YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report for the Dreyfus New Jersey
Municipal Bond Fund, Inc. for the 12-month period ended December 31, 1998. Your
Fund produced a total return, including share price changes and dividend income
generated, of 5.82%,* and a tax-free distribution rate per share of 4.84%.**
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year, but world economic weakness generated powerful enough disinflationary
forces that the Fed acted instead to ease credit beginning in September. After
many years of subpar economic growth, continental Europe moved into a sustained
economic expansion. The overall European economy benefited as interest rates in
peripheral countries such as Spain and Italy fell, approaching the lower levels
established by Germany, on the eve of currency unification. Unlike the U.S.,
Europe has substantial excess capacity of productive plant and labor. In Asia,
weak economies were pervasive as a result of a financial crisis. The Latin
American economies weakened in turn as the financial stresses spread throughout
that region. On balance, there was a substantial weakening of the world economy
over the course of 1998 moderated mainly by the American consumer's role as
"spender of last resort."
A main influence on the U.S. economy during the year was the foreign financial
crisis and consequent cooling of the world economy. The positive effects hit
first. Actual inflation and expected inflation dropped, causing a decline in
long-term Treasury bond yields and mortgage rates. This caused a boom in
housing. The fall in inflation left more of the growth in consumer income with
which to buy goods and services. Thus, consumers benefited from a combination of
good growth in income after inflation, a strong labor market, and increases in
the prices of assets they owned, including bonds, stocks and real estate. In a
sense, 1998 was a year of disinflationary boom in the U.S., as above-trend
economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long-Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition away from the old
manufacturing industries to the new growth industries, such as biotechnology,
software, computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relax.
MARKET ENVIRONMENT
In calendar year 1998, municipal prices moved upward on a nearly uninterrupted
track from month to month. The environment for fixed-income securities was
constructive generally, and that was reflected in municipal prices. The positive
atmosphere was largely attributable to continued low inflation and low interest
rates contained within a strong U.S. economy. Other factors at work included the
emphatic movement toward lower rates created by the flight-to-quality buying of
U.S. Treasury securities which began with the unfolding global currency and
economic crises. Municipal interest rates trended downward along with
Treasuries' , although not to the same extent. During the year, buyers of
municipals were given comfort from a credit standpoint by the continued strength
of the U.S. economy, whose fiscal benefits extended to the treasuries of states,
cities, and beyond. A good measure of the willingness of investors to buy
municipals, and the ease with which municipalities felt new debt could be sold
even in a lower interest rate environment, can be seen in the near
record-breaking volume of new bonds issued during the year. A total of $284
billion in bonds was issued in 1998, just $8 billion less than in the
record-breaking year of 1993. The issuance of new bonds is not usually evenly
dispersed across the country, and in 1998 it was often difficult to locate
desirable paper to purchase in several states. That sizeable new issue calendar,
combined with global events and the effects of a dramatic stock market, made for
volatile trading sessions occasionally. As Treasury prices escalated in the face
of global turmoil, municipal yields vis-a-vis Treasury yields became
increasingly attractive. Historically, when long-term municipals yielded 80% to
85% of the yields available on Treasuries with comparable maturities, they were
considered to be good values. For much of 1998, the ratio hovered near 100%, and
even today is at 95%. The environment for municipal bonds still appears to be
positive: the dollar value of new issues in 1999 will likely be less than in
1998, while the continued favorable comparison of municipal yields vis-a-vis
Treasury yields, combined with the built-in tax advantages of municipal bonds,
should continue to command buyers' attention.
PORTFOLIO OVERVIEW
The primary objective in managing the portfolio continues to be the
realization of income exempt from both Federal and New Jersey income taxes. In
pursuing this goal, the Fund maintained a nucleus of high-coupon,
income-generating securities which produced an attractive level of tax-free
income while providing stability during flat to declining markets. However, as
the trend toward lower interest rates became more pronounced, strategy also
focused on lengthening the duration of the portfolio to capture more price
appreciation in anticipation of further declines in interest rates.
At present, we view credit spreads as too narrow to justify adding lower
quality securities in a slowing economic environment. At year-end, approximately
66% of the Fund was invested in securities rated "AAA," and 82% was invested in
those rated "A" or better, up from roughly 78% at the start of the period
While it is difficult at best to predict the future of interest rates, we feel
the portfolio is well balanced at present. We will continue to follow our
long-term objectives and monitor the volatile investment climate in order to
position the portfolio accordingly.
Very truly yours,
[Richard J. Moynihan signature]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
January 15, 1999
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
Income may be subject to state and local income taxes for non-New Jersey
residents.
**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 any capital gain distributions. Some income
may be subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC. DECEMBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW JERSEY
MUNICIPAL BOND FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
Dollars
$22,025
Lehman Brothers Municipal Bond Index*
$20,911
Dreyfus New Jersey Municipal Bond Fund, Inc.
*Source: Lehman Brothers
Average Annual Total Returns
- -----------------------------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
December 31, 1998 December 31, 1998 December 31, 1998
___________________ ___________________ ___________________
<S> <C> <C> <C>
5.82% 5.24% 7.66%
- ------------------------
Past performance is not predictive of future performance.
</TABLE>
The above graph compares a $10,000 investment made in Dreyfus New Jersey
Municipal Bond Fund, Inc. on 12/31/88 to a $10,000 investment made in the Lehman
Brothers Municipal Bond Index on that date. 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. The
Lehman Brothers Municipal Bond Index is not limited to investments principally
in New Jersey municipal obligations and does not take into account charges, fees
and other expenses. The Lehman Brothers Municipal Bond Index, unlike the Fund,
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. These factors can contribute to the Index potentially outperforming or
underperforming 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, 1998
Principal
Long-Term Municipal Investments--99.7% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
New Jersey--86.3%
Atlantic County Utilities Authority, Solid Waste System Revenue:
7%, 3/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,250,000 $ 4,248,597
7.125%, 3/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,650,000 6,647,140
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 1,535,650
Zero Coupon, 2/15/2012 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . 4,585,000 2,514,689
Casino Reinvestment Development Authority, Parking Fee Revenue
5.25%, 10/1/2014 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,120,750
Clearview Regional High School District, Refunding
5.375%, 8/1/2015 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,625,000 3,904,052
Delaware River Port Authority, Highway Toll Revenue 5.50%, 1/1/2026 (Insured; FGIC). . . . 5,000,000 5,210,700
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,240,000 2,552,353
Zero Coupon, 8/1/2011 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 1,422,800
East Orange Board of Education, COP, Lease Revenue:
5.50%, 8/1/2012 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 12,001,770
Zero Coupon, 2/1/2015 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,420,000 653,910
Zero Coupon, 8/1/2016 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,425,000 605,212
Zero Coupon, 8/1/2019 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 360,400
Zero Coupon, 2/1/2021 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,845,000 945,735
Zero Coupon, 2/1/2026 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,845,000 475,438
Zero Coupon, 2/1/2028 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,845,000 663,255
Essex County Improvement Authority, Revenue:
Lease:
7%, 12/1/2020 (Prerefunded 12/1/2000) (Insured; AMBAC) (a) . . . . . . . . . . . . . . 4,000,000 4,345,160
(County Correctional Facility Project) 5.70%, 1/1/2027 (Insured; FGIC) . . . . . . . . 7,030,000 7,517,038
Water (Utility System--Orange Franchise) 5.75%, 7/1/2027 (Insured; MBIA) . . . . . . . . 2,000,000 2,154,180
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Prerefunded 9/1/2001) (Insured; FGIC) (a) . . . . . . . . . . . . . . 3,050,000 3,359,148
Gloucester County Industrial Pollution Control Financing Authority,
Industrial Revenue, Refunding (Mobil Oil Refining Corp. Project)
5.625%, 12/1/2028 (Guaranteed; Mobil Oil Refining Corp.) . . . . . . . . . . . . . . . . 1,000,000 1,043,540
Gloucester County Utilities Authority, Sewer Revenue, Refunding
5.45%, 1/1/2024 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,294,637
Gloucester Township Municipal Utilities Authority, Sewer Revenue, Refunding
5.65%, 3/1/2018 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530,000 2,784,923
Hillsborough Township School District:
5.40%, 10/1/2020 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,720,000 1,775,780
5.40%, 10/1/2021 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,270,000 1,309,446
Hoboken, Refunding 4.75%, 8/1/2011 (Insured; FSA). . . . . . . . . . . . . . . . . . . . . 6,780,000 6,999,875
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC) . . . . . . . . . . . . . . . . 5,000,000 5,486,100
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New Jersey (continued)
Hudson County Improvement Authority:
Facility Lease Revenue 8.174%, 12/1/2025 (Prerefunded 12/1/2002)
(Insured; FGIC) (a,b,c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,835,000 $ 16,629,947
MFHR (Conduit Financing--Observer Park Project) 6.90%, 6/1/2022 (Insured; FNMA) . . . . 4,190,000 4,516,150
Jersey City:
Zero Coupon, 5/15/2010 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . 4,745,000 2,882,920
5.375%, 10/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,061,720
Refunding:
6%, 10/1/2008 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,490,000 2,831,479
6%, 10/1/2009 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,890,000 2,160,251
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (a). . . . . . . . 5,000,000 5,295,950
Mercer County Improvement Authority, Revenue (County Golf Course Project)
5%, 12/1/2008 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755,000 758,254
Middlesex County, COP:
4.85%, 6/15/2023 (Insured; MBIA). . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,615,000 1,582,102
4.85%, 6/15/2028 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,440,000 1,407,931
Middlesex County Improvement Authority, Revenue
(Golf Course Project) 5.20%, 2/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,026,330
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009 (Prerefunded 12/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,172,350
New Brunswick Housing Authority, LR, Refunding (Rutgers University)
4.625%, 7/1/2024 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,750,000 3,530,550
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (a) . . . . . . . . . . . . . . 2,000,000 2,083,120
State of New Jersey, Refunding 6%, 7/15/2010 . . . . . . . . . . . . . . . . . . . . . . . 7,400,000 8,556,694
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program) 8.50%, 7/1/2017 . . . . . . . . . . . . . . . . . 7,085,000 7,812,913
District Heating and Cooling
(Trigen--Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,190,000 3,417,351
6.20%, 12/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,725,000 2,880,325
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031 . . . . . . . . . . . . . . . . . . 2,855,000 3,094,906
Refunding (Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais) . . . . . . . 2,500,000 2,619,300
First Mortgage (The Evergreens) 9.25%, 10/1/2022 (Prerefunded 10/1/2002) (a) . . . . . . 5,000,000 6,018,500
Health, Hospital and Nursing Home, Refunding:
First Mortgage (Cadbury Corp. Project):
5.50%, 7/1/2018 (Insured; ACA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,013,190
5.50%, 7/1/2028 (Insured; ACA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,513,365
(Hillcrest Health Service):
Zero Coupon, 1/1/2012 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 1,000,000 551,540
Zero Coupon, 1/1/2013 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 1,000,000 519,710
Zero Coupon, 1/1/2015 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 3,250,000 1,502,638
Zero Coupon, 1/1/2017 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 5,000,000 2,062,700
Zero Coupon, 1/1/2018 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 2,500,000 980,025
Zero Coupon, 1/1/2020 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 6,500,000 2,290,015
Zero Coupon, 1/1/2022 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 6,000,000 1,903,680
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New Jersey (continued)
New Jersey Economic Development Authority, Revenue (continued):
Lease (Bergen County Administration Complex)
4.75%, 11/15/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 $ 14,384,100
Local or Guaranteed Housing, First Mortgage, Refunding (Fellowship Village):
5.50%, 1/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,465,250
5.50%, 1/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,927,100
Refunding (Morris Hall / Saint Lawrence Inc. Project):
5.50%, 4/1/2016 (LOC; Corestates Bank) . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,047,530
5.50%, 4/1/2027 (LOC; Corestates Bank) . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,624,110
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,605,000 7,094,166
8.50%, 2/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,850,000 6,828,822
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC) . . . . . . . . . . 11,500,000 12,518,900
(Elizabeth Water Co. Project) 6.70%, 8/1/2021 . . . . . . . . . . . . . . . . . . . . 3,965,000 4,252,542
New Jersey Educational Facilities Authority, Revenue, Refunding:
(Georgian Court College Project) 5.20%, 7/1/2015 . . . . . . . . . . . . . . . . . . . . 400,000 400,688
(Saint Peter's College Project):
5.375%, 7/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,014,570
5.50%, 7/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750,000 1,784,685
(Seton Hall University Project) 7%, 7/1/2021 . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,753,995
New Jersey Health Care Facilities Financing Authority, Health, Hospital and
Nursing
Home Revenue:
(Kimball Medical Center) 8%, 7/1/2013 (Prerefunded 7/1/2000) (a) . . . . . . . . . . . 13,000,000 14,129,570
(Palisades Medical Center):
7.50%, 7/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,850,000 1,978,334
7.60%, 7/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,350,000 2,512,643
(Raritan Bay Medical Center) 7.25%, 7/1/2014 . . . . . . . . . . . . . . . . . . . . . 12,300,000 13,061,616
Refunding:
(Centrastate Medical Center Obligated Group) 4.50%, 7/1/2028 (Insured: AMBAC) . . . 5,000,000 4,591,250
(Pascack Valley Hospital Association) 5.125%, 7/1/2028 . . . . . . . . . . . . . . 5,000,000 4,776,950
(Princeton Medical Center Obligation Group) 5.125%, 7/1/2018 (Insured; AMBAC) . . . 2,000,000 2,027,440
(Saint Barnabas Health) 4.75%, 7/1/2028 (Insured; MBIA) . . . . . . . . . . . . . . 8,000,000 7,616,240
(Saint Elizabeth Hospital Obligation Group):
6%, 7/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,653,000
6%, 7/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,171,180
(Virtua Health Issue) 4.50%, 7/1/2028 (Insured; FSA) . . . . . . . . . . . . . . . 5,750,000 5,279,938
New Jersey Higher Education Assistance Authority, Student Loan Revenue
5.30%, 6/1/2017 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,250,000 9,460,438
New Jersey Housing and Mortgage Finance Agency, Revenue:
Home Buyer, Refunding 5.25%, 10/1/2018 (Insured; MBIA) . . . . . . . . . . . . . . . . . 6,680,000 6,755,417
Multi-Family Housing:
5.65%, 5/1/2040 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,552,600
Refunding (Presidential Plaza at Newport Project) 7%, 5/1/2030 (Insured; FHA) . . . . 5,000,000 5,454,600
Rental Housing (Tiffany Manor) 6.75%, 11/1/2022 . . . . . . . . . . . . . . . . . . . . 9,310,000 9,904,164
New Jersey Sports and Exposition Authority, Recreational Revenue, Refunding
4.50%, 3/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,875,000 5,444,774
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New Jersey (continued)
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond Plaza East
Inc.)
6.50%, 10/1/2016 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,945,000 $ 4,576,752
New Jersey Transportation Trust Fund Authority, (Transportation System):
5%, 6/15/2018 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000,000 19,099,180
Refunding:
6.50%, 6/15/2011 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 13,220,130
7%, 6/15/2012 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 7,522,380
New Jersey Turnpike Authority, Turnpike Revenue, Refunding
6.50%, 1/1/2016 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,665,000 17,645,075
North Jersey District Water Supply Commission, Sewer Revenue (Wanaque South
Project)
6%, 7/1/2019 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,284,480
Ocean County Pollution Control Financing Authority, PCR, Refunding
(Ciba Geigy Corp. Project) 6%, 5/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,689,500
Perth Amboy Board of Education, COP, Refunding 5%, 12/15/2017 (Insured; FSA) . . . . . . . 2,600,000 2,592,044
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008 . . . . . . . . . . . . . . . . . . . . . 7,200,000 7,743,096
Port, Airport, and Marina Improvements Revenue:
(Consolidated Bond 104th Series) 4.75%, 1/15/2026 (Insured; AMBAC) . . . . . . . . . . 2,200,000 2,114,156
(Consolidated Bond 116th Series) 4.25%, 10/1/2026 (Insured; AMBAC) . . . . . . . . . . 17,985,000 15,909,711
Refunding:
5.25%, 7/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,970,000 2,050,711
5%, 12/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,475,000 5,465,474
5%, 6/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,780,000 1,771,385
Special Obligation Revenue:
(U.S. Air LaGuardia Project) 9.125%, 12/1/2015 . . . . . . . . . . . . . . . . . . . . 6,500,000 7,135,635
(JFK International Air Terminal):
6.25%, 12/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,856,100
5.75%, 12/1/2022 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 17,885,000 19,072,027
Rutgers University, College and University Revenue 5.20%, 5/1/2022 . . . . . . . . . . . . 4,400,000 4,471,808
South Jersey Transportation Authority, Port, Airport and Marina Lease Revenue
(Raytheon Aircraft Service Inc. Project) 6.15%, 1/1/2022 . . . . . . . . . . . . . . . . 510,000 542,380
Union County Utilities Authority, RRR 5%, 6/15/2028 (Guaranteed; Union County) . . . . . . 1,250,000 1,247,100
University of Medicine and Dentistry 7.20%, 12/1/2019 (Prerefunded 12/1/1999) (a). . . . . 5,710,000 6,033,985
Western Monmouth Utilities Authority, Sewer Revenue, Refunding
5.60%, 2/1/2014 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,190,000 2,349,542
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (a) . . . . . . . . . . . . . 6,250,000 6,831,438
U.S. Related--13.4%
Commonwealth of Puerto Rico:
5.40%, 7/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300,000 6,491,142
5.375%, 7/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,580,000 2,647,235
Refunding:
6.50%, 7/1/2014 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,260,000 8,822,207
5.65%, 7/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,231,100
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a) . . . . . . . . . . . . . 5,400,000 6,039,738
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
U.S. Related (continued)
Puerto Rico Electric Power Authority, Power Revenue 5.50%, 7/1/2025 (Insured; AMBAC) . . . $ 5,000,000 $ 5,206,200
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.329%, 7/1/2007 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,100,000 12,418,125
5.966%, 7/1/2009 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,950,000 3,289,250
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (a) . . . . . . . . . . . . . . . . . 13,000,000 14,465,880
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (a) . . . . . . . . . . . . . . . . . 2,040,000 2,270,030
5%, 7/1/2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 7,979,840
5%, 7/1/2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,250,000 6,077,000
Puerto Rico Ports Authority, Special Facilities Revenue
(American Airlines Inc. Project) 6.25%, 6/1/2026 (Guaranteed; AMR Corp.) . . . . . . . . 3,000,000 3,219,330
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $561,877,151) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.7% $604,455,962
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3% $ 1,931,903
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $606,387,865
_______ _____________
Summary of Abbreviations
- -----------------------------------------------------------------------------
ACA American Capital Access LOC Letter of Credit
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
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
FSA Financial Security Assurance RRR Resources Recovery Revenue
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ___________________
AAA Aaa AAA 65.4%
AA Aa AA 5.8
A A A 11.1
BBB Baa BBB 8.6
BB Ba BB .7
B B B 1.2
Not Rated (d) Not Rated (d) Not Rated (d) 7.2
_______
100.0%
_______
_______
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,
1998, this security amounted to $16,629,947 or 2.7% of net assets.
(d) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $561,877,151 $604,455,962
Interest receivable . . . . . . . . . . . . . . . . . . . 9,608,883
Receivable for shares of Common Stock subscribed . . . . 131,947
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 9,664
_____________
614,206,456
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 406,093
Due to Distributor . . . . . . . . . . . . . . . . . . . 10,003
Cash overdraft due to Custodian . . . . . . . . . . . . . 3,626,271
Payable for investment securities purchased . . . . . . . 3,600,898
Accrued expenses . . . . . . . . . . . . . . . . . . . . 175,326
_____________
7,818,591
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $606,387,865
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $562,250,441
Accumulated net realized gain (loss) on investments . . . 1,558,613
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 42,578,811
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $606,387,865
_____________
SHARES OUTSTANDING
(500 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED). . . . . . . . . . . . . . 45,339,681
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $13.37
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $34,478,110
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 3,596,481
Shareholder servicing costs--Note 3(b) . . . . . . . . . 1,812,457
Custodian fees . . . . . . . . . . . . . . . . . . . . . 58,011
Professional fees . . . . . . . . . . . . . . . . . . . . 50,072
Directors' fees and expenses--Note 3(c) . . . . . . . . . 38,740
Prospectus and shareholders' reports--Note 3(b) . . . . . 26,117
Registration fees . . . . . . . . . . . . . . . . . . . . 13,987
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 4,358
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 28,935
____________
Total Expenses . . . . . . . . . . . . . . . . . . 5,629,158
Less--reduction in management fee due to
undertaking--Note 3(a) . . . . . . . . . . . . . . . . (265,764)
____________
Net Expenses . . . . . . . . . . . . . . . . . . . 5,363,394
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,114,716
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ 4,847,822
Net unrealized appreciation (depreciation) on investments . . 154,655
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 5,002,477
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $34,117,193
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1998 December 31, 1997
_________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29,114,716 $ 30,630,024
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . 4,847,822 3,536,391
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . 154,655 15,879,094
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 34,117,193 50,045,509
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29,114,716) (30,630,024)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . (4,012,166) (4,017,268)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,126,882) (34,647,292)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . 92,256,576 137,672,657
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,418,722 25,649,350
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . (107,496,015) (176,451,075)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . 9,179,283 (13,129,068)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . 10,169,594 2,269,149
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596,218,271 593,949,122
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $606,387,865 $596,218,271
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,885,374 10,576,756
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . 1,821,205 1,956,865
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,025,203) (13,551,273)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . 681,376 (1,017,652)
_____________ _____________
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 period indicated. This information has been
derived from the Fund's financial statements.
Year Ended December 31,
________________________________________
______________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $13.35 $13.00 $13.53 $12.41 $14.03
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .65 .68 .72 .74 .78
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .11 .44 (.30) 1.12 (1.61)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . .76 1.12 .42 1.86 (.83)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.65) (.68) (.72) (.74) (.77)
Dividends from net realized gain on investments . . . . . (.09) (.09) (.23) (.00)* --
Dividends in excess of net realized gain
on investments . . . . . . . . . . . . . . . . . . . -- -- -- -- (.02)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . (.74) (.77) (.95) (.74) (.79)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $13.37 $13.35 $13.00 $13.53 $12.41
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 5.82% 8.84% 3.43% 15.29% (6.02%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .90% .80% .80% .80% .77%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.86% 5.23% 5.46% 5.67% 5.94%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . .04% .14% .14% .15% .20%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 36.39% 28.01% 31.30% 24.37% 10.02%
Net Assets, end of period (000's Omitted) . . . . . . . . $606,388 $596,218 $593,949 $653,836 $577,525
- -----------------------------
* 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, as amended (the "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 (the "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" ) is 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: Investments in securities 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. Under the terms of the custody
agreement, the Fund received net earning credits of $3,174 during the period
ended December 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
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 of 1986,
as amended (the "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 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--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (" Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
December 31, 1998, the Fund did not borrow under the Facility.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--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, commitment fees 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 had undertaken through
December 31, 1998 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) exceeded an annual rate of .90 of 1% of the value of the Fund's
average daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $265,764 during the period ended December 31, 1998.
(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 amount, if any, to be paid to Service Agents 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 value of the Fund's average daily net assets for any full
year. During the period ended December 31, 1998, the Fund was charged $1,504,599
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. During the period
ended December 31, 1998, the Fund was charged $205,251 pursuant to the transfer
agency agreement.
(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 and retained by the Fund on shares
redeemed within fifteen days of their issuance, including redemptions made
through the use of the Fund Exchange privilege. During the period ended December
31, 1998, redemption fees retained by the Fund amounted to $268.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1998,
amounted to $243,850,510 and $214,496,024, respectively.
At December 31, 1998, accumulated net unrealized appreciation on investments
was $42,578,811, consisting of $43,742,000 gross unrealized appreciation and
$1,163,189 gross unrealized depreciation.
At December 31, 1998, 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, 1998, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998 by correspondence with the custodian
and brokers. 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, 1998, 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.
New York, New York
February 2, 1999
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, 1998:
--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 Fund hereby designates $.0478 per share as a long-term capital gain
distribution of the $.0705 per share paid on December 8, 1998 and also
designates $.0101 per share as a long-term capital gain distribution of the
$.0186 per share paid on July 7, 1998.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends and capital gains
distributions paid for the 1998 calendar year on Form 1099-DIV which will be
mailed by January 31, 1999.
[reg.tm logo]
(reg.tm)
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. 750AR9812
New Jersey
Municipal
Bond Fund, Inc.
Annual Report
December 31, 1998
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, INC.
12/31/88 10,000 10,000
12/31/89 11,079 10,911
12/31/90 11,886 11,778
12/31/91 13,329 13,185
12/31/92 14,504 14,342
12/31/93 16,286 16,202
12/31/94 15,444 15,226
12/31/95 18,140 17,555
12/31/96 18,943 18,156
12/31/97 20,685 19,761
12/31/98 22,025 20,911
*Source: Lehman Brothers
