PRESIDENT'S LETTER
Dear Shareholder:
As your Fund ended its semi-annual reporting period on March 31, 1994,
its net asset value was $9.13 per share. The Fund is currently producing an
annualized distribution rate per share of 6.64% based on our most recent
dividend of $.047 per share and a closing market price of $8 1/2 per share
on March 31, 1994. In addition, we are pleased to report that all dividends
paid from net investment income during this period were exempt from
Federal and California State income taxes, although certain shareholders
may be subject to the Federal Alternative Minimum Tax on some portfolio
income.
1994 FIRST QUARTER
As the reporting period began, the U.S. economy continued to exhibit
signs of weakness. In addition, the rate of inflation remained quite low
which encouraged a continuation of the strong market in fixed-income
securities. In this environment, the prices for fixed-income securities
rose to levels not seen in many years as interest rates declined. However,
as the reporting period ended, signs of solid economic growth had emerged
and, with that, bond prices weakened.
The bond market weakness was a direct result of the fear of rising
inflation as rapid economic growth was recorded in the fourth quarter of
1993 and the first quarter of 1994. The impressive increase in Gross
Domestic Product in the first quarter of 1994 came despite extremely bad
weather and the earthquake in southern California. It had been anticipated
that the bad weather throughout much of the nation and the earthquake's
impact on a major economic center would have a significantly negative
impact on overall U.S. economic growth. However, economic growth
continued quite strong.
As the economy continued to improve in the fourth quarter of 1993 and
into the first quarter of 1994, fears of rising inflation intensified. It
became clear to market participants that the economy had, over the past
year, moved from recession to rapid expansion. Supporting this view were
increases in several key economic indicators such as capacity utilization,
retail sales, consumer confidence, commodity prices and new orders for
durable goods, to name just a few.
REACTION TO FED HIKES
Reaction by the Federal Reserve Board to this rapid economic growth
and its perceived threat to price stability was swift, with two quarter-
point increases in the Federal Funds rate in the first quarter of 1994. The
bond market's reaction to these increases was dramatically negative
resulting in substantial price declines by the end of this reporting period.
There are many economists who believe that the economy will return to
anemic performance in the second half of 1994, thereby relieving
inflationary pressures. Recent statements by officials of the Federal
Reserve Board have suggested that the Fed will again raise rates if
economic growth continues strong and threatens inflation in the second
quarter of 1994. It is widely understood that the Federal Reserve officials
are intent on not giving up gains made against inflation over the past
several years. Near term, we believe this policy should continue to create
an uncertain and volatile market. Longer term, we hope that this Federal
Reserve Policy will lead to a lessening of inflationary pressures.
ECONOMIC OUTLOOK
In the coming year, we think it is realistic to anticipate greater market
volatility and continued periods of market discomfort as inflationary
pressures rise with economic growth. Our strategy in this environment
has been and will continue to be to maintain a high average coupon in your
Fund. In addition to providing superior levels of tax exempt income, these
securities also tend to be more defensive in a rising rate environment.
This should help further to lessen the Fund's vulnerability to dramatic
price swings as experienced in the first quarter of 1994.
We have reviewed the securities in your portfolio to ascertain if any
damage occurred to credit quality as a result of the earthquake in
southern California. We believe, based upon the information available to us
at this time, that the Fund did not experience any detriment to credit
quality due to this event. However, it will take many months for the full
impact of the earthquake on the region, both structurally and
economically, to be known. Of course, we will continue to carefully
monitor these events as they unfold and adjust the portfolio accordingly.
We believe the municipal market currently is in a strong position as we
enter 1994 due to the expectation of a substantially reduced new issue
supply just as tax rates are rising and the Federal Reserve's anticipated
vigilance in fighting inflation.
We have included a current Statement of Investments and recent
financial statements for your review. We greatly appreciate your
investment in the Fund and look forward to serving your investment needs
in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
April 16, 1994
New York, N.Y.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS-100.0% AMOUNT VALUE
----------- -----------
<S> <C> <C>
Anaheim Public Financing Authority, Tax Allocation Revenue
10.07%,12/28/2018 (Insured; MBIA) (a).............................................. $ 2,000,000 $ 2,062,500
California Department of Water Resources, Revenue (Central Valley Project)
9.497%, 12/1/2026 (a,b)............................................................ 900,000 905,625
California Educational Facilities Authority, Revenue (University of San Francisco)
6.40%, 10/1/2017................................................................... 1,100,000 1,099,989
California Public Works Board, LR:
(Department of Corrections-State Prison)
5.375%, 6/1/2012............................................................... 2,000,000 1,769,720
(Various University of California Projects):
Refunding 5.50%, 6/1/2021...................................................... 1,000,000 870,830
6.60%, 12/1/2022 (Prerefunded 12/1/2002)(c).................................... 800,000 886,336
Capistrano Unified School District, Special Tax
(Community Facilities District Number 87-1-Aliso Viejo) 8.375%, 10/1/2020......... 2,000,000 2,241,460
Compton Community Redevelopment Agency, Tax Allocation Revenue, Refunding
(Walnut Industrial Park) 8.10%, 8/1/2013........................................... 1,000,000 1,064,820
Costa Mesa City Hall and Public Safety Facilities Inc. LR (Victoria State)
7.60%, 10/1/2018 (Prerefunded 10/1/1997) (c)....................................... 1,000,000 1,099,690
Delta Diablo Sanitation District, Subordinate COP
(Wastewater Facilities Expansion Project) Zero Coupon, 12/1/2009 (Insured; MBIA)... 1,600,000 586,448
Fountain Valley Agency for Community Development, Tax Allocation Revenue
(City Center Area Redevelopment Project) 9.10%, 1/1/2015........................... 2,500,000 2,705,325
City of Fresno, Health Facility Revenue, Refunding (Holy Cross Health System Corp.)
5.62%, 12/1/2018................................................................... 750,000 668,963
City of Highland, Special Tax (Community Facilities District Number 90-1)
8.60%, 9/1/2015.................................................................... 2,000,000 2,040,000
Irvine Ranch Water District Joint Powers Agency, Local Pool Revenue
8.25%, 8/15/2023................................................................... 1,000,000 1,072,540
Lake Elsinore Unified School District, Special Tax
(Community Facilities District Number 89-1) 7.85%, 10/1/2019....................... 630,000 637,913
Los Angeles Department of Water and Power, Electric Plant Revenue
9.135%, 1/15/2033 (a,b)............................................................ 1,500,000 1,381,875
Morgan Hill Redevelopment Agency, MFHR (La Crosse Village Project)
9.30%, 2/1/2027 (Insured; FHA)..................................................... 1,000,000 1,007,040
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Project No.1) 8%, 7/1/2013 (Prerefunded 7/1/1996) (c)............... 865,000 952,426
Orange County, Special Tax:
(Community Facilities District Number 87-5-Rancho Santa Margarita)
7.80%, 8/15/2013............................................................... 1,000,000 1,104,650
(Community Facilities District Number 88-1-Aliso Viejo) 8.10%, 8/15/2013........... 1,000,000 1,074,970
Redwood Empire Financing Authority, COP 6.40%, 12/1/2023............................... 4,000,000 3,753,560
Riverside County, Single Family Revenue 10.50%, 9/1/2014............................... 125,000 123,715
Sacramento Municipal Utility District, Electric Revenue, Refunding
7.875%, 8/15/2016 (Prerefunded 8/15/1998) (c)...................................... 1,500,000 1,709,325
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
6.75%, 1/1/2032.................................................................... 1,000,000 968,290
San Jose, MFHR 8.335%, 4/1/2002 (a).................................................... 3,000,000 3,000,000
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
----------- -----------
Santa Cruz County Public Financing Authority, Tax Allocation Revenue
6.20%, 9/1/2023.................................................................... $ 2,000,000 $ 1,875,080
Santa Rosa, Water Revenue 7.60%, 9/1/2017 (Prerefunded 9/1/1995) (c)................... 1,000,000 1,071,270
Temecula Valley Unified School District, Special Tax
(Community Facilities District Number 89-3) 8%, 9/1/2019 (d)....................... 2,000,000 1,000,000
University of California, Facilities Mortgage Revenue (Board of Regents)
9.125%, 7/1/2012................................................................... 200,000 207,400
Walnut Improvement Agency, Tax Allocation Revenue (Walnut Improvement Project):
8%, 9/1/2018....................................................................... 230,000 256,603
8%, 9/1/2018 (Prerefunded 9/1/1998) (c)............................................ 1,000,000 1,146,660
-----------
TOTAL INVESTMENTS (cost $41,367,603)................................................... $40,345,023
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
COP Certificate of Participation MBIA Municipal Bond Insurance Association
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
LR Lease Revenue
</TABLE>
SUMMARY OF COMBINED RATINGS
FITCH(E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- -------------------
AAA Aaa AAA 28.3%
AA Aa AA 7.3
A A A 18.4
BBB Baa BBB 26.3
Not Rated (f) Not Rated (f) Not Rated (f) 19.7
------
100.0%
======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1994, these securities amounted to $2,287,500 or 5.6% of net assets.
(c) Bonds which are prerefunded are collateralized by the issuer with U.S.
Government securities which are held in escrow and are used to pay
principal and interest on the tax-exempt issue and to retire the bonds in
full at the earliest refunding date.
(d) Non-income producing security; interest payment in default.
(e) Fitch currently provides creditworthiness information for a limited
amount of investments.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's, have been determined by the Fund's Board of Directors to be of
comparable quality to those rated securities in which the Fund may invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $41,367,603)-see statement............................................... $40,345,023
Interest receivable................................................................ 774,461
Prepaid expenses................................................................... 4,995
-----------
41,124,479
LIABILITIES:
Due to The Dreyfus Corporation..................................................... $ 24,945
Due to Custodian................................................................... 18,989
Accrued expenses................................................................... 63,473 107,407
----------- -----------
NET ASSETS............................................................................. $41,017,072
===========
REPRESENTED BY:
Paid-in capital.................................................................... $41,518,346
Accumulated undistributed investment income-net.................................... 717,287
Accumulated net realized (loss) on investments..................................... (195,981)
Accumulated net unrealized (depreciation) on investments-Note 3.................... (1,022,580)
-----------
NET ASSETS at value applicable to 4,491,091 outstanding shares of
Common Stock, equivalent to $9.13 per share
(110 million shares of $.001 par value authorized)................................. $41,017,072
===========
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1994 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME.................................................................... $ 1,545,575
EXPENSES:
Management fee-Note 2(a)....................................................... $ 151,518
Shareholders' reports.......................................................... 17,461
Auditing fees.................................................................. 15,023
Shareholder servicing costs.................................................... 13,566
Directors' fees and expenses-Note 2(b)......................................... 11,632
Legal fees..................................................................... 8,450
Registration fees.............................................................. 4,250
Custodian fees................................................................. 2,563
Miscellaneous.................................................................. 4,474
-----------
TOTAL EXPENSES......................................................... 228,937
-----------
INVESTMENT INCOME-NET.................................................. 1,316,638
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3............................................ $ 280,253
Net unrealized (depreciation) on investments....................................... (4,099,764)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS...................... (3,819,511)
-----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................. $(2,502,873)
===========
See independent accountants' review report and notes to financial statements.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1994
1993 (UNAUDITED)
----------- -----------
OPERATIONS:
Investment income-net.............................................................. $ 2,770,540 $ 1,316,638
Net realized gain (loss) on investments............................................ (53,203) 280,253
Net unrealized appreciation (depreciation) on investments for the period........... 2,563,023 (4,099,764)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................ 5,280,360 (2,502,873)
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.............................................................. (2,669,781) (1,317,835)
----------- -----------
CAPITAL STOCK TRANSACTIONS;
Dividends reinvested_Note 1(c)..................................................... 321,645 179,364
----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................................ 2,932,224 (3,641,344)
NET ASSETS:
Beginning of period................................................................ 41,726,192 44,658,416
----------- -----------
End of period (including undistributed investment income-net:
$718,484 in 1993 and $717,287 in 1994)......................................... $44,658,416 $41,017,072
=========== ===========
SHARES SHARES
----------- -----------
CAPITAL SHARE TRANSACTIONS;
INCREASE IN SHARES OUTSTANDING AS A RESULT OF DIVIDENDS REINVESTED................. 33,015 18,397
=========== ===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, 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
information provided in the financial statements and market price data for the Fund's shares.
YEAR ENDED SEPTEMBER 30, SIX MONTHS ENDED
----------------------------------------------------- MARCH 31, 1994
PER SHARE DATA: 1989(1) 1990 1991 1992 1993 (UNAUDITED)
------- ------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $ 9.22(2) $ 9.38 $ 9.30 $ 9.22 $ 9.40 $ 9.98
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net.......................... .58 .65 .65 .60 .62 .29
Net realized and unrealized gain (loss)
on investments............................. .06 (.07) (.07) .18 .56 (.85)
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .64 .58 .58 .78 1.18 (.56)
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net........... (.48) (.64) (.63) (.60) (.60) (.29)
Dividends from net realized gain
on investments............................. -- (.02) (.03) -- -- --
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.48) (.66) (.66) (.60) (.60) (.29)
------- ------- ------- ------- ------- -------
Net asset value, end of period................. $ 9.38 $ 9.30 $ 9.22 $ 9.40 $ 9.98 $ 9.13
======= ======= ======= ======= ======= =======
Market Value, end of period.................... $ 9 5/8 $ 9 3/8 $ 9 7/8 $ 9 3/8 $10 1/8 $ 8 1/2
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (3) 1.24%(4) 4.48% 12.92% 1.23% 14.84% (27.05%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........ 1.07%(4) 1.00% 1.04% 1.11% 1.06% 1.06%(4)
Ratio of net investment income to
average net assets......................... 6.79%(4) 6.97% 6.96% 6.48% 6.45% 6.08%(4)
Portfolio Turnover Rate........................ 14.33%(5) 29.53% 15.43% 27.77% 15.54% 30.74%(5)
Net Assets, end of period (000's Omitted)...... $40,344 $40,509 $40,661 $41,726 $44,658 $41,017
- -------------------------
(1) From October 21, 1988 (commencement of operations) to September 30, 1989.
(2) Net of offering cost charged to paid-in-capital.
(3) Calculated based on market value.
(4) Annualized.
(5) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified closed-end management investment company.
The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser.
(A) PORTFOLIO VALUATION: Investments in municipal debt securities
(excluding options and financial futures on municipal and U.S. treasury
securities) are valued on the last business day of each week and month by
an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices in the judgment of the
Service are readily available and are representative of the bid side of the
market 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.
Options and financial futures on municipal and U.S. treasury securities are
valued at the last sales price on the securities exchange on which such
securities are primarily traded or at the last sales price on the national
securities market on the last business day of each week and month.
Investments not listed on an exchange or the national securities market,
or securities for which there were no transactions, are valued at the
average of the most recent bid and asked prices. Bid price is used when no
asked price is available.
(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 is earned from settlement date and recognized on the
accrual basis. Securities purchased or sold on a when-issued or delayed-
delivery basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state
and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of,
municipal obligations held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-
dividend date. Dividends from investment income-net are declared and
paid monthly. Dividends from net realized capital gain are declared and
paid at least annually. 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.
For shareholders who elect to receive their distributions in additional
shares of the Fund, in lieu of cash, such distributions will be reinvested at
the lower of the market price or net asset value per share (but not less
than 95% of the market price) based on the record date's respective price.
If the net asset value per share on the record date is lower than the
market price per share, shares will be issued by the Fund at the record
date's net asset value on the payable date of the distribution. If the net
asset value per share is less than 95% of market value, shares will be
issued by the Fund at 95% of market value. If the market price is lower
than the net asset value per share on the record date, Mellon Bank, N.A.
will purchase Fund shares in the open market commencing on the payable
date, and reinvest those shares accordingly. As a result of purchasing Fund
shares in the open market, Fund shares outstanding will not be affected by
this form of reinvestment.
On March 29, 1994, the Board of Directors declared a cash dividend of
$.047 per share from investment income-net, payable on April 27, 1994 to
shareholders of record as of the close of business on April 13, 1994.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(D) QUARTERLY RESULTS OF OPERATIONS:
NET INCREASE
NET REALIZED & (DECREASE)
UNREALIZED GAIN IN NET ASSETS
TOTAL INVESTMENT NET INVESTMENT (LOSS) ON RESULTING FROM
INCOME INCOME INVESTMENTS OPERATIONS
---------------- -------------- --------------- ---------------
(000'S) PER (000'S) PER (000'S) PER (000'S) PER
QUARTER ENDED OMITTED SHARE OMITTED SHARE OMITTED SHARE OMITTED SHARE
- ------------- ------- ------ ------- ------ ------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
December 31, 1992............. $ 813 $ 0.18 $ 701 $ 0.16 $ 116 $ 0.02 $ 817 $ 0.18
March 31, 1993................ 802 0.18 699 0.15 1,389 .31 2,088 0.47
June 30, 1993................. 810 0.18 698 0.15 424 0.10 1,122 0.25
September 30, 1993............ 803 0.18 672 0.15 581 0.13 1,253 0.28
------- ------ ------- ------ ------- ------ ------- ------
TOTAL..................... $ 3,228 $ 0.72 $ 2,770 $ 0.61 $ 2,510 $ 0.56 $ 5,280 $ 1.18
======= ====== ======= ====== ======= ====== ======= ======
December 31, 1993............. $ 788 $ 0.18 $ 666 $ 0.15 $ (944) $(0.21) $ (277) $(0.06)
March 31, 1994................ 758 0.17 651 0.14 (2,876) (0.64) (2,226) (0.50)
------- ------ ------- ------ ------- ------ ------- ------
TOTAL..................... $ 1,546 $ 0.35 $ 1,317 $ 0.29 $(3,820) $(0.85) $(2,503) $(0.56)
======= ====== ======= ====== ======= ====== ======= ======
</TABLE>
(E) 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 provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
The Fund has an unused capital loss carryover of approximately $4,400
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1993. The
carryover does not include net realized securities losses from November
1, 1992 through September 30, 1993 which are treated, for Federal
income tax purposes, as arising in fiscal 1994. If not applied, the
carryover expires in fiscal 2000.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .70 of 1%
of the average weekly value of the Fund's net assets and is payable
monthly. The Agreement provides for an expense reimbursement from the
Manager should the Fund's aggregate expenses, exclusive of taxes, interest
on borrowings, brokerage and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund for any full
fiscal year. There was no expense reimbursement for the six months ended
March 31, 1994.
(B) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager. Each director who is not an
"affiliated person" receives an annual fee of $2,500 and an attendance fee
of $250 per meeting.
(C) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the shareholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $18,661,180 and
$18,526,225, respectively, for the six months ended March 31, 1994, and
consisted entirely of municipal bonds and short-term municipal
investments.
At March 31, 1994, for Federal income tax purposes, the cost of
investments was $41,229,566 and accumulated net unrealized
depreciation on investments was $884,543, consisting of $1,362,189
gross unrealized appreciation and $2,246,732 gross unrealized
depreciation.
At March 31, 1994, for financial reporting purposes, the cost of
investments was $41,367,603 and accumulated net unrealized
depreciation on investments was $1,022,580, consisting of $1,267,496
gross unrealized appreciation and $2,290,076 gross unrealized
depreciation.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
We have reviewed the accompanying statement of assets and liabilities
of Dreyfus California Municipal Income, Inc., including the statement of
investments, as of March 31, 1994, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended March 31, 1994. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying analytical
procedures to financial data, and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope than
an audit conducted in accordance with generally accepted auditing
standards, which will be performed for the full year with the objective of
expressing an opinion regarding the financial statements and financial
highlights taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material modifications
that should be made to the interim financial statements and financial
highlights referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year
ended September 30, 1993 and financial highlights for each of five years
in the period ended September 30, 1993 and in our report dated November
4, 1993, we expressed an unqualified opinion on such statement of
changes in net assets and financial highlights.
(Ernst & Young Signature Logo)
New York, New York
May 6, 1994
OFFICERS AND DIRECTORS
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
DIRECTORS
Lucy Wilson Benson
David W. Burke
Martin D. Fife
Whitney I. Gerard
Robert R. Glauber
Arthur A. Hartman
Richard J. Moynihan
George L. Perry
Paul Wolfowitz
OFFICERS
President and
Chief Investment Officer
Richard J. Moynihan
Vice President-Financial
Jeffrey N. Nachman
Treasurer
John J. Pyburn
Secretary
Daniel C. Maclean III
Assistant Secretary
Christine Pavalos
Controller
Jean Farley
Vice Presidents and
Investment Officers:
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Jill C. Shaffro
L. Lawrence Troutman
Samuel J. Weinstock
Monica S. Wieboldt
INVESTMENT ADVISER
The Dreyfus Corporation
CUSTODIAN
The Bank of New York
COUNSEL
Stroock & Stroock & Lavan
TRANSFER AGENT,
DIVIDEND DISTRIBUTION AGENT
AND REGISTRAR
Mellon Bank, N.A.
STOCK EXCHANGE LISTING
AMEX Symbol: DCM
INITIAL SEC EFFECTIVE DATE
10/21/88
The Net Asset Value appears in the
following publications: Barron's,
Closed-End Bond Funds section under
the heading "Municipal Bond Funds"
every Monday; Wall Street Journal,
Mutual Funds section under the
heading "Closed-End Bond Funds" every
Monday; New York Times, Business
section under the heading "Closed-End
Bond Funds" every Monday.
- ------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase shares of its
common stock in the open market when it can do so at prices below the
then current net asset value per share.
- ------------------------------------------------------------------------------
Printed in U.S.A 857SA943
DREYFUS
CALIFORNIA
MUNICIPAL
INCOME, INC.
SEMI_ANNUAL REPORT
MARCH 31, 1994
(Dreyfus Lion Logo)
