Dreyfus
New York Tax Exempt
Intermediate
Bond Fund
ANNUAL REPORT May 31, 2000
(reg.tm)
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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Financial Highlights
18 Notes to Financial Statements
23 Report of Independent Auditors
24 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus New York
Tax Exempt Intermediate
Bond Fund, Inc.
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, 1999 through
May 31, 2000. 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.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might reemerge caused the Federal Reserve Board to raise short-term interest
rates six times during the reporting period, for a total increase of 1.75
percentage points. Despite an encouraging rally during the first quarter of
2000, higher interest rates generally led to an erosion of 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,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus New York Tax Exempt Intermediate Bond Fund perform during the
period?
For the 12-month reporting period ended May 31, 2000, Dreyfus New York Tax
Exempt Intermediate Bond Fund achieved a -0.89% total return.(1) In comparison,
the fund's peer group, as measured by the Lipper New York Intermediate Municipal
Debt Funds category average, achieved a -0.67% total return for the same
period.(2)
We attribute the fund's performance to a difficult investment environment. More
specifically, the fund was negatively influenced by higher interest rates when
the Federal Reserve Board (the "Fed") tightened monetary policy six times during
the reporting period in an attempt to relieve inflationary pressures.
What is the fund's investment approach?
The fund's primary objective is to seek a high level of federal, New York state
and New York City tax-exempt income as is consistent with the preservation of
capital from a portfolio of municipal bonds. In addition, we also seek to manage
the fund for a competitive total return.
In managing the fund, we attempt to add value by selecting investment-grade
tax-exempt bonds in the maturity ranges that we believe are most likely to
provide the highest yields. These bonds comprise the portfolio's core position.
We augment the core position with bonds that we believe have the potential to
provide both current income and the potential for capital appreciation.
What other factors influenced the fund's performance?
As mentioned earlier, the fund was influenced by changing market conditions over
the past year. Although the first quarter of 2000 experienced an encouraging
municipal bond market rally, most of 1999 and the two months following the first
quarter of 2000 saw more difficult investment environments.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
When the reporting period began on June 1, 1999, investors had become concerned
that strong economic growth might rekindle long-dormant inflationary pressures,
especially wages in a tight job market. In an attempt to ease these pressures
and forestall a reacceleration of inflation, the Fed raised short-term interest
rates six times during the reporting period, causing most bond prices to fall,
including those of many of the fund' s holdings. These interest-rate hikes
accounted for a total increase of 1.75 percentage points since mid-1999.
In addition, municipal bond prices fell because of adverse supply-and-demand
influences. For a variety of reasons, institutional investors such as insurance
companies have recently participated less in the tax-exempt bond market. Despite
strong demand from individual investors, the absence of institutional buyers
helped reduce overall demand and, therefore, drove municipal bond prices down,
including those of many of the fund' s holdings.
During the first few months of 2000, however, issuance of municipal bonds
nationally declined sharply compared to the same period one year ago. Although
New York is considered a high-issuance state, the supply of newly issued bonds
declined there as well. Some New York municipalities that refinanced bond issues
during the low interest-rate environment over the past several years are
expected to be absent from this year's municipal bond marketplace. As a result,
when compared to other states, we believe that New York bonds are currently
trading at attractive levels.
What is the fund's current strategy?
We began to adopt a more defensive posture toward the end of 1999, and we have
generally maintained that posture through the end of the reporting period.
That' s because we anticipated the Fed's May 16, 2000 interest-rate hike, which
at 0.50 percentage points was particularly severe. However, we are aware that
one or more rate hikes may be implemented in the near future should inflationary
fears persist.
During the reporting period we saw the market go through several cycles.
Accordingly, we focused on maintaining or shortening the fund's duration when
possible, reducing our exposure to discount positions as the market rose and, as
the effects of rate increases filtered through the market, we were given the
opportunity to add issues with strong income characteristics and call
protection.
From a security selection perspective, we have reduced our holdings of bonds
that carry the risk of early redemption within the next 10 years. This strategy
was designed to protect the fund' s income stream by locking in competitive
yields for a longer period. We also increased our vigilance with regard to the
credit quality of our holdings, focusing on highly rated bonds that are backed
by specific revenue streams. We also favor general obligation bonds that are
backed by their issuers' general taxing authority.
June 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD 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 INVESTORS. CAPITAL GAINS, IF ANY, ARE
FULLY TAXABLE. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES
BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT MAY BE
EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN
ABSORBED, THE FUND'S RETURN WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
<TABLE>
<CAPTION>
FUND PERFORMANCE
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
--------------------------------------------------------------------------------
Average Annual Total Returns AS OF 5/31/00
1 Year 5 Years 10 Years
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FUND (0.89)% 4.30% 6.14%
</TABLE>
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 5/31/90 TO A $10,000 INVESTMENT MADE IN THE
LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX ON THAT DATE. ALL DIVIDENDS AND
CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THE FUND INVESTS PRIMARILY IN NEW YORK MUNICIPAL SECURITIES AND MAINTAINS A
PORTFOLIO WITH A WEIGHTED-AVERAGE MATURITY RANGING BETWEEN 3 AND 10 YEARS. THE
FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES.
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS
PRINCIPALLY IN NEW YORK MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND
INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR
THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 10-YEAR TAX-EXEMPT BOND
MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 9-12 YEARS. THESE
FACTORS, COUPLED WITH THE POTENTIALLY LONGER MATURITY OF THE INDEX, CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
May 31, 2000
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.2% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK--92.3%
Albany Parking Authority, Parking Revenue
<S> <C> <C>
6.50%, 11/1/2004 1,000,000 1,031,770
Battery Park City Authority, Revenue
5.125%, 11/1/2005 3,330,000 3,312,751
Buffalo Municipal Water Finance Authority,
Water System Revenue
5.50%, 7/1/2005 (Insured; FSA) 1,200,000 1,214,508
Cattaraugus County Industrial Development Agency,
Civic Facility Revenue (St. Bonaventure University Project):
5%, Series A, 9/15/2009 745,000 685,236
5%, Series B, 9/15/2009 1,055,000 970,368
5%, Series A, 9/15/2010 740,000 672,334
5%, Series B, 9/15/2010 1,110,000 1,008,502
5%, Series A, 9/15/2011 825,000 740,124
5%, Series B, 9/15/2011 1,160,000 1,040,659
5%, 9/15/2012 1,225,000 1,085,730
City University of New York, COP (John Jay College)
5.75%, 8/15/2004 5,000,000 5,067,400
Franklin Solid Waste Management Authority,
Solid Waste System Revenue
6%, 6/1/2005 (Prerefunded 6/1/2003) 1,515,000 (a) 1,580,175
Huntington Housing Authority, Senior Housing Facility Revenue
(Gurwin Jewish Senior Residences) 5.50%, 5/1/2009 2,660,000 2,434,937
Metropolitan Transportation Authority
Transit Facilities Revenue:
5.50%, 7/1/2008 (Insured; MBIA) 4,380,000 4,409,171
5.625%, 7/1/2010 (Insured; MBIA) 4,895,000 4,935,531
5.125%, 7/1/2014 (Insured; FSA) 5,650,000 5,309,361
Nassau County:
General Improvement 5.10%, 11/1/2011 (Insured; AMBAC) 3,725,000 3,581,699
5.75%, 3/1/2013 (Insured; FSA) 4,955,000 4,952,275
Nassau County Health Care Corp.,
Health System Revenue 6%, 8/1/2012 (Insured; FSA) 4,000,000 4,139,560
Nassau County Tobacco Settlement Corporation
5%, 7/15/2008 1,385,000 1,368,103
New York City:
6.25%, 8/1/2009 7,860,000 8,178,524
5.125%, 8/1/2012 (Insured; FGIC) 4,250,000 4,057,050
4.875%, 8/1/2014 (Insured; FGIC) 3,345,000 3,020,100
New York City Housing Authority, Multi-Family Revenue
5.20%, 7/1/2004 (Insured; AMBAC) 2,275,000 2,255,208
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City Industrial Development Agency,
Industrial Development Revenue
(Field Hotel Associates L.P. JFK Project)
5.80%, 11/1/2013 6,000,000 5,367,660
New York City Transitional Finance Authority,
Revenue (Future Tax Secured):
5.25%, 11/15/2013 3,000,000 2,872,890
5%, 11/1/2015 (Insured; FGIC) 4,000,000 3,662,800
New York City Industrial Development Agency,
Civic Facility Revenue (College of Aeronautics Project):
5.10%, 5/1/2008 500,000 471,790
5.25%, 5/1/2010 555,000 519,269
5.30%, 5/1/2011 585,000 545,103
New York State:
COP 4.40%, 8/1/2003 2,355,000 2,282,537
5.50%, 8/15/2006 4,300,000 4,350,267
5.40%, 10/1/2008 1,430,000 1,436,335
New York State Dormitory Authority, Revenue:
(Carmel Richmond Nursing Home)
5%, 7/1/2015 (LOC; Allied Irish Bank PLC) 2,000,000 1,760,660
(City University):
5.70%, 7/1/2005 3,500,000 3,537,450
5.25%, 7/1/2006 (Insured; FGIC) 3,000,000 3,008,370
5.75%, 7/1/2009 (Insured; FGIC) 8,085,000 8,271,036
(Cornell University) 5.40%, 7/1/2009 4,000,000 4,008,880
(Department of Health):
5.50%, 7/1/2005 1,000,000 1,001,480
6%, 7/1/2005 2,500,000 2,551,875
6%, 7/1/2006 2,350,000 2,400,807
Lease (Court Facilities--Westchester County) 5%, 8/1/2010 5,570,000 5,373,825
(FFT Senior Communities Inc.) 5.70%, 7/1/2029
(LOC; KBC Bank, N.V.) 2,100,000 2,099,034
(Highland Community Development Corp.)
5.50%, 7/1/2001 (LOC; HSBC) 4,660,000 4,648,630
(Mental Health Services Facilities) 6%, 8/15/2006 3,320,000 3,392,841
(Schools Program):
5.25%, 7/1/2009 (Insured; MBIA) 2,475,000 2,440,647
5.25%, 7/1/2010 (Insured; MBIA) 1,670,000 1,648,724
5.25%, 7/1/2011 1,435,000 1,365,991
Secured Hospital:
(Bronx-Lebanon Hospital Center)
5.10%, 2/15/2012 (Insured; MBIA) 2,475,000 2,349,815
(Interfaith Medical Center)
5.375%, 2/15/2012 (Insured; MBIA) 3,340,000 3,254,830
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue (continued):
(State Service Contract--Albany County):
5.10%, 4/1/2010 2,310,000 2,190,088
5.25%, 4/1/2011 1,210,000 1,152,706
(State University Educational Facilities):
6.10%, 5/15/2008 (Prerefunded 5/15/2004) 2,000,000 (a) 2,112,400
5%, 5/15/2014 (Insured; MBIA) 1,500,000 1,390,965
(Terence Cardinal Cooke Health) 4.50%, 7/1/2010 3,500,000 3,227,105
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 5,364,830
5.40%, 4/1/2005 (Insured; CMAC) 2,000,000 2,016,320
New York State Environmental Facilities Corp.:
Special Obligation:
(Riverbank State Park) 7.10%, 4/1/2002 1,130,000 1,173,889
(State Park Infrastructure) 5.75%, 3/15/2008 2,475,000 2,487,697
PCR (State Water Revolving Fund):
6.20%, 3/15/2004 1,700,000 1,753,499
6.35%, 6/15/2006 (Prerefunded 6/15/2004) 1,195,000 (a) 1,266,509
New York State Housing Finance Agency, Revenue:
(Housing Mortgage Project)
5.875%, 11/1/2010 (Insured; FSA) 3,930,000 4,013,237
(Service Contract Obligation):
5.25%, 3/15/2011 3,465,000 3,301,417
5.25%, 9/15/2011 3,610,000 3,433,940
5.875%, 9/15/2014 3,000,000 2,985,360
New York State Local Government Assistance Corp.:
5.125%, 4/1/2013 (Insured; MBIA) 3,000,000 2,848,170
5.375%, 4/1/2014 3,000,000 2,889,240
New York State Medical Care Facilities Finance Agency, Revenue
(Hospital and Nursing Home)
5.875%, 2/15/2008 (Insured; FHA) 2,000,000 2,037,160
New York State Mortgage Agency, Revenue
(Homeowner Mortgage) 6.15%, 10/1/2001 1,225,000 1,237,863
New York State Thruway Authority:
(Highway and Bridge Trust Fund):
5.25%, 4/1/2009 (Insured; FGIC) 4,500,000 4,463,640
5.30%, 4/1/2010 (Insured; AMBAC) 1,680,000 1,666,291
5.25%, 4/1/2014 (Insured; FGIC) 4,425,000 4,225,654
5.125%, 4/1/2015 (Insured; MBIA) 3,500,000 3,268,475
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Thruway Authority (continued):
Service Contract Revenue (Local Highway and Bridge):
5.625%, 4/1/2007 3,315,000 3,335,255
5.90%, 4/1/2007 7,000,000 7,150,290
New York State Urban Development Corp.
Project (Onondaga County Convention):
6.25%, 1/1/2007 1,725,000 1,789,291
6.25%, 1/1/2008 1,830,000 1,901,992
6.25%, 1/1/2009 1,950,000 2,020,629
6.25%, 1/1/2010 2,065,000 2,132,092
Niagara Falls, City School District COP
High School Facility
5.625%, 6/15/2013 (Insured; MBIA) 2,045,000 2,035,613
Oneida County Public Improvement
Zero Coupon, 4/15/2014 (Insured; AMBAC) 1,000,000 445,460
Onondaga County Industrial Development Agency, PCR
(Anheuser-Busch Co. Inc. Project) 6.625%, 8/1/2006 4,000,000 4,212,000
Orange County Industrial Development Agency,
Life Care Community Revenue (The Glen Arden Inc. Project):
4.90%, 1/1/2002 285,000 280,295
5%, 1/1/2003 220,000 213,902
5.10%, 1/1/2004 425,000 407,690
5.20%, 1/1/2005 225,000 213,689
5.30%, 1/1/2006 250,000 235,210
5.35%, 1/1/2007 225,000 209,232
Port Authority of New York and New Jersey
(Construction-119th Series)
5.75%, 9/15/2011 (Insured; FGIC) 3,500,000 3,542,210
Rensselaer Industrial Development Agency, IDR
(Albany International Corp.)
7.55%, 6/1/2007 (LOC; Fleet Trust Co.) 2,000,000 2,204,840
Scotia Housing Authority, Revenue
(Coburg Village, Inc. Project):
5%, 1/1/2001 130,000 129,464
5.10%, 7/1/2001 135,000 133,828
5.10%, 1/1/2002 135,000 133,126
5.20%, 7/1/2002 145,000 142,489
5.20%, 1/1/2003 145,000 141,690
5.30%, 7/1/2003 150,000 145,953
5.30%, 1/1/2004 155,000 149,694
5.35%, 7/1/2004 155,000 149,051
5.35%, 1/1/2005 160,000 152,907
5.40%, 7/1/2005 165,000 157,021
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Scotia Housing Authority, Revenue (continued)
(Coburg Village, Inc. Project) (continued):
5.40%, 1/1/2006 170,000 160,727
5.45%, 7/1/2006 175,000 164,771
5.45%, 1/1/2007 180,000 168,332
5.50%, 7/1/2007 185,000 172,313
5.50%, 1/1/2008 190,000 175,518
5.55%, 7/1/2008 195,000 179,382
Suffolk County Industrial Development Agency:
IDR (Nissequoque Cogen Partners Facility)
4.875%, 1/1/2008 2,250,000 2,059,290
Solid Waste Disposal Facility Revenue:
6.48%, 10/1/2004 (Insured; AMBAC) 4,270,000 (b) 4,377,433
6.67%, 10/1/2005 4,590,000 (b) 4,756,020
Suffolk County Judicial Facilities Agency,
Service Agreement Revenue
(John P Cohalan Complex)
5%, 4/15/2016 (Insured; AMBAC) 2,720,000 2,476,288
Syracuse:
COP (Syracuse Hancock International Airport)
6.50%, 1/1/2004 1,045,000 1,075,942
Public Improvement:
5.70%, 6/15/2004 (Prerefunded 6/15/2002) 1,850,000 (a) 1,909,200
5.70%, 6/15/2005 (Prerefunded 6/15/2002) 1,830,000 (a) 1,888,560
Syracuse Industrial Development Agency, Pilot Revenue
5.125%, 10/15/2002 (LOC; ABN AMRO Bank) 2,405,000 2,401,128
Triborough Bridge & Tunnel Authority,
Special Obligation 5.125%, 1/1/2015 (Insured; MBIA) 3,000,000 2,803,770
TSASC Inc.,Tobacco Flexible Amortization Bonds:
5.25%, 7/15/2011 2,675,000 2,599,164
5.375%, 7/15/2012 2,440,000 2,365,922
6%, 7/15/2018 1,670,000 1,654,402
United Nations Development Corp. (Senior Lien):
5.30%, 7/1/2010 1,175,000 1,138,657
5.30%, 7/1/2011 910,000 873,345
Westchester County Industrial Development Agency, RRR:
Equity (Westchester Resco Co. Project) 5.50%, 7/1/2009 2,650,000 2,372,783
(Resco Co. Project) 5.50%, 7/1/2006 (Insured; AMBAC) 2,850,000 2,882,860
(Westchester Resco Co. Project) 5.125%, 7/1/2006
(Insured; AMBAC) 1,000,000 986,110
Yonkers GO
5.25%, 12/1/2015 (Insured; AMBAC) 2,110,000 1,995,490
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. RELATED--4.9%
Commonwealth of Puerto Rico
Improvement 5.375%, 7/1/2005 2,250,000 2,273,783
Puerto Rico Telephone Authority, Revenue
5.755%, 1/25/2007 (Insured; MBIA)
(Prerefunded 1/1/2003) 3,925,000 (a,b) 3,974,063
Virgin Islands Public Finance Authority, Revenue
Fund Loan Notes, Senior Lien 5.50%, 10/1/2004 3,000,000 2,992,320
Virgin Islands Water and Power Authority, Electric System:
5.125%, 7/1/2004 1,455,000 1,428,970
5.125%, 7/1/2011 4,230,000 4,017,612
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $296,809,126) 292,270,145
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--1.1%
------------------------------------------------------------------------------------------------------------------------------------
New York City GO, VRDN 4.45% (Insured; FGIC)
(cost $3,200,000) 3,200,000 (c) 3,200,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $300,009,126) 98.3% 295,470,145
CASH AND RECEIVABLES (NET) 1.7% 5,158,612
NET ASSETS 100.0% 300,628,757
</TABLE>
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
CMAC Capital Market Assurance
Corporation
COP Certificate of Participation
FGIC Financial Guaranty Insurance
Company
FHA Federal Housing Administration
FSA Financial Security Assurance
GO General Obligation
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors
Assurance Insurance Corporation
PCR Pollution Control Revenue
RRR Resources Recovery Revenue
VRDN Variable Rate Demand Notes
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 42.6
AA Aa AA 15.1
A A A 27.6
BBB Baa BBB 6.9
F1 MIG1/P1 SP1/A1 2.6
Not Rated (d) Not Rated (d) Not Rated (d) 5.2
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(C) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(D) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 300,009,126 295,470,145
Cash 864,233
Interest receivable 4,675,868
Prepaid expenses 4,337
301,014,583
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 199,776
Payable for shares of Beneficial Interest redeemed 138,356
Accrued expenses 47,694
385,826
--------------------------------------------------------------------------------
NET ASSETS ($) 300,628,757
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 306,372,037
Accumulated net realized gain (loss) on investments (1,204,299)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (4,538,981)
--------------------------------------------------------------------------------
NET ASSETS ($) 300,628,757
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
17,457,000
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
17.22
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended May 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 17,541,572
EXPENSES:
Management fee--Note 3(a) 1,972,728
Shareholder servicing costs--Note 3(b) 1,000,852
Professional fees 40,105
Trustees' fees and expenses--Note 3(c) 37,955
Custodian fees 33,371
Prospectus and shareholders' reports--Note 3(b) 14,724
Registration fees 7,045
Loan commitment fees--Note 2 3,549
Miscellaneous 32,523
TOTAL EXPENSES 3,142,852
Less--reduction in management fee due to
undertaking--Note 3(a) (508,999)
NET EXPENSES 2,633,853
INVESTMENT INCOME--NET 14,907,719
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (1,198,980)
Net unrealized appreciation (depreciation) on investments (17,440,976)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (18,639,956)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (3,732,237)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended May 31,
---------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 14,907,719 15,924,901
Net realized gain (loss) on investments (1,198,980) 4,083,315
Net unrealized appreciation (depreciation)
on investments (17,440,976) (6,345,358)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (3,732,237) 13,662,858
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (15,037,464) (15,879,865)
Net realized gain on investments (2,175,364) (4,150,285)
TOTAL DIVIDENDS (17,212,828) (20,030,150)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 43,301,192 68,623,498
Dividends reinvested 13,932,842 16,485,740
Cost of shares redeemed (102,186,708) (77,696,631)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (44,952,674) 7,412,607
TOTAL INCREASE (DECREASE) IN NET ASSETS (65,897,739) 1,045,315
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 366,526,496 365,481,181
END OF PERIOD 300,628,757 366,526,496
Undistributed investment income--net -- 129,745
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,462,175 3,675,854
Shares issued for dividends reinvested 793,011 882,130
Shares redeemed (5,811,793) (4,167,561)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,556,607) 390,423
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
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.
Year Ended May 31,
------------------------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 18.31 18.62 18.06 17.83 18.05
Investment Operations:
Investment income--net .81 .80 .82 .83 .85
Net realized and unrealized
gain (loss) on investments (.97) (.10) .65 .41 (.22)
Total from Investment Operations (.16) .70 1.47 1.24 .63
Distributions:
Dividends from investment income--net (.81) (.80) (.82) (.83) (.85)
Dividends from net realized
gain on investments (.12) (.21) (.09) (.18) --
Total Distributions (.93) (1.01) (.91) (1.01) (.85)
Net asset value, end of period 17.22 18.31 18.62 18.06 17.83
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (.89) 3.75 8.25 7.12 3.52
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .80 .80 .80 .80 .84
Ratio of net investment income
to average net assets 4.53 4.28 4.44 4.64 4.69
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation .15 .14 .15 .16 .12
Portfolio Turnover Rate 36.07 33.08 42.40 45.29 47.48
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 300,629 366,526 365,481 357,530 365,148
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
</TABLE>
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., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor.
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 custody
agreement, the fund received net earnings credits of $1,407 based on available
cash balances left on deposit. Income earned under this arrangement is included
in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, 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.
The fund has an unused capital loss carryover of approximately $900,000
available for Federal income tax purposes to be applied against future net The
Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
securities profits, if any, realized subsequent to May 31, 2000. If not applied,
the carryover expires in fiscal 2008.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 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, 2000, 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 fees, interest on borrowings, commitment fees and extraordinary
expenses, exceed 11_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, 1999 to May
31, 2000 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) exceeded 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 $508,999 during the period ended May 31, 2000.
(b) Under the Service Plan (the "Plan") adopted pursuant to rule 12b-1 under the
Act, the fund pays the distributor for distributing the fund's shares and
servicing shareholder accounts ("Servicing") and for adver
tising and marketing relating to the fund. The Plan provides for payments to be
made at an aggregate annual rate of .25 of 1% of the value of the fund's average
daily net assets. Prior to March 22, 2000, Premier Mutual Fund Service Inc., and
not DSC, received payments under the Plan for distributing fund shares and for
servicing shareholder accounts. The distributor determines the amounts, if any,
to be paid to Service Agents under the Plan and the basis on which such payments
are made. The fees payable under the Plan are payable without regard to actual
expenses incurred. 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, 2000, the fund was charged $824,723 pursuant to the Plan, of which
$769,037 was paid to DSC.
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, 2000, the fund was charged $114,259 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, 2000,
redemption fee charged and retained by the fund amounted to $742. Effective June
1, 2000, this fee will be chargeable within thirty days following the date of
issuance of such shares.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended May 31, 2000, amounted to
$116,186,361 and $166,647,234, respectively.
At May 31, 2000, accumulated net unrealized depreciation on investments was
$4,538,981, consisting of $2,550,299 gross unrealized appreciation and
$7,089,280 gross unrealized depreciation.
At May 31, 2000, 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).
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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus New York Tax Exempt Intermediate Bond Fund at May 31, 2000, 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 accounting principles generally
accepted in the United States.
New York, New York
July 5, 2000
The 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, 2000:
-- 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 $.1124 per share as a long-term capital gain
distribution of the $.1167 per share paid on December 9, 1999.
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 2000 calendar year on Form 1099-DIV
which will be mailed by January 31, 2001.
The Fund
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 705AR005
