Dreyfus New York Municipal Income, Inc.
ANNUAL REPORT September 30, 2000
(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
Contents
THE FUND
--------------------------------------------------
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
---------------------------------------------------------------------------
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, 1999 through
September 30, 2000. 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.
Despite some fluctuations due to changing economic conditions, municipal bond
prices rose modestly over the past 12 months. Most of those gains were achieved
after January 2000, with a rally in the municipal bond market. More recently,
most sectors of the municipal bond market also benefited from slowing economic
growth. Additionally, the moderating effects of the Federal Reserve Board's (the
" Fed" ) interest-rate hikes during the first half of 2000 helped the Fed to
achieve its goal of slowing the U.S. economy. Other factors such as higher
energy prices and a weak euro also served to slow economic growth.
In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above their long-term averages,
establishing unrealistic expectations for some investors. We believe that as the
risks of the stock market have become more apparent, the relative stability and
income potential of municipal bonds can make them an attractive investment as
part of a well-balanced portfolio.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com
Thank you for investing in Dreyfus New York Municipal Income, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus New York Municipal Income, Inc. perform during the period?
The fund produced a 4.25% total return(1) and income dividends of $0.4840 per
share, which is equal to an annualized distribution rate of 5.85%, over the
12-month reporting period ended September 30, 2000.(2)
We attribute our performance to a mixed investment environment. During much of
the first half of the reporting period, the municipal bond market generally
declined because of inflation fears and rising interest rates in an environment
of robust economic growth. In contrast, the market generally rallied during the
second half of the period amid signs of an economic slowdown and positive
supply-and-demand factors affecting municipal bonds from New York and other
states.
What is the fund's investment approach?
The fund seeks a high level of current income from a portfolio of municipal
bonds from New York issuers.
We tactically seek to 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 effective 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 effective duration to maintain then
current yields for as long as we think practical.
Second, we attempt to add value by selecting the tax-exempt bonds that we
believe can provide high current levels of income consistent with the fund's
management policies.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
When the reporting period began on October 1, 1999, the U.S. economy was growing
strongly, raising concerns that inflationary pressures might reemerge. In
response, the Federal Reserve Board (the "Fed") raised short-term interest rates
four times for a total increase of 1.25 percentage points during the reporting
period. Higher interest rates and inflation fears eroded the prices of many
municipal bonds.
However, the market and the fund recovered strongly during the second half of
the reporting period when signs of an economic slowdown emerged, suggesting that
the Fed' s restrictive monetary policies could be near an end. In addition, New
York and many of its municipalities have enjoyed healthy tax revenues and budget
surpluses over the past 12 months, curtailing their need to borrow and resulting
in a modestly reduced supply of securities. In fact, New York City bonds
recently received a credit-rating upgrade from the major bond rating agencies
because of their improved fiscal condition. At the same time, demand for
municipal bonds has been very strong from New York residents seeking to protect
newly created wealth from the stock market and the technology industry. In this
environment we believe it is reasonable to expect that new issues that replace
maturities or called paper will have lower yields.
What is the fund's current strategy?
In our view, slower economic growth and fewer inflation concerns should benefit
the municipal bond market overall. However, when the economy slows, some issuers
may have more difficulty meeting their revenue projections, which could
adversely affect their credit ratings. Accordingly, we have continued to focus
on investment-grade issues that will not be subject to early redemption by their
issuers over the next several years.
October 16, 2000
(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, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Market Price per share September 30, 2000 $81_4
Shares Outstanding September 30, 2000 3,821,501
American Stock Exchange Ticker Symbol DNM
MARKET PRICE (AMERICAN STOCK EXCHANGE)
<TABLE>
<CAPTION>
Fiscal Year Ended September 30, 2000
-----------------------------------------------------------------------------------------------------------
QUARTER QUARTER QUARTER QUARTER
ENDED ENDED ENDED ENDED
DECEMBER 31, 1999 MARCH 31, 2000 JUNE 30, 2000 SEPTEMBER 30, 2000
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
High $83_8 $715_16 $715_16 $89_16
Low 71_2 71_2 71_2 713_16
Close 73_4 77_8 713_16 81_4
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE GAIN based on change in Market Price*
<S> <C>
October 21, 1988 (commencement of operations)
through September 30, 2000 73.83%
October 1, 1990 through September 30, 2000 66.71
October 1, 1995 through September 30, 2000 16.07
October 1, 1999 through September 30, 2000 4.95
January 1, 2000 through September 30, 2000 11.34
April 1, 2000 through September 30, 2000 7.92
July 1, 2000 through September 30, 2000 7.12
NET ASSET VALUE PER SHARE
October 21, 1988 (commencement of operations) $ 9.21
September 30, 1999 9.30
December 31, 1999 8.92
March 31, 2000 9.00
June 30, 2000 8.98
September 30, 2000 9.10
PERCENTAGE GAIN based on change in Net Asset Value*
October 21, 1988 (commencement of operations)
through September 30, 2000 108.17%
October 1, 1990 through September 30, 2000 84.88
October 1, 1995 through September 30, 2000 22.80
October 1, 1999 through September 30, 2000 4.25
January 1, 2000 through September 30, 2000 6.71
April 1, 2000 through September 30, 2000 4.16
July 1, 2000 through September 30, 2000 2.79
* WITH DIVIDENDS REINVESTED.
</TABLE>
STATEMENT OF INVESTMENTS
September 30, 2000
<TABLE>
<CAPTION>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.2% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW YORK--86.7%
Albany Industrial Development Agency, LR
(New York Assembly Building Project) 7.75%, 1/1/2010 1,080,000 1,106,341
Erie County Industrial Development Agency,
Life Care Community Revenue
(Episcopal Church Home) 5.875%, 2/1/2018 1,500,000 1,265,490
Monroe Tobacco Asset Securitization Corp.,
Tobacco Settlement Asset Backed
6.625%, 6/1/2042 500,000 516,155
New York City 7.25%, 8/15/2007 1,500,000 1,713,945
New York City Industrial Development Agency:
Civic Facility Revenue (YMCA of Greater New York Project)
8%, 8/1/2016 (Prerefunded 8/1/2001) 965,000 (a) 1,010,799
IDR:
(Brooklyn Navy Yard--Cogen Partners) 5.75%, 10/1/2036 1,000,000 912,840
(LaGuardia Association LP Project) 6%, 11/1/2028 1,000,000 856,110
Special Facility Revenue (American Airlines Inc. Project):
5.40%, 7/1/2019 (Guaranteed; AMR Corp.) 1,390,000 1,240,686
6.90%, 8/1/2024 500,000 515,885
(Terminal One Group Association Project) 6%, 1/1/2019 1,100,000 1,116,929
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) 1,297,813
New York City Transitional Finance Authority, Future Tax Secured
Revenue 6%, 8/15/2029 1,000,000 1,034,240
New York State Dormitory Authority, Revenue:
Health, Hospital and Nursing Home (Mount Sinai Health)
6.50%, 7/1/2025 1,000,000 1,047,570
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014 100,000 114,429
(State University Educational Facilities)
6%, 5/15/2025 (Prerefunded 5/15/2005) 1,000,000 (a) 1,076,730
Secured Hospital (Saint Agnes Hospital) 5.40%, 2/15/2025 1,200,000 1,117,440
New York State Environmental Facilities Corp.,
SWDR (Occidental Petroleum Corp) 5.70%, 9/1/2028 1,600,000 1,476,448
New York State Mortgage Agency,
Homeownership Mortgage Revenue:
6.05%, 4/1/2026 880,000 891,871
6.125%, 4/1/2027 1,980,000 2,016,076
6.40%, 4/1/2027 965,000 998,543
Onondaga County Industrial Development Agency,
IDR (Weyerhaeuser Project) 9%, 10/1/2007 1,200,000 1,392,888
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Port Authority of New York and New Jersey 4.76%, 12/1/2012 1,000,000 (b,c) 993,620
Scotia Housing Authority, Housing Revenue
(Coburg Village Inc. Project)
6.20%, 7/1/2038 1,150,000 961,642
Suffolk County Industrial Development Agency, IDR
(Nissequogue Cogen Partners Facility) 5.50%, 1/1/2023 1,500,000 1,280,085
TSASC, Inc., Tobacco Flexible Amortization Bonds
6.375%, 7/15/2039 1,000,000 1,006,390
United Nations Development Corp., Revenue
5.60%, 7/1/2026 1,000,000 951,920
Watervliet Housing Authority, Residential Housing
(Beltrone Living Center Project) 6.125%, 6/1/2038 1,000,000 848,610
Yonkers Industrial Development Agency, Civic Facility Revenue
(Saint Joseph's Hospital) 6.20%, 3/1/2020 1,600,000 1,388,112
U.S. RELATED--10.5%
Commonwealth of Puerto Rico 7.201%, 7/1/2018
(Insured; AMBAC) 1,500,000 (b,c) 1,610,625
Commonwealth of Puerto Rico Highway and
Transportation Authority,
Transportation Revenue 5.06%, 7/1/2038 1,000,000 (b,c) 799,250
Commonwealth of Puerto Rico Infrastructure Financing Authority,
Special Tax Revenue 7.90%, 7/1/2007 225,000 229,387
Virgin Islands Public Finance Authority, Revenue
6.375%, 10/1/2019 1,000,000 1,025,030
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $34,670,656) 33,813,899
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--.9%
------------------------------------------------------------------------------------------------------------------------------------
City of New York, VRDN
5.55% (Insured; MBIA, SBPA; Bank of Nova Scotia)
(cost $300,000) 300,000 (d) 300,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $34,970,656) 98.1% 34,113,899
CASH AND RECEIVABLES (NET) 1.9% 643,928
NET ASSETS 100.0% 34,757,827
</TABLE>
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
IDR Industrial Development Revenue
LR Lease Revenue
MBIA Municipal Bond Investors
Assurance Insurance Corporation
SBPA Standby Bond Purchase Agreement
SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 17.0
AA Aa AA 17.4
A A A 23.0
BBB Baa BBB 16.2
F1 Mig1 SP1 .9
Not Rated (e) Not Rated (e) Not Rated( e) 25.5
100.0
</TABLE>
(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. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION,
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30, 2000, THESE
SECURITIES AMOUNTED TO $3,403,495 OR 9.8% OF NET ASSETS.
(D) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities-See Statement of Investments 34,970,656 34,113,899
Cash 74,954
Interest receivable 633,816
Prepaid expenses 5,348
34,828,017
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 23,827
Accrued expenses 46,363
70,190
--------------------------------------------------------------------------------
NET ASSETS ($) 34,757,827
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 35,468,166
Accumulated undistributed investment income--net 18,859
Accumulated net realized gain (loss) on investments 127,559
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (856,757)
--------------------------------------------------------------------------------
NET ASSETS ($) 34,757,827
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized) 3,821,501
NET ASSET VALUE per share ($) 9.10
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended September 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 2,244,876
EXPENSES:
Management fee--Note 3(a) 240,480
Directors' fees and expenses--Note 3(c) 36,317
Shareholder servicing costs--Note 3(b) 30,211
Auditing fees 20,600
Shareholders' reports 16,718
Registration fees 12,327
Legal fees 8,377
Custodian fees--Note 3(b) 2,434
Miscellaneous 10,546
TOTAL EXPENSES 378,010
INVESTMENT INCOME--NET 1,866,866
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 127,935
Net unrealized appreciation (depreciation) on investments (819,744)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (691,809)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,175,057
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
----------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 1,866,866 1,938,193
Net realized gain (loss) on investments 127,935 91,244
Net unrealized appreciation (depreciation)
on investments (819,744) (2,754,560)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,175,057 (725,123)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (1,849,607) (2,029,436)
Net realized gain on investments (89,423) (103,583)
TOTAL DIVIDENDS (1,939,030) (2,133,019)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
DIVIDENDS REINVESTED-NOTE 1(C) -- 181,077
TOTAL INCREASE (DECREASE) IN NET ASSETS (763,973) (2,677,065)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 35,521,800 38,198,865
END OF PERIOD 34,757,827 35,521,800
Undistributed investment income--net 18,859 1,600
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
INCREASE IN SHARES OUTSTANDING AS A RESULT OF
DIVIDENDS REINVESTED -- 18,298
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>
<CAPTION>
Year Ended September 30,
-------------------------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 9.30 10.04 9.97 9.90 10.10
Investment Operations:
Investment income--net .49 .51 .55 .58 .59
Net realized and unrealized
gain (loss) on investments (.19) (.69) .12 .12 (.14)
Total from Investment Operations .30 (.18) .67 .70 .45
Distributions:
Dividends from investment income--net (.48) (.53) (.58) (.60) (.60)
Dividends from net realized gain
on investments (.02) (.03) (.02) (.03) (.05)
Total Distributions (.50) (.56) (.60) (.63) (.65)
Net asset value, end of period 9.10 9.30 10.04 9.97 9.90
Market Value, end of period 8 1_4 8 3_8 10 3_16 10 1_4 10 1_4
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) 4.95 (12.83) 5.43 6.58 12.92
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.10 1.01 1.06 1.03 1.03
Ratio of net investment income
to average net assets 5.43 5.20 5.49 5.85 5.94
Portfolio Turnover Rate 14.28 10.51 21.43 16.53 9.59
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 34,758 35,522 38,199 37,603 37,127
(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"), which is a
wholly-owned subsidiary of Mellon Financial Corporation. The fund's Common Stock
trades on the American Stock Exchange under the ticker symbol DNM.
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, 2000, the Board of Directors declared a cash dividend of $.04
per share from investment income-net, payable on October 27, 2000 to
shareholders of record as of the close of business on October 13, 2000.
The Fund
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 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, 2000, 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 fees 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, 2000.
(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, 2000, the fund was charged $28,553
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, 2000, the fund was
charged $2,434 pursuant to the custody agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective August 3, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $45,000 and an attendance fee of $5,000 for each in person meeting
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The chairman of the Board receives an additional 25% of such
compensation. Prior to August 3, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund an annual fee
of $2,500 and an attendance fee of $250 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board Members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2000, amounted to
$4,477,870 and $4,726,874, respectively.
At September 30, 2000, accumulated net unrealized depreciation on investments
was $856,757, consisting of $903,726 gross unrealized appreciation and
$1,760,483 gross unrealized depreciation.
At September 30, 2000, 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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, 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 accounting principles generally
accepted in the United States.
New York, New York
November 6, 2000
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 dividend 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, 2000:
--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 $.0234 per share as a long-term capital gain
distribution of the $.0644 per share paid on December 28, 1999.
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 2000 calendar year on Form 1099-DIV which
will be mailed by January 31, 2001.
The Fund
PROXY RESULTS (Unaudited)
During the fiscal year ended September 30, 2000, shareholders voted on the
following proposals presented at the annual shareholders' meeting held May 19,
2000. The description of each proposal and the number of shares voted are as
follows:
<TABLE>
<CAPTION>
Shares
----------------------------------------------
For Authority Withheld
-----------------------------------------------
To elect three Class I Directors:*
<S> <C> <C>
Lucy Wilson Benson 3,025,644 131,158
David W. Burke 3,025,494 131,308
Martin D. Fife 3,022,691 134,111
Shares
------------------------------------------------------------------------------
For Against Abstained
------------------------------------------------------------------------------
To ratify the selection of
Ernst & Young LLP as
independent auditors of
the fund 3,045,203 26,169 85,430
* THE TERMS OF THESE CLASS I DIRECTORS EXPIRE IN 2003.
</TABLE>
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
Stephen E. Canter
Vice President
Mark N. Jacobs
Vice President and Treasurer
Joseph Connolly
Executive Vice President
Monica S. Wieboldt
Secretary
Michael A. Rosenberg
Assistant Secretary
Steven F. Newman
Assistant Secretary
Robert R. Mullery
Assistant Treasurer
Gregory S. Gruber
PORTFOLIO MANAGERS
Joseph P. Darcy
A. Paul Disdier
Douglas J. Gaylor
Joseph Irace
Colleen Meehan
Richard J. Moynihan
W. Michael Petty
Scott Sprauer
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) 2000 Dreyfus Service Corporation 858AR009
