LETTER TO SHAREHOLDERS
Dear Shareholder:
As the Dreyfus New Jersey Municipal Bond Fund's annual reporting period
ended on December 31, 1994, the net asset value per share was $12.41, a
decrease of approximately $1.60 per share from $14.03 on December 31, 1993,
adjusted for capital gain distributions. Tax exempt income dividends of
approximately $.77 per share were paid during the one-year period,
representing an annualized distribution rate per share of 6.25% based on the
closing price, adjusted for capital gain distributions. We are pleased to
inform you that capital gain distributions were achieved in the amount of
$.0153 per share, and that 100% of the interest income from your Fund was
fully exempt from Federal and State of New Jersey income taxes.*
In 1994, the bond markets, municipal and others, experienced one of their
most tumultuous and disappointing years. Almost all of this turmoil was the
result of a series of Federal Funds interest rate hikes precipitated by the
Federal Reserve Board's concern over the prospects for inflation. These
short-term interest rates are closely linked to the business cycle. In most
cycles, the low in short-term interest rates occurs within a few months of
the bottom of the recession. That would have been in late 1991 or early 1992.
Instead, in January 1994, short-term rates were at cyclical lows near 3%,
despite many months of recovery and expansion. At that time, short rates were
virtually the same as the rate of inflation, a situation more consistent with
a business cycle bottom than with the second year of economic expansion. Many
market analysts thought that the recovery was very fragile and needed the
encouragement of these low rates, and some were calling for even lower rates.
However, data released early in the first quarter of 1994 indicated to the
Federal Reserve that the economy was strong and caused the Fed to institute
the first of six interest rate increases during 1994.
Looking forward, the most important determinant of future short-term
rates and more Federal Reserve action still is likely to be the pace of U.S.
economic growth, as measured by Gross Domestic Product (GDP). If the economy
booms, rates will rise. If it grows closer to the acceptable long-term growth
rate of 2.5%, the Fed may take a neutral posture. The pattern of short rates
is very important because of their influence on the economy and long-term
rates this past year, while the behavior of long-term rates has been the
strongest determinant of the value of your Fund. One of the keys to the
future behavior of long-term rates is the expectation of the average rate of
inflation for the next few years. If the economy appears too strong, the fear
of future inflation will rise. Prices will rise, consumers will spend and not
save, and higher rates will be necessary to slow the economy and satisfy
investors. In addition, the value of the dollar and the potential Fed moves
to attract foreign investment or stimulate U.S. exports can influence rates
in either direction. In the recent past, the stability of the dollar, the
moderate rate of inflation and continuing good news on the Federal budget
deficit have solidified the bond market, which is off the lows of November
and improving steadily.
A separate and important issue for the tax exempt market is the supply
and demand for securities. In 1994, demand from individuals for securities
picked up and offset mutual fund outflows. Over this same period, bond
issuance declined 45% from 1993. This has created a shortage of desirable tax
exempt securities which has in turn generated better relative performance.
New Jersey municipals are representative of this trend. In the Fund,
throughout the year, fewer long bonds were purchased than in previous years.
A portion of the portfolio was sold and replaced with cash equivalents or
shorter maturity securities. Although this recent activity was defensive, the
overall volatility of the Fund is about average for its group. The Fund has
also retained a number of highly liquid long-maturity holdings that can be
replaced quickly with either more defensive items or with market discount
bonds for potential capital appreciation as the market outlook changes.
New Jersey Governor Christine Whitman promised to cut State income taxes
for a third time since taking office, although she mentioned no specific cuts
in her State of the State address. Opponents maintain that property tax
increases have outpaced Whitman's income tax cuts so far. She also promised
to extend a $1.2 billion a year highway construction and mass transit fund
using existing revenue. The Governor signed bills to cut State income taxes
by 15% last year, halfway toward the 30% goal stated in her campaign. These
plans, which have yet to be finalized, come at a time when the State is facing
larger potential deficits.
In summary, the dichotomy of economic numbers indicating overall economic
strength interrupted by significant instances of weakness perplexes the
fixed-income markets. This is represented well by the retail sales figures
for the Christmas shopping season, which for December fell an unexpected .1%
and in November were revised downward, potentially signalling a slower
economy. However, December's decline was the first in eight months, and
retail sales for the entire year rose 7.6%, the strongest annual showing in
10 years. We expect economic trends to clarify in the next quarter or two,
and feel the portfolio is well positioned for adjustments should they be
necessary.
As is our custom, we have provided a current Statement of Investments and
recent financial statements for your review, and hope the Fund continues to
meet your investment criteria.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
January 16, 1995
New York, N.Y.
*Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Capital gains, if any, are generally subject to
Federal, State and local taxes.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW JERSEY
MUNICIPAL BOND FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A]
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (11/6/87)
DECEMBER 31, 1994 DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- --------------------- ---------------------------
<S> <C> <C> <C>
(6.02%) 6.89% 8.16%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus New Jersey
Municipal Bond Fund on 11/6/87 (Inception Date) to a $10,000 investment made
in the Lehman Brothers Municipal Bond Index on that date. For comparative
purposes, the value of the Index on 10/31/87 is used as the beginning value
on 11/6/87. All dividends and capital gain distributions are reinvested.
The Fund invests primarily in New Jersey municipal securities and its
performance takes into account fees and expenses. Unlike the Fund, the Lehman
Brothers Municipal Bond Index is an unmanaged total return performance
benchmark for the long-term, investment-grade tax exempt bond market,
calculated by using municipal bonds selected as representative of the market,
The Index does not take into account charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Condensed Financial
Information section of the Prospectus and elsewhere in this Report.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS
DECEMBER 31, 1994 PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--97.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
NEW JERSEY--82.2%
Atlantic City:
6.30%, 2/1/1996......................................................... $ 2,000,000 $ 2,023,980
6.30%, 2/1/1997......................................................... 2,000,000 2,035,700
Atlantic County Utilities Authority, Solid Waste System Revenue:
7%, 3/1/2008............................................................ 4,250,000 4,100,952
7.125%, 3/1/2016........................................................ 6,650,000 6,366,111
Bedminster Township Board of Education, COP 7.125%, 9/1/2010................ 2,500,000 2,592,700
Bergen County Utilities Authority, Water Pollution Control System Revenue
5.50%, 12/15/2015 (Insured; FGIC)....................................... 5,000,000 4,395,600
Bordentown Sewer Authority, Revenue 6.80%, 12/1/2025 (Insured; MBIA)........ 3,000,000 3,043,680
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA)................................... 2,500,000 975,650
Zero Coupon, 2/15/2012 (Insured; FSA)................................... 4,585,000 1,564,310
Camden County Municipal Utilities Authority, Sewer Revenue
8.25%, 12/1/2017 (Insured; FGIC)........................................ 8,480,000 9,197,323
Camden County Pollution Control Financing Authority,
Solid Waste Disposal and Resource Recovery System Revenue:
7.50%, 12/1/2009...................................................... 3,335,000 3,273,202
7.50%, 12/1/2010...................................................... 13,000,000 12,715,950
East Orange:
Zero Coupon, 8/1/2009 (Insured; FSA).................................... 1,000,000 405,850
Zero Coupon, 8/1/2010 (Insured; FSA).................................... 4,240,000 1,607,893
Zero Coupon, 8/1/2011 (Insured; FSA).................................... 2,500,000 886,575
Elk Township Board of Education, COP 7.375%, 12/1/2009 (Insured; MBIA)...... 2,000,000 2,111,280
Essex County Improvement Authority, Lease Revenue:
7%, 12/1/2020 (Insured; AMBAC).......................................... 4,000,000 4,334,160
(Newark) 6.60%, 4/1/2014................................................ 1,000,000 970,740
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Insured; FGIC)........................................ 3,050,000 3,144,885
Gloucester Township Municipal Utilities Authority, Revenue
5.65%, 3/1/2018 (Insured; AMBAC)........................................ 2,530,000 2,254,685
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC).................. 5,000,000 5,111,250
Hudson County Improvement Authority:
Facility Lease Revenue 6.389%, 12/1/2025 (Insured; FGIC) (a,b).......... 13,835,000 11,085,294
Multi-Family Housing Revenue (Conduit Financing - Observer Park Project)
6.90%, 6/1/2022 (Insured; FNMA)....................................... 4,190,000 4,113,826
Jersey City Zero Coupon, 5/15/2010 (Insured; FSA)........................... 4,745,000 1,782,886
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (c). 7,750,000 8,663,725
Manchester Township Board of Education, COP
7.20%, 12/15/2009 (Prerefunded 12/15/1998) (Insured; MBIA) (c).......... 4,175,000 4,490,046
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW JERSEY (CONTINUED)
Mercer County Improvement Authority, Revenue, Refunding:
Insured Solid Waste (Resource Recovery Project) 6.70%, 4/1/2013 (Insured; FGIC) $ 11,000,000 $ 11,066,110
Solid Waste (Resource Recovery Project) 6.80%, 4/1/2005................. 6,150,000 6,043,728
Middlesex County Utilities Authority, Sewer Revenue 6%, 8/15/2015 (Insured; AMBAC) 1,300,000 1,219,608
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009....................................................... 3,000,000 3,113,700
Monroe Township Municipal Utilities Authority, Water and Sewer System Revenue
6.875%, 2/1/2017 (Insured; MBIA)........................................ 5,000,000 5,202,650
Borough of Moonachie Board of Education, COP
6.375%, 3/1/2014 (Lease Purchase Agreement; Lamington Funding Corp.).... 3,775,000 3,615,733
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (c)............. 2,000,000 2,151,020
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program) 8.50%, 7/1/2017.................. 7,610,000 7,720,573
District Heating and Cooling Revenue (Trigen - Trenton Project):
6.10%, 12/1/2004...................................................... 3,375,000 3,286,778
6.20%, 12/1/2007...................................................... 2,725,000 2,658,728
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031..................... 2,855,000 2,688,782
First Mortgage (The Evergreens) 9.25%, 10/1/2022...................... 5,000,000 5,094,950
First Mortgage Gross (Mega Care Inc. Project)
8.625%, 8/1/2007 (Prerefunded 8/1/1997) (c)....................... 5,000,000 5,480,000
Gas Facilities (Elizabethtown Gas Co. Project) 6.75%, 10/1/2021....... 1,350,000 1,301,346
Refunding:
(Manchester Manor Project) 6.70%, 8/1/2022 (Insured; GNMA)........ 2,500,000 2,388,200
(Stolt Terminals Inc. Project) 10.50%, 1/15/2018.................. 9,440,000 10,571,384
(Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais) (d). 2,500,000 2,618,500
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009................................................... 6,605,000 6,005,860
8.50%, 2/1/2010................................................... 5,850,000 6,322,738
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC). 32,800,000 32,139,736
(Elizabeth Water Project):
6.60%, 8/1/2021................................................. 6,010,000 5,777,113
6.70%, 8/1/2021................................................. 3,965,000 3,789,866
(Hackensack Water Project) 7%, 10/1/2017.......................... 1,500,000 1,502,700
New Jersey Educational Facilities Authority, Revenue:
(New Jersey Institute of Technology) 6.90%, 7/1/2009 (Insured; MBIA).... 2,000,000 2,069,660
(Seton Hall University Project):
6.85%, 7/1/2019 (Insured; BIGI)....................................... 9,050,000 9,196,610
7%, 7/1/2021.......................................................... 3,500,000 3,502,170
(Trenton State College)
7.125%, 7/1/2009 (Prerefunded 7/1/1999) (Insured; AMBAC) (c).......... 4,000,000 4,310,480
(Union County College) 7.25%, 7/1/2009.................................. 2,100,000 2,174,571
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority, Revenue:
(Bridgeton and Millville Hospitals):
7.875%, 7/1/2010 (Prerefunded 7/1/1998) (Insured; MBIA) (c)........... $ 1,250,000 $ 1,366,175
8%, Series C, 7/1/2013 (Prerefunded 7/1/1998) (Insured; MBIA) (c)..... 1,735,000 1,897,275
8%, Series D, 7/1/2013 (Insured; MBIA)................................ 645,000 701,238
(Community Memorial Hospital Association) 8%, 7/1/2014 (Insured; MBIA).. 2,500,000 2,720,475
(Deborah Heart and Lung Center Issue):
6.20%, 7/1/2013....................................................... 1,250,000 1,109,300
6.30%, 7/1/2023....................................................... 2,700,000 2,329,371
(Elmer Community Hospital)
7.90%, 2/1/2007 (Prerefunded 8/1/1997) (Insured; FHA) (c)............. 3,100,000 3,343,970
Health System (Franciscan Sisters of the Poor - Health Systems, Inc.,
Saint Mary's
Hospital) 5.875%, 7/1/2012 (Insured; MBIA)............................ 3,250,000 2,695,810
(Hunterdon Medical Center) 7%, 7/1/2020 (Insured; AMBAC)................ 5,000,000 5,116,800
(Kennedy Memorial Hospital University Medical Center):
8.375%, 7/1/2010...................................................... 2,065,000 2,308,938
6%, 7/1/2020.......................................................... 4,115,000 3,567,746
(Kimball Medical Center) 8%, 7/1/2013................................... 13,000,000 13,347,360
(Medical Center of Ocean County) 6.75%, 7/1/2020 (Insured; FSA)......... 2,000,000 2,012,820
(Newcomb Medical Center) 7.875%, 7/1/2003............................... 2,795,000 2,850,006
(Overlook Hospital Association) 6%, 7/1/2000 (Insured; FGIC)............ 250,000 254,915
(Palisades Medical Center):
7.50%, 7/1/2006....................................................... 2,450,000 2,418,517
7.60%, 7/1/2021....................................................... 2,400,000 2,323,104
(Princeton Medical Center) 7%, 7/1/2022 (Insured; AMBAC)................ 3,375,000 3,453,840
(Raritan Bay Medical Center) 7.25%, 7/1/2014............................ 13,000,000 12,289,290
(Refunding - Atlantic City Medical Center) 6.80%, 7/1/2011.............. 2,500,000 2,481,650
(Saint Peter's Medical Center)
6%, 7/1/2021 (Prerefunded 7/1/2001) (Insured; MBIA)................... 1,500,000 1,520,910
(Zurbrugg Memorial Hospital) 8.50%, 7/1/2012............................ 9,565,000 9,928,470
New Jersey Housing and Mortgage Finance Agency, Revenue:
Home Buyer:
7.65%, 10/1/2016 (Insured; MBIA)...................................... 1,085,000 1,136,364
4.880%, 4/1/2025 (Insured; MBIA) (a,b)................................ 9,200,000 6,497,500
7.70%, 10/1/2029 (Insured; MBIA)...................................... 4,835,000 4,969,461
Home Mortgage 8.10%, 10/1/2017 (Insured; MBIA).......................... 2,955,000 3,095,540
Multi-Family Housing, Refunding (Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA)........................................... 5,000,000 5,064,950
Rental Housing 6.75%, 11/1/2022......................................... 9,310,000 8,915,628
New Jersey Housing Finance Agency, General Resolution (Section 8)
7.10%, 11/1/2012........................................................ 1,000,000 1,016,890
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond Plaza East Inc.)
6.50%, 10/1/2016 (Insured; FSA)......................................... 3,945,000 3,944,487
New Jersey Transportation Trust Fund Authority 1.295%, 5/15/1997 (a,b)...... 10,000,000 9,362,500
New Jersey Wastewater Treatment Trust, Loan Revenue
7.375%, 5/15/2007 (Insured; MBIA)....................................... 2,000,000 2,129,360
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW JERSEY (CONTINUED)
North Jersey District Water Supply Commission:
(Wanaque North Project) 6%, 11/15/2019 (Insured; MBIA).................. $ 3,850,000 $ 3,604,832
(Wanaque South Project) 6%, 7/1/2019 (Insured; MBIA).................... 2,000,000 1,864,360
Ocean County Pollution Control Financing Authority, PCR, Refunding
(Ciba Geigy Corp. Project) 6%, 5/1/2020................................. 11,700,000 10,282,077
Passaic Board of Education, COP 7.875%, 4/1/2004 (Prerefunded 4/1/1999)
(LOC: Marine Midland Bank) (c,d)........................................ 4,000,000 4,383,720
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 5,000,000 4,895,900
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008........................... 7,200,000 6,908,976
Revenue:
(Consolidated Board 71st Series) 6.50%, 1/15/2026..................... 4,000,000 3,850,480
(Consolidated Board 73rd Series) 6.75%, 4/15/2026..................... 9,000,000 8,837,820
Special Obligation (Continental-Eastern LaGuardia Project) 9.125%, 12/1/2015 6,500,000 7,040,085
Rutgers State University 7%, 5/1/2019 (Prerefunded 5/1/1999) (c)............ 4,525,000 4,840,257
Salem County Improvement Authority, Revenue (County Correctional Facility and
Court
House) 7.125%, 5/1/2017 (Prerefunded 5/1/1999) (Insured; AMBAC) (c)..... 2,000,000 2,151,260
Salem County Industrial Pollution Control Financing Authority, Revenue
(Atlantic City Electric Project) 7.375%, 4/15/2014...................... 2,575,000 2,675,168
Sayreville Housing Development Corp., Mortgage Revenue, Refunding
(Lakeview Section 8) 7.75%, 8/1/2024 (Insured; FHA)..................... 2,990,000 3,043,073
Southeast Morris County Municipal Utilities Authority, Water Revenue
6.50%, 1/1/2011 (Insured; FGIC)......................................... 1,475,000 1,489,617
University of Medicine and Dentistry 7.20%, 12/1/2019....................... 5,710,000 5,916,588
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (c).......... 6,250,000 6,861,687
U.S. RELATED --14.8%
Guam Power Authority, Revenue 6.30%, 10/1/2022.............................. 3,750,000 3,334,275
Commonwealth of Puerto Rico:
5.50%, 7/1/2013......................................................... 4,500,000 3,902,085
7.30%, 7/1/2020 (Prerefunded 7/1/2000) (c).............................. 10,850,000 11,911,130
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (c)........... 4,400,000 4,752,220
Puerto Rico Electric Power Authority, Power Revenue, Refunding
8%, 7/1/2008 (Prerefunded 7/1/1998) (c)................................. 2,000,000 2,205,180
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.625%, 7/1/2002........................................................ 510,000 545,425
6.360%, 7/1/2007 (a).................................................... 11,100,000 9,060,375
6.023%, 7/1/2009 (a).................................................... 2,950,000 2,282,563
7.75%, 7/1/2016 (Prerefunded 7/1/2000) (c).............................. 3,460,000 3,871,394
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (c)................... 9,400,000 10,052,924
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (c)................... 2,040,000 2,010,134
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
U.S. RELATED (CONTINUED)
Puerto Rico Housing Finance Corp., MFMR
7.50%, 4/1/2022 (LOC; Government Development Bank of Puerto Rico) (d) .. $ 3,355,000 $ 3,458,200
Puerto Rico Industrial Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue (Baxter Travenol Laboratories) 8%, 9/1/2012 5,000,000 5,357,550
Puerto Rico Public Buildings Authority, Guaranteed Public Education and
Health Facilities:
6%, 7/1/2012.......................................................... 1,650,000 1,531,992
7%, 7/1/2019 (Prerefunded 7/1/1998) (c)............................... 2,000,000 2,128,400
Puerto Rico Urban Renewal and Housing Corp. 7.875%, 10/1/2004............... 2,000,000 2,146,700
University of Puerto Rico, University Revenues, Refunding 6.50%, 6/1/2013... 2,250,000 2,230,785
Virgin Islands, Matching Fund (Hugo Insurance Claims Fund Program)
7.75%, 10/1/2006........................................................ 3,475,000 3,638,221
Virgin Islands Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes) 7.25%, 10/1/2018 ............................ 4,750,000 4,644,123
Virgin Islands Water and Power Authority, Electric System Revenue 7.40%, 7/1/2011 4,000,000 4,032,520
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $544,113,160)..................................................... $544,174,303
=============
SHORT-TERM MUNICIPAL INVESTMENTS--3.0%
NEW JERSEY:
New Jersey Economic Development Authority, Revenue, VRDN:
Industrial and Economic Development (Merck and Co.)
5.75% (LOC; Bankers Trust Co.) (d,e).................................. $ 2,000,000 $ 2,000,000
Pollution Control:
(Merck and Co.) 6% (e)................................................ 800,000 800,000
Refunding (Hoffman LaRoche Project) 5.75% (LOC; Bankers Trust Co.) (d,e) 2,800,000 2,800,000
New Jersey Turnpike Authority, Turnpike Revenue, VRDN
4.65% (LOC; Societe Generale, Insured; FGIC) (d,e)...................... 6,300,000 6,300,000
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN
6% (SBPA; Morgan Guaranty Trust Co.) (e)................................ 5,000,000 5,000,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $16,900,000)...................................................... $ 16,900,000
=============
TOTAL INVESTMENTS--100.0%
(cost $561,013,160)..................................................... $561,074,303
=============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation GNMA Government National Mortgage Association
BIGI Bond Investors Guaranty Insurance LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FNMA Federal National Mortgage Association SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
AAA Aaa AAA 40.7%
AA Aa AA 6.4
A A A 20.2
BBB Baa BBB 14.5
BB Ba BB 2.1
B B B 1.3
F1 MIG1 SP1 2.2
Not Rated (g) Not Rated (g) Not Rated (g) 12.6
--------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1994, these securities amounted to $26,945,294 or 4.7% of net assets.
(c) 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.
(d) Secured by letters of credit.
(e) 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.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard and
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.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $561,013,160)_see statement..................................... $561,074,303
Cash.................................................................... 4,543,365
Interest receivable..................................................... 12,299,237
Prepaid expenses........................................................ 11,675
--------------
577,928,580
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $219,567
Due to Distributor...................................................... 123,596
Payable for shares of Common Stock redeemed............................. 3,425
Accrued expenses........................................................ 57,209 403,797
---------- --------------
NET ASSETS ................................................................ $577,524,783
==============
REPRESENTED BY:
Paid-in capital......................................................... $578,911,627
Accumulated undistributed investment income-net......................... 93,977
Accumulated net realized capital losses and distributions in excess of net
realized gain on investments_Note 1(c)................................ (1,541,964)
Accumulated net unrealized appreciation on investments_Note 3........... 61,143
--------------
NET ASSETS at value applicable to 46,540,437 shares outstanding
(500 million shares of $.001 par value Common Stock authorized)......... $577,524,783
==============
NET ASSET VALUE, offering and redemption price per share
($577,524,783 / 46,540,437 shares)...................................... $12.41
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 43,059,985
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,852,037
Shareholder servicing costs-Note 2(b)................................. 2,016,172
Custodian fees........................................................ 72,895
Professional fees..................................................... 50,316
Prospectus and shareholders' reports-Note 2(b)........................ 27,202
Directors' fees and expenses-Note 2(c)................................ 25,541
Registration fees..................................................... 4,677
Miscellaneous......................................................... 167,771
-------------
6,216,611
Less-reduction in management fee and shareholder servicing costs
due to undertakings-Note 2(b)..................................... 1,287,546
-------------
TOTAL EXPENSES.................................................. 4,929,065
--------------
INVESTMENT INCOME--NET.......................................... 38,130,920
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments_Note 3............................... $ (1,454,272)
Net unrealized (depreciation) on investments............................ (78,775,736)
-------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (80,230,008)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(42,099,088)
=============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 39,555,174 $ 38,130,920
Net realized gain (loss) on investments................................. 1,854,233 (1,454,272)
Net unrealized appreciation (depreciation) on investments for the year.. 41,608,187 (78,775,736)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 83,017,594 (42,099,088)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (39,555,174) (38,036,943)
From net realized gain on investments................................... (1,117,588) ___
In excess of net realized gain on investments........................... ___ (743,575)
-------------- --------------
TOTAL DIVIDENDS....................................................... (40,672,762) (38,780,518)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 259,116,860 167,291,374
Dividends reinvested.................................................... 32,091,573 29,894,610
Cost of shares redeemed................................................. (222,267,812) (264,596,453)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 68,940,621 (67,410,469)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 111,285,453 (148,290,075)
NET ASSETS:
Beginning of year....................................................... 614,529,405 725,814,858
-------------- --------------
End of year (including undistributed investment income-net; $93,977 in 1994) $725,814,858 $577,524,783
============== ============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 18,866,106 12,816,258
Shares issued for dividends reinvested.................................. 2,325,735 2,298,448
Shares redeemed......................................................... (16,110,778) (20,301,295)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 5,081,063 (5,186,589)
============== ============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock 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.
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $12.36 $12.47 $13.06 $13.17 $14.03
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .83 .81 .80 .79 .78
Net realized and unrealized gain (loss) on investments .11 .63 .31 .88 (1.61)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .94 1.44 1.11 1.67 (.83)
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... (.83) (.81) (.80) (.79) (.77)
Dividends from net realized gain on investments -- (.04) (.20) (.02) --
Dividends in excess of net realized gain on investments -- -- -- -- (.02)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.83) (.85) (1.00) (.81) (.79)
------- ------- ------- ------- -------
Net asset value, end of year................. $12.47 $13.06 $13.17 $14.03 $12.41
====== ====== ====== ====== =======
TOTAL INVESTMENT RETURN 7.94% 11.95% 8.77% 12.97% (6.02%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .77% .75% .73% .72% .77%
Ratio of net investment income to average net assets 6.74% 6.36% 6.06% 5.74% 5.94%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .25% .25% .25% .25% .20%
Portfolio Turnover Rate...................... 25.02% 22.53% 33.58% 6.05% 10.02%
Net Assets, end of year (000's Omitted)...... $350,416 $515,706 $614,529 $725,815 $577,525
</TABLE>
See notes to financial statements.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the distributor of the Fund's
shares, which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Fund's
Board of Directors. 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.
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 from investment income-net on each business day. 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. 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.
Dividends in excess of net realized gain on investments for financial
statement purposes result primarily from distributions of realized gain
necessary to satisfy tax requirements.
(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.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $1,454,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1994. If not
applied, the carryover expires in fiscal 2002.
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 .60 of 1% of the average
daily value of the Fund's 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, interest on borrowings, brokerage and
extraordinary expenses, exceed 1 1/2% of the average value of the Fund's net
assets for any full year. However, the manager has currently undertaken from
November 8, 1994 to reduce the management fee paid by the Fund, to the extent
that the Fund's aggregate expenses (excluding certain expenses as described
above) exceed specified annual percentages of the Fund's average daily net
assets. The reduction in management fee, pursuant to the undertakings,
amounted to $136,103 for the year ended December 31, 1994.
The Manager may modify the expense limitation percentages from time to
time, provided that the resulting expense reimbursement would not be less
than the amount required pursuant to the Agreement.
(B) On August 3, 1994, Fund shareholders approved a revised Service Plan
(the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Plan,
effective August 24, 1994, the Fund (a) reimburses the Distributor for
payments to certain Service Agents for distributing the Fund's shares and
servicing shareholder accounts and (b) pays the Manager, Dreyfus Service
Corporation or any other affiliate (collectively "Dreyfus") for advertising
and marketing relating to the Fund and servicing shareholder accounts, at an
aggregate annual rate of .25 of 1% of the value of the Fund's average daily
net assets. Each of the Distributor and Dreyfus may pay Service Agents (a
securities dealer, financial institution or other industry professional) a
fee in respect of the Fund's shares owned by shareholders with whom the
Service Agent has a servicing relationship or for whom the Service Agent is
the dealer or holder of record. Each of the Distributor and Dreyfus determine
the amounts to be paid to Service Agents to which it will make payments and
the basis on which such payments are made. The Plan also separately provides
for the Fund to bear the costs of preparing, printing and 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 year.
Prior to August 24, 1994, the Fund's Service Plan ("prior Service Plan")
provided that the Fund pay Dreyfus Service Corporation at an annual rate of
.25 of 1% of the value of the Fund's average daily net assets, for costs and
expenses in connection with advertising, marketing and distributing the
Fund's shares and for servicing shareholder accounts. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's shares owned by clients of the Service Agent. The prior Service
Plan also separately provided 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 prior Service Plan, not to exceed the greater of $100,000 or
.005 of 1% of the Fund's average daily net assets for any full year.
During the year ended December 31, 1994, $536,710 was charged to the Fund
pursuant to the Plan, of which $244,422 was waived by the Manager and
$1,077,272 was charged to the Fund pursuant to the prior Service Plan, of
which $907,021 was waived by the Manager.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) Prior to August 24, 1994, certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $2,500 and an attendance fee of $250 per meeting.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $91,731,576 and $176,044,065, respectively, for the year ended
December 31, 1994, and consisted entirely of long-term and short-term
municipal investments.
At December 31, 1994, accumulated net unrealized appreciation on
investments was $61,143, consisting of $17,278,254 gross unrealized
appreciation and $17,217,111 gross unrealized depreciation.
At December 31, 1994, 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 JERSEY MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus New Jersey Municipal Bond Fund, Inc., including the statement of
investments, as of December 31, 1994, 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 December 31, 1994 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 Jersey Municipal Bond Fund, Inc. at December 31,
1994, 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
February 6, 1995
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended December 31, 1994:
_ all the dividends paid from investment income-net are
"exempt-interest dividends" (not subject to regular Federal income tax
and, for individuals who are New Jersey residents, New Jersey personal
income taxes), and
_ the portion of the $.0153 per share paid by the Fund on August
31, 1994 representing a long-term capital gain distribution of $.0129
per share.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends and
capital gain distributions paid for the 1994 calendar year on Form
1099-DIV which will be mailed by January 31, 1995.
(Dreyfus `D' Logo)
DREYFUS NEW JERSEY MUNICIPAL
BOND FUND, INC.
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
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 750AR9412
(Dreyfus Logo)
New Jersey
Municipal
Bond Fund, Inc.
Annual Report
December 31, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
________________________________________________________________
| | |
| | | |
| PERIOD | LEHMAN BROTHERS | DREYFUS NEW JERSEY |
| | MUNICIPAL | MUNICIPAL BOND |
| | BOND INDEX * | FUND |
|----------------| -----------------| ------------------ |
| 11/6/87 | 10,000 | 10,000 |
| 12/31/87 | 10,410 | 10,226 |
| 12/31/88 | 11,468 | 11,514 |
| 12/31/89 | 12,705 | 12,562 |
| 12/31/90 | 13,631 | 13,560 |
| 12/31/91 | 15,286 | 15,181 |
| 12/31/92 | 16,634 | 16,513 |
| 12/31/93 | 18,677 | 18,654 |
| 12/31/94 | 17,712 | 17,531 |
|---------------------------------------------------------------- |
*Source: Lehman Brothers
