DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus California
Municipal Income, Inc. for the six-month reporting period ended March 31,
1997. Your Fund produced a total return of 2.44% based on changes in net
asset value and interest income.* Income dividends exempt from Federal and
State of California personal income taxes of $.273 per share were paid to
shareholders.** This is equivalent to an annualized Federally tax-free
distribution rate per share of 5.86%.***
THE ECONOMY
With the economy in an almost ideal balance of strong growth, low
unemployment and stable prices, the Federal Open Market Committee (FOMC) of
the Federal Reserve Board (the "Fed") raised interest rates at the end of
March for the first time in over two years. Concerned that persistently
strong demand would increase the risk of a resurgence of inflation, the FOMC,
which is the policy-making arm of the Fed, voted to lift the Federal Funds
rate by a quarter of a percentage point to 5.5%. (The Federal Funds rate is
the rate that banks charge each other for overnight loans.) The move to raise
interest rates had been much discussed since early last year when the Fed
first became concerned about the inflationary potential of rising wage
demands resulting from the strong rate of growth in new jobs. Yet over that
time, there has been little evidence of inflation despite robust job growth
and an unemployment rate of less than 5.5%, a level that in the 1970s and
1980s contributed to an escalation in wages and prices. Instead, prices on
virtually all sectors of the economy have remained quiescent. The Consumer
Price Index has risen a modest 2.8% over the past 12 months, while increases
in producer prices have been equally modest and, of late, many prices have
actually fallen.
Not surprisingly, the consumer confidence index of the Conference Board,
a private research group, remains near all-time high territory. A closely
followed component of the index measures consumer sentiment about the job
market. The percentage of people reporting that jobs are plentiful has
recently reached an eight-year high, while the portion reporting that jobs
are hard to get was the lowest ever recorded. That positive attitude
regarding job security has been cited by Federal Reserve Board Chairman
Greenspan as a possible harbinger of higher wage pressures, which could
result in an acceleration in the rate of inflation.
Looking at the economy more generally, factory production _ particularly
the durable goods sector _ has picked up lately after slumping over the last
two months of last year. Also suggesting renewed vigor in the economy was the
brisk pickup in retail sales from their relatively sluggish pace over the
last quarter of 1996. As a corollary to the surge in retail sales, late
payments on credit card debt have risen to the highest proportion of accounts
since 1980, the year the American Bankers Association first monitored credit
card delinquencies.
Effective monetary policy is formulated less on how conditions are today
than on how things may be in the future; hence the Fed's preemptive move to
tighten without significant direct evidence that inflation is already on the
rise is understandable. In recent testimony to Congress made before the Fed's
decision to raise the Federal Funds rate, Fed Chairman Alan Greenspan said
that the question "is not so much . . . where prices are or have been, but
rather what the state of the economy will be later this year and into 1998
when any actions we may or may not have taken would become effective." We
continue to remain alert to any economic developments that might indicate a
further tightening by the Fed.
MARKET ENVIRONMENT
The municipal bond market endured a significant amount of volatility
during the past six months. Similar to today's market environment, last fall
interest rates were on the rise following a strong downward move last summer.
The financial markets were bracing for a possible tightening of interest
rates by the Federal Reserve Board. However, the difference between then and
now is that the economy slowed in the second half of 1996 and the Fed did not
raise rates. Today, the story is different and the bears are back in control:
the economy is clearly much stronger than it appeared at the beginning of the
year. Six months ago there was considerable debate over whether or not there
would be a tightening of short-term interest rates. The markets received the
answer last month when the Fed moved. Since then yields have continued to
ratchet higher, implying that at least one more rate hike is in the cards.
The political climate in Washington has been a further hindrance.
Investors had been counting on a bipartisan compromise on a balanced budget
agreement and a possible cut in the capital gains tax rate; today, the odds
of either happening in the near future seem remote. It looks as though this
year's budget wrangling could be a repeat performance of prior years. From
the financial markets' perspective, it appears that the only positive
influence from Washington has been the Administration's strong support for
the dollar. The strong relative position of the U.S. currency has engendered
significant foreign buying of U.S. Treasury securities. Without this foreign
support rates might be at higher levels.
Because of a relatively good technical position, municipal securities
have not lost as much in value this year as have taxable bonds. The supply of
new tax-exempt bond issues coming to market has not been overly burdensome,
while investor demand (primarily the casualty insurers) has been strong
enough to absorb most of the available supply. Individual interest has been
limited; however, we believe that yields are now approaching levels that
should prove attractive to investors.
PORTFOLIO OVERVIEW
The Fund continues to maintain a duration which is considerably shorter
than the Lehman California Municipal Bond Index (6.4 years versus 8.1 years,
respectively). At the same time, we continue to purchase securities which
afford a relatively high tax-exempt yield, enabling management to increase
the monthly dividend to $ .05 per month beginning in December 1996. A short
relative duration and high dividend income have combined to position the Fund
well.
During the first quarter of 1997, management has been pursuing a
defensive investment strategy by actively shortening duration. The longer a
fund's duration, the more volatile the fund should be as interest rates move.
In a declining interest rate environment, a longer duration can be
advantageous to a fund. The reverse can be true in a rising interest rate
environment. In view of the Federal Reserve Board's decision last month to
raise short-term interest rates, we feel our decision was a prudent one. At
the present time, cash reserves in the Fund are being held at 10% (a
relatively high percentage) of assets.
We don't believe that the current condition of rising interest rates will
persist indefinitely, and think that attractive buying opportunities within
the State of California will present themselves in the not too distant future.
In general, the State and its municipalities represent sound credit
fundamentals. California's fiscal stability has been restored, and we are
encouraged by its improving economy, declining unemployment rate, and modest
long-term debt position. However, we are carefully monitoring the State's
ability to deal with the various restrictions imposed by the voter initiatives
approved last fall.
The axiom of capital preservation is foremost in our decision-making at
present. The Fund's goal is to maximize current Federal and California State
tax-exempt income to the extent consistent with the preservation of capital.
We do see the risk of still higher interest rates. After a period of Fed
restraint, we believe that the economy can continue to grow at a moderate
pace without significant risk of higher inflation. For this reason we feel
good about the prospects for the bond markets going forward and continue to
recommend that investors maintain a long-term perspective.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1997
New York, NY
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the market
price per share at the end of the period.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments_100.0% Amount Value
____________ ____________
<S> <C> <C>
California_97.5%
Bakersfield Central District Development Agency, Tax Allocation Revenue,
Refunding (Downtown Bakersfield Redevelopment) 6.625%, 4/1/2015......... $ 1,000,000 $ 1,040,770
California Department of Water Resources, Water System Revenue
(Central Valley Project) 8.191%, 12/1/2026 (Prerefunded 6/1/2002) (a,b,c) 900,000 1,051,875
California Educational Facilities Authority, Revenue (University of San Francisco)
6.40%, 10/1/2017 (Prerefunded 10/1/2002) (c)............................ 1,100,000 1,210,407
California Pollution Control Financing Authority,
Facilities Revenue (Mobil Oil Corp.) 5.50%, 12/1/2029 (Guaranteed; Mobil Oil Corp) 1,750,000 1,616,948
SWDR:
(Browning-Ferris Industries):
5.80%, 12/1/2016.................................................. 1,000,000 966,920
6.75%, 9/1/2019................................................... 600,000 634,836
(Keller Canyon Landfill Co. Project) 6.875%, 11/1/2027................ 1,000,000 1,071,900
California Public Works Board, LR
(Various University of California Projects):
6.60%, 12/1/2022 (Prerefunded 12/1/2002) (c).......................... 800,000 889,664
Refunding 5.50%, 6/1/2021............................................. 500,000 463,770
Capistrano Unified School District, Special Tax
(Community Facilities District Number 87-1-Aliso Viejo)
8.375%, 10/1/2020 (Prerefunded 10/1/2000) (c)........................... 2,000,000 2,283,880
Compton Community Redevelopment Agency, Tax Allocation Revenue,
Refunding (Walnut Industrial Park) 8.10%, 8/1/2013 (Prerefunded 8/1/1999) (c) 1,000,000 1,103,010
Costa Mesa City Hall and Public Safety Facilities, Inc., LR (Victoria Street)
7.60%, 10/1/2018 (Prerefunded 10/1/1997) (c)............................ 1,000,000 1,019,070
Duarte, COP (City of Hope National Medical Center)
6.125%, 4/1/2013........................................................ 1,000,000 1,000,500
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2014................. 500,000 524,275
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue
6%, 1/1/2034............................................................ 1,000,000 963,360
City of Fresno, Health Facility Revenue, Refunding (Holy Cross Health System Corp.)
5.625%, 12/1/2018....................................................... 750,000 708,705
City of Highland, Special Tax (Community Facilities District Number 90-1)
8.60%, 9/1/2015 (Prerefunded 9/1/1998) (c).............................. 2,000,000 2,165,320
Irvine Ranch Water District Joint Powers Agency, Local Pool Revenue
8.25%, 8/15/2023........................................................ 1,000,000 1,045,950
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 1,071,820
(Community Facilities District Number 88-1-Aliso Viejo)
8.10%, 8/15/2013 (Prerefunded 8/15/1998) (c).......................... 1,000,000 1,074,250
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
____________ ___________
California (continued)
Palmdale Civic Authority, Tax Allocation Revenue,
Refunding (Merged Redevelopment Project Areas) 6.60%, 9/1/2034.......... $ 1,000,000 $ 1,046,590
Redwood Empire Financing Authority, COP 6.40%, 12/1/2023.................... 4,000,000 4,003,840
Riverside County, Single Family Revenue 10.50%, 9/1/2014.................... 20,000 21,000
Sacramento Municipal Utility District, Electric Revenue,
Refunding 7.875%, 8/15/2016 (Prerefunded 8/15/1998) (c)................. 1,500,000 1,609,155
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
6.75%, 1/1/2032......................................................... 1,000,000 1,041,740
San Jose, MFHR 9.928%, 4/1/2012 (a)......................................... 3,000,000 3,408,750
Santa Cruz County Public Financing Authority, Tax Allocation Revenue
6.20%, 9/1/2023......................................................... 2,000,000 1,990,860
Turlock Health Facility, COP, Refunding (Emanuel Medical Center)
5.75%, 10/15/2023....................................................... 2,500,000 2,352,200
Valley Health System, HR, Refunding (Improvement Project)
6.50%, 5/15/2025........................................................ 2,000,000 2,004,520
Walnut Improvement Agency, Tax Allocation Revenue (Walnut Improvement Project):
8%, 9/1/2018............................................................ 230,000 246,240
8%, 9/1/2018 (Prerefunded 9/1/1998) (c)................................. 1,000,000 1,076,090
U.S. Related_2.5%
Guam Power Authority, Revenue 6.75%, 10/1/2024.............................. 1,000,000 1,040,860
__________
TOTAL INVESTMENTS
(cost $39,817,671)...................................................... $41,749,075
============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
Summary of Abbreviations
<S> <C> <S> <C>
COP Certificate of Participation MFHR Multi-Family Housing Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
LR Lease Revenue
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch(d) or Moody's or Standard & Poor's Percentage of Value
____ ________ _______________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 30.3%
AA Aa AA 8.1
A A A 17.9
BBB Baa BBB 33.5
Not Rated (e) Not Rated (e) Not Rated (e) 10.2
________
100.0%
=========
</TABLE>
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. This security may be resold in a transaction exempt from registration,
normally to a qualified institutional buyer. At March 31, 1997, this security
amounted to $1,051,875 or 2.5% of net assets.
(c) 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.
(d) Fitch currently provides creditworthiness information for a limited number
of investments.
(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.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1997 (UNAUDITED)
Cost Value
_____________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $39,817,671 $41,749,075
Cash....................................... 12,428
Interest receivable........................ 880,927
Prepaid expenses........................... 7,933
_____________
42,650,363
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 31,534
Accrued expenses........................... 37,807
_____________
69,341
_____________
NET ASSETS.................................................................. $42,581,022
==============
REPRESENTED BY: Paid-in capital............................ $41,617,951
Accumulated undistributed investment income_net 1,015,515
Accumulated net realized gain (loss) on investments (1,983,848)
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4.................... 1,931,404
_____________
NET ASSETS.................................................................. $42,581,022
==============
SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized)............. 4,502,021
NET ASSET VALUE per share................................................... $9.46
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $1,423,941
EXPENSES: Management fee_Note 3(a)................... $ 150,317
Directors' fees and expenses_Note 3(c)..... 21,219
Shareholder servicing costs_Note 3(b)...... 11,106
Professional fees.......................... 8,801
Shareholders' reports...................... 4,459
Registration fees.......................... 3,400
Custodian fees_Note 3(b)................... 1,930
Miscellaneous.............................. 4,546
____________
Total Expenses....................... 205,778
____________
INVESTMENT INCOME_NET....................................................... 1,218,163
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ 15,490
Net unrealized appreciation (depreciation) on investments (270,690)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (255,200)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 962,963
=============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996
_______________ ___________________
OPERATIONS:
Investment income_net............................................... $ 1,218,163 $ 3,173,519
Net realized gain (loss) on investments............................. 15,490 (1,271,943)
Net unrealized appreciation (depreciation) on investments........... (270,690) 1,708,455
_______________ ___________________
Net Increase (Decrease) in Net Assets Resulting from Operations... 962,963 3,610,031
_______________ ___________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................... (1,229,051) (2,214,994)
_______________ ___________________
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested_Note 1(c)...................................... ___ ___
_______________ ___________________
Total Increase (Decrease) in Net Assets....................... (266,088) 1,395,037
NET ASSETS:
Beginning of Period................................................. 42,847,110 41,452,073
_______________ ___________________
End of Period................................................ $42,581,022 $42,847,110
=============== =================
Undistributed investment income_net..................................... $ 1,015,515 $ 1,026,403
_______________ ___________________
Shares Shares
_______________ ___________________
CAPITAL SHARE TRANSACTIONS:
Net Increase in Shares Outstanding as a Result of Dividends Reinvested ___ ___
=============== =================
SEE 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.
Six Months Ended
March 31, 1997 Year Ended September 30,
______________________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
___________ ________ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 9.52 $ 9.21 $ 8.98 $ 9.98 $ 9.40 $ 9.22
___________ ________ _______ _______ _______ _______
Investment Operations:
Investment income_net................. .27 .70 .52 .56 .62 .60
Net realized and unrealized gain (loss)
on investments...................... (.06) .10 .30 (.98) .56 .18
________ ________ _______ _______ _______ _______
Total from Investment Operations...... .21 .80 .82 (.42) 1.18 .78
________ ________ _______ _______ _______ _______
Distributions:
Dividends from investment income_net.. (.27) (.49) (.54) (.58) (.60) (.60)
Dividends from net realized gain
on investments __ __ (.05) __ __ __
________ ________ _______ _______ _______ _______
Total Distributions.................. (.27) (.49) (.59) (.58) (.60) (.60)
________ ________ _______ _______ _______ _______
Net asset value, end of period........ $ 9.46 $ 9.52 $ 9.21 $ 8.98 $ 9.98 $ 9.40
======== ======== ======== ======== ======== ========
Market value, end of period....... $ 9 5/16 $ 8 1/4 $ 8 3/16 $ 8 1/8 $ 10 1/8 $ 9 3/8
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN (1)............. 32.81% (2) 6.86% 8.12% (14.64%) 14.84% 1.23%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .96% (2) 1.06% 1.06% 1.02% 1.06% 1.11%
Ratio of net investment income
to average net assets............... 5.67% (2) 7.53% 5.95% 6.01% 6.45% 6.48%
Portfolio Turnover Rate............... 24.06% (3) 3.30% 13.80% 33.65% 15.54% 27.77%
Net Assets, end of period (000's Omitted) $42,581 $42,847 $41,452 $40,441 $44,658 $41,726
- - ---------------------------
(1) Calculated based on market value.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus California Municipal Income, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
closed-end management investment company. The Fund's investment objective is
to maximize current income exempt from Federal and California personal income
taxes to the extent consistent with the preservation of capital. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. ("Mellon").
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 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, 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 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 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.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
On March 31, 1997, the Board of Directors declared a cash dividend
of $.05 per share from investment income-net, payable on
April 28, 1997 to shareholders of record as of the close of business on April
14, 1997.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $727,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through September 30, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied, the carryover expires in
fiscal 2004.
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes. Interest is charged to the Fund at rates which are related to the
Federal Funds rate in effect at the time of borrowings. For the period ended
March 31, 1997, the Fund did not borrow under the line of credit.
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 .70 of 1% of the value of the Fund's
average weekly net assets and is payable monthly. The Agreement provides that
if in any full fiscal year the aggregate expenses of the Fund, exclusive of
taxes, interest on borrowings, brokerage and extraordinary expenses, exceed
the expense limitation of any state having jurisdiction over the Fund, the
Fund may deduct from payments to be made to the Manager, or the Manager will
bear the amount of such excess to the extent required by state law. There was
no expense reimbursement for the period ended March 31, 1997.
(B) The Fund compensates Mellon under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for
the Fund. Such compensation amounted to $11,106 during the period ended March
31, 1997.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended March 31, 1997,
$1,930 was charged by Mellon pursuant to the custody 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.
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1997,
amounted to $10,855,709 and $10,074,490, respectively.
At March 31, 1997, accumulated net unrealized appreciation on investments
was $1,931,404, consisting of $2,126,937 gross unrealized appreciation and
$195,533 gross unrealized depreciation.
At March 31, 1997, 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.
PROXY RESULTS (UNAUDITED)
Stockholders voted on the following proposals presented at the annual
stockholders' meeting held on December 6, 1996. The description of each
proposal and the number of shares voted are as follows:
<TABLE>
<CAPTION>
For Authority Withheld
____________ ____________________
<S> <C> <C>
1.To elect three Class III Directors:*
Joseph S. DiMartino........................................... 3,652,767 124,304
George L. Perry............................................... 3,649,315 127,756
Paul Wolfowitz................................................ 3,647,381 129,690
</TABLE>
<TABLE>
<CAPTION>
For Against Abstained
____________ _________ ____________
<S> <C> <C> <C>
2.To ratify the selection of Ernst & Young LLP
as independent auditors of the Fund................ 3,733,765 7,653 35,653
- - ----------------------------
*The terms of these Class III Directors expire in 1999.
</TABLE>
OFFICERS AND DIRECTORS
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
200 Park Avenue
New York, NY 10166
Directors
Joseph S. DiMartino, Chairman
Lucy Wilson Benson
David W. Burke
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
Richard W. Ingram
Vice President and Assistant Treasurer
Mary A. Nelson
Vice President and Assistant Treasurer
Michael Petrucelli
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Mark A. Karpe
Vice President and Assistant Secretary
Elizabeth Keeley
Vice President and Assistant Secretary
Douglas C. Conroy
Portfolio Managers:
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
Samuel J. Weinstock
Monica S. Wieboldt
Investment Adviser
The Dreyfus Corporation
Custodian
Mellon Bank, N.A.
Counsel
Stroock & Stroock & Lavan LLP
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,
Money and Business Section under
the heading "Closed-End Bond
Funds_Single State Municipal
Bond Funds" every Sunday.
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.
[Dreyfus lion "d" logo]
Registration Mark
DREYFUS CALIFORNIA MUNICIPAL
INCOME, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
AND REGISTRAR
Mellon Bank, N.A.
85 Challenger Road
Ridgefield Park, NJ 07660
Printed in U.S.A. 857SA973
[Dreyfus logo]
Registration Mark
California
Municipal
Income, Inc.
Semi-Annual
Report
March 31, 1997
857SA973
Registration Mark
[Dreyfus logo]
California
Municipal
Income, Inc.
Semi-Annual
Report
March 31, 1997
