Dreyfus
New Jersey Municipal
Bond Fund, Inc.
ANNUAL REPORT December 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. 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.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Financial Highlights
18 Notes to Financial Statements
23 Report of Independent Auditors
24 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus New Jersey Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus New Jersey Municipal
Bond Fund, Inc., covering the 12-month period from January 1, 1999 through
December 31, 1999. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, W. Michael Petty.
The past year has been challenging for municipal bond investors. Robust economic
growth fueled concerns that long-dormant inflationary pressures might re-emerge,
potentially reducing the future value of interest and principal payments for
both taxable and tax-exempt bonds. These concerns prompted the Federal Reserve
Board to raise key short-term interest rates three times during the summer and
fall of 1999 in an attempt to prevent a reacceleration of inflation.
The municipal bond marketplace was also subject to adverse supply-and-demand
influences, which caused tax-exempt securities to decline more sharply than
comparable taxable securities during the reporting period. Lackluster demand for
tax-exempt securities from corporations and institutions more than offset the
positive effects of reduced supply and greater demand from individual investors.
By year-end, tax-exempt fixed-income securities were providing a historically
high percentage of the yield of comparable maturity U.S. Treasury securities,
making them a very good value, in our opinion, for investors seeking tax-exempt
income.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus New Jersey Municipal Bond Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
January 14, 2000
DISCUSSION OF FUND PERFORMANCE
W. Michael Petty, Portfolio Manager
How did Dreyfus New Jersey Municipal Bond Fund, Inc. perform during the period?
For the one-year period ended December 31, 1999, the fund produced a -4.24%
total return.(1) In comparison, the Lipper New Jersey Municipal Debt Funds
category average provided a -4.61% total return(2) for the same period.
We attribute the fund's negative absolute performance to a declining municipal
bond market in a rising interest-rate environment. The fund' s modest
outperformance compared to its benchmark is primarily the result of our duration
management strategy, in which we made the fund less sensitive to changing
interest rates and thus muted the negative impact of higher rates during the
second half of the year.
What is the fund's investment approach?
Our goal is to seek as high a level of current income exempt from federal and
New Jersey personal income taxes as is consistent with the preservation of
capital.
To achieve this objective, we have continued to employ two primary strategies.
First, because New Jersey issues relatively few municipal bonds, we begin by
evaluating supply-and-demand factors in the bond market. We look at such
criteria as the bond' s yield, price, age, creditworthiness of its issuer,
insurance, and any provisions for early redemption. Under most circumstances, we
look for investment-grade bonds that have 10-year call protection and that are
selling at a discount to face value.
Second, while we generally do not attempt to predict changes in interest rates,
we may tactically manage the fund' s average duration in anticipation of
temporary supply-and-demand changes. If we expect the supply of newly issued
bonds to increase, we may reduce the fund's average duration to make cash
available for the purchase of higher
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
yielding securities. Conversely, if we expect demand for municipal bonds to
surge at a time when we anticipate little issuance, we may increase the fund's
average duration to maintain current yields for as long as practical.
What other factors influenced the fund's performance?
The fund was adversely affected by rising interest rates and a fall-off in
demand for municipal securities from institutional investors during 1999.
Just before the reporting period began, investors were concerned about the
potentially adverse effects of the global financial crisis. In response, the
Federal Reserve Board reduced short-term interest rates last fall in an attempt
to stimulate global economic growth. Its strategy apparently was effective,
because overseas economies began to recover early in 1999, and the growth of the
U.S. economy was stronger than most analysts expected. Municipal bond yields and
prices stabilized in this environment.
In the second through fourth quarters of 1999, however, strong economic growth
in both domestic and overseas markets raised concerns among fixed-income
investors that inflationary pressures might re-emerge. In response, the Federal
Reserve Board increased short-term interest rates three times during the summer
and fall of 1999 in an attempt to forestall a reacceleration of inflation. This
change in monetary policy caused prices of most bonds to fall.
Municipal bond prices generally fell faster than prices of taxable U.S. Treasury
securities because of supply-and-demand influences. For a variety of reasons,
institutional investors such as insurance companies and hedge funds participated
less in the tax-exempt market over the past year, which reduced overall demand
and drove municipal bond yields higher. As a result, municipal bonds --
including those from New Jersey issuers -- are currently offering tax-exempt
yields that compare very favorably with taxable yields after adjusting for
taxes.
What is the fund's current strategy?
We focused primarily on maintaining the fund's average duration in a rising
interest-rate environment. Accordingly, we reduced our exposure to bonds that we
considered most vulnerable to higher interest rates, especially those at the
lower end of the investment-grade credit quality range. We also reduced our
exposure to bonds issued by hospitals because of uncertainty surrounding
legislation that could adversely affect their Medicare payments.
We attempted to reinvest the proceeds from those sales in tax-exempt bonds with
defensive characteristics, including investment-grade, intermediate-term bonds
that have provisions preventing them from being redeemed by their issuers within
the next several years. Bonds with these characteristics generally performed
better than bonds without such protection in 1999. On the other hand, returns
were hurt by our relatively modest holdings of zero-coupon and discount bonds,
which were particularly hard-hit.
In December, we increased our cash reserves to maintain liquidity amid year-end
and potential Y2K pressures. This cash position is also intended to help us
capture attractive values as they arise in the early part of 2000.
January 14, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS
PAID. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE,
YIELD AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND
SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY
BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-NEW JERSEY RESIDENTS, AND
SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS. RETURN FIGURES
PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS
CORPORATION PURSUANT TO AN AGREEMENT IN WHICH SHAREHOLDERS ARE GIVEN
AT LEAST 90 DAYS' NOTICE, AT WHICH TIME IT MAY BE EXTENDED, TERMINATED
OR MODIFIED. HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S RETURNS
WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus New Jersey
Municipal Bond Fund, Inc. and the Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 12/31/99
<TABLE>
1 Year 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FUND (4.24)% 5.63% 6.26%
</TABLE>
(+) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 12/31/89 TO A $10,000 INVESTMENT MADE IN THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED.
THE FUND INVESTS PRIMARILY IN NEW JERSEY MUNICIPAL SECURITIES AND ITS
PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES. THE
LEHMAN BROTHERS MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS PRINCIPALLY
IN NEW JERSEY MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT CHARGES, FEES
AND OTHER EXPENSES. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX, UNLIKE THE FUND,
IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE LONG-TERM,
INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED TAX-EXEMPT BOND MARKET, CALCULATED
BY USING MUNICIPAL BONDS SELECTED TO BE REPRESENTATIVE OF THE MUNICIPAL MARKET
OVERALL. THESE FACTORS CAN CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR
UNDERPERFORMING THE FUND. FURTHER INFORMATION RELATING TO FUND PERFORMANCE,
INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL
HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
December 31, 1999
<TABLE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--94.9% Amount ($) Value ($)
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<S> <C> <C>
NEW JERSEY--84.4%
Atlantic County Utilities Authority,
Solid Waste System Revenue:
7%, 3/1/2008 4,250,000 4,221,610
7.125%, 3/1/2016 6,650,000 6,582,502
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA) 2,500,000 1,432,750
Zero Coupon, 2/15/2012 (Insured; FSA) 4,585,000 2,304,834
Cherry Hill Township School District:
4.75%, 2/15/2018 (Insured; FSA) 1,250,000 1,080,575
4.75%, 2/15/2019 (Insured; FSA) 1,347,000 1,152,103
Clearview Regional High School District
5.375%, 8/1/2015 (Insured; FGIC) 3,625,000 3,535,245
Delaware River and Bay Authority, Revenue
5.25%, 1/1/2026 (Insured; FGIC) 5,000,000 4,482,200
Delaware River Port Authority, Highway Toll Revenue
5.50%, 1/1/2026 (Insured; FGIC) 500,000 463,890
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA) 4,240,000 2,392,420
Zero Coupon, 8/1/2011 (Insured; FSA) 2,500,000 1,322,275
East Orange Board of Education, COP, LR:
Zero Coupon, 2/1/2015 (Insured; FSA) 1,420,000 586,858
Zero Coupon, 8/1/2016 (Insured; FSA) 1,425,000 535,059
Zero Coupon, 8/1/2019 (Insured; FSA) 1,000,000 305,660
Zero Coupon, 2/1/2021 (Insured; FSA) 2,845,000 786,045
Zero Coupon, 2/1/2026 (Insured; FSA) 1,845,000 371,011
Zero Coupon, 2/1/2028 (Insured; FSA) 2,845,000 505,215
Essex County Improvement Authority, Revenue:
Lease:
7%, 12/1/2020
(Prerefunded 12/1/2000) (Insured; AMBAC) 4,000,000 (a) 4,184,160
(County Correctional Facility Project)
5.70%, 1/1/2027 (Insured; FGIC) 2,900,000 2,792,265
Water (Utility System - Orange Franchise)
5.75%, 7/1/2027 (Insured; MBIA) 1,500,000 1,454,310
Evesham Township Board of Education, COP,
Lease Purchase Agreement 6.875%, 9/1/2011
(Prerefunded 9/1/2001) (Insured; FGIC) 3,050,000 (a) 3,222,965
Gloucester County Industrial Pollution Control Financing
Authority, Industrial Revenue (Mobil Oil Refining
Corp. Project) 5.625%, 12/1/2028
(Guaranteed; Mobil Oil Refining Corp.) 1,000,000 942,880
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
Gloucester Township Municipal Utilities Authority, Sewer
Revenue 5.65%, 3/1/2018 (Insured; AMBAC) 2,530,000 2,497,844
Howell Township 6.80%, 1/1/2014 (Insured; FGIC) 5,000,000 5,272,150
Hudson County Improvement Authority:
Facility Lease Revenue 7.67%, 12/1/2025
(Prerefunded 12/1/2002) (Insured; FGIC) 13,835,000 (a,b,c) 15,354,360
MFHR (Conduit Financing - Observer Park Project)
6.90%, 6/1/2022 (Insured; FNMA) 4,190,000 4,330,868
Jersey City:
Zero Coupon, 5/15/2010 (Insured; FSA) 4,745,000 2,703,179
6%, 10/1/2008 (Insured; AMBAC) 2,490,000 2,649,982
6%, 10/1/2009 (Insured; AMBAC) 1,890,000 2,009,826
Middlesex County Improvement Authority, Revenue
Utility System (Perth Amboy Project):
Zero Coupon 9/1/2020 (Insured; AMBAC) 5,000,000 1,414,200
Zero Coupon 9/1/2022 (Insured; AMBAC) 5,000,000 1,246,000
State of New Jersey:
6%, 7/15/2010 7,400,000 7,906,456
5%, 2/1/2014 9,190,000 8,635,935
6.725%, 2/1/2014 5,000,000 (b,c) 4,397,100
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program)
8.50%, 7/1/2017 6,885,000 7,271,593
(Department of Human Services):
6.10%, 7/1/2017 4,370,000 4,318,696
6.25%, 7/1/2024 1,700,000 1,667,632
District Heating and Cooling
(Trigen - Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004 2,815,000 2,823,698
6.20%, 12/1/2007 2,725,000 2,676,985
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031 2,855,000 2,933,427
(Tevco Inc. Project)
8.125%, 10/1/2009 (LOC; Credit Lyonnais) 2,500,000 2,577,625
(United Methodist Homes of New Jersey Obligation)
5.50%, 7/1/2019 2,500,000 2,131,450
(Educational Testing Service)
4.75%, 5/15/2025 (Insured; MBIA) 1,500,000 1,241,040
First Mortgage (The Evergreens)
9.25%, 10/1/2022 (Prerefunded 10/1/2002) 4,900,000 (a) 5,538,323
Health, Hospital and Nursing Home:
First Mortgage (Cadbury Corp. Project)
5.50%, 7/1/2018 (Insured; ACA) 1,000,000 903,720
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
New Jersey Economic Development Authority,
Revenue (continued):
Health, Hospital and Nursing Home (continued):
(Hillcrest Health Service):
Zero Coupon, 1/1/2012 (Insured; AMBAC) 1,000,000 509,150
Zero Coupon, 1/1/2013 (Insured; AMBAC) 1,000,000 475,850
Zero Coupon, 1/1/2015 (Insured; AMBAC) 3,250,000 1,339,942
Zero Coupon, 1/1/2017 (Insured; AMBAC) 5,000,000 1,801,750
Zero Coupon, 1/1/2018 (Insured; AMBAC) 2,500,000 841,000
Zero Coupon, 1/1/2020 (Insured; AMBAC) 6,500,000 1,903,785
Zero Coupon, 1/1/2022 (Insured; AMBAC) 6,000,000 1,547,640
Local or Guaranteed Housing,
First Mortgage (Fellowship Village):
5.50%, 1/1/2018 2,500,000 2,162,000
5.50%, 1/1/2025 3,000,000 2,506,050
(Morris Hall / Saint Lawrence Inc. Project)
5.50%, 4/1/2027 (LOC; Corestates Bank) 3,500,000 3,193,855
Special Facilities Revenue (Continental Airlines
Inc. Project) 6.25%, 9/15/2019 10,000,000 9,360,200
State Lease Revenue (Bergen County Administration
Complex) 4.75%, 11/15/2026 (Insured; MBIA) 9,925,000 8,125,399
Transportation Project Sublease:
5.25%, 5/1/2017 (Insured; FSA) 3,000,000 2,803,770
5%, 5/1/2018 (Insured; FSA) 4,115,000 3,688,233
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009 6,605,000 6,606,849
8.50%, 2/1/2010 5,850,000 6,395,044
Water Facilities:
(American Water Co. Inc. Project) :
6.50%, 4/1/2022 (Insured; FGIC) 11,500,000 11,675,030
5.25%, 7/1/2038 (Insured; FGIC) 5,315,000 4,547,514
(Elizabeth Water Co. Project) 6.70%, 8/1/2021 3,965,000 4,132,442
New Jersey Educational Facilities Authority, Revenue:
(Institute for Advanced Study) 5%, 7/1/2028 2,310,000 1,970,800
(New Jersey City University)
4.75%, 7/1/2020 (Insured; AMBAC) 1,000,000 846,880
(Saint Peter's College Project):
5.375%, 7/1/2018 1,000,000 893,260
5.50%, 7/1/2027 1,750,000 1,523,725
(Seton Hall University Project):
7%, 7/1/2021 2,320,000 2,445,419
7%, 7/1/2021 (Prerefunded 7/1/2001) 1,180,000 (a) 1,243,791
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority,
Health, Hospital and Nursing Home Revenue:
(Burdette Tomlin Memorial Hospital):
5.50%, 7/1/2019 1,500,000 1,346,970
5.50% 7/1/2029 5,000,000 4,332,750
(Catholic Health East) 4.75%, 11/15/2021 2,000,000 1,658,280
(Centrastate Medical Center Obligated Group)
4.50%, 7/1/2028 (Insured: AMBAC) 10,890,000 8,401,744
(Kimball Medical Center)
8%, 7/1/2013 (Prerefunded 7/1/2000) 12,375,000 (a) 12,859,976
(Meridian Health Systems Obligated Group)
5.25%, 7/1/2029 (Insured; FSA) 1,350,000 1,188,013
(Palisades Medical Center Obligated Group):
7.50%, 7/1/2006 635,000 663,023
7.50%, 7/1/2006 (Prerefunded 7/1/2002) 1,040,000 (a) 1,100,840
5.25%, 7/1/2018 (Insured; ACA) 1,550,000 1,279,014
5.20%, 7/1/2019 (Insured; ACA) 1,725,000 1,472,167
7.60%, 7/1/2021 950,000 991,401
7.60%, 7/1/2021 (Prerefunded 7/1/2002) 1,400,000 (a) 1,519,826
(Pascack Valley Hospital Association)
5.125%, 7/1/2028 4,050,000 3,069,738
(Raritan Bay Medical Center) 7.25%, 7/1/2014 11,400,000 10,990,170
(Saint Barnabas Health):
Zero Coupon, 7/1/2023 (Insured; MBIA) 5,000,000 1,173,200
5%, 7/1/2024 (Insured; MBIA) 5,755,000 4,945,559
(Saint Elizabeth Hospital Obligated Group):
6%, 7/1/2014 2,500,000 2,266,100
6%, 7/1/2020 3,000,000 2,611,500
New Jersey Higher Education Assistance Authority, Student
Loan Revenue:
5.30%, 6/1/2017 (Insured; AMBAC) 7,585,000 7,033,495
5.25%, 6/1/2018 (Insured; MBIA) 900,000 822,051
New Jersey Highway Authority, Revenue (Garden State
Parkway) 6%, 1/1/2019 2,000,000 2,058,280
New Jersey Housing and Mortgage Finance Agency, Revenue:
Multi-Family Housing:
5.65%, 5/1/2040 (Insured; AMBAC) 1,700,000 1,585,539
(Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA) 4,000,000 4,193,200
Rental Housing (Tiffany Manor) 6.75%, 11/1/2022 9,310,000 9,593,024
New Jersey Sports and Exposition Authority:
Convention Center Luxury Revenue
5%, 9/1/2019 (Insured; MBIA) 6,210,000 5,488,274
Recreational Revenue 4.50%, 3/1/2024 550,000 440,347
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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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 4,227,659
New Jersey Transportation Trust Fund Authority
(Transportation System):
6.50%, 6/15/2011 (Insured; MBIA) 11,000,000 12,177,220
7%, 6/15/2012 (Insured; MBIA) 6,000,000 6,894,480
5.75%, 6/15/2017 6,000,000 5,996,520
5.75%, 6/15/2018 6,000,000 5,962,740
5.75%, 6/15/2020 6,500,000 6,403,800
New Jersey Turnpike Authority, Turnpike Revenue
6.50%, 1/1/2016 (Insured; MBIA) 14,665,000 15,973,118
North Jersey District Water Supply Commission,
Sewer Revenue (Wanaque South Project)
6%, 7/1/2019 (Insured; MBIA) 2,000,000 2,071,040
Ocean County, General Improvement 5.375%, 12/1/2019 1,700,000 1,593,308
Ocean County Pollution Control Financing Authority, PCR
(Ciba Geigy Corp. Project) 6%, 5/1/2020 10,000,000 10,042,000
Port Authority of New York and New Jersey:
Port, Airport, and Marina Improvements Revenue:
5.25%, 7/1/2014 1,605,000 1,505,025
(Consolidated Bond 116th Series)
4.25%, 10/1/2026 (Insured; AMBAC) 13,910,000 10,395,639
(Consolidated Bond 119th Series)
5.50%, 9/15/2019 (Insured; FGIC) 4,500,000 4,224,240
Special Obligation Revenue:
(U.S. Air LaGuardia Project) 9.125%, 12/1/2015 6,500,000 6,818,435
(JFK International Air Terminal):
6.25%, 12/1/2015 (Insured; MBIA) 5,000,000 5,266,150
5.75%, 12/1/2022 (Insured; MBIA) 17,370,000 16,654,703
South Jersey Transportation Authority, Revenue:
Port, Airport and Marina Lease (Raytheon
Aircraft Service Inc. Project) 6.15%, 1/1/2022 510,000 466,222
Transportation System 5%, 11/1/2029 (Insured; AMBAC) 7,250,000 6,164,095
Western Monmouth Utilities Authority, Sewer Revenue
5.60%, 2/1/2014 (Insured; AMBAC) 2,190,000 2,194,314
West New York Municipal Utilities Authority,
Sewer Revenue 7.30%, 12/15/2017
(Prerefunded 12/15/2000) (Insured; FGIC) 6,250,000 (a) 6,561,438
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED --10.5%
Guam Power Authority 5%, 10/1/2024 1,240,000 1,063,300
Commonwealth of Puerto Rico:
6.50%, 7/1/2014 (Insured; MBIA) 7,260,000 8,005,820
5.65%, 7/1/2015 (Insured; MBIA) 2,000,000 2,021,640
Puerto Rico Highway and Transportation Authority,
Highway Revenue:
5.444%, 7/1/2007 11,100,000 (b) 11,349,750
5.548%, 7/1/2009 2,950,000 (b) 2,961,062
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) 13,000,000 (a) 13,838,370
5%, 7/1/2036 8,000,000 6,593,760
Puerto Rico Port Authority, Special Facilities Revenue
(American Airlines Inc. Project)
6.25%, 6/1/2026 (Guaranteed; AMR Corp.) 3,000,000 2,907,540
Puerto Rico Public Buildings Authority, Revenue
5.25%, 7/1/2021 (Insured; FSA) 2,700,000 2,467,827
Virgin Islands Public Finance Authority, Revenues,
Gross Receipts Taxes Loan Note:
6.375%, 10/1/2019 2,000,000 1,969,980
6.50%, 10/1/2024 2,000,000 1,980,320
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $505,608,844) 499,534,295
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SHORT-TERM MUNICIPAL INVESTMENTS--3.2%
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY;
New Jersey Economic Development Authority, EDR, VRDN
(El Dorado Terminal Project)
4.90% (Guaranteed; Dow Chemical Corp.) 5,300,000 (d) 5,300,000
Port Authority of New York and New Jersey
Special Obligation Revenue, VRDN:
4.90% (SBPA; Morgan Guaranty Trust Co.) 5,200,000 (d) 5,200,000
5% (SBPA; Bank of Nova Scotia) 6,450,000 (d) 6,450,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $16,950,000) 16,950,000
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TOTAL INVESTMENTS
(cost $522,558,844) 98.1% 516,484,295
CASH AND RECEIVABLES (NET) 1.9% 9,894,346
NET ASSETS 100.0% 526,378,641
Summary of Abbreviations
ACA American Capital Access
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
EDR Economic Development Revenue
FGIC Financial Guaranty Insurance
Company
FHA Federal Housing Administration
FNMA Federal National Mortgage
Association
FSA Financial Security Assurance
LOC Letter of Credit
LR Lease Revenue
MBIA Municipal Bond
Investors Assurance
Insurance Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SBPA Standby Bond Purchase
Agreement
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 57.7
AA Aa AA 9.7
A A A 11.9
BBB Baa BBB 7.8
BB Ba BB 3.1
F1 Mig1 SP1 3.3
Not Rated(e) Not Rated(e) Not Rated(e) 6.5
100.0
(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) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES
ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT
FROM REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT
DECEMBER 31, 1999, THESE SECURITIES AMOUNTED TO $19,751,460 OR 3.8% OF
NET ASSETS.
(D) SECURITIES PAYABLE ON DEMAND. VARIABLE RATE INTEREST--SUBJECT TO
PERIODIC CHANGE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD &
POOR'S, HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE
QUALITY TO THOSE RATED SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 522,558,844 516,484,295
Cash 86,356
Interest receivable 9,735,792
Receivable for investment securities sold 523,127
Prepaid expenses 8,219
526,837,789
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 337,440
Due to Distributor 11,671
Payable for shares of Common Stock redeemed 7,044
Accrued expenses 102,993
459,148
- --------------------------------------------------------------------------------
NET ASSETS ($) 526,378,641
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 537,175,040
Accumulated net realized gain (loss) on investments (4,721,850)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (6,074,549)
- --------------------------------------------------------------------------------
NET ASSETS ($) 526,378,641
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(500 million shares of $.001 par value Common Stock authorized) 43,311,635
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 12.15
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 33,756,666
EXPENSES:
Management fee--Note 3(a) 3,472,134
Shareholder servicing costs--Note 3(b) 1,724,097
Custodian fees 57,984
Professional fees 49,627
Directors' fees and expenses--Note 3(c) 38,552
Prospectus and shareholders' reports--Note 3(b) 25,552
Registration fees 15,570
Loan commitment fees--Note 2 2,617
Miscellaneous 31,073
TOTAL EXPENSES 5,417,206
Less--reduction in management fee due to undertaking--Note 3(a) (266,399)
NET EXPENSES 5,150,807
INVESTMENT INCOME--NET 28,605,859
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (4,627,594)
Net unrealized appreciation (depreciation) on investments (48,653,360)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (53,280,954)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (24,675,095)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
-----------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 28,605,859 29,114,716
Net realized gain (loss) on investments (4,627,594) 4,847,822
Net unrealized appreciation (depreciation)
on investments (48,653,360) 154,655
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (24,675,095) 34,117,193
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (28,605,859) (29,114,716)
Net realized gain on investments (1,652,869) (4,012,166)
TOTAL DIVIDENDS (30,258,728) (33,126,882)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 69,052,804 92,256,576
Dividends reinvested 22,112,337 24,418,722
Cost of shares redeemed (116,240,542) (107,496,015)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (25,075,401) 9,179,283
TOTAL INCREASE (DECREASE) IN NET ASSETS (80,009,224) 10,169,594
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 606,387,865 596,218,271
END OF PERIOD 526,378,641 606,387,865
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 5,305,991 6,885,374
Shares issued for dividends reinvested 1,724,972 1,821,205
Shares redeemed (9,059,009) (8,025,203)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,028,046) 681,376
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased
(or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended December 31,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.37 13.35 13.00 13.53 12.41
Investment Operations:
Investment income--net .64 .65 .68 .72 .74
Net realized and unrealized
gain (loss) on investments (1.18) .11 .44 (.30) 1.12
Total from Investment Operations (.54) .76 1.12 .42 1.86
Distributions:
Dividends from investment income--net (.64) (.65) (.68) (.72) (.74)
Dividends from net realized gain on
investments (.04) (.09) (.09) (.23) (.00)(a)
Total Distributions (.68) (.74) (.77) (.95) (.74)
Net asset value, end of period 12.15 13.37 13.35 13.00 13.53
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (4.24) 5.82 8.84 3.43 15.29
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .89 .90 .80 .80 .80
Ratio of net investment income
to average net assets 4.94 4.86 5.23 5.46 5.67
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation .05 .04 .14 .14 .15
Portfolio Turnover Rate 37.02 36.39 28.01 31.30 24.37
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 526,379 606,388 596,218 593,949 653,836
(A) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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, which is a wholly-owned
subsidiary of Mellon Financial Corporation. Premier Mutual Fund Services, Inc.
(the "Distributor" ) is the distributor of the fund's shares, which are sold to
the public without a sales charge.
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 earnings credits of $15,261 during the period
ended December 31, 1999 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, 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.
The fund has an unused capital loss carryover of approximately $3,113,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1999. This
amount is calculated based on Federal income tax regulations which may differ
from financial reporting in accordance with generally accepted accounting
principles. If not applied, the carryover expires in fiscal 2007.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "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, 1999, the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management 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 Manager has undertaken, until such
time as it gives shareholders at least 90 days' notice to the contrary, to
reduce the management fee paid by the fund, to the extent that the fund's
aggregate expense, exclusive of taxes, brokerage, interest on borrowings,
commitment fees and extraordinary expenses, exceed an annual rate of .85 of 1%
of the value of the fund's average daily net assets. The reduction in management
fee, pursuant to the undertaking, amounted to $266,399 during the period ended
December 31, 1999.
(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, 1999, the fund was charged $1,452,892
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, 1999, the fund was charged $192,163 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 following the date of issuance, including redemptions made
through the use of the fund's Exchange privilege. During the period ended
December 31, 1999, redemption fees retained by the fund amounted to $686.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended December 31, 1999, amounted to
$209,029,333 and $261,879,778, respectively.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At December 31, 1999, accumulated net unrealized depreciation on investments was
$6,074,549, consisting of $12,917,800 gross unrealized appreciation and
$18,992,349 gross unrealized depreciation.
At December 31, 1999, 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).
REPORT OF 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, 1999, 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 auditing standards generally accepted
in the United States. 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, 1999 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, 1999, 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 accounting principles generally
accepted in the United States.
[Ernst And Young LLP signature logo]
New York, New York
February 3, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended December 31, 1999:
--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 $.0323 per share as a long-term
capital gain distribution of the $.0365 per share paid on July 15, 1999.
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 1999 calendar year on Form 1099-DIV which will be
mailed by January 31, 2000.
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 750AR9912
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.
12/31/89 10,000 10,000
12/31/90 10,729 10,794
12/31/91 12,032 12,084
12/31/92 13,093 13,144
12/31/93 14,700 14,849
12/31/94 13,940 13,955
12/31/95 16,374 16,089
12/31/96 17,100 16,641
12/31/97 18,671 18,111
12/31/98 19,881 19,166
12/31/99 19,472 18,354
*Source: Lipper Analytical Services, Inc.
