[Cover Page]
OPPENHEIMER FLORIDA TAX-EXEMPT FUND
Annual Report July 31, 1996
[Logo] OppenheimerFunds /R/
<PAGE>
- -----
YIELD
- -----
STANDARDIZED YIELDS
For the 30 Days Ended 7/31/96:(3)
Class A
4.28%
Class B
3.76%
Class C
3.77%
This Fund is for FLORIDA residents who need an investment that's EXEMPT from
current INCOME TAXES.
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
Oppenheimer Florida Tax-Exempt Fund invests in a diversified portfolio
of Florida municipal bonds. As a Fund shareholder, you receive income that is
free from federal taxes and the benefit of owning an investment whose shares are
exempt from Florida intangible personal property taxes.(1) Your dividends don't
increase your taxable income the way taxable investments do, so you can keep
more of what you earn.
Florida Tax-Exempt Fund is managed by an experienced team of municipal
bond specialists who research investments thoroughly before they are included in
the Fund's portfolio.
- -----------
PERFORMANCE
- -----------
Your Fund's average annual total returns at maximum offering price for Class A
shares for the 1-year period ended 7/31/96 and since inception of the Class on
10/1/93 were 1.52% and 2.84%, respectively. For Class B shares, average annual
total returns for the 1-year period ended 7/31/96 and since inception of the
Class on 10/1/93 were 0.79% and 2.92%, respectively. For Class C shares,
cumulative total return since inception on 8/29/95 was 4.64%.(2)
- -------
OUTLOOK
- -------
"We think the outlook is positive. From our perspective, the economic growth
rate that set off increases in interest rates will not be enough to make
inflation a serious concern. Thus, we expect any further increase in interest
rates in the near future will be moderate and that the general bond market could
strengthen later in the year."
Robert Patterson, Portfolio Manager
July 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. Past performance does not guarantee future results.
Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost. For more complete information, please review the
prospectus carefully before you invest.
1. A portion of the distributions paid by the Fund may be subject to federal and
state taxes. For investors subject to federal and/or state alternative minimum
tax (AMT), the Fund's distributions may increase this tax. Capital gains
distributions, if any, are taxed as capital gains.
2. Class A returns show results of hypothetical investments on 7/31/95 and
10/1/93 (inception of class), after deducting the current maximum initial sales
charge of 4.75%. Class B returns show results of hypothetical investments on
7/31/95 and 10/1/93 (inception of class), after the deduction of the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception). Class
C return shows results of a hypothetical investment on 8/29/95, after the
deduction of the 1% contingent deferred sales charge. When such returns are
calculated in the same manner for the period ended 6/30/96, they are as follows:
for Class A shares, 1.07% and 2.56% for the 1-year period and since inception
of the class; for Class B shares, 0.32% and 2.63% for the 1-year period and
since inception of the class; and for Class C shares, cumulative total return
since inception of the class was 3.55%. An explanation of the different
performance calculations is in the Fund's prospectus.
3. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 7/31/96, divided by the maximum offering price
at the end of the period, compounded semiannually and then annualized. Falling
net asset values will tend to artificially raise yields.
2 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
BRIDGET A. MACASKILL
President
Oppenheimer
Florida Tax-Exempt Fund
Dear Shareholder:
While municipal bonds have been affected by the concern over inflation
in recent months, we believe that the outlook remains favorable -- especially if
you're in a high tax bracket.
Let's review the first half of the year. The most widely quoted interest
rate on long-term bonds, the benchmark 30-year U.S. Treasury bond, rose from 6%
in January to 7% by mid-year. Municipal bond yields tend to track Treasuries
pretty closely, yielding slightly less -- about 80-85% of Treasuries -- because
their interest is free from federal income tax. But during those six months,
yields on muni bonds rose proportionately, increasing their after-tax advantage.
So, while the current rise in interest rates over the past six months
pushed bond prices lower, our outlook for the rest of the year is much more
positive. Although the prices of food and gas, the most common gauges of
inflation, have increased recently, we believe that inflation is likely to
remain under control. We feel that food production will be able to meet demand
and, unlike previous energy disruptions, there doesn't appear to be a shortage
of crude oil in the world today. Thus, we are confident that the general
long-term trend is for moderate growth and low inflation. And while we
anticipate that interest rates will fluctuate over the near term, we feel bond
market conditions should improve in the coming months.
A number of other developments bode well for the municipal bond market.
The first is the muni bond's continuing status as one of the few true remaining
tax shelters, as earlier proposals for flat tax legislation seem to have quieted
down considerably. Another factor favorably impacting the municipal bond market
is the strengthening financial condition of many municipalities throughout the
United States. This is particularly true of California, which is one of the
nation's largest issuers of municipal bonds.
Finally, the tax-free market is also benefiting from a shrinking supply
of securities. About ten years ago, a surge of municipal bond issuance occurred
just prior to the Tax Reform Act of 1986. By today's standards, these bonds paid
very high interest. This year, billions of dollars worth of these bonds are
being redeemed by issuers who were contractually obligated to wait at least ten
years to "call" them. As a result, the supply of securities is falling, and the
former bondholders are receiving cash which they will either reinvest in the
municipal bond market or place elsewhere.
All things considered--the prospect of lower interest rates, the
diminishing likelihood of major tax legislation, the strengthening economies of
states and localities, as well as the shrinking supply of securities--the
outlook is very positive for municipal bond investors.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/S/ Bridget A. Macaskill
Bridget A. Macaskill
August 21, 1996
3 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
ROBERT PATTERSON
Portfolio Manager
Q+A
An interview with your Fund's managers.
- ----------------------------------------------
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
- ----------------------------------------------
Though the bond market overall was somewhat negative as a result of investors'
concerns that the economy was strengthening and interest rates would rise over
the near term, our performance year-to-date was strong in comparison with
similar funds. The strategic positioning decisions we made going into this
period ranked us 26th against a peer group of 77 ranked Florida tax-free bond
funds.(1)
- ----------------------------------------------------------------------
WHAT INVESTMENT STRATEGIES MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
- ----------------------------------------------------------------------
A major factor in the Fund's performance was our emphasis on pre-refunded bonds,
with shorter maturities, which performed extremely well versus other municipal
bonds. Because these issuers have escrowed money to repay bond holders, pre-
refunded bonds have low credit risk and are less sensitive to changes in
interest rates. With interest rates rising over much of the period, these bonds
performed extremely well compared to longer maturity municipal bonds.
Our shorter-than-average duration, a measure of the portfolio's price
sensitivity, was particularly helpful in a rising rate environment. While a long
duration strategy can benefit bond investors when rates decline, the opposite
was what we needed during this period.(2)
- -----------------------------------
DID ANY INVESTMENTS PERFORM POORLY?
- -----------------------------------
As always, our philosophy is to spread the Fund's assets across a range of
fixed-income securities. Unfortunately, our holdings in long-term municipal
bonds underperformed other municipal bond sectors. But, we lowered our weighting
in this sector over the past six months which helped the Fund's performance.
Should rates turn around and begin to head lower again, these bonds have the
potential to appreciate significantly.
- -----------------------------------------------------
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
- -----------------------------------------------------
Because we believe the market and interest rate environment will be slightly
better later in the year, we're buying securities with a higher degree of
exposure to the market. We're buying some longer-term bonds that tend to be more
volatile, but have the potential to outperform shorter-term bonds. At the same
time, by maintaining a fully diversified portfolio, we're taking appropriate
measures to offset the possibility that rates may continue to rise.
We've also been buying bonds issued by projects and localities that are
well-positioned to benefit from ongoing regional economic recovery. We purchased
Florida housing bonds and insured zero coupon bonds for both yield and strategic
positioning.
- ----------------------------------
WHAT IS YOUR OUTLOOK FOR THE FUND?
- ----------------------------------
We think the outlook is positive. From our perspective, the economic growth
rate that set off increases in interest rates will not be enough to make
inflation a serious concern. Thus, we expect any further increase in interest
rates in the near future will be moderate and that the general bond market could
strengthen later in the year.//
1. Source: Lipper Analytical Services 7/31/96. This comparison does not take
sales charges into consideration.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================================
STATEMENT OF INVESTMENTS JULY 31, 1996
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
================================================================================================================================
MUNICIPAL BONDS AND NOTES - 99.4%
- --------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 89.3%
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alachua County, Florida Health Facilities
Authority Revenue Revenue Refunding Bonds,
Santa Fe Healthcare Facilities Project,
6%, 11/15/09 Baa1/AAA $1,000,000 $ 1,021,452
--------------------------------------------------------------------------------------------------------------------------
Brevard County, Florida Housing Finance
Authority Single Family Mtg. Revenue
Bonds, 6.70%, 9/1/27 Aaa/NR 1,000,000 1,031,709
--------------------------------------------------------------------------------------------------------------------------
Broward County, Florida Resource Recovery
Revenue Bonds:
Broward Waste Energy-LP North Project,
7.95%, 12/1/08(1) A/A 1,825,000 2,014,418
Ses Broward Co.-LP South Project, 7.95%, 12/1/08 A/A- 1,425,000 1,572,902
--------------------------------------------------------------------------------------------------------------------------
Broward County, Florida School District General
Obligation Bonds, Prerefunded, 7.125%, 2/15/08 Aaa/AAA 750,000 813,993
--------------------------------------------------------------------------------------------------------------------------
Clay County, Florida Housing Finance Authority
Revenue Bonds, Single Family Mtg., 6.55%, 3/1/28 Aaa/NR 1,100,000 1,123,487
--------------------------------------------------------------------------------------------------------------------------
Collier County, Florida Health Facilities
Authority Revenue Refunding Bonds, The Moorings,
Inc. Project, 7%, 12/1/19 NR/BBB+/A- 1,000,000 1,036,319
--------------------------------------------------------------------------------------------------------------------------
Dade County, Florida General Obligation
Refunding Bonds, FGIC Insured, 12%, 10/1/04 Aaa/AAA/AAA 100,000 146,789
--------------------------------------------------------------------------------------------------------------------------
Dade County, Florida Industrial Development
Authority Revenue Bonds, Miami Cerebral Palsy
Services Project, 8%, 6/1/22 NR/NR 1,000,000 1,026,481
--------------------------------------------------------------------------------------------------------------------------
Dade County, Florida Special Obligation Revenue
Refunding Bonds, Series B, AMBAC Insured, Zero
Coupon, 6.25%, 10/1/14(2) Aaa/AAA/AAA 4,755,000 1,593,339
--------------------------------------------------------------------------------------------------------------------------
Florida Housing Finance Agency Revenue Bonds,
Maitland Club Apts. Project, Series B-1, AMBAC
Insured, 6.75%, 8/1/14 Aaa/AAA/AAA 1,000,000 1,040,420
--------------------------------------------------------------------------------------------------------------------------
Florida State Board of Education Capital Outlay
Public Education General Obligation Bonds,
Prerefunded, Series A, 7.25%, 6/1/23 Aaa/AAA 2,210,000 2,459,708
--------------------------------------------------------------------------------------------------------------------------
Florida State Board of Education Capital Outlay
Public Education General Obligation Refunding
Bonds, Series D, 5.125%, 6/1/22 Aa/AA/AA 700,000 638,354
--------------------------------------------------------------------------------------------------------------------------
Florida State Division of Bond Finance General
Services Revenue Bonds:
Consolidated & Recreation Lands-Department of
Natural Resources, Prerefunded, Series A,
MBIA Insured, 7.25%, 7/1/06 Aaa/AAA 1,000,000 1,077,109
Sunshine Skyway Project,
Prerefunded, 10.25%, 6/1/08 Aaa/AAA 1,000,000 1,071,781
--------------------------------------------------------------------------------------------------------------------------
Florida State Turnpike Authority Revenue
Bonds, Prerefunded, 7.50%, 7/1/19 Aaa/NR/AAA 700,000 773,322
--------------------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida Aviation Authority
Revenue Refunding Bonds, Tampa International
Airport, Series B, FGIC Insured, 5.50%, 10/1/13 Aaa/AAA/AAA 900,000 885,210
</TABLE>
5 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================================
STATEMENT OF INVESTMENTS (CONTINUED)
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hillsborough County, Florida Industrial
Development Authority Pollution Control
Revenue Refunding Bonds, Tampa Electric Co.
Project, 8%, 5/1/22 Aa3/AA/AA- $1,000,000 $ 1,185,207
--------------------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida Utility
Revenue Refunding Bonds, Series A, FSA
Insured, 7%, 8/1/14 Aaa/AAA 750,000 829,819
--------------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida Electric Authority Revenue
Bonds, Prerefunded, Series 3-A, 6.875%, 10/1/12 Aaa/AAA/AA+ 1,360,000 1,407,118
--------------------------------------------------------------------------------------------------------------------------
Martin County Florida Industrial Development
Authority Revenue Refunding Bonds, Indiantown
Cogeneration Project, Series A, 7.875%, 12/15/25 Baa3/BBB-/BBB 1,000,000 1,123,180
--------------------------------------------------------------------------------------------------------------------------
Orange County, Florida Housing Finance Authority
Single Family Mtg. Revenue Bonds, 6.85%, 10/1/27 Aaa/AAA 1,000,000 1,042,241
--------------------------------------------------------------------------------------------------------------------------
Orange County, Florida Sales Tax Revenue Bonds,
Series B, MBIA Insured, 5.375%, 1/1/24 Aaa/AAA 1,000,000 936,074
--------------------------------------------------------------------------------------------------------------------------
Orlando, Florida Utilities Commission
Water & Electric Revenue Bonds:
Inverse Floater, 7.174%, 10/6/17(3) Aa/AA- 1,000,000 916,028
Prerefunded, Series C, 7%, 10/1/23 Aaa/AA- 600,000 658,111
--------------------------------------------------------------------------------------------------------------------------
Port St. Lucie, Florida Utility Revenue Bonds,
Series A, FGIC Insured, Zero Coupon, 6.25%,
9/1/16(2) Aaa/AAA 1,045,000 306,591
--------------------------------------------------------------------------------------------------------------------------
St. Petersburg, Florida Public Improvement
Revenue Refunding Bonds, MBIA Insured,
6.375%, 2/1/12 Aaa/AAA 750,000 794,382
--------------------------------------------------------------------------------------------------------------------------
Tampa, Florida Utility Special Tax RevenuE Bonds,
Prerefunded, AMBAC Insured, 8.125%, 10/1/15 Aaa/AAA/AAA 300,000 320,407
--------------
28,845,951
- --------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 10.1%
--------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct & Sewer
Authority Revenue Bonds, Escrowed to Maturity,
10.25%, 7/1/09 Aaa/AAA 400,000 553,927
--------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway & Transportation
Authority Revenue Bonds:
Prerefunded, Series T, 6.625%, 7/1/18 NR/AAA 500,000 555,855
Series W, Inverse Floater, 6.62%, 7/1/10(3) Baa1/A 1,000,000 904,820
--------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Guaranteed
Public Education & Health Facilities Revenue
Bonds, Prerefunded, Series L, 6.875%, 7/1/21 Aaa/AAA 600,000 674,704
--------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority
Revenue Guaranteed Bonds, Prerefunded,
Series K, 6.875%, 7/1/21 Aaa/AAA 500,000 562,253
------------
3,251,559
--------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $32,218,299) 99.4% 32,097,510
--------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.6 205,865
------ ------------
NET ASSETS 100.0% $32,303,375
====== ============
</TABLE>
6 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
==========================================================================
STATEMENT OF INVESTMENTS (CONTINUED)
1. Securities with an aggregate market value of $2,014,418 are held in
collateralized accounts to cover initial margin requirements on open
futures sales contracts. See Note 5 of Notes to Financial Statements.
2. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
3. Represents the current interest rate for a variable rate bond. These
bonds known as "inverse floaters" pay interest at a rate that varies
inversely with short-term interest rates. As interest rates rise, inverse
floaters produce less current income. Their price may be more volatile
than the price of a comparable fixed-rate security. Inverse floaters
amount to $1,820,848 or 5.64% of the Fund's net assets at July 31, 1996.
As of July 31, 1996, securities subject to the alternative minimum tax
amounted to $5,361,037 or 16.60% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
INDUSTRY MARKET VALUE PERCENT
-------- ------------ -------
<S> <C> <C>
Utilities:
Electric $ 5,891,425 18.3%
General 2,981,258 9.3
General Obligation Bonds 5,295,801 16.6
Transportation 4,985,370 15.5
Housing 4,237,857 13.2
Special Tax Bonds 3,606,521 11.2
Hospitals 3,084,252 9.6
Pollution Control 2,015,026 6.3
=========== ======
$32,097,510 100.0%
=========== ======
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1996
============================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (cost $32,218,299) - see accompanying statement $32,097,510
-------------------------------------------------------------------------------------------------
Cash 13,982
-------------------------------------------------------------------------------------------------
Receivables:
Interest 463,001
Shares of beneficial interest sold 98,299
Daily variation on futures contracts - Note 5 7,188
-------------------------------------------------------------------------------------------------
Deferred organization costs - Note 1 642
-------------------------------------------------------------------------------------------------
Other 4,782
------------
Total assets 32,685,404
============================================================================================================================
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 209,309
Dividends 99,934
Trustees' fees 39,008
Shareholder reports 9,468
Distribution and service plan fees 4,091
Custodian fees 1,211
Transfer and shareholder servicing agent fees 909
Other 18,099
------------
Total liabilities 382,029
============================================================================================================================
NET ASSETS $32,303,375
============
============================================================================================================================
COMPOSITION OF Paid-in capital $32,797,540
NET ASSETS -------------------------------------------------------------------------------------------------
Overdistributed net investment income (2,852)
-------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (375,211)
-------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments - Notes 3 and 5 (116,102)
------------
Net assets $32,303,375
============
============================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $19,366,095 and 1,749,139 shares of beneficial interest outstanding) $11.07
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $11.62
-------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $12,865,019 and 1,160,156 shares of beneficial interest outstanding) $11.09
-------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $72,261 and 6,528 shares of beneficial interest outstanding) $11.07
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
========================================================================================================
STATEMENTS OF OPERATIONS
SEVEN
MONTHS ENDED YEAR ENDED
JULY 31, 1996(1) DECEMBER 31, 1995
============================================================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME Interest $ 1,201,396 $1,574,194
============================================================================================================================
EXPENSES Management fees - Note 4 109,426 151,497
-------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 26,792 36,538
Class B 74,744 107,478
Class C 455 13
-------------------------------------------------------------------------------------------------
Trustees' fees and expenses - Note 1 18,642 41,364
-------------------------------------------------------------------------------------------------
Shareholder reports 15,079 24,543
-------------------------------------------------------------------------------------------------
Legal and auditing fees 11,996 27,955
-------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 11,746 21,996
-------------------------------------------------------------------------------------------------
Custodian fees and expenses 6,198 3,441
-------------------------------------------------------------------------------------------------
Insurance expenses 3,141 5,091
-------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 227 2,419
Class B 241 1,287
Class C 26 --
-------------------------------------------------------------------------------------------------
Other 836 4,532
----------------------------------
Total expenses 279,549 428,154
Less expenses paid indirectly - Note 4 (4,385) (2,984)
Less reimbursement and assumption of expenses by
OppenheimerFunds, Inc. - Note 4 (20,298) (209,449)
----------------------------------
Net expenses 254,866 215,721
============================================================================================================================
NET INVESTMENT INCOME 946,530 1,358,473
============================================================================================================================
REALIZED AND Net realized gain (loss) on:
UNREALIZED GAIN (LOSS) Investments 266,721 (116,007)
Closing of futures contracts (87,097) --
----------------------------------
Net realized gain (loss) 179,624 (116,007)
-------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments (1,072,986) 2,622,466
----------------------------------
Net realized and unrealized gain (loss) (893,362) 2,506,459
============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 53,168 $3,864,932
==================================
</TABLE>
1. The Fund changed its fiscal year end from
December 31 to July 31.
See accompanying Notes to Financial Statements.
9 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
===================================
STATEMENTS OF CHANGES IN NET ASSETS
SEVEN MONTHS
ENDED
JULY 31, YEAR ENDED DECEMBER 31,
1996(1) 1995 1994
====================================================================================================================================
<S> <C> <C> <C> <C>
OPERATIONS Net investment income $ 946,530 $ 1,358,473 $ 932,745
---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 179,624 (116,007) (455,786)
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (1,072,986) 2,622,466 (1,795,681)
----------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 53,168 3,864,932 (1,318,722)
====================================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS Class A (584,598) (824,373) (574,828)
TO SHAREHOLDERS Class B (351,171) (528,564) (357,917)
Class C (2,112) (79) --
====================================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions - Note 2:
Class A 503,417 5,923,134 6,272,842
Class B 574,639 3,616,484 4,026,577
Class C 35,925 38,376 --
====================================================================================================================================
NET ASSETS Total increase 229,268 12,089,910 8,047,952
---------------------------------------------------------------------------------------------------------------
Beginning of period 32,074,107 19,984,197 11,936,245
----------------------------------------------------
End of period (including overdistributed net investment
income of $2,852, $7,891 and $5,485, respectively) $32,303,375 $32,074,107 $19,984,197
====================================================
</TABLE>
1. The Fund changed its fiscal year end from
December 31 to July 31.
See accompanying Notes to Financial Statements.
10 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
FINANCIAL HIGHLIGHTS
CLASS A CLASS B
--------------------------------------- -----------------------------------------------
SEVEN MONTHS SEVEN MONTHS
ENDED ENDED
JULY 31, YEAR ENDED DECEMBER 31, JULY 31, YEAR ENDED DECEMBER 31,
1996(2) 1995 1994 1993(3) 1996(2) 1995 1994 1993(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $11.40 $ 10.26 $ 11.79 $11.43 $ 11.42 $ 10.27 $11.81 $11.43
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .36 .63 .64 .14 .31 .55 .56 .12
Net realized and unrealized gain (loss) (.34) 1.14 (1.53) .36 (.34) 1.15 (1.54) .38
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .02 1.77 (.89) .50 (.03) 1.70 (.98) .50
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (.35) (.63) (.64) (.14) (.30) (.55) (.56) (.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.07 $ 11.40 $ 10.26 $11.79 $ 11.09 $ 11.42 $10.27 $11.81
==========================================================================================
====================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 0.25% 17.60% (7.66)% 4.39% (0.19)% 16.81% (8.42)% 4.35%
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $19,366 $19,377 $11,992 $7,062 $12,865 $12,658 $7,992 $4,874
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $18,415 $14,508 $9,741 $2,471 $12,843 $10,772 $6,987 $2,304
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.50%(5) 5.71% 5.90% 5.08%(5) 4.75%(5) 4.92% 5.13% 4.20%(5)
Expenses, before reimbursement and
voluntary assumption by the Manager
or Distributor(6) 1.23%(5) 1.36% 1.25% 1.89%(5) 1.97%(5) 2.11% 1.99% 2.20%(5)
Expenses, net of reimbursement and
voluntary assumption by the Manager
or Distributor 1.09%(5) 0.53% 0.29% -- 1.83%(5) 1.29% 1.03% 0.38%(5)
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 21.2% 18.4% 30.4% -- 21.2% 18.4% 30.4% --
</TABLE>
<TABLE>
<CAPTION>
============================================================
FINANCIAL HIGHLIGHTS
CLASS C
--------------------------------------
SEVEN MONTHS
ENDED PERIOD ENDED
JULY 31, DECEMBER 31,
1996(2) 1995(1)
================================================================================
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $11.40 $10.96
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .31 .20
Net realized and unrealized gain (loss) (.34) .44
- --------------------------------------------------------------------------------
Total income (loss) from investment
operations (.03) .64
- --------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (.30) (.20)
- --------------------------------------------------------------------------------
Net asset value, end of period $11.07 $11.40
======================================
================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) (0.22)% 5.86%
================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $72 $39
- --------------------------------------------------------------------------------
Average net assets (in thousands) $78 $ 5
- --------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.68%(5) 4.68%(5)
Expenses, before reimbursement and
voluntary assumption by the Manager
or Distributor(6) 1.99%(5) 1.92%(5)
Expenses, net of reimbursement and
voluntary assumption by the Manager
or Distributor 1.87%(5) 1.43%(5)
- --------------------------------------------------------------------------------
Portfolio turnover rate(7) 21.2% 18.4%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to
December 31, 1995.
2. The Fund changed its fiscal year from December 31 to July 31.
3. For the period from October 1, 1993 (commencement of operations) to
December 31, 1993.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
5. Annualized.
6. Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended July 31, 1996 were $8,561,554 and $6,588,824, respectively.
See accompanying Notes to Financial Statements.
11 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Florida Tax-Exempt Fund (the Fund) is a separate series of
Oppenheimer Multi-State Tax-Exempt Trust, a non-diversified, open-end
management investment company registered under the Investment Company Act
of 1940, as amended. On June 6, 1996, the Board of Trustees elected to
change the fiscal year end of the Fund from December 31 to July 31.
Accordingly, these financial statements include information for the seven
month period from January 1, 1996 to July 31, 1996. The Fund's investment
objective is to seek as high a level of current interest income exempt from
federal income and Florida state taxes for individual investors as is
available from municipal securities and consistent with preservation of
capital. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager). The Fund offers Class A, Class B and Class C shares. Class A
shares are sold with a front-end sales charge. Class B and Class C shares
may be subject to a contingent deferred sales charge. All classes of shares
have identical rights to earnings, assets and voting privileges, except
that each class has its own distribution and/or service plan, expenses
directly attributable to a particular class and exclusive voting rights
with respect to matters affecting a single class. Class B shares will
automatically convert to Class A shares six years after the date of
purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
INVESTMENT VALUATION. Portfolio securities are valued at the close of the
New York Stock Exchange on each trading day. Listed and unlisted securities
for which such information is regularly reported are valued at the last
sale price of the day or, in the absence of sales, at values based on the
closing bid or asked price or the last sale price on the prior trading day.
Long-term and short-term "non-money market" debt securities are valued by a
portfolio pricing service approved by the Board of Trustees. Such
securities which cannot be valued by the approved portfolio pricing service
are valued using dealer-supplied valuations provided the Manager is
satisfied that the firm rendering the quotes is reliable and that the
quotes reflect current market value, or are valued under consistently
applied procedures established by the Board of Trustees to determine fair
value in good faith. Short-term "money market type" debt securities having
a remaining maturity of 60 days or less are valued at cost (or last
determined market value) adjusted for amortization to maturity of any
premium or discount.
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses
(other than those attributable to a specific class) and gains and losses
are allocated daily to each class of shares based upon the relative
proportion of net assets represented by such class. Operating expenses
directly attributable to a specific class are charged against the
operations of that class.
FEDERAL TAXES. The Fund intends to continue to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At July 31, 1996, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $371,000, which expires in 2002 and 2003.
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement
plan for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during the years of service. During
the seven months ended July 31, 1996, a provision of $14,690 was made for
the Fund's projected benefit obligations, and payments of $1,011 were made
to retired trustees, resulting in an accumulated liability of $39,008 at
July 31, 1996.
ORGANIZATION COSTS. The Manager advanced $1,480 for organization and
start-up costs of the Fund. Such expenses are being amortized over a five
year period from the effective date operations commenced. In the event that
all or part of the Manager's initial investment in shares of the Fund is
withdrawn during the amortization period, the redemption proceeds will be
reduced to reimburse the Fund for any unamortized expenses, in the same
ratio as the number of shares redeemed bears to the number of initial
shares outstanding at the time of such redemption.
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends
separately for Class A, Class B and Class C shares from net investment
income each day the New York Stock Exchange is open for business and pay
such dividends monthly. Distributions from net realized gains on
investments, if any, will be declared at least once each year.
12 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income
(loss) and net realized gain (loss) may differ for financial statement and
tax purposes primarily because of premium amortization for tax purposes.
The character of the distributions made during the year from net investment
income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gain (loss) was
recorded by the Fund.
During the seven months ended July 31, 1996, the Fund changed the
classification of distributions to shareholders to better disclose the
differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during
the seven months ended July 31, 1996, amounts have been reclassified to
reflect an increase in overdistributed net investment income of $3,610.
Accumulated net realized loss on investments was decreased by the same
amount.
OTHER. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Original issue discount on
securities purchased is amortized over the life of the respective
securities, in accordance with federal income tax requirements. For bonds
acquired after April 30, 1993, on disposition or maturity, taxable ordinary
income is recognized to the extent of the lesser of gain or market discount
that would have accrued over the holding period. Realized gains and losses
on investments and unrealized appreciation and depreciation are determined
on an identified cost basis, which is the same basis used for federal
income tax purposes. The Fund concentrates its investments in Florida and,
therefore, may have more credit risks related to the economic conditions of
Florida than a portfolio with a broader geographical diversification.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SEVEN MONTHS ENDED JULY 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996(2) 1995(1) 1994
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
Class A:
Sold 324,714 $ 3,615,201 828,453 $ 9,144,873 1,094,994 $11,835,206
Dividends reinvested 21,248 235,271 29,020 318,951 23,730 253,862
Redeemed (296,530) (3,347,055) (327,025) (3,540,690) (548,471) (5,816,226)
--------- ------------ --------- ------------ ---------- ------------
Net increase 49,432 $ 503,417 530,448 $ 5,923,134 570,253 $ 6,272,842
========= ============ ========= ============ ========== ============
Class B:
Sold 169,888 $ 1,894,958 419,746 $ 4,609,025 481,494 $ 5,234,804
Dividends reinvested 10,448 115,841 15,141 166,726 10,745 114,966
Redeemed (128,987) (1,436,160) (104,153) (1,159,267) (126,967) (1,323,193)
--------- ------------ --------- ------------ ---------- ------------
Net increase 51,349 $ 574,639 330,734 $ 3,616,484 365,272 $ 4,026,577
========= ============ ========= ============ ========== ============
Class C:
Sold 6,447 $ 72,184 3,407 $ 38,376 -- $ --
Dividends reinvested 140 1,550 -- -- -- --
Redeemed (3,466) (37,809) -- -- -- --
--------- ------------ --------- ------------ ---------- ------------
Net increase 3,121 $ 35,925 3,407 $ 38,376 -- $ --
========= ============ ========= ============ ========== ============
</TABLE>
1. For the year ended December 31, 1995 for Class A and Class B shares and
for the period from August 29, 1995 (inception of offering) to December 31,
1995 for Class C shares.
2. The Funds changed its fiscal year end from December 31 to July 31.
13 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At July 31, 1996, net unrealized depreciation on investments of $120,789
was composed of gross appreciation of $457,097, and gross depreciation of
$577,886.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.60% on the
first $200 million of average annual net assets, 0.55% on the next $100
million, 0.50% on the next $200 million, 0.45% on the next $250 million,
0.40% on the next $250 million and 0.35% on net assets in excess of $1
billion. The Manager has agreed to assume Fund expenses (with specified
exceptions) in excess of the most stringent applicable regulatory limit on
Fund expenses. In addition, the Manager has voluntarily undertaken to
assume Fund expenses to the level needed to maintain a stable dividend.
For the seven months ended July 31, 1996, commissions (sales charges paid
by investors) on sales of Class A shares totaled $61,836, of which $21,269
was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of
the Manager, as general distributor, and by an affiliated broker/dealer.
Sales charges advanced to broker/dealers by OFDI on sales of the Fund's
Class B shares totaled $68,510. During the seven months ended July 31,
1996, OFDI received contingent deferred sales charges of $26,038 upon
redemption of Class B shares as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are
allocated ratably to these companies.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service
and maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed 0.25% (voluntarily reduced
to 0.15% by the Fund's Board) of the average annual net assets of Class A
shares of the Fund. OFDI uses the service fee to reimburse brokers,
dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold
Class A shares.
The Fund has adopted a reimbursement type Distribution and Service Plan for
Class B shares to reimburse OFDI for its services and costs in distributing
Class B shares and servicing accounts. Under the Plan, the Fund pays OFDI
an annual asset-based sales charge of 0.75% per year on Class B shares that
are outstanding for 6 years or less. OFDI also receives a service fee of
0.25% (voluntarily reduced to 0.15% by the Fund's Board) per year to
reimburse dealers for providing personal services for accounts that hold
Class B shares. Both fees are computed on the average annual net assets of
Class B shares, determined as of the close of each regular business day. If
the Plan is terminated by the Fund, the Board of Trustees may allow the
Fund to continue payments of the asset-based sales charge to OFDI for
certain expenses it incurred before the Plan was terminated. During the
seven months ended July 31, 1996, OFDI paid $59,299 to an affiliated
broker/dealer as reimbursement for Class B personal service and maintenance
expenses. As of July 31, 1996, OFDI had incurred unreimbursed expenses of
$484,148 for Class B.
The Fund has adopted a compensation type Distribution and Service Plan for
Class C shares to compensate OFDI for its services and costs in
distributing Class C shares and servicing accounts. Under the Plan, the
Fund pays OFDI an annual asset-based sales charge of 0.75% per year on
Class C shares. OFDI also receives a service fee of 0.25% (voluntarily
reduced to 0.15% by the Fund's Board) per year to compensate dealers for
providing personal services for accounts that hold Class C shares. Both
fees are computed on the average annual net assets of Class C shares,
determined as of the close of each regular business day. If the Plan is
terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was terminated.
14 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates or for purposes of
duration management. The Fund may also buy or write put or call options on
these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin)
are made or received by the Fund each day. The variation margin payments
are equal to the daily changes in the contract value and are recorded as
unrealized gains and losses. The Fund recognizes a realized gain or loss
when the contract is closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the value
of the underlying securities.
At July 31, 1996, the Fund had outstanding futures contracts to purchase
debt securities as follows:
<TABLE>
<CAPTION>
Number of Valuation as of Unrealized
Expiration Date Futures Contracts July 31, 1996 Appreciation
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Bonds 9/96 10 $1,129,062 $4,687
</TABLE>
15 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer Multi-State Tax-Exempt
Trust:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Florida Tax- Exempt Fund (a series of Oppenheimer
Multi-State Tax-Exempt Trust) as of July 31, 1996, and the statements of
operations for the seven month period then ended and the year ended December
31, 1995, the statements of changes in net assets for the seven month period
ended July 31, 1996 and the years ended December 31, 1995 and 1994, and the
financial highlights for the seven month period ended July 31, 1996, each of
the years in the two year period ended December 31, 1995 and the period from
October 1, 1993 (commencement of operations) to December 31, 1993. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 1996, by correspondence with the custodian
and brokers; and where confirmations were not received from brokers, we
performed other auditing procedures. 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
Oppenheimer Florida Tax-Exempt Fund as of July 31, 1996, the results of its
operations for the seven month period then ended and the year ended December
31, 1995, the changes in its net assets for the seven month period ended
July 31, 1996 and the years ended December 31, 1995 and 1994, and the
financial highlights for the seven month period ended July 31, 1996, each of
the years in the two year period ended December 31, 1995 and the period from
October 1, 1993 (commencement of operations) to December 31, 1993, in
conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
August 21, 1996
16 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (Unaudited)
In early 1997, shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1996.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended July 31,
1996 are eligible for the corporate dividend-received deduction. The
dividends were derived from interest on municipal bonds and are not subject
to federal income tax. To the extent a shareholder is subject to any state
or local tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
17 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
OPPENHEIMER FLORIDA TAX-EXEMPT FUND
A Series of Oppenheimer Multi-State Tax-Exempt Trust
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of
Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR OppenheimerFunds, Inc.
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER SERVICING
AGENT
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Florida
Tax-Exempt Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer Florida Tax-Exempt Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank,
are not guaranteed by any bank, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of the
principal amount invested.
18 Oppenheimer Florida Tax-Exempt Fund
