Dreyfus
California Municipal Income, Inc.
SEMIANNUAL REPORT March 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
12 Financial Highlights
13 Notes to Financial Statements
17 Officers and Directors
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus California
Municipal Income, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus California
Municipal Income, Inc., covering the six-month period from October 1, 1999
through March 31, 2000. Inside, you'll find valuable information about how the
fund was managed during the reporting period, including a discussion with the
fund' s portfolio manager, Paul Disdier.
The U.S. economy grew strongly over the past six months in an environment
characterized by high levels of consumer spending and low levels of
unemployment. Concerns that inflationary pressures might re-emerge caused the
Federal Reserve Board to raise short-term interest rates three times during the
reporting period. These rate hikes contributed to a total interest-rate increase
of 125 basis points since late June 1999, before the current reporting period
began. While higher interest rates led to an erosion of municipal bond prices
during the first half of the reporting period, the tax-exempt bond market showed
renewed signs of strength during the first quarter of 2000.
Municipal bonds were also affected by supply-and-demand considerations. These
technical influences have caused the yields of tax-exempt bonds to rise to very
attractive levels compared to the after-tax yields of taxable bonds of
comparable maturity and credit quality. This is especially true for investors in
the higher federal and state income tax brackets.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus California Municipal Income, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Paul Disdier, Portfolio Manager
How did Dreyfus California Municipal Income, Inc. perform during the period?
For the six-month period ended March 31, 2000, the fund produced a total return
of -0.21% .(1) The fund provided income dividends of $0.270 per share, which is
equal to an annualized distribution rate of 7.14% over the same period.(2)
We attribute the fund's performance to a rising interest-rate environment, which
caused most municipal bond prices to decline, and to the fund's security
selection strategy, which was designed to take advantage of what we believe are
potentially attractive values created during the municipal market's decline. The
negative returns produced by these securities during the fourth quarter of 1999
have not been completely offset during the market rally that began in the first
quarter of 2000.
What is the fund's investment approach?
The fund seeks high current income exempt from federal and California state
income taxes by ordinarily investing in California municipal bonds.
In doing so, we currently have constructed a portfolio typically by looking for
income opportunities through analysis of each bond's structure, including paying
particularly close attention to a bond's yield, maturity and early redemption
features.
Over time, many of the fund's relatively higher yielding bonds mature or are
redeemed by their issuers. We generally attempt to replace those bonds with
securities that, at the time, can offer higher than average income payments.
This strategy is designed to help provide high current income. When an
opportunity presents itself, we also seek to upgrade the fund with newly issued
bonds that, in our opinion, have better structural or income characteristics
than existing holdings. When such opportunities arise, we usually will look to
sell bonds that
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
are close to redemption or maturity. This strategy is intended to protect the
fund's income stream. In addition, we conduct credit analysis of our holdings in
an attempt to avoid potential defaults on interest and principal payments.
What other factors influenced the fund's performance?
Although the fund's performance was hurt by a difficult investment environment
during most of 1999, the first quarter of 2000 provided better market conditions
and a market rally.
When the reporting period began on October 1, 1999, investors had become
concerned that strong economic growth might rekindle long-dormant inflationary
pressures. In fact, in an attempt to forestall a reacceleration of inflation,
the Federal Reserve Board raised short-term interest rates three times during
the reporting period, causing most bond prices to fall. These interest-rate
hikes followed two previous increases implemented before the current reporting
period began, for a total increase of 125 basis points since last summer.
Nationally, municipal bond prices also fell during 1999 because of adverse
supply-and-demand influences. For a variety of reasons, institutional investors
participated less in the tax-exempt market. Despite strong demand from
individual investors, the absence of institutional buyers helped reduce overall
demand in the national market and drove municipal bond prices down. In
California, however, robust demand from individuals more than offset the absence
of institutional investors. As a result, the effects of 1999's market decline
were less severe in California than in most other states.
In addition, during the first quarter of 2000, issuance of municipal bonds
nationally declined approximately 40% compared to the same period one year ago.
This supply reduction, combined with robust demand from individual investors,
helped support a rebound of municipal bond prices, including bonds from
California issuers, and especially among longer term bonds.
Finally, the fund' s performance was affected by the final maturity or early
redemption of some of its seasoned, relatively higher yielding holdings. Because
municipal bond yields were generally lower over the past six months than they
were when the portfolio was originally constructed, we were unable to maintain
the fund' s dividend distribution rate. Accordingly, we reduced the fund's
dividend during the reporting period to reflect prevailing market conditions.
What is the fund's current strategy?
We have continued to follow our strategy of seeking high current income from a
portfolio of municipal bonds from California issuers. To that end, we have
gradually been reducing our defensive holdings, including pre-refunded bonds and
securities that are two to three years away from their redemption dates. We have
redeployed those assets to longer term, relatively current higher yielding
securities with what we believe to be better income characteristics.
Despite these changes, the fund's credit quality remains strong with an average
single-A rating. We have also made few changes to our duration management
strategy, currently choosing to maintain an average duration in the 10-year
range.
April 12, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
BASED UPON NET ASSET VALUE PER SHARE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-CALIFORNIA
RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
(2) 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.
The Fund
<TABLE>
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STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.1% Amount ($) Value ($)
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CALIFORNIA--91.1%
Abag Financial Authority For Nonprofit Corps, MFHR
(Central Park Apartments) 5.60%, 7/1/2038 815,000 767,290
Bakersfield Central District Development Agency,
Tax Allocation Revenue
(Downtown Bakersfield Redevelopment)
6.625%, 4/1/2015 (Prerefunded 4/1/2003) 1,000,000 (a) 1,078,720
California 6.742%, 12/1/2018 375,000 (b, c) 363,337
California Department Water Resources, Revenue
(Central Valley Project) 8.032%, 12/1/2026
(Prerefunded 6/1/2002) 900,000 (a), (b, c) 1,001,358
California Health Facilities Financing Authority, Revenue,
Health Facilities Financing
(Cedars-Sinai Medical Center) 6.125%, 12/1/2030 1,000,000 994,420
California Pollution Control Finance Authority:
Exempt Facilities Revenue (Mobil Oil Corp.)
5.50%, 12/1/2029 1,250,000 1,182,750
PCR 7.657%, 6/1/2014 1,000,000 (b) 1,156,700
SWDR:
(Browning Ferris Industries):
5.80%, 12/1/2016 2,000,000 1,708,060
6.75%, 9/1/2019 600,000 567,168
(Keller Canyon Landfill Co. Project) 6.875%, 11/1/2027 1,000,000 948,620
California Public Works Board, LR
(Various University of California Projects)
6.60%, 12/1/2022 (Prerefunded 12/1/2002) 800,000 (a) 859,424
California Statewide Community Development Authority, LR
6.798%, 10/1/2033 1,000,000 (b) 760,680
California Statewide Communities Development Authority, COP:
(Catholic Healthcare West) 6.50%, 7/1/2020 500,000 499,375
(The Internext Group) 5.375%, 4/1/2030 1,300,000 1,046,084
Capistrano Unified School District, Special Tax:
(Community Facilities District Number 87-1-Aliso Vieio)
8.375%, 10/1/2020 (Prerefunded 10/1/2000) 2,000,000 (a) 2,083,220
(Community Facilities District Number 98-2-Ladera)
5.75%, 9/1/2029 500,000 435,545
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2014
(Prerefunded 5/1//2004) 500,000 (a) 550,675
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
Escondido Improvement Bond, Act of 1915
(Reassessment District Number 98) 5.70%, 9/2/2026 450,000 402,160
Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue
5.75%, 1/15/2040 870,000 816,451
Fresno Health Facility, Revenue
(Holy Cross Health System Corp.) 5.625%, 12/1/2018 750,000 730,500
Palmdale Civic Authority, Revenue
(Merged Redevelopment Project Areas):
6.60%, 9/1/2034 (Prerefunded 9/1/2004) 590,000 (a) 648,670
6.60%, 9/1/2034 410,000 423,842
Redwood Empire Financing Authority, COP 6.40%, 12/1/2023 4,000,000 4,035,120
Sacramento County,
Community Facilities District Number 1, Special Tax
5.70%, 12/1/2020 750,000 670,268
San Diego County, COP:
5.70%, 2/1/2028 1,000,000 892,760
(Burnham Institute) 6.25%, 9/1/9029. 1,000,000 982,120
San Joaquin Hills Transportation Corridor Agency,
Toll Road Revenue
6.75%, 1/1/2032 (Prerefunded 1/1/2003) 1,000,000 (a) 1,078,030
San Jose, MFHR
7.821%, 4/1/2012 2,882,500 (b, c) 2,987,135
Santa Cruz County Public Financing Authority,
Tax Allocation Revenue
6.20%, 9/1/2023 2,000,000 2,039,220
Torrance Redevelopment Agency, Tax Allocation Revenue
5.625%, 9/1/2028 500,000 439,505
Turlock Health Facility, COP (Emanuel Medical Center)
5.75%, 10/15/2023 2,500,000 2,162,450
Valley Health System, HR, (Improvement Project)
6.50%, 4/15/2025 2,000,000 1,802,020
U.S. RELATED--7.0%
Commonwealth of Puerto Rico Highway and
Transportation Authority,
Transportation Revenue, 6.26%, 7/1/2038 1,000,000 (b, c) 759,060
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED (CONTINUED)
Commonwealth of Puerto Rico
Infrastructure Financing Authority,
Special Tax Revenue, 6.285%, 7/1/2015 1,000,000 (b, c) 918,420
Guam Power Authority, Revenue 6.75%, 10/1/2024
(Prerefunded 10/1/2004) 1,000,000 (a) 1,099,580
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TOTAL INVESTMENTS (cost $39,950,855) 98.1% 38,890,737
CASH AND RECEIVABLES (NET) 1.9% 758,564
NET ASSETS 100.0% 39,649,301
</TABLE>
Summary of Abbreviations
COP Certificate of Participation
HR Hospital Revenue
LR Lease Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SWDR Solid Waste Disposal Revenue
<TABLE>
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Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 31.2
AA Aa AA 4.4
A A A 12.5
BBB Baa BBB 35.7
BB Ba BB 8.3
Not Rated(d) Not Rated(d) Not Rated(d) 7.9
100.0
(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 BUYERS. AT MARCH 31, 2000,
THESE SECURITIES AMOUNTED TO $6,029,310 OR 15.2% OF NET ASSETS.
(D) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 39,950,855 38,890,737
Interest receivable 903,886
Prepaid expenses 9,937
39,804,560
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 28,404
Cash overdraft due to Custodian 85,577
Accrued expenses 41,278
155,259
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NET ASSETS ($) 39,649,301
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 42,301,357
Accumulated undistributed investment income--net 84,436
Accumulated net realized gain (loss) on investments (1,676,374)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (1,060,118)
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NET ASSETS ($) 39,649,301
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SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized) 4,572,972
NET ASSET VALUE per share ($) 8.67
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 1,316,346
EXPENSES:
Management fee--Note 3(a) 138,224
Directors' fees and expenses--Note 3(c) 21,036
Shareholders' reports 16,144
Professional fees 13,646
Shareholder servicing costs--Note 3(b) 11,295
Registration fees 4,958
Custodian fees--Note 3(b) 1,679
Miscellaneous 4,884
TOTAL EXPENSES 211,866
INVESTMENT INCOME--NET 1,104,480
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (31,351)
Net unrealized appreciation (depreciation) on investments (1,244,331)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (1,275,682)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (171,202)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000 Year Ended
(Unaudited) September 30, 1999
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OPERATIONS ($):
Investment income--net 1,104,480 2,197,147
Net realized gain (loss) on investments (31,351) 212,824
Net unrealized appreciation (depreciation)
on investments (1,244,331) (3,469,414)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (171,202) (1,059,443)
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (1,234,574) (2,568,624)
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CAPITAL STOCK TRANSACTIONS ($):
DIVIDENDS REINVESTED--NOTE 1(c) 24,026 273,386
TOTAL INCREASE (DECREASE) IN NET ASSETS (1,381,750) (3,354,681)
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NET ASSETS ($):
Beginning of Period 41,031,051 44,385,732
END OF PERIOD 39,649,301 41,031,051
Undistributed investment income--net 84,436 214,530
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CAPITAL SHARE TRANSACTIONS (SHARES):
INCREASE IN SHARES OUTSTANDING AS A
RESULT OF DIVIDENDS RE 2,724 28,556
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements and market price data for the fund's shares.
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Six Months Ended
March 31, 2000 Year Ended September 30,
-----------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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PER SHARE DATA ($):
Net asset value,
beginning of period 8.98 9.77 9.71 9.52 9.21 8.98
Investment Operations:
Investment income--net .24 .48 .52 .53 .70 .52
Net realized and unrealized
gain (loss) on investments (.28) (.71) .12 .23 .10 .30
Total from Investment Operations (.04) (.23) .64 .76 .80 .82
Distributions:
Dividends from
investment income--net (.27) (.56) (.58) (.57) (.49) (.54)
Dividends from net realized gain
on investments -- -- -- -- -- (.05)
Total Distributions (.27) (.56) (.58) (.57) (.49) (.59)
Net asset value, end of period 8.67 8.98 9.77 9.71 9.52 9.21
Market value, end of period 7 9_16 9 5_8 10 7_16 10 1_4 8 1_4 8 3_16
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TOTAL RETURN (%)(A) (37.48)(b) (2.21) 7.98 32.14 6.86 8.12
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.07(b) 1.02 1.00 .98 1.06 1.06
Ratio of net investment income
to average net assets 5.58(b) 5.09 5.34 5.57 7.53 5.95
Portfolio Turnover Rate 8.75(c) 25.65 19.28 26.38 3.30 13.80
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Net Assets,
end of period ($ x 1,000) 39,649 41,031 44,386 43,838 42,847 41,152
(A) CALCULATED BASED ON MARKET VALUE.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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"), which is a wholly-owned
subsidiary of Mellon Financial Corporation.
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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
On March 30, 2000, the Board of Directors declared a cash dividend of $.041 per
share from investment income-net, payable on April 28, 2000 to shareholders of
record as of the close of business on April 13, 2000.
(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 $1,644,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1999. If not
applied, $422,000 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, 2000, 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,
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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, 2000.
(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, 2000, the fund was charged $11,321 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, 2000, the fund was
charged $1,679 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, 2000, amounted to
$3,377,446 and $3,392,405, respectively.
At March 31, 2000, accumulated net unrealized depreciation on investments was
$1,060,118, consisting of $1,094,881 gross unrealized appreciation and
$2,154,999 gross unrealized depreciation.
At March 31 2000, 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
Stephen E. Canter
Vice President
Mark N. Jacobs
Vice President and Treasurer
Joseph Connolly
Executive Vice President
Paul Disdier
Secretary
Michael A. Rosenberg
Assistant Secretary
Steven F. Newman
Assistant Secretary
Robert R. Mullery
Assistant Treasurer
Gregory S. Gruber
PORTFOLIO MANAGERS
Joseph P. Darcy
A. Paul Disdier
PORTFOLIO MANAGERS (CONTINUED)
Douglas J. Gaylor
Joseph A. Irace
Colleen A. Meehan
Richard J. Moynihan
W. Michael Petty
Jill C. Schaffro
Scott Sprauer
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, 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.
The Fund
For More Information
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
Mellon Bank, N.A.
85 Challenger Road
Ridgefield Park, NJ 07660
(c) 2000 Dreyfus Service Corporation 426SA003
