<PAGE> 1
ANNUAL REPORT JULY 31, 1999
OPPENHEIMER
FLORIDA
MUNICIPAL FUND
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
5 An Interview
with Your Fund's
Manager
10 Fund Performance
14 Financial Statements
32 Independent
Auditor's Report
33 Federal
Income Tax
Information
35 Officers and Trustees
36 Information and
Services
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
- - IN STARK CONTRAST TO U.S. TREASURY SECURITIES, municipal bond prices were
remarkably stable throughout the reporting period.
- - OUR RESEARCH-INTENSIVE SECURITY SELECTION STRATEGY helped us find areas of
opportunity and avoid potential problems.
- - As of July 31, long-term Florida municipal bonds provided more than 90% of the
yield of long-term U.S. Treasury securities, MAKING THEM ATTRACTIVE VALUES BY
HISTORICAL MEASURES.
AVG ANNUAL TOTAL RETURNS
For the 1-Year Period
Ended 7/31/99
CLASS A
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
1.36% -3.46%
- --------------------------------
CLASS B
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
0.60% -4.24%
- --------------------------------
CLASS C
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
0.60% -0.37%
- --------------------------------
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. THE FUND'S
PERFORMANCE MAY FROM TIME TO TIME BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES,
PARTICULARLY DURING PERIODS OF MARKET OR INTEREST RATE VOLATILITY. FOR UPDATES
ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL US AT
1-800-525-7048 OR VISIT OUR WEBSITE, WWW.OPPENHEIMERFUNDS.COM.
1. Includes changes in net asset value per share without deducting any sales
charges.
2. Class A return includes the current maximum initial sales charge of 4.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the applicable contingent deferred sales charge of 1%.
Class B and C shares are subject to an annual 0.75% asset-based sales charge. An
explanation of the different performance calculations is in the Fund's
prospectus.
2 Oppenheimer Florida Municipal Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Florida Municipal Fund
DEAR SHAREHOLDER,
- --------------------------------------------------------------------------------
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global
weakness in the wake of last year's credit and currency crises have abated.
Instead, as many economies around the world begin to strengthen, concerns now
center around whether the U.S. economy may be growing too quickly. Throughout
the year, consumers in the United States have continued to spend and borrow
heavily, more than offsetting any temporary slowdown in the industrial and
export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large-capitalization growth
stocks, which has driven the market's advance over the past few years, has begun
to moderate, and many previously out-of-favor value-oriented, mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed, diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
(over, please)
3 Oppenheimer Florida Municipal Fund
<PAGE> 4
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against inflation.
In our view, history has repeatedly demonstrated that most financial assets do
best in a low-inflation environment. What's more, we believe that the move to
higher interest rates should be temporary.
One recent development is quite troublesome to us however: the
increasing popularity of "day trading" among individuals seeking to make fast
money in a volatile stock market. In our opinion, day trading is not investing,
it is gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue,
we are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industry-wide tests. We
intend to continue re-testing our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
August 20, 1999
4 Oppenheimer Florida Municipal Fund
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Bob Patterson
(Portfolio Manager)
Caryn Halbrecht
Jerry Webman
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
HOW DID OPPENHEIMER FLORIDA MUNICIPAL FUND PERFORM OVER THE ONE-YEAR PERIOD THAT
ENDED JULY 31, 1999?
We are generally pleased with the Fund's performance over the fiscal year. We
attribute the Fund's performance to our conservative investment strategy in a
rapidly changing investment environment. In fact, market conditions during the
final six months of 1998 and the first half of 1999 were, in many respects,
direct opposites of each other. The final six months of 1998 were generally
characterized by recessionary economic conditions throughout much of the world,
declining interest rates in the United States and less restrictive monetary
policies worldwide. In contrast, the first half of 1999 saw signs of global
economic recovery, rising domestic interest rates and, ultimately, a tighter
monetary policy in the United States.
HOW DID THESE ECONOMIC CONDITIONS AFFECT FLORIDA'S MUNICIPAL BOND MARKET?
In stark contrast to U.S. Treasury securities, municipal bond prices were
remarkably stable throughout the one-year reporting period. In the first half of
the period, global economic uncertainty triggered a "flight to quality" among
U.S. and foreign investors. This created unprecedented demand for U.S. Treasury
securities, driving their prices up and their yields down (prices and yields
move in opposite directions). However, because municipal bonds do not provide
tax advantages to foreign investors, municipals did not benefit to the same
extent. As a result, U.S. Treasury securities significantly outperformed
triple-A rated municipal bonds with comparable maturities.
5 Oppenheimer Florida Municipal Fund
<PAGE> 6
"MUNICIPAL BONDS ENDURED SIGNIFICANTLY LESS VOLATILITY THAN OTHER HIGH-QUALITY,
FIXED INCOME SECURITIES OVER THE PAST YEAR."
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
In the second half of the reporting period, while municipal bonds remained
stable, prices of U.S. Treasury securities declined sharply, giving back all of
their previous gains. As the economy grew stronger, investors regained their
confidence and sold their Treasury bonds in order to return to riskier financial
assets such as stocks and corporate bonds. Consequently, municipal bonds
provided higher total returns than U.S. Treasuries.
In our opinion, municipal bonds' relative stability is the result of
supply-and-demand factors. Strong economic conditions in Florida reduced many
municipalities' need to borrow, leading to a modestly diminished supply of
tax-exempt bonds. Yet, demand remained high from investors seeking to minimize
their income tax liabilities. This supply-and-demand relationship helped support
the stability of Florida's municipal bond prices and yields.
DID YOU FIND COMPELLING VALUES IN THIS MARKET ENVIRONMENT?
Yes. Long-term, tax-exempt municipal bond yields have been high relative to
yields of long-term, taxable U.S. Treasury securities. As a result, we believe
that Florida municipal bonds have provided excellent after-tax values compared
to historical norms.
6 Oppenheimer Florida Municipal Fund
<PAGE> 7
AVG ANNUAL TOTAL RETURNS
For the Periods Ended 6/30/99 (1)
CLASS A
Since
1 year 5 year Inception
- ------------------------------
- -3.19% 5.61% 4.35%
- ------------------------------
CLASS B
Since
1 year 5 year Inception
- ------------------------------
- -3.90% 5.52% 4.33%
- ------------------------------
CLASS C
Since
1 year 5 year Inception
- ------------------------------
- -0.10% N/A 5.27%
- ------------------------------
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
We attempted to invest in tax-exempt securities while managing the risks of
changing interest rates. Throughout the one-year reporting period we emphasized
those sectors of the municipal bond market that we expected to benefit most from
prevailing economic and market conditions. Conversely, we tried to avoid those
sectors that we believed would benefit least. This strategy led us to new areas
of opportunity, such as new residential housing projects, schools and
infrastructure for a rapidly growing population. Municipalities and authorities
have issued tax-exempt bonds to meet rising demand for these facilities as more
students, working families, and retirees have chosen Florida as a place to
study, work and live.
Our strategy also led us to avoid certain issuers, such as health care
facilities that are subject to financial pressures because of a currently
unfavorable regulatory and legislative environment, including cutbacks in
Medicaid and Medicare. We also tended to avoid bonds issued by utilities that
are in the midst of industry-wide deregulation.
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 shares were first publicly offered on 10/1/93. Class B returns
include the applicable contingent deferred sales charge of 5% (1-year) and 1%
(since inception on 10/1/93). Class C returns for the one-year result include
the contingent deferred sales charge of 1%. Class C shares have an inception
date of 8/29/95. Class B and C shares are subject to an annual 0.75% asset-based
sales charge. An explanation of the different performance calculations is in the
Fund's prospectus.
7 Oppenheimer Florida Municipal Fund
<PAGE> 8
STANDARDIZED YIELDS(2)
For the 30 Days Ended 7/31/99
- -----------------------------
CLASS A 4.71%
- -----------------------------
CLASS B 4.17
- -----------------------------
CLASS C 4.17
- -----------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
In addition, throughout the reporting period, we maintained a neutral average
duration--which is a measure of sensitivity to changes in interest rates. When
interest rates declined in 1998, our neutral position constrained performance
slightly compared to portfolios with longer durations. However, when interest
rates rose in 1999, our neutral position helped shelter the portfolio from the
brunt of the interest-rate risks affecting investors who had previously adopted
a longer, more aggressive duration strategy.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET AND THE FUND?
We remain cautiously optimistic. First, we believe that municipal bonds are
attractively valued relative to comparable taxable securities, and should
benefit as that relationship returns to more normal levels. Second, Florida, its
municipalities and many of its industries have benefited greatly from the recent
strength of the U.S. economy, which has enabled many of them to put their fiscal
houses in good order. This should help reduce the risk of potential defaults.
2. Standardized yield is based on net investment income for the 30 day period
ended July 31, 1999. Falling share prices will tend to artificially raise
yields.
8 Oppenheimer Florida Municipal Fund
<PAGE> 9
On the other hand, we remain concerned about rising interest rates. Accordingly,
we intend to continue to monitor the economic environment carefully. If the
economy continues to grow at an unsustainable rate, we may position the
portfolio to reduce the adverse effects of potentially higher interest rates. We
believe that these credit-conscious, risk-averse strategies make Oppenheimer
Florida Municipal Fund an important part of The Right Way to Invest.
CREDIT ALLOCATION(3)
[PIE CHART]
<TABLE>
<S> <C>
- - AAA 48.7%
- - AA 1.7
- - A 9.0
- - BB 18.6
- - BBB 22.0
</TABLE>
<TABLE>
<CAPTION>
TOP 5 INDUSTRIES (Percentage of invested assets)(4)
- -------------------------------------------------------------------------------
<S> <C>
Special Assessment 26.6%
- -------------------------------------------------------------------------------
Single Family Housing 13.0
- -------------------------------------------------------------------------------
Multifamily Housing 9.8
- -------------------------------------------------------------------------------
Adult Living Facilities 8.2
- -------------------------------------------------------------------------------
Hospital/Healthcare 7.2
- -------------------------------------------------------------------------------
</TABLE>
3. Portfolio data are as of July 31, 1999, are dollar-weighted based on invested
assets and are subject to change. The Fund may invest up to 25% of its assets in
below-investment-grade securities which carry greater risk of default. Average
credit quality and ratings allocations include securities rated by national
ratings organizations as well as unrated securities (currently 26.1% of total
investments) which have ratings assigned by the Manager in categories equivalent
to those of ratings organizations.
4. Industry weightings are as of July 31, 1999, and are subject to change.
9 Oppenheimer Florida Municipal Fund
<PAGE> 10
FUND PERFORMANCE
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended July 31, 1999, followed by a graphical
comparison of the Fund's performance to an appropriate broad-based market index.
- MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the Fund's fiscal year
that ended July 31, 1999, Oppenheimer Florida Municipal Fund performed
relatively well, despite a weak bond market. We attempted to manage the risks of
changing interest rates and emphasized those sectors of the municipal bond
market that we expected to benefit most from prevailing economic and market
conditions. This strategy led us to invest in new residential housing projects,
schools and infrastructure development. We also avoided certain issuers, such as
utilities and health care facilities. We maintained a neutral average duration
throughout the period, which constrained performance slightly when interest
rates declined in 1998. However, as interest rates rose in 1999, our neutral
position helped to shelter the portfolio. Over the past year, the Fund continued
to adhere to its longstanding strategy of holding a diversified portfolio of
municipal bonds selected after extensive research into their issuers' credit
quality. The Fund's portfolio holdings, allocations and strategies are subject
to change.
10 Oppenheimer Florida Municipal Fund
<PAGE> 11
- COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow
show the performance of a hypothetical $10,000 investment in each class of
shares of the Fund held from the inception of the class until July 31, 1999. In
the case of Class A and Class B shares, performance is measured from the
inception of those classes on October 1, 1993. In the case of Class C shares,
performance is measured from the inception of the Class on August 29, 1995. The
Fund's performance reflects the deduction of the maximum initial sales charge on
Class A shares and the applicable contingent deferred sales charge for Class B
and Class C shares. The graphs assume that all dividends and capital gains
distributions were reinvested in additional shares.
Because the Fund invests in a variety of Municipal Securities, the
Fund's performance is compared to that of the Lehman Brothers Municipal Bond
Index, an unmanaged index of a broad range of investment grade municipal bonds
that is widely regarded as a measure of the performance of the general municipal
bond market. Index performance reflects the reinvestment of income but does not
consider the effect of capital gains or transaction costs, and none of the data
below shows the effect of taxes. Also, the Fund's performance reflects the
effect of Fund business and operating expenses. While index comparisons may be
useful to provide a benchmark for the Fund's performance, it must be noted that
the Fund's investments are not limited to the securities in any one index.
11 Oppenheimer Florida Municipal Fund
<PAGE> 12
FUND PERFORMANCE
- --------------------------------------------------------------------------------
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Florida Municipal Fund (Class A) and Lehman Brothers Municipal Bond
Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Florida Lehman Brothers
Municipal Fund Municipal Bond Index
Class A
<S> <C> <C>
10.1.93 $ 9525 $ 10000
12.31.94 9182 9616
12.31.95 10798 11295
7.31.96(1) 10825 11346
7.31.97 11841 12509
7.31.98 12614 13259
7.31.99 12786 13640
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 7/31/99(2)
1 YEAR -3.46% 5 YEAR 5.09% LIFE 4.30%
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Florida Municipal Fund (Class B) and Lehman Brothers Municipal Bond
Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Florida Lehman Brothers
Municipal Fund Municipal Bond Index
Class B
<S> <C> <C>
10.1.93 $ 10000 $ 10000
12.31.94 9556 9616
12.31.95 11161 11295
7.31.96(1) 11141 11346
7.31.97 12094 12509
7.31.98 12786 13259
7.31.99 12763 13640
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 7/31/99(3)
1 YEAR -4.24% 5 YEAR 4.99% LIFE 4.27%
12 Oppenheimer Florida Municipal Fund
<PAGE> 13
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Florida Municipal Fund (Class C) and Lehman Brothers Municipal Bond
Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Florida Lehman Brothers
Municipal Fund Municipal Bond Index
Class C
<S> <C> <C>
8.29.95 $ 10000 $ 10000
7.31.96(1) 10563 10526
7.31.97 11451 11605
7.31.98 12106 12301
7.31.99 12179 12655
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 7/31/99(4)
1 YEAR -0.37% LIFE 5.16%
Total returns and the ending account values in the graphs show change in share
value and include reinvestment of all dividends and capital gains distributions.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 9/30/93 for Class A and Class B, and 8/31/95 for Class C.
1. The Fund changed its fiscal year end from December 31 to July 31.
2. The inception of the Fund (Class A and B shares) was 10/1/93. The Class A
average annual total returns are shown net of the applicable 4.75% maximum
initial sales charge.
3. The average annual total returns are shown net of the applicable 5% (1-year)
and 1% (since inception) contingent deferred sales charges. The ending account
value in the graph is net of the applicable 1% contingent deferred sales charge.
4. Class C shares of the Fund were first publicly offered on 8/29/95. The 1-year
period is shown net of the applicable 1% contingent deferred sales charge.
Past performance is not predictive of future performance. Graphs are not drawn
to same scale.
13 Oppenheimer Florida Municipal Fund
<PAGE> 14
STATEMENT OF INVESTMENTS July 31, 1999
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
====================================================================================================================
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--98.9%
- --------------------------------------------------------------------------------------------------------------------
FLORIDA--82.0%
Alachua Cnty., FL HFAU RRB, Santa Fe
HCF Project, Escrowed to Maturity,
6%, 11/15/09 Baa1/AAA $ 940,000 $ 999,417
- --------------------------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU MH RRB,
Windover Oaks Project, Series A, 6.90%, 2/1/27 NR/AAA 1,000,000 1,113,390
- --------------------------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU SFM RB,
6.70%, 9/1/27 Aaa/NR 830,000 875,799
- --------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.70%, 10/1/33 NR/NR/A 1,000,000 1,000,810
- --------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.75%, 4/1/38 NR/NR/A 1,000,000 980,150
- --------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Stirling Apts. Project, 5.75%, 4/1/38 NR/NR/A 855,000 840,721
- --------------------------------------------------------------------------------------------------------------------
Clay Cnty., FL Housing FAU SFM RB, 6.55%,
3/1/28 Aaa/NR 800,000 841,864
- --------------------------------------------------------------------------------------------------------------------
Collier Cnty., FL HFAU RRB,
The Moorings, Inc. Project, 7%, 12/1/19 NR/BBB+/A 1,000,000 1,090,220
- --------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL Aviation RB, Series B, MBIA
Insured, 6.60%, 10/1/22 Aaa/AAA/AA- 1,000,000 1,072,060
- --------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL IDAU RB, Miami Cerebral
Palsy Services Project, 8%, 6/1/22 NR/NR 2,155,000 2,338,218
- --------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL Professional Sports Franchise
Facilities Tax & CAP RB, MBIA Insured,
Zero Coupon, 5.85%, 10/1/26(1) Aaa/AAA 3,200,000 702,016
- --------------------------------------------------------------------------------------------------------------------
Escambia Cnty., FL HFAU RB, Azalea
Trace, Inc., 6%, 1/1/15 NR/NR 2,000,000 2,008,300
- --------------------------------------------------------------------------------------------------------------------
Fishhawk, FL CDD SPAST RB, 7.625%, 5/1/18 NR/NR 1,000,000 1,056,160
- --------------------------------------------------------------------------------------------------------------------
FL Heritage Harbor CDD SPAST RB,
Series B, 6%, 5/1/03 NR/NR 900,000 902,592
- --------------------------------------------------------------------------------------------------------------------
FL HFA RB, Maitland Club Apts. Project,
Series B-1, AMBAC Insured, 6.75%, 8/1/14(2) Aaa/AAA/AAA 1,000,000 1,078,450
- --------------------------------------------------------------------------------------------------------------------
FL HFA RB, Riverfront Apts., Series A,
AMBAC Insured, 6.25%, 4/1/37 Aaa/AAA/AAA 1,400,000 1,477,798
- --------------------------------------------------------------------------------------------------------------------
FL Housing Finance Corp. RB, FSA Insured,
Zero Coupon, 5.55%, 7/1/30(1) Aaa/AAA/AAA 8,000,000 1,373,840
- --------------------------------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST RB,
Series A, 6.30%, 5/1/02 NR/NR 1,536,000 1,556,936
- --------------------------------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST RB,
Series B, 6.90%, 5/1/19 NR/NR 750,000 766,905
</TABLE>
14 Oppenheimer Florida Municipal Fund
<PAGE> 15
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FLORIDA(CONTINUED)
Lee Cnty., FL Housing FAU SFM RB,
Series A-2 6.85%, 3/1/29 Aaa/NR $ 890,000 $ 991,656
- --------------------------------------------------------------------------------------------------------------------
Lee Cnty., FL IDAU HCF RRB, Shell Point
Village Project, Series A, 5.50%, 11/15/21 NR/BBB- 1,000,000 938,880
- --------------------------------------------------------------------------------------------------------------------
Lee Cnty., FL IDAU HCF RRB, Shell Point
Village Project, Series A, 5.50%, 11/15/29 NR/BBB- 1,000,000 927,850
- --------------------------------------------------------------------------------------------------------------------
Martin Cnty., FL IDAU RRB,
Indiantown Cogeneration Project,
Series A, 7.875%, 12/15/25 Baa3/BBB-/BBB 2,000,000 2,066,720
- --------------------------------------------------------------------------------------------------------------------
Miami Beach, FL HFAU Hospital RB, Mt. Sinai
Medical Center Project, 5.375%, 11/15/18 NR/BBB 1,500,000 1,390,320
- --------------------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB,
City Center Historic Convention,
Series B, 6.25%, 12/1/16 Baa2/BBB 500,000 514,365
- --------------------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB,
City Center Historic Convention, Series B,
6.35%, 12/1/22 Baa2/BBB 500,000 515,020
- --------------------------------------------------------------------------------------------------------------------
Miami, FL HFAU RRB, AMBAC Insured,
Inverse Floater, 6.97%, 8/15/15(3) Aaa/AAA/AAA 2,000,000 1,930,000
- --------------------------------------------------------------------------------------------------------------------
Miami, FL Sanitation & Sewer Systems GOB,
FGIC Insured, 6.50%, 1/1/14 Aaa/AAA 1,750,000 1,868,143
- --------------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien,
Series B, MBIA Insured, Zero Coupon,
5.50%, 10/1/28(1) Aaa/AAA/AAA 4,500,000 854,550
- --------------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien,
Series B, MBIA Insured, Zero Coupon,
5.53%, 10/1/34(1) Aaa/AAA/AAA 3,170,000 425,573
- --------------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RRB, Sub. Lien,
Series A, MBIA Insured, Zero Coupon,
5.52%, 10/1/17(1) Aaa/AAA/AAA 5,425,000 1,978,226
- --------------------------------------------------------------------------------------------------------------------
Northern Palm Beach Cnty., FL Water
Control & Improvement District RB,
Unit Development 9B, 5.90%, 8/1/19 NR /NR 1,085,000 1,074,953
- --------------------------------------------------------------------------------------------------------------------
Northern Palm Beach Cnty., FL Water
Control & Improvement District RB,
Unit Development 9B, 6%, 8/1/29 NR/NR 1,240,000 1,234,866
- --------------------------------------------------------------------------------------------------------------------
Orlando, FL Utilities Commission
Water & Electric RB, Inverse Floater,
7.418%, 10/1/17(3) Aa/AA- 1,000,000 1,023,750
- --------------------------------------------------------------------------------------------------------------------
Palm Beach Cnty., FL Housing FAU MH RB,
Windsor Park Apts. Project, Series A,
5.90%, 6/1/38 NR/NR/A 500,000 509,980
- --------------------------------------------------------------------------------------------------------------------
St. Petersburg, FL Public Improvement RRB,
MBIA Insured, 6.375%, 2/1/12 Aaa/AAA 750,000 795,623
</TABLE>
15 Oppenheimer Florida Municipal Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FLORIDA (CONTINUED)
Stoneybrook, FL CDD Capital
Improvement RB, Series A, 6.10%, 5/1/19 NR/NR $ 830,000 $ 803,108
- --------------------------------------------------------------------------------------------------------------------
Stoneybrook, FL CDD Capital
Improvement RB, Series B, 5.70%, 5/1/08 NR/NR 2,610,000 2,560,488
- --------------------------------------------------------------------------------------------------------------------
Tampa Palms, FL Open Space &
Transportation CDD SPAST RB,
Capital Improvement-Area 7
Phase Two Project, 7.50%, 5/1/18 NR/NR 1,170,000 1,227,143
- --------------------------------------------------------------------------------------------------------------------
Village Center CDD FL Recreational RB,
Series A, MBIA Insured, 5%, 11/1/23 Aaa/AAA/AAA 2,500,000 2,347,800
- --------------------------------------------------------------------------------------------------------------------
Volusia Cnty., FL Educational Facility Authority
RB, Stetson University, Inc., AMBAC Insured,
5.25%, 6/1/29 Aaa/NR/AAA 2,000,000 1,948,400
-----------
50,003,060
- --------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--16.9%
Guam Housing Corp. SFM RB,
Series A, 5.75%, 9/1/31 NR/AAA 2,630,000 2,660,797
- --------------------------------------------------------------------------------------------------------------------
PR CMWLTH Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 540,000 705,116
- --------------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB,
Inverse Floater, 6.75%, 7/1/28(3)(4) NR/NR 2,500,000 2,212,250
- --------------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series W,
Inverse Floater, 7.102%, 7/1/10(3) Baa1/A 1,000,000 1,042,500
- --------------------------------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU Special RRB,
Unrefunded Balance, Series A, 7.90%, 7/1/07 Baa1/BBB+ 130,000 131,717
- --------------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 7.483%, 1/16/15(3) Aaa/AAA 1,000,000 1,090,000
- --------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems
RRB, 5.30%, 7/1/18 NR/NR/BBB 1,500,000 1,461,480
- --------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems
RRB, 5.30%, 7/1/21 NR/NR/BBB 1,000,000 968,470
-----------
10,272,330
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $60,322,395) 98.9% 60,275,390
- --------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.1 677,149
------- -----------
NET ASSETS 100.0% $60,952,539
======= ===========
</TABLE>
16 Oppenheimer Florida Municipal Fund
<PAGE> 17
- --------------------------------------------------------------------------------
To simplify the listings of securities, abbreviations are used per the table
below:
<TABLE>
<S> <C> <C> <C>
CAP --Capital Appreciation IDAU --Industrial Development Authority
CDD --Community Development District MH --Multifamily Housing
CMWLTH --Commonwealth PAU --Power Authority
FAU --Finance Authority RA --Redevelopment Agency
GOB --General Obligation Bonds RB --Revenue Bonds
HCF --Health Care Facilities RRB --Revenue Refunding Bonds
HFA --Housing Finance Agency SFM --Single Family Mtg.
HFAU --Health Facilities Authority SPAST --Special Assessment
HTAU --Highway & Transportation Authority SPO --Special Obligations
</TABLE>
1. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
2. Securities with an aggregate market value of $647,070 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
3. 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 $7,298,500 or 11.97% of the
Fund's net assets as of July 31, 1999.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $2,212,250 or 3.63% of the Fund's net
assets as of July 31, 1999.
As of July 31, 1999, securities subject to the alternative minimum tax amount to
$14,161,326 or 23.23% of the Fund's net assets.
Distribution of investments by industry of issue, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
INDUSTRY MARKET VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Special Assessment $16,057,973 26.6%(1)
Single Family Housing 7,822,407 13.1
Multifamily Housing 5,922,850 9.8
Adult Living Facilities 4,965,250 8.2
Hospital/Healthcare 4,319,737 7.2
Electric Utilities 3,453,700 5.7
Sales Tax 3,390,066 5.6
Highways 3,254,750 5.4
Not-for-Profit Organization 2,338,218 3.9
Corporate Backed 2,066,720 3.4
Higher Education 1,948,400 3.2
General Obligation 1,868,143 3.1
Telephone Utilities 1,090,000 1.8
Marine/Aviation Facilities 1,072,060 1.8
Water Utilities 705,116 1.2
----------- ------
Total $60,275,390 100.0%
=========== ======
</TABLE>
1. Securities with a market value of $702,016 or 4.37% of total investments at
value are represented by pre-refunded securities, collateralized by U.S.
government securities.
See accompanying Notes to Financial Statements.
17 Oppenheimer Florida Municipal Fund
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES July 31, 1999
<TABLE>
<CAPTION>
================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $60,322,395)--see accompanying statement $ 60,275,390
- ----------------------------------------------------------------------------------------------------------------
Cash 108,953
- ----------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 788,564
Shares of beneficial interest sold 107,408
Daily variation on futures contracts--Note 5 34,375
Other 1,397
-----------
Total assets 61,316,087
================================================================================================================
LIABILITIES
Payables and other liabilities:
Dividends 160,359
Shares of beneficial interest redeemed 76,937
Trustees' compensation--Note 1 61,307
Shareholder reports 35,540
Legal, auditing and other professional fees 9,032
Distribution and service plan fees 7,301
Transfer and shareholder servicing agent fees 2,646
Custodian fees 2,360
Other 8,066
-----------
Total liabilities 363,548
================================================================================================================
NET ASSETS $60,952,539
===========
================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $61,340,632
- ----------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (149,812)
- ----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (264,584)
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Notes 3 and 5 26,303
-----------
Net assets $60,952,539
===========
</TABLE>
18 Oppenheimer Florida Municipal Fund
<PAGE> 19
<TABLE>
================================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$35,924,214 and 3,195,475 shares of beneficial interest outstanding) $11.24
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $11.80
- ----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $21,524,231
and 1,911,703 shares of beneficial interest outstanding) $11.26
- ----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $3,504,094
and 311,973 shares of beneficial interest outstanding) $11.23
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Florida Municipal Fund
<PAGE> 20
STATEMENT OF OPERATIONS For the Year Ended July 31, 1999
<TABLE>
================================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 3,519,172
================================================================================================================
EXPENSES
Management fees--Note 4 368,319
- ----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 89,328
Class B 216,400
Class C 32,550
- ----------------------------------------------------------------------------------------------------------------
Shareholder reports 60,194
- ----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 36,209
- ----------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 21,964
- ----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 20,176
- ----------------------------------------------------------------------------------------------------------------
Trustees' compensation--Note 1 19,948
- ----------------------------------------------------------------------------------------------------------------
Insurance expenses 3,169
- ----------------------------------------------------------------------------------------------------------------
Registration and filing fees 1,523
- ----------------------------------------------------------------------------------------------------------------
Other 7,863
---------
Total expenses 877,643
Less reimbursement of expenses by OppenheimerFunds, Inc.--Note 4 (94,486)
Less expenses paid indirectly--Note 1 (12,950)
---------
Net expenses 770,207
================================================================================================================
NET INVESTMENT INCOME 2,748,965
================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on:
Investments 204,676
Closing of futures contracts 219,814
---------
Net realized gain 424,490
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (2,594,407)
----------
Net realized and unrealized loss (2,169,917)
================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 579,048
===========
</TABLE>
See accompanying Notes to Financial Statements.
20 Oppenheimer Florida Municipal Fund
<PAGE> 21
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
1999 1998
===========================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 2,748,965 $ 2,199,751
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 424,490 (11,330)
- ---------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (2,594,407) 841,381
----------- -----------
Net increase in net assets resulting from operations 579,048 3,029,802
===========================================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,711,561) (1,597,270)
Class B (848,422) (717,925)
Class C (128,069) (68,196)
===========================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 2,068,521 7,211,018
Class B 2,942,094 3,780,983
Class C 1,194,095 1,468,391
===========================================================================================================================
NET ASSETS
Total increase 4,095,706 13,106,803
- ---------------------------------------------------------------------------------------------------------------------------
Beginning of period 56,856,833 43,750,030
----------- -----------
End of period (including overdistributed net investment
income of $149,812 and $210,725, respectively) $60,952,539 $56,856,833
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
21 Oppenheimer Florida Municipal Fund
<PAGE> 22
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JULY 31, DECEMBER 31,
1999 1998 1997 1996(1) 1995 1994
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 11.62 $11.47 $ 11.07 $ 11.40 $ 10.26 $ 11.79
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .56 .54 .64 .36 .63 .64
Net realized and unrealized gain (loss) (.39) .19 .37 (.34) 1.14 (1.53)
------- ------ ------ ------- ------- -------
Total income (loss) from
investment operations .17 .73 1.01 .02 1.77 (.89)
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net
investment income (.55) (.58) (.61) (.35) (.63) (.64)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.24 $11.62 $ 11.47 $ 11.07 $ 11.40 $ 10.26
======= ====== ====== ======= ======= =======
=====================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 1.36% 6.52% 9.39% 0.25% 17.60% (7.66)%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $35,924 $35,074 $27,446 $19,366 $19,377 $11,992
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $36,532 $32,153 $24,333 $18,415 $14,508 $ 9,741
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.78% 4.61% 5.70% 5.50% 5.71% 5.90%
Expenses, before reimbursement,
voluntary assumption and
indirect expenses 1.13% 1.15%(4) 1.02%(4) 1.23%(4) 1.36%(4) 1.25%
Expenses, after reimbursement,
voluntary assumption and
indirect expenses 0.95% 0.96% 0.87% 1.09% 0.53% 0.29%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 55% 35% 43% 21% 18% 30%
</TABLE>
1. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were $39,270,015 and $33,326,101, respectively.
22 Oppenheimer Florida Municipal Fund
<PAGE> 23
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JULY 31, DECEMBER 31,
1999 1998 1997 1996(1) 1995 1994
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 11.64 $ 11.49 $ 11.09 $ 11.42 $ 10.27 $11.81
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .47 .46 .55 .31 .55 .56
Net realized and unrealized gain (loss) (.39) .18 .37 (.34) 1.15 (1.54)
------- ------- ------- ------- ------- ------
Total income (loss) from
investment operations .08 .64 .92 (.03) 1.70 (.98)
- ------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income (.46) (.49) (.52) (.30) (.55) (.56)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.26 $ 11.64 $ 11.49 $ 11.09 $ 11.42 $10.27
======= ======= ======= ======= ======= ======
========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 0.60% 5.71% 8.56% (0.19)% 16.81% (8.42)%
========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $21,524 $19,344 $15,348 $12,865 $12,658 $ 7,992
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $21,648 $17,024 $13,812 $12,843 $10,772 $6,987
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.02% 3.85% 4.93% 4.75% 4.92% 5.13%
Expenses, before reimbursement,
voluntary assumption and
indirect expenses 1.88% 1.91%(4) 1.79%(4) 1.97%(4) 2.11%(4) 1.99%
Expenses, after reimbursement,
voluntary assumption and
indirect expenses 1.70% 1.72% 1.64% 1.83% 1.29% 1.03%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 55% 35% 43% 21% 18% 30%
</TABLE>
1. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were $39,270,015 and $33,326,101, respectively.
23 Oppenheimer Florida Municipal Fund
<PAGE> 24
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------------
PERIOD
ENDED
YEAR ENDED JULY 31, DEC. 31,
1999 1998 1997 1996(1) 1995(6)
=====================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $11.61 $11.46 $11.07 $11.40 $10.96
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .47 .46 .53 .31 .20
Net realized and unrealized gain (loss) (.39) .18 .38 (.34) .44
------ ------ ------ ------ ------
Total income (loss) from
investment operations .08 .64 .91 (.03) .64
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income (.46) (.49) (.52) (.30) (.20)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.23 $11.61 $11.46 $11.07 $11.40
====== ====== ====== ====== ======
=====================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 0.60% 5.72% 8.41% (0.22)% 5.86%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $3,504 $2,439 $956 $72 $39
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,260 $1,638 $380 $78 $ 5
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.02% 3.82% 4.87% 4.68% 4.68%
Expenses, before reimbursement,
voluntary assumption and
indirect expenses 1.88% 1.91%(4) 1.75%(4) 1.99%(4) 1.92%(4)
Expenses, after reimbursement,
voluntary assumption and
indirect expenses 1.70% 1.72% 1.60% 1.87% 1.43%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 55% 35% 43% 21% 18%
</TABLE>
1. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were $39,270,015 and $33,326,101,
respectively.
6. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
See accompanying Notes to Financial Statements.
24 Oppenheimer Florida Municipal Fund
<PAGE> 25
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 taxes for individual investors as is
available from municipal securities, consistent with preservation of capital.
The Fund also seeks to offer investors the opportunity to own fund shares exempt
from Florida intangible personal property taxes. 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 on
investments up to $1 million. Class B and Class C shares may be subject to a
contingent deferred sales charge (CDSC). All classes of shares have identical
rights to earnings, assets and voting privileges, except that each class has its
own expenses directly attributable to that class and exclusive voting rights
with respect to matters affecting that class. Classes A, B and C have separate
distribution and/or service plans. 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.
- --------------------------------------------------------------------------------
SECURITIES 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. Options are valued based upon the last sale price on the
principal exchange on which the option is traded or, in the absence of any
transactions that day, the value is based upon the last sale price on the prior
trading date if it is within the spread between the closing bid and asked
prices. If the last sale price is outside the spread, the closing bid is used.
25 Oppenheimer Florida Municipal Fund
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), 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. As of July 31, 1999, the
Fund had available for federal tax purposes an unused capital loss carryover of
approximately $192,000, which expires in 2006.
- -------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. 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,
1999, a provision of $1,860 was made for the Fund's projected benefit
obligations and payments of $8,998 were made to retired trustees, resulting in
an accumulated liability of $60,264 as of July 31, 1999.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or
a portion of annual compensation they are entitled to receive from the Fund.
Under the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Trustees in shares of one or more
Oppenheimer funds selected by the Trustee. The amount paid to the Trustee under
the plan will be determined based upon the performance of the selected funds.
Deferral of Trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
income per share.
26 Oppenheimer Florida Municipal Fund
<PAGE> 27
================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
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 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.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date. Original
issue discount is accreted and premium is amortized in accordance with federal
income tax requirements. For municipal 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 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.
27 Oppenheimer Florida Municipal Fund
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
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, 1999 YEAR ENDED JULY 31, 1998
---------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 789,844 $ 9,221,652 1,195,905 $13,813,731
Dividends and/or
distributions reinvested 71,294 829,646 63,562 733,601
Redeemed (684,647) (7,982,777) (633,408) (7,336,314)
-------- ------------ --------- -----------
Net increase 176,491 $ 2,068,521 626,059 $ 7,211,018
======== ============ ========= ===========
- -----------------------------------------------------------------------------------------------------------
Class B:
Sold 645,846 $ 7,556,033 693,496 $ 8,039,313
Dividends and/or
distributions reinvested 29,901 348,434 22,676 262,010
Redeemed (426,626) (4,962,373) (389,687) (4,520,340)
-------- ------------ --------- -----------
Net increase 249,121 $ 2,942,094 326,485 $ 3,780,983
======== ============ ========= ===========
- -----------------------------------------------------------------------------------------------------------
Class C:
Sold 170,949 $ 1,991,849 149,594 $ 1,731,405
Dividends and/or
distributions reinvested 8,248 95,915 4,135 47,808
Redeemed (77,350) (893,669) (27,020) (310,822)
-------- ------------ --------- -----------
Net increase 101,847 $ 1,194,095 126,709 $ 1,468,391
======== ============ ========= ===========
</TABLE>
================================================================================
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of July 31, 1999, net unrealized depreciation on securities of $47,005 was
composed of gross appreciation of $1,230,240, and gross depreciation of
$1,277,245.
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. 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. The Fund's management
fee for the year ended July 31, 1999, was 0.60% of the average annual net
assets for each class of shares before the voluntary waiver by the Manager.
28 Oppenheimer Florida Municipal Fund
<PAGE> 29
================================================================================
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
CLASS A
AGGREGATE FRONT-END COMMISSIONS ON COMMISSIONS ON COMMISSIONS ON
FRONT-END SALES SALES CHARGES CLASS A SHARES CLASS B SHARES CLASS C SHARES
YEAR CHARGES ON RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
ENDED CLASS A SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
July 31, 1999 $110,080 $20,665 $2,577 $244,821 $13,047
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CONTINGENT CLASS B CONTINGENT DEFERRED CLASS C CONTINGENT DEFERRED
YEAR DEFERRED SALES CHARGES SALES CHARGES RETAINED BY SALES CHARGES RETAINED BY
ENDED RETAINED BY DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
July 31, 1999 $ -- $73,977 $1,998
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
================================================================================
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements
to the Distributor at a rate of up to 0.15% of average annual net assets of
Class A shares. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.15% of the average annual net assets consisting
of Class A shares of the Fund. For the fiscal year ended July 31, 1999,
payments under the Class A Plan totaled $89,328, all of which was paid by the
Distributor to recipients. That included $1,046 paid to an affiliate of the
Distributor's parent company. Any unreimbursed expenses the Distributor incurs
with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
29 Oppenheimer Florida Municipal Fund
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares.
The Distributor retains the asset-based sales charge on Class C shares during
the first year the shares are outstanding. The asset-based sales charges on
Class B and Class C shares allow investors to buy shares without a front-end
sales charge while allowing the Distributor to compensate dealers that sell
those shares.
The Distributor's actual expenses in selling Class B and Class C shares
may be more than the payments it receives from the contingent deferred sales
charges collected on redeemed shares and from the Fund under the plans. If
either the Class B or the Class C plan is terminated by the Fund, the Board of
Trustees may allow the Fund to continue payments of the asset-based sales
charge to the Distributor for distributing shares before the plan was
terminated. The plans allow for the carry-forward of distribution expenses, to
be recovered from asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended July 31, 1999,
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S
DISTRIBUTOR'S AGGREGATE UNREIMBURSED
TOTAL AMOUNTS AMOUNT RETAINED UNREIMBURSED EXPENSES EXPENSES AS % OF
CLASS UNDER PLAN BY DISTRIBUTOR UNDER PLAN NET ASSETS OF CLASS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $216,400 $172,347 $633,643 2.94%
Class C Plan $ 32,550 $ 19,203 $ 30,709 0.88%
</TABLE>
================================================================================
5. FUTURES CONTRACTS
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to protect against changes in interest rates. 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.
30 Oppenheimer Florida Municipal Fund
<PAGE> 31
================================================================================
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 may recognize a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include
the possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the value of
the underlying securities.
As of July 31, 1999, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
NUMBER OF VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATE CONTRACTS JULY 31, 1999 APPRECIATION
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONTRACTS TO SELL
- -----------------
U.S. Treasury Bonds 9/21/99 100 $11,496,875 $73,308
</TABLE>
================================================================================
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 year ended July 31,
1999.
31 Oppenheimer Florida Municipal Fund
<PAGE> 32
INDEPENDENT AUDITOR'S REPORT
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer Florida Municipal Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Florida Municipal Fund as of July
31, 1999, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year
period then ended and the financial highlights for each of the years in the
three-year period then ended, the seven-month period ended July 31, 1996, and
each of the years in the two-year period ended December 31, 1995. 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, 1999, 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, 1999, the results
of its operations for the year then ended, the changes in its net assets for
each of the years in the two-year period then ended, and the financial
highlights for each of the years in the three-year period then ended, the
seven-month period ended July 31, 1996, and each of the years in the two-year
period ended December 31, 1995, in conformity with generally accepted
accounting principles.
KPMG LLP
Denver, Colorado
August 20, 1999
32 Oppenheimer Florida Municipal Fund
<PAGE> 33
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 2000, shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1999.
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, 1999, are eligible for the corporate dividend-received deduction. The
dividends were derived from interest on municipal bonds and are not subject to
federal income tax. To the extent a shareholder is subject to any state or
local tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
33 Oppenheimer Florida Municipal Fund
<PAGE> 34
SHAREHOLDER MEETING (Unaudited)
================================================================================
On June 18, 1999, a shareholder meeting was held at which the following items
and proposals were approved, as described in the Trust's proxy statement for
that meeting. The following is a report of the votes cast:
<TABLE>
<CAPTION>
WITHHELD/ BROKER
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN NON-VOTES TOTAL
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TRUSTEES
Robert G. Galli 2,903,967 42,218 2,946,185
Leon Levy 2,899,747 46,438 2,946,185
Benjamin Lipstein 2,903,324 42,861 2,946,185
Bridget A. Macaskill 2,903,967 42,218 2,946,185
Elizabeth B. Moynihan 2,910,940 35,245 2,946,185
Kenneth A. Randall 2,914,215 31,970 2,946,185
Edward V. Regan 2,918,271 27,914 2,946,185
Russell S. Reynolds, Jr. 2,918,271 27,914 2,946,185
Donald W. Spiro 2,918,271 27,914 2,946,185
Pauline Trigere 2,918,271 27,914 2,946,185
Clayton K. Yeutter 2,918,271 27,914 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 1
Ratification of the selection of KPMG LLP as independent auditors of the Fund for the fiscal year
beginning August 1, 1998.
2,857,610 17,542 71,033 -- 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 2a
Approval to eliminate the Fund's fundamental policy on purchasing securities on margin.
2,182,919 198,730 106,958 457,578 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 2b
Approval to eliminate the Fund's fundamental policy on selling securities short.
2,176,282 201,113 111,211 457,579 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 2c
Approval to eliminate the Fund's fundamental policy on investing in other investment companies.
2,209,937 190,881 87,788 457,579 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 2d
Approval to eliminate the Fund's fundamental policy on purchasing securities of issuers in which
officers or trustees have an interest.
2,181,923 201,976 104,708 457,578 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 2e
Approval to eliminate the Fund's fundamental policy on restricted securities.
2,201,775 196,315 90,516 457,579 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 3a
Approval to amend the Fund's fundamental policy on borrowing.
2,206,214 176,796 105,596 457,579 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 3b
Approval to amend the Fund's fundamental policy on underwriting securities.
2,238,427 153,760 96,420 457,578 2,946,185
- ------------------------------------------------------------------------------------------------------------------
PROPOSAL NO. 3c
Approval to amend the Fund's fundamental policy on lending.
2,201,622 184,514 102,470 457,579 2,946,185
</TABLE>
34 Oppenheimer Florida Municipal Fund
<PAGE> 35
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
Phillip A. Griffiths, 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
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
===============================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
===============================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
===============================================================================
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER
SERVICING AGENT
===============================================================================
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
===============================================================================
INDEPENDENT AUDITORS KPMG LLP
===============================================================================
LEGAL COUNSEL Mayer, Brown & Platt
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 the possible loss of the
principal amount invested.
35 Oppenheimer Florida Municipal Fund
<PAGE> 36
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
INTERNET
24-hr access to account information and transactions
WWW.OPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1-800-525-7048
TELEPHONE 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-6pm ET
1-800-843-4461
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1-800-835-3104
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services,
P.O. Box 5270, Denver, CO 80217-5270
[OPPENHEIMERFUNDS LOGO]
RA0795.001.0799 September 29, 1999
