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 period ended March 31, 1998. Your
Fund produced a total return, including share price changes and interest
income generated, of 3.01%.* During the reporting period, the Fund produced
income dividends exempt from Federal and State of California personal income
taxes of $.294 per share.** This is equivalent to an annualized tax-free
distribution rate per share of 5.88%.***
The Economy
The United States economy seems to be well on the track to its eighth
consecutive year of expansion. Low interest rates, restrained inflation and
plentiful jobs have driven measures of consumer confidence to record levels.
Personal income has grown strongly over the reporting period and consumer
spending, after a sluggish holiday season, has picked up sharply this year.
The production side of the economy has remained strong as well, although
signs of leveling off were seen early in the year, perhaps due to the
economic problems in Asia. The first effects of the Asian economic crisis
were felt at the end of last year when after-tax corporate profits fell in
the fourth quarter, the first decline since the third quarter of 1996.
Balance of Trade figures for January (the latest data available) provided
additional evidence that the economic difficulties in Asia may be affecting
the U.S. economy.
The Federal Reserve Board expects that a reduction in demand for U.S.
exports will result from turmoil in Asia and dampen our domestic economic
growth as a result. Currency devaluations throughout Asia, in turn, have made
imports into the United States less expensive. Cheaper imports and waning
demand for U.S. exports should place additional downward pressure on domestic
prices, helping further to control inflation. The year-long decline in oil
prices has also helped. A restrained rate of inflation, in turn, would ease
some of the strains on the labor market, and help keep labor costs under
control. The upward pressure on wages has been a paramount concern of the
Federal Reserve Board because of the risk it poses for rekindling inflation.
Wage costs have been rising at about 4% over the reporting period, a rate
that has significantly outpaced inflation. New job creation has been strong
over the reporting period with the unemployment rate remaining at or near
25-year lows. Yet inflation has stayed tame. The Consumer Price Index has
risen 1.6% over the past 12 months and a broader measure of the cost of
living, the Gross Domestic Product Price Deflator, has grown at the 1.4%
level for the last two quarters of last year. The Producer Price Index was in
outright decline over the reporting period.
Restrained inflation has kept the Fed from increasing interest rates. The
last increase in short-term rates came in March 1997 when the target rate for
the Federal Funds was increased by one quarter of a percent to 5.5%. (The
Federal Funds rate is the rate of interest that banks charge one another for
overnight loans.)
Low interest rates have provided a strong fundamental underpinning for
interest rate-sensitive sectors of the economy such as housing. In this case,
the Asian crisis has actually proven a stimulus to consumer spending since
international bond investors have sought the safety of U.S. Government
securities, causing interest rates to fall. This reduction in borrowing costs
has spurred mortgage refinancing, thus giving consumers additional spending
power. Mortgage rates have been at levels not seen since the 1960s. The
housing market, a critical segment of the economy, has responded accordingly.
New housing starts rose to their highest annual level in over ten years,
while resale rates of existing homes set records during the reporting period.
Overall spending on construction, both residential and commercial, has been
solid.
So far, the economy has remained remarkably robust and inflation-free. We
are sensitive to the longevity of this extraordinary economic advance and
will seek to keep alert to evidence of a potential reversal in direction or
an upsurge in inflation.
Market Environment
The market environment for bonds has been very constructive. During the
last six months, yields on long-term, high grade tax-exempt bonds have
declined by over one quarter of a percentage point. During this same time
U.S. Treasury bond yields fell a bit further. Certainly, it has been the
uncertain impact of the Asian financial crisis which has kept the Fed from
pushing rates higher despite strong domestic economic data. Spurred by this
drop in rates, the issuance of new municipal securities surged during the
last several months. In fact, the volume of new issuance last year rose 20%
over the previous year, marking 1997 one of the most prolific years of
issuance in history. So far, 1998 is on course to eclipse last year's pace. A
record $68 billion of new tax-exempt debt was issued during the first quarter
of 1998. The relatively minor correction to lower prices in recent weeks is
reflective of the supply build-up.
We believe that it is still too early to draw any conclusions regarding
how much the Asian crisis will affect the U.S. economy. The still-strong and
expanding economy would normally be a cause for concern to inflation
watchers. However, it is generally believed that the Fed will refrain from
taking any interest rate actions that could exacerbate the Asian situation.
While the most recent economic and employment data has been indicative of a
strengthening economy, inflation remains quiescent.
The fixed income markets are now in the middle of what has historically
been a time of year when prices weaken. March and April are generally large
debt issuance months in all markets. Based on past experience, it is expected
that bonds will lose some ground; however, for the reasons cited, we believe
that the current environment supports an outlook for steady monetary policy
and well-anchored interest rates. As long as inflation growth remains low and
the pace of consumer demand cools somewhat this spring, we believe that any
setback to bonds should not be prolonged.
Portfolio Overview
As discussed in previous communications to shareholders, while the Fund
seeks Federal and California tax-exempt income, opportunities to enhance the
dividend distribution are limited. Quality spreads (the yield differential
between the higher and lower quality bonds) continue to narrow. While there
are many attributable reasons, the factor most cited is the rising percentage
of the highest grade (AAA rated) insured bonds. Today, half of all new
municipal bond issuance comes to market as insured. The dearth of higher
yielding bonds coupled with strong investor demand has driven quality spreads
to new lows.
Further eroding our attempt to add incremental income has been the large
decline in interest rates over the past few years. Many of the portfolio
securities that were purchased in a higher interest rate environment are now
being called by their issuers and replaced with lower coupon debt. Due
principally to the lower interest rate environment, it was necessary to
reduce the distributed dividend recently. In spite of this modest adjustment,
Dreyfus California Municipal Income, Inc. is still generating a Federal and
California tax-free yield of 5.88% presently. (This yield is subject to
change based on the Fund's share price.)
California's economic growth is expected to continue, albeit at a more
moderate pace. Potential complications from Asia, a major trading partner,
are an uncertainty. The gains achieved by the State over the past several
years have allowed the financial picture to improve dramatically as evidenced
by strong employment and personal income increases. We have not altered our
generally positive outlook.
Looking forward, our focus will continue to be on owning securities
meeting our investment criteria. The large slate of new issues scheduled for
sale over the next several weeks makes us cautious near-term, but, as long as
the economic data don't surprise negatively, this could prove to be a good
buying opportunity. The market has not made any significant moves in recent
weeks and this condition could persist going forward until a clearer picture
of the repercussions of the Asian crisis emerges.
Very truly yours,
[signature logo Richard J. Moynihan]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, based upon net asset value.
**Some income may be subject to state and local taxes for non-California
residents and, for certain shareholders, to the Federal Alternative Minimum
Tax (AMT).
*** 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>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments-100.0% Amount Value
____________ ____________
<S> <C> <C>
California-97.4%
Bakersfield Central District Development Agency, Tax Allocation Revenue,
Refunding
(Downtown Bakersfield Redevelopment) 6.625%, 4/1/2015 (Prerefunded 4/1/2003) (a) $ 1,000,000 $ 1,125,800
California 6.432%, 12/1/2018 (b,c).......................................... 375,000 380,625
California Department of Water Resources, Revenue
(Central Valley Project) 8.04%, 12/1/2026 (Prerefunded 6/1/2002) (a,b,c).. 900,000 1,081,125
California Educational Facilities Authority, Revenue (University of San
Francisco)
6.40%, 10/1/2017 (Prerefunded 10/1/2002) (a).............................. 1,100,000 1,224,465
California Pollution Control Finance Authority,
Facilities Revenue (Mobil Oil Corp.) 5.50%, 12/1/2029 (Guaranteed; Mobil Oil Corp.) 1,250,000 1,275,175
SWDR:
(Browning-Ferris Industries):
5.80%, 12/1/2016...................................................... 2,000,000 2,098,800
6.75%, 9/1/2019....................................................... 600,000 672,156
(Keller Canyon Landfill Co. Project) 6.875%, 11/1/2027.................. 1,000,000 1,101,810
California Public Works Board, LR (Various University of California Projects)
6.60%, 12/1/2022 (Prerefunded 12/1/2002) (a).............................. 800,000 899,712
Capistrano Unified School District, Special Tax
(Community Facilities District Number 87-1-Aliso Viejo)
8.375%, 10/1/2020 (Prerefunded 10/1/2000) (a)............................. 2,000,000 2,250,620
Compton Community Redevelopment Agency, Tax Allocation Revenue,
Refunding (Walnut Industrial Park) 8.10%, 8/1/2013 (Prerefunded 8/1/1999) (a) 1,000,000 1,076,760
Duarte, COP (City of Hope National Medical Center) 6.125%, 4/1/2013......... 1,000,000 1,056,100
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2014................... 500,000 549,105
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue 6%, 1/1/2034 1,000,000 1,051,270
Fresno Health Facility, Revenue, Refunding
(Holy Cross Health System Corp.) 5.625%, 12/1/2018........................ 750,000 770,835
Highland, Special Tax (Community Facilities District Number 90-1)
8.60%, 9/1/2015 (Prerefunded 9/1/1998) (a)................................ 2,000,000 2,080,640
Irvine ranch Water District Joint Powers Agency, Local Pool Revenue 8.25%, 8/15/2023 1,000,000 1,014,910
Orange County Special Tax:
(Community Facilities District Number 87-5-Rancho Santa Margarita)
7.80%, 8/15/2013 (Prerefunded 8/15/1998) (a)............................ 1,000,000 1,035,320
(Community Facilities District Number 88-1- Aliso Viejo)
8.10%, 8/15/2013 (Prerefunded 8/15/1998) (a)............................ 1,000,000 1,036,300
Palmdale Civic Authority, Tax Allocation Revenue, Refunding
(Merged Redevelopment Project Areas) 6.60%, 9/1/2034...................... 1,000,000 1,103,330
Redwood Empire Financing Authority, COP 6.40%, 12/1/2023.................... 4,000,000 4,250,840
Sacramento County, Community Facilities District Number 1, Special Tax,
Refunding
5.70%, 12/1/2020.......................................................... 750,000 743,430
Dreyfus California Municipal Income, Inc.
Statement of Investments (continued) March 31, 1998 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
____________ ____________
California (continued)
Sacramento Municipal Utility District, Electric Revenue, Refunding
7.875%, 8/15/2016 (Prerefunded 8/15/1998) (a)............................. $ 1,500,000 $ 1,553,385
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
6.75%, 1/1/2032 (Prerefunded 1/1/2003) (a)................................ 1,000,000 1,130,430
Santa Cruz County Public Financing Authority, Tax Allocation Revenue
6.20%, 9/1/2023........................................................... 2,000,000 2,126,480
San Jose, MFHR 8.571%, 4/1/2012 (b)......................................... 2,962,500 3,425,390
Turlock Health Facility, COP, Refunding (Emanuel Medical Center)
5.75%, 10/15/2023......................................................... 2,500,000 2,564,425
Valley Health System, HR, Refunding (Improvement Project) 6.50%, 4/15/2025.. 2,000,000 2,159,140
Walnut Improvement Agency, Tax Allocation Revenue (Walnut Improvement
Project):
8%, 9/1/2018.............................................................. 1,000,000 1,037,990
8%, 9/1/2018 (Prerefunded 9/1/1998) (a)................................... 230,000 238,133
U.S. Related-2.6%
Guam Power Authority, Revenue 6.75%, 10/1/2024.............................. 1,000,000 1,116,530
____________
TOTAL INVESTMENTS
(cost $39,892,035)........................................................ $43,231,031
============
</TABLE>
<TABLE>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
Summary of Abbreviations
COP Certificate of Participation MFHR Multi-Family Housing Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
LR Lease Revenue
Summary of Combined Ratings (Unaudited)
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
_______ ________ _________________ __________________
<S> <C> <C> <C>
AAA Aaa AAA 31.6%
AA Aa AA 7.2
A A A 19.3
BBB Baa BBB 32.1
Not Rated (e) Not Rated (e) Not Rated (e) 9.8
_______
100.0%
=======
Notes to Statement of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Inverse floater security-the interest rate is subject to change
periodically.
(c) Securities exempt from registration under Rule 144A of the securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to a qualified institutional buyer. At March 31, 1998,
these securities amounted to$ 1,461,750 or 3.3% of net assets.
(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>
<TABLE>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998 (UNAUDITED)
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $39,892,035 $43,231,031
Interest receivable........................ 862,667
Prepaid expenses........................... 7,301
____________
44,100,999
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 32,563
Cash overdraft due to Custodian............ 64,315
Accrued expenses........................... 41,535
____________
138,413
____________
NET ASSETS.................................................................. $43,962,586
============
REPRESENTED BY: Paid-in capital............................ $41,873,063
Accumulated undistributed investment income-net 698,024
Accumulated net realized gain (loss) on investments (1,947,497)
Accumulated gross unrealized appreciation on investments 3,338,996
____________
NET ASSETS.................................................................. $43,962,586
============
SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized)............. 4,528,182
NET ASSET VALUE per share................................................... $9.71
=====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income............................ $1,403,023
EXPENSES: Management fee-Note 3(a)................... $ 153,386
Shareholders' reports...................... 21,450
Directors' fees and expenses-Note 3(c)..... 19,870
Professional fees.......................... 12,369
Shareholder servicing costs-Note 3(b)...... 11,315
Registration fees.......................... 4,095
Custodian fees-Note 3(b)................... 1,650
Miscellaneous.............................. 3,511
___________
Total Expenses....................... 227,646
___________
INVESTMENT INCOME-NET....................................................... 1,175,377
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 2,198
Net unrealized appreciation (depreciation) on investments 128,320
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 130,518
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,305,895
===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1998 Year Ended
(Unaudited) September 30, 1997
________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................. $ 1,175,377 $ 2,405,476
Net realized gain (loss) on investments............................... 2,198 49,643
Net unrealized appreciation (depreciation) on investments............. 128,320 1,008,582
________________ __________________
Net Increase (Decrease) in Net Assets Resulting from Operations..... 1,305,895 3,463,701
________________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................. (1,328,724) (2,580,508)
________________ __________________
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested-Note 1(c)........................................ 147,844 107,268
________________ __________________
Total Increase (Decrease) in Net Assets......................... 125,015 990,461
NET ASSETS:
Beginning of Period................................................... 43,837,571 42,847,110
________________ __________________
End of Period......................................................... $43,962,586 $43,837,571
================ ==================
Undistributed investment income-net....................................... $ 698,024 $ 851,371
________________ __________________
Shares Shares
________________ __________________
CAPITAL SHARE TRANSACTIONS:
Increase in Shares Outstanding as a Result of Dividends Reinvested.. 15,039 11,122
================ ==================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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, 1998 Year Ended September 30,
_____________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 9.71 $ 9.52 $ 9.21 $ 8.98 $ 9.98 $ 9.40
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income-net................. .26 .53 .70 .52 .56 .62
Net realized and unrealized gain (loss)
on investments...................... .03 .23 .10 .30 (.98) .56
______ ______ ______ ______ ______ ______
Total from Investment Operations...... .29 .76 .80 .82 (.42) 1.18
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.. (.29) (.57) (.49) (.54) (.58) (.60)
Dividends from net realized gain on investments .- .- .- (.05) .- .-
______ ______ ______ ______ ______ ______
Total Distributions................... (.29) (.57) (.49) (.59) (.58) (.60)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $ 9.71 $ 9.71 $ 9.52 $ 9.21 $ 8.98 $ 9.98
======= ======= ======= ======= ======= =======
Market value, end of period........... $ 10 $ 101\4 $ 81\4 $ 83\16 $ 81\8 $ 101\8
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN(1)................ 98%(2) 32.14% 6.86% 8.12% (14.64%) 14.84%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.04%(2) .98% 1.06% 1.06% 1.02% 1.06%
Ratio of net investment income
to average net assets............... 5.36%(2) 5.57% 7.53% 5.95% 6.01% 6.45%
Portfolio Turnover Rate............... 2.39%(3) 26.38% 3.30% 13.80% 33.65% 15.54%
Net Assets, end of period (000's Omitted) $43,963 $43,83 $42,847 $41,452 $40,441 $44,658
(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, 1998, the Board of Directors declared a cash dividend of $.047
per share from investment income-net, payable on April 29, 1998 to shareholders
of record as of the close of business on April 15, 1998.
(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 $1,949,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1997. If not
applied, $727,000 of the carryover expires in fiscal 2004 and 1,222,000
expires in fiscal 2005.
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. During the period
ended March 31, 1998, 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 ("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 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, 1998.
(b) The Fund compensates Mellon under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for
the Fund. During the period ended March 31, 1998, the Fund was charged $7,350
pursuant to the transfer agency agreement.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended March 31, 1998, the
Fund was charged $1,650 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, 1998
amounted to $1,111,485 and $1,027,500, respectively.
At March 31, 1998, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
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 Assistant Treasurer
Richard W. Ingram
Vice President and Assistant Secretary
Mary A. Nelson
Vice President, Assistant Treasurer
and Assistant Secretary
Michael Petrucelli
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Douglas C. Conroy
Vice President and Assistant Secretary
Christopher J. Kelley
Vice President and Assistant Secretary
Kathleen K. Morrisey
Vice President and Assistant Secretary
Elba Vasquez
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.
Registration Mark
[Dreyfus lion "d" logo]
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 DISTRIBUTION AGENT
AND REGISTRAR
Mellon Bank, N.A.
85 Challenger Road
Ridgefield Park, NJ 07660
Printed in U.S.A. 857SA983
Registration Mark
[Dreyfus logo]
California
Municipal
Income, Inc.
Semi-Annual
Report
March 31, 1998
