<PAGE>
-----------------------------------
Semiannual Report January 31, 1999
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OPPENHEIMER
Florida
Municipal Fund
[GRAPHIC]
[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Manager
11 Financial
Statements
30 Officers and
Trustees
32 Information and Services
Report highlights
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o Municipal bonds performed well over the past six months in a
declining-interest-rate environment.
o Several of the Fund's holdings received credit rating upgrades, which enhanced
the value of the securities.
Cumulative Total Returns
For the 6-Month Period
Ended 1/31/99
Class A
Without With
Sales Chg.1 Sales Chg.2
- --------------------------
3.87% -1.07%
- --------------------------
Class B
Without With
Sales Chg.1 Sales Chg.2
- --------------------------
3.48% -1.52%
- --------------------------
Class C
Without With
Sales Chg.1 Sales Chg.2
- --------------------------
3.49% 2.49%
- --------------------------
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. This performance is not annualized.
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%. 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>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Florida Municipal Fund
Dear shareholder,
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Contrary to what many analysts had expected, the U.S. economy appears to have
picked up steam over the past few months. The fourth quarter of 1998 posted the
fastest rate of economic growth in two years, and early indications suggest that
the first quarter of 1999 may follow suit.
With respect to the U.S. bond market, stronger than expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of longer
term taxable bonds have risen from their October 1998 lows, when investors had
bid up prices during the global "flight to quality." At the same time,
tax-exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat. What's more, the disparity
in valuations between large companies, which have led the market's advance, and
smaller ones, which have lagged, has become historically wide.
What do these observations mean for your investments? In our view,
actively managed portfolios that are closely monitored by expert money managers
are likely to provide better returns than passive index investing in 1999.
That's because selectivity is expected to be more critical to performance than
it has been over the past few years. In a potentially overvalued stock market
and rising interest-rate environment, the ability to identify the most promising
securities could become paramount.
Even though many equity investors may be tempted to jump aboard the
technology bandwagon, we suggest a more prudent course: broad diversification
beyond any single asset class, industry, capitalization range or geographic
region. We believe that the risks of this investment environment require
consideration of a broad range of investments and markets, including bonds. That
way, if one market experiences setbacks, one or more of the others may help
cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
February 22, 1999
3 Oppenheimer Florida Municipal Fund
<PAGE>
An interview with your Fund's manager
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How did the Fund perform during the six-month period that ended January 31,
1999?
We are pleased with the Fund's performance over the past six months. Not only
has the municipal bond market rallied overall since August 1, 1998, but several
of our holdings also received credit rating upgrades from the major independent
rating agencies, which helped to increase their investment value.
Why did the municipal bond market rally during the second half of 1998?
When the reporting period began in August 1998, many financial markets around
the world were in disarray and global economic conditions were uncertain. The
U.S. stock market and the higher yielding sectors of the U.S. bond market were
in the midst of a sharp decline triggered by the spread of the global currency
and credit crisis from Asia to Russia and Latin America. Lower overseas demand
for U.S. goods and services was expected to reduce the growth of domestic
corporate earnings, and investors became concerned that U.S. economic growth
might suffer.
Unlike equity investors, fixed income investors tend to welcome slower
economic growth because it helps alleviate inflationary pressures that may be
present
4 Oppenheimer Florida Municipal Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Jerry Webman
Robert E. Patterson
(Portfolio Manager)
in the economy. In addition, slower growth makes it more likely that interest
rates will decline, especially if the Federal Reserve Board cuts key short-term
rates to stimulate economic growth. As a result, prices of high-quality bonds
rose in the third quarter of 1998, especially U.S. Treasury securities and
highly rated municipal bonds. However, municipal bonds lagged the performance of
comparable U.S. Treasury securities over the same period.
Why did U.S. Treasury securities provide higher returns than municipal bonds?
In last summer's uncertain market environment, both domestic and overseas
investors sold investments they perceived as risky. Instead, they flocked to the
relative safety of triple-A-rated U.S. government bonds. Demand for U.S.
Treasury securities was rising at the same time that supply was falling because
of the federal government's success in balancing the budget. When demand for a
particular investment exceeds the available supply of securities, investors
usually bid up the price.
Unlike U.S. Treasury securities, however, municipal bonds experienced
relatively steady demand for an abundant supply of securities. First, because
overseas
5 Oppenheimer Florida Municipal Fund
<PAGE>
Avg Annual Total Returns
For the Periods Ended 12/31/981
Class A
Since
1 year 5 year Inception
- ------------------------------
0.92% 4.46% 5.10%
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Class B
Since
1 year 5 year Inception
- ------------------------------
0.23% 4.35% 5.16%
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Class C
Since
1 year 5 year Inception
- ------------------------------
4.15% N/A 6.72%
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An interview with your Fund's manager
- --------------------------------------------------------------------------------
investors and most institutions receive no tax benefits from municipal bonds,
they did not contribute to an increase in demand within this market sector.
Second, municipalities and other issuers took advantage of low interest rates
last year to finance new projects and refinance existing ones at lower costs.
With the second largest volume of new tax-exempt issuance in history entering
the market in 1998, plenty of securities were available to satisfy demand from
individual investors and mutual funds. Accordingly, while municipal bond prices
rallied when interest rates fell, they did not rise to the extent that prices of
U.S. Treasury securities did.
How was the Fund managed in this environment?
We remained nearly fully invested in a diversified portfolio of tax-exempt
securities from a wide variety of Florida issuers. In fact, because we had
expected the U.S. economy to slow, we positioned the portfolio for slower growth
and lower interest rates well before the six-month reporting period began. As we
stated in our shareholder report six months ago, we focused primarily on bonds
that, in our opinion, are likely to benefit from improving credit profiles, and
we favored bonds that are secured by the revenues of specific projects over
bonds backed by the general taxation power of their issuers.
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 1% (since inception). 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.
6 Oppenheimer Florida Municipal Fund
<PAGE>
We also emphasized bonds that provide protection against being redeemed early,
or "called," by their issuers. Having bonds called when interest rates are
falling often requires us to reinvest the proceeds at lower yields. Therefore,
having such "call protection" was an important part of our strategy over the
past six months.
Later in the six-month reporting period, we shifted our focus to higher
quality bonds, including insured bonds. That's because the differences in yields
between highly rated bonds and lower rated bonds had narrowed substantially
during the second half of last year, and there was little incentive to assume
the additional credit risks that lower rated bonds entail.
In what types of municipal projects did the Fund invest over the past six
months?
We continued to hold bonds financing a wide range of municipal projects, ranging
from airports to hospitals. We have also continued to find attractive
opportunities in housing bonds for the development of new communi-ties
throughout the state. We hold securities supporting the Stonybrook Community
Development District in Southwest Florida, for example, as well as bonds
financing student and faculty housing in the greater Tampa area. Our strategy is
to carefully evaluate and select community development districts that we
perceive as well planned and provide the amenities people want, from quality
schools to ample recreation facilities.
7 Oppenheimer Florida Municipal Fund
<PAGE>
Standardized Yields2
For the 30 Days Ended 1/31/99
- ------------------------------
Class A 4.17%
- ------------------------------
Class B 3.65
- ------------------------------
Class C 3.66
- ------------------------------
An interview with your Fund's manager
- --------------------------------------------------------------------------------
We believe that these projects are vital to Florida's future because of the
strong population influx the state is experi-encing. Florida has done an
excellent job of diversifying its industry base away from tourism and into a
variety of manufacturing and service businesses. In turn, the growth of industry
has attracted workers of all ages from other areas of the country, helping to
boost real estate values.
What is your outlook for Florida's municipal bond market?
We remain very optimistic. Our outlook is especially positive for tax-exempt
bonds, however, because they have become quite inexpensive relative to their
historical relationship with U.S. Treasury securities. In fact, during October
1998, some municipal bond yields equaled the yields of comparable taxable
government bonds. In effect, those who invested in municipal bonds in October
received the income-tax benefits for free!
2. Standardized yield is based on net investment income for the 30-day period
ended January 31, 1999. Falling share prices will tend to artificially raise
yields.
8 Oppenheimer Florida Municipal Fund
<PAGE>
Credit Allocation3
[GRAPHIC]
AAA 44.7%
AA 4.2
A 16.2
BBB 20.2
BB 14.7
While municipal bond yields in Florida and throughout the United States have
moderated somewhat relative to U.S. Treasury securities since this past October,
they remain quite inexpensive compared to historical norms. If the yield
relationship between tax-exempt and taxable bonds returns to more normal levels,
as we expect, 1999 may be a particularly good year for municipal bonds, making
these tax-exempt securities an important part of The Right Way to Invest.
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Top 5 Industries
Percentage of invested assets4
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Special Assessment 21.0%
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Hospital/Healthcare 11.5
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Single Family Housing 10.6
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Multifamily Housing 9.9
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Sales Tax 9.6
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3. Portfolio data are as of January 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.
Securities rated by any rating organization are included in the equivalent
Standard & Poor's rating category. Average credit quality and allocations
include securities rated by national ratings organizations as well as unrated
securities (currently 18.7% of total investments) which have ratings assigned by
the Manager in categories equivalent to those of ratings organizations.
4. Industry weightings are as of January 31, 1999, and are subject to change.
9 Oppenheimer Florida Municipal Fund
<PAGE>
Financials
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10 Oppenheimer Florida Municipal Fund
<PAGE>
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Statement of Investments January 31, 1999 (Unaudited)
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
=========================================================================================================
<S> <C> <C> <C>
Municipal Bonds and Notes--96.9%
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Florida--79.9%
Alachua Cnty., FL HFAU RRB, Santa Fe HCF
Project, Escrowed to Maturity, 6%, 11/15/09 Baa1/AAA $ 940,000 $ 1,042,714
- ---------------------------------------------------------------------------------------------------------
Baker Cnty., FL HA RB, 5.30%, 12/1/23 NR/A 2,000,000 2,004,220
- ---------------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU MH RRB,
Windover Oaks Project, Series A,
6.90%, 2/1/27 NR/AAA 1,000,000 1,140,460
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Brevard Cnty., FL Housing FAU SFM RB,
6.70%, 9/1/27 Aaa/NR 830,000 892,482
- ---------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.70%, 10/1/33 NR/NR/A 1,000,000 1,035,280
- ---------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.75%, 4/1/38 NR/NR/A 1,000,000 1,035,190
- ---------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Stirling Apts. Project, 5.75%, 4/1/38 NR/NR/A 855,000 885,087
- ---------------------------------------------------------------------------------------------------------
Clay Cnty., FL Housing FAU SFM RB,
6.55%, 3/1/28 Aaa/NR 800,000 859,584
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Collier Cnty., FL HFAU RRB,
The Moorings, Inc. Project, 7%, 12/1/19 NR/BBB+/A- 1,000,000 1,118,880
- ---------------------------------------------------------------------------------------------------------
Dade Cnty., FL Aviation RB, Series B,
MBIA Insured, 6.60%, 10/1/22 Aaa/AAA/AA- 1,000,000 1,105,020
- ---------------------------------------------------------------------------------------------------------
Dade Cnty., FL IDAU RB, Miami Cerebral
Palsy Services Project, 8%, 6/1/22 NR/NR 2,230,000 2,457,282
- ---------------------------------------------------------------------------------------------------------
Dade Cnty., FL Professional Sports Franchise
Facilities Tax & CAP RB, MBIA Insured,
Zero Coupon, 5.85%, 10/1/26(1) Aaa/AAA 3,200,000 820,320
- ---------------------------------------------------------------------------------------------------------
Dade Cnty., FL SPO RRB, Series B,
AMBAC Insured, Zero Coupon,
6.25%, 10/1/14(1) Aaa/AAA/AAA 4,755,000 2,304,178
- ---------------------------------------------------------------------------------------------------------
Escambia Cnty., FL HFAU RB, Azalea Trace,
Inc. Project, 6%, 1/1/15 NR/NR 2,000,000 2,081,800
- ---------------------------------------------------------------------------------------------------------
Fishhawk, FL CDD SPAST RB, 7.625%, 5/1/18 NR/NR 1,000,000 1,082,860
- ---------------------------------------------------------------------------------------------------------
FL Heritage Harbor CDD SPAST RB, Series B,
6%, 5/1/03 NR/NR 1,000,000 1,016,900
- ---------------------------------------------------------------------------------------------------------
FL HFA RB, Maitland Club Apts. Project,
Series B-1, AMBAC Insured, 6.75%, 8/1/14(2) Aaa/AAA/AAA 1,000,000 1,100,310
- ---------------------------------------------------------------------------------------------------------
FL HFA RB, Riverfront Apts., Series A,
AMBAC Insured, 6.25%, 4/1/37 Aaa/AAA/AAA 1,400,000 1,517,096
- ---------------------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST RB, Series A,
6.30%, 5/1/02 NR/NR 1,576,000 1,618,142
</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>
Florida (continued)
Grand Haven, FL CDD SPAST RB, Series
B, 6.90%, 5/1/19 NR/NR $ 750,000 $ 779,940
- ---------------------------------------------------------------------------------------------------------
Lee Cnty., FL Housing FAU SFM RB,
Series A-2, 6.85%, 3/1/29 Aaa/NR 890,000 1,015,018
- ---------------------------------------------------------------------------------------------------------
Martin Cnty., FL IDAU RRB, Indiantown
Cogeneration Project, Series
A, 7.875%, 12/15/25 Baa3/BBB-/BBB 2,000,000 2,297,920
- ---------------------------------------------------------------------------------------------------------
Miami Beach, FL HFAU Hospital RB, Mt. Sinai
Medical Center Project, 5.375%, 11/15/18 NR/BBB 2,000,000 1,984,180
- ---------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB, City
Center Historic Convention, Series B,
6.25%, 12/1/16 Baa2/BBB 500,000 540,190
- ---------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB,
City Center Historic Convention,
Series B, 6.35%, 12/1/22 Baa2/BBB 500,000 540,405
- ---------------------------------------------------------------------------------------------------------
Miami, FL HFAU RRB, AMBAC Insured,
Inverse Floater, 6.75%, 8/15/15(3) Aaa/AAA/AAA 2,000,000 2,142,500
- ---------------------------------------------------------------------------------------------------------
Miami, FL Sanitation & Sewer Systems GOB,
FGIC Insured, 6.50%, 1/1/14 Aaa/AAA 1,750,000 1,924,615
- ---------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL School Board Refunding
COP, Series C, FSA Insured, 5%, 8/1/25 Aaa/AAA 1,500,000 1,505,865
- ---------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien,
Series B, MBIA Insured, Zero Coupon,
5.50%, 10/1/28(1) Aaa/AAA/AAA 4,500,000 935,550
- ---------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien,
Series B, MBIA Insured, Zero Coupon,
5.53%, 10/1/34(1) Aaa/AAA/AAA 3,170,000 469,540
- ---------------------------------------------------------------------------------------------------------
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 2,116,076
- ---------------------------------------------------------------------------------------------------------
Orlando, FL Utilities Commission Water &
Electric RB, Inverse Floater, 7.671%,
10/1/17(3) Aa2/AA- 1,000,000 1,133,750
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Palm Beach Cnty., FL Housing FAU MH RB,
Windsor Park Apts. Project, Series A,
5.90%, 6/1/38 NR/NR/A 500,000 527,905
- ---------------------------------------------------------------------------------------------------------
Port St. Lucie, FL Utility RB, Prerefunded,
Series A, FGIC Insured, Zero Coupon,
6.25%, 9/1/16(1) Aaa/AAA 1,045,000 435,817
</TABLE>
12 Oppenheimer Florida Municipal Fund
<PAGE>
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Florida (continued)
St. Petersburg, FL Public Improvement RRB,
MBIA Insured, 6.375%, 2/1/12 Aaa/AAA $ 750,000 $ 815,970
- ---------------------------------------------------------------------------------------------------------
Stoneybrook, FL CDD Capital Improvement RB,
Series A, 6.10%, 5/1/19 NR/NR 830,000 829,427
- ---------------------------------------------------------------------------------------------------------
Stoneybrook, FL CDD Capital Improvement RB,
Series B, 5.70%, 5/1/08 NR/NR 2,610,000 2,590,321
- ---------------------------------------------------------------------------------------------------------
Tampa Palms, FL Open Space & Transportation
CDD SPAST RB, Capital Improvement-Area 7
Phase Two Project, 7.50%, 5/1/18 NR/NR 1,200,000 1,284,144
- ---------------------------------------------------------------------------------------------------------
Village CDD No. 3, FL SPAST RB, MBIA
Insured, 5%, 5/1/19 Aaa/AAA 1,145,000 1,152,271
------------
50,139,209
- ---------------------------------------------------------------------------------------------------------
U.S. Possessions--17.0%
Guam Housing Corp. SFM RB,
Series A, 5.75%, 9/1/31 NR/AAA 2,500,000 2,731,375
- ---------------------------------------------------------------------------------------------------------
PR CMWLTH Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 540,000 743,445
- ---------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series W, Inverse
Floater, 7.044%, 7/1/10(3) Baa1/A 1,000,000 1,122,500
- ---------------------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU Special RRB,
Unrefunded Balance, Series A, 7.90%,
7/1/07 Baa1/BBB+ 130,000 133,062
- ---------------------------------------------------------------------------------------------------------
PR Public Buildings Authority RB,
Series B, 5.25%, 7/1/21 Baa1/A 2,300,000 2,337,766
- ---------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 7.32%, 1/16/15(3) Aaa/AAA 1,000,000 1,085,000
- ---------------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems
RRB, 5.30%, 7/1/18 NR/NR/BBB 1,500,000 1,519,830
- ---------------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric
Systems RRB, 5.30%, 7/1/21 NR/NR/BBB 1,000,000 1,010,630
------------
10,683,608
------------
Total Municipal Bonds and Notes (Cost $57,279,171) 60,822,817
</TABLE>
13 Oppenheimer Florida Municipal Fund
<PAGE>
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Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
=========================================================================================================
<S> <C> <C>
Short-Term Tax-Exempt Obligations--2.4%
- ---------------------------------------------------------------------------------------------------------
Martin Cnty., FL PC RRB, Florida Power & Light Co. Project,
3.125%, 2/1/99(4) $1,000,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------------------
St. Lucie, FL PC RRB, Florida Power & Light Co. Project,
3.125%, 2/1/99(4) 500,000 500,000
Total Short-Term Tax-Exempt Obligations (Cost $1,500,000) 1,500,000
- ---------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $58,779,171) 99.3% 62,322,817
- ---------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.7 412,772
---------- ------------
Net Assets 100.0% $ 62,735,589
========== ============
</TABLE>
To simplify the listings of securities, abbreviations are used per the table
below:
CAP --Capital Appreciation
CDD --Community Development District
CMWLTH--Commonwealth
COP --Certificates of Participation
FAU --Finance Authority
GOB --General Obligation Bonds
HA --Hospital Authority
HCF --Health Care Facilities
HFA --Housing Finance Agency
HFAU --Health Facilities Authority
HTAU --Highway & Transportation Authority
IDAU --Industrial Development Authority
MH --Multifamily Housing
PAU --Power Authority
PC --Pollution Control
RA --Redevelopment Agency
RB --Revenue Bonds
RRB --Revenue Refunding Bonds
SFM --Single Family Mortgage
SPAST --Special Assessment
SPO --Special Obligations
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 $660,186 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 $5,483,750 or 8.74% of the
Fund's net assets as of January 31, 1999.
4. Variable rate security. 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, 1999.
14 Oppenheimer Florida Municipal Fund
<PAGE>
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
As of January 31, 1999, securities subject to the alternative minimum tax amount
to $13,485,172 or 21.50% 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 $13,070,890 21.0%
- -------------------------------------------------------------------------------
Hospital/Healthcare 7,173,614 11.5
- -------------------------------------------------------------------------------
Single Family Housing 6,598,770 10.6
- -------------------------------------------------------------------------------
Multifamily Housing 6,141,018 9.9
- -------------------------------------------------------------------------------
Sales Tax 5,958,405 9.5
- -------------------------------------------------------------------------------
Electric Utilities 4,664,210 7.5
- -------------------------------------------------------------------------------
Municipal Leases 3,843,631 6.2
- -------------------------------------------------------------------------------
Adult Living Facilities 3,200,680 5.1
- -------------------------------------------------------------------------------
Not-for-Profit Organization 2,457,282 3.9
- -------------------------------------------------------------------------------
Corporate Backed 2,297,920 3.7
- -------------------------------------------------------------------------------
General Obligation 1,924,615 3.1
- -------------------------------------------------------------------------------
Water Utilities 1,179,262 1.9
- -------------------------------------------------------------------------------
Highways 1,122,500 1.8
- -------------------------------------------------------------------------------
Marine/Aviation Facilities 1,105,020 1.8
- -------------------------------------------------------------------------------
Telephone Utilities 1,085,000 1.7
- -------------------------------------------------------------------------------
Pollution Control 500,000 0.8
----------- -----
Total $62,322,817 100.0%
=========== =====
See accompanying Notes to Financial Statements.
15 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==================================================================================
<S> <C>
Assets
Investments, at value (cost $58,779,171)--see accompanying statement $62,322,817
- ----------------------------------------------------------------------------------
Cash 522,000
- ----------------------------------------------------------------------------------
Receivables and other assets:
Interest 753,738
Shares of beneficial interest sold 77,858
Other 2,332
-----------
Total assets 63,678,745
==================================================================================
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed 684,892
Dividends 149,744
Trustees' compensation--Note 1 69,604
Distribution and service plan fees 7,784
Daily variation on futures contracts--Note 5 6,250
Transfer and shareholder servicing agent fees 1,907
Other 22,975
-----------
Total liabilities 943,156
==================================================================================
Net Assets $62,735,589
===========
==================================================================================
Composition of Net Assets
Paid-in capital $60,084,836
- ----------------------------------------------------------------------------------
Overdistributed net investment income (157,646)
- ----------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (728,997)
- ----------------------------------------------------------------------------------
Net unrealized appreciation on investments--Notes 3 and 5 3,537,396
-----------
Net assets $62,735,589
===========
</TABLE>
16 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$36,467,357 and 3,090,098 shares of beneficial interest outstanding) $11.80
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $12.39
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $22,754,056 and 1,925,187 shares of beneficial interest outstanding) $11.82
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $3,514,176 and 298,048 shares of beneficial interest outstanding) $11.79
See accompanying Notes to Financial Statements.
17 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
===============================================================================
Investment Income
Interest $1,701,689
===============================================================================
Expenses
Management fees--Note 4 181,736
- -------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 45,143
Class B 105,626
Class C 15,130
- -------------------------------------------------------------------------------
Shareholder reports 18,780
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 16,344
- -------------------------------------------------------------------------------
Trustees' compensation--Note 1 11,589
- -------------------------------------------------------------------------------
Custodian fees and expenses 9,172
- -------------------------------------------------------------------------------
Legal, auditing and other professional fees 8,684
- -------------------------------------------------------------------------------
Registration and filing fees 1,283
- -------------------------------------------------------------------------------
Other 4,995
----------
Total expenses 418,482
Less reimbursement of expenses by OppenheimerFunds, Inc.--Note 4 (46,947)
Less expenses paid indirectly--Note 4 (6,710)
----------
Net expenses 364,825
===============================================================================
Net Investment Income 1,336,864
===============================================================================
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (27,048)
Closing of futures contracts (12,875)
----------
Net realized loss (39,923)
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 916,686
----------
Net realized and unrealized gain 876,763
===============================================================================
Net Increase in Net Assets Resulting from Operations $2,213,627
==========
See accompanying Notes to Financial Statements.
18 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
January 31, 1999 Year Ended
(Unaudited) July 31, 1998
=========================================================================================
<S> <C> <C>
Operations
Net investment income $ 1,336,864 $ 2,199,751
- -----------------------------------------------------------------------------------------
Net realized loss (39,923) (11,330)
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 916,686 841,381
----------- -----------
Net increase in net assets resulting from operations 2,213,627 3,029,802
=========================================================================================
Dividends to Shareholders
Dividends from net investment income:
Class A (828,127) (1,597,270)
Class B (398,359) (717,925)
Class C (57,299) (68,196)
=========================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 825,796 7,211,018
Class B 3,092,226 3,780,983
Class C 1,030,892 1,468,391
=========================================================================================
Net Assets
Total increase 5,878,756 13,106,803
- -----------------------------------------------------------------------------------------
Beginning of period 56,856,833 43,750,030
----------- -----------
End of period (including overdistributed net investment
income of $157,646 and $210,725, respectively) $62,735,589 $56,856,833
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
----------------------------------------
Six Months
Ended
January 31, Year Ended July 31,
1999 (Unaudited) 1998 1997
============================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.62 $11.47 $11.07
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .28 .54 .64
Net realized and unrealized gain (loss) .17 .19 .37
------ ------ ------
Total income (loss) from investment operations .45 .73 1.01
- --------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income (.27) (.58) (.61)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $11.80 $11.62 $11.47
====== ====== ======
============================================================================================
Total Return, at Net Asset Value(3) 3.87% 6.52% 9.39%
============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $36,467 $35,074 $27,446
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $36,164 $32,153 $24,333
- --------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.54%(4) 4.61% 5.70%
Expenses, before reimbursement and voluntary
assumption by the Manager or Distributor(5) 1.08%(4) 1.15% 1.02%
Expenses, net of reimbursement and voluntary
assumption by the Manager or Distributor 0.91%(4) 0.96% 0.87%
- --------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 24% 35% 43%
</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. 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.
20 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
- ------------------------------------- ----------------------------------------
Six Months
Ended
Year Ended December 31, January 31, Year Ended July 31,
1996(2) 1995 1994 1999 (Unaudited) 1998 1997
===================================================================================
<S> <C> <C> <C> <C> <C>
$11.40 $10.26 $11.79 $11.64 $11.49 $11.09
- -----------------------------------------------------------------------------------
.36 .63 .64 .24 .46 .55
(.34) 1.14 (1.53) .17 .18 .37
------ ------ ------ ------ ------ ------
.02 1.77 (.89) .41 .64 .92
- -----------------------------------------------------------------------------------
(.35) (.63) (.64) (.23) (.49) (.52)
- -----------------------------------------------------------------------------------
$11.07 $11.40 $10.26 $11.82 $11.64 $11.49
====== ====== ====== ====== ====== ======
===================================================================================
0.25% 17.60% (7.66)% 3.48% 5.71% 8.56%
===================================================================================
$19,366 $19,377 $11,992 $22,754 $19,344 $15,348
- -----------------------------------------------------------------------------------
$18,415 $14,508 $9,741 $20,944 $17,024 $13,812
- -----------------------------------------------------------------------------------
5.50%(4) 5.71% 5.90% 3.77%(4) 3.85% 4.93%
1.23%(4) 1.36% 1.25% 1.84%(4) 1.91% 1.79%
1.09%(4) 0.53% 0.29% 1.67%(4) 1.72% 1.64%
- -----------------------------------------------------------------------------------
21% 18% 30% 24% 35% 43%
</TABLE>
4. Annualized.
5. 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.
6. 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, 1999, were $17,441,947 and $14,257,950, respectively.
21 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B (continued)
----------------------------------------
Year
Ended
July 31, Year Ended December 31,
1996(2) 1995 1994
============================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.42 $10.27 $11.81
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .31 .55 .56
Net realized and unrealized gain (loss) (.34) 1.15 (1.54)
------ ------ ------
Total income (loss) from investment operations (.03) 1.70 (.98)
- --------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income (.30) (.55) (.56)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $11.09 $11.42 $10.27
====== ====== ======
============================================================================================
Total Return, at Net Asset Value(3) (0.19)% 16.81% (8.42)%
============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $12,865 $12,658 $7,992
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $12,843 $10,772 $6,987
- --------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.75%(4) 4.92% 5.13%
Expenses, before reimbursement and voluntary
assumption by the Manager or Distributor(5) 1.97%(4) 2.11% 1.99%
Expenses, net of reimbursement and voluntary
assumption by the Manager or Distributor 1.83%(4) 1.29% 1.03%
- --------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 21%(4) 18% 30%
</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. 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.
22 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
- ------------------------------------------------------------------------
Six Months Period
Ended Ended
January 31, Year Ended July 31, December 31,
1999 (Unaudited) 1998 1997 1996(2) 1995(1)
========================================================================
<S> <C> <C> <C> <C>
$11.61 $11.46 $11.07 $11.40 $10.96
- ------------------------------------------------------------------------
.24 .46 .53 .31 .20
.17 .18 .38 (.34) .44
- ------ ------ ------ ------ ------
.41 .64 .91 (.03) .64
- ------------------------------------------------------------------------
(.23) (.49) (.52) (.30) (.20)
- ------------------------------------------------------------------------
$11.79 $11.61 $11.46 $11.07 $11.40
====== ====== ====== ====== ======
========================================================================
3.49% 5.72% 8.41% (0.22)% 5.86%
========================================================================
$3,514 $2,439 $956 $72 $39
- ------------------------------------------------------------------------
$3,007 $1,638 $380 $78 $5
- ------------------------------------------------------------------------
3.77%(4) 3.82% 4.78% 4.68%(4) 4.68%(4)
1.84%(4) 1.91% 1.75% 1.99%(4) 1.92%(4)
1.67%(4) 1.72% 1.60% 1.87%(4) 1.43%(4)
- ------------------------------------------------------------------------
24% 35% 43% 21% 18%
</TABLE>
4. Annualized.
5. 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.
6. 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, 1999, were $17,441,947 and $14,257,950, respectively.
See accompanying Notes to Financial Statements.
23 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 current income exempt from
federal income tax by investing in municipal securities, while attempting to
preserve capital. It also offers 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.
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, 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, 1998, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $689,000, which expires between 2002 and 2006.
24 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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 six months ended
January 31, 1999, a provision of $1,578 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $68,980 as of
January 31, 1999.
The Board of Trustees had adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual fees 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 Trustee 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.
- --------------------------------------------------------------------------------
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 on securities purchased
is amortized over the life of the respective securities using the effective
yield method, in accordance with federal income tax requirements. For bonds
acquired after April 30, 1993, on disposition or maturity, taxable ordinary
income is recognized to the extent of the lesser of gain or market discount that
would have accrued over the holding period. Realized gains and losses on
investments and unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for federal income tax
purposes.
25 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
The Fund concentrates its investments in Florida and, therefore, may have more
credit risks related to the economic conditions of Florida than a portfolio with
a broader geographical diversification.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended January 31, 1999 Year Ended July 31, 1998
--------------------------------- -------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 411,587 $ 4,827,815 1,195,905 $ 13,813,731
Dividends reinvested 33,396 391,320 63,562 733,601
Redeemed (373,869) (4,393,339) (633,408) (7,336,314)
-------- ------------ --------- ------------
Net increase 71,114 $ 825,796 626,059 $ 7,211,018
======== ============ ========= ============
- ---------------------------------------------------------------------------------------
Class B:
Sold 425,876 $ 5,011,029 693,496 $ 8,039,313
Dividends reinvested 13,731 161,100 22,676 262,010
Redeemed (177,002) (2,079,903) (389,687) (4,520,340)
-------- ------------ --------- ------------
Net increase 262,605 $ 3,092,226 326,485 $ 3,780,983
======== ============ ========= ============
- ---------------------------------------------------------------------------------------
Class C:
Sold 87,352 $ 1,024,301 149,594 $ 1,731,405
Dividends reinvested 3,736 43,745 4,135 47,808
Redeemed (3,166) (37,154) (27,020) (310,822)
-------- ------------ --------- ------------
Net increase 87,922 $ 1,030,892 126,709 $ 1,468,391
======== ============ ========= ============
</TABLE>
26 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
3. Unrealized Gains and Losses on Investments
As of January 31, 1999, net unrealized appreciation on investments of $3,543,646
was composed of gross appreciation of $3,549,945, and gross depreciation of
$6,299.
================================================================================
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. The Funds management fee for the six months ended
January 31, 1999 was 0.60% of the average annual net assets of Class A, Class B
and Class C shares before the voluntary waiver by the Manager.
For the six months ended January 31, 1999, commissions (sales
charges paid by investors) on sales of Class A shares totaled $69,333, of which
$11,658 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 A,
Class B and Class C shares totaled $1,398, $157,306 and $5,597, respectively.
During the six months ended January 31, 1999, OFDI received contingent deferred
sales charges of $46,723 upon redemption of Class B shares as reimbursement for
sales commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund and other Oppenheimer
funds. OFS's total costs of providing such services are allocated ratably to
these funds.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
27 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates (continued)
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.
The Fund has adopted a Distribution and Service Plan for Class B
shares to reimburse OFDI for its 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 for its services rendered in distributing 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. Each fee is 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, 1999, OFDI
retained $84,155 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, 1999, OFDI had incurred excess distribution and servicing costs
of $624,093 for Class B.
The Fund has adopted a Distribution and Service Plan for Class C
shares to compensate OFDI for its 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. Each fee is 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, 1999, OFDI retained $11,252 as compensation for Class C
sales commissions and service fee advances, as well as financing costs. If the
Plan is terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to OFDI for distributing
shares before the Plan was terminated. As of January 31, 1999, OFDI had incurred
excess distribution and servicing costs of $27,727 for Class C.
28 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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 than
actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities (initial margin) in an amount equal to a
certain percentage of the contract value. Subsequent payments (variation margin)
are made or received by the Fund each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized gain or loss when the contract
is closed or expires.
Risks of entering into futures contracts (and related options)
include the possibility that there may be an illiquid market and that a change
in the value of the contract or option may not correlate with changes in the
value of the underlying securities.
As of January 31, 1999, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Expiration Number of Valuation as of Unrealized
Contract Description Date Contracts January 31, 1999 Depreciation
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Sell
U.S. Treasury Bonds, 20 yr. 3/99 50 $6,400,000 $6,250
</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 six months ended
January 31, 1999.
29 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 Portfolio Citibank, N.A.
Securities
================================================================================
Independent Auditors KPMG 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
by 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, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
30 Oppenheimer Florida Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
================================================================================
Real Asset Funds
- --------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
================================================================================
Global Stock Funds
- --------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth & Income
Company Fund Europe Fund Fund
================================================================================
Stock Funds
- --------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Quest Capital Value Fund Quest Value Fund
Fund Large Cap Growth Fund
================================================================================
Stock & Bond Funds
- --------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Disciplined Allocation
Income Fund1 Quest Balanced Fund
Quest Opportunity Value Fund Multiple Strategies Fund
Value Fund Equity Income Fund Convertible Securities
Fund
================================================================================
Taxable Bond Funds
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International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government
High Yield Fund Bond Fund Fund
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Municipal Bond Funds
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California Municipal Fund2 Pennsylvania Municipal Rochester Division:
Florida Municipal Fund2 Fund2 Rochester Fund
New Jersey Municipal Fund2 Municipal Bond Fund Municipals
New York Municipal Fund2 Insured Municipal Fund Limited Term New York
Intermediate Municipal Municipal Fund
Fund
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Money Market Funds3
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Money Market Fund Cash Reserves
1. On 12/22/98, the Fund's name was changed from "Main Street Income & Growth
Fund."
2. Available only to investors in certain states.
3. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
31 Oppenheimer Florida Municipal Fund
<PAGE>
Information and services
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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 or by visiting our website. 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 or website 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(R)
Distributor, Inc.
Internet
24-hr access to account
information. Online
transactions now available
- ----------------------------
www.oppenheimerfunds.com
- ----------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- ----------------------------
1-800-525-7048
- ----------------------------
Account Transactions
Mon-Fri 8:30am-8pm ET
- ----------------------------
1-800-852-8457
- ----------------------------
PhoneLink
24-hr automated information
and automated transactions
- ----------------------------
1-800-533-3310
- ----------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
- ----------------------------
1-800-843-4461
- ----------------------------
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
- ----------------------------
1-800-835-3104
- ----------------------------
RS0795.001.0199 April 1, 1999
