Dreyfus
New York Municipal
Income, Inc.
ANNUAL REPORT
September 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
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 from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Selected Information
7 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
18 Report of Independent Auditors
19 Dividend Reinvestment Plan
21 Important Tax Information
22 Proxy Results
25 Officers and Directors
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus New York
Municipal Income, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus New York Municipal
Income, Inc., covering the 12-month period from October 1, 1998 through
September 30, 1999. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, Monica Wieboldt.
The past year has been mixed for municipal bond investors. Lower short-term
interest rates adopted by the Federal Reserve Board in the fall of 1998 helped
the U.S. economy withstand the effects of economic weakness in Japan, Asia and
Latin America. As interest rates declined, the prices of many municipal bonds
appreciated.
Soon after 1999 began, however, evidence emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates twice during the summer of 1999. Higher interest rates led to erosion of
municipal bond prices, especially toward the end of the reporting period.
In this environment, however, the yields of tax-exempt bonds have recently been
quite attractive compared to the after-tax yields of taxable bonds of comparable
maturity and credit quality. This is especially true for investors in the higher
federal income tax brackets.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus New York Municipal Income, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 15, 1999
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus New York Municipal Income, Inc. perform during the reporting
period?
The fund produced a -1.78% total return(1) and income dividends of $0.532 per
share -- which is equal to a distribution rate of 6.33% -- over the 12-month
reporting period ended September 30, 1999.(2) We attribute our performance
primarily to the defensive structure of the portfolio, which helped us avoid the
full adverse effects of rising interest rates.
What is the fund's investment approach?
The fund seeks a high level of current income from a portfolio of long-term
municipal bonds from New York issuers.
We tactically manage the portfolio' s average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase, we may reduce the fund's average duration to make cash available for
the purchase of higher yielding securities. Conversely, if we expect demand for
municipal bonds to surge at a time when we anticipate little issuance, we may
increase the fund's average duration to maintain current yields for as long as
practical.
Second, we attempt to add value by selecting the tax-exempt bonds that we
believe are most likely to provide the high current levels of income consistent
with the fund's management policies.
What other factors influenced the fund's performance?
When the reporting period began on October 1, 1998, investors were concerned
about the potentially adverse economic effects of the global currency and credit
crisis, which had spread from Asia to Russia and was threatening Latin America.
In response, the Federal Reserve Board reduced short-term interest rates last
fall in an attempt to stimulate global economic growth.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
The Federal Reserve's strategy apparently was effective. Economies in Japan and
Southeast Asia appear to have halted their deterioration early in 1999, and the
growth of the U.S. economy was stronger than most analysts expected. Municipal
bond yields and prices stabilized in this environment. In the second and third
quarters, however, strong economic growth raised concerns among fixed-income
investors that inflationary pressures might re-emerge. The Federal Reserve Board
increased short-term interest rates twice during the summer of 1999 in an
attempt to forestall inflationary pressures. This change in monetary policy
caused municipal bond prices to fall.
In addition, strong economic conditions contributed to the nation's first
federal budget surplus in many years. While the government has had less need to
issue U.S. Treasury securities, demand has remained high from domestic and
overseas investors. This imbalance has recently constrained the rise of taxable
bond yields relative to tax-exempt bonds. As a result, municipal bonds generally
underperformed U.S. Treasury securities during the reporting period. However,
because of this relative underperformance, municipal bonds are currently
offering tax-exempt yields that compare very favorably with taxable yields after
adjusting for taxes.
What is the fund's current strategy?
From the beginning to the end of the reporting period, we extended the fund's
average duration from approximately five and one-half years to approximately
eight years. This shift was largely a result of recent portfolio changes: As
some of our long-term bonds came closer to their call or maturity dates, we were
able to reinvest the proceeds to take advantage of the rising interest-rate
environment and to lock in attractive yields. This is consistent with our belief
that most of the effects of the current higher interest rates have already been
incorporated into bond prices. It may also allow us to capture the potential for
capital appreciation if interest rates fall from current levels.
However, we have kept some cash on hand to give us the flexibility we believe is
reasonable in the event that the fund is presented with any Y2K-related
opportunities as the new year approaches. Although we do not expect New York
issuers to experience any Y2K problems, we are alert to the possibility that
Y2K-related concerns may cause temporary disruptions in market liquidity.
October 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
BASED UPON NET ASSET VALUE PER SHARE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-NEW YORK
RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
(2) DISTRIBUTION RATE PER SHARE IS BASED UPON DIVIDENDS PER SHARE PAID FROM NET
INVESTMENT INCOME DURING THE PERIOD, DIVIDED BY THE MARKET PRICE PER SHARE AT
THE END OF THE PERIOD.
The Fund
SELECTED INFORMATION
September 30, 1999 (Unaudited)
Market Price per share September 30, 1999 $8 3/8
Shares Outstanding September 30, 1999 3,821,501
American Stock Exchange Ticker Symbol DNM
MARKET PRICE (AMERICAN STOCK EXCHANGE)
<TABLE>
Fiscal Year Ended September 30, 1999
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QUARTER QUARTER QUARTER QUARTER
ENDED ENDED ENDED ENDED
DECEMBER 31, 1998 MARCH 31, 1999 JUNE 30, 1999 SEPTEMBER 30, 1999
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
High $ 10 7/16 $10 3/8 $10 $8 7/8
Low 10 3/16 9 3/8 8 11/16 8 5/16
Close 10 3/8 9 15/16 8 3/4 8 3/8
PERCENTAGE GAIN (LOSS) based on change in Market Price*
October 21, 1988 (commencement of operations)
through September 30, 1999 65.63%
October 1, 1989 through September 30, 1999 63.72
October 1, 1994 through September 30, 1999 26.90
October 1, 1998 through September 30, 1999 (12.83)
January 1, 1999 through September 30, 1999 (15.84)
April 1, 1999 through September 30, 1999 (13.34)
July 1, 1999 through September 30, 1999 ( 2.91)
NET ASSET VALUE PER SHARE
October 21, 1988 (commencement of operations) $ 9.21
September 30, 1998 10.04
December 31, 1998 9.93
March 31, 1999 9.86
June 30, 1999 9.60
September 30, 1999 9.30
PERCENTAGE GAIN (LOSS) based on change in Net Asset Value*
October 21, 1988 (commencement of operations)
through September 30, 1999 99.68%
October 1, 1989 through September 30, 1999 85.96
October 1, 1994 through September 30, 1999 27.84
October 1, 1998 through September 30, 1999 ( 1.78)
January 1, 1999 through September 30, 1999 ( 2.36)
April 1, 1999 through September 30, 1999 ( 3.01)
July 1, 1999 through September 30, 1999 ( 1.74)
* WITH DIVIDENDS REINVESTED.
</TABLE>
STATEMENT OF INVESTMENTS
September 30, 1999
<TABLE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.9% Amount ($) Value ($)
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<S> <C> <C>
NEW YORK--87.5%
Albany Industrial Development Agency, LR
(New York Assembly Building Project) 7.75%, 1-1-2010 1,125,000 1,165,916
Erie County Industrial Development Agency,
Life Care Community Revenue
(Episcopal Church Home) 5.875%, 2-1-2018 1,500,000 1,402,680
New York City, Refunding 7.25%, 8-15-2007 1,500,000 1,710,030
New York City Housing Development Corp., Mortgage Revenue
(South Williamsburg Cooperative) 7.90%, 2-1-2023
(Insured; SONYMA) 690,000 708,168
New York City Industrial Development Agency:
Civic Facility Revenue (YMCA of Greater New York Project)
8%, 8-1-2016 (Prerefunded 8-1-2001) 1,000,000 (a) 1,082,500
IDR:
(Brooklyn Navy Yard--Cogen Partners) 5.75%, 10-1-2036 1,000,000 937,050
Refunding (LaGuardia Association LP Project)
6%, 11-1-2028 1,000,000 945,680
Special Facility Revenue (American Airlines Inc. Project):
5.40%, 7-1-2019 (Guaranteed; AMR Corp.) 1,390,000 1,281,274
6.90%, 8-1-2024 500,000 527,600
(Terminal One Group Association Project) 6%, 1-1-2019 1,100,000 1,111,000
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue 7.75%, 6-15-2020
(Prerefunded 6-15-2001) 1,250,000 (a) 1,342,450
New York State Dormitory Authority, Revenue:
Judicial Facility Lease (Suffolk County Issue)
9.50%, 4-15-2014 1,000,000 1,144,430
Refunding (State University Educational Facilities)
6%, 5-15-2025 (Prerefunded 5-15-2005) 1,000,000 (a) 1,086,980
Secured Hospital (Saint Agnes Hospital) 5.40%, 2-15-2025 1,200,000 1,091,460
New York State Environmental Facilities Corp.,
SWDR (Occidental Petroleum Corp) 5.70%, 9-1-2028 1,600,000 1,489,904
New York State Housing Finance Agency,
Revenue, Refunding (Health Facilities -
New York City) 8%, 11-1-2008 (Prerefunded 11-1-2000) 660,000 (a) 701,765
New York State Mortgage Agency,
Homeownership Mortgage Revenue:
6.05%, 4-1-2026 955,000 966,355
6.125%, 4-1-2027 2,000,000 2,038,200
6.40%, 4-1-2027 985,000 1,021,799
New York State Power Authority, Revenue and
General Purpose, Refunding
6.50%, 1-1-2019 (Prerefunded 1-1-2002) 1,000,000 (a) 1,067,190
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK (CONTINUED)
Onondaga County Industrial Development Agency,
IDR (Weyerhaeuser Project)
9%, 10-1-2007 1,200,000 1,438,668
Port Authority of New York and New Jersey 6.947%, 12-1-2012 1,000,000 (b,c) 961,680
Scotia Housing Authority, Housing Revenue
(Coburg Village Inc. Project)
6.20%, 7-1-2038 1,150,000 1,079,712
Suffolk County Industrial Development Agency, IDR, Refunding
(Nissequogue Cogen Partners Facility) 5.50%, 1-1-2023 1,500,000 1,364,235
United Nations Development Corp., Revenue, Refunding
5.60%, 7-1-2026 1,000,000 960,430
Watervliet Housing Authority, Residential Housing
(Beltrone Living Center Project)
6.125%, 6-1-2038 1,000,000 937,190
Yonkers Industrial Development Agency, Civic Facility Revenue
(Saint Joseph's Hospital) 6.20%, 3-1-2020 1,600,000 1,496,928
U.S. RELATED--10.4%
Commonwealth of Puerto Rico 7.276%, 7-1-2018
(Insured; AMBAC) 1,500,000 (b,c) 1,655,625
Commonwealth of Puerto Rico Highway and
Transportation Authority,
Transportation Revenue, Refunding 6.09%, 7-1-2038 1,000,000 (b,c) 752,680
Commonwealth of Puerto Rico Infrastructure Financing
Authority, Special Tax Revenue 7.90%, 7-1-2007 225,000 227,923
Virgin Islands Territory, Special Tax Revenue
(Hugo Insurance Claims Funds Program)
7.75%, 10-1-2006 (Prerefunded 10-1-2001) 1,005,000 (a) 1,072,687
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $34,807,202) 34,770,189
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SHORT-TERM MUNICIPAL INVESTMENTS--.3%
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NEW YORK;
New York City Municipal Water Finance Authority, Water and Sewer
System Revenue, VRDN 3.75% (Insured; FGIC, SBPA; FGIC)
(cost $100,000) 100,000 (d) 100,000
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TOTAL INVESTMENTS
(cost $34,907,202) 98.2% 34,870,189
CASH AND RECEIVABLES (NET) 1.8% 651,611
NET ASSETS 100.0% 35,521,800
Summary of Abbreviations
AMBAC American Municipal Bond SBPA Standby Bond Purchase Agreement
Assurance Corporation SONYMA State of New York Mortgage
FGIC Financial Guaranty Insurance Agency
Company SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LR Lease Revenue
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 19.9
AA Aa AA 13.6
A A A 18.1
BBB Baa BBB 16.1
F1 Mig1 SP1 .3
Not Rated(e) Not Rated(e) Not Rated(e) 32.0
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) INVERSE FLOATER SECURITY-THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(C) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30, 1999,
THESE SECURITIES AMOUNTED TO $3,369,985 OR 9.5% OF NET ASSETS.
(D) SECURITY PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC
CHANGE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 34,907,202 34,870,189
Cash 34,030
Interest receivable 682,845
Prepaid expenses 6,236
35,593,300
- - ------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 23,667
Accrued expenses 47,833
71,500
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NET ASSETS ($) 35,521,800
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 35,468,166
Accumulated undistributed investment income--net 1,600
Accumulated net realized gain (loss) on investments 89,047
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (37,013)
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NET ASSETS ($) 35,521,800
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SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized) 3,821,501
NET ASSET VALUE per share ($) 9.30
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended September 30, 1999
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INVESTMENT INCOME ($):
INTEREST INCOME 2,314,724
EXPENSES:
Management fee--Note 3(a) 260,966
Directors' fees and expenses--Note 3(c) 35,090
Professional fees 24,165
Shareholder servicing costs--Note 3(b) 23,980
Shareholders' reports 16,037
Registration fees 5,333
Custodian fees--Note 3(b) 2,954
Miscellaneous 8,006
TOTAL EXPENSES 376,531
INVESTMENT INCOME--NET 1,938,193
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 91,244
Net unrealized appreciation (depreciation) on investments (2,754,560)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (2,663,316)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (725,123)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
-----------------------------------
1999 1998
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OPERATIONS ($):
Investment income--net 1,938,193 2,072,134
Net realized gain (loss) on investments 91,244 101,972
Net unrealized appreciation (depreciation)
on investments (2,754,560) 351,783
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (725,123) 2,525,889
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (2,029,436) (2,180,966)
Net realized gain on investments (103,583) (65,155)
TOTAL DIVIDENDS (2,133,019) (2,246,121)
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CAPITAL STOCK TRANSACTIONS ($):
DIVIDENDS REINVESTED-NOTE 1(C) 181,077 316,319
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,677,065) 596,087
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 38,198,865 37,602,778
END OF PERIOD 35,521,800 38,198,865
Undistributed investment income--net 1,600 92,843
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
INCREASE IN SHARES OUTSTANDING AS A RESULT OF
DIVIDENDS REINVESTED 18,298 31,520
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements and market price data for the fund's shares.
<TABLE>
Year Ended September 30,
--------------------------------------------------------------
1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 10.04 9.97 9.90 10.10 9.92
Investment Operations:
Investment income--net .51 .55 .58 .59 .61
Net realized and unrealized
gain (loss) on investments (.69) .12 .12 (.14) .18
Total from Investment Operations (.18) .67 .70 .45 .79
Distributions:
Dividends from investment income--net (.53) (.58) (.60) (.60) (.60)
Dividends from net realized gain
on investments (.03) (.02) (.03) (.05) (.01)
Total Distributions (.56) (.60) (.63) (.65) (.61)
Net asset value, end of period 9.30 10.04 9.97 9.90 10.10
Market value, end of period 8 3/8 10 3/16 10 1/4 10 1/4 9 11/16
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TOTAL RETURN (%) (A) (12.83) 5.43 6.58 12.92 14.74
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RATIOS-SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.01 1.06 1.03 1.03 1.05
Ratio of net investment income
to average net assets 5.20 5.49 5.85 5.94 6.19
Portfolio Turnover Rate 10.51 21.43 16.53 9.59 12.55
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 35,522 38,199 37,603 37,127 37,715
(A) CALCULATED BASED ON MARKET VALUE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
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, 1999, the Board of Directors declared a cash dividend of $.041
per share from investment income-net, payable on October 28, 1999 to
shareholders of record as of the close of business on October 14, 1999.
(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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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, 1999, 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, 1999.
(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, 1999, the fund was charged $23,980
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, 1999, the fund was
charged $2,954 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, 1999, amounted to
$3,874,338 and $5,125,290, respectively.
At September 30, 1999, accumulated net unrealized depreciation on investments
was $37,013, consisting of $1,115,672 gross unrealized appreciation and
$1,152,685 gross unrealized depreciation.
At September 30, 1999, 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).
The Fund
REPORT OF 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, 1999, 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, 1999 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, 1999, 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.
/s/Ernst & Young LLP
New York, New York
November 1, 1999
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 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
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, 1999:
- --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 $.0272 per share as a long-term capital gain
distribution paid on December 24, 1998.
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 1999 calendar year on Form 1099-DIV which
will be mailed by January 31, 2000.
The Fund
PROXY RESULTS (Unaudited)
Shareholders voted on the following proposals presented at the annual
shareholders' meeting held on May 21, 1999. The description of each proposal and
the number of shares voted are as follows:
<TABLE>
Shares
-------------------------------------
For Authority Withheld
-------------------------------------
<S> <C> <C>
To elect three Class III Directors:*
Joseph S. DiMartino 3,164,891 49,123
George L. Perry 3,165,250 48,764
Paul Wolfowitz 3,165,250 48,764
Shares
----------------------------------------------------------------------------------------------
For Against Abstained
----------------------------------------------------------------------------------------------
To ratify the selection of
Ernst & Young LLP as
independent auditors of
the fund 3,167,319 28,040 18,655
* THE TERMS OF THESE CLASS III DIRECTORS EXPIRE IN 2002.
</TABLE>
22
NOTES
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
Margaret W. Chambers
Vice President and Assistant Treasurer
Mary A. Nelson
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
Douglas J. Gaylor
Stephen C. Kris
Richard J. Moynihan
W. Michael Petty
Jill C. Schaffro
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.
The Fund
For More Information
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 Disbursing Agent
and Registrar
Mellon Bank, N.A.
85 Challenger Road
Ridgefield Park, NJ 07660
(c) 1999 Dreyfus Service Corporation 425AR999
