10%, 9/1/2012 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,128,440
Victor Elementary School District Zero Coupon, 6/1/2015 (Insured; MBIA). . . . . . . . . . 1,000,000 458,140
Vista, MFHR, Refunding (Vista Hacienda Project) 6.95%, 4/1/2017. . . . . . . . . . . . . . 3,000,000 3,195,150
West Covina Redevelopment Agency, Community Facilities District, Refunding,
Special Tax 6%, 9/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,410,400
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1999
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
U.S. Related--5.5%
Puerto Rico Commonwealth Highway and Transportation Authority, Revenue
5.50%, 7/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,750,000 $ 5,338,620
Virgin Islands Public Finance Authority, Revenue 7.30%, 10/1/2018. . . . . . . . . . . . . 3,100,000 4,055,761
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $152,082,848). . . . . . . . . . . . . . . . . $160,574,102
_____________
Short-Term Municipal Investments--4.0%
- -------------------------------------------------------
California:
California Pollution Control Financing Authority, PCR, Refunding, VRDN:
(Pacific Gas and Electric) 3.20% (LOC; Bank of America) (d). . . . . . . . . . . . . . . $ 2,000,000 $ 2,000,000
(Pacific Gas and Electric) 3.10% (LOC; Duetsche Bank A. G.) (d). . . . . . . . . . . . . 1,800,000 1,800,000
Los Angeles, Multi-Family Revenue (Loans to Lender Program)
VRDN 3.25% (LOC; Federal Home Loan Bank) (d) . . . . . . . . . . . . . . . . . . . . . . 2,900,000 2,900,000
_____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $6,700,000) . . . . . . . . . . . . . . . . . $ 6,700,000
_____________
TOTAL INVESTMENTS (cost $158,782,848). . . . . . . . . . . . . . . . . . . . . . . . . . . 98.5% $167,274,102
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5% $ 2,627,013
_______ _____________
NET ASSETS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $169,901,115
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
COP Certificate of Participation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company SFMR Single Family Mortgage Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
LR Lease Revenue
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
_______ _________ ___________________ _____________________
<S> <C> <C> <C>
AAA Aaa AAA 47.5%
AA Aa AA 13.1
A A A 10.2
BBB Baa BBB 16.2
BB Ba BB 1.4
DD D .1
F1 MIG1, P1 SP1, A1 4.0
Not Rated (e) Not Rated (e) Not Rated (e) 7.5
_______
100.0%
_______
Notes to Statement of Investments:
</TABLE>
- -----------------------------------------------------------------------------
(a) Purchased on a delayed-delivery basis.
(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) Non-income producing security; interest payments in default.
(d) Securities payable on demand. Variable interest rate--subject to periodic
change.
(e) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1999
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $158,782,848 $167,274,102
Receivable for investment securities sold . . . . . . . . 4,057,661
Interest receivable . . . . . . . . . . . . . . . . . . . 2,564,667
Receivable for shares of Beneficial Interest subscribed . . 104,412
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 11,116
_____________
174,011,958
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 81,979
Due to Distributor . . . . . . . . . . . . . . . . . . . 43,559
Cash overdraft due to Custodian . . . . . . . . . . . . . 103,543
Payable for investment securities purchased . . . . . . . 3,754,493
Payable for shares of Beneficial Interest redeemed . . . 56,839
Accrued expenses and other liabilities . . . . . . . . . 70,430
_____________
4,110,843
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $169,901,115
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $160,573,217
Accumulated net realized gain (loss) on investments . . . 836,644
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 8,491,254
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $169,901,115
_____________
NET ASSET VALUE PER SHARE
__________________________________________________________
Class A Class B Class C
_____________ _____________ _____________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $144,854,820 $23,809,829 $1,236,466
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,333,087 1,861,664 96,454
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . . . $12.78 $12.79 $12.82
_______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1999
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $9,108,633
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 945,926
Shareholder servicing costs--Note 3(c) . . . . . . . . . 508,601
Distribution fees--Note 3(b) . . . . . . . . . . . . . . 128,907
Professional fees . . . . . . . . . . . . . . . . . . . . 44,281
Trustees' fees and expenses--Note 3(d) . . . . . . . . . 33,519
Registration fees . . . . . . . . . . . . . . . . . . . . 22,718
Custodian fees . . . . . . . . . . . . . . . . . . . . . 17,653
Prospectus and shareholders' reports . . . . . . . . . . 17,439
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 1,552
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 20,812
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 1,741,408
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,367,225
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $3,964,179
Net unrealized appreciation (depreciation) on investments . . (2,541,169)
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 1,423,010
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $8,790,235
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
January 31, 1999 January 31, 1998
_________________ _______________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,367,225 $ 8,430,684
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . 3,964,179 3,280,416
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . (2,541,169) 4,512,474
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 8,790,235 16,223,574
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,401,755) (7,570,235)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (919,057) (1,000,094)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46,413) (42,303)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,783,280) (1,206,503)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (613,407) (190,234)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43,683) (8,840)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,807,595) (10,018,209)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,325,763 6,052,942
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,485,317 2,973,938
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,575,307 56,833
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,256,848 4,163,733
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,020,773 801,848
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,255 25,641
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,595,241) (29,276,730)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,219,821) (4,175,648)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,464,119) (15,301)
Net assets received in connection with reorganization--Note 1 . . . . . . . . . . . . --- 7,279,683
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . (5,573,918) (12,113,061)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . (8,591,278) (5,907,696)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178,492,393 184,400,089
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $169,901,115 $178,492,393
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
__________________________________
Year Ended Year Ended
January 31, 1999 January 31, 1998
_________________ _______________
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 726,279 481,610
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . . . . -- 254,624
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 409,278 326,898
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,522,355) (2,301,642)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . (386,798) (1,238,510)
___________ ___________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,452 235,183
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . . . . -- 332,365
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 79,423 62,876
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (404,961) (329,709)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . (55,086) 300,715
___________ ___________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,981 4,444
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . . . . -- 82
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 3,205 2,007
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (114,721) (1,165)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . 9,465 5,368
___________ ___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND 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.
<TABLE>
<CAPTION>
Class A Shares
______________________________________________________
Year Ended January 31,
______________________________________________________
PER SHARE DATA: 1999 1998 1997 1996 1995
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $13.00 $12.58 $12.97 $12.24 $13.64
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .56 .60 .65 .67 .72
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .12 .53 (.24) 1.02 (.80)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . .68 1.13 .41 1.69 (.08)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.56) (.61) (.64) (.67) (.72)
Dividends from net realized gain on investments . . . . . (.34) (.10) (.16) (.29) (.60)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . (.90) (.71) (.80) (.96) (1.32)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $12.78 $13.00 $12.58 $12.97 $12.24
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN* . . . . . . . . . . . . . . . . . . 5.39% 9.27% 3.31% 14.15% (4.34%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .94% .95% .92% .93% .90%
Ratio of net investment income to average net assets . . 4.36% 4.71% 5.18% 5.22% 5.72%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . -- -- -- -- .02%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 101.36% 103.75% 39.76% 92.42% 37.39%
Net Assets, end of period (000's Omitted) . . . . . . . . $144,855 $152,416 $163,030 $185,187 $191,939
- -----------------------------
* Exclusive of sales load.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
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.
<TABLE>
<CAPTION>
Class B Shares
______________________________________________________
Year Ended January 31,
______________________________________________________
PER SHARE DATA: 1999 1998 1997 1996 1995
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $13.01 $12.59 $12.98 $12.25 $13.64
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .50 .53 .59 .60 .65
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .12 .53 (.25) 1.02 (.79)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . .62 1.06 .34 1.62 (.14)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.50) (.54) (.57) (.60) (.65)
Dividends from net realized gain on investments . . . . . (.34) (.10) (.16) (.29) (.60)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . (.84) (.64) (.73) (.89) (1.25)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $12.79 $13.01 $12.59 $12.98 $12.25
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN* . . . . . . . . . . . . . . . . . . 4.86% 8.69% 2.79% 13.55% (4.77%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . 1.45% 1.46% 1.44% 1.45% 1.42%
Ratio of net investment income to average net assets . . 3.85% 4.18% 4.66% 4.69% 5.17%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . -- -- -- -- .02%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 101.36% 103.75% 39.76% 92.42% 37.39%
Net Assets, end of period (000's Omitted) . . . . . . . . $23,810 $24,942 $20,341 $21,530 $18,981
- -----------------------------
* Exclusive of sales load.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
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.
<TABLE>
<CAPTION>
Class C Shares
__________________________________________
Year Ended January 31,
__________________________________________
PER SHARE DATA: 1999 1998 1997 1996(1)
______ ______ ______ ______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $13.04 $12.61 $12.98 $12.98
______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .47 .50 .54 .37
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . . . . . .12 .53 (.21) .29
______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .59 1.03 .33 .66
______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.47) (.50) (.54) (.37)
Dividends from net realized gain on investments . . . . . . . . . . . . (.34) (.10) (.16) (.29)
______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.81) (.60) (.70) (.66)
______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $12.82 $13.04 $12.61 $12.98
______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 4.63% 8.42% 2.67% 7.90%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.67% 1.68% 1.77% 4.42%(3)
Ratio of net investment income to average net assets . . . . . . . . . 3.68% 3.92% 4.33% 4.31%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 101.36% 103.75% 39.76% 92.42%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $1,236 $1,135 $1,029 $1
- -----------------------------
(1) From June 2, 1995 (commencement of initial offering) to January 31, 1996.
(2) Exclusive of sales load.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier California Municipal Bond 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 maximize current income exempt from Federal and State of
California personal income taxes to the extent consistent with the preservation
of capital. The Dreyfus Corporation (the " Manager" ) serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
On October 31, 1996, the Board of Trustees approved, subject to approval by
the shareholders of the California Series of Dreyfus Premier Insured Municipal
Bond Fund ("DPIMBF-California Series"), an Agreement and Plan of Reorganization
providing for the transfer of all or substantially all of the DPIMBF-California
Series' assets and liabilities to the Fund in a tax free exchange for shares of
beneficial interest of the Fund at net asset value and the assumption of stated
liabilities (the "Exchange"). The Exchange was approved by the shareholders of
DPIMBF-California Series on March 10, 1997, and was consummated after the close
of business on April 1, 1997 at which time 264,212 Class A shares valued at
$11.95 per share, 344,304 Class B shares valued at $11.97 per share and 1,020
Class C shares valued at $11.96 per share, representing combined net assets of
$7,279,683 (including $86,206 net unrealized appreciation on investments) were
exchanged by DPIMBF-California Series for the respective number of Class A,
Class B and Class C shares of the Fund.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the Fund's shares. The Fund is authorized to issue an unlimited number of $.001
par value shares in the following classes of shares: Class A, Class B and Class
C. Class A shares are subject to a sales charge imposed at the time of purchase,
Class B shares are subject to a contingent deferred sales charge ("CDSC")
imposed on Class B redemptions made within six years of purchase (five years for
shareholders beneficially owning Class B shares on November 30, 1996) and Class
C shares are subject to a contingent deferred sales charge ("CDSC") imposed on
Class C shares redeemed within one year of purchase. Other differences between
the classes include the services offered to and the expenses borne by each class
and certain voting rights.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost 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.
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the Fund received net earnings credits of $12,250 during the period
ended January 31, 1999 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, if any, 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.
NOTE 2--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
January 31, 1999, the Fund did not borrow under the Facility.
NOTE 3--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 .55 of 1% of the value of the Fund's average
daily net assets and is payable monthly.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $1,213 during the period ended January 31, 1999, from commissions
earned on sales of the Fund's shares.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C shares pay the Distributor for distributing their shares at
an annual rate of .50 of 1% of the value of the average daily net assets of
Class B shares and .75 of 1% of the value of the average daily net assets of
Class C shares. During the period ended January 31, 1999, Class B and Class C
shares were charged $119,442 and $9,465, respectively, pursuant to the
Distribution Plan.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. 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. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended January 31, 1999, Class A, Class B and Class C
shares were charged $367,090, $59,721 and $3,155, respectively, pursuant to the
Shareholder Services Plan.
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 January 31, 1999, the Fund was charged $54,425 pursuant to the transfer
agency agreement.
(d) 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 $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended January 31, 1999
amounted to $162,064,434 and $177,382,256, respectively.
At January 31, 1999, accumulated net unrealized appreciation on investments
was $8,491,254, consisting of $9,114,865 gross unrealized appreciation and
$623,611 gross unrealized depreciation.
At January 31, 1999, 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).
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
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REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Premier California Municipal Bond Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus Premier California Municipal Bond Fund, including the statement of
investments, as of January 31, 1999, 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 the financial highlights. Our procedures included confirmation of
securities owned as of January 31, 1999 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 Premier California Municipal Bond Fund at January 31, 1999, 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
March 8, 1999
DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND
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IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended January 31, 1999:
--all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are
California residents, California personal income taxes), and
--the Fund hereby designates $.1656 per share as a long-term capital gain
distribution of the $.2450 per share paid on December 8, 1998 and also
designates $.0248 per share as a long-term capital gain distribution of the
$.0913 per share paid on July 7, 1998.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends and capital gains
distributions paid for the 1999 calendar year on Form 1099-DIV which will be
mailed by January 31, 2000.
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DREYFUS PREMIER CALIFORNIA
MUNICIPAL BOND 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. PCCAR991
ANNUAL REPORT
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DREYFUS PREMIER
CALIFORNIA MUNICIPAL
BOND FUND
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JANUARY 31, 1999
[reg.tm logo]
[Dreyfus lion/2hres logo]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND CLASS
A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
DREYFUS
PERIOD LEHMAN BROTHERS PREMIER CALIFORNIA
MUNICIPAL MUNICIPAL BOND FUND
BOND INDEX * (CLASS A SHARES)
1/31/89 10,000 9,547
1/31/90 10,803 10,293
1/31/91 11,802 11,266
1/31/92 13,089 12,394
1/31/93 14,376 13,606
1/31/94 16,138 15,459
1/31/95 15,564 14,788
1/31/96 17,907 16,880
1/31/97 18,594 17,439
1/31/98 20,474 19,056
1/31/99 21,835 20,083
* Source: Lehman Brothers
