DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New Jersey
Municipal Bond Fund, Inc. For the fiscal year ended December 31, 1995, your
Fund produced a total return of 15.29% per share.* Income dividends exempt
from Federal and State of New Jersey personal income taxes of approximately
$.741 per share were paid which is equivalent to an annualized tax-free
distribution rate per share of 5.49%.** Some income may be subject to the
Federal Alternative Minimum Tax (AMT) for certain shareholders.
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further ease the Federal Funds rate in December. (The Federal Funds rate is
the rate at which the nation's banks borrow money from each other and all
other short-term rates are based on it.) This was the second reduction for
this important short-term rate in 1995, the first occurring in July. The
latest 25 basis point reduction in December put the rate at 5.50%. Major
incentives for this additional reduction were the inflation report in
November - the Consumer Price Index was flat for the first time in 4 1/2 years
- and the generally slow rate of economic growth. As it did in July, the
Federal Reserve left unchanged the discount rate - the rate at which the
Federal Reserve lends to member banks. The discount rate remained at 5.25%
throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the slow rate of new job creation, sluggish growth in wages and
salaries, and the continued trend of corporate cost-related layoffs. The
lethargic pace of consumer spending last year culminated in one of the worst
holiday sales periods since the business slump in 1990-1991, despite steep
price markdowns by retailers.
Industrial production climbed modestly during the year. By November, the
nation's factories operated at only 83.1% of capacity, down for the third
consecutive month. This was a reflection of weakening demand and further
evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, we believe reductions in annually
appropriated spending will tend to retard the economy. With an agreement, the
combination of cuts in appropriations and other spending reductions could
have the same effect.
There are strong indications that inflation is under control. Until
midyear 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now, the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
MARKET ENVIRONMENT
Municipal bonds have been part of a dramatic bull market for the past
twelve months based on weakening economic trends and potential budget
resolution. Prospects for business expansion seem to be fading, indicating
that the current level of interest rates are not stimulative to the economy.
This type of cyclical slowdown in activity indicates a trend toward stable or
lower inflation, a very positive market condition for bonds in general.
Additionally, the prospect of a balanced budget should be beneficial to the
bond market since it could mean a reduction in the issuance of government
securities. A similar supply situation is present in the municipal bond
market. The redemption of existing municipal bonds has outpaced the rate of
new issuance for two years, and is expected to continue. These factors
underlie our confidence in a positive market outlook into 1996.
THE PORTFOLIO
As indicated in our previous letter, many tax reform proposals abound.
Possible changes in the status of competing products to give them the same
tax-exempt status as municipal securities, a drop in the capital gains rate
and potentially a new tax rate structure are issues that have caused price
performance for longer maturity municipal bonds to lag that of the taxable
sector. However, the tax-exempt market has still appreciated significantly
during the period. By paying attention to the call structures, potential
capital gains impact on discount bonds approaching a minimal price level and
overall duration characteristics of the bonds in the portfolio, we were able
to take advantage of the upward swing in the market. We are continuing to
invest in bonds which we expect to perform well in a rising market and we
expect the performance of the portfolio to reflect a balance between coupon
interest and market movement.
Our primary task - to earn a high level of current income to the extent
consistent with preservation of capital - continues to guide our portfolio
management decisions.
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
January 16, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period, adjusted for capital gain
distributions.
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC. DECEMBER 31, 1995
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:
Dollars
$20,803
Lehman Brothers
Municipal Bond Index*
$20,212
Dreyfus New Jersey
Municipal Bond Fund
*Source: Lehman Brothers]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (11/6/87)
DECEMBER 31, 1995 DECEMBER 31, 1995 TO DECEMBER 31, 1995
__________ __________ _____________
<S> <C> <C> <C>
15.29% 8.29% 9.01%
</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, Inc. 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 shown in the line graph 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,
geographically unrestricted tax exempt bond market, calculated by using
municipal bonds selected to be representative of the municipal market
overall. The Index does not take into account charges, fees and other expenses
. Also, unlike the Fund which principally limits investments to New Jersey
municipal obligations, the Index is not State specific. These factors can
contribute to the Index potentially outperforming the Fund. Further
information relating to Fund performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.9% AMOUNT VALUE
_______ _______
<S> <C> <C>
NEW JERSEY-83.1%
Atlantic County Utilities Authority, Solid Waste System Revenue:
7%, 3/1/2008............................................................ $ 4,250,000 $ 4,426,247
7.125%, 3/1/2016........................................................ 6,650,000 6,935,085
Bedminster Township Board of Education, COP 7.125%, 9/1/2010................ 2,500,000 2,811,525
Bergen County Utilities Authority, Water Pollution Control System Revenue
5.50%, 12/15/2015 (Insured; FGIC)....................................... 5,000,000 5,012,000
Bordentown Sewer Authority, Revenue 6.80%, 12/1/2025 (Insured; MBIA)........ 3,000,000 3,339,090
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA)................................... 2,500,000 1,203,850
Zero Coupon, 2/15/2012 (Insured; FSA)................................... 4,585,000 1,959,858
Camden County Municipal Utilities Authority, Sewer Revenue
8.25%, 12/1/2017 (Insured; FGIC)........................................ 6,000,000 6,570,540
Camden County Pollution Control Financing Authority, Solid Waste Disposal and
Resource Recovery System Revenue 7.50%, 12/1/2010....................... 13,000,000 13,725,790
Delaware River Port Authority, Revenue 5.50%, 1/1/2026 (Insured; FGIC)...... 13,020,000 13,128,196
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA).................................... 4,240,000 1,993,606
Zero Coupon, 8/1/2011 (Insured; FSA).................................... 2,500,000 1,107,775
Elk Township Board of Education, COP 7.375%, 12/1/2009 (Insured; MBIA)...... 2,000,000 2,207,960
Essex County Improvement Authority, Lease Revenue
7%, 12/1/2020 (Prerefunded 12/1/2000) (Insured; AMBAC) (a).............. 4,000,000 4,568,000
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Insured; FGIC)........................................ 3,050,000 3,440,674
Gloucester Township Municipal Utilities Authority, Revenue
5.65%, 3/1/2018 (Insured; AMBAC)........................................ 2,530,000 2,683,748
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC).................. 5,000,000 5,601,350
Hudson County Improvement Authority:
Facility Lease Revenue 7.671%, 12/1/2025 (Insured; FGIC) (b,c).......... 13,835,000 14,855,331
MFHR (Conduit Financing - Observer Park Project)
6.90%, 6/1/2022 (Insured; FNMA)....................................... 4,190,000 4,430,548
Jersey City, Zero Coupon, 5/15/2010 (Insured; FSA).......................... 4,745,000 2,255,536
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (a). 7,750,000 8,930,557
Manchester Township Board of Education, COP
7.20%, 12/15/2009 (Prerefunded 12/15/1998) (Insured; MBIA) (a).......... 4,175,000 4,624,940
Mercer County Improvement Authority, Revenue, Refunding Insured Solid Waste
(Resource Recovery Project) 6.70%, 4/1/2013 (Insured; FGIC)............. 11,000,000 11,600,380
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009 (Prerefunded 12/1/1999) (a)........................... 3,000,000 3,391,980
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY (CONTINUED)
Monroe Township Municipal Utilities Authority, Water and Sewer System Revenue
6.875%, 2/1/2017 (Insured; MBIA)........................................ $ 5,000,000 $ 5,565,450
Borough of Moonachie Board of Education, COP
6.375%, 3/1/2014 (Lease Purchase Agreement; Lamington Funding Corp.).... 3,775,000 3,898,895
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (a)............. 2,000,000 2,233,640
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program) 8.50%, 7/1/2017.................. 7,485,000 8,153,710
District Heating and Cooling Revenue
(Trigen - Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004.................................................. 3,375,000 3,692,824
6.20%, 12/1/2007.................................................. 2,725,000 2,923,080
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031..................... 2,855,000 3,086,055
Refunding:
(Manchester Manor Project) 6.70%, 8/1/2022 (Insured; GNMA)........ 2,500,000 2,662,600
(Stolt Terminals Inc. Project) 10.50%, 1/15/2018.................. 9,440,000 10,734,602
(Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais) (d). 2,500,000 2,728,000
First Mortgage (The Evergreens) 9.25%, 10/1/2022........................ 5,000,000 5,525,350
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009....................................................... 6,605,000 6,862,265
8.50%, 2/1/2010....................................................... 5,850,000 6,759,207
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC)..... 32,800,000 35,828,752
(Elizabeth Water Co. Project):
6.60%, 8/1/2021................................................... 6,010,000 6,308,937
6.70%, 8/1/2021................................................... 3,965,000 4,176,335
(Hackensack Water Project):
5.80%, 3/1/2024 (Insured; MBIA)................................... 2,000,000 2,064,180
Refunding 5.90%, 3/1/2024 (Insured; MBIA)......................... 4,000,000 4,115,160
New Jersey Educational Facilities Authority, Revenue:
(New Jersey Institute of Technology)
6.90%, 7/1/2009 (Prerefunded 7/1/1999) (Insured; MBIA) (a)............ 2,000,000 2,219,300
(Seton Hall University Project):
6.85%, 7/1/2019 (Insured; BIGI)....................................... 9,050,000 9,966,584
7%, 7/1/2021.......................................................... 3,500,000 3,864,315
(Trenton State College)
7.125%, 7/1/2009 (Prerefunded 7/1/1999) (Insured; AMBAC) (a).......... 4,000,000 4,467,720
(Union County College) 7.25%, 7/1/2009.................................. 2,100,000 2,318,757
New Jersey Health Care Facilities Financing Authority, Revenue:
(Bridgeton and Millville Hospitals) 8%, 7/1/2013 (Insured; MBIA)....... 645,000 713,441
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority, Revenue (continued):
(Deborah Heart and Lung Center Issue) 6.30%, 7/1/2023................... $ 2,700,000 $ 2,799,576
Health System (Franciscan Sisters of the Poor - Health Systems, Inc.,
Saint Mary's Hospital) 5.875%, 7/1/2012 (Insured; MBIA)............... 3,250,000 3,154,872
(Hunterdon Medical Center) 7%, 7/1/2020 (Insured; AMBAC)................ 5,000,000 5,557,200
(Kennedy Memorial Hospital University Medical Center):
8.375%, 7/1/2010...................................................... 2,065,000 2,439,798
6%, 7/1/2020.......................................................... 4,115,000 4,145,821
(Kimball Medical Center) 8%, 7/1/2013................................... 13,000,000 13,935,480
(Medical Center of Ocean County) 6.75%, 7/1/2020 (Insured; FSA)......... 1,980,000 2,187,761
(Newcomb Medical Center) 7.875%, 7/1/2003............................... 2,795,000 3,068,072
(Palisades Medical Center):
7.50%, 7/1/2006....................................................... 2,300,000 2,380,799
7.60%, 7/1/2021....................................................... 2,350,000 2,403,016
(Princeton Medical Center) 7%, 7/1/2022 (Insured; AMBAC)................ 3,375,000 3,778,954
(Raritan Bay Medical Center) 7.25%, 7/1/2014............................ 13,000,000 13,582,920
(Refunding - Atlantic City Medical Center) 6.80%, 7/1/2011.............. 2,500,000 2,750,550
(Saint Peter's Medical Center)
6%, 7/1/2021 (Prerefunded 7/1/2001) (Insured; MBIA) (a)............... 1,500,000 1,628,415
(Zurbrugg Memorial Hospital) 8.50%, 7/1/2012............................ 3,000,000 3,174,690
New Jersey Housing and Mortgage Finance Agency, Revenue:
Home Buyer 7.70%, 10/1/2029 (Insured; MBIA)............................. 4,780,000 5,026,887
Multi-Family Housing, Refunding (Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA)........................................... 5,000,000 5,308,500
Rental Housing 6.75%, 11/1/2022......................................... 9,310,000 9,623,095
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond Plaza East
Inc.)
6.50%, 10/1/2016 (Insured; FSA)......................................... 3,945,000 4,433,746
New Jersey Transportation Trust Fund Authority, Refunding (Transportation
System):
6.50%, 6/15/2011 (Insured; MBIA)........................................ 11,000,000 12,759,230
7%, 6/15/2012 (Insured; MBIA)........................................... 6,000,000 7,362,060
New Jersey Turnpike Authority, Turnpike Revenue, Refunding 6.50%, 1/1/2016.. 14,665,000 16,497,832
North Jersey District Water Supply Commission:
(Wanaque North Project) 6%, 11/15/2019 (Insured; MBIA).................. 3,850,000 3,926,192
(Wanaque South Project) 6%, 7/1/2019 (Insured; MBIA).................... 2,000,000 2,224,340
Ocean County Pollution Control Financing Authority, PCR, Refunding
(Ciba Geigy Corp. Project) 6%, 5/1/2020................................. 11,700,000 12,104,469
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 5,000,000 5,161,500
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008........................... 7,200,000 7,729,992
(Consolidated Board 71st Series) 6.50%, 1/15/2026....................... 4,000,000 4,298,440
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY (CONTINUED)
Port Authority of New York and New Jersey (continued):
(Consolidated Board 73rd Series) 6.75%, 4/15/2026....................... $ 9,000,000 $ 9,690,930
(Consolidated Board 89th Series) 5.125%, 10/1/2021...................... 12,000,000 11,648,400
Special Obligation Revenue (Continental-Eastern LaGuardia Project)
9.125%, 12/1/2015..................................................... 6,500,000 7,385,755
Rutgers State University 7%, 5/1/2019 (Prerefunded 5/1/1999) (a)............ 4,525,000 5,016,822
Salem County Improvement Authority, Revenue (County Correctional Facility and
Court House) 7.125%, 5/1/2017 (Prerefunded 5/1/1999) (Insured; AMBAC) (a) 2,000,000 2,225,100
Salem County Industrial Pollution Control Financing Authority, Revenue
Pollution Control (Public Service Electric and Gas Co.):
5.45%, 2/1/2032 (Insured; MBIA)....................................... 5,500,000 5,410,130
5.55%, 11/1/2033 (Insured; MBIA)...................................... 5,180,000 5,185,387
Sayreville Housing Development Corp., Mortgage Revenue, Refunding
(Lakeview Section 8) 7.75%, 8/1/2024 (Insured; FHA)..................... 2,960,000 3,000,049
Southeast Morris County Municipal Utilities Authority, Water Revenue
6.50%, 1/1/2011 (Insured; FGIC)......................................... 1,475,000 1,616,615
University of Medicine and Dentistry 7.20%, 12/1/2019 (Prerefunded 12/1/1999) (a) 5,710,000 6,431,344
West Monmouth Utilities Authority, Revenue, Refunding
5.60%, 2/1/2014 (Insured; AMBAC)........................................ 2,190,000 2,256,116
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (a).......... 6,250,000 7,226,375
West Windsor Plainsboro Regional School District:
5.50%, 12/1/2015 (Insured; FGIC)........................................ 2,700,000 2,777,220
5.50%, 12/1/2016 (Insured; FGIC)........................................ 2,700,000 2,777,220
5.50%, 12/1/2017 (Insured; FGIC)........................................ 2,700,000 2,765,151
5.50%, 12/1/2018 (Insured; FGIC)........................................ 2,700,000 2,765,151
5.50%, 12/1/2019 (Insured; FGIC)........................................ 2,700,000 2,755,539
5.50%, 12/1/2020 (Insured; FGIC)........................................ 2,700,000 2,755,539
U.S. RELATED -16.8%
Guam Power Authority, Revenue 6.30%, 10/1/2022.............................. 3,750,000 3,826,613
Commonwealth of Puerto Rico:
5.50%, 7/1/2013......................................................... 4,500,000 4,482,450
5.65%, 7/1/2015 (Insured; MBIA)......................................... 2,000,000 2,149,080
7.30%, 7/1/2020 (Prerefunded 7/1/2000) (a).............................. 10,850,000 12,450,701
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)........... 4,400,000 5,073,948
Puerto Rico Aqueduct and Sewer Authority, Revenue, Refunding 5%, 7/1/2019... 7,225,000 6,875,021
Puerto Rico Electric Power Authority, Power Revenue, Refunding
5.50%, 7/1/2025......................................................... 6,500,000 6,476,470
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
U.S. RELATED (CONTINUED)
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.625%, 7/1/2002........................................................ $ 510,000 $ 583,093
6.232%, 7/1/2007 (b).................................................... 11,100,000 11,377,500
6.20%, 7/1/2009 (b)..................................................... 2,950,000 2,957,375
7.75%, 7/1/2016 (Prerefunded 7/1/2000) (a).............................. 3,460,000 4,033,945
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (a)................... 9,400,000 10,747,208
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (a)................... 2,040,000 2,209,463
5%, 7/1/2022............................................................ 2,500,000 2,334,925
Puerto Rico Housing Finance Corp., MFMR
7.50%, 4/1/2022 (LOC; Government Development Bank of Puerto Rico) (d) .. 3,355,000 3,589,347
Puerto Rico Industrial Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue (Baxter Travenol Laboratories) 8%, 9/1/2012 5,000,000 5,516,400
Puerto Rico Urban Renewal and Housing Corp. 7.875%, 10/1/2004............... 2,000,000 2,248,200
University of Puerto Rico, University Revenues
5.25%, 6/1/2025 (Insured; MBIA)......................................... 5,100,000 5,065,728
Virgin Islands, Matching Fund (Hugo Insurance Claims Fund Program)
7.75%, 10/1/2006........................................................ 3,315,000 3,644,809
Virgin Island Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes) 7.25%, 10/1/2018 ............................ 4,750,000 5,162,395
Virgin Islands Water and Power Authority, Electric System Revenue 7.40%, 7/1/2011 4,000,000 4,353,400
______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $574,618,284)..................................................... $623,964,846
=======
SHORT-TERM MUNICIPAL INVESTMENTS-.1%
New Jersey Economic Development Authority, PCR, VRDN
Refunding (Hoffman LaRoche Project) 5.50% (e)
(cost $800,000)......................................................... $ 800,000 $ 800,000
=======
TOTAL INVESTMENTS-100.0%
(cost $575,418,284)..................................................... $624,764,846
=======
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BIGI Bond Investors Guaranty Insurance MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration MFMR Multi-Family Mortgage Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
GNMA Government National Mortgage Association
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
____ ____ __________ ___________
<S> <C> <C> <C>
AAA Aaa AAA 48.6%
AA Aa AA 7.7
A A A 18.9
BBB Baa BBB 10.6
BB Ba BB 2.8
B B B 1.2
F1 Mig1 SP1 .1
Not Rated (g) Not Rated (g) Not Rated (g) 10.1
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Inverse floater security - the interest is subject to change
periodically.
(c) 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,
1995, this security amounted to $14,855,331 or 2.3% of net assets.
(d) Secured by letter 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 &
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>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $575,418,284)-see statement..................................... $624,764,846
Cash.................................................................... 17,744,485
Interest receivable..................................................... 11,892,918
Prepaid expenses........................................................ 4,511
______
654,406,760
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $369,808
Due to Distributor...................................................... 7,092
Accrued expenses........................................................ 193,557 570,457
____ ______
NET ASSETS ................................................................ $653,836,303
=======
REPRESENTED BY:
Paid-in capital......................................................... $602,014,250
Accumulated undistributed investment income-net......................... 185,970
Accumulated undistributed net realized gain on investments.............. 2,289,521
Accumulated net unrealized appreciation on investments-Note 3........... 49,346,562
______
NET ASSETS at value applicable to 48,331,304 shares outstanding
(500 million shares of $.001 par value Common Stock authorized)......... $653,836,303
=======
NET ASSETS VALUE, offering and redemption price per share
($653,836,303 / 48,331,304 shares)...................................... $13.53
=======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $40,004,004
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,708,451
Shareholder servicing costs-Note 2(b)................................. 1,908,003
Custodian fees........................................................ 73,150
Professional fees..................................................... 54,524
Prospectus and shareholders' reports-Note 2(b)........................ 39,173
Directors' fees and expenses-Note 2(c)................................ 38,036
Registration fees..................................................... 4,745
Miscellaneous......................................................... 26,377
______
TOTAL EXPENSES.................................................... 5,852,459
Less-reduction in management fee
due to undertaking-Note 2(a)...................................... 907,858
______
NET EXPENSES...................................................... 4,944,601
______
INVESTMENT INCOME-NET............................................. 35,059,403
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 4,018,796
Net unrealized appreciation on investments.............................. 49,285,419
______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 53,304,215
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $88,363,618
======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
_________________________________
1994 1995
_______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 38,130,920 $ 35,059,403
Net realized gain (loss) on investments................................. (1,454,272) 4,018,796
Net unrealized appreciation (depreciation) on investments for the year.. (78,775,736) 49,285,419
_______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (42,099,088) 88,363,618
_______ ______
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (38,036,943) (34,967,410)
From net realized gain on investments................................... _ (187,311)
In excess of net realized gain on investments........................... (743,575) -
_______ ______
TOTAL DIVIDENDS....................................................... (38,780,518) (35,154,721)
_______ ______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 167,291,374 345,417,332
Dividends reinvested.................................................... 29,894,610 26,626,785
Cost of shares redeemed................................................. (264,596,453) (348,941,494)
_______ ______
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... (67,410,469) 23,102,623
_______ ______
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... (148,290,075) 76,311,520
NET ASSETS:
Beginning of year....................................................... 725,814,858 577,524,783
_______ ______
End of year (including undistributed investment income-net:
$93,977 in 1994 and $185,970 in 1995)................................. $ 577,524,783 $ 653,836,303
======= ======
SHARES SHARES
_______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 12,816,258 26,279,832
Shares issued for dividends reinvested.................................. 2,298,448 2,027,922
Shares redeemed......................................................... (20,301,295) (26,516,887)
_______ ______
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... (5,186,589) 1,790,867
======= ======
See notes to financial statements.
</TABLE>
<TABLE>
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: 1991 1992 1993 1994 1995
___ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $12.47 $13.06 $13.17 $14.03 $12.41
___ ___ ___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net........................ .81 .80 .79 .78 .74
Net realized and unrealized gain (loss)
on investments............................. .63 .31 .88 (1.61) 1.12
___ ___ ___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS........... 1.44 1.11 1.67 (.83) 1.86
___ ___ ___ ___ ___
DISTRIBUTIONS:
Dividends from investment income-net......... (.81) (.80) (.79) (.77) (.74)
Dividends from net realized gain on investments (.04) (.20) (.02) - (.00)*
Dividends in excess of net realized gain
on investments............................. - - - (.02) -
___ ___ ___ ___ ___
TOTAL DISTRIBUTIONS........................ (.85) (1.00) (.81) (.79) (.74)
___ ___ ___ ___ ___
Net asset value, end of year................... $13.06 $13.17 $14.03 $12.41 $13.53
=== === === === ===
TOTAL INVESTMENT RETURN.......................... 11.95% 8.77% 12.97% (6.02%) 15.29%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .75% .73% .72% .77% .80%
Ratio of net investment income to average
net assets................................. 6.36% 6.06% 5.74% 5.94% 5.67%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .25% .25% .25% .20% .15%
Portfolio Turnover Rate...................... 22.53% 33.58% 6.05% 10.02% 24.37%
Net Assets, end of year (000's Omitted)...... $515,706 $614,529 $725,815 $577,525 $653,836
*Amount represents less than $.01 per share.
See notes to financial statements.
</TABLE>
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. 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 load. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(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.
(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.
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
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 11\2% of the value
of the Fund's average net assets for any full year. However, the Manager has
undertaken from January 1, 1995 through December 31, 1996, to reduce the
management fee paid by the Fund, to the extent that the Fund's aggregate
annual expenses (exclusive of certain expenses as described above) exceed an
annual rate of .80 of 1% of the average daily value of the Fund's net assets.
The reduction in management fee, pursuant to the undertaking, amounted to
$907,858 for the year ended December 31, 1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
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 $19,442 for the period from
December 1, 1995 through December 31, 1995.
(B) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager and Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, and any
affiliate of either of them (collectively, "Dreyfus") for advertising and
marketing relating to the Fund and for Servicing 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. During the year ended December 31, 1995, $1,556,807 was charged to the
Fund pursuant to the Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended December 31, 1995,
amounted to $172,218,756 and $145,865,473, respectively.
At December 31, 1995, accumulated net unrealized appreciation on
investments was $49,346,562, consisting of $49,480,664 gross unrealized
appreciation and $134,102 gross unrealized depreciation.
At December 31, 1995, 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, 1995, 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, 1995 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,
1995, 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
February 9, 1996
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, 1995:
-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 $.0039 per share paid by the Fund on December 7, 1995
representing a long-term capital gain distribution is $.0019 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 1995 calendar year on Form 1099-DIV
which will be mailed by January 31, 1996.
[Dreyfus lion "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
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. 750AR9512
[Dreyfus logo]
New Jersey
Municipal
Bond Fund, Inc.
Annual Report
December 31, 1995
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 |
| 12/31/95 | 20,803 | 20,212 |
|--------------------------------------------------- |
*Source: Lehman Brothers
