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SIGNATURE DENNIS J MCDONNELL
TITLE PRES, CEO & TRUSTEE
KPMG PEAT MARWICK LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, IL 60601-5255
The Board of Trustees and Shareholders of
Van Kampen American Capital Municipal Income Trust:
In planning and performing our audit of the financial statements of Van Kampen
American Capital Municipal Income Trust (the "Trust") for the year ended June
30, 1997, we considered its internal control structure, including procedures
for safeguarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on the internal
control structure.
The management of the Trust is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against
loss from unauthorized use or disposition and that transactions are executed
in accordance with management's authorization and recorded properly to permit
the preparation of financial statements in accordance with generally accepted
accounting principles.
Because of inherent limitations in any system of internal control structure,
errors or irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
June 30, 1997.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
/s/ KPMG Peat Marwick LLP
July 31, 1997
NSAR ITEM 77C
Van Kampen American Capital Municipal Income Trust (VMT)
(a) A Special Meeting of Shareholders was held on October 23, 1996.
(b) The election of Trustees of Van Kampen American Capital Municipal Income
Trust (the "Trust") included:
None
(c) The following were voted on at the meeting:
(1) Approval of New Investment Advisory Agreement in the event of a
change of control of the Adviser.
For 21,061,949 Against 488,542
(2) Approval of changes to Fundamental Investment Policies with respect
to investments in other investment companies.
For 13,722,392 Against 614,234
NSAR ITEM 77C
Van Kampen American Capital Municipal Income Trust (VMT)
(a) An Annual Meeting of Shareholders was held on June 28, 1997.
(b) The election of Trustees of Van Kampen American Capital Municipal Income
Trust (the "Trust") included:
Rod Dammeyer and Wayne W. Whalen
(c) The following were voted on at the meeting:
(1) Approval of New Investment Advisory Agreement in the event of a
change of control of the Adviser.
For 30,588,285 Against 482,351
(4) For each VK Fund, to Ratify the Selection of KPMG Peat Marwick LLP
as Independent Public Accountants for its Current Fiscal Year.
For 31,207,766 Against 132,517
NSAR ITEM 77O
Van Kampen American Capital Municipal Income Trust
10f-3 Transactions
<TABLE>
<CAPTION>
Amount of shares
Underwriting # Underwriting Purchased From Purchased % of Underwriting Date of Purchase
<S> <C> <C> <C> <C> <C>
1 New York City
GO Smith Barney 5,000,000 0.553% 04/11/97
</TABLE>
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
