Dreyfus
New York
Municipal
Income, Inc.
Annual Report
September 30, 1996
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,
1996, your portfolio produced a total return, including bond price changes,
interest income and capital gain distributions, of 4.61% 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 to shareholders.**
This is equivalent to a tax-free distribution rate per share of 5.82%.***
THE ECONOMY
Low inflation in the face of ongoing strong growth in new jobs and low
unemployment remained the big economic story over the reporting period. On
September 24, the Federal Reserve Board's Open Market Committee ("the Fed")
again decided against raising interest rates. Despite what appeared to be a
sharp split within the Fed, the Central Bank kept the Fed Funds rate at
5.25%. (A news leak reported that 8 of the 12 presidents of the regional
Federal Reserve Banks were concerned about inflation and leaning toward an
increase in rates.)
The potential resurgence in inflation has been a primary concern of the
Fed as the economic expansion continues. Yet inflation has remained subdued.
The Consumer Price Index has risen just 2.9% over the past twelve months.
Furthermore, indications of inflation at crude, intermediate and finished
goods levels, as measured by the Producer Price Index, remained well-behaved.
There appear to be few signs of inflation in the production pipeline.
The past inverse relationship between unemployment and inflation has so
far not prevailed during this economic expansion. Most recently, the
unemployment rate fell to 5.1%, its lowest level in seven years. Job growth
has continued to be robust. Yet despite signs of a tightening labor market,
wage gains, considered by many economists to be a harbinger of future
inflation, remained modest, as have virtually all measures of inflation.
Buoyed by such good news, consumers remained confident. The Conference
Board's Consumer Confidence Index has risen since the beginning of the year
and was near a six-year high by the end of the reporting period. Yet, there
were some signs that consumer spending was moderating from its strong pace in
the first half of the year. Retail sales remained subdued all summer.
Consumer borrowing rose over the reporting period, continuing the three-year
trend of steady increases in credit.
Industrial production has risen consistently since February and
businesses showed some signs of inventory accumulation by late summer.
Corporate pricing power still seems to be in check. In a survey of member
corporations released in mid-September, the National Federation of
Independent Business reported that only 20% of its respondents planned to
increase prices in coming months.
Despite all these favorable developments, we are alert for signs of
potential economic excess that could result in a resurgence in inflation.
THE MARKET
The municipal bond market, like its taxable counterparts, has been
buffeted by an unprecedented amount of price volatility during the past year.
The market continues to be preoccupied with the periodic releases of
key economic data, and this has resulted in large and dramatic swings in bond
prices and yields. At this juncture, it appears that for now the Fed will
maintain a hands-off policy toward interest rates. However, there continues
to be no clear consensus regarding the future direction of the economy or its
strength, or of inflation, as evidenced by a fairly equal division of opinion
among economists. The prevailing uncertain state of affairs has taken its
toll on the psyche (not to mention the profits) of many market traders as a
sharp decline in prices one day is quickly followed the next by a reverse
move and vice-versa.
THE PORTFOLIO
The structure of the portfolio has not changed significantly since our
last report. This portfolio has been managed to provide income and its
defensive posture buffered it, at least in part, from the volatility that the
market experienced earlier this year. The net asset value per share as of
September 30, 1996 was $9.90, a drop of approximately $.15 from the September
30, 1995 net asset value, adjusted for capital gain distributions. The market
price per share increased from $9.6875 to $10.25 for the same period.
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
and The Dreyfus Corporation.
Very truly yours,
{Richard J. Moynihan}
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 15, 1996
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.
*** 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.
<TABLE>
<CAPTION>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
SELECTED INFORMATION SEPTEMBER 30, 1996 (UNAUDITED)
<S> <C>
Market Price per share September 30, 1996........................... $10 1\4
Shares Outstanding September 30, 1996............................... 3,751,715
American Stock Exchange Ticker Symbol............................... DNM
</TABLE>
<TABLE>
<CAPTION>
MARKET PRICE (AMERICAN STOCK EXCHANGE)
FISCAL YEAR ENDED SEPTEMBER 30, 1996
____________________________________________________________________________________________________
QUARTER QUARTER QUARTER QUARTER
ENDED ENDED ENDED ENDED
DECEMBER 31, 1995 MARCH 31, 1996 JUNE 30, 1996 SEPTEMBER 30, 1996
___________________ ________________ ________________ ____________________
<S> <C> <C> <C> <C>
High $10 1\4 $10 5\8 $10 1\2 $10 1\4
Low 9 1\2 9 7\8 9 9\16 9 3\4
Close 10 1\8 10 3\8 9 7\8 10 1\4
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
PERCENTAGE GAIN based on change in Market Price*
October 21, 1988 (commencement of operations) through September 30, 1996.............. 69.11%
October 1, 1991 through September 30, 1996............................................ 45.67
October 1, 1995 through September 30, 1996............................................ 12.92
January 1, 1996 through September 30, 1996............................................ 5.87
April 1, 1996 through September 30, 1996.............................................. 1.83
July 1, 1996 through September 30, 1996............................................... 5.37
NET ASSET VALUE PER SHARE
October 21, 1988 (commencement of operations)........ $ 9.21
September 30, 1995................................... 10.10
December 31, 1995.................................... 10.14
March 31, 1996....................................... 9.95
June 30, 1996........................................ 9.88
September 30, 1996................................... 9.90
PERCENTAGE GAIN based on change in Net Asset Value*
October 21, 1988 (commencement of operations) through September 30, 1996.............. 77.33%
October 1, 1991 through September 30, 1996............................................ 40.05
October 1, 1995 through September 30, 1996............................................ 4.61
January 1, 1996 through September 30, 1996............................................ 2.11
April 1, 1996 through September 30, 1996.............................................. 2.55
July 1, 1996 through September 30, 1996............................................... 1.72
* With dividends reinvested.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
__________ __________
<S> <C> <C>
NEW YORK-78.7%
Albany Industrial Development Agency, LR (New York State Assembly Building Project)
7.75%, 1/1/2010......................................................... $ 1,225,000 $ 1,340,248
Babylon Industrial Development Agency, RRR (Ogden Martin System Babylon, Inc.)
8.50%, 1/1/2019 (Prerefunded 7/1/1998) (a).............................. 1,480,000 1,631,167
New York City,
Refunding 7.25%, 8/15/2007.............................................. 1,500,000 1,655,250
New York City Housing Development Corp., Mortgage Revenue
(South Williamsburg Cooperative) 7.90%, 2/1/2023 (Insured; SONYMA)...... 715,000 760,696
New York City Industrial Development Agency:
Civic Facility Revenue (YMCA of Greater New York Project) 8%, 8/1/2016.. 1,000,000 1,072,920
Special Facility Revenue (American Airlines Inc. Project):
8%, 7/1/2020.......................................................... 1,325,000 1,402,698
6.90%, 8/1/2024....................................................... 500,000 529,775
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 1,430,288
New York State Dormitory Authority, Revenue:
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014......... 1,000,000 1,166,780
Refunding (City University) 8.20%, 7/1/2013............................. 1,000,000 1,078,670
Refunding (State University Educational Facilities) 6%, 5/15/2025....... 1,000,000 977,860
New York State Energy Research and Development Authority, PCR:
(Central Hudson Gas and Electric) 8.375%, 12/1/2028..................... 1,000,000 1,090,440
(Rochester Gas and Electric Co.) 8.375%, 12/1/2028...................... 1,500,000 1,626,900
New York State Environmental Facilities Corp., SWDR (Occidental Petroleum Corp.)
5.70%, 9/1/2028......................................................... 1,600,000 1,455,760
New York State Housing Finance Agency, Revenue,
Refunding (Health Facilities-New York City)
8%, 11/1/2008 (Prerefunded 11/1/2000) (a)............................... 660,000 755,377
New York State Medical Care Facilities Finance Agency, Revenue,
Refunding (Nyack Hospital Project)
8.30%, 11/1/2013 (Prerefunded 11/1/1998) (a)............................ 2,000,000 2,193,800
New York State Mortgage Agency, Revenue:
8.375%, 4/1/2018........................................................ 455,000 473,054
Homeowner Mortgage:
6.45%, 10/1/2020...................................................... 2,665,000 2,739,034
6.40%, 4/1/2027....................................................... 1,000,000 1,018,030
New York State Power Authority, Revenue and General Purpose,
Refunding 6.50%, 1/1/2019............................................... 1,000,000 1,067,820
New York State Urban Development Corp., Revenue (Correctional Facilities)
8.125%, 1/1/2014 (Prerefunded 1/1/1998) (a)............................. 1,500,000 1,605,735
Onondaga County Industrial Development Agency, IDR (Weyerhaeuser Project)
9%, 10/1/2007........................................................... 1,200,000 1,476,504
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
___________ __________
U.S. RELATED-21.3%
Commonwealth of Puerto Rico 8.171%, 7/1/2018 (Insured; AMBAC) (b,c)......... $ 1,500,000 $ 1,507,500
Commonwealth of Puerto Rico Aqueduct and Sewer Authority,
Revenue 7.90%, 7/1/2007 (Prerefunded 7/1/1998) (a)...................... 1,000,000 1,084,340
Commonwealth of Puerto Rico Highway Authority, Highway Revenue:
8.125%, 7/1/2013 (Prerefunded 7/1/1998) (a)............................. 1,000,000 1,087,970
Refunding 8%, 7/1/2003 (Prerefunded 7/1/1998) (a)....................... 1,500,000 1,628,805
Commonwealth of Puerto Rico Infrastructure Financing Authority, Special Tax Revenue
7.90%, 7/1/2007......................................................... 1,000,000 1,078,530
Virgin Islands Territory, Special Tax Revenue (Hugo Insurance Claims Funds Program)
7.75%, 10/1/2006........................................................ 1,250,000 1,353,762
___________
TOTAL INVESTMENTS
(cost $34,345,477)...................................................... $36,289,713
=============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation RRR Resources Recovery Revenue
IDR Industrial Development Revenue SONYMA State of New York Mortgage Agency
LR Lease Revenue SWDR Solid Waste Disposal Revenue
PCR Pollution Control Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_______ _______ __________________ _______________________
<S> <C> <C> <C>
AAA Aaa AAA 29.6%
AA Aa AA 16.7
A A A 11.6
BBB Baa BBB 25.7
Not Rated (e) Not Rated (e) Not Rated (e) 16.4
________
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) Inverse floater security - the interest rate is subject to change
periodically.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in a transaction exempt from
registration, normally to a qualified institutional buyer. At September
30, 1996, this security amounted to $1,507,500 or 4.1% 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 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, 1996
<S> <C> <C>
ASSETS:.
Investments in securities, at value
(cost $34,345,477)-see statement...................................... $36,289,713
Cash.................................................................... 119,950
Interest receivable..................................................... 787,494
Prepaid expenses........................................................ 2,168
____________
37,199,325
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $24,885
Accrued expenses........................................................ 47,411 72,296
__________ ____________
NET ASSETS.................................................................. $37,127,029
============
REPRESENTED BY:
Paid-in capital......................................................... $34,772,490
Accumulated undistributed investment income-net......................... 283,791
Accumulated undistributed net realized gain on investments.............. 126,512
Accumulated net unrealized appreciation on investments-Note 4........... 1,944,236
____________
NET ASSETS at value applicable to 3,751,715 shares outstanding
(110 million shares of $.001 par value Common Stock authorized)......... $37,127,029
============
NET ASSET VALUE, per share
($37,127,029 / 3,751,715 shares)........................................ $9.90
======
See notes to financial statements.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $2,606,837
EXPENSES:
Management fee-Note 3(a).............................................. $ 261,492
Directors' fees and expenses-Note 3(c)................................ 33,567
Shareholder servicing costs-Note 3(b)................................. 24,322
Auditing fees......................................................... 23,694
Shareholders' reports................................................. 12,361
Legal fees............................................................ 9,285
Registration fees..................................................... 9,000
Custodian fees-Note 3(b).............................................. 3,721
Miscellaneous......................................................... 9,039
___________
TOTAL EXPENSES.................................................... 386,481
_______________
INVESTMENT INCOME-NET............................................. 2,220,356
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS-Note 4:
Net realized gain on investments........................................ $ 127,083
Net unrealized (depreciation) on investments............................ (689,578)
___________
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (562,495)
_______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,657,861
===============
See notes to financial statements.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30,
__________________________________
1995 1996
_____________ ____________
OPERATIONS:
Investment income-net................................................... $ 2,287,634 $ 2,220,356
Net realized gain on investments........................................ 189,988 127,083
Net unrealized appreciation (depreciation) on investments for the year.. 465,712 (689,578)
_____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 2,943,334 1,657,861
_____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (2,239,633) (2,242,979)
Net realized gain on investments........................................ (26,502) (190,369)
_____________ ____________
TOTAL DIVIDENDS....................................................... (2,266,135) (2,433,348)
_____________ ____________
CAPITAL STOCK TRANSACTIONS;
Dividends reinvested-Note 1(c).......................................... - 187,335
_____________ ____________
TOTAL INCREASE (DECREASE) IN NET ASSETS............................... 677,199 (588,152)
NET ASSETS:
Beginning of year....................................................... 37,037,982 37,715,181
_____________ ____________
End of year (including undistributed investment income-net:
$306,414 in 1995 and $283,791 in 1996)................................ $37,715,181 $37,127,029
============ =============
SHARES SHARES
_____________ ____________
CAPITAL SHARE TRANSACTIONS;
INCREASE IN SHARES OUTSTANDING AS A RESULT OF DIVIDENDS REINVESTED...... - 18,993
============ =============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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.
YEAR ENDED SEPTEMBER 30,
_____________________________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996
______ ______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 9.67 $10.13 $10.65 $ 9.92 $10.10
______ ______ _______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net........................ .62 .62 .61 .61 .59
Net realized and unrealized gain (loss)
on investments............................. .47 .53 (.72) .18 (.14)
______ ______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS........... 1.09 1.15 (.11) .79 .45
______ ______ _______ _______ _______
DISTRIBUTIONS:
Dividends from investment income-net......... (.61) (.58) (.61) (.60) (.60)
Dividends from net realized gain on investments (.02) (.05) (.01) (.01) (.05)
______ ______ _______ _______ _______
TOTAL DISTRIBUTIONS........................ (.63) (.63) (.62) (.61) (.65)
______ ______ _______ _______ _______
Net asset value, end of year................. $10.13 $10.65 $ 9.92 $10.10 $ 9.90
======= ======== ========= ======== ========
Market Value, end of year.................... $ 10 1\8 $ 11 5\8 $ 9 $ 9 11\16 $ 10 1\4
======= ======== ========= ======== ========
TOTAL INVESTMENT RETURN*......................... 12.09% 21.99% (17.78%) 14.74% 12.92%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.11% 1.06% 1.02% 1.05% 1.03%
Ratio of net investment income to average net assets 6.36% 6.06% 5.98% 6.19% 5.94%
Portfolio Turnover Rate...................... 15.23% 5.01% 5.94% 12.55% 9.59%
Net Assets, end of year (000's Omitted)...... $36,967 $39,543 $37,038 $37,715 $37,127
* Calculated based on market value.
See notes to financial statements.
</TABLE>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New York Municipal Income, Inc. (the "Fund") is registered under
the Investment Company Act of 1940 ("Act") as a non-diversified closed-end
management investment company. The Fund's investment objective is to maximize
current income exempt from Federal, New York State and New York City personal
income taxes to the extent consistent with the preservation of capital. The
Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon").
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in municipal debt securities
(excluding options and financial futures on municipal and U.S. treasury
securities) are valued on the last business day of each week and month by an
independent pricing service ("Service") approved by the Board of Directors.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by
the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. Options and financial futures on
municipal and U.S. treasury securities are valued at the last sales price on
the securities exchange on which such securities are primarily traded or at
the last sales price on the national securities market on the last business
day of each week and month. Investments not listed on an exchange or the
national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are declared and paid at least
annually. To the extent that net realized capital gain can be offset by
capital loss carryovers, 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.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
On September 30, 1996, the Board of Directors declared a cash dividend of
$.05 per share from investment income-net, payable on October 28, 1996 to
shareholders of record as of the close of business on October 14, 1996.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
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. For the period ended September 30, 1996, 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 fiscal year the aggregate expenses of the Fund,
exclusive of taxes, interest on borrowings, brokerage and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess to the extent required by state
law. There was no expense reimbursement for the year ended September 30,
1996.
(B) The Fund compensates Mellon under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for
the Fund. Such compensation amounted to $24,322 during the year ended
September 30, 1996.
Effective May 10, 1996, the Fund entered into a custody agreement with
Mellon to provide custodial services for the Fund. During the period ended
September 30, 1996, $1,166 was paid to Mellon pursuant to the custody
agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended September 30, 1996,
amounted to $3,507,330 and $3,527,318, respectively.
At September 30, 1996, accumulated net unrealized appreciation on
investments was $1,944,236, consisting of $2,035,084 gross unrealized
appreciation and $90,848 gross unrealized depreciation.
At September 30, 1996, 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, 1996, 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 verification by
examination of securities held by the custodian as of September 30, 1996 and
confirmation of securities not held by the custodian by correspondence with
others. 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, 1996,
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 signature logo]
New York, New York
October 31, 1996
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, 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, 1996:
- 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 $.051 per share paid by the Fund on December 28, 1995 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 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
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
Richard W. Ingram
Vice President and Assistant Treasurer
Mary A. Nelson
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Elizabeth Bachman
Vice President and Assistant Secretary
Douglas C. Conroy
PORTFOLIO MANAGERS
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
Samuel J. Weinstock
Monica S. Wieboldt
INVESTMENT ADVISER
The Dreyfus Corporation
CUSTODIAN
Mellon Bank, N.A.
COUNSEL
Stroock & Stroock & Lavan
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,
Money and Business Section under
the heading "Closed-End Bond
Funds-Single State Municipal
Bond Funds" every Sunday.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase shares of its
common stock in the open market when it can do so at prices below the then
current net asset value per share.
(Dreyfus Lion D Logo)
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
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. 858AR969
(Dreyfus Logo)
