DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of Dreyfus New York Tax Exempt
Money Market Fund for its fiscal year ended May 31, 1997. Your Fund produced
a 12-month yield of 2.79% and after taking into account the effect of
compounding, the effective yield for this period was 2.82%.*
MONEY MARKET OVERVIEW
Despite the predictions of many analysts who believed growth was slowing
at last, the U.S. economy remained upward bound throughout the period. In
fact, after posting a 3.8% gain during the fourth quarter of 1996, real Gross
Domestic Product (GDP) reached a zenith of 5.6% during the first three months
of 1997, a level not attained in a decade. Most recently, the widely watched
index of the National Association of Purchasing Management jumped to 57.1% in
May from 54.2% in April. The apparent pickup in manufacturing overshadowed
two Commerce Department reports that had pointed to a second-quarter slowdown
in national economic activity. Those April reports showed consumer spending
edging up just 0.1% _ the smallest increase since last September _ and personal
income posting a similarly small gain of only 0.1%.
Alongside the news of surprisingly strong economic growth came another
surprise: inflation remained very low. The latest supporting evidence was a
drop in producer prices for April. At the same time, April's unemployment
rate hit 4.9%, the lowest level in 23 years. The Employment Cost Index also
showed minimal price pressure registering just 0.6% for the first quarter of
1997, a reduction from its 0.8% rise during the last quarter of 1996. Prior
to the release of these rather reassuring statistics, the Federal Reserve
Board (Fed) had increased overnight bank lending rates one quarter of a
percentage point at its March 25 Federal Open Market Committee meeting. While
many expected this to be the first in a series of moves, the Fed left rates
alone in May, leaving market participants guessing about what will happen
when the Fed meets again in July.
MARKET ENVIRONMENT/PORTFOLIO
Each year, as summer approaches, the short-term municipal market
experiences volatility that is reflective of the changing patterns of supply
and demand conditions during the period. These market "technicals" require
adjustments to portfolio strategy in anticipation of conditions such as: an
increase in available securities due to fund redemptions (April tax season),
a dearth of supply of high quality issues (end of June maturities), and
substantial new money market issuance (mid-July financings). Our portfolio
adjustments attempt to structure your Fund in such a way as to take advantage
of these changing conditions in an effort to enhance your Fund's return while
maintaining our commitment to high quality holdings.
In response to the expected changes in both cash flow and supply
conditions, we began preparations for extending your Fund's average maturity
in early June. By creating a calendar of upcoming New York issues and by
subjecting each new issue to rigorous in-house credit review, we were
positioned to take advantage of those notes which we believe would be
attractive holdings for your Fund. We expect to continue to purchase notes
selectively through the summer months in seeking to maximize your Fund's curre
nt yield. As we endeavor to accomplish this, we will continue to commit to
those New York tax-exempt issues which meet our high quality investment
guidelines and which provide the appropriate level of liquidity for your
Fund's needs. Additionally, we will monitor those conditions which affect our
marketplace and adjust our investment policy where necessary to pursue
competitive returns.
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.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 17, 1997
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
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DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS MAY 31, 1997
Principal
Tax Exempt Investments_100.0% Amount Value
__________ __________
<S> <C> <C>
New York_98.3%
Deer Park Union Free School District, TAN 4.375%, 6/27/97................... $ 7,750,000 $ 7,751,992
Half Hallow Hills Central School District, TAN
(Huntington and Babylon) 4.25%, 6/27/97................................... 6,000,000 6,001,231
Metropolitan Transportation Authority, Commuter Facilities Revenue, VRDN
3.95% (LOC: Bank of Tokyo-Mitsubishi, Industrial Bank of Japan, JP Morgan,
National Westminster Bank and Sumitomo Bank) (a,b)........................ 33,800,000 33,800,000
Monroe County Industrial Development Agency, Revenue, VRDN (Enbi Corp.)
3.75% (LOC; ABN-Amro Bank) (a,b).......................................... 4,700,000 4,700,000
New York City:
CP:
3.45%, 7/22/97 (LOC; Morgan Guaranty Trust Co.) (a)..................... 5,000,000 5,000,000
Municipal Assistance Corporation
3.80%, Sub Series K-3, 8/20/97 (LOC; Landesbank Hessen) (a)........... 12,000,000 12,000,000
VRDN:
4.05%, Sub Series E-5 (LOC; Morgan Guaranty Trust Co.) (a,b)............ 5,000,000 5,000,000
Trust Cultural Resource Revenue, Refunding (American Museum of Natural History)
3.80%, Series A (Insured; MBIA and BPA; Credit Suisse) (b)............ 5,900,000 5,900,000
New York City Health and Hospital Corporation, Health Systems Revenue, VRDN
3.80%, Series B (LOC; Canadian Imperial Bank of Commerce) (a,b)........... 8,000,000 8,000,000
New York City Housing Development Corporation, Mortgage Revenue, VRDN:
(Multi-Family York Avenue Development Project) 3.90% (LOC; Midland Bank) (a,b) 7,000,000 7,000,000
(Park Gate Tower) 4% (LOC; Citibank) (a,b)................................ 580,000 580,000
(Residential East 17th Street) 4.05%, Series A (LOC; Chase Manhattan Bank) (a,b) 2,700,000 2,700,000
New York City Industrial Development Agency, VRDN:
Civil Facility Revenue (Mercy College Project)
3.85% (LOC; The Bank of New York) (a,b)................................. 1,800,000 1,800,000
IDR:
(La Guardia Association Project) 4% (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 State Dormitory Authority, Revenues, CP (Memorial Sloan Kettering)
3.40%, Series A, 7/15/97 (LOC; Chase Manhattan Bank) (a).................. 7,700,000 7,700,000
New York State Energy, Research and Development Authority, PCR:
(New York State Electric and Gas)
3.60%, Series D, 12/1/97 (LOC; Union Bank of Switzerland) (a)........... 5,000,000 5,000,000
VRDN:
(Central Hudson Gas and Electric)
3.90%, Series A (LOC; Union Bank of Switzerland) (a,b)................ 2,600,000 2,600,000
(Niagara Mohawk Power Corp.):
4.05%, Series C (LOC; Canadian Imperial Bank of Commerce) (a,b)....... 5,300,000 5,300,000
4.25%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b)................ 4,500,000 4,500,000
(New York State Electric and Gas)
4.20%, Series D (LOC; Union Bank of Switzerland) (a,b)................ 8,200,000 8,200,000
New York State Housing Finance Agency, MFHR, VRDN
3.95%, Series A (b)....................................................... 3,100,000 3,100,000
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Tax Exempt Investments (continued) Amount Value
__________ __________
New York (continued)
New York State Local Government Assistance Corporation, VRDN:
3.80%, Series A (LOC: Credit Suisse and Union Bank of Switzerland) (a,b).. $ 28,300,000 $28,300,000
3.80%, Series B (LOC; Credit Suisse) (a,b)................................ 5,100,000 5,100,000
New York State Medical Care Facilities Finance Agency, Revenue, VRDN:
(Childrens Hospital Buffalo) 3.85%, Series A (LOC; Barclays Bank) (a,b)... 4,100,000 4,100,000
(Pooled Equipment Loan Program) 3.90% (LOC; Chase Manhattan Bank) (a,b)... 8,000,000 8,000,000
New York State Power Authority, Revenue, General Purpose Junior Lien
3.50%, 9/1/97 (LOC: Bank of America, Bank of Tokyo-Mitsubishi,
Morgan Guaranty Trust Co. and Sumitomo Bank) (a).......................... 10,000,000 10,000,000
Rochester County, BAN:
4%, Series I, 3/10/98..................................................... 15,000,000 15,033,468
4.25%, Series III, 10/30/97............................................... 10,000,000 10,017,962
Rockland County, RAN 4.25%, 4/15/98......................................... 5,000,000 5,016,773
Sachem Central School District, TAN 4.50%, 6/26/97.......................... 5,750,000 5,752,082
Suffolk County, TAN 4%, Series I, 8/14/97 (LOC: Canadian Imperial Bank of
Commerce,
National Westminster and Westdeutsche Landesbank) (a)..................... 12,715,000 12,731,604
Triborough Bridge and Tunnel Authority, Special Obligation, VRDN
3.85% (Insured; FGIC and Liquidity Facility; FGIC) (b).................... 15,400,000 15,400,000
Westchester County, TAN 3.48%, 12/11/97..................................... 7,175,000 7,175,000
U.S. Related_1.7%
Commonwealth of Puerto Rico Government Development Bank, CP
3.30%, 6/13/97............................................................ 5,000,000 5,000,000
___________
TOTAL INVESTMENTS
(cost $287,660,112)....................................................... $287,660,112
=============
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DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
Summary of Abbreviations
<S> <C> <S> <C>
BAN Bond Anticipation Notes MBIA Municipal Bond Investors Assurance
BPA Bond Purchase Agreement Insurance Corporation
CP Commercial Paper MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Corporation PCR Pollution Control Revenue
IDR Industrial Development Revenue RAN Revenue Anticipation Notes
LOC Letter of Credit TAN Tax Anticipation Notes
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
____ ____________ ________________ ____________________
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%
=========
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Notes to Statement of Investments:
(a) Secured by letters of credit. At May 31, 1997, 69.1% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks and brokerage firms, of which Union Bank of Switzerland
provided letters of credit to 11.9% of the Fund's net assets.
(b) 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.
(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 Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1997
Cost Value
______________ ______________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $287,660,112 $287,660,112
Cash....................................... 1,643,057
Interest receivable........................ 2,419,886
Prepaid expenses........................... 18,121
____________
291,741,176
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 128,673
Accrued expenses........................... 83,748
____________
212,421
____________
NET ASSETS.................................................................. $291,528,755
=============
REPRESENTED BY: Paid-in capital............................ $291,586,437
Accumulated net realized gain (loss) on investments (57,682)
____________
NET ASSETS.................................................................. $291,528,755
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 291,586,437
NET ASSET VALUE, offering and redemption price per share.................... $1.00
========
SEE NOTES TO FINANCIAL STATEMENTS
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1997
INVESTMENT INCOME
INCOME Interest Income................................ $10,315,927
EXPENSES: Management fee_Note 2(a)....................... $ 1,487,343
Shareholder servicing costs_Note 2(b).......... 402,788
Professional fees.............................. 48,230
Custodian fees................................. 30,989
Trustees' fees and expenses_Note 2(c).......... 22,240
Prospectus and shareholders' reports........... 14,551
Registration fees.............................. 5,791
Miscellaneous.................................. 11,261
_____________
Net Expenses 2,023,193
_____________
INVESTMENT INCOME_NET....................................................... 8,292,734
NET REALIZED GAIN (LOSS) ON INVESTMENTS_Note 1(b)........................... (2,193)
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 8,290,541
==============
SEE NOTES TO FINANCIAL STATEMENTS
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
May 31, 1997 May 31, 1996
_________________ ________________
OPERATIONS:
Investment income_net..................................................... $ 8,292,734 $ 9,399,503
Net realized gain (loss) on investments................................... (2,193) (3,214)
_________________ ________________
Net Increase (Decrease) in Net Assets Resulting from Operations....... 8,290,541 9,396,289
_________________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net..................................................... (8,292,734) (9,399,503)
_________________ ________________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold............................................. 321,563,516 326,637,302
Dividends reinvested...................................................... 7,854,026 8,835,535
Cost of shares redeemed................................................... (336,654,228) (354,541,767)
_________________ ________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (7,236,686) (19,068,930)
_________________ ________________
Total Increase (Decrease) in Net Assets............................. (7,238,879) (19,072,144)
NET ASSETS:
Beginning of Period....................................................... 298,767,634 317,839,778
_________________ ________________
End of Period............................................................. $ 291,528,755 $ 298,767,634
================ =================
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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 period indicated. This
information has been derived from information provided in the Fund's
financial statements.
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Year Ended May 31,
_______________________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
Investment Operations:
Investment income_net....................... .028 .030 .027 .017 .019
______ ______ ______ ______ ______
Distributions:
Dividends from investment income_net......... (.028) (.030) (.027) (.017) (.019)
______ ______ ______ ______ ______
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN......................... 2.83% 3.05% 2.76% 1.69% 1.87%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .68% .64% .68% .68% .67%
Ratio of net investment income
to average net assets................. 2.79% 3.00% 2.71% 1.68% 1.86%
Net Assets, end of period (000's Omitted) $291,529 $298,768 $317,840 $343,964 $379,816
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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 maintenance 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. is 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 per share of $1.00.
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 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. Cost of investments represents amortized cost.
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 $55,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1997. The
carryover does not include net realized securities losses from November 1,
1996 through May 31, 1997, which are treated, for Federal income tax purposes
as arising in fiscal 1998. If not applied, $15,000 of the carryover expires
in fiscal 1998, $1,000 expires in fiscal 1999, $2,000 expires in fiscal 2002,
$27,000 expires in fiscal 2003, $7,000 expires in fiscal 2004 and $3,000
expires in fiscal 2005.
At May 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS NEW YORK TAX EXEMPT 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 that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed 11\2% of the value of the Fund's average net assets the Fund
may deduct from the payments to be made to the Manager, or the Manager will
bear such excess expense. There was no expense reimbursement for the period
ended May 31, 1997.
(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 period ended May 31, 1997, the Fund was charged an aggregate of
$203,540 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $130,259 during the period ended May 31, 1997.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $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, 1997, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 1997 by correspondence with
the custodian. 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, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
June 27, 1997
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
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, 1997 as "exempt-interest dividends" (not generally subject to regular
Federal and, for individuals who are New York residents, New York State and
New York City personal income taxes).
[Dreyfus lion "d" logo]
Registration Mark
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 273AR975
[Dreyfus logo]
Registration Mark
New York
Tax Exempt
Money Market Fund
Annual Report
May 31, 1997
