DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New York
Tax Exempt Intermediate Bond Fund. For its annual reporting period ended May
31, 1996, your Fund achieved a total return of 3.52%.* Income dividends
exempt from Federal, State of New York and New York City personal income
taxes of approximately $.850 per share were paid,** which is equivalent to an
annualized tax-free distribution rate per share of 4.76%.***
THE ECONOMY
Recent economic reports show that the economy continues to recover from
its year-end 1995 pause. Spurred by a surge in consumer and business
spending, the annualized Gross Domestic Product grew at a moderate 2.3%
during the first quarter of this year. The Index of Leading Economic
Indicators, a major forecasting index, extended its string of increases for
the third consecutive month in April, the first such three-month advance
since late 1993. Despite a sharp jump in energy prices, inflation remained in
check. For the 12 months ended May 31, consumer prices rose 2.9%. Giving
further evidence of moderating prices, a survey released in May by the
National Business Council revealed greater difficulty for major industrial
companies in raising prices now than six months ago.
Despite the relatively benign level of inflation, the economy's expansion
has sparked concerns that the Federal Reserve Board could raise short-term
interest rates. In reaction to this possibility, long-term rates have risen
since the beginning of the year. So far, the Fed has refrained from
tightening monetary policy, apparently interpreting economic data to mean
that the economy remains on a path of moderate growth unaccompanied by a
surge in inflation. However, the strong May employment data has some
investors fearing that the Fed will not remain inactive for long. There is
now a greater consensus that the Fed will tighten credit eventually in order
to prevent unacceptable levels of price inflation from coming on the heels of
economic growth.
Consumers, who account for over two-thirds of our country's Gross
Domestic Product (GDP), are vital contributors to economic growth. So far,
they have continued to spend, setting aside concerns about job security and
stagnating real wages in favor of current consumption. New-home sales, an
important component of consumer spending, continued to post gains throughout
the reporting period, and retail sales in general rose 6% over the year ended
April 30. Additional encouragement to consumers occurred when the Labor
Department recently reported a continuation of the declining trend in
first-time jobless claims. On the corporate side of the economy, capacity
utilization inched higher and is now at 83.2%. While still well below the
peak level (85.1%) for this economic expansion, which was reached over a year
ago, further growth in this indicator may result in shortages that could
produce higher prices. Following the GM strike-induced slowdown in March,
industrial production has risen, bringing the year-over-year gain to a solid
3.3% through May.
We remain alert to early signs of growing inflationary pressures that
might cause the Federal Reserve to raise interest rates. To date, prices are
still being kept under control. However, we are especially watchful of the
potential buildup in wage pressures given the rising trend in both corporate
output and capacity utilization.
MARKET ENVIRONMENT
Since our last report in November 1995, tax exempt bond yields are
approximately 50 basis points higher, reflecting the weakening in bond prices
in response to the strengthening domestic economy. With long-term U.S.
Government bond yields currently in excess of 7%, and municipal bonds
offering 6% (tax exempt), some investors are now beginning to take notice.
The market is trying to anticipate what the Federal Reserve will do in light
of the strong economic numbers during the first half of the year. It is the
general consensus that, should the Fed act sooner rather than later to undo
the easing moves
undertaken last winter, the economy will slow and bond prices will rally.
With the Presidential election looming on the horizon, politics could play a
role in any Fed decision to change policy.
The technical picture of the municipal bond market looks very encouraging
at this time. Seasonally, we are now approaching a very heavy period for bond
maturities and redemptions; with a moderate calendar of new issues, there
will be fewer bonds available for reinvestment. This fact is currently
reflected in the better price performance of tax exempts relative to taxable
securities.
THE PORTFOLIO
The fixed income market has experienced considerable volatility since
January. On an after-tax basis, the municipal market offered very attractive
returns when compared to the Treasury market. In January, 15-year AAA general
obligation bonds yielded approximately 88% of comparable Treasuries: that has
since corrected, and we have returned to ratios of approximately 81%, which
represent an historically more typical relationship. This volatility occurred
for several reasons, including the strong appeal of the stock market for
investors' dollars; the continued fallout from the default of Orange County,
California (AAA, prior to default); and the ongoing concern over tax reform.
During the early part of 1996, the portfolio was positioned more
aggressively than, in hindsight, it should have been. Our total return for
the year ended May 31, 1996 was 3.52%, slightly below the Lipper New York
Intermediate Municipal Debt Funds Category total return average of 3.76% for
the same period.+
In an attempt to soften some of the volatility, the Fund began to sell
some of its low coupon bonds (below 5%) and added more defensive coupons to
the portfolio. A portion of the portfolio was barbelled utilizing a
combination of the short end of the curve (3-5 year maturities) and the 10-15
year sector. An ongoing process is to add as much liquidity and diversity to
the Fund as possible. This is especially important during cycles of
volatility such as we have experienced this year.
The New York market has seen price improvement resulting from a
tightening in quality spreads. Issues such as those of New York City, which
had yielded 100% of Treasury Bonds' yields, are now trading at a lower ratio.
Retail demand continues to be strong for New York paper. As of this writing,
the New York State budget stalemate continues, making this the longest
deadlock in State history.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 14, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** Some income may be subject to state and local taxes for non-New York
residents and, for some investors, to the Federal Alternative Minimum Tax
(AMT).
*** Annualized distribution rate per share is based upon dividends per
share paid from net investment income during the period, divided by the net
asset value per share at the end of the period.
+ SOURCE: Lipper Analytical Services, Inc.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND MAY 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW YORK TAX
EXEMPT INTERMEDIATE BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND
INDEX
[Exhibit A]
Dollars
$20,447
Lehman Brothers 10-Year
Municipal Bond Index*
$18,444
Dreyfus New York
Tax Exempt Intermediate
Bond Fund
[Exhibit A]
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (6/12/87)
MAY 31, 1996 MAY 31, 1996 TO MAY 31, 1996
------------- ----------------- ----------------------
<S> <C> <C>
3.52% 6.87% 7.06%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus New York Tax
Exempt Intermediate Bond Fund on 6/12/87 (Inception Date) to a $10,000
investment made in the Lehman Brothers 10-Year Municipal Bond Index on that
date. For comparative purposes, the value of the Index on 5/31/87 is used as
the beginning value on 6/12/87. All dividends and capital gain distributions
are reinvested.
The Fund invests primarily in New York municipal securities and maintains a
portfolio with a weighted-average maturity ranging between 3 and 10 years.
The Fund's performance shown in the line graph takes into account fees and
expenses. Unlike the Fund, the Lehman Brothers 10-Year Municipal Bond Index
is an unmanaged total return performance benchmark for the investment-grade,
geographically unrestricted 10-year tax exempt bond market, consisting of
municipal bonds with maturities of more than 8 years and less than 12 years.
The Index does not take into account charges, fees and other expenses. Also,
unlike the Fund which principally limits investments to New York municipal
obligations, the Index is not State specific. These factors can contribute to
the Index potentially outperforming 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.
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
NEW YORK-90.8%
Albany Parking Authority, Parking Revenue, Refunding:
6.50%, 11/1/2004........................................................ $ 1,000,000 $ 1,067,980
6.70%, 11/1/2006........................................................ 1,000,000 1,067,430
Board Cooperative Educational Services, COP
(Greenport Vocational Facility Project) 7.50%, 10/1/1996................ 100,000 101,209
Buffalo Municipal Water Finance Authority, Water System Revenue
5.50%, 7/1/2005 (Insured; FSA).......................................... 1,200,000 1,229,676
City University of New York, COP, Refunding (John Jay College)
5%, 8/15/2002........................................................... 9,345,000 9,091,844
Development Authority of the North Country,
Solid Waste Management System Revenue:
6.40%, 7/1/2000 (Prerefunded 7/1/1999) (a)............................ 605,000 647,816
6.40%, 7/1/2000....................................................... 510,000 521,694
Franklin Solid Waste Management Authority, Solid Waste System Revenue
6%, 6/1/2005 (Prerefunded 6/1/2003) (a)................................. 1,515,000 1,588,902
Metropolitan Transportation Authority:
Service Contract Transit Facilities
7.25%, 7/1/1998....................................................... 2,550,000 2,687,317
Transit Facilities Revenue, Refunding:
5.10%, 7/1/2004 (Insured; AMBAC)...................................... 1,255,000 1,259,480
5.30%, 7/1/2006 (Insured; AMBAC)...................................... 3,500,000 3,534,965
Municipal Assistance Corp. for the City of New York, Refunding:
6%, 7/1/2005............................................................ 9,000,000 9,559,080
6%, 7/1/2006............................................................ 7,000,000 7,415,030
Nassau County, Refunding (Combined Sewer Districts)
5.30%, 7/1/2006 (Insured; MBIA)......................................... 4,860,000 4,908,551
New York City:
5.75%, 2/15/2008........................................................ 10,500,000 10,025,715
Refunding:
4.75%, 8/15/1998...................................................... 5,000,000 5,018,350
5.75%, 8/1/2002 (Insured; MBIA)....................................... 4,200,000 4,395,678
6.25%, 8/1/2009....................................................... 3,225,000 3,183,462
New York City Industrial Development Agency, Revenue:
Civic Facility
(YMCA of Greater New York Project) 7.25%, 8/1/1999.................... 1,800,000 1,892,880
Industrial Development:
8%, Series I, 11/16/1998 (LOC; Algemene Bank Nederland) (b)........... 605,000 610,046
8%, Series J, 11/16/1998 (LOC; Algemene Bank Nederland) (b)........... 1,175,000 1,184,799
Special Facility
(Terminal One Group Association, L.P. Project) 5.60%, 1/1/2003........ 4,000,000 3,973,320
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW YORK (CONTINUED)
New York City Municipal Water Finance Authority, Water and Sewer System Revenue:
5.55%, 6/15/2001........................................................ $ 1,500,000 $ 1,544,385
6.60%, 6/15/2002........................................................ 1,495,000 1,613,389
6.60%, 6/15/2002 (Prerefunded 6/15/2001) (a)............................ 1,505,000 1,638,403
5.375%, 6/15/2007 (Insured; AMBAC)...................................... 7,895,000 7,888,289
New York State:
6.75%, 11/15/2000....................................................... 2,000,000 2,163,460
Refunding:
5.50%, 8/15/2006...................................................... 4,300,000 4,354,911
5.40%, 10/1/2008...................................................... 3,680,000 3,638,306
New York State Dormitory Authority, Revenue:
City University:
5.20%, 7/1/2005....................................................... 5,690,000 5,501,092
5.25%, 7/1/2006....................................................... 3,000,000 2,875,200
5.25%, 7/1/2006 (Insured; FGIC)....................................... 3,000,000 2,991,720
5.75%, 7/1/2009....................................................... 8,085,000 7,842,612
Refunding 6.25%, 7/1/2003............................................. 4,225,000 4,388,507
Columbia University 5.50%, 7/1/2005..................................... 3,045,000 3,142,592
Court Facilities Lease 5.50%, 5/15/2010................................. 4,000,000 3,744,400
Department of Health:
6%, 7/1/2005.......................................................... 2,500,000 2,556,025
6%, 7/1/2006.......................................................... 2,350,000 2,388,963
Refunding 5.50%, 7/1/2005............................................. 1,000,000 988,010
Highland Community Development Corp.
5.50%, 7/1/2001 (LOC; Marine Midland Bank) (b)........................ 3,500,000 3,512,110
State University Educational Facilities:
6.10%, 5/15/2005...................................................... 2,630,000 2,715,922
6.10%, 5/15/2008...................................................... 2,000,000 2,025,520
7.70%, 5/15/2012 (Prerefunded 5/15/2000) (a).......................... 3,850,000 4,335,523
New York State Energy Research and Development Authority,
State Service Contract Revenue (Western New York Nuclear Service Center Project):
5.25%, 4/1/2003....................................................... 5,345,000 5,438,163
5.375%, 4/1/2004...................................................... 1,500,000 1,531,590
5.40%, 4/1/2005....................................................... 2,000,000 2,032,840
New York State Environmental Facilities Corp.:
PCR
(State Water Revolving Fund):
3.90%, 2/15/2000.................................................. 10,000,000 9,696,200
7.30%, 6/15/2001.................................................. 4,000,000 4,423,680
6.30%, 6/15/2002.................................................. 3,000,000 3,221,250
6.20%, 3/15/2004.................................................. 1,700,000 1,829,557
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW YORK (CONTINUED)
New York State Environmental Facilities Corp. (continued):
PCR (continued)
(State Water Revolving Fund) (continued):
6.30%, 3/15/2005.................................................. $ 1,800,000 $ 1,940,310
6.60%, 6/15/2005.................................................. 3,120,000 3,369,350
7.20%, 6/15/2006.................................................. 3,000,000 3,308,220
(New York Municipal Water Finance Authority Project)
6.35%, 6/15/2006................................................ 2,000,000 2,164,540
Special Obligation:
(Riverbank State Park) 7.10%, 4/1/2002................................ 1,130,000 1,209,190
(State Park Infrastructure) 5.75%, 3/15/2008.......................... 2,475,000 2,459,086
New York State Housing Finance Agency:
Revenue
(Refunding- Health Facilities - New York City):
7.90%, 11/1/1999 (Prerefunded 11/1/1996) (a)...................... 245,000 249,332
7.90%, 11/1/1999.................................................. 1,770,000 1,924,061
6.375%, 11/1/2003................................................. 3,000,000 3,088,050
6%, 11/1/2006..................................................... 12,450,000 12,278,937
(Urban Rent) 5.90%, 11/1/2003........................................... 4,330,000 4,369,446
New York State Local Government Assistance Corp.:
6.70%, 4/1/2000......................................................... 2,490,000 2,659,021
6.75%, 4/1/2002......................................................... 2,500,000 2,739,950
5.70%, 4/1/2008......................................................... 3,000,000 3,027,750
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital and Nursing Home 5.875%, 2/15/2008 (Insured; FHA).............. 2,215,000 2,244,880
Mental Health Services 5.25%, 2/15/2008 (Insured; FGIC)................. 6,160,000 6,009,696
(Mortgage Project) 5.40%, 8/15/2005 (Insured; FHA)...................... 2,115,000 2,137,588
New York State Mortgage Agency, Revenue, (Homeowner Mortgage)
6.15%, 10/1/2001........................................................ 1,225,000 1,270,019
New York State Power Authority,
General Purpose Revenue:
6.50%, 1/1/2004....................................................... 2,735,000 2,939,414
Refunding 5%, 1/1/2007................................................ 5,000,000 4,818,650
New York State Project Finance Agency 5%, 11/1/2007 (Insured; FHA).......... 2,650,000 2,553,858
New York State Thruway Authority:
(Emergency Highway Reconditioning and Preservation)
6%, 1/1/2002.......................................................... 2,000,000 2,110,720
General Revenue 5.70%, 1/1/2008 (Insured; FGIC)......................... 3,000,000 3,054,480
Local Highway and Bridge 5.75%, 4/1/2008................................ 3,200,000 3,140,576
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW YORK (CONTINUED)
New York State Thruway Authority (continued):
Service Contract Revenue (Local Highway and Bridge):
5.40%, 4/1/2003....................................................... $ 6,195,000 $ 6,174,247
5.50%, 4/1/2004....................................................... 1,130,000 1,124,938
5.125%, 4/1/2007 (Insured; MBIA)...................................... 4,295,000 4,200,811
5.90%, 4/1/2007....................................................... 7,000,000 7,027,160
New York State Urban Development Corp.:
Project Revenue (Cornell Center for Theory and Simulation Science and
Engineering Grant) 5.90%, 1/1/2007.................................... 2,735,000 2,670,810
Refunding, Project (Onondaga County Convention):
6.25%, 1/1/2007....................................................... 1,725,000 1,758,310
6.25%, 1/1/2008....................................................... 1,830,000 1,853,955
6.25%, 1/1/2009....................................................... 1,950,000 1,965,854
6.25%, 1/1/2010....................................................... 2,065,000 2,066,549
Revenue (Correctional Capital Facilities)
6%, 1/1/2005.......................................................... 5,165,000 5,240,719
(State Facilities) Refunding 5.50%, 4/1/2007............................ 3,000,000 2,904,690
Oneida-Herkimer Solid Waste Management Authority, Solid Waste System Revenue
6.60%, 4/1/2004......................................................... 1,150,000 1,193,953
Onondaga County Industrial Development Agency, PCR, Refunding
(Anheuser-Busch Co. Inc. Project) 6.625%, 8/1/2006...................... 4,000,000 4,302,280
Port Authority of New York and New Jersey
(Consolidated Bonds 73rd Series) 6.75%, 10/15/2006...................... 2,000,000 2,150,460
Rensselaer Industrial Development Agency, IDR (Albany International Corp.)
7.55%, 6/1/2007 (LOC; Norstar Bank) (b)................................. 2,000,000 2,243,240
Suffolk County Industrial Development Agency, IDR (Metavac Inc. Facilities)
7.25%, 12/1/1999 (LOC; Bank of Tokyo) (b)............................... 1,310,000 1,349,313
Suffolk County Water Authority, Waterworks Revenue Refunding:
5.10%, 6/1/2003 (Insured; MBIA)......................................... 3,545,000 3,575,097
5.10%, 6/1/2004 (Insured; MBIA)......................................... 4,500,000 4,513,185
Syracuse:
COP
(Syracuse Hancock International Airport):
6.50%, 1/1/2004................................................... 1,045,000 1,124,148
6.60%, 1/1/2005................................................... 1,105,000 1,191,477
6.70%, 1/1/2007................................................... 1,210,000 1,282,443
Public Improvement:
5.70%, 6/15/2004...................................................... 1,850,000 1,934,194
5.70%, 6/15/2005...................................................... 1,830,000 1,901,022
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW YORK (CONTINUED)
Syracuse Industrial Development Agency, Pilot Revenue, Refunding
5.125%, 10/15/2002 (LOC; ABN AMRO Bank) (b)............................. $ 3,000,000 $ 2,945,520
Ulster County Resource Recovery Agency, Solid Waste System Revenue 5.90%, 3/1/2007 1,235,000 1,203,359
Westchester County Industrial Development Agency, RRR, Refunding
(Resco Company Project) 5.50%, 7/1/2006................................. 2,850,000 2,881,720
U.S. RELATED-9.2%
Guam 5.625%, 9/1/2002....................................................... 5,000,000 4,959,350
Puerto Rico Aqueduct and Sewer Authority, Revenue, Refunding
5.20%, 7/1/2008......................................................... 10,000,000 9,496,700
Puerto Rico Highway and Transportation Authority, Highway Revenue
6.25%, 7/1/2007 (Insured; MBIA)......................................... 3,500,000 3,789,555
Puerto Rico Public Buildings Authority,
Revenue Guaranteed Government Facilities
6.25%, 7/1/2008 (Insured; AMBAC)........................................ 3,730,000 4,048,244
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program, GO Matching Fund) 5.65%, 10/1/2003...... 5,075,000 5,169,040
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport Project)
7.875%, 10/1/1997....................................................... 1,020,000 1,059,811
Virgin Islands Public Finance Authority, Revenue, Refunding
Matching Fund Loan Notes 6.80%, 10/1/2000............................... 1,500,000 1,557,750
Virgin Islands Water and Power Authority, Electric System Revenue
6.90%, 7/1/1996......................................................... 2,595,000 2,601,384
__________
TOTAL INVESTMENTS
(cost $349,638,914)..................................................... $353,516,255
=============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FSA Financial Security Assurance PCR Pollution Control Revenue
GO General Obligation RRR Resources Recovery Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- --------------------
<S> <C> <S> <C>
AAA Aaa AAA 27.6%
AA Aa AA 15.8
A A A 23.3
BBB Baa BBB 28.9
F1 MIG1/P1 SP1/A1 1.0
Not Rated (d) Not Rated (d) Not Rated (d) 3.4
_______
100.0%
========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) 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.
(b) Secured by letter of credit.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's or 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 NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $349,638,914)-see statement..................................... $353,516,255
Receivable for investment securities sold............................... 7,216,579
Interest receivable..................................................... 6,399,174
Prepaid expenses........................................................ 7,500
__________
367,139,508
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 221,430
Due to Distributor...................................................... 7,890
Due to Custodian........................................................ 1,653,857
Accrued expenses........................................................ 108,725 1,991,902
___________ __________
NET ASSETS.................................................................. $365,147,606
=============
REPRESENTED BY:
Paid-in capital......................................................... $359,137,765
Accumulated undistributed net realized gain on investments.............. 2,132,500
Accumulated net unrealized appreciation on investments-Note 3........... 3,877,341
_________
NET ASSETS at value applicable to 20,476,885 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $365,147,606
=============
NET ASSET VALUE, offering and redemption price per share
($365,147,606 / 20,476,885 shares)...................................... $17.83
======
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $20,236,447
EXPENSES:
Management fee-Note 2(a).............................................. $ 2,194,411
Shareholder servicing costs-Note 2(b)................................. 1,131,730
Professional fees..................................................... 46,954
Trustees' fees and expenses-Note 2(c)................................. 41,865
Custodian fees........................................................ 40,334
Prospectus and shareholders' reports-Note 2(b)........................ 27,523
Registration fees..................................................... 4,967
Miscellaneous......................................................... 38,486
___________
TOTAL EXPENSES.................................................. 3,526,270
Less-reduction in management fee and reimbursement of
prospectus costs due to undertaking-Note 2(a,b)................... 445,112
___________
NET EXPENSES.................................................... 3,081,158
__________
INVESTMENT INCOME-NET........................................... 17,155,289
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 3,319,729
Net unrealized (depreciation) on investments............................ (7,887,728)
___________
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (4,567,999)
__________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 12,587,290
=============
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
----------------------------------------
1995 1996
-------- --------
OPERATIONS:
Investment income-net................................................... $ 18,034,151 $ 17,155,289
Net realized gain (loss) on investments................................. (316,185) 3,319,729
Net unrealized appreciation (depreciation) on investments for the year.. 5,287,113 (7,887,728)
_____________ _____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 23,005,079 12,587,290
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (18,034,151) (17,155,289)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 102,716,892 77,525,221
Dividends reinvested.................................................... 14,835,969 14,196,245
Cost of shares redeemed................................................. (155,468,249) (81,204,467)
_____________ _____________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (37,915,388) 10,516,999
_____________ _____________
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... (32,944,460) 5,949,000
NET ASSETS:
Beginning of year....................................................... 392,143,066 359,198,606
_____________ _____________
End of year............................................................. $ 359,198,606 $ 365,147,606
============== ==============
SHARES SHARES
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 5,899,261 4,275,135
Shares issued for dividends reinvested.................................. 851,555 783,299
Shares redeemed......................................................... (8,998,947) (4,479,706)
_____________ _____________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... (2,248,131) 578,728
============== ==============
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE 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 year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
___________________________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $16.73 $17.22 $18.06 $17.71 $18.05
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net........................ 1.01 .94 .88 .86 .85
Net realized and unrealized gain (loss)
on investments............................. .57 .94 (.31) .34 (.22)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS........... 1.58 1.88 .57 1.20 .63
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net......... (1.01) (.93) (.89) (.86) (.85)
Dividends from net realized gain on investments (.08) (.11) (.03) -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS........................ (1.09) (1.04) (.92) (.86) (.85)
------ ------ ------ ------ ------
Net asset value, end of year................. $17.22 $18.06 $17.71 $18.05 $17.83
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN.......................... 9.72% 11.22% 3.11% 7.04% 3.52%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .85% .85% .89% .96% .84%
Ratio of net investment income to average net assets 5.95% 5.25% 4.81% 4.91% 4.69%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .18% .15% .08% -- .12%
Portfolio Turnover Rate...................... 28.51% 17.05% 20.19% 29.78% 47.48%
Net Assets, end of year (000's Omitted)...... $173,835 $318,139 $392,143 $359,199 $365,148
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New York Tax Exempt Intermediate Bond Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a
non-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, New York State and New York City income taxes as is
consistent with the preservation of capital. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold
to the public without a sales load.
(A) PORTFOLIO VALUATION: The Fund's investments 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.
(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. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, 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 Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Fund's aggregate expenses, exclusive of taxes, brokerage, interest on
borrowings and extraordinary expenses, exceed 1 1/2% of the average value of
the Fund's net assets for any full fiscal year. The Manager has undertaken
from September 1, 1995 through June 30, 1996 to reduce the Management fee
paid by, or reimburse such excess expenses of the Fund, to the extent that
the Fund's aggregate annual expenses (exclusive of certain expenses as
described above) exceed an annual rate of .80 of 1% of the value of the
Fund's average daily net assets. The reduction in management fee, pursuant to
the undertaking, amounted to $444,048 for the year ended May 31, 1996.
(B) Under the Service Plan (the "Plan") adopted pursuant to rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents (a securities dealer, financial institution or other
industry professional) for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, or any affiliate
(collectively "Dreyfus") for advertising and marketing relating to the Fund
and for Servicing, at an annual rate of .25 of 1% of the value of the Fund's
average daily net assets. Both the Distributor and Dreyfus may pay Service
Agents (a securities dealer, financial institution or other industry
professional) a fee in respect of the Fund's shares owned by shareholders
with whom the Service Agent has a servicing relationship or for whom the
Service Agent is the dealer or holder of record. Both the Distributor and
Dreyfus determine the amounts to be paid to Service Agents to which it will
make payments and the basis on which such payments are made. The Plan also
separately provides for the Fund to bear the costs of preparing, printing and
distributing certain of the Fund's prospectuses and statements of additional
information and costs associated with implementing and operating the Plan,
not to exceed the greater of $100,000 or .005 of 1% of the Fund's average
daily net assets for any full fiscal year. During the year ended May 31,
1996, $917,999 was charged to the Fund pursuant to the Plan of which $1,064
was waived by the Manager.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $74,223 for the period from
December 1, 1995, through May 31, 1996.
(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 $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended May 31, 1996 amounted
to $185,330,247 and $169,302,041, respectively.
At May 31, 1996, accumulated net unrealized appreciation on investments
was $3,877,341, consisting of $7,259,367 gross unrealized appreciation and
$3,382,026 gross unrealized depreciation.
At May 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Tax Exempt Intermediate Bond Fund, including the statement
of investments, as of May 31, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1996 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New York Tax Exempt Intermediate Bond Fund at May 31,
1996, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
July 2, 1996
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended May
31, 1996 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are New York residents, New York State and New York City
personal income taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[Dreyfus lion "d" logo]
DREYFUS NEW YORK TAX EXEMPT
INTERMEDIATE 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.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 705AR965
[Dreyfus logo]
New York
Tax Exempt
Intermediate
Bond Fund
Annual Report
May 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND AND
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
______________________________________________________
| | | DREYFUS NEW YORK |
| | LEHMAN BROTHERS | TAX EXEMPT |
| PERIOD | 10-YEAR MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | BOND FUND |
|---------- | ------------------- | ------------------- |
| 6/12/87 | 10,000 | 10,000 |
| 5/31/88 | 10,841 | 10,450 |
| 5/31/89 | 11,905 | 11,415 |
| 5/31/90 | 12,781 | 12,121 |
| 5/31/91 | 14,110 | 13,229 |
| 5/31/92 | 15,421 | 14,515 |
| 5/31/93 | 17,321 | 16,143 |
| 5/31/94 | 17,915 | 16,646 |
| 5/31/95 | 19,524 | 17,817 |
| 5/31/96 | 20,447 | 18,444 |
------------------------------------------------------
*Source: Lehman Brothers
