New York
Municipal
Income, Inc.
Annual Report
September 30, 1995
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus New York
Municipal Income, Inc. For its annual reporting period ended September 30,
1995, your Fund produced a total return of 8.54%, based on net asset value.*
Income dividends, exempt from Federal, New York State and New York City
personal income taxes, of $.60 per share were paid.** This is equivalent to a
tax-free distribution rate per share of 6.19%, comfortably in excess of the
inflation rate of 2.54% as measured by the Consumer Price Index for the same
period.
THE ECONOMY
The Federal Reserve Board relaxed its policy of monetary restraint in
July of 1995 when it lowered the Fed Funds rate on July 6th. This reduction
ended the upward pressure on interest rates that had begun in February of
1994. Despite the monetary restraint that existed, long-term rates began
their decline early in the year. The Fed's policy was based on concern about
inflation, given the strong economic news then prevailing. But by July these
same reports indicated a significant weakening trend in the economy. The July
decrease in the Fed Funds rate signaled that economic growth issues
outweighed, for a time, the Fed's fear of inflation.
The economic reports indicated lagging home and auto sales and a decline
in new home construction from earlier in the year. Furthermore, rising
business inventories (a frequent harbinger of a business slowdown) and
weakening retail sales lent additional credibility to the case for easier
credit conditions. By midyear, jobless claims were also on the rise as the
trend of corporate cost cutting, and layoffs in particular, continued. After
the easing of the Fed Funds in the early summer, until recently, economic
signals were mixed and inflationary expectations remained subdued.
Accordingly, interest rates stabilized.
Recently, however, economic strength has been reflected in some of the
indicators. Inflation is moderate, but various sectors of the economy such as
consumer spending and housing appear to be picking up. The stronger numbers
may forestall any immediate easing by the Federal Reserve Board.
Nevertheless, one should not rule out the possibility of another Fed move
before year-end.
A word about inflation: Despite strong economic growth at the beginning
of the reporting period, inflation remained in check. We believe a
continuation of this moderating trend for prices appears likely, particularly
if the economy remains sluggish. Easing inflation often results in falling
interest rates. Declining interest rates, often a corollary to slow business
conditions, generally cause bond prices to rise. Although we strive to
maintain a high level of current tax exempt income for the Fund, we also are
concerned with credit quality, so we are mindful of the potential erosion in
bond quality if the economy slips back into a recession. As you know, we
manage portfolios with a long-term perspective, aware that market conditions
can change rapidly.
MARKET ENVIRONMENT
The municipal bond market, buffeted by six interest rate hikes by the
Federal Reserve Board in 1994, recovered strongly in 1995. Weaker than
expected sales figures in December 1994 tumbled rates and this decline
persisted throughout the remainder of the reporting period. This summer's
rate cut confirmed what declining long-term interest rates had indicated all
year: Business conditions were weaker than monetary policy makers thought. If
economic conditions remain sluggish, and Congress is able to arrive at an
acceptable budget accord, we believe further Fed easing is likely. In our
view, this would create a favorable environment for bond markets in general.
We are certainly pleased and encouraged by the year-to-date performance in
the bond market and by the Fund; however, we are wary that this bond market
strength may be counting too much on continued low inflation. We are alert to
the stimulating effect of easing monetary policy, and are watchful for any
signs of rekindling inflation.
While the municipal market and the Fund have performed well, results for
municipal securities have been trailing the other
fixed income markets. The prospect of tax reform appears to be limiting the
enthusiasm for tax exempt securities. Since April, when serious tax reform
proposals began to surface, the municipal rally has lagged, resulting in an
increase in municipal yields as a percentage of comparable
taxable bond yields. Today, long-term municipal bonds are yielding nearly 90%
of U.S. Treasuries, which is a greater yield ratio than existed before the
onset of talk about tax reform. While it could be years before any actual
change in the tax code is adopted, the market's reaction so early in the
proposal cycle suggests that the ultimate legislation, if any, may have a
less radical effect on the market than feared.
THE PORTFOLIO
As we have discussed in previous letters, the Fund seeks to provide high
current tax free income. That is why our portfolio is currently composed
primarily of higher coupon bonds and few discounts. This type of structure
can lessen the downside in a weak market, but will not outperform in a
rapidly rising market. Always mindful of call risk, we endeavor to capture
the gains and extend the portfolio when we deem it appropriate to do so. In
the current market environment, it is to be expected that the reinvestment
rate will be lower than the retired paper.
New York State continues to struggle with a lackluster economy and the
need to maintain jobs. In its attempt to encourage business investment, both
the State and New York City are focusing on reductions in regressive taxes
and a more streamlined government. Although not in final form, it is becoming
apparent that states, such as New York, will have heavy burdens imposed on
them if the proposed changes in Medicare and Federal reimbursements are
enacted, and will need to be much more efficient in the management of their
cash flows.
The issuance of new tax-exempt bonds continues at a lackluster pace
while, at the same time, a substantial number of outstanding bonds are being
retired. Therefore, our strategies are influenced and their implementations
limited, at times, by the fact that there exists a limited inventory of
securities from which to choose.
The Fund's goal - to maximize current income exempt from Federal, New
York State and New York City personal income taxes to the extent consistent
with the preservation of capital - continues to guide our portfolio
management decisions. The high level of volatility exhibited by the market in
recent years highlights the need to maintain a disciplined, long-term focus.
Solid market performance thus far in 1995 has rewarded the patient investor.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope they are informative. Please
know that we appreciate greatly your continued confidence in the Fund.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Capital gains, if any, may be subject to Federal,
State and Local taxes.
Distribution rate per share is based upon dividends per share paid
from net investment income during the period, divided by the market price per
share at the end of the period, adjusted for capital gain distributions.
Source: Lipper Analytical Services, Inc. The Consumer Price Index is
published by the Bureau of Labor Statistics and is a widely accepted measure
of inflation in the United States.
<TABLE>
<CAPTION>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
SELECTED INFORMATION SEPTEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
Market Price per share September 30, 1995........................... $ 9 11/16
Shares Outstanding September 30, 1995............................... 3,732,722
American Stock Exchange Ticker Symbol............................... DNM
</TABLE>
<TABLE>
<CAPTION>
MARKET PRICE (AMERICAN STOCK EXCHANGE)
FISCAL YEAR ENDED SEPTEMBER 30, 1995
_________________________________________________________________________
QUARTER QUARTER QUARTER QUARTER
ENDED ENDED ENDED ENDED
DECEMBER 31, 1994 MARCH 31, 1995 JUNE 30, 1995 SEPTEMBER 30, 1995
_________________ ______________ _______________ _________________
<S> <C> <C> <C> <C>
High $9 1\4 $10 $9 7\8 $10
Low 8 1\2 8 7\8 9 1\8 9 3\8
Close 8 7\8 9 3\8 9 13\16 9 11\16
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE GAIN based on change in Market Price*
<S> <C> <C>
October 21, 1988 (commencement of operations) through September 30, 1995.............. 49.77%
October 1, 1990 through September 30, 1995............................................ 43.63
October 1, 1994 through September 30, 1995............................................ 14.74
January 1, 1995 through September 30, 1995............................................ 14.36
April 1, 1995 through September 30, 1995.............................................. 6.57
July 1, 1995 through September 30, 1995............................................... .25
NET ASSET VALUE PER SHARE
October 21, 1988 (commencement of operations)........... $9.21
September 30, 1994...................................... 9.92
December 31, 1994....................................... 9.65
March 31, 1995.......................................... 9.96
June 30, 1995........................................... 10.05
September 30, 1995...................................... 10.10
PERCENTAGE GAIN based on change in Net Asset Value*
October 21, 1988 (commencement of operations) through September 30, 1995.............. 69.52%
October 1, 1990 through September 30, 1995............................................ 50.56
October 1, 1994 through September 30, 1995............................................ 8.54
January 1, 1995 through September 30, 1995............................................ 9.66
April 1, 1995 through September 30, 1995.............................................. 4.59
July 1, 1995 through September 30, 1995............................................... 2.04
*With dividends reinvested.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
___________ __________
<S> <C> <C>
NEW YORK-74.3%
Albany Industrial Development Agency, LR (New York State Assembly Building Project)
7.75%, 1/1/2010......................................................... $1,225,000 $1,342,931
Babylon Industrial Development Agency, RRR (Ogden Martin System Babylon, Inc.)
8.50%, 1/1/2019......................................................... 1,480,000 1,673,406
New York City,
Refunding 7.25%, 8/15/2007.............................................. 1,500,000 1,657,500
New York City Housing Development Corp., Mortgage Revenue
(South Williamsburg Cooperative) 7.90%, 2/1/2023 (Insured; SONYMA)...... 730,000 772,245
New York City Industrial Development Agency:
Civic Facility Revenue (YMCA of Greater New York Project) 8%, 8/1/2016.. 1,000,000 1,071,930
Special Facility Revenue (American Airlines Inc. Project):
8%, 7/1/2020.......................................................... 1,325,000 1,417,485
6.90%, 8/1/2024....................................................... 500,000 524,050
New York City Municipal Water Finance Authority, Water and Sewer System Revenue
7.75%, 6/15/2020 (Prerefunded 6/15/2001) (a)............................ 1,250,000 1,470,475
New York State Dormitory Authority, Revenue:
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014......... 1,000,000 1,170,390
Refunding (City University) 8.20%, 7/1/2013............................. 1,000,000 1,115,510
New York State Energy Research and Development Authority, PCR:
(Central Hudson Gas and Electric) 8.375%, 12/1/2028..................... 1,000,000 1,119,250
(Rochester Gas and Electric Co.) 8.375%, 12/1/2028...................... 1,500,000 1,678,875
New York State Housing Finance Agency, Revenue,
Refunding (Health Facilities - New York City) 8%, 11/1/2008............. 1,000,000 1,130,000
New York State Medical Care Facilities Finance Agency, Revenue,
Refunding (Nyack Hospital Project) 8.30%, 11/1/2013..................... 2,000,000 2,226,420
New York State Mortgage Agency, Revenue:
8.375%, 4/1/2018........................................................ 455,000 484,793
Homeowner Mortgage:
8.125%, 10/1/2017..................................................... 1,375,000 1,452,523
6.45%, 10/1/2020...................................................... 2,840,000 2,900,464
New York State Power Authority, General Purpose Revenue,
Refunding 6.50%, 1/1/2019............................................... 1,000,000 1,052,660
New York State Urban Development Corp., Revenue (Correctional Facilities)
8.125%, 1/1/2014 (Prerefunded 1/1/1998) (a)............................. 1,500,000 1,655,685
Onondaga County Industrial Development Agency, IDR (Weyerhaeuser Project)
9%, 10/1/2007........................................................... 1,200,000 1,509,660
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
___________ __________
U.S. RELATED-25.7%
Commonwealth of Puerto Rico 7.955%, 7/1/2018 (Insured; AMBAC) (b,c)......... $1,500,000 $1,449,375
Commonwealth of Puerto Rico Aqueduct and Sewer Authority,
Revenue 7.90%, 7/1/2007................................................. 1,000,000 1,114,730
Commonwealth of Puerto Rico Highway Authority, Highway Revenue:
8.125%, 7/1/2013 (Prerefunded 7/1/1998) (a)............................. 1,000,000 1,121,370
Refunding 8%, 7/1/2003 (Prerefunded 7/1/1998) (a)....................... 1,500,000 1,677,225
Commonwealth of Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue
7.90% 7/1/2007.......................................................... 1,000,000 1,114,730
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
8.10% 10/1/2005......................................................... 1,400,000 1,539,734
Virgin Islands Territory, Special Tax Revenue (Hugo Insurance Claims Program)
7.75% 10/1/2006......................................................... 1,335,000 1,460,863
_________
TOTAL INVESTMENTS
(cost $34,270,465)...................................................... $36,904,279
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation PCR Pollution Control Revenue
IDR Industrial Development Revenue RRR Resources Recovery Revenue
LR Lease Revenue SONYMA State of New York Mortgage Agency
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
______ _______ _________________ __________________
<S> <C> <C> <C>
AAA Aaa AAA 20.0%
AA Aa AA 18.1
A A A 14.6
BBB Baa BBB 36.8
Not Rated (e) Not Rated (e) Not Rated (e) 10.5
____
100.0%
=======
</TABLE>
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) Residual interest security - the interest rate is subject to change
periodically.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September
30, 1995, this security amounted to $1,449,375 or 3.8% 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 or Standard &
Poor's, have been determined by the Fund's Manager to be of comparable
quality to those rated securities in which the Fund may invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $34,270,465)-see statement...................................... $36,904,279
Cash.................................................................... 4,400
Interest receivable..................................................... 882,076
Prepaid expenses........................................................ 3,325
___________
37,794,080
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $21,749
Accrued expenses........................................................ 57,150 78,899
_______ ___________
NET ASSETS ................................................................ $37,715,181
=============
REPRESENTED BY:
Paid-in capital......................................................... $34,585,155
Accumulated undistributed investment income-net......................... 306,414
Accumulated net realized gain on investments............................ 189,798
Accumulated net unrealized appreciation on investments-Note 3........... 2,633,814
___________
NET ASSETS at value applicable to 3,732,722 shares outstanding
(110 million shares of $.001 par value Common Stock authorized)......... $37,715,181
=============
NET ASSET VALUE, per share
($37,715,181 / 3,732,722 shares)........................................ $10.10
=========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $2,675,527
EXPENSES:
Management fee-Note 2(a).............................................. $258,757
Directors' fees and expenses-Note 2(c)................................ 32,915
Shareholder servicing costs-Note 2(b)................................. 25,792
Auditing fees......................................................... 23,673
Shareholders' reports................................................. 18,476
Legal fees............................................................ 10,850
Registration fees..................................................... 5,000
Custodian fees........................................................ 4,039
Miscellaneous......................................................... 8,391
_______
TOTAL EXPENSES.................................................... 387,893
__________
INVESTMENT INCOME-NET............................................. 2,287,634
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $189,988
Net unrealized appreciation on investments.............................. 465,712
_______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 655,700
__________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 2,943,334
============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30,
______________________
1994 1995
________ ________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $2,287,749 $2,287,634
Net realized gain on investments........................................ 26,312 189,988
Net unrealized appreciation (depreciation) on investments for the year.. (2,740,761) 465,712
__________ __________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (426,700) 2,943,334
__________ __________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (2,255,735) (2,239,633)
Net realized gain on investments........................................ (48,137) (26,502)
__________ __________
TOTAL DIVIDENDS....................................................... (2,303,872) (2,266,135)
__________ __________
CAPITAL STOCK TRANSACTIONS;
Dividends reinvested-Note 1(c).......................................... 225,841 _ _
__________ __________
TOTAL INCREASE (DECREASE) IN NET ASSETS............................... (2,504,731) 677,199
NET ASSETS:
Beginning of year....................................................... 39,542,713 37,037,982
__________ ___________
End of year (including undistributed investment income-net:
$258,413 in 1994 and $306,414 in 1995)................................ $37,037,982 $37,715,181
__________ ___________
SHARES SHARES
__________ __________
CAPITAL SHARE TRANSACTIONS;
INCREASE IN SHARES OUTSTANDING AS A RESULT OF DIVIDENDS REINVESTED...... 20,533 _ _
========== ===========
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK 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 year indicated. This information
has been derived from the financial statements and market price data for the
Fund's shares.
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
______________________________
PER SHARE DATA: 1991 1992 1993 1994 1995
____ ____ ____ _____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $9.20 $9.67 $10.13 $10.65 $ 9.92
____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net........................ .63 .62 .62 .61 .61
Net realized and unrealized gain (loss)
on investments............................. .48 .47 .53 (.72) .18
____ ____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS........... 1.11 1.09 1.15 (.11) .79
____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net......... (.63) (.61) (.58) (.61) (.60)
Dividends from net realized gain on investments (.01) (.02) (.05) (.01) (.01)
____ ____ ____ ____ ____
TOTAL DISTRIBUTIONS........................ (.64) (.63) (.63) (.62) (.61)
____ ____ ____ ____ ____
Net asset value, end of year................. $9.67 $10.13 $10.65 $9.92 $10.10
===== ======= ======= ======= =======
Market Value, end of year.................... $ 9 5\8 $10 1\8 $11 5\8 $9 $ 9 11\16
===== ======= ======= ======= =======
TOTAL INVESTMENT RETURN*......................... 11.33% 12.09% 21.99% (17.78%) 14.74%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.10% 1.11% 1.06% 1.02% 1.05%
Ratio of net investment income to
average net assets......................... 6.70% 6.36% 6.06% 5.98% 6.19%
Portfolio Turnover Rate...................... 15.53% 15.23% 5.01% 5.94% 12.55%
Net Assets, end of year (000's Omitted)...... $34,860 $36,967 $39,543 $37,038 $37,715
* Calculated based on market value.
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified closed-end management investment company. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in municipal debt securities
(excluding options and financial futures on municipal and U.S. treasury
securities) are valued on the last business day of each week and month by an
independent pricing service ("Service") approved by the Board of Directors.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by
the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. Options and financial futures on
municipal and U.S. treasury securities are valued at the last sales price on
the securities exchange on which such securities are primarily traded or at
the last sales price on the national securities market on the last business
day of each week and month. Investments not listed on an exchange or the
national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are declared and paid at least
annually. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
For shareholders who elect to receive their distributions in additional
shares of the Fund, in lieu of cash, such distributions will be reinvested at
the lower of the market price or net asset value per share (but not less than
95% of the market price) as defined in the dividend reinvestment plan.
On September 28, 1995, the Board of Directors declared a cash dividend of
$.05 per share from investment income-net, payable on October 26, 1995 to
shareholders of record as of the close of business on October 12, 1995.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
(D) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED):
NET INCREASE
NET REALIZED & (DECREASE)
UNREALIZED IN NET ASSETS
TOTAL INVESTMENT NET INVESTMENT GAIN (LOSS) RESULTING FROM
INCOME INCOME ON INVESTMENTS OPERATIONS
__________________ __________________ __________________ __________________
(000'S) PER (000'S) PER (000'S) PER (000'S) PER
QUARTER ENDED OMITTED SHARE OMITTED SHARE OMITTED SHARE OMITTED SHARE
________ ________ ________ ________ ________ ________ ________ ________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
December 31, 1993 $ 679 $ 0.18 $ 575 $ 0.16 $(191) $(0.05) $384 $ 0.11
March 31, 1994.......... 675 0.18 573 0.15 (2,063) (0.55) (1,490) (0.40)
June 30, 1994.... 676 0.18 576 0.15 (188) (0.05) 388 0.10
September 30, 1994... 646 0.17 563 0.15 (272) (0.07) 291 0.08
________ ________ ________ ________ ________ ________ ________ ________
TOTAL...... $ 2,676 $ 0.71 $ 2,287 $ 0.61 $ (2,714) $(0.72) $(427) $ (0.11)
======== ======== ======== ======== ======== ======== ======== ========
December 31, 1994....... $ 673 $ 0.18 $576 $ 0.16 $(999) $(0.27) $(423) $(0.11)
March 31, 1995....... 653 0.18 563 0.15 1,148 0.31 1,711 0.46
June 30, 1995.. 661 0.17 562 0.15 339 0.09 901 0.24
September 30, 1995....... 689 0.18 587 0.15 167 0.05 754 0.20
________ ________ ________ ________ ________ ________ ________ ________
TOTAL............... $ 2,676 $ 0.71 $ 2,288 $ 0.61 $ 655 $ 0.18 $ 2,943 $ 0.79
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .70 of 1% of the average
weekly value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings, brokerage and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. There was no expense
reimbursement for the year ended September 30, 1995.
(B) The Fund compensates Mellon Bank, N.A. (the parent of the Manager)
under a Transfer Agency Agreement for providing transfer agency services for
the Fund. Such compensation amounted to $25,792 for the year ended September
30, 1995.
(C) Prior to February 1, 1995, certain officers, of the Fund were
"affiliated persons," as defined in the Act, of the Manager and/or Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager. Each director
who is not an "affiliated person" receives an annual fee of $2,500 and an
attendance fee of $250 per meeting. The Chairman of the Board receives an
additional 25% of such compensation.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $8,370,393 and $8,255,170, respectively, for the year ended
September 30, 1995, and consisted entirely of long-term and short-term
municipal investments.
At September 30, 1995, accumulated net unrealized appreciation on
investments was $2,633,814, consisting of $2,706,939 gross unrealized
appreciation and $73,125 gross unrealized depreciation.
At September 30, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Municipal Income, Inc., including the statement of
investments, as of September 30, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 1995 by correspondence with the custodian
. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New York Municipal Income, Inc. at September 30, 1995,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst & Young LLP logo]
New York, New York
November 2, 1995
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
DIVIDEND REINVESTMENT PLAN (UNAUDITED)
The Fund generally distributes net investment income monthly. From and
after any issuance of Preferred Stock, monthly distributions to the holders
of the Common Stock (the "Common Shareholders") will consist of all net
investment income of the Fund remaining after the payment of dividends on
such Preferred Stock. Any net realized short-term capital gains and any net
realized long-term capital gains will be distributed at least annually.
Net realized short- or long-term capital gains, if any, will be
distributed to Common Shareholders at least once a year to the extent not
necessary to pay dividends on or meet the liquidation preference of shares of
any Preferred Stock. While there are any shares of Preferred Stock
outstanding, the Fund may not declare any cash dividend or other distribution
on its Common Stock, unless at the time of such declaration, (i) all accrued
Preferred Stock dividends have been paid and (ii) the net asset value of the
Fund's portfolio (determined after deducting the amount of such dividend or
other distribution) is at least 200% of the liquidation value of the
outstanding Preferred Stock (expected to equal the original purchase price
per share plus any accrued and unpaid dividends thereon). This limitation on
the Fund's ability to make distributions on its Common Stock could under
certain circumstances impair the ability of the Fund to maintain its
qualification for taxation as a regulated investment company.
Under the Fund's Dividend Reinvestment Plan (the "Plan"), a Common
Shareholder who has Fund shares registered in his name will have all
dividends and distributions reinvested automatically by Mellon Bank, N.A., as
Plan agent (the "Agent"), in additional shares of the Fund at the lower of
prevailing market price or net asset value (but not less than 95% of market
value at the time of valuation) unless such shareholder elects to receive
cash as provided below. If market price is equal to or exceeds net asset
value, shares will be issued at net asset value. If net asset value exceeds
market price or if a cash dividend only is declared, the Agent, as agent for
the Plan participants, will buy Fund shares in the open market. A Plan
participant is not relieved of any income tax that may be payable on such
dividends or distributions.
A Common Shareholder who owns Fund shares registered in nominee name
through his broker/dealer (i.e., in "street name") may not participate in the
Plan, but may elect to have cash dividends and distributions reinvested by
his broker/dealer in additional shares of the Fund if such service is
provided by the broker/dealer; otherwise such dividends and distributions
will be treated like any other cash dividend or distribution.
A Common Shareholder who has Fund shares registered in his name may elect
to withdraw from the Plan at any time for a $5.00 fee and thereby elect to
receive cash in lieu of shares of the Fund. Changes in elections must be in
writing, sent to Mellon Bank, N.A., P.O. Box 750, Pittsburgh, Pennsylvania
15230, Attention: Dividend Reinvestment, should include the shareholder's
name and address as they appear on the Agent's records and will be effective
only if received more than ten business days prior to the record date for any
distribution.
The Agent maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in the account. Shares in the
account of each Plan participant will be held by the Agent in
non-certificated form in the name of the participant, and each such
participant's proxy will include those shares purchased pursuant to the Plan.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
DIVIDEND REINVESTMENT PLAN (UNAUDITED) (CONTINUED)
The Fund pays the Agent's fee for reinvestment of dividends and
distributions. Plan participants pay a pro rata share of
brokerage commissions incurred with respect to the Agent's open market
purchases in connection with the reinvestment of dividends or distributions.
The Fund reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to notice of the change sent to
Plan participants at least 90 days before the record date for such dividend
or distribution. The Plan also may be amended or terminated by the Agent on
at least 90 days' written notice to Plan participants.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended September 30, 1995:
-all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are New
York residents, New York State and New York City personal income taxes), and
-the $.0071 per share paid by the Fund on December 28, 1994 represents a
long-term capital gain distribution.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
OFFICERS AND DIRECTORS
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
200 Park Avenue
New York, NY 10166
DIRECTORS
Joseph S. DiMartino, Chairman
Lucy Wilson Benson
David W. Burke
Martin D. Fife
Whitney I. Gerard
Robert R. Glauber
Arthur A. Hartman
George L. Perry
Paul Wolfowitz
OFFICERS
President and Treasurer
Marie E. Connolly
Vice President and Secretary
John E. Pelletier
Vice President and Assistant Treasurer
Frederick C. Dey
Vice President and Assistant Secretary
Eric B. Fischman
Assistant Treasurer
John J. Pyburn
Assistant Treasurer
Joseph F. Tower, III
Assistant Secretary
Ruth Leibert
PORTFOLIO MANAGERS
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
L. Lawrence Troutman
Samuel J. Weinstock
Monica S. Wieboldt
MANAGER
The Dreyfus Corporation
CUSTODIAN
The Bank of New York
COUNSEL
Stroock & Stroock & Lavan
TRANSFER AGENT,
DIVIDEND DISTRIBUTION AGENT
AND REGISTRAR
Mellon Bank, N.A.
STOCK EXCHANGE LISTING
AMEX Symbol: DNM
INITIAL SEC EFFECTIVE DATE
10/21/88
The Net Asset Value appears in the
following publications: Barron's,
Closed-End Bond Funds section
under the heading "Municipal
Bond Funds" every Monday; Wall
Street Journal, Mutual Funds
section under the heading
"Closed-End Bond Funds" every
Monday; New York Times,
Business section under the
heading "Closed-End Bond Funds"
every Monday.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase shares of its
common stock in the open market when it can do so at prices below the then
current net asset value per share.
[Dreyfus lion "d" logo]
DREYFUS NEW YORK MUNICIPAL
INCOME, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT,
DIVIDEND DISTRIBUTION AGENT
AND REGISTRAR
Mellon Bank, N.A.
85 Challenger Road
Ridgefield Park, NJ 07660
Printed in U.S.A. 858AR959
[Dreyfus logo]
