Dreyfus
California
Municipal
Income, Inc.
Semi-Annual
Report
March 31, 1999
<PAGE>
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could
have an impact on the value of the fund's investments and its share price.
<PAGE>
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, 1999. Your
fund produced a total return, including share price changes and dividend
income generated, of .91%.* During the reporting period, the fund produced
income dividends exempt from federal and state of California personal income
taxes of $0.282 per share.** This is equivalent to an annualized tax-free
distribution rate per share of 5.60%.***
Economic Review
The economy in the period ended March 31, 1999 had several persistent
themes. These included weakness in the world economy, strength in the U.S.
economy, pervasive disinflation and multiple rounds of central bank easing,
which lowered interest rates in many parts of the world.
Weakness in the world economy started in Asia with economic and financial
stresses throughout most of the continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most
of the rest of Asia. The most severe phase of these crises occurred when Asian
currencies dropped and short-term interest rates rose there as well. Then
Latin America began to weaken, particularly Brazil. Tentative signs of a
bottoming in Asia had emerged by the end of your fund's fiscal period;
however, Brazil had not yet turned the corner.
Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began the last year at a modest pace and showed signs of stagnation in early
1999. Even so, the new European central bank postponed the reduction in
interest rates at the beginning of 1999, probably because of a desire to build
anti-inflationary credibility. The bank finally eased in April of this year.
The U.S. economy proved to be a superperformer during the period, growing
at an above-trend rate despite the economic weakness overseas. A major reason
for this was that the negative effects of foreign economic weakness on the
traditional industrial sector were offset by positive effects elsewhere in the
economy. Low inflation and low interest rates stimulated the housing and
consumer sectors, while the technology sector continued to expand.
The Federal Reserve eased monetary policy three times beginning on
September 30, 1998, lowering the federal funds rate from 5.50% to 4.75%. This
was not because of any shortfall in U.S. economic growth. Rather, it was a
response to a financial crisis linked to the Russian default and the financial
problems of a major hedge fund. Despite widespread fears, the U.S. economy
never did slow. Long-term interest rates declined into early October, when
fears of financial crisis, deflation and possible economic recession were at
their greatest. However, those rates then drifted higher as the financial
stresses eased and the feared economic slowdown did not materialize.
Market Environment
Moderating economic growth in the U.S., a negligible rate of inflation, and
relatively low interest rates continue to foster a positive atmosphere for
municipal bonds. As measured by commonly accepted indexes, municipal bond
yields have moved very little over the last six-month period, compared to
yields of U.S. Treasury bonds. Treasuries, of course, were affected uniquely
because of the safe haven they provided during the economic and currency
collapses of several foreign countries; lately there has been some liquidation
of Treasuries as recovery in several foreign nations began, thus their price
movements have been more volatile.
Municipal yields continue to be historically generous vis-a-vis Treasury
bond yields, and that lends support to current price levels. Presently,
municipal bonds with maturities of 20 years and longer provide federally tax-
free yields that exceed 90% of the taxable yields provided by Treasury bonds
with comparable maturities. Also helping to firm up price levels of municipal
bonds is a shortage of supply in the new-issue market. So far in 1999, newly
marketed issues amount to just 77% of 1998's volume. Some reduction in 1999 is
expected when compared to 1998, when a number of refundings helped to swell
that year's total issuance to $284 billion, but at this time new issues are
running somewhat behind expectations for 1999.
<PAGE>
Demand continues to be sparked by the after-tax benefits of municipal bond
ownership, recognized mainly by individuals and crossover buyers, the latter
being buyers who commonly operate in both taxable and tax-exempt markets,
depending on yield ratios and after-tax benefits. Institutional demand is not
especially strong right now, and that demand is very specific, centering on
coupon, maturity and several technical features. With supply and demand well
balanced, and no discernible indications of rising inflation and higher
interest rates, it appears that the municipal environment will continue to be
hospitable.
Portfolio Focus
As discussed in previous communications to shareholders, the fund strives
to maximize income exempt from California State taxes. During the reporting
period, opportunities to enhance the dividend payout remained limited. Yield
differentials between the most highly rated and less highly rated securities
remained historically tight. The decline in interest rates continues to have
an impact as well. As the fund has matured, many of the securities purchased
years ago in a higher-interest-rate environment have been called. The proceeds
have been reinvested in bonds yielding less than those redeemed. Dreyfus
California Municipal Income, Inc. generated a tax-free yield of 5.60% as of
March 31, 1999, based on its stock price. Management continues to be alert for
opportunities while recognizing that future dividend reductions may be
required.
We continue to maintain a positive market outlook. The supply of new tax-
exempt issues coming to market is running below last year's pace. Demand from
individual investors and from professional arbitrageurs has been supportive.
The municipal bond market has traded in a very narrow range over the past
several months. With volatility measures at near-record lows, we currently
don't anticipate much of a change in market conditions. Because of our
constructive long-term market outlook, we have extended the fund's duration to
7.3 years as of March 31, 1999.
We remain encouraged by California's strong economic growth, which
continued to outpace that of the U.S. The overall economy continued to expand,
with solid employment gains. While the financial picture has stabilized, we
remain alert to any negative effects of the Asian recession. Because
California has successfully diversified its economy, it is currently expected
that the economy will continue to remain healthy, though growth might occur at
a slower pace. In summary, if recent market behavior continues, we believe
that income should be the key to relative market performance in the months
ahead.
<PAGE>
We look forward to serving you in the future.
Very truly yours,
/s/Richard J. Moynihan
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 19, 1999
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, based upon net asset value per share.
** Some income may be subject to state and local income 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.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus California Municipal Income, Inc.
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Statement of Investments March 31, 1999 (Unaudited)
Principal
Long-Term Municipal Investments--98.9% Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
California--91.7%
Abag Financial Authority For Nonprofit Corps, MFHR
(Central Park Apartments) 5.60%, 7/1/2038................................... $ 815,000 $ 824,421
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 1,128,900
California 8.159%, 12/1/2018 (b,c)............................................. 375,000 385,380
California Department Water Resources, Revenue
(Central Valley Project) 9.995%, 12/1/2026 (Prerefunded 6/1/2002) (a,b)..... 900,000 1,080,126
California Educational Facilities Authority, Revenue (University of San
Francisco)
6.40%, 10/1/2017 (Prerefunded 10/1/2002) (a)................................ 1,100,000 1,224,289
California Pollution Control Finance Authority:
Facilities Revenue (Mobil Oil Corp.) 5.50%, 12/1/2029 (Guaranteed; Mobil
Oil Corp.)................................................................ 1,250,000 1,281,450
Pollution Control Revenue, 8.60%, 6/1/2016 (b).............................. 1,000,000 1,257,950
SWDR:
(Browning Ferris Industries):
5.80%, 12/1/2016........................................................ 2,000,000 2,024,900
6.75%, 9/1/2019......................................................... 600,000 649,398
(Keller Canyon Landfill Co. Project) 6.875%, 11/1/2027.................... 1,000,000 1,059,570
California Public Works Board, LR (Various University of California Projects)
6.60%, 12/1/2022 (Prerefunded 12/1/2002) (a)................................ 800,000 899,128
California Statewide Communities Development Authority:
LR, 8%, 10/1/2033 (b)....................................................... 1,000,000 1,066,240
COP (The Internext Group) 5.375%, 4/1/2030.................................. 1,300,000 1,274,052
Capistrano Unified School District, Special Tax
(Community Facilities District Number 87-1-Aliso Vieio)
8.375%, 10/1/2020 (Prerefunded 10/1/2000) (a)............................... 2,000,000 2,190,760
Duarte, COP (City of Hope National Medical Center)
6.125%, 4/1/2013 (Prerefunded 4/1/2003) (a)................................ 1,000,000 1,106,080
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2014 (Prerefunded
5/1//2004) (a).............................................................. 500,000 578,875
Escondido Improvement Bond, Act of 1915, Refunding
(Reassessment District Number 98) 5.70%, 9/2/2026........................... 450,000 451,481
Fontana Redevelopment Agency, Tax Allocation Revenue, Refunding
(Jurupa Hills Redevelopment Project) 5.50%, 10/1/2027....................... 750,000 759,248
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue 6%,
1/1/2034.................................................................... 1,000,000 1,075,600
Fresno Health Facility, Revenue, Refunding
(Holy Cross Health System Corp.) 5.625%, 12/1/2018.......................... 750,000 782,070
Palmdale Civic Authority, Revenue, Refunding
(Merged Redevelopment Project Areas):
6.60%, 9/1/2034 (Prerefunded 9/1/2004) (a)................................ 590,000 682,152
6.60%, 9/1/2034........................................................... 410,000 450,434
Redwood Empire Financing Authority, COP 6.40%, 12/1/2023....................... 4,000,000 4,287,320
<PAGE>
Dreyfus California Municipal Income, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
California (continued)
Sacramento County, Community Facilities District Number 1, Special Tax,
Refunding
5.70%, 12/1/2020............................................................ $ 750,000 $ 758,235
San Diego County, COP, 5.70%, 2/1/2028......................................... 1,000,000 993,050
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
6.75%, 1/1/2032 (Prerefunded 1/1/2003) (a).................................. 1,000,000 1,128,320
San Jose, MFHR
10.341%, 4/1/2012 (b)....................................................... 2,912,500 3,288,475
Santa Cruz County Public Financing Authority, Tax Allocation Revenue
6.20%, 9/1/2023............................................................. 2,000,000 2,121,620
Torrance Redevelopment Agency, Tax Allocation Revenue, Refunding
5.625%, 9/1/2028............................................................ 500,000 501,145
Turlock Health Facility, COP, Refunding (Emanuel Medical Center)
5.75%, 10/15/2023........................................................... 2,500,000 2,523,500
Valley Health System, HR, Refunding (Improvement Project) 6.50%, 4/15/2025..... 2,000,000 2,135,880
U.S. Related--7.2%
Commonwealth of Puerto Rico Highway and Transportation Authority,
Transportation Revenue, 6.93%, 4/1/2008 (b,c)............................... 1,000,000 991,320
Commonwealth of Puerto Rico Infrastructure Financing Authority,
Special Tax Revenue, 6.855%, 7/1/2015 (b)................................... 1,000,000 1,035,680
Guam Power Authority, Revenue 6.75%, 10/1/2024 1,000,000 1,120,309
-----------
TOTAL INVESTMENTS (cost $40,259,126)........................................... 98.9% $43,117,358
------ -----------
------ -----------
CASH AND RECEIVABLES (NET)..................................................... 1.1% $ 501,591
------ -----------
------ -----------
NET ASSETS..................................................................... 100.0% $43,618,949
------ -----------
------ -----------
</TABLE>
<PAGE>
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 or Moody's or Standard & Poor's Percentage of Value
- ----- ------- ----------------- -------------------
AAA Aaa AAA 25.6%
AA Aa AA 7.3
A A A 18.1
BBB Baa BBB 41.9
Not Rated (d) Not Rated (d) Not Rated (d) 7.1
------
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 a transactions exempt from
registration, normally to a qualified institutional buyer. At March 31,
1999, these securities amounted to $ 1,376,700 or 3.2% of net assets.
(d) 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.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus California Municipal Income, Inc.
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
Cost Value
----------- -----------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments..... $40,259,126 $43,117,358
Interest receivable......................................... 902,883
Prepaid expenses............................................ 551
-----------
44,020,792
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates............... 29,009
Cash overdraft due to Custodian............................. 330,930
Accrued expenses............................................ 41,904
-----------
401,843
-----------
NET ASSETS..................................................................... $43,618,949
-----------
-----------
REPRESENTED BY: Paid-in capital............................................. $42,136,810
Accumulated undistributed investment income--net............ 400,443
Accumulated net realized gain (loss) on investments......... (1,776,536)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4.................................... 2,858,232
-----------
NET ASSETS..................................................................... $43,618,949
-----------
-----------
SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized)............... 4,555,240
NET ASSET VALUE per share..................................................... $9.58
-----
-----
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus California Municipal Income, Inc.
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended March 31, 1999 (Unaudited)
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................................. $1,321,781
EXPENSES: Management fee--Note 3(a)................................... $ 153,398
Professional fees........................................... 20,370
Directors' fees and expenses--Note 3(c)..................... 18,434
Shareholders' reports....................................... 13,265
Shareholder servicing costs--Note 3(b)...................... 10,218
Registration fees........................................... 2,318
Custodian fees--Note 3(b)................................... 2,145
Miscellaneous............................................... 4,863
-----------
Total Expenses............................................ 225,011
----------
INVESTMENT INCOME--NET......................................................... 1,096,770
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments..................... $ 81,311
Net unrealized appreciation (depreciation) on investments... (795,395)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... (714,084)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 382,686
----------
----------
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus California Municipal Income, Inc.
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
---------------- ------------------
<S> <C> <C>
OPERATIONS:
Investment income--net...................................................... $ 1,096,770 $ 2,341,879
Net realized gain (loss) on investments..................................... 81,311 91,848
Net unrealized appreciation (depreciation) on investments................... (795,395) 442,951
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations........... 382,686 2,876,678
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net...................................................... (1,282,334) (2,607,243)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested--Note 1(c)............................................. 132,865 278,726
------------ ------------
Total Increase (Decrease) in Net Assets................................... (766,783) 548,161
NET ASSETS:
Beginning of Period......................................................... 44,385,732 43,837,571
------------ ------------
End of Period............................................................... $ 43,618,949 $ 44,385,732
------------ ------------
------------ ------------
Undistributed investment income--net $ 400,443 $ 586,007
------------ ------------
Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase in Shares Outstanding as a Result of Dividends Reinvested 13,548 28,549
------------ ------------
------------ ------------
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
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 Fund's financial statements and markets price data
for the Fund's shares.
Six Months Ended
March 31, 1999 Year Ended September 30,
------------------------------------------------------
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 9.77 $ 9.71 $ 9.52 $ 9.21 $ 8.98 $ 9.98
------- ------- ------- ------- ------- -------
Investment Operations:
Investment income--net........................ .24 .52 .53 .70 .52 .56
Net realized and unrealized gain (loss)
on investments.............................. (.15) .12 .23 .10 .30 (.98)
------- ------- ------- ------- ------- -------
Total from Investment Operations.............. .09 .64 .76 .80 .82 (.42)
------- ------- ------- ------- ------- -------
Distributions:
Dividends from investment income--net......... (.28) (.58) (.57) (.49) (.54) (.58)
Dividends from net realized gain on investments -- -- -- -- (.05) --
------- ------- ------- ------- ------- -------
Total Distributions........................... (.28) (.58) (.57) (.49) (.59) (.58)
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $ 9.58 $ 9.77 $ 9.71 $ 9.52 $ 9.21 $ 8.98
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Market Value, end of period $10 1/16 $10 7/16 $10 1/4 $ 8 1/4 $8 3/16 $ 8 1/8
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
TOTAL INVESTMENT RETURN(1)....................... (1.58%)(2) 7.98% 32.14% 6.86% 8.12% (14.64%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets....... 1.03%(2) 1.00% .98% 1.06% 1.06% 1.02%
Ratio of net investment income
to average net assets....................... 5.00%(2) 5.34% 5.57% 7.53% 5.95% 6.01%
Portfolio Turnover Rate....................... 20.84%(3) 19.28% 26.38% 3.30% 13.80% 33.65%
Net Assets, end of period (000's Omitted)..... $43,619 $44,386 $43,838 $42,847 $41,152 $40,441
<FN>
- -------------------
(1) Calculated based on market value.
(2) Annualized.
(3) Not annualized.
</FN>
See notes to financial statements.
</TABLE>
<PAGE>
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, as amended (the "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 (the "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 the net asset value per
share is less than 95% of the market value, shares will be issued by the Fund
at 95% of the 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.
<PAGE>
On March 31, 1999, the Board of Directors declared a cash dividend of $.047
per share from investment income-net, payable on April 29, 1999 to
shareholders of record as of the close of business on April 15, 1999.
(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 of 1986, as amended, 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 $1,857,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1998. If not
applied, $635,000 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, including the financing of redemptions. 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, 1999, 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, 1999.
(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, 1999, the Fund was charged $6,300
pursuant to the transfer agency agreement.
The Fund compensates Mellon under a custody agreement for providing
custodial services for the Fund. During the period ended March 31, 1999, the
Fund was charged $2,145 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, 1999
amounted to $9,710,519 and $9,042,615, respectively.
At March 31, 1999, accumulated net unrealized appreciation on investments
was $2,858,232, consisting of $2,935,514 gross unrealized appreciation and
$77,282 gross unrealized depreciation.
At March 31, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
<PAGE>
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
Margaret W. Chambers
Vice President and Assistant Treasurer
Mary A. Nelson
Vice President, Assistant Treasurer and Assistant Secretary
Stephanie Pierce
Vice President and Assistant Treasurer
George A. Rio
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Douglas C. ConroyI
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.
<PAGE>
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. 426SA993
