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 the 12-month period ended May 31, 1998. Your
Fund produced a total return, including share price changes and dividend income
generated, of 8.25%,* and an annualized tax-free distribution rate per share of
4.39%.**
Economic Review
In recent months, economic developments overseas began to assert a more
vigorous influence on the U.S. economy. The first quarter of the 1998 calendar
year saw the U.S. trade deficit rising to a new high. Exports contracted due to
reduced foreign demand for U.S. products, which resulted in a marked rise in
business inventories that could create a drag on future production as stockpiles
are depleted. At the same time, imports surged. Spurred by a strong U.S. dollar
and robust consumer spending, the increase in cheaper imports helped dampen
domestic inflation since American producers had to restrain their prices in
order to remain competitive. The suppressive effect of the trade deficit on both
domestic production and prices has been fortuitously in concert with the
direction of Federal Reserve Board (the Fed) monetary policy.
The financial difficulties that began in Asia last year have now spread to
Latin America and beyond. That tenuous situation and the continued economic
instability in Russia have contributed to the Fed' s status quo policy in
monetary matters since the Fed is concerned that any increase in short-term
interest rates would further unsettle world markets. The last increase in
short-term rates came in March 1997 when the Federal Open Market Committee (the
policy-making arm of the Fed) raised the target rate for Federal Funds by one
quarter of a percent to 5.5%. (The Federal Funds rate is the rate of interest
that banks charge each other for the use of Federal Funds.)
Consumers, spurred by real wage gains and a healthy job market, continued to
spend freely in the retail sector during the reporting period, giving retailers
some of their best months in a decade. The buoyant stock market, low
unemployment rate and absence of inflation encouraged consumers to spend. The
market for so-called "big ticket" items has been strong: the housing market was
solid throughout the reporting period and continues to be, while car and truck
sales are at ten-year highs.
Unemployment (4.3% at the end of the reporting period) is at a 28-year low.
Inflation, at both consumer and producer levels, has been dormant. Workers are
benefiting from having their wages rise faster than inflation. The most recently
reported statistics on hourly wages (through April) revealed that over the
previous 12 months, wages rose 4.4% while the Consumer Price Index increased but
1.4% . The tight labor market and upward pressure on wages, because of their
potential for rekindling inflation, have been major concerns of the Fed. The
wage rate increase of 4.4% (above) , compared to 3.7% and 3.1% in the two
previous years, illustrates the upward creep of wages.
Over the past few years, gains in worker productivity (output per hour of
work) have offset any incipient price pressures from rising wages. Enhanced by
the widespread use of technology, productivity rose 1.7% last year and 1.9% in
1996, compared to an average increase of only 1% for the period 1974-1995. These
gains are a key factor in the continuation of our high-growth, low-inflation
economy. However, productivity gains slowed to 1.1% during the first quarter,
the slowest pace in over a year. So far, our economy has been in a charmed
circle where even international financial crises have proven supportive of our
economic policies. As always, we remain alert for warning signs that the
delicate balance that now prevails in the economy might be disturbed.
Market Environment
The market environment for bonds has been very constructive. During the last
six months, yields on long-term, high-grade tax-exempt bonds have declined
marginally, while U.S. Treasury bond yields fell by over one-quarter of a
percent. Certainly, it has been the uncertain impact of the Asian financial
crisis that has kept the Fed from pushing rates higher despite strong domestic
economic data. Spurred by the drop in rates, the issuance of new municipal
securities surged during the last several months. In fact, the volume of new
issuance in 1997 rose 20% over the previous year, marking it as one of the most
prolific years of issuance in history. So far, 1998 is on course to eclipse last
year's pace: through May, volume is up 50% from the previous year.
We believe that it is still too early to draw any conclusions regarding how
much the Asian crisis will impact the U.S. economy. Until a clearer picture
emerges from Asia, we believe investors will continue to find fixed-income
investments attractive. The still strong and expanding economy would normally be
a cause for concern to inflation watchers. However, it is generally believed
that the Fed will refrain from taking any interest rate actions that could
exacerbate the Asian situation. We share this view. While the most recent
economic and employment data have been indicative of a strengthening economy,
inflation remains quiescent.
The fixed-income markets have now weathered the period of seasonal price
weakness that results from large debt issuance. Traditionally, as summer
approaches, the pressure from too much new-issue supply begins to abate. Given
this fact and the reasons cited above, we believe that the current environment
supports an outlook for steady monetary policy and well-anchored interest rates.
As long as inflation growth remains low, we don't anticipate the Fed reacting to
strong employment and economic data by raising rates. Instead, we believe that
the events in Asia, Russia and other emerging countries will be more
influential.
Portfolio Overview
We took several approaches over the past year in response to the trading range
that the market established. We maintained a significant base of high income
producing issues which we believe helps stabilize the portfolio through up and
down cycles. At times we found it advantageous to add to the weighting of
discount paper, particularly as Treasury yields were approaching the 6% level.
As we have discussed in previous letters, the intermediate sector of the curve
continues to provide the investor with returns that are very competitive when
compared to the longer market. The New York investor was clearly a beneficiary
of the record issuance that was brought to market over the past six months. As
supply increased, we were given opportunities to enhance yield, spread and
quality. Issues that, in the past, would command a premium to the general market
were trading on national levels. An ongoing problem for state-specific funds is
finding investment diversity. The issuance of $3 billion bonds by the Long
Island Power Authority provided the market with a new name and the largest
single issuance of tax-exempt debt in history. The success of such a large issue
clearly indicates how much demand is in the municipal market. We continue to
look for opportunities that will enhance the portfolio's performance. The
improvement in the New York State economy has resulted in credit rating upgrades
for the State and its appropriated debt, as well as for New York City. The
portfolio has seen these upgrades translated into higher prices for the numerous
state and city issues that it holds. We are pleased to inform you that the
Fund' s one-year total return as of 5/31/98 of 8.25% compared very favorably to
the Lipper New York Intermediate Municipal Debt Funds Category Average of 7.51%
over the same period.***
Included with this report are financial statements relating to your Fund's
holdings and its financial condition. We hope you find them informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends any capital gains paid. Income
may be subject to state and local income taxes for non-New York residents
**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 capital gain distributions.
Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Yield, share price and
investment return fluctuate such that an investor may receive more or less than
original cost upon redemption. Past performance is no guarantee of future
results.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND MAY 31, 1998
- -----------------------------------------------------------------------------
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
$22,296
Lehman Brothers 10-Year Municipal
Bond Index*
Dollars
$20,468
<TABLE>
Dreyfus New York Tax Exempt Intermediate Bond Fund
*Source: Lehman Brothers
Average Annual Total Returns
- -----------------------------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
May 31, 1998 May 31, 1998 May 31, 1998
____________________ ____________________ __________________________
<S> <C> <C> <C>
8.25% 5.79% 7.43%
- ------------------------
</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 5/31/88 to a $10,000 investment made in the
Lehman Brothers 10-Year Municipal Bond Index on that date. 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, coupled with the
potentially longer maturity of the Index, 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>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
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STATEMENT OF INVESTMENTS MAY 31, 1998
Principal
Long-Term Municipal Investments--99.7% Amount Value
- -------------------------------------------------------
_____________ _____________
<S> <C> <C>
New York--90.6%
Albany Parking Authority, Parking Revenue, Refunding:
6.50%, 11/1/2004 $ 1,000,000 $ 1,083,160
6.70%, 11/1/2006 1,000,000 1,096,790
Battery Park City Authority, Revenue, Refunding
5.125%, 11/1/2005 3,830,000 4,006,525
Buffalo Municipal Water Finance Authority, Water System Revenue
5.50%, 7/1/2005 (Insured; FSA) 1,200,000 1,282,764
City University of New York, COP, Refunding (John Jay College)
5.75%, 8/15/2004 5,000,000 5,340,600
Development Authority of the North Country, Solid Waste Management System
Revenue
6.40%, 7/1/2000 (Prerefunded 7/1/1999) (a) 605,000 633,114
Franklin Solid Waste Management Authority, Solid Waste System Revenue
6%, 6/1/2005 (Prerefunded 6/1/2003) (a) 1,515,000 1,661,925
Housing New York Corp., Revenue, Refunding
5.50%, 11/1/2010 2,000,000 2,070,060
Long Island Power Authority, Electric System General Revenue:
5.25%, 12/1/2001 8,000,000 8,305,520
5.25%, 12/1/2002 6,100,000 6,370,596
Metropolitan Transportation Authority
Transit Facilities Revenue:
5.50%, 7/1/2008 (Insured; MBIA) 4,380,000 4,593,131
5.625%, 7/1/2010 (Insured; MBIA) 4,895,000 5,191,637
Nassau County, Refunding:
6%, 7/1/2010 (Insured; FGIC) 5,225,000 5,915,484
General Improvement 4.75%, 9/1/2010 (Insured; FGIC) 3,475,000 3,501,931
New York City:
5%, 6/1/2001 1,125,000 1,150,481
5.25%, 8/1/2011 3,000,000 3,067,260
Refunding:
5.75%, 8/1/2002 (Insured; MBIA) 4,200,000 4,458,048
5.40%, 2/15/2003 4,500,000 4,698,045
6.25%, 8/1/2009 3,225,000 3,512,605
6.25%, 8/1/2009 4,790,000 5,355,124
5.90%, 8/1/2010 5,000,000 5,400,000
5.25%, 8/1/2011 2,000,000 2,046,340
5%, 8/1/2012 5,500,000 5,474,755
New York City Housing Authority, Multi-Family Revenue, Refunding
5.20%, 7/1/2004 (Insured; AMBAC) 2,275,000 2,340,475
New York City Housing Development Corp., MFHR
5.50%, 11/1/2009 6,750,000 7,016,558
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
_
New York (continued)
New York City Industrial Development Agency,
Civic Facility Revenue (College of Aeronautics Project):
5.10%, 5/1/2008 (b) $ 500,000 $ 500,325
5.25%, 5/1/2010 (b) 555,000 554,978
5.30%, 5/1/2011 (b) 585,000 585,743
New York City Municipal Water Finance Authority, Water and Sewer System Revenue
5.55%, 6/15/2001 1,500,000 1,562,490
6.60%, 6/15/2002 1,495,000 1,606,572
6.60%, 6/15/2002 (Prerefunded 6/15/2001) (a) 1,505,000 1,628,741
New York State, Refunding:
5.50%, 8/15/2006 4,300,000 4,617,899
5.40%, 10/1/2008 1,430,000 1,527,154
New York State Dormitory Authority, Revenue:
(City University):
5.70%, 7/1/2005 3,500,000 3,732,680
5.25%, 7/1/2006 (Insured; FGIC) 3,000,000 3,176,040
5.75%, 7/1/2009 8,085,000 8,749,991
(Cornell University) Refunding 5.40%, 7/1/2009 4,000,000 4,306,000
(Department of Health):
6%, 7/1/2005 2,500,000 2,712,700
6%, 7/1/2006 2,350,000 2,556,777
Refunding 5.50%, 7/1/2005 1,000,000 1,055,110
(Highland Community Development Corp.)
5.50%, 7/1/2001 (LOC; Marine Midland Bank) (c) 4,750,000 4,903,330
(Mental Health Services Facilities):
6%, 8/15/2006 3,320,000 3,642,936
Refunding 6%, 2/15/2007 5,640,000 6,190,408
Secured Hospital:
(The Brookdale Hospital Medical Center)
Refunding 5.10%, 2/15/2011 4,040,000 4,065,896
(Interfaith Medical Center)
5.375%, 2/15/2012 4,340,000 4,428,536
(State Service Contract-Albany County):
5.10%, 4/1/2010 2,310,000 2,343,079
5.25%, 4/1/2011 1,210,000 1,232,361
(State University Educational Facilities):
6.10%, 5/15/2005 (Prerefunded 5/15/2003) (a) 2,630,000 2,898,786
6.10%, 5/15/2008 (Prerefunded 5/15/2004) (a) 2,000,000 2,228,060
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 5,585,739
5.40%, 4/1/2005 (Insured; CMAC) (d) 2,000,000 2,118,100
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
New York (continued)
New York State Environmental Facilities Corp.,
PCR:
Special Obligation:
(Riverbank State Park) 7.10%, 4/1/2002 $ 1,130,000 $ 1,250,684
(State Park Infrastructure) 5.75%, 3/15/2008 2,475,000 2,606,645
(State Water Revolving Fund):
7.30%, 6/15/2001 4,000,000 4,329,000
6.30%, 6/15/2002 (Prerefunded 6/15/2001) (a) 2,355,000 2,550,865
6.30%, 6/15/2002 645,000 697,193
6.20%, 3/15/2004 1,700,000 1,859,936
(New York Municipal Water Finance Authority Project):
6.35%, 6/15/2006 (Prerefunded 6/15/2004) (a) 1,195,000 1,345,833
6.35%, 6/15/2006 805,000 899,966
4.90%, 6/15/2010 (Insured; MBIA) 3,500,000 3,567,830
New York State Housing Finance Agency, Revenue, Refunding:
(Health Facilities-New York City):
7.90%, 11/1/1999 900,000 935,847
6%, 11/1/2006 12,450,000 13,573,488
(Housing Mortgage Project)
5.875%, 11/1/2010 (Insured; FSA) 3,930,000 4,237,680
(Service Contract Obligation):
5.25%, 3/15/2011 3,465,000 3,538,112
5.25%, 9/15/2011 3,610,000 3,686,171
New York State Local Government Assistance Corp.:
6.70%, 4/1/2000 25,000 26,245
6.70%, 4/1/2000 2,465,000 2,583,936
6.75%, 4/1/2002 2,500,000 2,708,275
New York State Medical Care Facilities Finance Agency, Revenue:
(Hospital and Nursing Home) 5.875%, 2/15/2008 (Insured; FHA) 2,215,000 2,368,012
(Mortgage Project) 5.40%, 8/15/2005 (Insured; FHA) 995,000 1,047,675
New York State Mortgage Agency, Revenue (Homeowner Mortgage):
6.15%, 10/1/2001 1,225,000 1,281,632
5.20%, 10/1/2008 1,320,000 1,359,402
5.30%, 10/1/2009 2,645,000 2,718,372
New York State Power Authority, General Purpose Revenue
6.50%, 1/1/2004 (Prerefunded 1/1/2001) (a) 2,735,000 2,950,463
New York State Thruway Authority:
(Emergency Highway Reconditioning and Preservation)
6%, 1/1/2002 (Insured; FSA) 2,000,000 2,123,480
General Revenue 5.70%, 1/1/2008 (Insured; FGIC) 3,000,000 3,253,290
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
New York (continued)
New York State Thruway Authority (continued):
(Highway and Bridge Trust Fund):
5.25%, 4/1/2009 (Insured; FGIC) $ 4,500,000 $ 4,762,935
5.30%, 4/1/2010 (Insured; AMBAC) 1,680,000 1,765,327
Service Contract Revenue (Local Highway and Bridge):
5.50%, 4/1/2004 1,130,000 1,189,754
5.625%, 4/1/2007 3,315,000 3,532,000
5.90%, 4/1/2007 7,000,000 7,583,520
New York State Urban Development Corp.
Refunding, Project (Onondaga County Convention):
6.25%, 1/1/2007 1,725,000 1,906,953
6.25%, 1/1/2008 1,830,000 2,023,779
6.25%, 1/1/2009 1,950,000 2,149,934
6.25%, 1/1/2010 2,065,000 2,267,019
Onondaga County Industrial Development Agency, PCR, Refunding
(Anheuser-Busch Co. Inc. Project) 6.625%, 8/1/2006 4,000,000 4,530,240
Port Authority of New York and New Jersey:
6%, 7/15/2006 (Insured; FGIC) 1,625,000 1,795,121
Special Project Bonds (JFK International Air Terminal LLC Project)
6.25%, 12/1/2011 (Insured; MBIA) 8,000,000 9,181,840
Rensselaer Industrial Development Agency, IDR (Albany International Corp.)
7.55%, 6/1/2007 (LOC; Fleet Trust Co.) (c) 2,000,000 2,401,420
Suffolk County Water Authority, Waterworks Revenue, Refunding
5.10%, 6/1/2003 (Insured; MBIA) 3,545,000 3,695,804
Syracuse:
COP
(Syracuse Hancock International Airport):
6.50%, 1/1/2004 1,045,000 1,132,770
6.60%, 1/1/2005 1,105,000 1,204,903
6.70%, 1/1/2007 1,210,000 1,319,989
Public Improvement:
5.70%, 6/15/2004 1,850,000 1,983,459
5.70%, 6/15/2005 1,830,000 1,954,257
Syracuse Industrial Development Agency, Pilot Revenue, Refunding
5.125%, 10/15/2002 (LOC; ABN AMRO Bank) (c) 3,000,000 3,084,990
Town of Hempstead Industrial Development Agency, RRR
(American Fuel Co. Project) 5%, 12/1/2009 (Insured; MBIA) 10,445,000 10,746,129
United Nations Development Corp., Refunding (Senior Lien):
5%, 7/1/2007 1,000,000 1,004,110
5.30%, 7/1/2010 1,295,000 1,300,983
5.30%, 7/1/2011 1,000,000 1,003,610
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
New York (continued)
Westchester County Industrial Development Agency, RRR:
Equity (Westchester Resco Co. Project) 5.50%, 7/1/2009 $ 2,650,000 $ 2,749,587
Refunding (Resco Co. Project) 5.50%, 7/1/2006 (Insured; AMBAC) 2,850,000 3,036,048
(Westchester Resco Co. Project) 5.125%, 7/1/2006 (Insured; AMBAC) 1,000,000 1,040,910
Yonkers,
GO:
5%, 9/1/2009 (Insured; FGIC) 1,040,000 1,073,384
5%, 9/1/2010 (Insured; FGIC) 1,165,000 1,196,222
5%, Series A, 9/1/2011 (Insured; FGIC) 1,000,000 1,018,030
5%, Series B, 9/1/2011 (Insured; FGIC) 1,000,000 1,018,030
U.S. Related--9.1%
Commonwealth of Puerto Rico, Refunding:
Improvement 5.375%, 7/1/2005 2,250,000 2,377,350
Public Improvement 5.50%, 7/1/2011 2,500,000 2,669,750
Puerto Rico Electric Power Authority, Power Revenue
5.50%, 7/1/2009 (Insured; MBIA) 6,065,000 6,614,610
Puerto Rico Highway and Transportation Authority, Highway Revenue
6.25%, 7/1/2007 (Insured; MBIA) 3,500,000 3,989,055
Puerto Rico Public Buildings Authority, Revenue
(Guaranteed Government Facilities)
6.25%, 7/1/2008 (Insured; AMBAC) 3,730,000 4,283,868
Puerto Rico Telephone Authority, Revenue
6.393%, 1/25/2007 (Insured; MBIA) (e) 3,925,000 4,297,875
Virgin Islands, Subordinated Special Tax (Insurance Claims Fund Program,
GO Matching Fund) 5.65%, 10/1/2003 (Prerefunded 10/1/2001) (a) 3,610,000 3,754,328
Virgin Islands Public Finance Authority, Revenue, Refunding
Fund Loan Notes:
Matching 6.80%, 10/1/2000 1,500,000 1,596,270
Senior Lien 5.50%, 10/1/2004 3,000,000 3,150,150
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $339,722,351) $358,969,704
=============
Short-Term Municipal Investment--.3%
- -------------------------------------------------------
New York;
New York City, VRDN 4% (LOC; Morgan Guaranty Trust Co.) (c,f)
(cost $1,000,000) $ 1,000,000 $ 1,000,000
=============
TOTAL INVESTMENTS--100.0%
(cost $340,722,351) $359,969,704
=============
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
CMAC Capital Market Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GO General Obligation RRR Resources Recovery Revenue
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch (g) or Moody's or Standard & Poor's Percentage of Value
_______ ________ _________________ ___________________
AAA Aaa AAA 32.3%
AA Aa AA 10.4
A A A 36.7
BBB Baa BBB 18.4
F1 MIG1/P1 SP1/A1 .3
Not Rated (h) Not Rated (h) Not Rated (h) 1.9
_______
100.0%
=======
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) Purchased on a delayed-delivery basis.
(c) Secured by letters of credit.
(d) Wholly held in a segregated account as collateral for delayed-delivery
security.
(e) Inverse floater security-the interest rate is subject to change
periodically.
(f) 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.
(g) Fitch currently provides creditworthiness information for a limited number
of investments.
(h) 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>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1998
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $340,722,351 $359,969,704
Cash 1,497,239
Interest receivable 5,926,709
Receivable for shares of Beneficial Interest subscribed 50,000
Prepaid expenses 7,782
_____________
367,451,434
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 219,974
Due to Distributor 9,141
Payable for investment securities purchased 1,651,181
Accrued expenses 89,957
_____________
1,970,253
_____________
NET ASSETS $365,481,181
=============
REPRESENTED BY: Paid-in capital $343,912,104
Accumulated undistributed investment income--net 84,709
Accumulated net realized gain (loss) on investments 2,237,015
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 19,247,353
_____________
NET ASSETS $365,481,181
=============
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) 19,623,184
NET ASSET VALUE, offering and redemption price per share--Note 3(d) $18.62
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income $19,010,847
EXPENSES: Management fee--Note 3(a) $ 2,175,985
Shareholder servicing costs--Note 3(b) 1,108,578
Directors' fees and expenses--Note 3(c) 38,681
Professional fees 37,994
Custodian fees 37,422
Prospectus and shareholders' reports 18,845
Registration fees 8,890
Loan commitment fees--Note 2 3,622
Miscellaneous 21,965
____________
Total Expenses 3,451,982
Less--reduction in management fee due to
undertaking--Note 3(a) (547,047)
____________
Net Expenses 2,904,935
____________
INVESTMENT INCOME--NET 16,105,912
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments $ 3,305,521
Net unrealized appreciation (depreciation) on investments 9,348,627
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 12,654,148
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $28,760,060
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
May 31, 1998 May 31, 1997
_____________ _____________
<S> <C> <C>
OPERATIONS:
Investment income--net $ 16,105,912 $ 16,777,175
Net realized gain (loss) on investments 3,305,521 2,015,059
Net unrealized appreciation (depreciation) on investments 9,348,627 6,021,385
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations 28,760,060 24,813,619
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (16,064,450) (16,733,928)
Net realized gain on investments (1,654,760) (3,561,305)
_____________ _____________
Total Dividends (17,719,210) (20,295,233)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold 62,436,901 65,461,930
Dividends reinvested 14,469,657 16,872,078
Cost of shares redeemed (79,996,421) (94,469,806)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (3,089,863) (12,135,798)
_____________ _____________
Total Increase (Decrease) in Net Assets 7,950,987 (7,617,412)
NET ASSETS:
Beginning of Period 357,530,194 365,147,606
_____________ _____________
End of Period $365,481,181 $357,530,194
============= =============
UNDISTRIBUTED INVESTMENT INCOME--NET $ 84,709 $ 43,247
_____________ _____________
CAPITAL SHARE TRANSACTIONS: Shares Shares
_____________ _____________
Shares sold 3,369,699 3,633,364
Shares issued for dividends reinvested 781,618 934,197
Shares redeemed (4,322,391) (5,250,188)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding (171,074) (682,627)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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.
Year Ended May 31,
_____________________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $18.06 $17.83 $18.05 $17.71 $18.06
______ ______ ______ ______ ______
Investment Operations:
Investment income--net .82 .83 .85 .86 .88
Net realized and unrealized gain (loss)
on investments .65 .41 (.22) .34 (.31)
______ ______ ______ ______ ______
Total from Investment Operations 1.47 1.24 .63 1.20 .57
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net (.82) (.83) (.85) (.86) (.89)
Dividends from net realized gain on investments (.09) (.18) -- -- (.03)
______ ______ ______ ______ ______
Total Distributions (.91) (1.01) (.85) (.86) (.92)
______ ______ ______ ______ ______
Net asset value, end of period $18.62 $18.06 $17.83 $18.05 $17.71
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 8.25% 7.12% 3.52% 7.04% 3.11%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .80% .80% .84% .96% .89%
Ratio of net investment income
to average net assets 4.44% 4.64% 4.69% 4.91% 4.81%
Decrease reflected in above expense ratios
due to undertakings by manager .15% .16% .12% -- .08%
Portfolio Turnover Rate 42.40% 45.29% 47.48% 29.78% 20.19%
Net assets, end of period (000's Omitted) $365,481 $357,530 $365,148 $359,199 $392,143
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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. Under the terms of the custodian
agreement, the Fund received net earnings credits of $24,733 during the period
ended May 31, 1998 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. 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 DREYFUS NEW YORK TAX
EXEMPT INTERMEDIATE BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
based on prevailing market rates in effect at the time of borrowings. During the
period ended May 31, 1998, the Fund did not borrow under the Facility.
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 11-1/2% of the value of the Fund's average daily 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, 1997
hrough 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 $547,047 during the period ended May 31, 1998.
(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 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, 1998, the Fund was charged $909,683 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. During the period
ended May 31, 1998, the Fund was charged $134,225 pursuant to the transfer
agency agreement.
(C) Each trustee who is not an "affiliated person" as defined in the Act,
receives from the Fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(D) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through the 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 fifteen
days following the date of issuance. During the period ended May 31, 1998,
redemption fees amounted to $996.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended May 31, 1998 amounted
to $149,894,626 and $152,709,735, respectively.
At May 31, 1998, accumulated net unrealized appreciation on investments was
$19,247,353, consisting of $19,315,921 gross unrealized appreciation and $68,568
gross unrealized depreciation.
At May 31, 1998, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
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, 1998, 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, 1998 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, 1998, 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, 1998
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended May 31, 1998:
--all the dividends paid from investment income-net are "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), and
--the Fund hereby designates $.0467 per share as a long-term capital gain
distribution (of which 32.54% is subject to the 20% maximum Federal tax rate) of
the $.0850 per share paid on December 4, 1997.
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
gains distributions (if any) paid for the 1998 calendar year on Form 1099-DIV
which will be mailed by January 31, 1999.
[dreyfus lion "d" logo] (reg.tm)
[dreyfus logo] (reg.tm)
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. 705AR985
New York
Tax Exempt
Intermediate
Bond Fund
Annual Report
May 31, 1998
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
5/31/88 10,000 10,000
5/31/89 10,982 10,924
5/31/90 11,790 11,600
5/31/91 13,015 12,660
5/31/92 14,225 13,890
5/31/93 15,978 15,449
5/31/94 16,525 15,930
5/31/95 18,010 17,051
5/31/96 18,862 17,651
5/31/97 20,403 18,907
5/31/98 22,296 20,468
*Source: Lehman Brothers
