<PAGE>
Semiannual Report January 31, 1998
OPPENHEIMER
Florida
Municipal Fund
[GRAPHIC OMITTED]
[LOGO]
OppenheimerFunds (SM)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's
Manager
10 Statement of
Investments
14 Statement of
Assets and
Liabilities
16 Statement of
Operations
17 Statements of
Changes in
Net Assets
18 Financial Highlights
21 Notes to Financial
Statements
27 Officers and
Trustees
28 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o The supply of municipal bonds increased during the last six months, as many
municipalities took advantage of lower interest rates to finance new projects
and refinance existing debt.
o Florida's housing sector has presented many attractive opportunities--specifi
cally, community development districts that are well-defined and well-developed
communities and are financed by special assessment bonds.
o Two factors which support the possibility of a rally in municipal bonds:
First, municipal bonds are inexpensive relative to taxable bonds, especially in
states with income taxes. And second, inflation remains benign and the national
economy looks like it may slow down from year-end 1997 levels.
- -----------------------------------
Cumulative Total Returns
- -----------------------------------
For the 6-Month Period
Ended 1/31/98
Class A
With Without
Sales Chg.1 Sales Chg.2
- -----------------------------------
4.48% (0.48)%
- -----------------------------------
Class B
With Without
Sales Chg.1 Sales Chg.2
- -----------------------------------
4.08% (0.92)%
- -----------------------------------
Class C
With Without
Sales Chg.1 Sales Chg.2
- -----------------------------------
4.08% 3.08%
- -----------------------------------
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. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 4.75%.
Class B returns include the applicable contingent deferred sales charge of 5%.
Class C returns include the contingent deferred sales charge of 1%. An
explanation of the different performance calculations is in the Fund's
prospectus. Class B and C shares are subject to an annual 0.75% asset-based
sales charge.
2 Oppenheimer Florida Municipal Fund
<PAGE>
Dear shareholder,
- --------------------------------------------------------------------------------
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Florida Municipal Fund
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since
the government began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch further and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting that
if the rate of inflation falls any lower, it might actually trigger a period of
deflation, where we see the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it isn't: When prices fall
too low, it erodes the value of those goods to the producer. That is, when
economic conditions force a decrease in the price of goods, companies have to
sell more of those items in order to make the same amount of profit, which
translates into greater difficulties for corporations to improve their bottom
lines.
At OppenheimerFunds, we do not believe we will see
a period of deflation in the United States. The fundamental
factors that have driven the U.S. market still appear to be in place: an economy
that's in its eighth year of expansion with moderate growth, low unemployment,
virtually no inflation and low interest rates. However, because of economic
uncertainties in other parts of the world, particularly Asia, we expect to see
slower growth for stocks in 1998 and a year in which double-digit returns from
the equity markets are unlikely. It's also possible that we may see investors
favor the fixed, more secure interest payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money managers,
we continue to keep a watchful eye on these situations and are closely
monitoring your fund's investments. In times like these, your financial advisor
can be of invaluable assistance to you in helping review your financial plan and
guide your investments accordingly.
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
February 23, 1998
3 Oppenheimer Florida Municipal Fund
<PAGE>
Performance update
- ------------------------------------
- ------------------------------------
Avg Annual Total Returns1
- ------------------------------------
For the Periods Ended 12/31/97
Class A
Since
1 year Inception
- ------------------------------------
3.94% 4.91%
- ------------------------------------
Class B
Since
1 year Inception
- ------------------------------------
3.20% 4.93%
- ------------------------------------
Class C
Since
1 year Inception
- ------------------------------------
7.18% 7.40%
- ------------------------------------
- ------------------------------------
Standardized Yields
- ------------------------------------
For the 30 Days Ended 1/31/982
Class A
- ------------------------------------
4.07%
- ------------------------------------
Class B
- ------------------------------------
3.51%
- ------------------------------------
Class C
- ------------------------------------
3.50%
- ------------------------------------
Oppenheimer Florida Municipal Fund has continued to perform strongly,
particularly during what has turned out to be a difficult period for municipal
bonds. During the last six months, long-term interest rates have fallen, which
has caused a decline in municipal bond yields. However, for the six-month period
ended January 31, 1998, Oppenheimer Florida Municipal Fund's Class A shares
produced a 4.48% cumulative total return, without sales charges.3 In addition,
the Fund's Class A shares received an overall four-star ranking by Morningstar
Mutual Funds for the three-year period ended December 31, 1997 among 1,494
municipal bond funds.4
Top 10 Industries
(Percentage of invested assets)5
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Special Assessment 16.2% Adult Living Facilities 7.4%
- --------------------------------------------------------------------------------
General Obligation 13.8 Resource Recovery 6.2
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Sales Tax 8.8 Multi-Family Housing 5.0
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Hospital/Healthcare 8.4 Corporate Backed 4.4
- --------------------------------------------------------------------------------
Single Family Housing 7.4 Lease Rental 4.4
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1. 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 and B shares were first publicly offered on 10/1/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (since inception). 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. Class B and C shares are subject to an annual 0.75%
asset-based sales charge.
2. Standardized yield is based on net investment income for the 30-day period
ended 1/31/98. Falling share prices will tend to artificially raise yields.
3. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
- --------------------------------------------------------------------------------
4 Oppenheimer Florida Municipal Fund
<PAGE>
Portfolio review
Credit Allocation 6
[Pie Chart Omitted]
o AAA 43.7%
o AA 9.9
o A 19.2
o BBB 15.9
o BB 11.3
Oppenheimer Florida Municipal Fund is for investors looking for income that's
exempt from federal and Florida income taxes.
What We Look For
o Securities that provide high current income.
o Sectors and regions that offer relative value.
o Municipal projects or regions with improving credit quality.
o Investment opportunities from a wide range of securities statewide.
Top 5 Holdings by Issuer
(Percentage of invested assets)5
- --------------------------------------------------------------------------------
Grand Haven FL Community Development District
Special Assessment Revenue Bonds 5.0%
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Martin County FL Industrial Development Authority
Revenue Refunding Bonds 4.4
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Puerto Rico Public Buildings Authority Revenue Bonds 4.4
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Puerto Rico Commonwealth General Obligation Bonds 4.3
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Dade County FL Special Obligation Revenue Refunding Bonds 4.0
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4. Source: Morningstar, Inc. 12/31/97. Morningstar ranks mutual funds in broad
investment classes, based on risk-adjusted returns after considering sales
charges and expenses. Return and risk are measured as performance above and
below 90-day U.S. Treasury bill returns, respectively. Overall star ranking is
subject to change monthly. Top 10% are ranked 5 stars, next 22.5% are 4 stars,
middle 35% are 3 stars, next 22.5% are 2 stars and bottom 10% are 1 star. Past
performance does not guarantee future results.
5. Portfolio weightings are as of 1/31/98, and are subject to change.
6. Portfolio data are as of January 31, 1998, are dollar-weighted based on
investment assets and subject to change. The Fund may invest up to 25% of its
assets in below-investment-grade securities which carry greater risk that an
issuer may default on repayment of principal or interest. Securities rated by
any rating organization are included in the equivalent Standard & Poor's rating
category. Average credit quality and allocation include rated securities and
those not rated by a national rating organization (currently 2.5% of total
investments) but to which the Manager in its judgment has assigned ratings as
securities comparable to those rated by a rating agency in the same category.
5 Oppenheimer Florida Municipal Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed during the six months ended January 31, 1998?
Oppenheimer Florida Municipal Fund's Class A shares have provided a cumulative
total return of 4.48% without sales charges for the six-month period ended
January 31, 1998.1
How did the municipal bond market perform over the last six months?
As we expected, yields on municipal bonds declined as long-term interest rates
fell during the final five months of 1997 and the first month of 1998. This was
the result of a continued U.S. economic expansion that is notable both for its
durability and the absence of inflationary pressures. In fact, low inflation
helped long-term interest rates fall to their lowest levels since 1977.
Municipal bond yields have fallen in concert with the yields of U.S. Treasury
securities, but the extent of that decline has not been as pronounced. As a
result, although municipal bonds did well during the period, they did not
perform as well as comparable U.S. Treasury securities.
Why did investments in municipal bonds generally underperform U.S. Treasury
securities?
It's primarily a matter of supply and demand. The supply of U.S. Treasury
securities declined as the federal government made progress toward a balanced
budget. With a robust economy supporting strong tax revenues, the U.S. Treasury
issued fewer bonds. At the same time, demand for U.S. Treasury securities rose,
especially from overseas investors who sought high-quality investments in the
wake of the turmoil in Asia.
- --------------------------------------------------------------------------------
"The areas in which we have concentrated generally relate to Florida's
population pressures."
- --------------------------------------------------------------------------------
1. Includes changes in net asset value per share without deducting any
sales charges. Such performance is not annualized and would have been lower if
sales charges were taken into account.
6 Oppenheimer Florida Municipal Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Jerry Webman
Bob Patterson
(Portfolio Manager)
Conversely, the supply of municipal bonds increased during the period.
Municipalities took advantage of lower interest rates to finance new projects
and refinance existing debt. But demand for municipal bonds stayed the same,
because U.S. investors were generally more attracted to stocks than to
tax-exempt bonds. Therefore, U.S. Treasury securities benefited from a more
favorable relationship between supply and demand.
By the end of 1997, municipal bonds were providing about 92% of the yield
of comparable U.S. Treasuries, which is the high end of the range. History
suggests that a more normal level is about 85%. So we think that munici pal
bonds, including Florida bonds, are attractively valued relative to taxable
bonds.
Are there any characteristics unique to Florida's tax-exempt marketplace?
More than most other states, Florida is under enormous pressure to add
infrastructure. This is primarily because of a rapid rise in population, which
has substantially increased demand for housing and schools. Although the state
has so far resisted a state income tax, they have raised other types of taxes.
For example, the state government recently gave counties the option to raise
sales taxes to pay for the counties' portion of school budgets. And over the
past few years, the state has doubled its intangible tax, a tax on non-real
property, such as financial assets. As a result, Florida appears to be running
out of ways to increase revenues. We believe that imposition of a state income
tax becomes more likely every day.
7 Oppenheimer Florida Municipal Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
Where have you been finding opportunities in this environment?
The areas in which we have concentrated generally relate to Florida's population
pressures. For example, the state is responding to the housing shortage by
creating community development districts, which are well-defined planned
communities financed by special assessment bonds. The rise in the school-age
population has forced many municipalities to expand existing schools and build
new ones. We've purchased some of the bonds issued to finance that expansion.
Have you avoided any sectors of Florida's tax-exempt marketplace?
We remain cautious about utilities. Electrical utilities are in the midst of
deregulation, which has caused quite a lot of uncertainty. Some utilities will
be more competitive than others, and we don't want to be caught with bonds from
the less competitive companies.
Hospital bonds represent another area of caution. The healthcare industry
is experiencing turmoil as it attempts to control costs. The industry is
consolidating in Florida, as well as other states, so we are proceeding
carefully.
We've also tended to avoid some Florida communities' smaller general
obligation bonds because these assets usually are not as liquid as larger state
and county bonds that are backed by revenues from specific facilities.
- --------------------------------------------------------------------------------
"We are optimistic because conditions remain favorable for municipals..."
- --------------------------------------------------------------------------------
8 Oppenheimer Florida Municipal Fund
<PAGE>
What is your outlook for the rest of 1998?
We are optimistic because conditions have remained favorable for municipals.
First, as mentioned earlier, municipal bonds are inexpensive relative to taxable
bonds. Second, inflation remains benign, and the national economy looks like it
may slow down from year-end 1997 levels. These factors should support a further
rally in municipal bonds as long-term interest rates decline.
With that said, however, we don't expect to achieve the same level of
gains that we have experienced over the last six months. Inflation is low now,
but we are concerned about the potential effects of relatively full employment.
Because businesses must compete for a limited supply of workers, companies may
be forced to pay higher wages, and those costs may be passed on to consumers. As
a result, we are vigilantly watching for any changes in the economic
environment. Our goal is to anticipate those changes and position the Fund
accordingly.
- --------------------------------------------------------------------------------
"...but we don't expect to achieve the same level of gains that we have
experienced over the last six months."
- --------------------------------------------------------------------------------
9 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
=============================================================================================
<S> <C> <C> <C>
Municipal Bonds and Notes--97.7%
- ---------------------------------------------------------------------------------------------
Florida--82.6%
Alachua Cnty., FL HFAU RRB, Santa Fe HCF
Project, Escrowed to Maturity, 6%, 11/15/09 Baa1/AAA $1,000,000 $1,082,350
- ---------------------------------------------------------------------------------------------
Bay Cnty., FL Hospital System RRB, Bay Medical
Center Project, Prerefunded, 8%, 10/1/19 Aaa/NR 1,000,000 1,233,790
- ---------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU MH RRB,
Windover Oaks Project, Series A, 6.90%, 2/1/27 NR/AAA 1,000,000 1,140,020
- ---------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU SFM RB,
6.70%, 9/1/27 Aaa/NR 830,000 888,590
- ---------------------------------------------------------------------------------------------
Broward Cnty., FL GORB, 12.50%, 1/1/06 Aa/AA 1,000,000 1,533,580
- ---------------------------------------------------------------------------------------------
Broward Cnty., FL RR RB, Broward Waste
Energy-LP North Project, 7.95%, 12/1/08 A/A- 1,685,000 1,840,896
- ---------------------------------------------------------------------------------------------
Broward Cnty., FL RR RB, Ses Broward Co.-LP
South Project, 7.95%, 12/1/08 A/A- 1,315,000 1,436,664
- ---------------------------------------------------------------------------------------------
Clay Cnty., FL Housing FAU SFM RB,
6.55%, 3/1/28 Aaa/NR 800,000 853,496
- ---------------------------------------------------------------------------------------------
Collier Cnty., FL HFAU RRB, The Moorings, Inc.
Project, 7%, 12/1/19 NR/BBB+/A- 1,000,000 1,113,370
- ---------------------------------------------------------------------------------------------
Dade Cnty., FL Aviation RB, Series B,
MBIA Insured, 6.60%, 10/1/22 Aaa/AAA/AA- 1,000,000 1,108,200
- ---------------------------------------------------------------------------------------------
Dade Cnty., FL GORB, FGIC Insured,
12%, 10/1/04 Aaa/AAA/AAA 100,000 144,007
- ---------------------------------------------------------------------------------------------
Dade Cnty., FL IDAU RB, Miami Cerebral
Palsy Services Project, 8%, 6/1/22 NR/NR 1,190,000 1,329,789
- ---------------------------------------------------------------------------------------------
Dade Cnty., FL Professional Sports Franchise
Facilities Tax & CAP RB, MBIA Insured,
Zero Coupon, 5.85%, 10/1/26(1) Aaa/AAA 3,200,000 757,184
- ---------------------------------------------------------------------------------------------
Dade Cnty., FL SPO RRB, Series B,
AMBAC Insured, Zero Coupon, 6.25%, 10/1/14(1) Aaa/AAA/AAA 4,755,000 2,134,044
- ---------------------------------------------------------------------------------------------
Escambia Cnty., FL HFAU RB, Azalea Trace, Inc.,
6%, 1/1/15 NR/NR 2,000,000 2,072,020
- ---------------------------------------------------------------------------------------------
Escambia Cnty., FL HFAU RRB,
Baptist Hospital, Inc., Partially Prerefunded,
Series A, 8.70%, 10/1/14 NR/BBB+ 1,000,000 1,048,830
- ---------------------------------------------------------------------------------------------
Fishhawk, FL CDD SPAST RB, 7.625%, 5/1/18 NR/NR 1,000,000 1,072,640
- ---------------------------------------------------------------------------------------------
FL Department of Transportation-Right of
Way GOB, Series B, 5%, 7/1/22 Aa2/AA 1,500,000 1,477,065
- ---------------------------------------------------------------------------------------------
FL Heritage Harbor CDD SPAST RB,
Series B, 6%, 5/1/03 NR/NR 1,000,000 989,140
- ---------------------------------------------------------------------------------------------
FL HFA RB, Maitland Club Apts. Project,
Series B-1, AMBAC Insured, 6.75%, 8/1/14 Aaa/AAA/AAA 1,000,000 1,094,700
- ---------------------------------------------------------------------------------------------
FL HFA RB, Riverfront Apartments, Series A,
AMBAC Insured, 6.25%, 4/1/37 Aaa/AAA/AAA 1,400,000 1,491,448
</TABLE>
10 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Florida (continued)
Grand Haven, FL CDD SPAST RB,
Series A, 6.30%, 5/1/02 NR/NR $ 1,825,000 $ 1,870,570
- ----------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST RB,
Series B, 6.90%, 5/1/19 NR/NR 750,000 771,862
- ----------------------------------------------------------------------------------------------
Hillsborough Cnty., FL IDAU PC RRB,
Tampa Electric Co. Project, Series 92, 8%, 5/1/22 Aa3/AA/AA- 1,000,000 1,163,500
- ----------------------------------------------------------------------------------------------
Hillsborough Cnty., FL Utility RRB, Series A,
FSA Insured, 7%, 8/1/14 Aaa/AAA 750,000 829,417
- ----------------------------------------------------------------------------------------------
Lee Cnty., FL Housing FAU SFM RB,
Series A-2, 5.60%, 3/1/29 Aaa/NR 1,000,000 1,108,390
- ----------------------------------------------------------------------------------------------
Martin Cnty., FL IDAU RRB, Indiantown
Cogeneration Project, Series A, 7.875%,
12/15/25 Baa3/BBB-/BBB 2,000,000 2,355,140
- ----------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB,
City Center Historic Convention,
Series B, 6.25%, 12/1/16 Baa2/BBB 500,000 532,785
- ----------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB,
City Center Historic Convention,
Series B, 6.35%, 12/1/22 Baa2/BBB 500,000 533,040
- ----------------------------------------------------------------------------------------------
Miami, FL Sanitation & Sewer Systems GOB,
FGIC Insured, 6.50%, 1/1/14 Aaa/AAA 1,750,000 1,929,112
- ----------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RRB, Sub. Lien,
Series A, MBIA Insured, Zero Coupon,
5.52%, 10/1/17(1) Aaa/AAA 5,425,000 1,946,382
- ----------------------------------------------------------------------------------------------
Orlando, FL Utilities Commission Water &
Electric RB, Inverse Floater, 7.215%, 10/1/17(2) Aa/AA- 1,000,000 1,103,750
- ----------------------------------------------------------------------------------------------
Plantation, FL HFAU RRB, Covenant
Village of Florida, Inc., 5.125%, 12/1/22 NR/A- 750,000 743,183
- ----------------------------------------------------------------------------------------------
Port St. Lucie, FL Utility RB, Prerefunded,
Series A, FGIC Insured, Zero Coupon,
6.25%, 9/1/16(1) Aaa/AAA 1,045,000 407,080
- ----------------------------------------------------------------------------------------------
St. Petersburg, FL Public Improvement RRB,
MBIA Insured, 6.375%, 2/1/12 Aaa/AAA 750,000 819,323
- ----------------------------------------------------------------------------------------------
Tampa Palms, FL Open Space & Transition
CDD SPAST RB, Capital Improvement-Area 7
Phase Two Project, 7.50%, 5/1/18 NR/NR 1,200,000 1,264,128
- ----------------------------------------------------------------------------------------------
Tampa, FL RRB, Health System-Catholic Health,
Series A-1, MBIA Insured, 5.50%, 11/15/08 Aaa/AAA/AAA 1,000,000 1,087,350
44,306,835
</TABLE>
11 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Possessions--15.1%
PR CMWLTH Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA $ 540,000 $ 748,467
- -------------------------------------------------------------------------------------------------------------
PR CMWLTH GOB, 5.375%, 7/1/25 Baa1/A 1,600,000 1,636,112
- -------------------------------------------------------------------------------------------------------------
PR CMWLTH GORB, Prerefunded, 7.70%, 7/1/20 NR/AAA 575,000 636,772
- -------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series W,
Inverse Floater, 6.195%, 7/1/10(2) Baa1/A 1,000,000 1,097,500
- -------------------------------------------------------------------------------------------------------------
PR CMWLTH Special Infrastructure FAU RRB,
Series A, 7.90%, 7/1/07 Baa1/BBB+ 575,000 597,086
- -------------------------------------------------------------------------------------------------------------
PR Public Buildings Authority RB,
Series B, 5.25%, 7/1/21 Baa1/A 2,300,000 2,315,617
- -------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 6.915%, 1/16/15(2) Aaa/AAA 1,000,000 1,083,750
----------
8,115,304
----------
Total Municipal Bonds and Notes (Cost $49,589,253) 52,422,139
=============================================================================================================
Short-Term Tax-Exempt Obligations--1.3%
- -------------------------------------------------------------------------------------------------------------
Dade Cnty., FL WSS RB, FGIC Insured, 3.50%, 4/1/98 (Cost $700,000)(3) 700,000 700,000
- -------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $50,289,253) 99.0% 53,122,139
- -------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.0 535,492
----------- -----------
Net Assets 100.0% $53,657,631
=========== ===========
</TABLE>
To simplify the listing of securities, abbreviations are used per the table
below:
CAP -Capital Appreciation MH -Multifamily Housing
CDD -Community Development District PC -Pollution Control
CMWLTH -Commonwealth RA -Redevelopment Agency
FAU -Finance Authority RB -Revenue Bonds
GOB -General Obligation Bonds RR -Resource Recovery
GORB -General Obligation Refunding Bonds RRB -Revenue Refunding Bonds
HCF -Health Care Facilities SFM -Single Family Mortgage
HFA -Housing Finance Agency SPAST -Special Assessment
HFAU -Health Facilities Authority SPO -Special Obligations
HTAU -Highway & Transportation Authority WSS -Water & Sewer System
IDAU -Industrial Development Authority
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 $3,285,000 or 6.12% of the
Fund's net assets at January 31, 1998.
3. Floating or variable rate obligation. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on January 31, 1998. This instrument may
also have a demand feature which allows, on up to 30 days' notice, the recovery
of principal at any time, or at specified intervals not exceeding one year.
Maturity date shown represents effective maturity based on variable rate and, if
applicable, demand feature.
12 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
As of January 31, 1998, securities subject to the alternative minimum tax amount
to $7,408,516 or 13.81% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total investments at
value, is as follows:
Industry Market Value Percent
- --------------------------------------------------------------------------------
Special Assessment $ 8,610,672 16.2%
- --------------------------------------------------------------------------------
General Obligation 7,356,649 13.8
- --------------------------------------------------------------------------------
Hospital/Healthcare 6,524,340 12.3
- --------------------------------------------------------------------------------
Sales Tax 4,677,511 8.8
- --------------------------------------------------------------------------------
Single Family Housing 3,945,176 7.4
- --------------------------------------------------------------------------------
Resource Recovery 3,277,560 6.2
- --------------------------------------------------------------------------------
Multi-Family Housing 2,631,468 5.0
- --------------------------------------------------------------------------------
Corporate Backed 2,355,140 4.4
- --------------------------------------------------------------------------------
Lease Rental 2,315,617 4.4
- --------------------------------------------------------------------------------
Water Utilities 1,984,964 3.7
- --------------------------------------------------------------------------------
Adult Living Facilities 1,856,553 3.5
- --------------------------------------------------------------------------------
Not-for-Profit Organization 1,329,789 2.5
- --------------------------------------------------------------------------------
Pollution Control 1,163,500 2.2
- --------------------------------------------------------------------------------
Marine/Aviation Facilities 1,108,200 2.1
- --------------------------------------------------------------------------------
Electric Utilities 1,103,750 2.1
- --------------------------------------------------------------------------------
Highways 1,097,500 2.1
- --------------------------------------------------------------------------------
Telephone Utilities 1,083,750 2.0
- --------------------------------------------------------------------------------
Sewer Utilities 700,000 1.3
---------- -----
$53,122,13 100.0%
=========== =====
See accompanying Notes to Financial Statements.
13 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value (cost $50,289,253)--see
accompanying statement $ 53,122,139
- --------------------------------------------------------------------------------
Cash 359,117
- --------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 857,896
Interest 643,791
- --------------------------------------------------------------------------------
Other 28,808
------------
Total assets 55,011,751
================================================================================
Liabilities Payables and other liabilities:
Investments purchased 1,079,920
Dividends 133,055
Trustees' fees 43,164
Shares of beneficial interest redeemed 38,431
Distribution and service plan fees 5,743
Transfer and shareholder servicing agent fees 4,525
Other 49,282
------------
Total liabilities 1,354,120
================================================================================
Net Assets $ 53,657,631
============
================================================================================
Composition of Net Assets
Paid-in capital $ 51,667,702
- -----------------------------------------------------------------------
Overdistributed net investment income (70,672)
- -----------------------------------------------------------------------
Accumulated net realized loss on investment transactions (772,285)
- -----------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 2,832,886
------------
Net assets $ 53,657,631
============
14 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
============================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$34,699,111 and 2,970,162 shares of beneficial interest outstanding) $11.68
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $12.26
- --------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $17,081,965 and
1,460,056 shares of beneficial interest outstanding) $11.70
- --------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $1,876,555 and
160,784 shares of beneficial interest outstanding) $11.67
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Investment Income
Interest $ 1,442,628
===============================================================================
Expenses
Management fees--Note 4 142,809
- -------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 36,031
Class B 80,778
Class C 5,845
- -------------------------------------------------------------------------------
Trustees' fees and expenses 23,307
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 13,475
- -------------------------------------------------------------------------------
Custodian fees and expenses 11,633
- -------------------------------------------------------------------------------
Legal and auditing fees 6,875
- -------------------------------------------------------------------------------
Shareholder reports 6,641
- -------------------------------------------------------------------------------
Registration and filing fees 2,594
- -------------------------------------------------------------------------------
Other 2,227
-----------
Total expenses 332,215
Less assumption of expenses by OppenheimerFunds, Inc.--Note 4 (36,892)
Less expenses paid indirectly--Note 4 (11,471)
-----------
Net expenses 283,852
===============================================================================
Net Investment Income 1,158,776
===============================================================================
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (64,789)
Closing of futures contracts (381)
-----------
Net realized loss (65,170)
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on
investments 983,520
-----------
Net realized and unrealized gain 918,350
===============================================================================
Net Increase in Net Assets Resulting from Operations $ 2,077,126
===========
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
16 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
January 31, 1998 Year Ended
(Unaudited) July 31, 1997
====================================================================================
<S> <C> <C>
Operations
Net investment income $ 1,158,776 $ 2,087,380
- ------------------------------------------------------------------------------------
Net realized loss (65,170) (440,924)
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 983,520 1,685,747
---------- ----------
Net increase in net assets resulting from operations 2,077,126 3,332,203
====================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment
income:
Class A (762,620) (1,321,674)
Class B (347,854) (645,872)
Class C (24,993) (17,307)
====================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 6,648,166 7,261,833
Class B 1,422,184 1,975,456
Class C 895,592 862,016
====================================================================================
Net Assets
Total increase 9,907,601 11,446,655
- ------------------------------------------------------------------------------------
Beginning of period 43,750,030 32,303,375
---------- ----------
End of period (including overdistributed
net investment income
of $70,672 and $9,345, respectively) $ 53,657,631 $ 43,750,030
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
------------------------------------------------------------------------
Six Months
Ended
January 31,
1998 Year Ended July 31, Year Ended December 31,
(Unaudited) 1997 1996(2) 1995 1994 1993(3)
===================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 11.47 $ 11.07 $ 11.40 $ 10.26 $ 11.79 $ 11.43
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 .64 .36 .63 .64 .14
Net realized and unrealized gain (loss) .22 .37 (.34) 1.14 (1.53) .36
------ ------ ------ ------ ------ ------
Total income (loss) from investment
operations .51 1.01 .02 1.77 (.89) .50
- -------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (.30) (.61) (.35) (.63) (.64) (.14)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.68 $ 11.47 $ 11.07 $ 11.40 $ 10.26 $ 11.79
====== ====== ====== ====== ====== ======
===================================================================================================================
Total Return, at Net Asset Value(4) 4.48% 9.39% 0.25% 17.60% (7.66)% 4.39%
===================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $34,699 $27,446 $19,366 $19,377 $11,992 $ 7,062
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $30,071 $24,333 $18,415 $14,508 $ 9,741 $ 2,471
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.15%(5) 5.70% 5.50%(5) 5.71% 5.90% 5.08%(5)
Expenses, before reimbursement and
voluntary assumption by the Manager
or Distributor(6) 1.12%(5) 1.02% 1.23%(5) 1.36% 1.25% 1.89%(5)
Expenses, net of reimbursement and
voluntary assumption by the Manager
or Distributor 0.91%(5) 0.87% 1.09%(5) 0.53% 0.29% --
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 9.2% 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.
18 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
-----------------------------------------------------------------
Six Months
Ended
January 31,
1998 Year Ended July 31, Year Ended December 31,
(Unaudited) 1997 1996(2) 1995 1994 1993(3)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 11.49 $ 11.09 $ 11.42 $ 10.27 $ 11.81 $ 11.43
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .24 .55 .31 .55 .56 .12
Net realized and unrealized gain (loss) .22 .37 (.34) 1.15 (1.54) .38
------ ------ ------ ------ ------ ------
Total income (loss) from investment
operations .46 .92 (.03) 1.70 (.98) .50
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (.25) (.52) (.30) (.55) (.56) (.12)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.70 $ 11.49 $ 11.09 $ 11.42 $ 10.27 $ 11.81
====== ====== ====== ====== ====== ======
=====================================================================================================================
Total Return, at Net Asset Value(4) 4.08% 8.56% (0.19)% 16.81% (8.42)% 4.35%
=====================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $17,082 $15,348 $12,865 $12,658 $ 7,992 $ 4,874
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $16,033 $13,812 $12,843 $10,772 $ 6,987 $ 2,304
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.37%(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) 1.88%(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 1.68%(5) 1.64% 1.83%(5) 1.29% 1.03% 0.38%(5)
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 9.2% 42.5% 21.2% 18.4% 30.4% --
</TABLE>
5. Annualized.
6. Beginning in fiscal 1995, the expense ratio reflects the effect of 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
January 31, 1998 were $12,900,463 and $4,223,089, respectively.
19 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
-----------------------------------------
Six Months
Ended Period
January 31, Ended
1998 Year Ended July 31, December 31,
(Unaudited) 1997 1996(2) 1995(1)
=======================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.46 $11.07 $11.40 $10.96
- ---------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .25 .53 .31 .20
Net realized and unrealized gain (loss) .21 .38 (.34) .44
----- ----- ----- -----
Total income (loss) from investment
operations .46 .91 (.03) .64
- ---------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (.25) (.52) (.30) (.20)
- ---------------------------------------------------------------------------------------
Net asset value, end of period $11.67 $11.46 $11.07 $11.40
====== ====== ====== ======
=======================================================================================
Total Return, at Net Asset Value(4) 4.08% 8.41% (0.22)% 5.86%
=======================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,877 $ 956 $ 72 $ 39
- ---------------------------------------------------------------------------------------
Average net assets (in thousands) $1,163 $ 380 $ 78 $ 5
Ratios to average net assets:
Net investment income 4.25%(5) 4.87% 4.68%(5) 4.68%(5)
Expenses before reimbursement and voluntary
assumption by the Manager or Distributor(6) 1.87%(5) 1.75% 1.99%(5) 1.92%(5)
Expenses net of reimbursement and voluntary
assumption by the Manager or Distributor 1.67%(5) 1.60% 1.87%(5) 1.43%(5)
- ---------------------------------------------------------------------------------------
Portfolio turnover rate(7) 9.2% 42.5% 21.2% 18.4%
- ---------------------------------------------------------------------------------------
</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.
6. Beginning in fiscal 1995, the expense ratio reflects the effect of 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 January 31, 1998 were $12,900,463 and $4,223,089, respectively.
See accompanying Notes to Financial Statements.
20 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
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 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 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.
21 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
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 six months
ended January 31, 1998, a provision of $17,873 was made for the Fund's projected
benefit obligations resulting in an accumulated liability of $44,043 at January
31, 1998.
- --------------------------------------------------------------------------------
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. 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.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Original issue discount or premiums on
securities purchased are amortized over the life of the respective securities,
in accordance with federal income tax requirements. As of November 4, 1997, in
order to conform book and tax bases, the Fund began amortization of premiums on
securities for book purposes. Accordingly, during the six months ended January
31, 1998, amounts have been reclassified to reflect a decrease in undistributed
net investment income of $195,085. Paid-in capital was decreased by the same
amount. 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.
22 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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>
Six Months Ended January 31, 1998 Year Ended July 31, 1997
----------------------------------- ---------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 776,728 $ 8,947,698 1,262,441 $ 14,136,662
Dividends reinvested 29,679 340,129 50,145 560,600
Redeemed (229,170) (2,639,661) (668,800) (7,435,429)
-------- ------------ -------- ----------
Net increase 577,237 $ 6,648,166 643,786 $ 7,261,833
======== ============ ======== ============
- -----------------------------------------------------------------------------------------------
Class B:
Sold 322,060 $ 3,717,886 403,666 $ 4,529,195
Dividends reinvested 11,050 126,794 19,283 215,875
Redeemed (209,151) (2,422,496) (247,008) (2,769,614)
-------- ------------ -------- ----------
Net increase 123,959 $ 1,422,184 175,941 $ 1,975,456
======== ============ ======== ============
- -----------------------------------------------------------------------------------------------
Class C:
Sold 100,535 $ 1,161,951 78,461 $ 879,529
Dividends reinvested 1,229 14,093 1,066 11,932
Redeemed (24,397) (280,452) (2,638) (29,445)
-------- ------------ -------- ----------
Net increase 77,367 $ 895,592 76,889 $ 862,016
======== ============ ======== ============
===============================================================================================
</TABLE>
3. Unrealized Gains and Losses on Investments
At January 31, 1998, net unrealized appreciation on investments of $2,832,886
was composed of gross appreciation of $2,868,524, and gross depreciation of
$35,638.
23 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
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% of the first
$200 million of average annual net assets, 0.55% of the next $100 million, 0.50%
of the next $200 million, 0.45% of the next $250 million, 0.40% of the next $250
million and 0.35% of 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 six months ended January 31, 1998, commissions (sales charges paid
by investors) on sales of Class A shares totaled $128,226, of which $20,067 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 $103,814 and $10,018, respectively. During the six months
ended January 31, 1998, OFDI received contingent deferred sales charges of
$33,004 and $1,061, respectively, upon redemption of Class B and Class C 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 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
maintenance of accounts of their customers that hold Class A shares.
24 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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 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. During the six
months ended January 31, 1998, OFDI retained $63,688 and 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 January 31, 1998, OFDI had incurred
unreimbursed expenses of $484,830 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. During the six months ended January 31, 1998, OFDI retained $4,056
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 certain expenses it incurred before the Plan was terminated. As of January
31, 1998, OFDI had incurred unreimbursed expense of $38,754 for Class C.
25 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (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.
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.
================================================================================
6. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the six months ended January
31, 1998.
26 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 Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of the
Fund without examination of the independent auditors.
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.
27 Oppenheimer Florida Municipal Fund
<PAGE>
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- --------------------------------------------------------------------------------
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information
- --------------------------------
www.oppenheimerfunds.com
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General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
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1-800-525-7048
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Account Transactions
Mon-Fri 8:30am-8pm ET
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1-800-852-8457
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PhoneLink
24-hr automated information
and automated transactions
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1-800-533-3310
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Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
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1-800-843-4461
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OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
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1-800-835-3104
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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.
RS0795.001.0198 April 1, 1998
