FRONT COVER
OPPENHEIMER FLORIDA MUNICIPAL FUND
Annual Report July 31, 1997
[LOGO]OPPENHEIMERFUNDS/SM/
THE RIGHT WAY TO INVEST
<PAGE>
- -----
YIELD
- -----
STANDARDIZED YIELDS
For the 30 Days Ended
7/31/97:(4)
Class A
4.48%
Class B
3.91%
Class C
3.80%
This Fund is for FLORIDA residents who need an investment that's EXEMPT from
current INCOME TAXES.
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
Oppenheimer Florida Municipal 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.
- -----------
PERFORMANCE
- -----------
Total returns for the twelve months ended 7/31/97 were 9.39% for Class A shares,
8.56% for Class B shares and 8.41% for Class C shares, without deducting sales
charges.(2)
Your Fund's average annual total returns for Class A shares for the 1-year
period ended 6/30/97 and since inception on 10/1/93 were 2.94% and 4.00%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 6/30/97 and since inception on 10/1/93 were 2.36% and 3.90%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 6/30/97 and since inception on 8/29/95 were 6.30% and 6.46%,
respectively.(3)
OUTLOOK
"As long as inflationary pressures remain benign, our outlook for interest rates
and the bond market should be positive. We are also optimistic regarding further
strengthening of Florida's economy on both the state and local levels."
Robert Patterson, Portfolio Manager
July 31, 1997
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT 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.
1. A portion of the distributions paid by the Fund may be subject to federal
and state income 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. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
3. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
4.75%. Class A shares were first publicly offered on 10/1/93. Class B returns
include the applicable contingent deferred sales charge of 5% (1-year) and 3%
(since inception on 10/1/93). Class C returns include the contingent deferred
sales charge of 1% for the 1-year result. Class C shares were first offered on
8/29/95. An explanation of the different performance calculations is in the
Fund's prospectus.
4. Standardized yield is based on net investment income for the 30-day period
ended 7/31/97. Falling net asset values will tend to artificially raise yields.
2 Oppenheimer Florida Municipal Fund
<PAGE>
BRIDGET A. MACASKILL
President
Oppenheimer
Florida Municipal Fund
Dear Shareholder,
As we consider the world's financial markets over the past twelve months,
some global trends emerge. For example, inflation has hit its lowest level in
three decades worldwide, which has helped spur many bullish financial markets.
The United States has been a beneficiary of this low inflation environment, as
well as a strong dollar, robust corporate earnings and a healthy economy.
However, many financial analysts are now concerned that the United States has
reached a point in the business cycle where earnings could decline because
companies are unable to further reduce costs.
On the other hand, a wave of corporate restructuring throughout Europe
has resulted in some exciting changes and opportunities. Because a similar
restructuring took place in the United States ten years ago, European companies
have been able to enjoy the benefit of hindsight by following our footsteps.
Latin America, too, has begun to shift its economies more toward the U.S.
capitalist model and has reported positive earnings growth along the way.
With major changes occurring in today's economies around the globe,
it's more important than ever to maintain a diversified portfolio across
different countries and market sectors. Now is the time to speak to your
financial advisor to ensure that your assets are allocated properly, so you have
the opportunity to benefit from investments in both domestic and international
funds. It's important to remember that investing abroad can involve greater risk
and expenses -- including political and economic uncertainties -- and should be
undertaken with a long-term approach in mind.
To keep in touch with our views on the markets, visit our website,
WWW.OPPENHEIMERFUNDS.COM, where you can access your account information and fund
performance data, 24 hours a day. The site also features prospectuses, timely
market updates and insightful commentaries. Our new shareholder reports and
presence on the Internet are just two examples of our commitment to keeping you
well informed.
Thank you for your confidence in OppenheimerFunds, THE RIGHT WAY TO
INVEST. We look forward to helping you reach your investment goals in the
future.
/S/Bridget A. Macaskill
Bridget A. Macaskill
August 21, 1997
3 Oppenheimer Florida Municipal Fund
<PAGE>
ROBERT PATTERSON
Portfolio Manager
Q+A
An interview with your Fund's managers.
HOW HAS THE FUND PERFORMED DURING THE FISCAL YEAR ENDED JULY 31, 1997?
Oppenheimer Florida Municipal Bond Fund's Class A shares have provided an
annualized total rate of return, before sales charges, of 9.39% for the one year
period ended July 31, 1997.(1)
WHAT INFLUENCES HAD THE GREATEST EFFECT ON THE MUNICIPAL MARKET?
Yields on municipal bonds generally followed the trends established over the
past twelve months by taxable bonds, such as U.S. Treasury securities. However,
during the twelve-month period, taxable and tax-exempt bond markets experienced
a relatively high level of volatility. Bond yields rose and fell with investors'
changing outlooks for economic growth, inflation and federal monetary policy.
When the economy appeared to be growing quickly, investors became concerned
about a resurgence of inflation and a more restrictive monetary policy. During
April, long-term interest rates peaked, then declined by the end of July to
the lowest rates during the period. When the economy appeared to be slowing,
investors seemed confident that inflation would not be a problem.
WHAT DEVELOPMENTS IN FLORIDA CONTRIBUTED TO THE FUND'S PERFORMANCE?
Florida's economy is among the healthiest in the nation, due in large part to
the influx of people and industry from other parts of the country. Today's new
Florida residents tend to be young, skilled workers with school-age children who
are moving to Florida for jobs in growing industries outside the tourism sector.
On one hand, this migration pattern has increased Florida's tax base; on the
other hand, it is beginning to cause strains in the state's infrastructure as
schools and other facilities are reaching and, in some cases, exceeding
capacity. Municipal bonds were issued to meet these needs, creating the
opportunity to invest in a variety of sound tax-exempt credits.
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
We continued to follow the time-tested investment strategies we have used for
years. Regardless of market conditions, we prefer to keep our shareholders'
assets fully invested in a diversified portfolio of good-quality securities that
provide competitive levels of income and attractive relative values. Within that
fully invested position, we attempt to boost returns and reduce risks.
One of the ways we do this is by actively managing the portfolio's average
duration--a measure of the portfolio's sensitivity to changes in interest
rates. By changing the portfolio's average duration relative to the Fund's
investment benchmark, we have been able to benefit when interest rates are
falling and protect ourselves when rates rise. For example, we've had a very
positive view on inflation recently, and that's caused us to keep the
portfolio's average duration relatively long in order to benefit from declining
interest rates. When interest rates were rising, we tried to keep our average
duration relatively short, and that helped us capture higher yields as they
became available.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
4 Oppenheimer Florida Municipal Fund
<PAGE>
WHAT MARKET SECTORS DID YOU FIND ATTRACTIVE AND WHICH DID YOU AVOID?
While we were able to find creditworthy investments in virtually every area of
the Florida bond market, we focused on those municipalities and authorities
whose bonds offered the most competitive income and best values. Because some
areas of the Florida economy are still uncertain, we were very selective in our
purchases of new bonds. For example, demand for housing from new residents has
increased markedly, particularly in Tampa and Jacksonville. This population
influx has created attractive values in the bonds issued by community
development districts and county housing agencies in those areas.
On the other hand, we have generally avoided bonds issued by smaller cities and
municipalities that have not experienced population and job growth. We believe
these localities may have more difficulty shouldering the increased burden of
mandated programs shifted to them by state and federal governments. We have also
generally avoided bonds issued by electric utilities facing the challenges of
deregulation.
In addition, we continue to favor revenue bonds that are backed by the earnings
of essential service projects, such as water and sewer charges, over general
obligation bonds that are backed by general tax revenues. The portfolio now
consists of approximately 90% revenue bonds and 10% general obligation bonds,
diversified throughout the state and comprising both insured and noninsured
securities.
HOW DID THE FUND'S CREDIT QUALITY CHANGE DURING THE PERIOD?
The Fund consistently maintained an overall credit rating within the A to AA (or
Aa) range. Strong economic conditions helped produce adequate tax revenues for
many of Florida's municipal borrowers, reducing their need to finance deficits
in the public markets. In addition, the difference in yields between
investment-grade and below-investment-grade bonds narrowed considerably as more
investors reached for higher yields in a low-supply environment. When "spreads"
narrow, we tend to focus on higher quality bonds because our shareholders are
not adequately compensated for assuming the higher risks associated with
lower-rated bonds.
WHAT IS YOUR OUTLOOK FOR THE FLORIDA MUNICIPAL BOND MARKET?
We are cautiously optimistic. Our optimism is rooted in the nation's economy,
which is in its seventh year of expansion. This economy is unusual because it
has been characterized by moderate growth without an acceleration of inflation.
As long as inflationary pressures remain benign, our outlook for interest rates
and the bond market should be positive. We are also optimistic regarding further
strengthening of Florida's economy on both the state and local levels. On the
other hand, we are tempering our optimism with caution because no market or
economy moves in a straight line. In our view, the risk for the foreseeable
future is that the economy will grow faster than is currently expected, causing
inflation fears to surface among bond investors. While we do not expect these
fears to persist, they may cause volatility over the short term. Therefore, we
intend to remain vigilant when it comes to protecting our shareholders from the
brunt of market declines, while enabling them to participate in the bulk of the
market's gains.//
5 Oppenheimer Florida Municipal Fund
<PAGE>
======================================
STATEMENT OF INVESTMENTS JULY 31, 1997
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
=================================================================================================================================
MUNICIPAL BONDS AND NOTES - 97.7%
- ---------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 89.8%
<S> <C> <C> <C>
Alachua Cnty., FL HFAU RRB, Santa Fe HCF Project,
Escrowed to Maturity, 6%, 11/15/09 Baa1/AAA $1,000,000 $1,087,930
- ---------------------------------------------------------------------------------------------------------------------------------
Bay Cnty., FL Hospital System RRB, Bay Medical Center
Project, Prerefunded, 8%, 10/1/19 Aaa/NR 1,000,000 1,234,830
- ---------------------------------------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU MH RRB, Windover
Oaks Project, Series A, 6.90%, 2/1/27 NR/AAA 1,000,000 1,119,140
- ---------------------------------------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU SFM RB, 6.70%, 9/1/27 Aaa/NR 1,000,000 1,065,700
- ---------------------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL GORB, 12.50%, 1/1/06 Aa/AA 1,000,000 1,543,810
- ---------------------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL RR RB:
Broward Waste Energy-LP North Project, 7.95%, 12/1/08 A/A- 1,760,000 1,931,811
Ses Broward Co.-LP South Project, 7.95%, 12/1/08 A/A- 1,370,000 1,502,452
- ---------------------------------------------------------------------------------------------------------------------------------
Clay Cnty., FL Housing FAU SFM RB, 6.55%, 3/1/28 Aaa/NR 830,000 880,862
- ---------------------------------------------------------------------------------------------------------------------------------
Collier Cnty., FL HFAU RRB, The Moorings, Inc. Project,
7%, 12/1/19 NR/BBB+/A- 1,000,000 1,095,920
- ---------------------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL Aviation RB, Series B, MBIA Insured,
6.60%, 10/1/22 Aaa/AAA/AA- 1,000,000 1,094,660
- ---------------------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL GORB, FGIC Insured, 12%, 10/1/04 Aaa/AAA/AAA 100,000 145,651
- ---------------------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL IDAU RB, Miami Cerebral Palsy Services
Project, 8%, 6/1/22 NR/NR 1,190,000 1,257,164
- ---------------------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL Professional Sports Franchise Facilities
Tax & CAP RB, MBIA Insured, Zero Coupon, 5.85%,
10/1/26(1) Aaa/AAA 3,200,000 686,080
- ---------------------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL Special Obligation RRB, Series B,
AMBAC Insured, Zero Coupon, 6.25%, 10/1/14(1) Aaa/AAA/AAA 4,755,000 1,916,408
- ---------------------------------------------------------------------------------------------------------------------------------
Escambia Cnty., FL HFAU RB, Azalea Trace, Inc., 6%,
1/1/15 NR/NR/BBB- 1,500,000 1,526,340
- ---------------------------------------------------------------------------------------------------------------------------------
Escambia Cnty., FL HFAU RRB, Baptist Hospital, Inc.,
Partially Prerefunded, Series A, 8.70%, 10/1/14 NR/BBB+ 1,000,000 1,067,370
- ---------------------------------------------------------------------------------------------------------------------------------
Fishhawk, FL CDD Special Assessment RB, 7.625%, 5/1/18 NR/NR 1,000,000 1,035,050
- ---------------------------------------------------------------------------------------------------------------------------------
FL HFA RB:
Maitland Club Apts. Project, Series B-1, AMBAC
Insured, 6.75%, 8/1/14 Aaa/AAA/AAA 1,000,000 1,084,790
Riverfront Apartments, Series A, AMBAC Insured,
6.25%, 4/1/37 Aaa/AAA/AAA 1,400,000 1,466,052
- ---------------------------------------------------------------------------------------------------------------------------------
Grand Haven, FL CDD Special Assessment RB,
Series A, 6.30%, 5/1/02 NR/NR 2,000,000 2,040,780
- ---------------------------------------------------------------------------------------------------------------------------------
Hillsborough Cnty., FL IDAU PC RRB, Tampa Electric
Co. Project, Series 92, 8%, 5/1/22 Aa3/AA/AA- 1,000,000 1,170,950
- ---------------------------------------------------------------------------------------------------------------------------------
Hillsborough Cnty., FL Utility RRB, Series A, FSA
Insured, 7%, 8/1/14 Aaa/AAA 750,000 833,708
- ---------------------------------------------------------------------------------------------------------------------------------
Jacksonville, FL HFAU RB, Daughters Health Project,
Prerefunded, Series B, 7.50%, 11/1/15 Aaa/AAA 1,000,000 1,122,360
- ---------------------------------------------------------------------------------------------------------------------------------
Lee Cnty., FL School Board COP, Prerefunded, Series A,
7.75%, 8/1/05 Aaa/AAA 1,000,000 1,151,810
</TABLE>
6 Oppenheimer Florida Municipal Fund
<PAGE>
====================================
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
<S> <C> <C> <C>
Martin Cnty., FL IDAU RRB, Indiantown Cogeneration
Project, Series A, 7.875%, 12/15/25 Baa3/BBB-/BBB $2,000,000 $ 2,327,520
- ---------------------------------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB, City Center
Historic Convention, Series B, 6.25%, 12/1/16 Baa2/BBB 500,000 526,525
- ---------------------------------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB, City Center
Historic Convention, Series B, 6.35%, 12/1/22 Baa2/BBB 500,000 526,810
- ---------------------------------------------------------------------------------------------------------------------------------
Miami, FL Sanitation & Sewer Systems GOB,
FGIC Insured, 6.50%, 1/1/14 Aaa/AAA 1,750,000 1,922,305
- ---------------------------------------------------------------------------------------------------------------------------------
Orlando, FL Utilities Commission Water & Electric RB,
Inverse Floater, 7.012%, 10/1/17(2) Aa/AA- 1,000,000 1,030,000
- ---------------------------------------------------------------------------------------------------------------------------------
Pinellas Cnty., FL HFAU RB, Sun Coast Health System,
Prerefunded, 8.50%, 3/1/20 NR/AAA 1,315,000 1,481,150
- ---------------------------------------------------------------------------------------------------------------------------------
Port St. Lucie, FL Utility RB, Series A, FGIC Insured,
Zero Coupon, 6.25%, 9/1/16(1) Aaa/AAA 1,045,000 363,576
- ---------------------------------------------------------------------------------------------------------------------------------
St. Petersburg, FL Public Improvement RRB, MBIA
Insured, 6.375%, 2/1/12 Aaa/AAA 750,000 820,275
- ---------------------------------------------------------------------------------------------------------------------------------
Tampa Palms, FL Open Space & Transition CDD Special
Assessment RB, Capital Improvement-Area 7 Phase Two
Project, 7.50%, 5/1/18 NR/NR 1,200,000 1,233,168
------------
39,292,957
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 7.9%
- ---------------------------------------------------------------------------------------------------------------------------------
PR Commonwealth Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 540,000 762,896
- ---------------------------------------------------------------------------------------------------------------------------------
PR Commonwealth HTAU RB, Series W, Inverse Floater,
6.447%, 7/1/10(2) Baa1/A 1,000,000 1,053,750
- ---------------------------------------------------------------------------------------------------------------------------------
PR Commonwealth Infrastructure FAU Special RB,
Series A, 7.90%, 7/1/07 Baa1/BBB+ 575,000 607,930
- ---------------------------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured, Inverse
Floater, 6.763%, 1/16/15(2) Aaa/AAA 1,000,000 1,041,250
------------
3,465,826
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $41,189,138) 97.7% 42,758,783
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.3 991,247
----------- ------------
NET ASSETS 100.0% $43,750,030
=========== ============
</TABLE>
To simplify the listings of securities abbreviations are used per the table
below:
<TABLE>
<S> <C>
CAP - Capital Appreciation HTAU - Highway & Transportation Authority
CDD - Community Development District IDAU - Industrial Development Authority
COP - Certificates of Participation MH - Multifamily Housing
FAU - Finance Authority PC - Pollution Control
GOB - General Obligation Bonds RA - Redevelopment Agency
GORB - General Obligation Refunding Bonds RB - Revenue Bonds
HCF - Health Care Facilities RR - Resource Recovery
HFA - Housing Finance Agency RRB - Revenue Refunding Bonds
HFAU - Health Facilities Authority SFM - Single Family Mortgage
</TABLE>
7 Oppenheimer Florida Municipal Fund
<PAGE>
====================================
STATEMENT OF INVESTMENTS (CONTINUED)
1. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
2. Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays 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 $3,125,000 or 7.14% of the
Fund's net assets at July 31, 1997.
As of July 31, 1997, securities subject to the alternative minimum tax amount to
$6,453,532 or 14.75% 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>
Hospital/Healthcare $ 7,519,980 17.7%
Special Assessment 6,868,688 16.1
General Obligation 3,611,766 8.5
Resource Recovery 3,434,263 8.0
Single Family Housing 3,031,352 7.1
Multi-Family Housing 2,585,192 6.0
Sales Tax 2,524,338 5.9
Corporate Backed 2,327,520 5.4
Water Utilities 1,960,180 4.6
Non Profit Organization 1,257,164 2.9
Pollution Control 1,170,950 2.7
Lease Rental 1,151,810 2.7
Adult Living Facilities 1,095,920 2.6
Marine/Aviation Facilities 1,094,660 2.6
Highways 1,053,750 2.5
Telephone Utilities 1,041,250 2.4
Electric Utilities 1,030,000 2.4
----------- -----
$42,758,783 100.0%
=========== =====
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Florida Municipal Fund
<PAGE>
=================================================
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1997
<TABLE>
=================================================================================================================
ASSETS
<S> <C>
Investments, at value (cost $41,189,138) - see accompanying statement $42,758,783
- -----------------------------------------------------------------------------------------------------------------
Cash 364,940
- -----------------------------------------------------------------------------------------------------------------
Receivables:
Interest 656,900
Shares of beneficial interest sold 162,483
- -----------------------------------------------------------------------------------------------------------------
Other 3,071
------------
Total assets 43,946,177
=================================================================================================================
LIABILITIES
Payables and other liabilities:
Dividends 122,283
Trustees' fees - Note 1 26,169
Shareholder reports 19,913
Shares of beneficial interest redeemed 9,406
Transfer and shareholder servicing agent fees 4,780
Distribution and service plan fees 4,613
Other 8,983
------------
Total liabilities 196,147
=================================================================================================================
NET ASSETS $43,750,030
============
=================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $42,896,845
- -----------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (9,345)
- -----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (707,115)
- -----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments - Note 3 1,569,645
------------
Net assets $43,750,030
============
=================================================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $27,445,639 and 2,392,925 shares of beneficial interest outstanding) $11.47
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $12.04
- -----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $15,348,243 and
1,336,097 shares of beneficial interest outstanding) $11.49
- -----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $956,148 and 83,417
shares of beneficial interest outstanding) $11.46
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Florida Municipal Fund
<PAGE>
========================================================
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 1997
<TABLE>
=================================================================================================================
INVESTMENT INCOME
<S> <C>
Interest $2,531,850
=================================================================================================================
EXPENSES
Management fees - Note 4 230,723
- -----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 55,824
Class B 136,590
Class C 3,789
- -----------------------------------------------------------------------------------------------------------------
Shareholder reports 25,154
- -----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 20,489
- -----------------------------------------------------------------------------------------------------------------
Legal and auditing fees 15,999
- -----------------------------------------------------------------------------------------------------------------
Insurance expenses 5,024
- -----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 4,936
- -----------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 2,310
Class B 632
Class C 205
- -----------------------------------------------------------------------------------------------------------------
Other 445
-----------
Total expenses 502,120
-----------
Less expenses paid indirectly - Note 4 (5,921)
Less reimbursement and assumption of expenses by OppenheimerFunds, Inc. - Note 4 (51,729)
-----------
Net expenses 444,470
=================================================================================================================
NET INVESTMENT INCOME 2,087,380
=================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (542,302)
Closing of futures contracts 101,378
-----------
Net realized loss (440,924)
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 1,685,747
-----------
Net realized and unrealized gain 1,244,823
=================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,332,203
===========
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Florida Municipal Fund
<PAGE>
===================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED JULY 31, DECEMBER 31,
1997 1996(1) 1995
====================================================================================================================================
OPERATIONS
<S> <C> <C> <C>
Net investment income $ 2,087,380 $ 946,530 $ 1,358,473
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (440,924) 179,624 (116,007)
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,685,747 (1,072,986) 2,622,466
-------------------------------------------------
Net increase in net assets resulting from operations 3,332,203 53,168 3,864,932
====================================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,321,674) (584,598) (824,373)
Class B (645,872) (351,171) (528,564)
Class C (17,307) (2,112) (79)
====================================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions - Note 2:
Class A 7,261,833 503,417 5,923,134
Class B 1,975,456 574,639 3,616,484
Class C 862,016 35,925 38,376
====================================================================================================================================
NET ASSETS
Total increase 11,446,655 229,268 12,089,910
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning of period 32,303,375 32,074,107 19,984,197
-------------------------------------------------
End of period (including overdistributed net investment
income of $9,345, $2,852 and $7,891, respectively) $43,750,030 $32,303,375 $32,074,107
=================================================
</TABLE>
1. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
See accompanying Notes to Financial Statements.
11 Oppenheimer Florida Municipal Fund
<PAGE>
====================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
--------------------------------------------------- --------------------------------------------------
YEAR ENDED JULY 31, YEAR ENDED DECEMBER 31, YEAR ENDED JULY 31, YEAR ENDED DECEMBER 31,
1997 1996(2) 1995 1994 1993(3) 1997 1996(2) 1995 1994 1993(3)
====================================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $11.07 $11.40 $10.26 $11.79 $11.43 $11.09 $11.42 $10.27 $11.81 $11.43
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income .64 .36 .63 .64 .14 .55 .31 .55 .56 .12
Net realized and
unrealized gain (loss) .37 (.34) 1.14 (1.53) .36 .37 (.34) 1.15 (1.54) .38
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.01 .02 1.77 (.89) .50 .92 (.03) 1.70 (.98) .50
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders
from net investment
income (.61) (.35) (.63) (.64) (.14) (.52) (.30) (.55) (.56) (.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $11.47 $11.07 $11.40 $10.26 $11.79 $11.49 $11.09 $11.42 $10.27 $11.81
=========================================================================================================
====================================================================================================================================
TOTAL RETURN, AT NET
ASSET VALUE(4) 9.39% 0.25% 17.60% (7.66)% 4.39% 8.56% (0.19)% 16.81% (8.42)% 4.35%
====================================================================================================================================
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (in thousands) $27,446 $19,366 $19,377 $11,992 $7,062 $15,348 $12,865 $12,658 $7,992 $4,874
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $24,333 $18,415 $14,508 $ 9,741 $2,471 $13,812 $12,843 $10,772 $6,987 $2,304
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average
net assets:
Net investment income 5.70% 5.50%(5) 5.71% 5.90% 5.08%(5) 4.93% 4.75%(5) 4.92% 5.13% 4.20%(5)
Expenses, before
reimbursement and
voluntary assumption
by the Manager
or Distributor(6) 1.02% 1.23%(5) 1.36% 1.25% 1.89%(5) 1.79% 1.97%(5) 2.11% 1.99% 2.20%(5)
Expenses, net of
reimbursement and
voluntary assumption
by the Manager
or Distributor 0.87% 1.09%(5) 0.53% 0.29% -- 1.64% 1.83%(5) 1.29% 1.03% 0.38%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover
rate(7) 42.5% 21.2% 18.4% 30.4% -- 42.5% 21.2% 18.4% 30.4% --
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
2. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end 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.
12 Oppenheimer Florida Municipal Fund
<PAGE>
================================
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C
--------------------------------------
PERIOD ENDED
YEAR ENDED JULY 31, DECEMBER 31,
1997 1996(2) 1995(1)
======================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C>
Net asset value, beginning of period $11.07 $11.40 $10.96
- ---------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .53 .31 .20
Net realized and unrealized gain (loss) .38 (.34) .44
- ---------------------------------------------------------------------------------
Total income (loss) from investment
operations .91 (.03) .64
- ---------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (.52) (.30) (.20)
- ---------------------------------------------------------------------------------
Net asset value, end of period $11.46 $11.07 $11.40
================================
- ---------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 8.41% (0.22)% 5.86%
- ---------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $956 $72 $39
- ---------------------------------------------------------------------------------
Average net assets (in thousands) $380 $78 $ 5
- ---------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.87% 4.68%(5) 4.68%(5)
Expenses, before reimbursement and
voluntary assumption by the Manager
or Distributor(6) 1.75% 1.99%(5) 1.92%(5)
Expenses, net of reimbursement and
voluntary assumption by the Manager
or Distributor 1.60% 1.87%(5) 1.43%(5)
- ----------------------------------------------------------------------------------
Portfolio turnover rate(7) 42.5% 21.2% 18.4%
</TABLE>
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, 1997 were $25,027,486 and $15,867,676, respectively.
See accompanying Notes to Financial Statements.
13 Oppenheimer Florida Municipal Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Florida Municipal Fund (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, a non-diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. 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 that is
consistent with preservation of capital. The Fund's investment adviser 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 that class and exclusive voting rights with respect to
matters affecting that 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
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 an
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, 1997, the Fund
had available for federal income tax purposes an unused capital loss carryover
of approximately $336,000, 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 year ended
July 31, 1997, a credit of $11,330 was made for the Fund's projected benefit
obligations, and payments of $1,509 were made to retired trustees, resulting in
an accumulated liability of $26,169 at July 31, 1997.
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.
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 on long-term bonds for tax purposes.
The character of the distributions made during the year from net investment
income or net realized gains may differ from its 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 fiscal year in
which the income or realized gain was recorded by the Fund.
During the year ended July 31, 1997, the Fund adjusted the classification of
distributions to shareholders to reflect the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, during the year ended July 31, 1997, amounts have been
reclassified to reflect a decrease in undistributed net investment income of
$109,020. Accumulated net realized loss on investments was decreased by the same
amount.
14 Oppenheimer Florida Municipal Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
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 using the effective
yield method, 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>
YEAR ENDED JULY 31, SEVEN MONTHS ENDED JULY 31, YEAR ENDED DECEMBER 31,
1997 1996(2) 1995(1)
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Class A:
<S> <C> <C> <C> <C> <C> <C>
Sold 1,262,441 $14,136,662 324,714 $ 3,615,201 828,453 $ 9,144,873
Dividends reinvested 50,145 560,600 21,248 235,271 29,020 318,951
Redeemed (668,800) (7,435,429) (296,530) (3,347,055) (327,025) (3,540,690)
---------- ------------ --------- ------------ ---------- ------------
Net increase 643,786 $ 7,261,833 49,432 $ 503,417 530,448 $ 5,923,134
========== ============ ========= ============ ========== ============
Class B:
Sold 403,666 $ 4,529,195 169,888 $ 1,894,958 419,746 $ 4,609,025
Dividends reinvested 19,283 215,875 10,448 115,841 15,141 166,726
Redeemed (247,008) (2,769,614) (128,987) (1,436,160) (104,153) (1,159,267)
---------- ------------ --------- ------------ --------- ------------
Net increase 175,941 $ 1,975,456 51,349 $ 574,639 330,734 $ 3,616,484
========== ============ ========= ============ ========= ============
Class C:
Sold 78,461 $ 879,529 6,447 $ 72,184 3,407 $ 38,376
Dividends reinvested 1,066 11,932 140 1,550 -- --
Redeemed (2,638) (29,445) (3,466) (37,809) -- --
--------- ------------- --------- ------------ -------- ------------
Net increase 76,889 $ 862,016 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 Fund changed its fiscal year end from December 31 to July 31.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At July 31, 1997, net unrealized appreciation on investments of $1,569,645 was
composed of gross appreciation of $1,701,356, and gross depreciation of
$131,711.
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 average annual net assets in excess of $1 billion.
Effective January 1, 1997, the Manager has voluntarily undertaken to waive a
portion of its management fee, whereby the Fund pays a fee not to exceed 0.545%
of average annual net assets.
For the year ended July 31, 1997, commissions (sales charges paid by investors)
on sales of Class A shares totaled $177,923, of which $25,575 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 and Class C shares
totaled $146,616 and $5,852, respectively. During the year ended July 31, 1997,
OFDI received contingent deferred sales charges of $57,947 upon redemption of
Class B shares as reimbursement for sales commissions advanced by OFDI at the
time of sale of such shares.
15 Oppenheimer Florida Municipal Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
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 shareholder 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
maintaining accounts of their customers that hold Class A shares.
The Fund has adopted a 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. OFDI also receives a service
fee that may not exceed 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. During
the year ended July 31, 1997, OFDI retained $107,699 as reimbursement for Class
B sales commissions and service fee advances, as well as financing costs. 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 distributing
shares before the Plan was terminated. As of July 31, 1997, OFDI had incurred
unreimbursed expenses of $435,590 for Class B.
The Fund has adopted a 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 that may not exceed 0.25% (voluntarily reduced to 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. During
the year ended July 31, 1997, OFDI retained $2,130 as compensation for Class C
sales commissions and service fee advances, as well as financing costs. 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 distributing
shares before the Plan was terminated. As of July 31, 1997, OFDI had incurred
unreimbursed expenses of $8,990 for Class C.
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 buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities (initial margin) in an amount 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.
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.
16 Oppenheimer Florida Municipal Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer Florida Municipal Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Florida Municipal Fund (formerly Oppenheimer
Florida Tax-Exempt Fund) (a series of Oppenheimer Multi-State Municipal Trust)
as of July 31, 1997, the related statement of operations for the year then
ended, the statements of changes in net assets for the year then ended, the
seven-month period ended July 31, 1996 and for the year ended December 31, 1995,
and the financial highlights for the year ended July 31, 1997, the seven-month
period ended July 31, 1996, and 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, 1997, by correspondence with the custodian. 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 Municipal Fund as of July 31, 1997, the results of its
operations for the year then ended, the changes in its net assets for the year
ended July 31, 1997, the seven-month period ended July 31, 1996 and the year
ended December 31, 1995, and the financial highlights for the year ended July
31, 1997, 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, 1997
17 Oppenheimer Florida Municipal Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (Unaudited)
In early 1998, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1997. 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,
1997 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 adviser for specific guidance.
18 Oppenheimer Florida Municipal Fund
<PAGE>
OPPENHEIMER FLORIDA MUNICIPAL FUND
A Series of Oppenheimer Multi-State Municipal 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
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 ADVISER 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 Municipal
Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer
Florida Municipal 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.
19 Oppenheimer Florida Municipal Fund
<PAGE>
[BACK COVER}
INTERNET
24-hr access to account information
- ------------------------
www.oppenheimerfunds.com
- ------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- --------------
1-800-525-7048
- --------------
ACCOUNT TRANSACTIONS
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- --------------
1-800-852-8457
- --------------
PHONELINK
24 hr automated information
and automated transactions
- --------------
1-800-533-3310
- --------------
TELECOMMUNICATIONS DEVICE FOR
THE DEAF (TDD)
Mon-Fri 8:30am-2pm ET
- --------------
1-800-843-4461
- --------------
OPPENHEIMERFUNDS INFORMATION
HOTLINE
24 hours a day, timely and insightful
messages on the economy and issues
that affect your investments
- --------------
1-800-835-3104
- --------------
INFORMATION and services
- ------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at www.oppenheimerfunds.com--
we're here to help.
[LOGO] OPPENHEIMERFUNDS/SM/
Distributor, Inc.
