DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New York
Tax Exempt Money Market Fund. For its annual reporting period ended May 31,
1996, your Fund produced an annualized yield of 3.00% per share. Income
dividends exempt from Federal, State of New York and New York City personal
income taxes of approximately $.030 per share were paid,* which is equivalent
to an annualized effective yield of 3.04%.**
THE ECONOMY
Recent economic reports show that the economy continues to recover from
its year-end 1995 pause. Spurred by a surge in consumer and business
spending, the annualized Gross Domestic Product grew at a moderate 2.3%
during the first quarter of this year. The Index of Leading Economic
Indicators, a major forecasting index, extended its string of increases for
the third consecutive month in April, the first such three-month advance
since late 1993. Despite a sharp jump in energy prices, inflation remained in
check. For the 12 months ended May, consumer prices rose 2.9%.
Despite the relatively benign level of inflation, the economy's expansion
has sparked concerns that the Federal Reserve Board could raise short-term
interest rates. So far, the Fed has refrained from tightening monetary
policy, apparently interpreting economic data to mean that the economy
remains on a path of moderate growth unaccompanied by a surge in inflation.
There is now a greater consensus that the Fed will tighten eventually in
order to prevent unacceptable levels of price inflation from coming on the
heels of economic growth.
MARKET/PORTFOLIO ENVIRONMENT
If one were to trace the trend in short-term municipal rates over the six
months ended this May 31, the direction would mirror closely the changes in
supply and demand conditions. The six-month cycle would reflect: higher rates
at year-end due to December outflows, a precipitous drop in yields throughout
January as cash returned to the market, price weakness with higher rates in
April as investors tapped their money market funds to pay income taxes and
yield stability in May as market activity settled into a trading range. These
technical influences continue to be the overriding factor affecting municipal
money rates.
These conditions, coupled with policies followed by the Federal Reserve
Board, provide the framework for our investment strategy - both on a
day-to-day basis and looking ahead over a one-year horizon. During the first
few months of 1996, as a result of uncertainty surrounding potential tax
reform, variable rate demand notes (which represent a significant portion of
your Fund's investments) benefited from unusually high yields. While the
concerns were only temporary, they translated, for a time, into a more
attractive after-tax rate of return than was available to the New York
investor on taxable instruments with similar maturities. During this period,
the purchase of attractively yielding commercial paper in the 90-day range
also allowed us to capture returns similar to those on one-year issues
without a significant extension of average maturity. This enabled us to wait
out a lower yield environment in anticipation of higher rates.
The opportunity to commit to longer note issues has appeared in recent
weeks and should continue to be available during the summer months as issuers
return to the market with midyear financings. We expect to take advantage of
these buying opportunities as we monitor potential Fed activity and any
other significant changes in the municipal money market. All new New
York-exempt investments will continue to meet the high credit quality
standards that we require and to provide a significant level of liquidity,
commensurate with the needs of your Fund.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 15, 1996
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
**Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS MAY 31, 1996
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
NEW YORK-98.3%
Broome County Industrial Development Agency, IDR, Refunding, VRDN
(Bing Realty Co. Project) 3.65% (LOC; Meridian Bank Corp.) (a,b)........ $ 1,350,000 $ 1,350,000
Buffalo, RAN 4.20%, 7/16/96 (LOC; Landesbank Hessen) (b).................... 10,000,000 10,009,649
Erie County, RAN 4.25%, Series A, 4/17/97 (LOC; Union Bank of Switzerland) (b) 11,000,000 11,060,439
Metropolitan Transportation Authority, Commuter Facilities Revenue, VRDN
3.50% (LOC: Bank of Tokyo-Mitsubishi, Industrial Bank of Japan,
National Westminster Bank and Sumitomo Bank) (a,b)...................... 34,300,000 34,300,000
Monroe County Industrial Development Agency, Revenue, VRDN (Enbi Corp.)
3.40% (LOC; ABN-Amro Bank) (a,b)........................................ 4,700,000 4,700,000
New York City, VRDN:
3.65%, Series B (Insured; MBIA and SBPA; Westdeutsche Landesbank) (a)... 8,400,000 8,400,000
3.70%, Subseries A-7 (LOC; Morgan Guaranty Trust Co.) (a,b)............. 4,200,000 4,200,000
3.75%, Subseries A-4 (LOC; Chemical Bank) (a,b)......................... 2,500,000 2,500,000
3.80%, Subseries A-4 (LOC; Industrial Bank of Japan) (a,b).............. 7,700,000 7,700,000
3.85%, Subseries E-2 (LOC; Industrial Bank of Japan) (a,b).............. 4,100,000 4,100,000
3.85%, Subseries E-5 (LOC; Sumitomo Bank) (a,b)......................... 6,000,000 6,000,000
Trust Cultural Resource Revenue, Refunding (American Museum of Natural History)
3.35%, Series A (Insured; MBIA and BPA; Credit Suisse) (a)............ 6,000,000 6,000,000
New York City Housing Development Corporation, Mortgage Revenue, VRDN:
(Multi-Family York Avenue Development Project) 3.65% (LOC; Midland Bank) (a,b) 7,000,000 7,000,000
(Park Gate Tower) 3.40% (LOC; Citibank) (a,b)........................... 610,000 610,000
(Residential East 17th Street) 3.70%, Series A (LOC; Chemical Bank) (a,b) 2,800,000 2,800,000
New York City Industrial Development Agency, VRDN:
Civil Facility Revenue (Mercy College Project)
3.50% (LOC; The Bank of New York) (a,b)............................... 1,900,000 1,900,000
IDR:
(Japan Airlines Co. Limited Project) 3.75% (LOC; Morgan Guaranty Trust Co.) (a,b) 9,300,000 9,300,000
(La Guardia Association Project) 3.70% (LOC; Banque Indosuez) (a,b)... 13,700,000 13,700,000
(Stroheam & Roman Project) 3.65% (LOC; Westdeutsche Landesbank) (a,b). 5,700,000 5,700,000
New York City Municipal Water Finance Authority, Water & Sewer Systems
Revenue,
VRDN 3.80%, Series A (Liquidity Facility; FGIC) (a)..................... 1,800,000 1,800,000
New York State, CP 3.75%, Series R, 8/7/96 (LOC; Westdeutsche Landesbank) (b) 7,400,000 7,400,000
New York State Energy, Research and Development Authority, PCR, VRDN:
(Central Hudson Gas and Electric)
3.55%, Series A (LOC; Union Bank of Switzerland) (a,b)................ 2,600,000 2,600,000
(New York State Electric and Gas)
3.55%, Series D (LOC; Union Bank of Switzerland) (a,b)................ 2,000,000 2,000,000
New York State Housing Finance Agency, MFHR, VRDN
3.60%, Series A (a)..................................................... 3,100,000 3,100,000
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW YORK (CONTINUED)
New York State Local Government Assistance Corporation, VRDN:
3.45%, Series B (LOC: Credit Suisse and Swiss Bank Corp.) (a,b)......... $ 28,600,000 $ 28,600,000
3.40%, Series A (LOC: Credit Suisse and Swiss Bank Corp.) (a,b)......... 5,200,000 5,200,000
New York State Medical Care Facilities Finance Agency, Revenue, VRDN:
(Childrens Hospital Buffalo) 3.50%, Series A (LOC; Barclays Bank) (a,b). 4,200,000 4,200,000
(Pooled Equipment Loan Program) 3.55% (LOC; Chemical Bank) (a,b)........ 8,000,000 8,000,000
Patchogue-Medford Union Free School District, TAN 4.375%, 6/27/96........... 8,500,000 8,502,979
Rochester County, BAN 3.75%, Series I, 3/11/97.............................. 10,000,000 10,037,474
Sachem Central School District, TAN 4.125%, 6/27/96......................... 15,000,000 15,004,053
Suffolk County, TAN:
4%, Series I, 8/15/96 (LOC: Canadian Imperial Bank of Commerce,
National Westminster Bank and Westdeutsche Landesbank) (b)............ 12,000,000 12,016,920
4.50%, Series II, 9/12/96 (LOC: Canadian Imperial Bank of Commerce,
National Westminster Bank and Westdeutsche Landesbank) (b)............ 15,000,000 15,026,399
Triborough Bridge and Tunnel Authority, Special Obligation, VRDN
3.40% (Insured; FGIC) (a)............................................... 14,500,000 14,500,000
Westchester County, TAN 3.75%, 12/11/96..................................... 9,000,000 9,030,185
U.S. RELATED-1.7%
Commonwealth of Puerto Rico Government Development Bank, CP
3.55%, 7/16/96.......................................................... 5,000,000 5,000,000
______
TOTAL INVESTMENTS
(cost $293,348,098)..................................................... $293,348,098
=======
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
BAN Bond Anticipation Notes MFHR Multi-Family Housing Revenue
BPA Bond Purchase Agreement PCR Pollution Control Revenue
CP Commercial Paper RAN Revenue Anticipation Notes
FGIC Financial Guaranty Insurance Company SBPA Standby Bond Purchase Agreement
IDR Industrial Development Revenue TAN Tax Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ------------------ ------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 96.6%
Not Rated (e) Not Rated (e) Not Rated (e) 3.4
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) 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.
(b) Secured by letters of credit. At May 31, 1996, 71.0% of the Fund's
net assets are backed by letters of credit issued by domestic banks and
foreign banks.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $293,348,098
Cash.................................................................... 2,995,199
Interest receivable..................................................... 2,645,870
Prepaid expenses........................................................ 9,841
___________
298,999,008
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 158,464
Accrued expenses and other liabilities.................................. 72,910 231,374
___________ ____________
NET ASSETS ................................................................ $298,767,634
=======
REPRESENTED BY:
Paid-in capital......................................................... $298,823,123
Accumulated net realized (loss) on investments.......................... (55,489)
____________
NET ASSETS at value applicable to 298,823,123 shares outstanding (unlimited
number of $.001 par value shares of Beneficial Interest authorized)..... $298,767,634
=======
NET ASSET VALUE, offering and redemption price per share
($298,767,634 / 298,823,123 shares)..................................... $1.00
=======
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 11,407,878
EXPENSES:
Management fee-Note 2(a).............................................. $1,564,732
Shareholder servicing costs-Note 2(b)................................. 311,097
Professional fees..................................................... 46,502
Custodian fees........................................................ 32,480
Trustees' fees and expenses-Note 2(c)................................. 22,088
Prospectus and shareholders' report................................... 12,686
Registration fees..................................................... 5,667
Miscellaneous......................................................... 13,123
_____
TOTAL EXPENSES.................................................... 2,008,375
______
INVESTMENT INCOME-NET....................................................... 9,399,503
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (3,214)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 9,396,289
=======
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
---------------------------------
1995 1996
-------- -------
OPERATIONS:
Investment income-net................................................... $ 8,884,535 $ 9,399,503
Net realized (loss) on investments...................................... (26,195) (3,214)
_______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 8,858,340 9,396,289
_______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (8,884,535) (9,399,503)
_______ ______
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 333,556,193 326,637,302
Dividends reinvested.................................................... 8,431,092 8,835,535
Cost of shares redeemed................................................. (368,085,583) (354,541,767)
_______ ______
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (26,098,298) (19,068,930)
_______ ______
TOTAL (DECREASE) IN NET ASSETS.................................... (26,124,493) (19,072,144)
NET ASSETS:
Beginning of year....................................................... 343,964,271 317,839,778
_______ ______
End of year............................................................. $ 317,839,778 $ 298,767,634
======= ======
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
------------------------------------------------------------
PER SHARE DATA: 1992 1993 1994 1995 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $1.00 $1.00 $1.00 $1.00 $1.00
---- ---- ---- ---- ----
INVESTMENT OPERATIONS;
Investment income-net........................ .032 .019 .017 .027 .030
---- ---- ---- ---- ----
DISTRIBUTIONS;
Dividends from investment income-net......... (.032) (.019) (.017) (.027) (.030)
---- ---- ---- ---- ----
Net asset value, end of year................. $1.00 $1.00 $1.00 $1.00 $1.00
=== === === === ===
TOTAL INVESTMENT RETURN.......................... 3.26% 1.87% 1.69% 2.76% 3.05%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .64% .67% .68% .68% .64%
Ratio of net investment income to
average net assets......................... 3.22% 1.86% 1.68% 2.71% 3.00%
Net Assets, end of year (000's Omitted)...... $418,763 $379,816 $343,964 $317,840 $298,768
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New York Tax Exempt Money Market 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 and the maintenence of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. (the "Distributor") acts as the distributor of the Fund's shares, which
are sold to the public without a sales charge.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date 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. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
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, if any, 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, 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.
The Fund has an unused capital loss carryover of approximately $52,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through May 31, 1996, which are treated, for Federal income tax purposes
as arising in fiscal 1997. If not applied, $15,000 expires in fiscal 1998,
$1,000 expires in fiscal 1999, $2,000 expires in fiscal 2002, $27,000 expires
in fiscal 2003 and $7,000 expires in fiscal 2004.
At May 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .50 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed 1 1/2% of the average value of the Fund's net
assets for any full fiscal year. There was no expense reimbursement for the
year ended May 31, 1996.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the year ended May 31, 1996, the Fund was charged an aggregate of
$113,327 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $60,309 for the period from
December 1, 1995 through May 31, 1996.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Tax Exempt Money Market Fund, including the statement of
investments, as of May 31, 1996, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1996 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New York Tax Exempt Money Market Fund at May 31, 1996,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
June 27, 1996
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended May
31, 1996 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are New York residents, New York State and New York City
personal income taxes).
[Dreyfus lion "d" logo]
DREYFUS NEW YORK TAX EXEMPT
MONEY MARKET FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 273AR965
[Dreyfus logo]
New York
Tax Exempt
Money Market Fund
Annual Report
May 31, 1996
