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 the 12-month period ended September 30, 1998. Your Fund
produced a total return, including share price changes and dividend income
generated, of 6.82% .* During the reporting period, the Fund produced income
dividends exempt from Federal, New York State and New York City personal income
taxes of $0.576 per share.** This is equivalent to a tax-free distribution rate
per share of 5.64%.***
THE ECONOMY
The risk of global recession loomed large by the end of the reporting period.
Since last summer, the international economic crisis has spread from Asia and
Russia into Latin America and its effects are evident in the U.S., as witnessed
by early signs of a slowing in our domestic economy. Second-quarter gross
domestic product grew at an annual rate of 1.8%, well below the 5.5% rate in the
first quarter, while the trade deficit has continued to widen, affected by
weakening foreign demand and low-priced imports. These developments have
heightened a sense of global economic interdependence and have resulted in a
shift in emphasis by the Federal Reserve Board whereby fighting inflation has
taken a subordinate role to that of maintaining stable U.S. economic growth. As
Fed Chairman Alan Greenspan noted in early September: "It is just not credible
that the United States can remain an oasis of prosperity unaffected by a world
that is experiencing greatly increased stress." On September 29, the Federal
Open Market Committee cut interest rates for the first time since January 1996.
That quarter-point reduction in the Federal Funds target rate to 5.25% was
designed to cushion the adverse effects of the overseas economic crisis on the
domestic economy. (The Federal Funds rate is the interest rate that banks charge
each other for overnight loans.)
So far, shock waves from the overseas economic turmoil have been dampened by
the continued propensity of U.S. consumers to spend. In the first half of the
year, their spending outpaced earned income, an unsustainable phenomenon, yet a
telling indicator of the level of consumer optimism. The reasons for such
optimism are no surprise. Inflation remains tame, running at an annual rate
comfortably below 2%. After-tax income is growing: by the end of the reporting
period, wages had increased year-to-year at a 4% annual rate resulting in strong
gains in real income for workers. Finally, and of great economic and
psychological importance to consumers, jobs are plentiful; the unemployment rate
has been at or near 30-year lows throughout the reporting period and new jobs
have been created at a robust pace.
While the corporate sector wrestles with the economic implications of global
developments, consumers have powered the economy. The consumer sector comprises
two thirds of the activity in the $8 trillion U.S. economy and, with the
business sector slowing (corporate profits declined in the second quarter for
the first time in nearly a decade) , any significant pullback in household
spending could trigger a recession. Up to now, the spillover effect from
developments abroad has been largely confined to the manufacturing sector, whose
activity has contracted of late due to the falloff in export demand. Aside from
this "erosion at the edges" as Chairman Greenspan describes it, layoffs on a
broader scale -- a factor that could weaken consumer resolve to spend -- so far
have not occurred. It is clear that the Fed is concerned about the possibility
of worldwide recession. The recent interest rate reduction was an initial step
toward mitigating the domestic effects of international financial turmoil and a
gesture meant to serve notice to the world of the seriousness of its purpose.
MARKET ENVIRONMENT
Conditions in the fixed-income markets during the past 12 months have been
very dynamic. The normal economic fundamentals that exert the greatest influence
on the direction of interest rates have taken a backseat to other influences.
Price movements have often resulted from factors that are difficult to discern.
Most investors have seen, and perhaps felt, the effects of the Asian and
emerging market crisis on stocks; it has only come to light in recent weeks how
dramatic the impact could be on the bond markets. Generally, the various market
sectors respond similarly to economic and other news by moving in the same
direction, though not necessarily at the same pace. However, these are not
normal times. Fear of a widening crisis in the foreign markets has pushed more
investors to the relative safety of U.S. Treasury bonds. Compounding the problem
are substantial hedge fund positions involving complex transactions. The rapid
rise in U.S. Treasury prices has forced the unwinding of many of these positions
which, in turn, has occasionally disrupted the fixed income market.
It is difficult to anticipate when the markets will return to more normal
conditions. The bond markets continue to be driven by foreign events and hedge
funds' deleveraging needs. Mindful of these forces and the prospects for
softening in the domestic economy, it appears that the Fed will have to maintain
an accommodative bias in its conduct of monetary policy.
The impact on municipal securities has generally been positive. Yields have
moved lower throughout the past year, though the path down has not been a smooth
one. With stock prices experiencing significant erosion, more signals of a
slowing economy, AAA-rated municipal bonds yielding nearly 100% of taxable U.S.
Treasury bonds, and the consensus view that the Fed will act again to lower
short-term interest rates, we believe that the outlook for municipals is
constructive. Furthermore, while the supply of newly issued municipal securities
has been at a near record level for the past year, future projections call for a
curtailment in the amount of issues to be marketed.
PORTFOLIO FOCUS
In managing the Fund, the generation of income exempt from New York and
Federal income tax is a principal focus. During the reporting period we were
presented with a change to a lower yield environment, so we made adjustments.
Many municipalities took advantage of the lower yield levels to refinance their
outstanding debt, thereby eliminating the higher coupon bonds from the market.
Investors' ongoing search for attractive yields, and the improvement in the
economy have resulted in a significant tightening in the yield spreads that
exist between investment grade (AAA-BAA) issues. During the past year, the
credit ratings of New York State and its appropriated debt, and New York City,
have all been upgraded.
We believe that the weighting of income-oriented issues in the portfolio
should give the Fund a defensive posture, which could be beneficial in a rising
or stable interest rate environment, but the portfolio's performance may lag
when rates decline. This is the nature of such a portfolio structure. Given the
challenges of this market, we believe that the Fund continued to provide
shareholders with an attractive yield during the reporting period, albeit at
lower levels than we have seen in the past, the unfortunate consequence of the
lower interest rate climate which now exists.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid,
based upon net asset value per share.
** Some income may be subject to state and local income taxes for non-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, 1998 (UNAUDITED)
Market Price per share September 30, 1998. . . . $10 3/16
Shares Outstanding September 30, 1998. . . . . . 3,803,203
American Stock Exchange Ticker Symbol. . . . . . DNM
MARKET PRICE (AMERICAN STOCK EXCHANGE)
Fiscal Year Ended September 30, 1998
________________________________________________________________________________________________
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended
December 31, 1997 March 31, 1998 June 30, 1998 September 30, 1998
__________________ ______________ _____________ ___________________
<S> <C> <C> <C> <C>
High $10 7/8 $11 1/4 $10 11/16 $11
Low 10 1/8 10 3/16 10 1/16 9 15/16
Close 10 3/4 10 5/8 10 1/16 10 3/16
PERCENTAGE GAIN (LOSS) based on change in Market Price*
October 21, 1988 (commencement of operations) through September 30, 1998 90.01%
October 1, 1993 through September 30, 1998 . . . . . . . . . 19.70
October 1, 1997 through September 30, 1998 . . . . . . . . . 5.43
January 1, 1998 through September 30, 1998 . . . . . . . . . (1.14)
April 1, 1998 through September 30, 1998 . . . . . . . . . . (1.36)
July 1, 1998 through September 30, 1998. . . . . . . . . . . 2.68
NET ASSET VALUE PER SHARE
October 21, 1988 (commencement of operations) . . . . . . . . . . . $9.21
September 30, 1997 . . . . . . . . . . . . . . . . . . . . . . . . 9.97
December 31, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . 9.99
March 31, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . 9.98
June 30, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.96
September 30, 1998 . . . . . . . . . . . . . . . . . . . . . . . . 10.04
PERCENTAGE GAIN based on change in Net Asset Value*
October 21, 1988 (commencement of operations) through September 30, 1998 103.31%
October 1, 1993 through September 30, 1998 . . . . . . . . . 28.78
October 1, 1997 through September 30, 1998 . . . . . . . . . 6.82
January 1, 1998 through September 30, 1998 . . . . . . . . . 4.84
April 1, 1998 through September 30, 1998 . . . . . . . . . . 3.49
July 1, 1998 through September 30, 1998. . . . . . . . . . . 2.24
* With dividends reinvested.
</TABLE>
<TABLE>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998
Principal
Long-Term Municipal Investments--101.3% Amount Value
- ------------------------------------------------------- ____________ ___________
<S> <C> <C>
New York--92.9%
Albany Industrial Development Agency, LR
(New York Assembly Building Project) 7.75%, 1/1/2010 . . . . . . . . . . . . . . . . . $ 1,170,000 $ 1,291,586
Erie County Industrial Development Agency, Life Care Community Revenue
(Episcopal Church Home) 5.875%, 2/1/2018 . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,538,070
New York City, Refunding 7.25%, 8/15/2007. . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,828,470
New York City Housing Development Corp., Mortgage Revenue
(South Williamsburg Cooperative) 7.90%, 2/1/2023 (Insured; SONYMA) . . . . . . . . . . 700,000 733,012
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 1,130,160
IDR:
(Brooklyn Navy Yard-Cogen Partners) 5.75%, 10/1/2036 . . . . . . . . . . . . . . . 1,000,000 1,034,640
Refunding (LaGuardia Association lp Project) 6%, 11/1/2028 (b) . . . . . . . . . . 1,000,000 1,015,320
Special Facility Revenue (American Airlines Inc. Project):
8%, 7/1/2020 (Guaranteed; AMR Corp.) . . . . . . . . . . . . . . . . . . . . . . . 1,325,000 1,364,856
6.90%, 8/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 559,210
(Terminal One Group Association Project) 6%, 1/1/2019 . . . . . . . . . . . . . . . . . 1,100,000 1,179,563
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 1,399,125
New York State Dormitory Authority, Revenue:
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014 . . . . . . . . . . . . 1,000,000 1,167,200
Refunding (State University Educational Facilities) 6%, 5/15/2025 . . . . . . . . . . . 1,000,000 1,140,470
Secured Hospital (Saint Agnes Hospital) 5.40%, 2/15/2025 . . . . . . . . . . . . . . . 1,200,000 1,243,824
New York State Energy Research and Development Authority, PCR:
(Central Hudson Gas and Electric) 8.375%, 12/1/2028 . . . . . . . . . . . . . . . . . . 1,000,000 1,027,440
(Rochester Gas and Electric Co.) 8.375%, 12/1/2028 . . . . . . . . . . . . . . . . . . 1,500,000 1,540,575
New York State Environmental Facilities Corp., SWDR (Occidental Petroleum Corp.
5.70%, 9/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000 1,643,680
New York State Housing Finance Agency, Revenue, Refunding (Health Facilities-
New York City) 8%, 11/1/2008 (Prerefunded 11/1/2000) (a) . . . . . . . . . . . . . . . 660,000 730,620
New York State Medical Care Facilities Finance Agency, Revenue, Refunding
(Nyack Hospital Project) 8.30%, 11/1/2013 (Prerefunded 11/1/1998) (a) . . . . . . . . . 1,000,000 1,024,190
New York State Mortgage Agency, Homeownership Mortgage Revenue:
6.05%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995,000 1,075,436
6.125%, 4/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,176,220
6.40%, 4/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,100,000
New York State Power Authority, Revenue and General Purpose, Refunding
6.50%, 1/1/2019 (Prerefunded 1/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,104,540
Onondaga County Industrial Development Agency, IDR (Weyerhaeuser Project)
9%, 10/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,548,912
Port Authority of New York and New Jersey 6.50%, 12/1/2012 . . . . . . . . . . . . . . . . 1,000,000 1,086,820
Scotia Housing Authority, Housing Revenue (Coburg Village Inc. Project) 6.20%, 7/1/2038. . 1,150,000 1,171,010
United Nations Development Corp., Revenue, Refunding
5.60%, 7/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,004,620
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ___________
New York (continued)
Watervliet Housing Authority, Residential Housing (Beltrone Living Center
Project)
6.125%, 12/1/2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,012,630
Yonkers Industrial Development Agency, Civic Facility Revenue
(Saint Joseph's Hospital) 6.20%, 3/1/2020 . . . . . . . . . . . . . . . . . . . . . . . 1,600,000 1,636,960
U.S. Related--8.4%
Commonwealth of Puerto Rico 7.564%, 7/1/2018 (Insured; AMBAC) (c,d,e). . . . . . . . . . . 1,500,000 1,760,625
Commonwealth of Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue
7.90%, 7/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000 230,243
Virgin Islands Territory, Special Tax Revenue (Hugo Insurance Claims Funds
Program)
7.75%, 10/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,095,000 1,205,464
____________
TOTAL INVESTMENTS
(cost $35,987,944) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101.3% $38,705,491
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (1.3%) $ (506,626)
======== =============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $38,198,865
======== =============
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation PCR Pollution Control Revenue
IDR Industrial Development Revenue SONYMA State of New York Mortgage Agency
LR Lease Revenue SWDR Solid Waste Disposal Revenue
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ___________________
AAA Aaa AAA 18.8%
AA Aa AA 13.1
A A A 24.2
BBB Baa BBB 19.5
Not Rated (f) Not Rated (f) Not Rated (f) 24.4
_______
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) Purchased on a delayed-delivery basis.
(c) Security held in segregated account for the purpose of collateralizing
delayed-delivery security.
(d) Inverse floater security-the interest rate is subject to change
periodically.
(e) 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, 1998, this security amounted to $1,760,625 or 4.6% of net
assets.
(f) 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 STATMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998
Cost Value
____________ ___________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . $35,987,944 $38,705,491
Interest receivable . . . . . . . . . . . . . . . . . . . 741,379
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 3,472
____________
39,450,342
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 21,852
Cash overdraft due to Custodian . . . . . . . . . . . . . 158,583
Payable for investment securities purchased . . . . . . . 1,008,667
Accrued expenses . . . . . . . . . . . . . . . . . . . . 62,375
____________
1,251,477
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,198,865
============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $35,287,089
Accumulated undistributed investment income--net . . . . 92,843
Accumulated net realized gain (loss) on investments . . . 101,386
Accumulated gross unrealized appreciation on investments 2,717,547
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,198,865
============
SHARES OUTSTANDING
(110 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED). . . . . . . . . . . . . . 3,803,203
NET ASSET VALUE per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.04
========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $2,470,870
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 264,007
Directors' fees and expenses--Note 3(c) . . . . . . . . . 36,380
Shareholder servicing costs--Note 3(b) . . . . . . . . . 26,046
Shareholders' reports . . . . . . . . . . . . . . . . . . 25,190
Auditing fees . . . . . . . . . . . . . . . . . . . . . . 21,000
Legal fees . . . . . . . . . . . . . . . . . . . . . . . 7,884
Registration fees . . . . . . . . . . . . . . . . . . . . 6,667
Custodian fees--Note 3(b) . . . . . . . . . . . . . . . . 2,969
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 8,593
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 398,736
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,072,134
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ 101,972
Net unrealized appreciation (depreciation) on investments 351,783
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 453,755
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $2,525,889
===========
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, 1998 September 30, 1997
__________________ __________________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,072,134 $ 2,173,469
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . 101,972 64,879
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . 351,783 421,528
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . 2,525,889 2,659,876
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,180,966) (2,255,585)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . (65,155) (126,822)
____________ ____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,246,121) (2,382,407)
____________ ____________
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested--Note 1(c) . . . . . . . . . . . . . . . . . . . . . . . 316,319 198,280
____________ ____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . 596,087 475,749
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,602,778 37,127,029
____________ ____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,198,865 $37,602,778
============ ============
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . $ 92,843 $ 201,675
____________ ____________
Shares Shares
____________ ____________
CAPITAL SHARE TRANSACTIONS:
Increase in Shares Outstanding as a Result of Dividends Reinvested . . . . . . 31,520 19,968
============ ============
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: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $ 9.97 $ 9.90 $10.10 $ 9.92 $10.65
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .55 .58 .59 .61 .61
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .12 .12 (.14) .18 (.72)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . .67 .70 .45 .79 (.11)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.58) (.60) (.60) (.60) (.61)
Dividends from net realized gain on investments . . . . . (.02) (.03) (.05) (.01) (.01)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . (.60) (.63) (.65) (.61) (.62)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $10.04 $ 9.97 $ 9.90 $10.10 $ 9.92
========= ========= ========= ========== ======
Market value, end of period . . . . . . . . . . . . . . . $ 10 3/16 $ 10 1/4 $ 10 1/4 $ 9 11/16 $ 9
========= ========= ========= ========== ======
TOTAL INVESTMENT RETURN* . . . . . . . . . . . . . . . . . . 5.43% 6.58% 12.92% 14.74% (17.78%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . 1.06% 1.03% 1.03% 1.05% 1.02%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 5.49% 5.85% 5.94% 6.19% 5.98%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 21.43% 16.53% 9.59% 12.55% 5.94%
Net Assets, end of period (000's Omitted) . . . . . . . . $38,199 $37,603 $37,127 $37,715 $37,038
- -----------------------------
* 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, as amended (the "Act") as a non-diversified
closed-end management investment company. The Fund's investment objective is to
maximize current income exempt from Federal, New York State and New York City
personal income taxes to the extent consistent with the preservation of capital.
The Dreyfus Corporation (the "Manager") serves as the Fund's investment adviser.
The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon").
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in municipal debt securities (excluding
options and financial futures on municipal and U.S. treasury
securities) are valued on the last business day of each week and month by
an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available
and are representative of the bid side of the market in the judgment of
the Service are valued at the mean between the quoted bid prices (as
obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market
for such securities). Other investments (which constitute a majority of
the portfolio securities) are carried at fair value as determined
by the Service, based on methods which include consideration of: yields
or prices of municipal securities of comparable quality, coupon, maturity
and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price
on the national securities market on the last business day of each week
and month. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions,
are valued at the average of the most recent bid and asked prices.
Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis.
Interest income, adjusted for amortization of premiums and original issue
discounts on investments, is earned from settlement date and recognized on
the accrual basis. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade
date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are declared and paid at least
annually. To the extent that net realized capital gain can be offset by
capital loss carryovers, 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 30, 1998, the Board of Directors declared a cash dividend of
$.047 per share from investment income-net, payable on October 28, 1998 to
shareholders of record as of the close of business on October 14, 1998.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the
Internal Revenue Code of 1986, as amended, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. During the period ended
September 30, 1998, 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, 1998.
(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, 1998, the Fund was
charged $12,600 pursuant to the transfer agency agreement.
The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended September 30, 1998, the Fund was
charged $2,969 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, 1998
amounted to $9,462,267 and $7,962,130, respectively.
At September 30, 1998, 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, 1998, 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 and financial highlights. Our procedures included verification by
examination of securities held by the custodian as of September 30, 1998 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, 1998, 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.
New York, New York
November 2, 1998
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN (UNAUDITED)
Under the Fund's Dividend Reinvestment Plan (the "Plan"), a holder of 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 assetvalue (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.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended September 30, 1998:
--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 Fund hereby designates $.0155 per share as a long-term capital gain
distribution of the $.01725 per share paid on December 26, 1997.
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 1998 calendar year on Form 1099-DIV
which will be mailed by January 31, 1999.
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
<TABLE>
PROXY RESULTS (UNAUDITED)
Shareholders voted on the following proposals presented at the annual
shareholders' meeting held on May 22, 1998. The description of each proposal and
the number of shares voted are as follows:
Shares
________________________________________
For Authority Withheld
_________________ _______________________
1. To elect three Class II Directors:*
<S> <C> <C>
Whitney I. Gerard . . . . . . . . . . . . . . . . . . . 3,060,985 37,094
Robert R. Glauber . . . . . . . . . . . . . . . . . . . 3,060,985 37,094
Arthur A. Hartman . . . . . . . . . . . . . . . . . . . 3,055,198 42,881
Shares
___________________________________________________
For Against Abstained
_________________ ______________ ______________
2. To ratify the selection of Ernst & Young LLP
as independent auditors of the Fund. . . . . . . . . . . . . . 3,044,189 22,505 31,385
* The terms of these Class II Directors expire in 2001.
</TABLE>
DREYFUS NEW YORK MUNICIPAL INCOME, INC.
- -----------------------------------------------------------------------------
YEAR 2000 RISKS (UNAUDITED)
Like other mutual funds, financial and business organizations and individuals
around the world, the Fund could be adversely affected if the computer systems
used by The Dreyfus Corporation and the Fund's other service providers do not
properly process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 Problem." The Dreyfus
Corporation is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurances that comparable steps are
being taken by the Fund's other major service providers. At this time, however,
there can be no assurance that these steps will be sufficient to avoid any
adverse impact on the Fund.
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
Margart W. Chambers
Vice President and Assistant Treasurer
Mary A. Nelson
Vice President, Assistant Treasurer and Assistant Secretary
Michael Petrucelli
Vice President, Assistant Treasurer and Assistant Secretary
Stephanie Pierce
Vice President and Assistant Treasurer
George A. Rio
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Douglas C. Conroy
Vice President and Assistant Secretary
Christopher J. Kelley
Vice President and Assistant Secretary
Kathleen K. Morrisey
Vice President and Assistant Secretary
Elba Vasquez
Portfolio Managers
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
Samuel J. Weinstock
Monica S. Wieboldt
Investment Adviser
The Dreyfus Corporation
Custodian
Mellon Bank, N.A.
Counsel
Stroock & Stroock & Lavan LLP
Transfer Agent, Dividend Distribution Agent and Registrar Mellon Bank, N.A.
Stock Exchange Listing
AMEX Symbol: 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.
- --------------------------------------------------------------------------------
{Lion "d" logo] (reg.tm)
{Lion "d" logo] (reg.tm)
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. 425AR989
New York
Municipal
Income, Inc.
Annual Report
September 30, 1998
