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 its annual reporting period ended December 31,
1996, your Fund provided a total return of 3.43% * Income dividends of
approximately $.717 per share were paid, exempt from Federal and State of New
Jersey personal income taxes. This is equivalent to an annualized tax-free
distribution rate per share of 5.38%.** Some income may be subject to the
Federal Alternative Minimum Tax (AMT) for certain shareholders.
THE ECONOMY
Over the reporting period, the economy grew moderately, showing little
evidence of accelerating inflation despite the robust pace of new job
creation and the low unemployment rate. It was fear of accelerating inflation
that prompted a sharp rise in long-term interest rates earlier in the year:
however, by year-end, long-term rates had fallen by one half of one percent
(50 basis points) from last summer's peak. Contributing to the drop in rates
was the decision of the Open Market Committee of the Federal Reserve Board
(the "Fed") to leave short-term interest rates unchanged.
Inflation at the consumer level of the economy remains in the 3% range,
which has been accompanied by a comparably benign inflation picture at the
production level of the economy as well. The so-called "core" Producer Price
Index (it excludes the energy and food components because of their
volatility) rose just 0.1% in November and a mere 0.6% for the previous 12
months. Producers appeared to have little ability to pass on price increases
to their customers, a reason cited by the Fed as evidence of the lack of
rising price inflation.
Despite the sanguine price environment, consumers remained wary spenders
and modest borrowers, and retail sales growth has been moderate.
Nevertheless, the renewed decline in mortgage rates spurred the housing
market: existing home sales in November increased for the first time in six
months. New housing starts also rose sharply, with the November increase the
largest monthly rise since July 1995. Job growth still appears to have
underlying strength: monthly increases in workers added to payrolls could
also move higher. The recent unemployment rate rose slightly, but still
remained near a seven-year low.
Lending optimism to the prospect for continued economic growth was the
report from The Conference Board _ a private research group _ that its Index
of Leading Economic Indicators rose for the tenth consecutive month in
November. An increase in this index generally correlates with economic
expansion over the next three to twelve months. Manufacturing remained firm
all year: both factory orders and industrial production rose moderately.
Despite this overall strength in production, there were some signs of
moderation at year-end. Inventories have built up and orders for durable
goods _ those items intended to last three or more years _ declined.
Last year, high employment, low inflation and moderate economic growth
stayed the Fed's hand from raising interest rates. The economy is now in the
sixth year of this business cycle and we remain alert to signs of the
potential rekindling of inflationary pressures.
MARKET ENVIRONMENT
Since our last letter to you at the end of June, when the bond market
corrected nearly 100 basis points for the first six months, the bond market
has gone through a transition. Long-term interest rates as measured by the
30-year U.S. Treasury bond stabilized, vacillating around the 7% level until
mid-October, when the market established a new trading range as the Treasury
bond market rallied to a 6.45% yield. The municipal market has also gone
through a period of stabilization during which the retail (or individual)
investor became very active, strengthening the demand for municipal bonds.
The more recent rally in fixed income securities is built on the continued
speculation that the Federal Reserve Board's Open Market Committee could
potentially ease credit in response to weakening economic data. The new lower
rates have brought many issuers back into the municipal marketplace.
Recently, at the time of the election, $10 billion in new supply had to be
digested by the tax-exempt market in two weeks, which caused municipal bond
prices to cheapen relative to taxables. The increase in yields reversed the
trend of outperformance by the municipal market that has characterized 1996.
At the close of 1996, taxable bonds lost ground from the 6.50% yield level
moving back to the 6.85% range, while municipal bonds held more of their
value moving back to outperformance status. In New Jersey, the total amount
of bonds issued in recent years has been constant, but the proportion of
negotiated longer-maturity paper available for purchase to the Fund has
fallen. This condition has helped enhance the value of many existing holdings
and has encouraged a lower cash position.
THE PORTFOLIO
The portfolio typically holds many high coupon bonds that help the Fund
derive most of its total return from income. During this last six-month
period we have chosen to replace some existing holdings with either those
that have better call protection and coincidental upside price potential, or
those with higher liquidity features. On a security by security basis we have
used these selection criteria in analyzing the risk/return function of each
bond purchased and sold. Our criteria stress accomplishing these goals
without compromising income or losing sight of the portfolio in its totality.
Those transactions placed the fund in the 72nd percentile for total return
and in the 92nd percentile for 12-month yield in the 1996 year. Currently,
the duration (an industry measurement of price responsiveness to changes in
interest rates and therefore price risk of the Fund) is only slightly longer
than it was at the time of our last letter, when it was slightly defensive
overall compared to other funds in our comparison group. As of the end of the
reporting period, the tax-exempt market was attractively valued compared to
taxable fixed income equivalents. We believe the current portfolio structure
should serve the portfolio well during a return to more conventional yield
relationships or through a repeated period of stabilization that we have
experienced.
Included in this report is a series of detailed statements about the
Fund's holdings and financial condition. We hope you find them informative
and greatly appreciate your support.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
January 15, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the net asset
value per share at the end of the period, adjusted for any capital gain
distribution.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC. DECEMBER 31, 1996
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
$21,724
Lehman Brothers
Municipal Bond Index*
$20,905
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, 1996 December 31, 1996 to December 31, 1996
____________________ ____________________ ______________________
<S> <C> <C>
3.43% 6.61% 8.39%
</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 and is not limited to investments principally in New Jersey
municipal obligations. 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>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS DECEMBER 31, 1996
Principal
Long-Term Municipal Investments_100.0% Amount Value
______ ______
<S> <C> <C>
New Jersey_78.6%
Atlantic County Utilities Authority, Solid Waste System Revenue:
7%, 3/1/2008.............................................................. $ 4,250,000 $ 4,276,010
7.125%, 3/1/2016.......................................................... 6,650,000 6,676,001
Brick Township Municipal Utilities Authority, Water and Sewer Revenue,
Refunding
5%, 12/1/2016 (Insured; FGIC)............................................. 4,950,000 4,689,729
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA)..................................... 2,500,000 1,255,225
Zero Coupon, 2/15/2012 (Insured; FSA)..................................... 4,585,000 2,051,925
Camden County Municipal Utilities Authority, Sewer Revenue:
8.25%, 12/1/2017 (Prerefunded 12/1/1997) (Insured; FGIC) (a).............. 3,450,000 3,661,485
Refunding 5.125%, 7/15/2017 (Insured; FGIC)............................... 15,000,000 14,392,650
Camden County Pollution Control Financing Authority, Solid Waste Disposal and
Resource Recovery System Revenue 7.50%, 12/1/2010......................... 13,000,000 13,035,490
Delaware River and Bay Authority, Highway Toll Revenue 5.25%, 1/1/2026 (Insured; FGIC) 19,200,000 18,494,784
Delaware River Port Authority, Highway Toll Revenue 5.50%, 1/1/2026 (Insured; FGIC) 13,020,000 12,843,579
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA)...................................... 4,240,000 2,077,939
Zero Coupon, 8/1/2011 (Insured; FSA)...................................... 2,500,000 1,141,275
Essex County Improvement Authority, Lease Revenue
7%, 12/1/2020 (Prerefunded 12/1/2000) (Insured; AMBAC) (a)................ 4,000,000 4,453,800
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Insured; FGIC).......................................... 3,050,000 3,380,040
Gloucester County Utilities Authority, Sewer Revenue, Refunding
5.45%, 1/1/2024 (Insured; MBIA)........................................... 2,000,000 1,981,860
Gloucester Township Municipal Utilities Authority, Sewer Revenue, Refunding
5.65%, 3/1/2018 (Insured; AMBAC).......................................... 2,530,000 2,607,393
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC).................. 5,000,000 5,498,800
Hudson County Improvement Authority:
Facility Lease Revenue 7.969%, 12/1/2025 (Insured; FGIC) (b,c)............ 13,835,000 14,561,337
MFHR (Conduit Financing - Observer Park Project) 6.90%, 6/1/2022 (Insured; FNMA) 4,190,000 4,384,751
Jersey City:
Zero Coupon, 5/15/2010 (Insured; FSA)..................................... 4,745,000 2,351,337
5.375%, 10/1/2013......................................................... 1,000,000 986,880
5.25%, 10/1/2016.......................................................... 3,080,000 3,007,589
Refunding:
6%, 10/1/2008 (Insured; AMBAC).......................................... 2,490,000 2,707,850
6%, 10/1/2009 (Insured; AMBAC).......................................... 1,890,000 2,046,927
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (a). 5,000,000 5,578,900
Manchester Township Board of Education, COP
7.20%, 12/15/2009 (Prerefunded 12/15/1998) (Insured; MBIA) (a)............ 4,175,000 4,507,497
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
______ ______
New Jersey (continued)
Mercer County Improvement Authority, Solid Waste Revenue, Refunding
(Resource Recovery Project):
6.80%, 4/1/2005......................................................... $ 4,730,000 $ 4,615,960
6.70%, 4/1/2013 (Insured; FGIC)......................................... 11,000,000 11,012,210
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009 (Prerefunded 12/1/1999) (a)............................. 3,000,000 3,301,020
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (a)............... 2,000,000 2,175,520
State of New Jersey, Refunding 6%, 7/15/2010................................ 7,400,000 8,026,410
New Jersey Building Authority, Building Revenue, Refunding 5%, 6/15/2015.... 3,000,000 2,792,850
New Jersey Economic Development Authority, Revenue:
(Clara Maas Health System Project) 5%, 7/1/2025 (Insured; FSA)............ 4,975,000 4,595,557
(Community Mental Health Loan Program) 8.50%, 7/1/2017.................... 7,360,000 7,939,674
District Heating and Cooling
(Trigen - Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004...................................................... 3,375,000 3,521,407
6.20%, 12/1/2007...................................................... 2,725,000 2,791,708
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031....................... 2,855,000 3,062,130
Refunding:
(Stolt Terminals Inc. Project) 10.50%, 1/15/2018...................... 9,440,000 10,234,376
(Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais) (d)..... 2,500,000 2,680,625
First Mortgage (The Evergreens) 9.25%, 10/1/2022.......................... 5,000,000 5,637,550
Refunding:
(Morris Hall / Saint Lawrence Inc. Project):
5.50%, 4/1/2016 (LOC; Corestates Bank) (d)............................ 1,000,000 977,280
5.50%, 4/1/2027 (LOC; Corestates Bank) (d)............................ 3,500,000 3,357,935
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009......................................................... 6,605,000 6,761,605
8.50%, 2/1/2010......................................................... 5,850,000 6,636,065
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC)....... 19,000,000 20,261,220
(Elizabeth Water Co. Project) 6.70%, 8/1/2021........................... 3,965,000 4,164,796
New Jersey Educational Facilities Authority, Revenue, Refunding:
(Seton Hall University Project):
5.625%, 7/1/2019 (Insured; MBIA)........................................ 4,125,000 4,114,564
6.85%, 7/1/2019 (Insured; BIGI)......................................... 9,050,000 9,701,781
7%, 7/1/2021............................................................ 3,500,000 3,698,625
New Jersey Health Care Facilities Financing Authority, Revenue:
(Kennedy Memorial Hospital University Medical Center) 6%, 7/1/2020........ 4,115,000 4,021,343
(Kimball Medical Center) 8%, 7/1/2013..................................... 13,000,000 13,719,810
(Palisades Medical Center):
7.50%, 7/1/2006......................................................... 2,150,000 2,230,023
7.60%, 7/1/2021......................................................... 2,350,000 2,446,186
(Raritan Bay Medical Center) 7.25%, 7/1/2014.............................. 13,000,000 13,717,990
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
______ ______
New Jersey (continued)
New Jersey Health Care Facilities Financing Authority, Revenue (continued):
Refunding (Saint Josephs Hospital and Medical Center):
5.75%, 7/1/2016 (Insured; Connie Lee)................................... $ 1,800,000 $ 1,823,436
6%, 7/1/2026 (Insured; Connie Lee)...................................... 1,000,000 1,028,030
New Jersey Housing and Mortgage Finance Agency, Revenue:
Multi-Family Housing, Refunding (Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA)............................................. 5,000,000 5,336,000
Rental Housing 6.75%, 11/1/2022........................................... 9,310,000 9,595,910
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond Plaza East
Inc.)
6.50%, 10/1/2016 (Insured; FSA)........................................... 3,945,000 4,343,287
New Jersey Transportation Trust Fund Authority, Refunding (Transportation
System):
6.50%, 6/15/2011 (Insured; MBIA).......................................... 11,000,000 12,434,290
7%, 6/15/2012 (Insured; MBIA)............................................. 6,000,000 7,063,380
5%, 6/15/2015 (Insured; MBIA)............................................. 15,000,000 14,178,450
New Jersey Turnpike Authority, Turnpike Revenue, Refunding
6.50%, 1/1/2016 (Insured; MBIA)........................................... 14,665,000 16,595,061
North Hudson Sewer Authority, Sewer Revenue 5.125%, 8/1/2022 (Insured; FGIC) 2,900,000 2,753,376
North Jersey District Water Supply Commission, Sewer Revenue (Wanaque South
Project)
6%, 7/1/2019 (Insured; MBIA).............................................. 2,000,000 2,145,700
Ocean County Pollution Control Financing Authority, PCR, Refunding (Ciba
Geigy Corp. Project)
6%, 5/1/2020.............................................................. 11,700,000 12,062,232
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 1,500,000 1,471,620
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008............................. 7,200,000 7,624,008
Special Obligation Revenue (Continental-Eastern LaGuardia Project)
9.125%, 12/1/2015....................................................... 6,500,000 7,359,495
Salem County Industrial Pollution Control Financing Authority, PCR
(Public Service Electric and Gas Co.) 5.45%, 2/1/2032 (Insured; MBIA)..... 4,250,000 4,036,947
Union County Utilities Authority, Solid Waste Revenue:
7.10%, 6/15/2006.......................................................... 1,625,000 1,667,364
7.15%, 6/15/2009.......................................................... 2,750,000 2,821,583
7.20%, 6/15/2014.......................................................... 10,000,000 10,167,400
University of Medicine and Dentistry 7.20%, 12/1/2019 (Prerefunded 12/1/1999) (a) 5,710,000 6,274,034
Western Monmouth Utilities Authority, Sewer Revenue, Refunding
5.60%, 2/1/2014 (Insured; AMBAC).......................................... 2,190,000 2,224,120
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (a)............ 6,250,000 7,032,062
West Windsor-Plainsboro Regional School District:
5.50%, 12/1/2015 (Insured; FGIC).......................................... 2,700,000 2,709,747
5.50%, 12/1/2016 (Insured; FGIC).......................................... 2,700,000 2,707,560
5.50%, 12/1/2017 (Insured; FGIC).......................................... 2,700,000 2,703,159
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
______ ______
New Jersey (continued)
West Windsor-Plainsboro Regional School District (continued):
5.50%, 12/1/2018 (Insured; FGIC).......................................... $ 2,700,000 $ 2,694,735
5.50%, 12/1/2019 (Insured; FGIC).......................................... 2,700,000 2,694,627
5.50%, 12/1/2020 (Insured; FGIC).......................................... 2,700,000 2,690,955
U.S. Related_21.4%
Commonwealth of Puerto Rico:
5.65%, 7/1/2015 (Insured; MBIA)........................................... 2,000,000 2,071,120
7.30%, 7/1/2020 (Prerefunded 7/1/2000) (a)................................ 10,850,000 12,150,156
5.40%, 7/1/2025........................................................... 21,300,000 20,361,522
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)............. 5,400,000 6,106,320
Refunding 5.375%, 7/1/2022 (Insured; MBIA)................................ 10,975,000 10,721,916
Puerto Rico Aqueduct and Sewer Authority, Revenue, Refunding 5%, 7/1/2019... 10,325,000 9,457,803
Puerto Rico Electric Power Authority, Power Revenue, Refunding 5.50%, 7/1/2025 5,000,000 4,802,150
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.208%, 7/1/2007 (b)...................................................... 11,100,000 11,211,000
5.923%, 7/1/2009 (b)...................................................... 2,950,000 2,913,125
7.75%, 7/1/2016 (Prerefunded 7/1/2000) (a)................................ 3,460,000 3,924,886
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (a)..................... 13,000,000 14,593,670
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (a)..................... 2,040,000 2,290,084
5%, 7/1/2022.............................................................. 2,500,000 2,233,900
5.50%, 7/1/2026........................................................... 3,500,000 3,388,455
5%, 7/1/2036.............................................................. 8,000,000 7,187,280
5.50%, 7/1/2036........................................................... 3,000,000 2,922,240
Puerto Rico Ports Authority, Special Facilities Revenue (American Airlines
Inc. Project)
6.25%, 6/1/2026 (Guaranteed; AMR Corp.)................................... 3,000,000 3,076,110
Puerto Rico Public Building Authority, Guaranteed Public Education and Health
Facilities
Refunding 5.75%, 7/1/2015 (Guaranteed; Commonwealth of Puerto Rico)....... 2,500,000 2,484,525
University of Puerto Rico, University Revenues 5.25%, 6/1/2025 (Insured; MBIA) 5,100,000 4,935,321
_______
TOTAL INVESTMENTS
(cost $567,372,362)....................................................... $593,917,424
=======
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
BIGI Bond Investors Guaranty Insurance LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ __________________
<S> <C> <C> <C>
AAA Aaa AAA 55.1%
AA Aa AA 4.3
A A A 19.5
BBB Baa BBB 9.1
BB Ba BB 1.8
B B B 1.2
Not Rated (f) Not Rated (f) Not Rated (f) 9.0
___
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 rate is subject to change
periodically.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At December 31, 1996, this security amounted to
$14,561,337 or 2.5% of net assets.
(d) Secured by letter of credit.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's, have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
(g) At December 31, 1996, the Fund had $150,333,795 (25.3% of net
assets) invested in securities whose payment of principal and interest is
dependent upon revenues generated from transportation projects.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1996
Cost Value
______ ______
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $567,372,362 $593,917,424
Interest receivable........................ 11,539,907
Prepaid expenses........................... 24,619
______
605,481,950
______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 352,799
Due to Distributor......................... 6,893
Cash overdraft due to Custodian............ 10,959,338
Payable for Common Stock redeemed.......... 84,019
Accrued expenses........................... 129,779
______
11,532,828
______
NET ASSETS.................................................................. $593,949,122
======
REPRESENTED BY: Paid-in capital............................ $566,200,226
Accumulated net realized gain (loss) on investments 1,203,834
Accumulated net unrealized appreciation (depreciation)
....................... on investments_Note 3 26,545,062
______
NET ASSETS.................................................................. $593,949,122
======
SHARES OUTSTANDING
(500 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED)............. 45,675,957
NET ASSET VALUE, offering and redemption price per share_Note 2(d).......... $13.00
===
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1996
INVESTMENT INCOME
INCOME Interest Income............................ $ 38,202,705
EXPENSES: Management fee_Note 2(a)................... $ 3,662,218
Shareholder servicing costs_Note 2(b)...... 1,850,322
Professional fees.......................... 57,339
Custodian fees............................. 56,906
Directors' fees and expenses_Note 2(c)..... 40,218
Prospectus and shareholders' reports_Note 2(b) 15,060
Registration fees.......................... 5,189
Miscellaneous.............................. 38,640
______
Total Expenses....................... 5,725,892
Less_reduction in management fee due to
undertaking_Note 2(a).................. (842,935)
______
Net Expenses......................... 4,882,957
______
INVESTMENT INCOME_NET....................................................... 33,319,748
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments.... $ 9,376,479
Net unrealized appreciation (depreciation) on investments (22,801,500)
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (13,425,021)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 19,894,727
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1996 December 31, 1995
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income_net............................................ $ 33,319,748 $ 35,059,403
Net realized gain (loss) on investments.......................... 9,376,479 4,018,796
Net unrealized appreciation (depreciation) on investments........ (22,801,500) 49,285,419
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations 19,894,727 88,363,618
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................ (33,505,718) (34,967,410)
Net realized gain on investments................................. (10,462,166) (187,311)
_______ _______
Total Dividends................................................ (43,967,884) (35,154,721)
_______ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.................................... 602,957,562 345,417,332
Dividends reinvested............................................. 33,582,759 26,626,785
Cost of shares redeemed.......................................... (672,354,345) (348,941,494)
_______ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions (35,814,024) 23,102,623
_______ _______
Total Increase (Decrease) in Net Assets.................... (59,887,181) 76,311,520
NET ASSETS:
Beginning of Period.............................................. 653,836,303 577,524,783
_______ _______
End of Period.................................................... $ 593,949,122 $ 653,836,303
======= =======
UNDISTRIBUTED INVESTMENT INCOME_NET.................................. ___ $ 185,970
_______ _______
Shares Shares
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold...................................................... 46,189,858 26,279,832
Shares issued for dividends reinvested........................... 2,568,077 2,027,922
Shares redeemed.................................................. (51,413,282) (26,516,887)
_______ _______
Net Increase (Decrease) in Shares Outstanding.................. (2,655,347) 1,790,867
======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<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 period indicated. This
information has been derived from the Fund's financial statements.
Year Ended December 31,
______________________________________________________
PER SHARE DATA: 1996 1995 1994 1993 1992
___ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $13.53 $12.41 $14.03 $13.17 $13.06
___ ___ ___ ___ ___
Investment Operations:
Investment income_net........................ .72 .74 .78 .79 .80
Net realized and unrealized gain (loss)
on investments............................. (.30) 1.12 (1.61) .88 .31
___ ___ ___ ___ ___
Total from Investment Operations............. .42 1.86 (.83) 1.67 1.11
___ ___ ___ ___ ___
Distributions:
Dividends from investment income_net......... (.72) (.74) (.77) (.79) (.80)
Dividends from net realized gain on investments (.23) (.00)* ._ (.02) (.20)
Dividends in excess of net realized gain
on investments............................. ._ ._ (.02) ._ ._
___ ___ ___ ___ ___
Total Distributions.......................... (.95) (.74) (.79) (.81) (1.00)
___ ___ ___ ___ ___
Net asset value, end of period............... $13.00 $13.53 $12.41 $14.03 $13.17
=== === === === ===
TOTAL INVESTMENT RETURN.......................... 3.43% 15.29% (6.02%) 12.97% 8.77%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .80% .80% .77% .72% .73%
Ratio of net investment income
to average net assets...................... 5.46% 5.67% 5.94% 5.74% 6.06%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .14% .15% .20% .25% .25%
Portfolio Turnover Rate...................... 31.30% 24.37% 10.02% 6.05% 33.58%
Net Assets, end of period (000's Omitted).... $593,949 $653,836 $577,525 $725,815 $614,529
*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:
Dreyfus New Jersey Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income exempt from Federal
and New Jersey income taxes as is consistent with the preservation of
capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier
Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the
Fund's shares, which are sold to the public without a sales load.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: 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, if any, 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 value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses, 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 fiscal year,
the Fund may deduct from payments to be made to the Manager, or the Manager
will bear such excess expense. The Manager has
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
undertaken from January 1, 1996 through December 31, 1997 to reduce the
management fee paid by, or reimburse such excess expenses of 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 value
of the Fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $842,935 during the period ended
December 31, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(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 (a securities dealer, financial institution or other
industry professional) for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, 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. Both the Distributor
and Dreyfus may pay Service Agents 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.
Both the Distributor and Dreyfus determine the amounts to be paid to Service
Agents to which they 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 period
ended December 31, 1996, $1,527,513 was charged to the Fund pursuant to the
Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $211,435 during the period ended December 31, 1996.
(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 and the Director Emeritus receives 50% of such compensation.
(d) A 1% redemption fee is charged on certain redemptions of Fund shares
(including redemptions through use of the Exchange Privilege) where the
shares being redeemed were issued subsequent to a specified effective date
and the redemption or exchange occurs within a fifteen day period following
the date of issuance.
NOTE 3_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1996,
amounted to $187,986,464 and $204,846,401, respectively.
At December 31, 1996, accumulated net unrealized appreciation on
investments was $26,545,062, consisting of $28,595,741 gross unrealized
appreciation and $2,050,679 gross unrealized depreciation.
At December 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS NEW 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, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1996 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New Jersey Municipal Bond Fund, Inc. at December 31,
1996, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[ERNST & YOUNG LLP signature logo]
New York, New York
January 29, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended December 31, 1996:
_ all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are New
Jersey residents, New Jersey personal income taxes), and
_ the $.1784 per share paid by the Fund on December 5, 1996 represents a
long-term capital gain distribution. The Fund also designates $.0506 per
share paid as a long-term capital gain distribution paid on August 8, 1996.
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 1996 calendar year on Form 1099-DIV
which will be mailed by January 31, 1997.
[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 750AR9612
[Dreyfus logo]
New Jersey
Municipal
Bond Fund, Inc.
Annual Report
December 31, 1996
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 16,633 16,513
12/31/93 18,676 18,654
12/31/94 17,711 17,531
12/31/95 20,803 20,212
12/31/96 21,724 20,905
*Source: Lehman Brothers
