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 fiscal year ended May 31, 1997.
Your Fund produced a total return, including bond price changes and interest
income, of 7.12%.* The Fund's tax-free annualized distribution rate per share
was 4.59%.** (Some income may be subject to the Federal Alternative Minimum
Tax for certain shareholders).
ECONOMIC REVIEW
Plentiful jobs and low inflation spurred consumer confidence to its
highest level in 27 years by the end of the reporting period, May 30, 1997.
Economic growth surged 5.6% in the first quarter of this year, sharply higher
than the 3.8% rate in the last quarter of 1996. With unemployment at its
lowest level in 23 years, there was fear that without some preemptive
tightening in monetary policy, inflationary pressures would resume. As a
precaution, in March 1997, the Federal Open Market Committee (the "FOMC"),
the policy-making arm of the Federal Reserve Board (the "Fed"), raised the
Federal Funds rate one quarter of a percentage point to 5.50%. It was the
first hike in short-term rates in over two years. (The Federal Funds rate is
the rate of interest banks charge each other for overnight loans.) Fed
Chairman Greenspan likened the increase to "the small immediate discomfort of
a vaccination against the possibility of getting a serious disease."
Subsequent to the March rate increase, signs of inventory accumulation and
some moderation in retail sales may have helped stay the Fed from
implementing additional increases in short-term interest rates.
The great difference between the present economic recovery and previous
ones is the absence of inflation. The economy is now in its seventh year of
expansion, an expansion devoid of any appreciable resurgence in inflation.
The Producer Price Index, a measure of prices paid by manufacturers and an
indicator of so-called pipeline inflation, declined over the first four
months of this year and has risen less than 1% over the previous twelve
months. The rise in inflation on the consumer level has been similarly
subdued. The Consumer Price Index increased a modest 2.5% over the
twelve-month period ending in April.
On another front, the tight labor market has spawned fears that rising
wages would provide an inflationary stimulus to the economy. So far, this has
not occurred. The Employment Cost Index, a gauge of wage and benefit
increases, has remained below 3%. The bipartisan budget agreement recently
reached between the Clinton Administration and the Republican Congressional
leadership has also eased inflationary fears.
The economic confidence of consumers is readily understandable. The
exceptionally low unemployment rate has combined with a strong economy that
has expanded with unusual vigor. But, despite huge business investment in
technology to improve productivity, it would be folly to assume that the
economy's capacity for noninflationary growth is unlimited. Consumers
enjoying both job stability and rising personal incomes could increase their
spending to levels that would strain production and bring on inflation; or
the Fed could again tighten credit, perhaps in another precautionary move.
MARKET ENVIRONMENT
The changing outlook for the economy has been vividly reflected in the
volatility that the fixed income markets have experienced over the past year.
After a strong close to 1996, which confirmed the opinion that inflation was
contained, early 1997 refocused on a strong labor market and the effect of
wage pressure on the economy. As the economy began to expand, investors
became convinced of an imminent tightening of monetary policy by the FOMC.
During this time, interest rates moved up to levels that were last seen
during July 1996, passing the 7% level in long-Treasuries. Although it was
assumed that most of the tightening had been reflected in the market, prices
continued to erode during this time period. The sentiment reversed once again
as second quarter numbers indicated a slowing economy.
The supply of New York paper has been moderate and most offerings that
have come to market have been very well received, as retail demand has
remained strong. The combined technicals factors of high demand and limited
supply enabled the municipal market to turn in a strong performance compared
to the taxable fixed-income markets. This is illustrated by a comparison of
the movement of 30-year U.S. Treasury yields and municipal yields as
represented by The Bond Buyer 25 Bond Revenue Index (the "Revenue Index").
While interest rates fluctuated significantly over the course of the year
ended May 31, 1997, 30-year Treasury yields closed the period 10 basis points
(.10%) lower at 6.90%. Over the same time, the Revenue Index declined by 30
basis points (.30%) to close the period at 5.91%, which represents a taxable
equivalent yield of 8.20%, assuming a 28% Federal income tax bracket.
(Remember, fund yields and net asset values do fluctuate; past performance is
no guarantee of future results, and actual results for a fund will vary from
an index).
PORTFOLIO OVERVIEW
Some of the most dramatic changes in the municipal market occurred in
spread relationships, and the flattening of the yield
curve. In the ongoing quest for yield, lower-rated issues have become rich
when compared to higher quality paper. As the yield curve flattened, we
focused our investments in the areas that we felt
picked up the most value without exposing the portfolio to undue volatility.
The availability of high yield paper in the New York market has been very
limited; New York City holdings have been some of the best performing issues
during this year. As spreads compressed, we took advantage of this and moved
out of lower rated, short call paper and into bonds with better call
protection and higher credit quality. During weakness in the cycles, we opted
to add out-of-favor discount paper, which helped the Fund's performance as
rates declined. The ongoing intention has been to add paper that provides
ample liquidity and extends call protection. The above discussed factors all
contributed positively to the Fund's performance over the reporting period.
Included in this report is a series of detailed statements about your
Fund's holdings and its' financial condition. We hope they are informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period, adjusted for any capital gain
distributions.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND MAY 31, 1997
{Exhibit A]
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
$22,119
Lehman Brothers 10-Year
Municipal Bond Index*
Dollars
$19,757
Dreyfus New York
Tax Exempt Intermediate
Bond Fund
*Source: Lehman Brothers
[Exhibit A}
Average Annual Total Returns
One Year Ended Five Years Ended From Inception (6/12/87)
May 31, 1997 May 31, 1997 to May 31, 1997
______________ ______________ _________________________
7.12% 6.36% 7.07%
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 9-12 years. The Index does not take into
account charges, fees and other expenses and is not limited to investments
principally in New York municipal obligations. 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, 1997
Principal
Long-Term Municipal Investments_98.4% Amount Value
____________ _____________
<S> <C> <C>
New York_90.0%
Albany Parking Authority, Parking Revenue, Refunding:
6.50%, 11/1/2004.......................................................... $ 1,000,000 $ 1,071,720
6.70%, 11/1/2006.......................................................... 1,000,000 1,083,440
Buffalo Municipal Water Finance Authority, Water System Revenue
5.50%, 7/1/2005 (Insured; FSA)............................................ 1,200,000 1,252,020
City University of New York, COP, Refunding (John Jay College)
5.75%, 8/15/2004.......................................................... 5,000,000 5,132,900
Development Authority of the North Country, Solid Waste Management System Revenue
6.40%, 7/1/2000 (Prerefunded 7/1/1999) (a)................................ 605,000 640,822
Franklin Solid Waste Management Authority, Solid Waste System Revenue
6%, 6/1/2005 (Prerefunded 6/1/2003) (a)................................... 1,515,000 1,634,518
Housing New York Corp., Revenue:
Zero Coupon, 11/1/2010 (Prerefunded 11/1/2000) (a)........................ 6,750,000 5,866,965
Refunding 5.25%, 11/1/2007................................................ 5,500,000 5,482,290
Metropolitan Transportation Authority
Transit Facilities Revenue:
5.50%, 7/1/2008 (Insured; MBIA)......................................... 4,380,000 4,478,988
5.625%, 7/1/2010 (Insured; MBIA)........................................ 4,895,000 4,977,579
Refunding:
5.10%, 7/1/2004 (Insured; AMBAC)...................................... 1,255,000 1,273,950
5.30%, 7/1/2006 (Insured; AMBAC)...................................... 3,500,000 3,589,915
Municipal Assistance Corp. for the City of New York, Refunding:
5.50%, 7/1/2004........................................................... 4,000,000 4,155,360
6%, 7/1/2005.............................................................. 9,000,000 9,657,090
6%, 7/1/2006.............................................................. 7,000,000 7,540,260
Nassau County, Refunding (Combined Sewer Districts)
5.30%, 7/1/2006 (Insured; MBIA)........................................... 4,860,000 5,017,172
New York City, Refunding:
5.75%, 8/1/2002 (Insured; MBIA)........................................... 4,200,000 4,392,150
5.40%, 2/15/2003.......................................................... 5,000,000 5,041,050
6.75%, 8/15/2003.......................................................... 2,800,000 3,018,260
6.25%, 8/1/2009........................................................... 3,225,000 3,371,092
6.25%, 8/1/2009........................................................... 4,150,000 4,367,833
5.90%, 8/1/2010........................................................... 5,000,000 5,081,350
New York City Housing Development Corp., MFHR
5.50%, 11/1/2009.......................................................... 6,750,000 6,707,677
New York City Industrial Development Agency, Revenue
Civic Facility (YMCA of Greater New York Project)
7.25%, 8/1/1999........................................................... 1,400,000 1,486,506
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue:
5.55%, 6/15/2001.......................................................... 1,500,000 1,547,520
6.60%, 6/15/2002.......................................................... 1,495,000 1,599,979
6.60%, 6/15/2002 (Prerefunded 6/15/2001) (a).............................. 1,505,000 1,630,532
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
__________ __________
New York (continued)
New York City Municipal Water Finance Authority, Water and Sewer System Revenue (continued):
5.375%, 6/15/2007 (Insured; AMBAC)........................................ $ 3,895,000 $ 3,977,730
5.625%, 6/15/2011......................................................... 4,000,000 4,010,120
New York State, Refunding:
5.50%, 8/15/2006.......................................................... 4,300,000 4,466,410
5.40%, 10/1/2008.......................................................... 1,430,000 1,460,573
New York State Dormitory Authority, Revenue:
(City University):
5.25%, 7/1/2006 (Insured; FGIC)......................................... 3,000,000 3,072,810
5.75%, 7/1/2009......................................................... 8,085,000 8,214,845
(Columbia University) 5.50%, 7/1/2005..................................... 3,045,000 3,185,283
(Cornell University), Refunding 5.40%, 7/1/2009........................... 4,000,000 4,110,360
Court Facilities Lease 5.50%, 5/15/2010................................... 4,995,000 4,926,668
(Department of Health):
6%, 7/1/2005............................................................ 2,500,000 2,610,400
6%, 7/1/2006............................................................ 2,350,000 2,455,209
Refunding 5.50%, 7/1/2005............................................... 1,000,000 1,014,280
(Devereux Foundation) Refunding 5%, 7/1/2010 (Insured; MBIA).............. 3,655,000 3,580,986
(Highland Community Development Corp.)
5.50%, 7/1/2001 (LOC; Marine Midland Bank) (b).......................... 3,500,000 3,579,345
(Mental Health Services Facilities):
6%, 8/15/2006........................................................... 3,320,000 3,479,891
Refunding 6%, 2/15/2007................................................. 5,640,000 5,892,559
(State University Educational Facilities):
6.10%, 5/15/2005........................................................ 2,630,000 2,768,575
6.10%, 5/15/2008........................................................ 2,000,000 2,085,360
New York State Energy Research and Development Authority,
State Service Contract Revenue (Western New York Nuclear Service Center Project):
5.25%, 4/1/2003 (Insured; CMAC)......................................... 5,345,000 5,452,167
5.40%, 4/1/2005 (Insured; CMAC)......................................... 2,000,000 2,056,420
New York State Environmental Facilities Corp.:
PCR:
Special Obligation:
(Riverbank State Park) 7.10%, 4/1/2002................................... 1,130,000 1,252,955
(State Park Infrastructure) 5.75%, 3/15/2008.......................... 2,475,000 2,545,414
(State Water Revolving Fund):
3.90%, 2/15/2000...................................................... 10,000,000 9,837,100
7.30%, 6/15/2001...................................................... 4,000,000 4,392,040
6.30%, 6/15/2002...................................................... 3,000,000 3,213,870
6.20%, 3/15/2004...................................................... 1,700,000 1,840,097
(New York Municipal Water Finance Authority Project)
6.35%, 6/15/2006.................................................... 2,000,000 2,194,860
New York State Housing Finance Agency, Revenue, Refunding:
(Health Facilities-New York City):
7.90%, 11/1/1999........................................................ 1,490,000 1,571,533
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
__________ __________
New York (continued)
New York State Housing Finance Agency, Revenue, Refunding (continued):
(Health Facilities-New York City) (continued):
6%, 11/1/2006........................................................... $ 12,450,000 $ 12,948,622
(Housing Mortgage Project)
5.875%, 11/1/2010 (Insured; FSA)........................................ 4,000,000 4,088,720
New York State Local Government Assistance Corp.:
6.70%, 4/1/2000........................................................... 25,000 26,539
6.70%, 4/1/2000........................................................... 2,465,000 2,604,322
6.75%, 4/1/2002........................................................... 2,500,000 2,714,700
Refunding:
5%, 4/1/2009 (Insured; AMBAC)........................................... 5,000,000 4,922,900
5.125%, 4/1/2010 (Insured; AMBAC)....................................... 4,010,000 3,954,141
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital and Nursing Home 5.875%, 2/15/2008 (Insured; FHA)................ 2,215,000 2,293,832
(Mortgage Project) 5.40%, 8/15/2005 (Insured; FHA)........................ 1,570,000 1,626,708
New York State Mortgage Agency, Revenue (Homeowner Mortgage)
6.15%, 10/1/2001.......................................................... 1,225,000 1,278,826
New York State Power Authority, General Purpose Revenue
6.50%, 1/1/2004........................................................... 2,735,000 2,930,170
New York State Thruway Authority:
(Emergency Highway Reconditioning and Preservation)
6%, 1/1/2002 (Insured; FSA)............................................. 2,000,000 2,109,000
General Revenue 5.70%, 1/1/2008 (Insured; FGIC)........................... 3,000,000 3,139,860
(Highway and Bridge Trust Fund) 5.30%, 4/1/2010 (Insured; AMBAC).......... 2,680,000 2,682,198
(Local Highway and Bridge Service Contract):
5.50%, 4/1/2004......................................................... 1,130,000 1,148,555
5.625%, 4/1/2007........................................................ 3,315,000 3,371,057
5.90%, 4/1/2007......................................................... 7,000,000 7,263,760
New York State Urban Development Corp.:
Refunding, Project (Onondaga County Convention):
6.25%, 1/1/2007......................................................... 1,725,000 1,833,503
6.25%, 1/1/2008......................................................... 1,830,000 1,940,441
6.25%, 1/1/2009......................................................... 1,950,000 2,056,451
6.25%, 1/1/2010......................................................... 2,065,000 2,162,592
Revenue (Correctional Capital Facilities)
5.25%, 1/1/2009......................................................... 4,295,000 4,182,170
(State Facilities) Refunding 5.50%, 4/1/2007.............................. 3,000,000 3,022,410
Onondaga County Industrial Development Agency, PCR, Refunding
(Anheuser-Busch Co. Inc. Project) 6.625%, 8/1/2006........................ 4,000,000 4,426,560
Port Authority of New York and New Jersey, Special Project Bonds
(JFK International Air Terminal LLC Project)
6.25%, 12/1/2011 (Insured; MBIA).......................................... 8,000,000 8,732,640
Rensselaer Industrial Development Agency, IDR (Albany International Corp.)
7.55%, 6/1/2007 (LOC; Fleet Trust Co.) (b)................................ 2,000,000 2,308,060
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_________ _________
New York (continued)
Suffolk County Industrial Development Agency, IDR (Metavac Inc. Facilities)
7.25%, 12/1/1999 (LOC; Bank of Tokyo) (b)................................. $ 1,160,000 $ 1,196,900
Suffolk County Water Authority, Waterworks Revenue Refunding:
5.10%, 6/1/2003 (Insured; MBIA)........................................... 3,545,000 3,606,364
5.10%, 6/1/2004 (Insured; MBIA)........................................... 4,500,000 4,575,465
Syracuse:
COP (Syracuse Hancock International Airport):
6.50%, 1/1/2004......................................................... 1,045,000 1,120,240
6.60%, 1/1/2005......................................................... 1,105,000 1,196,826
6.70%, 1/1/2007......................................................... 1,210,000 1,305,094
Public Improvement:
5.70%, 6/15/2004........................................................ 1,850,000 1,953,545
5.70%, 6/15/2005........................................................ 1,830,000 1,926,825
Syracuse Industrial Development Agency, Pilot Revenue, Refunding
5.125%, 10/15/2002 (LOC; ABN AMRO Bank) (b)............................... 3,000,000 2,999,130
Town of Hempstead Industrial Development Agency, RRR
(American REF-FUEL Company of Hempstead Project) 4.75%, 12/1/2005 (Insured; MBIA) 4,000,000 3,939,560
Westchester County Industrial Development Agency, RRR:
Equity (Westchester Resco Co. Project) 5.50%, 7/1/2009.................... 2,650,000 2,645,230
Refunding (Resco Co. Project) 5.50%, 7/1/2006 (Insured; AMBAC)............ 2,850,000 2,960,153
U.S. Related_8.4%
Guam 5.625%, 9/1/2002....................................................... 3,000,000 3,022,320
Commonwealth of Puerto Rico, Refunding Improvement 5.375%, 7/1/2005......... 2,250,000 2,296,440
Puerto Rico Electric Power Authority, Power Revenue
5.50%, 7/1/2009 (Insured; MBIA)........................................... 6,065,000 6,273,272
Puerto Rico Highway and Transportation Authority, Highway Revenue
6.25%, 7/1/2007 (Insured; MBIA)........................................... 3,500,000 3,876,740
Puerto Rico Public Buildings Authority, Revenue
(Guaranteed Government Facilities)
6.25%. 7/1/2008 (Insured; AMBAC).......................................... 3,730,000 4,134,668
Puerto Rico Telephone Authority, Revenue
6.758%, 1/25/2007 (Insured; MBIA) (c)..................................... 3,925,000 3,978,969
Virgin Islands, Subordinated Special Tax (Insurance Claims Fund Program,
GO Matching Fund) 5.65%, 10/1/2003........................................ 4,075,000 4,163,754
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
7.875%, 10/1/1997......................................................... 530,000 536,000
Virgin Islands Public Finance Authority, Revenue, Refunding
Matching Fund Loan Notes 6.80%, 10/1/2000................................. 1,500,000 1,572,405
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $339,496,709)....................................................... $349,395,435
==============
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Short-Term Municipal Investments_1.6% Amount Value
___________ ___________
New York:
New York City, VRDN 4.05% (Insured; MBIA) (LOC; National Westminster Bank) (b,d) $ 800,000 $ 800,000
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue, VRDN:
4.05% (Insured; FGIC) (d)................................................. 4,700,000 4,700,000
4% (Insured; FGIC) (d).................................................... 100,000 100,000
____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $5,600,000)......................................................... $ 5,600,000
=============
TOTAL INVESTMENTS_100.0%
(cost $345,096,709)....................................................... $354,995,435
=============
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
CMAC Capital Market Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance RRR Resources Recovery Revenue
GO General Obligation VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ______________________
AAA Aaa AAA 37.8%
AA Aa AA 16.5
A A A 24.7
BBB Baa BBB 17.0
F1 MIG1/P1 SP1/A1 1.6
Not Rated (f) Not Rated (f) Not Rated (f) 2.4
______
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 letters of credit.
(c) Inverse Floater Security_the interest rate is subject to change
periodically.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) 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 NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1997
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $345,096,709 $354,995,435
Receivable for investment securities sold.. 5,809,012
Interest receivable........................ 5,529,214
Prepaid expenses and other assets.......... 8,637
_____________
366,342,298
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 219,183
Due to Distributor......................... 7,376
Cash overdraft due to Custodian............ 183,793
Payable for investment securities purchased 8,192,570
Payable for shares of Beneficial Interest redeemed 115,262
Accrued expenses........................... 93,920
_____________
8,812,104
_____________
NET ASSETS.................................................................. $357,530,194
==============
REPRESENTED BY: Paid-in capital............................ $347,001,967
Accumulated undistributed investment income_net43,247
Accumulated net realized gain (loss) on investments 586,254
Accumulated net unrealized appreciation (depreciation)
.... on investments_Note 4 9,898,726
_____________
NET ASSETS.................................................................. $357,530,194
==============
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) 19,794,258
NET ASSET VALUE, offering and redemption price per share_Note 3(d).......... $18.06
========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $19,669,672
EXPENSES: Management fee_Note 3(a)................... $2,167,648
Shareholder servicing costs_Note 3(b)...... 1,113,560
Trustees' fees and expenses_Note 3(c)...... 50,967
Professional fees.......................... 44,176
Custodian fees............................. 37,667
Prospectus and shareholders' reports_Note 3(b) 19,072
Registration fees.......................... 6,662
Loan commitment fees_Note 2................ 2,299
Miscellaneous.............................. 24,738
____________
Total Expenses....................... 3,466,789
Less_reduction in management fee due to
undertaking_Note 3(a).................. (574,292)
____________
Net Expenses......................... 2,892,497
___________
INVESTMENT INCOME_NET....................................................... 16,777,175
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $2,015,059
Net unrealized appreciation (depreciation)
on investments 6,021,385
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 8,036,444
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $24,813,619
=============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
May 31, 1997 May 31, 1996
________________ ________________
OPERATIONS:
Investment income_net................................................ $ 16,777,175 $ 17,155,289
Net realized gain (loss) on investments.............................. 2,015,059 3,319,729
Net unrealized appreciation (depreciation) on investments............ 6,021,385 (7,887,728)
________________ ________________
Net Increase (Decrease) in Net Assets Resulting from Operations.... 24,813,619 12,587,290
________________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................ (16,733,928) (17,155,289)
Net realized gain on investments..................................... (3,561,305) ___
________________ ________________
Total Dividends.................................................... (20,295,233) (17,155,289)
________________ ________________
BENEFICIAL INTEREST TRANSACTIONS :
Net proceeds from shares sold........................................ 65,461,930 77,525,221
Dividends reinvested................................................. 16,872,078 14,196,245
Cost of shares redeemed.............................................. (94,469,806) (81,204,467)
________________ ________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (12,135,798) 10,516,999
________________ ________________
Total Increase (Decrease) in Net Assets.......................... (7,617,412) 5,949,000
NET ASSETS:
Beginning of Period.................................................. 365,147,606 359,198,606
________________ ________________
End of Period........................................................ $357,530,194 $365,147,606
=============== ================
UNDISTRIBUTED INVESTMENT INCOME_NET.................................... $ 43,247 ___
________________ ________________
Shares Shares
________________ ________________
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 3,633,364 4,275,135
Shares issued for dividends reinvested............................... 934,197 783,299
Shares redeemed...................................................... (5,250,188) (4,479,706)
________________ ________________
Net Increase (Decrease) in Shares Outstanding...................... (682,627) 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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended May 31,
_____________________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $17.83 $18.05 $17.71 $18.06 $17.22
______ ______ ______ ______ ______
Investment Operations:
Investment income_net.................... .83 .85 .86 .88 .94
Net realized and unrealized gain (loss)
on investments......................... .41 (.22) .34 (.31) .94
______ ______ ______ ______ ______
Total from Investment Operations......... 1.24 .63 1.20 .57 1.88
______ ______ ______ ______ ______
Distributions:
Dividends from investment income_net...... (.83) (.85) (.86) (.89) (.93)
Dividends from net realized gain on investments (.18) __ __ (.03) (.11)
______ ______ ______ ______ ______
Total Distributions........................ (1.01) (.85) (.86) (.92) (1.04)
______ ______ ______ ______ ______
Net asset value, end of period.............. $18.06 $17.83 $18.05 $17.71 $18.06
====== ======= ======= ======= ========
TOTAL INVESTMENT RETURN.................. 7.12% 3.52% 7.04% 3.11% 11.22%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. .80% .84% .96% .89% .85%
Ratio of net investment income
to average net assets................... 4.64% 4.69% 4.91% 4.81% 5.25%
Decrease reflected in above expense ratios
due to undertakings by the Manager........ .16% .12% -- .08% .15%
Portfolio Turnover Rate................. 45.29% 47.48% 29.78% 20.19% 17.05%
Net Assets, end of period (000's Omitted) $357,530 $365,148 $359,199 $392,143 $318,139
</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") is the distributor of the Fund's shares, which are sold to the
public without a sales load.
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 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_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (`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. For the period ended May
31, 1997, the Fund did not borrow under the Facility.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3_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 that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings, commitment fees and
extraordinary expenses, exceed 11\2% of the average value of the Fund's
average net assets, the Fund may deduct from payments to be made to the
Manager, or the Manager will bear such excess expense. The Manager has
undertaken from June 1, 1996 through May 31, 1998 to reduce the management
fee paid by 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 $574,292 during
the period ended May 31, 1997.
(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 period ended May 31,
1997, $907,806 was charged to the Fund pursuant to the Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $142,697 during the period ended May 31, 1997.
(C) Each trustee who is not an "affiliated person" as defined in the Act,
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(D) Effective November 4, 1996, a 1% redemption fee is charged on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than a
fifteen days following the date of issuance. During the period ended May 31,
1997, redemption fees amounted to $596.
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended May 31, 1997
amounted to $160,279,062 and $172,229,331, respectively.
At May 31, 1997, accumulated net unrealized appreciation on investments
was $9,898,726, consisting of $10,261,815 gross unrealized appreciation and
$363,089 gross unrealized depreciation.
At May 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
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, 1997, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 1997 by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New York Tax Exempt Intermediate Bond Fund at May 31,
1997, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
July 1, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended May 31, 1997:
_ all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal and, for individuals
who are New York residents, New York State and New York City personal income
taxes), and
_ the Fund hereby designates $.1779 per share as a long-term capital gain
distribution of the $.1790 per share paid on December 5, 1996.
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 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
[Dreyfus lion "d" logo]
Registration Mark
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 705AR975
[Dreyfus logo]
Registration Mark
New York
Tax Exempt
Intermediate
Bond Fund
Annual Report
May 31, 1997
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
5/31/97 22,119 19,757
*Source: Lehman Brothers
