LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund ended its semi-annual reporting period on March 31, 1995,
its net asset value was $8.85 per share. Income dividends of $.282 per share
were paid during the six-month period, equating to an annualized tax free
distribution rate per share of approximately 6.70% based on the closing
market price of $8 3/8, adjusted for a capital gain distribution of $.0482.*
As 1994 drew to a close, the bond market continued to exhibit a great
deal of volatility. Orange County's difficulties accentuated the volatility
in the California markets during the fourth quarter of 1994. By the end of
the first quarter of 1995, however, the volatility had subsided.
Your Fund holds two issues which have direct exposure to the Orange
County investment pool. The Orange County investment pool experienced
substantial losses which led to the County's bankruptcy filing. We have
reviewed each of the two issues and believe that the losses incurred by the
investment pool should not substantially weaken the cash flows or reserves
necessary to meet debt service on these securities. However, during this
period, all California issues suffered declines in market value as the
magnitude of the County's losses became clear. As of this letter, bonds not
directly impacted by Orange County have largely recovered from this
association and are participating in the rally being experienced by the
national market. Many bonds directly affected by the County's losses,
including the two securities mentioned above, have also substantially recovered
from their decline as their exposure to the pool and the degree of their
reliance on pool assets became clear. In addition, the market has steadily
improved as the County has taken measures to restore its managerial integrity
and replenish assets lost during this period. We have every confidence that
these measures will continue as the year unfolds. Of course, we will continue
to monitor the situation.
Yields, as measured by the Bond Buyer 20 Bond Index, rose dramatically
during 1994 to a high of 7.06% in November. Much of this rise was
attributable to tightening moves by the Federal Reserve Board during the
year, in an effort to slow what appeared to be a very strong economy. The
last gasp of this yield rally occurred when strong retail sales data were
reported at year-end. Early in the first quarter of 1995, a solid market
recovery began as the threat of inflation waned.
While the economy grew at its fastest pace in 10 years during 1994, there
are developing signs that the expansion is moderating as higher interest
rates take hold. For example, existing home sales, new home construction and
auto sales have all shown weakness during the first quarter of 1995. In
addition, jobless claims increased and inventories rose during the quarter as
sales slowed. Many forecasts of economic growth for the first half of 1995
are being adjusted downward to reflect this recent slowdown.
With inflation remaining subdued and economic activity seeming to slow,
the case for further Fed tightening near term seems weak. In fact, the only
fear of a tighter monetary policy of late stems from possible efforts by the
Fed to support a weak U.S. dollar. The economic weakness of our major trading
partners, Canada and Mexico, augments further the probability that our own
economy will continue to decelerate.
Our current strategy in this environment is to remain fully invested in
seeking to take advantage of potential market improvement and to provide a
high current level of tax exempt income. The municipal market also benefited
from a sharply reduced level of supply compared to previous years, which has
intensified demand. Our current view of a continuation of the market rally is
a cautious one, however, since much of the advance in bond prices may already
be behind us--even as the economy slows further.
We have enclosed 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
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 12, 1995
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Capital gains may be subject to Federal, State and
local taxes.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
-------------- ------------
<S> <C> <C>
Bakersfield Central District Development Agency, Tax Allocation Revenue,
Refunding (Downtown Bakersfield Redevelopment) 6.625%, 4/1/2015......... $ 1,000,000 $ 995,060
California Department of Water Resources, Revenue (Central Valley Project)
7.409%, 12/1/2026 (a,b)................................................. 900,000 906,750
California Educational Facilities Authority, Revenue (University of San
Francisco)
6.40%, 10/1/2017........................................................ 1,100,000 1,107,766
California Pollution Control Financing Authority, SWDR (Browning-Ferris
Industries)
6.75%, 9/1/2019......................................................... 600,000 602,388
California Public Works Board, LR:
(Department of Corrections-State Prison)
5.375%, 6/1/2012...................................................... 2,000,000 1,807,400
(Various University of California Projects):
Refunding 5.50%, 6/1/2021............................................. 1,000,000 892,120
6.60%, 12/1/2022 (Prerefunded 12/1/2002)(c)........................... 800,000 889,400
Capistrano Unified School District, Special Tax
(Community Facilities District Number 87-1-Aliso Viejo) 8.375%, 10/1/2020 2,000,000 2,130,420
Compton Community Redevelopment Agency, Tax Allocation Revenue,
Refunding (Walnut Industrial Park) 8.10%, 8/1/2013...................... 1,000,000 1,060,010
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 1,069,110
Emeryville Public Financing Authority, Revenue (Shellmound Park Redevelopment
Project)
6.80%, 5/1/2014......................................................... 500,000 504,215
Fountain Valley Agency for Community Development, Tax Allocation Revenue
(City Center Area Redevelopment Project) 9.10%, 1/1/2015................ 2,500,000 2,589,725
City of Fresno, Health Facility Revenue, Refunding (Holy Cross Health System
Corp.)
5.625%, 12/1/2018....................................................... 750,000 681,248
City of Highland, Special Tax (Community Facilities District Number 90-1)
8.60%, 9/1/2015......................................................... 2,000,000 2,072,920
Irvine Ranch Water District Joint Powers Agency, Local Pool Revenue
8.25%, 8/15/2023........................................................ 1,000,000 1,070,490
Lake Elsinore Unified School District, Special Tax
(Community Facilities District Number 89-1) 7.85%, 10/1/2019............ 630,000 643,324
Morgan Hill Redevelopment Agency, MFHR (La Crosse Village Project)
9.30%, 2/1/2027 (Insured; FHA).......................................... 1,000,000 1,040,090
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Project No.1) 8%, 7/1/2013 (Prerefunded 7/1/1996) (c).... 865,000 917,990
Orange County, Special Tax:
(Community Facilities District Number 87-5-Rancho Santa Margarita)
7.80%, 8/15/2013 (Prerefunded 8/15/1998) (c).......................... 1,000,000 1,109,670
(Community Facilities District Number 88-1-Aliso Viejo)
8.10%, 8/15/2013 (Prerefunded 8/15/1998) (c).......................... 1,000,000 1,119,570
Palmdale Civic Authority, Tax Allocation Revenue,
Refunding (Merged Redevelopment Project Areas) 6.60%, 9/1/2034.......... 1,000,000 1,022,720
Redwood Empire Financing Authority, COP 6.40%, 12/1/2023
(Prerefunded 8/15/1998) (c)............................................. 4,000,000 3,808,480
Riverside County, Single Family Revenue 10.50%, 9/1/2014.................... 40,000 41,974
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
--------------- -----------
Sacramento Municipal Utility District, Electric Revenue, Refunding
7.875%, 8/15/2016 (Prerefunded 8/15/1998) (c)........................... $ 1,500,000 $ 1,669,950
San Diego, IDR (San Diego Gas and Electric Co.)
7.375%, 12/1/2021....................................................... 600,000 619,350
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
6.75%, 1/1/2032......................................................... 1,000,000 977,300
San Jose, MFHR 8.471%, 4/1/2002 (a)......................................... 3,000,000 3,097,500
Santa Cruz County Public Financing Authority, Tax Allocation Revenue
6.20%, 9/1/2023......................................................... 2,000,000 1,863,980
Santa Rosa, Water Revenue 7.60%, 9/1/2017 (Prerefunded 9/1/1995) (c)........ 1,000,000 1,033,760
Temecula Valley Unified School District, Special Tax
(Community Facilities District Number 89-3) 8%, 9/1/2019 (d)........... 2,000,000 240,000
University of California, Facilities Mortgage Revenue (Board of Regents)
9.125%, 7/1/2012........................................................ 25,000 26,080
Walnut Improvement Agency, Tax Allocation Revenue (Walnut Improvement
Project):
8%, 9/1/2018............................................................ 230,000 250,291
8%, 9/1/2018 (Prerefunded 9/1/1998) (c)................................. 1,000,000 1,118,360
-----------
TOTAL INVESTMENTS
(cost $40,051,011)...................................................... $38,979,411
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
COP Certificate of Participation LR Lease Revenue
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH(e) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
AAA Aaa AAA 22.4%
AA Aa AA 5.6
A A A 22.9
BBB Baa BBB 27.9
Not Rated (f) Not Rated (f) Not Rated (f) 21.2
--------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Residual interest 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,
1995, these securities amounted to $906,750 or 2.3% of net assets.
(c) Bonds which are prerefunded are collateralized with 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.
(d) Non-income producing security; interest payment in default.
(e) Fitch currently provides creditworthiness information for a limited
number 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, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $40,051,011)-see statement...................................... $38,979,411
Cash.................................................................... 144,284
Interest receivable..................................................... 783,931
-------------
39,907,626
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $23,472
Accrued expenses........................................................ 55,448 78,920
-------- -------------
NET ASSETS ................................................................ $39,828,706
============
REPRESENTED BY:
Paid-in capital......................................................... $41,617,951
Accumulated undistributed investment income-net......................... 70,745
Accumulated net realized (loss) on investments.......................... (788,390)
Accumulated net unrealized (depreciation) on investments-Note 3......... (1,071,600)
-------------
NET ASSETS at value applicable to 4,502,021 outstanding shares of
Common Stock, equivalent to $8.85 per share
(110 million shares of $.001 par value authorized)...................... $39,828,706
============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,404,132
EXPENSES:
Management fee-Note 2(a).............................................. $ 136,567
Directors' fees and expenses-Note 2(b)................................ 16,316
Auditing fees......................................................... 14,073
Shareholders' reports................................................. 11,641
Shareholder servicing costs........................................... 10,092
Legal fees............................................................ 5,165
Custodian fees........................................................ 2,132
Miscellaneous......................................................... 4,457
----------
TOTAL EXPENSES.................................................... 200,443
------------
INVESTMENT INCOME-NET............................................. 1,203,689
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(787,942)
Net unrealized appreciation on investments.............................. 458,178
----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (329,764)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 873,925
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1995
1994 (UNAUDITED)
--------------- ------------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 2,534,587 $ 1,203,689
Net realized gain (loss) on investments................................. 271,986 (787,942)
Net unrealized appreciation (depreciation) on investments for the period (4,716,486) 458,178
----------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (1,909,913) 873,925
-------------- ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (2,586,125) (1,269,569)
Net realized gain on investments........................................ --- (216,997)
-------------- ------------
TOTAL DIVIDENDS....................................................... (2,586,125) (1,486,566)
-------------- ------------
CAPITAL STOCK TRANSACTIONS;
Dividends reinvested-Note 1(c).......................................... 278,969 ---
-------------- ------------
TOTAL (DECREASE) IN NET ASSETS........................................ (4,217,069) (612,641)
NET ASSETS:
Beginning of period..................................................... 44,658,416 40,441,347
-------------- ------------
End of period (including undistributed investment income-net:
$136,625 in 1994 and $70,745 in 1995)................................. $40,441,347 $39,828,706
============== ===========
SHARES SHARES
------------ -----------
CAPITAL SHARE TRANSACTIONS;
INCREASE IN SHARES OUTSTANDING AS A RESULT OF DIVIDENDS REINVESTED...... 29,327 ---
============ ============
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 the financial statements and market price
data for the Fund's shares.
YEAR ENDED SEPTEMBER 30, SIX MONTHS ENDED
--------------------------------------------------- MARCH 31, 1995
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
----- ----- ------ ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.38 $ 9.30 $ 9.22 $ 9.40 $ 9.98 $ 8.98
------- ------- ------- ------ ------- -------
INVESTMENT OPERATIONS:
Investment income-net............... .65 .65 .60 .62 .56 .27
Net realized and unrealized gain (loss)
on investments.................... (.07) (.07) .18 .56 (.98) (.07)
------- ----- ------ ----- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.. .58 .58 .78 1.18 (.42) .20
------- ------- ------- ----- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net (.64) (.63) (.60) (.60) (.58) (.28)
Dividends from net realized gain
on investments.................... (.02) (.03) -- -- -- (.05)
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS............... (.66) (.66) (.60) (.60) (.58) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period...... $ 9.30 $ 9.22 $ 9.40 $ 9.98 $ 8.98 $ 8.85
====== ======= ======== ======== ======= ========
Market Value, end of period......... $ 9 3\8 $ 9 7\8 $ 9 3\8 $10 1\8 $ 8 1\8 $ 8 3\8
======= ====== ======== ======== ======== ========
TOTAL INVESTMENT RETURN (1)............. 4.48% 12.92% 1.23% 14.84% (14.64%) 14.54%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.00% 1.04% 1.11% 1.06% 1.02% 1.03%(2)
Ratio of net investment income to
average net assets................ 6.97% 6.96% 6.48% 6.45% 6.01% 6.17%(2)
Portfolio Turnover Rate............. 29.53% 15.43% 27.77% 15.54% 33.65% 6.23%(3)
Net Assets, end of period (000's Omitted) $40,509 $40,661 $41,726 $44,658 $40,441 $ 39,829
(1) Calculated based on market value.
(2) Annualized.
(3) 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. The Manager
is a direct subsidiary of Mellon Bank, N.A.
(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 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. 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 adjusted for amortization of premiums and original issue discounts on
investments is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: 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, if any, 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 prices. 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
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
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 30, 1995, the Board of Directors declared a cash dividend of
$.047 per share from investment income-net, payable on April 28, 1995 to
shareholders of record as of the close of business on April 13, 1995.
<TABLE>
<CAPTION>
(D) QUARTERLY RESULTS OF OPERATIONS:
NET INCREASE
NET REALIZED & (DECREASE)
UNREALIZED IN NET ASSETS
TOTAL INVESTMENT NET INVESTMENT GAIN (LOSS) RESULTING FROM
INCOME INCOME ON 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, 1993.............. $ 788 $ 0.18 $ 666 $ 0.15 $ (944) $(0.21) $ (278) $(0.06)
March 31, 1994................. 758 0.17 651 0.14 (2,876) (0.64) (2,225) (0.50)
June 30, 1994.................. 710 0.15 600 0.13 (241) (0.05) 359 0.08
September 30, 1994............. 707 0.15 618 0.14 (384) (0.08) 234 0.06
-------- ------ ------ ------ -------- ------- -------- ------
TOTAL...................... $ 2,963 $ 0.65 $ 2,535 $ 0.56 $ (4,445) $(0.98) $ (1,910) $(0.42)
======= ======= ======== ====== ======== ====== ========= ========
December 31, 1994.............. $ 719 $ 0.16 $ 617 $ 0.14 $ (1,692) $(0.37) $ (1,075) $(0.23)
March 31, 1995................. 685 0.15 587 0.13 1,362 0.30 1,949 0.43
------- ------- ------- ------ -------- ------- -------- ------
TOTAL...................... $ 1,404 $ 0.31 $ 1,204 $ 0.27 $ (330) $(0.07) $ 874 $ 0.20
========= ======= ====== ====== ======= ======= ======== =======
</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 applicable provisions of the Internal Revenue
Code, and to make distributions of income and net realized capital gain
sufficient to relieve it from substantially all Federal income and excise
taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .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, 1995.
(B) Prior to August 24, 1994, certain officers and directors, and prior
to February 1, 1995, certain officers, of the Fund were "affiliated persons,"
as defined in the Act, of the Manager and/or Dreyfus Service Corporation.
Each director who is not an "affiliated person" receives 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.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $4,209,260 and $4,777,920, respectively, for the six months ended
March 31, 1995, and consisted entirely of long-term and short-term municipal
investments.
At March 31, 1995, accumulated net unrealized depreciation on investments
was $1,071,600, consisting of $1,400,026 gross unrealized appreciation and
$2,471,626 gross unrealized depreciation.
At March 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, 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, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended March 31, 1995. 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 highlight 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, 1994 and financial highlights for each of five years in the
period ended September 30, 1994 and in our report dated November 4, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
Ernst and Young Signature Logo
New York, New York
May 2, 1995
OFFICERS AND DIRECTORS
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
200 Park Avenue
New York, NY 10166
DIRECTORS
Lucy Wilson Benson
David W. Burke
Joseph S. DiMartino
Martin D. Fife
Whitney I. Gerard
Robert R. Glauber
Arthur A. Hartman
George L. Perry
Paul Wolfowitz
OFFICERS
President and Treasurer
Marie E. Connolly
Vice President and Secretary
John E. Pelletier
Vice President and Assistant Treasurer
Frederick C. Dey
Vice President and Assistant Secretary
Eric B. Fischman
Assistant Treasurer
John J. Pyburn
Assistant Treasurer
Joseph F. Tower, III
Assistant Secretary
Paul D.Furcinito
Assistant Secretary
Ruth Leibert
PORTFOLIO MANAGERS:
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
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. 857SA953
