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 fiscal year ended September 30, 1997. Your
Fund produced a total return, including bond price changes and interest
income, of 7.33%.* During the reporting period, the Fund produced income
dividends exempt from Federal, New York State and New York City personal
income taxes of $.60 per share.** This is equivalent to a Federally tax-free
distribution rate per share of 5.83%.***
THE ECONOMY
Virtually ideal economic conditions have prevailed over the reporting
period. Robust growth in the first half of 1997, the lowest unemployment rate
since the early 1970s and measures of inflation at 30-year lows have combined
to spur consumer confidence to record high ground. Businesses were similarly
optimistic: government reports show that business investment in new equipment
during the reporting period was at its fastest pace in 14 years. The question
is, how long can this favorable economic scenario continue before inflation
rekindles or, more to the point, before the Federal Reserve Board (the Fed)
embarks on a policy of monetary restraint to dampen possible future
inflationary excess? Traditionally, the Fed has acted to contain inflation
long before it could spread throughout the economy, and Fed Chairman Alan
Greenspan has been a staunch inflation-fighter. Yet there currently are few
traditional signs of potential inflationary excess to battle against. The
upward creep of factory operating rates in response to surging industrial
production is one, the tight labor markets another. With the unemployment
rate so low, there is concern that employers will eventually raise wages to
attract workers, resulting in higher prices as increased labor costs are
passed along to consumers. So far, there has been a remarkable absence of
wage and price pressures.
There are few signs that broader measures of inflation are accelerating.
The economy grew at a 4.1% rate over the first six months of this year, a
pace that in other times would have resulted in rumblings of inflationary
pressures. Until its modest rise in September, the Producer Price Index had
an unprecedented series of seven straight monthly declines. The Consumer
Price Index rose at a 1.6% annual rate for the first eight months of the
year, a rate less than half the 3.3% rise for the comparable period in 1996.
Because of the lack of inflation, the Fed has been willing to tolerate
strong economic growth without tightening monetary policy. The Federal Open
Market Committee (FOMC), the policy-making arm of the Fed, has raised
interest rates just once in more than two years, a period roughly coinciding
with the surge of growth in the economy. The last increase in short-term
interest rates came on March 25, 1997 when the FOMC increased the Federal
Funds target rate by a modest one quarter of a percentage point to 5.50%.
(The Federal Funds rate is the rate of interest that banks charge one another
for overnight loans.)
We remain alert for future changes of monetary policy by the Fed,
particularly the possibility of a tightening if economic growth continues
strong throughout the rest of this year.
MARKET ENVIRONMENT
The municipal market has benefited from the same improving trends as the
broader fixed income markets. Rather than subduing the markets, the 25
basis-point interest rate hike that occurred in March acted as a stabilizer,
providing the markets with a firm floor from which bond prices continued to
rise and rates fall. During the summer the bond market moved into trading
ranges, experienced volatility within those ranges, but continued to move to
lower yield levels. The municipal market has been very attractive compared to
its taxable counterparts. For example, on September 30, the generic municipal
bond, rated AAA and maturing in 20 years, was yielding 5.12%, which equates
to 7.42% on an after-tax basis (using a 31% tax rate); similar U.S.
Treasuries were yielding 6.46%. Ample supply in the municipal market has been
one factor in keeping levels attractive.
PORTFOLIO OVERVIEW
New York State recently received an upgrade in its credit rating from
Standard & Poor's and we currently believe that the outlook for both the
State and New York City is stable. As we have discussed in previous letters,
the main focus of the Fund is to provide you, the investor, with income. The
Fund currently has a high coupon, short duration profile. The portfolio has
changed very little since our last report. The challenge going forward is to
reinvest the proceeds from maturing bonds at the most attractive levels the
market affords, and unless we see a dramatic change in yields (which we
believe is unlikely), some downward shift in income will be inevitable.
Included with this report are financial statements relating to your
Fund's holdings and its financial condition. We hope you find them
informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal
Portfolio Management
The Dreyfus Corporation
October 20, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, based upon net asset value.
** Some income may be subject to state and local taxes for non-New York
residents and, for certain shareholders, to the Federal Alternative Minimum
Tax (AMT).
***Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the market price per
share at the end of the period, adjusted for capital gains distributions.
<TABLE>
Dreyfus New York Municipal Income, Inc.
Selected Information September 30, 1997 (Unaudited)
Market Price per share September 30, 1997........................... $10 1\4
Shares Outstanding September 30, 1997............................... 3,771,683
American Stock Exchange Ticker Symbol............................... DNM
MARKET PRICE (AMERICAN STOCK EXCHANGE)
Fiscal Year Ended September 30, 1997
-----------------------------------------------------------------------------------------
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended
December 31, 1996 March 31, 1997 June 30, 1997 September 30, 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
High $10 3\8 $10 $10 5\8 $10 5\8
Low 91 1\16 9 5\8 9 5\8 10
Close 91 1\16 9 15\16 10 5\16 10 1\4
PERCENTAGE GAIN based on change in Market Price*
October 21, 1988 (commencement of operations) through September 30, 1997.......... 80.23%
October 1, 1992 through September 30, 1997........................................ 38.51
October 1, 1996 through September 30, 1997........................................ 6.58
January 1, 1997 through September 30, 1997........................................ 10.70
April 1, 1997 through September 30, 1997.......................................... 6.30
July 1, 1997 through September 30, 1997........................................... .90
NET ASSET VALUE PER SHARE
October 21, 1988 (commencement of operations)........ $9.21
September 30, 1996................................... 9.90
December 31, 1996.................................... 9.90
March 31, 1997....................................... 9.81
June 30, 1997........................................ 9.90
September 30, 1997................................... 9.97
PERCENTAGE GAIN based on change in Net Asset Value*
October 21, 1988 (commencement of operations) through September 30, 1997.............. 90.33%
October 1, 1992 through September 30, 1997............................................ 34.67
October 1, 1996 through September 30, 1997............................................ 7.33
January 1, 1997 through September 30, 1997............................................ 5 .37
April 1, 1997 through September 30, 1997.............................................. 4.74
July 1, 1997 through September 30, 1997............................................... 2.23
* With dividends reinvested.
</TABLE>
<TABLE>
Dreyfus New York Municipal Income, Inc.
Statement of Investments September 30, 1997
Principal
Long-Term Municipal Investments-100.0% Amount Value
------- ------
New York-79.2%
Albany Industrial Development Agency, LR (New York State Assembly Building
Project)
<S> <C> <C>
7.75%, 1/1/2010........................................................... $ 1,205,000 $1,368,073
Babylon Industrial Development Agency, RRR (Ogden Martin System Babylon,
Inc.)
8.50%, 1/1/2019 (Prerefunded 7/1/1998) (a)................................ 1,330,000 1,415,439
New York City,
Refunding 7.25%, 8/15/2007................................................ 1,500,000 1,760,775
New York City Housing Development Corp., Mortgage Revenue
(South Williamsburg Cooperative) 7.90%, 2/1/2023 (Insured; SONYMA)........ 705,000 745,989
New York City Industrial Development Agency:
Civic Facility Revenue (YMCA of Greater New York Project)
8%, 8/1/2016 (Prerefunded 8/1/2001) (a)................................. 1,000,000 1,152,040
Special Facility Revenue (American Airlines Inc. Project):
8%, 7/1/2020 (Guaranteed; AMR Corp.).................................... 1,325,000 1,397,742
6.90%, 8/1/2024......................................................... 500,000 555,370
(Terminal One Group Association Project) 6%, 1/1/2019................... 1,100,000 1,139,677
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 1,419,875
New York State Dormitory Authority, Revenue:
Crossover, Refunding (City University) 8.20%, 7/1/2013.................... 1,000,000 1,048,540
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014........... 1,000,000 1,167,390
Refunding (State University Educational Facilities) 6%, 5/15/2025......... 1,000,000 1,039,180
New York State Energy Research and Development Authority, PCR:
(Central Hudson Gas and Electric) 8.375%, 12/1/2028....................... 1,000,000 1,065,850
(Rochester Gas and Electric Co.) 8.375%, 12/1/2028........................ 1,500,000 1,593,795
New York State Environmental Facilities Corp., SWDR (Occidental Petroleum
Corp.)
5.70%, 9/1/2028........................................................... 1,600,000 1,608,512
New York State Housing Finance Agency, Revenue,
Refunding (Health Facilities-New York City)
8%, 11/1/2008 (Prerefunded 11/1/2000) (a)................................. 660,000 746,236
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 2,130,580
New York State Mortgage Agency, Revenue
Homeowner Mortgage:
6.05%, 4/1/2026......................................................... 1,000,000 1,035,400
6.125%, 4/1/2027........................................................ 2,000,000 2,084,720
6.40%, 4/1/2027......................................................... 1,000,000 1,063,360
New York State Power Authority, Revenue and General Purpose,
Refunding 6.50%, 1/1/2019................................................. 1,000,000 1,083,360
Onondaga County Industrial Development Agency, IDR (Weyerhaeuser Project)
9%, 10/1/2007............................................................. 1,200,000 1,518,564
United Nations Development Corp., Revenue, Refunding
5.60%, 7/1/2026........................................................... 1,000,000 994,240
</TABLE>
<TABLE>
Dreyfus New York Municipal Income, Inc.
Statement of Investments (continued) September 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
------- ------
U.S. Related-20.8%
<S> <C> <C>
Commonwealth of Puerto Rico 8.129%, 7/1/2018 (Insured; AMBAC) (b,c)......... $ 1,500,000 $ 1,623,750
Commonwealth of Puerto Rico Aqueduct and Sewer Authority, Revenue
7.90%, 7/1/2007 (Prerefunded 7/1/1998) (a)................................ 1,000,000 1,050,870
Commonwealth of Puerto Rico Highway Authority, Highway Revenue:
8.125%, 7/1/2013 (Prerefunded 7/1/1998) (a)............................... 1,000,000 1,052,500
Refunding 8%, 7/1/2003 (Prerefunded 7/1/1998) (a)......................... 1,500,000 1,577,415
Commonwealth of Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue
7.90%, 7/1/2007........................................................... 1,000,000 1,050,340
Virgin Islands Territory, Special Tax Revenue (Hugo Insurance Claims Funds
Program)
7.75%, 10/1/2006.......................................................... 1,175,000 1,290,420
-------
TOTAL INVESTMENTS
(cost $34,414,238)........................................................ $36,780,002
=======
Summary of Abbreviations
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
Summary of Combined Ratings (Unaudited)
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
- ---- ---- --------------- ----------------
AAA Aaa AAA 27.3%
AA Aa AA 16.3
A A A 15.7
BBB Baa BBB 27.7
Not Rated (e) Not Rated (e) Not Rated (e) 13.0
----
100.0%
====
Notes to Statement of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Inverse floater security-the interest rate is subject to change
periodically.
(c) 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, 1997, this security amounted to $1,623,750 or 4.3% of net assets.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
Dreyfus New York Municipal Income, Inc.
Statement of Assets and Liabilities September 30, 1997
Cost Value
------- ------
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $34,414,238 $36,780,002
Cash....................................... 93,807
Interest receivable........................ 803,803
Prepaid expenses........................... 2,125
-------
37,679,737
-------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 30,225
Accrued expenses........................... 46,734
-------
76,959
-------
NET ASSETS.................................................................. $37,602,778
=======
REPRESENTED BY: Paid-in capital............................ $34,970,770
Accumulated undistributed investment income-net 201,675
Accumulated net realized gain (loss) on investments 64,569
Accumulated gross unrealized appreciation
on investments 2,365,764
-------
NET ASSETS.................................................................. $37,602,778
=======
SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized)............. 3,771,683
NET ASSET VALUE per share................................................... $9.97
===
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
Dreyfus New York Municipal Income, Inc.
Statement of Operations Year Ended September 30, 1997
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income............................ $2,557,721
EXPENSES: Management fee-Note 3(a)................... $ 260,261
Directors' fees and expenses-Note 3(c)..... 36,923
Shareholder servicing costs-Note 3(b)...... 26,253
Auditing fees.............................. 19,500
Shareholders' reports...................... 11,861
Legal fees................................. 9,538
Registration fees.......................... 8,000
Custodian fees-Note 3(b)................... 2,948
Miscellaneous.............................. 8,968
------
Total Expenses......................... 384,252
------
INVESTMENT INCOME-NET....................................................... 2,173,469
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 64,879
Net unrealized appreciation (depreciation)
on investments......................... 421,528
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 486,407
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,659,876
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
Dreyfus New York Municipal Income, Inc.
Statement of Changes in Net Assets
Year Ended Year Ended
September 30, 1997 September 30,
1996
---------- ----------
OPERATIONS:
<S> <C> <C>
Investment income-net............................................... $ 2,173,469 $ 2,220,356
Net realized gain (loss) on investments............................. 64,879 127,083
Net unrealized appreciation (depreciation) on investments........... 421,528 (689,578)
------- -------
Net Increase (Decrease) in Net Assets Resulting from Operations... 2,659,876 1,657,861
------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (2,255,585) (2,242,979)
Net realized gain on investments.................................... (126,822) (190,369)
------- -------
Total Dividends................................................... (2,382,407) (2,433,348)
------- -------
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested-Note 1(c)...................................... 198,280 187,335
------- -------
Total Increase (Decrease) in Net Assets......................... 475,749 (588,152)
NET ASSETS:
Beginning of Period................................................. 37,127,029 37,715,181
------- -------
End of Period....................................................... $37,602,778 $37,127,029
======= =======
Undistributed investment income-net................................... $ 201,675 $ 283,791
------- -------
Shares Shares
------- -------
CAPITAL SHARE TRANSACTIONS:
Increase In Shares Outstanding As A Result Of Dividends Reinvested 19,968 18,993
======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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 period 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: 1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 9.90 $10.10 $ 9.92 $10.65 $10.13
---- ---- ---- ---- ----
Investment Operations:
Investment income-net........................ .58 .59 .61 .61 .62
Net realized and unrealized gain (loss) on investments 12 (.14) .18 (.72) . 53
---- ---- ---- ---- ----
Total from Investment Operations............. .70 .45 .79 (.11) 1.15
---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net......... (.60) (.60) (.60) (.61) (.58)
Dividends from net realized gain on investments (.03) (.05) (.01) (.01) (.05)
---- ---- ---- ---- ----
Total Distributions.......................... (.63) (.65) (.61) (.62) (.63)
---- ---- ---- ---- ----
Net asset value, end of period............... $ 9.97 $ 9.90 $10.10 $ 9.92 $10.65
---- ---- ---- ---- ----
---- ---- ---- ---- ----
Market value, end of period.................. $ 10 1\4 $ 10 1\4 $ 91 1\16 $ 9 $11 5.8
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN*......................... 6.58% 12.92% 14.74% (17.78%) 21.99%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.03% 1 .03% 1.05% 1.02% 1.06%
Ratio of net investment income to average net assets 5.85% 5.94% 6.19% 5.98% 6.06%
Portfolio Turnover Rate...................... 16.53% 9.59% 12.55% 5.94% 5.01%
Net Assets, end of period (000's Omitted).... $37,603 $37,127 $37,715 $37,038 $39,543
* 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.
On September 29, 1997, the Board of Directors declared a cash dividend of
$.05 per share from investment income-net, payable on October 27, 1997 to
shareholders of record as of the close of business on October 13, 1997.
Dreyfus New York Municipal Income, Inc.
NOTES TO FINANCIAL STATEMENTS (continued)
(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. 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, 1997, 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 period ended September 30,
1997.
(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 September 30, 1997, the Fund was charged
$12,600 pursuant to the transfer agency agreement.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended September 30, 1997,
the Fund was charged $2,948 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 September 30, 1997
amounted to $6,042,916 and $6,006,032, respectively.
At September 30, 1997, 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, 1997, 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 resp
onsibility 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 and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of
September 30, 1997 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, 1997,
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 29, 1997
Dreyfus New York Municipal Income, Inc.
DIVIDEND REINVESTMENT PLAN (Unaudited)
Under the Fund's Dividend Reinvestment Plan (the "Plan"), a holder of the
Common Stock ("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., c/o ChaseMellon Shareholder Services,
Shareholder Investment Plan, P.O. Box 3338, South Hackensack, New Jersey
07606, 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.
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, 1997:
-all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax and, for
individuals who are New York residents, New York State and New York City
personal income taxes), and
-the $.03375 per share paid by the Fund on December 27, 1996 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 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
Dreyfus New York Municipal Income, Inc.
Proxy Results (Unaudited)
Shareholders voted on the following proposals presented at the annual
shareholders' meeting held on September 12, 1997. The description of each
proposal and the number of shares voted are as follows:
<TABLE>
<CAPTION>
Shares
--------------------------------
For Authority Withheld
----------- -------------
1.To elect three Class I Directors:*
<S> <C> <C> <C>
Lucy Wilson Benson............................. 3,257,729 61,548
David W. Burke................................. 3,255,112 64,165
Martin D. Fife................................. 3,257,629 61,648
Shares
-------------------------
For Against Abstained
---------- ------- --------
2.To ratify the selection of Ernst & Young LLP
as independent auditors for the Fund........... 3,258,720 27,587 32,970
* The terms of these Class I Directors expire in 2000.
</TABLE>
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 Assistant Treasurer
Richard W. Ingram
Vice President and Assistant Treasurer
Mary A. Nelson
Vice President and Assistant Treasurer
Michael Petrucelli
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Douglas C. Conroy
Vice President and Assistant Secretary
Elizabeth Keeley
Portfolio Managers
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
Samuel J. Weinstock
Monica S. Wieboldt
Investment Adviser
The Dreyfus Corporation
Custodian
Mellon Bank, N.A.
Counsel
Stroock & Stroock & Lavan LLP
Transfer Agent,
Dividend Distribution Agent
and Registrar
Mellon Bank, N.A.
Stock Exchange Listing
AMEX Symbol: 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.
Registration Mark
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. 858AR979
[Dreyfus logo]
Registration Mark
New York
Municipal
Income, Inc.
Annual Report
September 30, 1997
