Dreyfus New York Tax Exempt Intermediate Bond Fund
ANNUAL REPORT
May 31, 1999
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- --------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
18 Financial Highlights
19 Notes to Financial Statements
23 Report of Independent Auditors
24 Important Tax Information
FOR MORE INFORMATION
- --------------------------------------------------------
Back Cover
<PAGE>
Dreyfus New York The Fund
Tax Exempt Intermediate Bond Fund
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this annual report for Dreyfus New York Tax Exempt
Intermediate Bond Fund, covering the 12-month period from June 1, 1998 through
May 31, 1999. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Monica Wieboldt.
Lower short-term interest rates adopted by the Federal Reserve Board and other
central banks in the fall of 1998 appear to have helped many U.S. businesses
withstand the effects of economic weakness in Japan, Asia and Latin America. At
the same time, the U.S. economy has entered its eighth year of expansion in an
environment characterized by low inflation and high levels of consumer spending.
Tax-exempt fixed-income securities generally provided good results relative to
taxable U.S. Treasury securities over the past year. This was especially true
during much of the second half of the reporting period. While prices of U.S.
Treasury securities declined significantly over the first five months of 1999, a
lack of new issuance relative to robust investor demand supported most municipal
bond prices.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus New York Tax Exempt Intermediate Bond Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 14, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Monica Wieboldt, Portfolio Manager
How did Dreyfus New York Tax Exempt Intermediate Bond Fund perform during the
period?
The fund produced a 3.75% total return over the one-year period ended May 31,
1999,1 compared to a 3.88 % total return for the average of the Lipper New York
Intermediate Municipal Debt Funds category.2
We attribute the fund's performance to its focus on higher-quality,
intermediate-term municipal bonds issued by New York state, its municipalities
and authorities. We have maintained that focus because lower-rated issues have
remained expensive compared to securities with high credit ratings. In addition,
higher rated securities tend to be more liquid, making them easier to buy and
sell as market conditions change and giving the fund more flexibility to react
in a weak market.
What is the fund's investment approach?
The fund's goal is to seek a high level of triple-tax-exempt income for the New
York resident generated from a diversified portfolio of intermediate-term
municipal bonds from New York issuers. In addition, we seek a competitive total
return.
In pursuit of these objectives, we employ several strategies. The fund always
maintains a large position in income producing paper, which we view as a core
position. This provides the portfolio with a strong income component and a
relatively stable base.
We attempt to add value by selecting the tax-exempt bonds that we believe are
most likely to provide the highest total returns -- which include both
tax-exempt income and potential capital appreciation.
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
What other factors influenced the fund's performance?
When the Asian currency and credit crisis spread to Latin America just prior to
the start of the reporting period, investors flocked to U.S. Treasury
securities. As a result, yields on taxable Treasuries fell to levels that were
roughly equivalent to yields on comparable tax-exempt bonds.
However, the Federal Reserve Board and other central banks moved quickly to
stimulate global economic growth by reducing key short-term interest rates.
Because lower short-term interest rates had the potential to reignite
inflationary pressures, yields on intermediate- and long-term bonds rose.
However, the extent of that rise was much greater for taxable U.S. Treasury
securities than for tax-free municipal bonds. Similarly, yields of
intermediate-term municipal bonds rose more than yields of long-term municipal
bonds, primarily because of supply-and-demand factors.
Because of strong economic conditions throughout the country, New York state and
its municipalities have had less need to borrow. As a result, fewer tax-exempt
bonds were issued in New York over the past six months than in the same period
one year ago. Yet, demand from individual investors seeking to minimize their
income tax liabilities remained high. This imbalance between supply and demand
helped municipal bond prices decline less than U.S. Treasury bond prices, as
measured by major market indices and benchmarks. However, supply in the
intermediate-term sector of the marketplace was greater than in the long-term
sector, accounting for many of the differences in performance between the two
segments.
4
<PAGE>
What is the fund's current strategy?
We have continued to search for the most attractive values in New York's
municipal bond market. We have found such values, in our opinion, primarily in
higher-quality, intermediate-term bonds. Intermediate-term bonds have continued
to provide most of the yield of their longer-term counterparts, but with
substantially less volatility. We have also found attractive values in smaller,
non-rated issues, including school districts and small colleges. The current
interest-rate environment gives us the opportunity to increase coupon and call
protection. It also affords us the chance to re-evaluate the benefits of adding
discount and lower-rated paper, which will come under pressure and represent
value.
June 14, 1999
1 Total return includes reinvestment of dividends and any capital gains paid.
Past performance is no guarantee of future results. Share price and investment
return fluctuate such that upon redemption fund shares may be worth more or
less than their original cost. Income may be subject to state and local taxes
for non-New York residents, and some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders. Capital gains, if any,
are fully taxable.
2 Source: Lipper Analytical Services, Inc.
The Fund 5
<PAGE>
FUND PERFORMANCE
$21,239 Lehman Brothers 10-Year Municipal Bond Index*
$19,439 Dreyfus New York Tax Exempt Intermediate Bond Fund
[chart information to come . . .]
Comparison of change in value of $10,000 investment in the fund and the Lehman
Brothers Municipal Bond Index
- -------------------------------------------------------------------------------
Average Annual Total Returns as of 5/31/99
1 Year 5 Years Ten Years
- -------------------------------------------------------------------------------
Fund 3.75% 5.92% 6.87%
* Source: Lehman Brothers
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 5/31/89 to a $10,000 investment made in the
Lehman Brothers 10-Year Municipal Bond Index on that date. All dividends and
capital gain distributions are reinvested.
The fund invests primarily in New York municipal securities and maintains a
portfolio with a weighted-average maturity ranging between 3 and 10 years. The
fund's performance shown in the line graph takes into account fees and expenses.
The Lehman Brothers 10-year Municipal Bond Index is not limited to investments
principally in New York municipal obligations and does not take into account
charges, fees and other expenses. The Lehman Brothers 10-Year Municipal Bond
Index, unlike the fund, is an unmanaged total return performance benchmark for
the investment-grade, geographically unrestricted 10-year tax exempt bond
market, consisting of municipal bonds with maturities of 9-12 years. These
factors, coupled with the potentially longer maturity of the Index, can
contribute to the Index potentially outperforming or underperforming the fund.
Further information relating to fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
6
<PAGE>
STATEMENT OF INVESTMENTS
May 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Principal
Long-Term Municipal Investments--98.6% Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
New York--91.4%
Albany Parking Authority, Parking Revenue:
6.50%, 11/1/2004 1,000,000 1,069,470
6.70%, 11/1/2006 1,000,000 1,078,950
Battery Park City Authority, Revenue
5.125%, 11/1/2005 3,830,000 4,004,533
Buffalo Municipal Water Finance Authority,
Water System Revenue
5.50%, 7/1/2005 (Insured; FSA) 1,200,000 1,277,112
Cattaraugus County Industrial Development Agency,
Civic Facility Revenue (St. Bonaventure University Project):
5%, Series A, 9/15/2009 745,000 738,742
5%, Series B, 9/15/2009 1,055,000 1,046,138
5%, Series A, 9/15/2010 740,000 725,873
5%, Series B, 9/15/2010 1,110,000 1,088,810
5%, Series A, 9/15/2011 825,000 801,694
5%, Series B, 9/15/2011 1,160,000 1,127,230
5%, 9/15/2012 1,225,000 1,181,659
City University of New York, COP (John Jay College)
5.75%, 8/15/2004 5,000,000 5,317,050
Development Authority of the North Country,
Solid Waste Management System Revenue
6.40%, 7/1/2000 (Prerefunded 7/1/1999)a 605,000 618,625
Franklin Solid Waste Management Authority,
Solid Waste System Revenue
6%, 6/1/2005 (Prerefunded 6/1/2003)a 1,515,000 1,647,032
Huntington Housing Authority, Senior Housing Facility Revenue
(Gurwin Jewish Senior Residences) 5.50%, 5/1/2009 2,660,000 2,655,850
Long Island Power Authority, Electric System General Revenue
5.25%, 12/1/2002 6,100,000 6,330,092
Metropolitan Transportation Authority
Transit Facilities Revenue:
5.50%, 7/1/2008 (Insured; MBIA) 4,380,000 4,561,507
5.625%, 7/1/2010 (Insured; MBIA) 4,895,000 5,171,323
Nassau County, General Improvement
5.10%, 11/1/2011 (Insured; AMBAC) 3,725,000 3,804,938
New York City:
5.75%, 8/1/2002 (Insured; MBIA) 70,000 73,967
5.75%, 8/1/2002 (Insured; MBIA) 4,130,000 4,352,690
5.40%, 2/15/2003 4,500,000 4,693,500
6.25%, 8/1/2009 (Prerefunded 8/1/2004)a 155,000 171,850
6.25%, 8/1/2009 3,070,000 3,365,334
6.25%, 8/1/2009 4,790,000 5,316,708
5.90%, 8/1/2010 5,000,000 5,385,700
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
New York City (continued):
5.25%, 8/1/2011 3,000,000 3,065,040
4.875%, 8/1/2014 (Insured; FGIC) 3,345,000 3,284,957
New York City Municipal Assistance Corporation
5.25%, 7/1/2008 2,000,000 2,110,060
New York City Housing Authority, Multi-Family Revenue
5.20%, 7/1/2004 (Insured; AMBAC) 2,275,000 2,337,380
New York City Industrial Development Agency,
Industrial Development Revenue (Field Hotel Associates L.P.
JFK Project) 5.80%, 11/1/2013 6,000,000 6,009,600
New York City Housing Development Corp., MFHR
5.50%, 11/1/2009 6,530,000 6,951,054
New York City Transitional Finance Authority,
Revenue (Future Tax Secured):
5%, 11/15/2008 5,000,000 5,173,300
5.25%, 11/15/2013 3,000,000 3,070,920
5.125%, 11/1/2014 3,850,000 3,874,101
New York City Industrial Development Agency,
Civic Facility Revenue (College of Aeronautics Project):
5.10%, 5/1/2008 500,000 502,150
5.25%, 5/1/2010 555,000 554,517
5.30%, 5/1/2011 585,000 583,286
New York State:
COP 4.40%, 8/1/2003 2,355,000 2,370,496
5.50%, 8/15/2006 4,300,000 4,600,527
5.40%, 10/1/2008 1,430,000 1,515,843
New York State Dormitory Authority, Revenue:
(City University):
5.70%, 7/1/2005 3,500,000 3,733,940
5.25%, 7/1/2006 (Insured; FGIC) 3,000,000 3,173,430
5.75%, 7/1/2009 8,085,000 8,689,920
(Cornell University) 5.40%, 7/1/2009 4,000,000 4,266,960
(Terence Cardinal Cooke Health) 4.50%, 7/1/2010 3,500,000 3,382,610
(Schools Program):
5.25%, 7/1/2009 2,475,000 2,564,150
5.25%, 7/1/2010 2,720,000 2,794,718
5.25%, 7/1/2011 1,435,000 1,463,930
(New York Methodist Hospital):
5%, 7/1/2009 (Insured; AMBAC) 1,000,000 1,024,250
5%, 7/1/2010 (Insured; AMBAC) 1,430,000 1,450,006
Lease (Court Facilities - Westchester County) 5%, 8/1/2010 6,320,000 6,479,959
(Department of Health):
5.50%, 7/1/2005 1,000,000 1,056,260
6%, 7/1/2005 2,500,000 2,703,975
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
New York State Dormitory Authority, Revenue (continued):
(Department of Health) (continued):
6%, 7/1/2006 2,350,000 2,553,722
(Highland Community Development Corp.)
5.50%, 7/1/2001 (LOC; Marine Midland Bank) 4,750,000 4,865,520
(Mental Health Services Facilities):
6%, 8/15/2006 3,320,000 3,618,269
6%, 2/15/2007 5,640,000 6,141,678
5%, 2/15/2010 (Insured; MBIA) 6,630,000 6,736,809
Secured Hospital:
(The Brookdale Hospital Medical Center)
5.10%, 2/15/2011 4,040,000 4,048,605
(Bronx-Lebanon Hospital Center)
5.10%, 2/15/2012 2,475,000 2,498,216
(Interfaith Medical Center)
5.375%, 2/15/2012 3,340,000 3,407,902
(State Service Contract - Albany County):
5.10%, 4/1/2010 2,310,000 2,343,495
5.25%, 4/1/2011 1,210,000 1,232,458
(State University Educational Facilities):
6.10%, 5/15/2005 (Prerefunded 5/15/2003)a 2,630,000 2,882,112
6.10%, 5/15/2008 (Prerefunded 5/15/2004)a 2,000,000 2,214,960
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 5,564,038
5.40%, 4/1/2005 (Insured; CMAC) 2,000,000 2,111,720
New York State Environmental Facilities Corp.:
Clean Water and Drinking Water Revenue (Revolving Fund)
5.25%, 6/15/2013 4,080,000 4,177,838
PCR:
Special Obligation:
(Riverbank State Park) 7.10%, 4/1/2002 1,130,000 1,229,056
(State Park Infrastructure) 5.75%, 3/15/2008 2,475,000 2,577,168
(State Water Revolving Fund):
6.30%, 6/15/2002 645,000 687,486
6.20%, 3/15/2004 1,700,000 1,843,072
(New York Municipal Water Finance Authority Project):
6.35%, 6/15/2006 (Prerefunded 6/15/2004)a 1,195,000 1,331,326
6.35%, 6/15/2006 805,000 890,040
New York State Housing Finance Agency, Revenue:
(Health Facilities - New York City):
7.90%, 11/1/1999 290,000 292,227
(Housing Mortgage Project)
5.875%, 11/1/2010 (Insured; FSA) 3,930,000 4,224,750
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
New York State Housing Finance Agency, Revenue (continued):
(Service Contract Obligation):
5.25%, 3/15/2011 3,465,000 3,517,529
5.25%, 9/15/2011 3,610,000 3,664,728
New York State Local Government Assistance Corp.:
6.70%, 4/1/2000 25,000 25,719
5.375%, 4/1/2014 3,000,000 3,059,940
5%, 4/1/2013 (Insured; FGIC) 3,000,000 3,016,590
New York State Medical Care Facilities Finance Agency, Revenue:
(Hospital and Nursing Home)
5.875%, 2/15/2008 (Insured; FHA) 2,215,000 2,376,385
(Mortgage Project) 5.40%, 8/15/2005 (Insured; FHA) 385,000 403,361
New York State Mortgage Agency, Revenue
(Homeowner Mortgage):
6.15%, 10/1/2001 1,225,000 1,266,687
5.20%, 10/1/2008 1,320,000 1,362,596
5.30%, 10/1/2009 2,645,000 2,725,567
New York State Thruway Authority:
(Emergency Highway Reconditioning and Preservation)
6%, 1/1/2002 (Insured; FSA) 2,000,000 2,104,760
General Revenue 5.70%, 1/1/2008
(Insured; FGIC)(Prerefunded 1/1/2005)a 3,000,000 3,276,690
(Highway and Bridge Trust Fund):
5.25%, 4/1/2009 (Insured; FGIC) 4,500,000 4,738,275
5.30%, 4/1/2010 (Insured; AMBAC) 1,680,000 1,731,290
Service Contract Revenue (Local Highway and Bridge):
5.50%, 4/1/2004 1,130,000 1,187,879
5.625%, 4/1/2007 3,315,000 3,526,265
5.90%, 4/1/2007 7,000,000 7,551,530
New York State Urban Development Corp.
Project (Onondaga County Convention):
6.25%, 1/1/2007 1,725,000 1,896,862
6.25%, 1/1/2008 1,830,000 2,013,293
6.25%, 1/1/2009 1,950,000 2,137,161
6.25%, 1/1/2010 2,065,000 2,260,122
Niagara Falls, City School District COP
High School Facility:
5.625%, 6/15/2010 1,735,000 1,803,723
5.625%, 6/15/2013 2,045,000 2,121,503
Oneida County Public Improvement
Zero Coupon, 4/15/2014 (Insured; AMBAC) 1,000,000 472,650
Onondaga County Industrial Development Agency, PCR
(Anheuser-Busch Co. Inc. Project) 6.625%, 8/1/2006 4,000,000 4,483,960
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
Orange County Industrial Development Agency,
Life Care Community Revenue (The Glen Arden Inc. Project):
4.90%, 1/1/2002 285,000 287,098
5%, 1/1/2003 220,000 221,476
5.10%, 1/1/2004 425,000 427,724
5.20%, 1/1/2005 225,000 227,140
5.30%, 1/1/2006 250,000 252,730
5.35%, 1/1/2007 225,000 227,054
Port Authority of New York and New Jersey
Special Project Bonds (JFK International Air
Terminal LLC Project)
6.25%, 12/1/2011 (Insured; MBIA) 8,000,000 9,021,040
Rensselaer Industrial Development Agency,
IDR (Albany International Corp.)
7.55%, 6/1/2007 (LOC; Fleet Trust Co.) 2,000,000 2,365,620
Scotia Housing Authority,Revenue
(Coburg Village, Inc. Project):
5%, 1/1/2001 130,000 131,187
5.10%, 7/1/2001 135,000 136,339
5.10%, 1/1/2002 135,000 136,481
5.20%, 7/1/2002 145,000 146,873
5.20%, 1/1/2003 145,000 146,681
5.30%, 7/1/2003 150,000 152,092
5.30%, 1/1/2004 155,000 156,936
5.35%, 7/1/2004 155,000 157,294
5.35%, 1/1/2005 160,000 162,290
5.40%, 7/1/2005 165,000 167,538
5.40%, 1/1/2006 170,000 172,322
5.45%, 7/1/2006 175,000 177,537
5.45%, 1/1/2007 180,000 182,198
5.50%, 7/1/2007 185,000 187,496
5.50%, 1/1/2008 190,000 191,919
5.55%, 7/1/2008 195,000 197,404
Suffolk County Industrial Development Agency, IDR
(Nissequogue Cogen Partners Facility)
4.875%, 1/1/2008 2,250,000 2,232,765
Suffolk County Water Authority, Waterworks Revenue
5.10%, 6/1/2003 (Insured; MBIA) 3,545,000 3,692,756
Syracuse:
COP
(Syracuse Hancock International Airport):
6.50%, 1/1/2004 1,045,000 1,115,882
6.60%, 1/1/2005 1,105,000 1,183,477
6.70%, 1/1/2007 1,210,000 1,296,394
</TABLE>
The Fund 11
<PAGE>
STATEMENT OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
New York (continued)
Syracuse (continued):
Public Improvement:
5.70%, 6/15/2004 (Prerefunded 6/15/2002)a 1,850,000 1,974,616
5.70%, 6/15/2005 (Prerefunded 6/15/2002)a 1,830,000 1,953,269
Syracuse Industrial Development Agency, Pilot Revenue
5.125%, 10/15/2002 (LOC; ABN AMRO Bank) 3,000,000 3,079,320
United Nations Development Corp. (Senior Lien):
5%, 7/1/2007 1,000,000 1,000,250
5.30%, 7/1/2010 1,295,000 1,295,311
5.30%, 7/1/2011 1,000,000 1,000,150
Westchester County Industrial Development Agency, RRR:
Equity (Westchester Resco Co. Project) 5.50%, 7/1/2009 2,650,000 2,714,580
(Resco Co. Project) 5.50%, 7/1/2006 2,850,000 3,021,684
(Westchester Resco Co. Project) 5.125%, 7/1/2006 1,000,000 1,036,620
Yonkers,
GO:
5%, 9/1/2009 (Insured; FGIC) 1,040,000 1,068,070
5%, 9/1/2010 (Insured; FGIC) 1,165,000 1,183,139
5%, Series A, 9/1/2011 (Insured; FGIC) 1,000,000 1,006,710
5%, Series B, 9/1/2011 (Insured; FGIC) 1,000,000 1,006,710
5.25%, 12/1/2015 (Insured; AMBAC)b 2,110,000 2,128,441
U.S. Related--7.2%
Commonwealth of Puerto Rico:
Improvement 5.375%, 7/1/2005 2,250,000 2,381,423
Public Improvement 5.50%, 7/1/2011 2,500,000 2,655,475
Puerto Rico Highway and Transportation Authority,
Highway Revenue
6.25%, 7/1/2007 (Insured; MBIA) 3,500,000 3,950,625
Puerto Rico Public Buildings Authority, Revenue
(Guaranteed Government Facilities)
6.25%, 7/1/2008 (Insured; AMBAC) 3,730,000 4,237,802
Puerto Rico Telephone Authority, Revenue
6.91%, 1/25/2007 (Insured; MBIA)
(Prerefunded 1/1/2003)a,c 3,925,000 4,302,781
Virgin Islands Public Finance Authority, Revenue
Fund Loan Notes, Senior Lien 5.50%, 10/1/2004 3,000,000 3,133,620
Virgin Islands Water and Power Authority, Electric System:
5.125%, 7/1/2004 1,455,000 1,505,954
5.125%, 7/1/2011 4,230,000 4,255,761
Total Long-Term Municipal Investments
(cost $348,735,307) 361,637,302
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Principal
Short-Term Municipal Investments--.3% Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
New York
Port Authority of New York and New Jersey
Versatile Structure Obligation, VRDN 3.30%d
(cost $1,000,000) 1,000,000 1,000,000
- --------------------------------------------------------------------------------------------
Total Investments (cost $ 349,735,307) 98.9% 362,637,302
Cash and Receivables (Net) 1.1% 3,889,194
Net Assets 100.0% 366,526,496
</TABLE>
The Fund 13
<PAGE>
STATEMENT OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond LOC Letter of Credit
Assurance Corporation
CMAC Capital Market MBIA Municipal Bond Investors
Assurance Corporation Assurance Insurance
COP Certificate of Participation Corporation
FGIC Financial Guaranty MFHR Multi-Family
Insurance Company 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
</TABLE>
- -------------------------------------------------------------------------------
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- -------------------------------------------------------------------------------
AAA Aaa AAA 14.1
AA Aa AA 8.1
A A A 29.5
BBB Baa BBB 30.2
F1 MIG1/P1 SP1/A1 7.4
Not Ratede Not Ratede Not Ratede 10.7
100.0
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 Inverse floater security--the interest rate is subject to change periodically.
d Securities payable on demand. Variable interest rate--subject to periodic
change.
e Securities which, while not rated by Fitch, Moody's and Standard & Poor's,
have been determined by the Manager to be of comparable quality to those rated
securities in which the fund may invest.
See notes to financial statements.
14
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
Cost Value
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments 349,735,307 362,637,302
Cash 473,868
Interest receivable 5,838,494
Receivable for shares of Beneficial Interest subscribed 73,750
Prepaid expenses 9,758
369,033,172
- ------------------------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 168,955
Due to Distributor 77,939
Payable for investment securities purchased 2,183,147
Accrued expenses 76,635
2,506,676
- ------------------------------------------------------------------------------------------------
Net Assets ($) 366,526,496
- ------------------------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 351,324,711
Accumulated undistributed investment income--net 129,745
Accumulated net realized gain (loss) on investments 2,170,045
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 12,901,995
- ------------------------------------------------------------------------------------------------
Net Assets ($) 366,526,496
- ------------------------------------------------------------------------------------------------
Shares Outstanding
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 20,013,607
Net Asset Value, offering and redemption price per share--Note 3(d) ($) 18.31
</TABLE>
See notes to financial statements.
The Fund 15
<PAGE>
STATEMENT OF OPERATIONS
Year Ended May 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Investment Income ($)
- ---------------------------------------------------------------------------------------------
<S> <C>
Interest Income 18,903,439
Expenses:
Management fee--Note 3(a) 2,232,576
Shareholder servicing costs--Note 3(b) 1,113,406
Professional fees 39,929
Custodian fees 38,528
Trustees' fees and expenses--Note 3(c) 35,420
Prospectus and shareholders' reports--Note 3(b) 19,518
Registration fees 10,747
Loan commitment fees--Note 2 1,769
Miscellaneous 25,527
Total Expenses 3,517,420
Less--reduction in management fee due to
undertaking--Note 3(a) (538,882)
Net Expenses 2,978,538
Investment Income--Net 15,924,901
- ---------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4 ($):
Net realized gain (loss) on investments 4,083,315
Net unrealized appreciation (depreciation) on investments (6,345,358)
Net Realized and Unrealized Gain (Loss) on Investments (2,262,043)
Net Increase in Net Assets Resulting from Operations 13,662,858
</TABLE>
See notes to financial statements.
16
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Year Ended May 31,
----------------------------------
1999 1998
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income--net 15,924,901 16,105,912
Net realized gain (loss) on investments 4,083,315 3,305,521
Net unrealized appreciation (depreciation)
on investments (6,345,358) 9,348,627
Net Increase (Decrease) in Net Assets
Resulting from Operations 13,662,858 28,760,060
- ----------------------------------------------------------------------------------------------
Dividends to Shareholders from ($):
Investment income--net (15,879,865) (16,064,450)
Net realized gain on investments (4,150,285) (1,654,760)
Total Dividends (20,030,150) (17,719,210)
- ----------------------------------------------------------------------------------------------
Beneficial Interest Transactions ($):
Net proceeds from shares sold 68,623,498 62,436,901
Dividends reinvested 16,485,740 14,469,657
Cost of shares redeemed (77,696,631) (79,996,421)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions 7,412,607 (3,089,863)
Total Increase (Decrease) in Net Assets 1,045,315 7,950,987
- ----------------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 365,481,181 357,530,194
End of Period 366,526,496 365,481,181
Undistributed investment income--net 129,745 84,709
- ----------------------------------------------------------------------------------------------
Capital Share Transactions (Shares):
Shares sold 3,675,854 3,369,699
Shares issued for dividends reinvested 882,130 781,618
Shares redeemed (4,167,561) (4,322,391)
Net Increase (Decrease) in Shares Outstanding 390,423 (171,074)
</TABLE>
See notes to financial statements.
The Fund 17
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Year Ended May 31,
--------------------------------------------
1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 18.62 18.06 17.83 18.05 17.71
Investment Operations:
Investment income--net .80 .82 .83 .85 .86
Net realized and unrealized gain (loss)
on investments (.10) .65 .41 (.22) .34
Total from Investment Operations .70 1.47 1.24 .63 1.20
Distributions:
Dividends from investment income--net (.80) (.82) (.83) (.85) (.86)
Dividends from net realized gain
on investments (.21) (.09) (.18) -- --
Total Distributions (1.01) (.91) (1.01) (.85) (.86)
Net asset value, end of period 18.31 18.62 18.06 17.83 18.05
- ----------------------------------------------------------------------------------------
Total Investment Return (%) 3.75 8.25 7.12 3.52 7.04
- ----------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets .80 .80 .80 .84 .96
Ratio of net investment income
to average net assets 4.28 4.44 4.64 4.69 4.91
Decrease reflected in above expense ratios
due to undertakings by the Manager .14 .15 .16 .12 --
Portfolio Turnover Rate 33.08 42.40 45.29 47.48 29.78
- ----------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 366,526 365,481 357,530 365,148 359,199
</TABLE>
See notes to financial statements.
18
<PAGE>
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, as amended (the "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 (the "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
charge.
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 rec-
The Fund 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
ognized 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 custody agreement, the fund receives net earnings credits
based on available cash balances left on deposit.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the extent that net realized capital gain can be offset by capital
loss carryovers, if any, it is the policy of the fund not to distribute such
gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended May
31, 1999, the fund did not borrow under the Facility.
20
<PAGE>
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 1-1/2% 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 had undertaken from June 1, 1998 to May
31, 1999 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 $538,882 during the period ended May 31, 1999.
(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
The Fund 21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
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, 1999, the fund
was charged $934,624 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, 1999, the fund was charged $114,131 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 shares redeemed
within fifteen days of their issuance, including on redemptions through the use
of the fund's exchange privilege. During the period ended May 31, 1999,
redemption fees retained by the fund amounted to $293.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended May 31, 1999, amounted to
$126,502,463 and $121,153,994, respectively.
At May 31, 1999, accumulated net unrealized appreciation on investments was
$12,901,995, consisting of $14,542,164 gross unrealized appreciation and
$1,640,169 gross unrealized depreciation.
At May 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
22
<PAGE>
REPORT OF 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, 1999, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of May 31, 1999 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus New York Tax Exempt Intermediate Bond Fund at May 31, 1999, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights for
each of the indicated years, in conformity with generally accepted accounting
principles.
ERNST & YOUNG LLP
New York, New York
July 2, 1999
The Fund 23
<PAGE>
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended May 31, 1999:
--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 $.1681 per share as a long-term capital gain
distribution of the $.2076 per share paid on December 9, 1998.
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 1999 calendar year on Form 1099-DIV
which will be mailed by January 31, 2000.
24
<PAGE>
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call 1-800-645-6561
By mail Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
By E-mail Send your request
to [email protected]
On the Internet Information
can be viewed online or
downloaded from:
http://www.dreyfus.com
(C) 1999 Dreyfus Service Corporation 705AR995
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
5/31/89 10,000 10,000
5/31/90 10,736 10,619
5/31/91 11,852 11,588
5/31/92 12,954 12,715
5/31/93 14,549 14,142
5/31/94 15,048 14,582
5/31/95 16,400 15,608
5/31/96 17,176 16,157
5/31/97 18,579 17,308
5/31/98 20,303 18,736
5/31/99 21,239 19,439
*Source: Lehman Brothers
