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[GRAPHIC]
Annual Report July 31, 2000
Oppenheimer
Florida Municipal Fund
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REPORT HIGHLIGHTS
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CONTENTS
1 President's Letter
3 An Interview with Your Fund's Manager
7 Fund Performance
12 Financial Statements
29 Independent Auditors' Report
30 Federal Income Tax Information
31 Officers and Trustees
Despite lower municipal bond prices over the past year, the municipal bond
market began to rally during the first quarter of 2000.
During the first seven months of 2000, Florida's tax-exempt bond market has
benefited from greater demand and a reduced supply of new issues.
We believe that municipal bonds currently offer compelling value compared to
30-year U.S. Treasury bonds.
Average Annual
Total Returns*
For the 1-Year Period
Ended 7/31/00
Class A
Without With
Sales Chg. Sales Chg.
--------------------------
1.28% -3.54%
Class B
Without With
Sales Chg. Sales Chg.
--------------------------
0.51% -4.27%
Class C
Without With
Sales Chg. Sales Chg.
--------------------------
0.51% -0.44%
*See Notes on page 10 for further details.
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PRESIDENT'S LETTER
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[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Florida Municipal Fund
Dear Shareholder,
The 1990s, although not free of volatility, were distinguished by an overall
bull market. In contrast, the year 2000 has been characterized so far as a
relatively difficult investment environment with high levels of volatility.
As we entered the year, a vital concern weighing on investors' minds was
growing evidence of a trend toward higher inflation. While productivity
improvements and various economic forces helped keep inflation low over the last
decade, the year 2000 has seen upward pressure on wages and some prices. That's
primarily because the U.S. economy has been growing at a vigorous pace, creating
a labor shortage for businesses and high spending levels among consumers. In
response, since the summer of 1999, the Federal Reserve Board raised short-term
interest rates six times through June 30, 2000, in an attempt to forestall
inflationary pressures.
During that period, higher interest rates adversely affected many stocks and
bonds. In a dramatic decline, previously high-flying technology stocks generally
fell to more reasonable valuations. At the same time, long-neglected value
stocks began to attract investor interest. The result: narrowing of the
valuation gap between growth stocks and value stocks. Finally, in the bond
market, higher interest rates caused prices of most fixed income securities to
fall.
At OppenheimerFunds, we were not surprised by these developments, many of
which we anticipated in our recent letters to investors. What did concern us was
that, prior to the April 2000 correction, we began to see disturbing signs that
short-term trading was taking place not just in technology stocks, but also in
mutual funds. Prudent investors will understand our concern: most stock and bond
funds are carefully designed as long-term investments to help individuals and
families progress toward significant financial goals. In general, short-term
trading is risky and may compromise a well planned financial strategy. It may
also result in unforeseen adverse consequences, such as unnecessarily high tax
bills.
1 OPPENHEIMER FLORIDA MUNICIPAL FUND
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PRESIDENT'S LETTER
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We continue to believe that maintaining a long-term perspective and
practicing diversification are the fundamental drivers of consistent performance
over time. These strategies have helped individual investors, as well as
professional investors, weather declining markets and participate in rising
ones. On the following pages, your portfolio manager discusses the long-term
strategies and particular investment decisions that affected your fund during
the reporting period.
You can remain confident that our portfolio managers will continue to monitor
areas of opportunity in the arenas in which your fund invests, as the effects of
today's changing investment environment take hold. Knowing what's going on in
the world's economies, markets and companies--and making investment decisions
designed to try to take advantage of them over the long term--is central to what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
August 21, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of any particular fund. Specific
discussion, as it applies to your Fund, is contained in the pages that follow.
Stocks and bonds have different types of investment risks; stocks are subject to
market volatility and bonds are subject to credit and interest rate risks.
2 OPPENHEIMER FLORIDA MUNICIPAL FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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How did Oppenheimer Florida Municipal Bond Fund perform during the one-year
period that ended July 31, 2000?
A. During the reporting period, the Fund faced a difficult investment
environment. Inflation fears and higher interest rates eroded most tax-exempt
bond prices, especially during the last five months of 1999. Despite these
factors, however, we began to see signs of a potential market recovery in the
first quarter of 2000, as well as in June and July. Most significant was that
demand for municipal bonds from individual investors surged. At the same time,
the available supply of newly issued municipal bonds has fallen. Nevertheless,
municipal bond price averages ended the one-year reporting period at lower
levels than where they began.
Why have higher interest rates negatively affected municipal bond prices?
Fixed income investors generally dislike rising interest rates, which tend to
erode the prices of their previously issued, lower yielding bonds. This is
because the older bonds must drop in price in order to attract investors with
higher, more competitive yields. However, investors with a long-term perspective
may take advantage of a rising interest rate environment to benefit from higher
levels of current income. Such was the case with many of the Fund's holdings
over the past year: as interest rates rose, so did the Fund's yield. This
enabled us to maintain the Fund's income stream in a declining market.
Why has the Federal Reserve Board been raising interest rates?
The Federal Reserve Board, which sets U.S. monetary policy, has been raising key
short-term interest rates over the past year because of inflation concerns. The
U.S. economy has been growing so strongly that it may threaten to reignite
forces potentially leading to higher prices and wages. Most of us have
3 OPPENHEIMER FLORIDA MUNICIPAL FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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Average Annual
Total Returns
For the Periods Ended 6/30/001
Class A Since
1-Year 5-Year Inception
---------------------------------------------
-5.01% 3.74% 3.65%
Class B Since
1-Year 5-Year Inception
---------------------------------------------
-5.74% 3.65% 3.72%
Class C Since
1-Year 5-Year Inception
---------------------------------------------
-1.97% N/A 3.93%
seen ample evidence of this phenomenon recently in the form of higher gasoline
and heating oil prices. With unemployment currently hovering near record low
levels, we have also seen upward pressure on wages, as growing companies compete
for a limited number of skilled workers.
In response to these developments, the Federal Reserve Board raised interest
rates several times during the 12-month reporting period. When added to the
single interest rate hike implemented before the reporting period began, the Fed
has raised interest rates by 1.75 percentage points since mid-June 1999. These
actions are intended to slow economic growth by making borrowing more expensive
for businesses and consumers.
Why have market conditions improved recently?
Although the market trended consistently downward during the last five months of
1999, the municipal bond market began to rally during the first quarter of 2000
and again in June and July. There are two primary reasons for this: investors'
interest rate expectations and a reduced supply of municipal bonds.
After more than a year of rising interest rates, evidence has begun to emerge
that the Fed's policies may be starting to reduce the growth rate of the U.S.
economy. Key economic statistics measuring trends in consumer spending, new home
construction, employment and other factors have begun to decline to more
sustainable levels. Accordingly, some investors believe that most--but not
necessarily all--interest rate increases may be behind us, and they are buying
bonds to lock in prevailing high yields. This has been particularly true of
individual investors who have shifted assets out of the stock market in the wake
of heightened volatility among equities.
In addition, the supply of new municipal bonds is down sharply from the
levels of a year ago. This is primarily the result of the strong U.S. economy,
which has helped create larger-than-
1. See page 10 for further details.
4 OPPENHEIMER FLORIDA MUNICIPAL FUND
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Standardized Yields2
For the 30-days Ended 7/31/00
------------------------------
Class A 5.13%
------------------------------
Class B 4.63
------------------------------
Class C 4.63
expected tax revenues for many state and local governments. Because of these
unexpectedly large revenues, municipalities have had less need to borrow money.
In fact, some of our seasoned, higher yielding holdings issued by Florida
community-development districts have received credit rating upgrades as their
fiscal conditions improve.
Of course, there is no guarantee that these beneficial trends will persist or
that market conditions will continue to improve.
How was the Fund managed in this environment?
We have continued to seek to reposition the portfolio to lock in attractive
yields and extend protection against bonds being retired. However, our ability
to accomplish this has been limited by market conditions. Because demand for
Florida municipal bonds has come primarily from individual investors, and not
from institutional investors, some of our institutional-oriented, lower rated
bonds declined more in price relative to higher rated bonds that individuals are
buying. We have generally retained these holdings as we wait for institutional
investors to re-enter the market and create greater liquidity--and higher
prices--for these issues.
When making new purchases, we focused primarily on insured bonds from
Florida issuers with maturities in the 20-year range. These are the types of
bonds that tend to appeal most to individual investors, which potentially makes
them easier to sell when the time comes. With the supply of Florida bonds
dwindling, we have also found opportunities in the bonds of U.S. territories,
such as Puerto Rico, Guam and the U.S. Virgin Islands, which provide income that
is federally tax-exempt for Florida residents. Keep in mind that, while
individual holdings may be insured, the Fund itself is not.
2. Standardized yield is based on net investment income for the 30-day period
ended July 31, 2000. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER FLORIDA MUNICIPAL FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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Credit Allocation3
[CHART]
. AAA 38.8%
. AA 8.1
. A 9.5
. BBB 22.2
. BB 21.4
What is your outlook for the near future?
We remain generally optimistic. At current levels, we believe that municipal
bonds--and municipal bond funds--represent compelling investment values relative
to comparable taxable securities.
Over the near term, the direction of the U.S. economy remains uncertain. If
the current higher interest rates ultimately slow the economy without triggering
recession, interest rates should then begin to decline and bonds may benefit. In
our opinion, maintaining a long-term perspective that spans economic cycles such
as these is an important part of what makes OppenheimerFunds The Right Way to
Invest.
Top Five Industries4
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Special Assessment 24.6%
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Multifamily Housing 10.2
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Single Family Housing 9.2
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Sales Tax 9.1
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Hospital/Healthcare 7.4
3. Portfolio data is subject to change. Percentages are as of July 31, 2000, and
are dollar-weighted based on total market value of investments. Securities rated
by any rating organization are included in the equivalent Standard & Poor's
rating category. Average credit quality and allocation include rated securities
and those not rated by a national rating organization (currently 29.4% of total
investments) but for which the ratings given above have been assigned by the
Manager for internal purposes as being comparable, in the Manager's judgment, to
securities rated by a rating agency in the same category.
4. Portfolio is subject to change. Percentages are as of July 31, 2000, and are
based on total market value of investments.
6 OPPENHEIMER FLORIDA MUNICIPAL FUND
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FUND PERFORMANCE
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How has the Fund performed? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended July 31, 2000, 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, 2000, Oppenheimer Florida Municipal Bond Fund's performance was limited
by adverse economic and fixed income market conditions, including inflation
fears and rising interest rates. Because of the relatively limited demand for
institutional-oriented bonds, the portfolio managers generally held onto their
institutional issues during the reporting period. The managers have sought to
reposition the portfolio more defensively by reducing the Fund's holdings of
out-of-favor bonds and by improving the overall credit quality of the portfolio.
The Fund's portfolio holdings, allocations and investment style are subject to
change.
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 until July 31, 2000. In the case of Class A and Class B shares,
performance is measured from inception of those classes on October 1, 1993. In
the case of Class C shares, performance is measured from 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, the applicable contingent deferred sales
charge on Class B and Class C shares, and reinvestments of all dividends and
capital gains distributions.
The Fund's performance is compared to the performance 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
dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects 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 the index.
7 OPPENHEIMER FLORIDA MUNICIPAL FUND
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FUND PERFORMANCE
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Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[GRAPH]
Oppenheimer Florida Lehman Brothers
Municipal Fund (Class A) Municipal Bond Index
10/1/93 9,525 10,000
12/31/93 9,943 10,140
12/31/94 9,179 9,616
12/31/95 10,791 11,295
7/31/96 10,817 11,346
7/31/97 11,829 12,509
7/31/98 12,598 13,259
7/31/99 12,768 13,641
7/31/00 12,930 14,229
Average Annual Total Return of Class A Shares of the Fund at 7/31/002
1-Year-3.54% 5-Year 3.96% Life 3.85%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[GRAPH]
Oppenheimer Florida Lehman Brothers
Municipal Fund (Class B) Municipal Bond Index
10/1/93 10,000 10,000
12/31/93 10,434 10,140
12/31/94 9,553 9,616
12/31/95 11,156 11,295
7/31/96 11,135 11,346
7/31/97 12,085 12,509
7/31/98 12,774 13,259
7/31/99 12,848 13,641
7/31/00 12,994 14,229
Average Annual Total Return of Class B Shares of the Fund at 7/31/002
1-Year-4.27% 5-Year 3.85% Life 3.92%
1. The Fund changed its fiscal year end from December 31 to July 31.
2. See page 10 for further details.
8 OPPENHEIMER FLORIDA MUNICIPAL FUND
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Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[GRAPH]
Oppenheimer Florida Lehman Brothers
Municipal Fund (Class C) Municipal Bond Index
8/29/95 10,000 10,000
12/31/95 10,585 10,479
7/31/96 10,561 10,526
7/31/97 11,447 11,605
7/31/98 12,100 12,301
7/31/99 12,171 12,655
7/31/00 12,232 13,201
Average Annual Total Return of Class C Shares of the Fund at 7/31/002
1-Year-0.44% Life 4.20%
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 begins on 8/31/95 for
Class C.
Past performance is not predictive of future performance. Graphs are not drawn
to same scale.
9 OPPENHEIMER FLORIDA MUNICIPAL FUND
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NOTES
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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 quarterly
updates on the Fund's performance, please contact your financial advisor, call
us at 1.800.525.7048 or visit our website at www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares were first publicly offered on 10/1/93. The average annual total
returns are shown net of the applicable 4.75% maximum initial sales charge.
Class B shares of the Fund were first publicly offered on 10/1/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the "life-of-class" return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 8/29/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 OPPENHEIMER FLORIDA MUNICIPAL FUND
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Financials
11 OPPENHEIMER FLORIDA MUNICIPAL FUND
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STATEMENT OF INVESTMENTS July 31, 2000
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
================================================================================================
Municipal Bonds and Notes--98.9%
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<S> <C> <C> <C>
Florida--82.8%
Alachua Cnty., FL HFAU RRB, Santa Fe HCF Project,
Escrowed to Maturity, 6%, 11/15/09 NR/AAA $ 875,000 $ 914,760
------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU MH RRB,
Windover Oaks Project, Series A, 6.90%, 2/1/27 NR/AAA 1,000,000 1,082,480
------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU SFM RB, 6.70%, 9/1/27 Aaa/NR 830,000 861,332
------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.70%, 10/1/33 NR/NR/A 980,000 893,456
------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.75%, 4/1/38 NR/NR/A 975,000 880,035
------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Stirling Apts. Project, 5.75%, 4/1/38 NR/NR/A 855,000 771,723
------------------------------------------------------------------------------------------------
Clay Cnty., FL Housing FAU SFM RB, 6.55%, 3/1/28 Aaa/NR 800,000 828,856
------------------------------------------------------------------------------------------------
Collier Cnty., FL HFAU RRB,
The Moorings, Inc. Project, 7%, 12/1/19 NR/A-/A 1,000,000 1,035,710
------------------------------------------------------------------------------------------------
Dade Cnty., FL Aviation RB, Series B,
MBIA Insured, 6.60%, 10/1/22 Aaa/AAA/AA- 1,000,000 1,053,420
------------------------------------------------------------------------------------------------
Dade Cnty., FL IDAU RB, Miami Cerebral Palsy
Services Project, 8%, 6/1/22 NR/NR 2,035,000 2,130,767
------------------------------------------------------------------------------------------------
Dade Cnty., FL Professional Sports Franchise
Facilities Tax & CAP RB, MBIA Insured,
Zero Coupon, 5.85%, 10/1/261 Aaa/AAA 3,200,000 721,408
------------------------------------------------------------------------------------------------
Fishhawk, FL CDD SPAST RB, 7.625%, 5/1/18 NR/NR 1,000,000 1,043,710
------------------------------------------------------------------------------------------------
FL BOE Capital Outlay RRB, Public Education,
Series D, 5.75%, 6/1/22 Aa2/AA+/AA 3,295,000 3,354,541
------------------------------------------------------------------------------------------------
FL Heritage Harbor CDD SPAST RB,
Series B, 6%, 5/1/03 NR/NR 700,000 696,864
------------------------------------------------------------------------------------------------
FL HFA RB, Maitland Club Apts. Project, Series B-1,
AMBAC Insured, 6.75%, 8/1/14 Aaa/AAA/AAA 1,000,000 1,049,740
------------------------------------------------------------------------------------------------
FL HFA RB, Riverfront Apts., Series A,
AMBAC Insured, 6.25%, 4/1/37 Aaa/AAA/AAA 1,400,000 1,420,412
------------------------------------------------------------------------------------------------
FL Housing Finance Corp. RB, FSA Insured,
Zero Coupon, 5.55%, 7/1/301 Aaa/AAA/AAA 7,990,000 1,241,966
------------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST RB, Series A,
6.30%, 5/1/02 NR/NR 1,261,000 1,265,489
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Grand Haven, FL CDD SPAST RB, Series B,
6.90%, 5/1/19 NR/NR 735,000 734,508
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Heritage Springs, FL CDD Capital Improvement RB,
Series B, 6.25%, 5/1/05 NR/NR 1,445,000 1,436,937
------------------------------------------------------------------------------------------------
Lee Cnty., FL Housing FAU SFM RB,
Series A-2, 6.85%, 3/1/29 Aaa/NR 890,000 953,510
------------------------------------------------------------------------------------------------
Lee Cnty., FL IDAU HCF RRB, Shell Point
Village Project, Series A, 5.50%, 11/15/21 NR/BBB- 1,000,000 809,190
------------------------------------------------------------------------------------------------
Lee Cnty., FL IDAU HCF RRB, Shell Point
Village Project, Series A, 5.50%, 11/15/29 NR/BBB- 1,000,000 778,080
</TABLE>
12 OPPENHEIMER FLORIDA MUNICIPAL FUND
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Florida Continued
Martin Cnty., FL IDAU RRB, Indiantown
Cogeneration Project, Series A, 7.875%, 12/15/25 Baa3/BBB-/BBB $2,000,000 $2,016,180
------------------------------------------------------------------------------------------------
Miami Beach, FL HFAU Hospital RB, Mt. Sinai
Medical Center Project, 5.375%, 11/15/18 NR/BBB 1,500,000 1,228,500
------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB, City Center
Historic Convention, Series B, 6.25%, 12/1/16 Baa1/BBB 500,000 516,155
------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB, City Center
Historic Convention, Series B, 6.35%, 12/1/22 Baa1/BBB 500,000 519,425
------------------------------------------------------------------------------------------------
Miami, FL HFAU RRB, AMBAC Insured,
Inverse Floater, 5.92%, 8/15/152 Aaa/AAA/AAA 2,000,000 1,845,000
------------------------------------------------------------------------------------------------
Miami, FL Sanitation & Sewer Systems GOB,
FGIC Insured, 6.50%, 1/1/14 Aaa/AAA 1,750,000 1,831,620
------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien, Series B,
MBIA Insured, Zero Coupon, 5.50%, 10/1/281 Aaa/AAA/AAA 4,500,000 834,165
------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien, Series B,
MBIA Insured, Zero Coupon, 5.53%, 10/1/341 Aaa/AAA/AAA 3,170,000 406,457
------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RRB, Sub. Lien, Series A,
MBIA Insured, Zero Coupon, 5.52%, 10/1/171 Aaa/AAA/AAA 5,425,000 2,004,375
------------------------------------------------------------------------------------------------
Northern Palm Beach Cnty., FL Water Control &
Improvement District RB, Unit Development 9B,
5.90%, 8/1/19 NR/NR 1,085,000 1,030,978
------------------------------------------------------------------------------------------------
Northern Palm Beach Cnty., FL Water Control &
Improvement District RB, Unit Development 9B,
6%, 8/1/29 NR/NR 1,240,000 1,160,305
------------------------------------------------------------------------------------------------
Orlando, FL Utilities Commission Water & Electric RB,
Inverse Floater, 6.771%, 10/1/172 Aa2/AA- 1,000,000 1,011,250
------------------------------------------------------------------------------------------------
Palm Beach Cnty., FL Housing FAU MH RB,
Windsor Park Apts. Project, Series A, 5.90%, 6/1/38 NR/NR/A 500,000 460,515
------------------------------------------------------------------------------------------------
Stoneybrook, FL CDD Capital Improvement RB,
Series A, 6.10%, 5/1/19 NR/NR 830,000 764,314
------------------------------------------------------------------------------------------------
Stoneybrook, FL CDD Capital Improvement RB,
Series B, 5.70%, 5/1/08 NR/NR 2,315,000 2,221,705
------------------------------------------------------------------------------------------------
Tampa Palms, FL Open Space & Transportation
CDD SPAST RB, Capital Improvement-Area 7 Phase
Two Project, 7.50%, 5/1/18 NR/NR 1,140,000 1,179,034
----------
44,988,872
------------------------------------------------------------------------------------------------
U.S. Possessions--16.1%
PR CMWLTH Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 500,000 626,175
------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Inverse Floater, 5.26%, 7/1/282,3
NR/NR 2,500,000 2,118,400
------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series W, Inverse Floater,
5.994%, 7/1/102 Baa1/A 1,000,000 1,041,250
------------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU Special RRB,
Unrefunded Balance, Series A, 7.90%, 7/1/07 Baa1/BBB+ 130,000 132,665
</TABLE>
13 OPPENHEIMER FLORIDA MUNICIPAL FUND
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STATEMENT OF INVESTMENTS Continued
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Possessions Continued
PR Telephone Authority RB, Prerefunded, MBIA
Insured, Inverse Floater, 6.763%, 1/16/152 Aaa/AAA $ 1,000,000 $ 1,055,000
------------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Series A, 6.375%, 10/1/19 NR/BBB- 1,500,000 1,529,250
------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems RRB,
5.30%, 7/1/18 NR/NR/BBB 1,500,000 1,358,550
------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems RRB,
5.30%, 7/1/21 NR/NR/BBB 1,000,000 891,290
-----------
8,752,580
------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $55,814,211) 98.9% $53,741,452
------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.1 616,494
--------------------------
Net Assets 100.0% $54,357,946
==========================
</TABLE>
Footnotes to Statement of Investments
To simplify the listings of securities, abbreviations are used per the table
below:
BOE Board of Education IDAU Industrial Development Authority
CAP Capital Appreciation MH Multifamily Housing
CDD Community Development District PAU Power Authority
CMWLTH Commonwealth PFAU Public Finance 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 SPO Special Obligations
Authority
1. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
2. Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce less
current income. Their price may be more volatile than the price of a comparable
fixed-rate security. Inverse floaters amount to $7,070,900 or 13.01% of the
Fund's net assets as of July 31, 2000.
3. 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 $2,118,400 or 3.90% of the Fund's net
assets as of July 31, 2000.
14 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
Footnotes to Statement of Investments Continued
As of July 31, 2000, securities subject to the alternative minimum tax amount
to $11,010,734 or 20.26% 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 $13,290,831 24.6%
Multifamily Housing 5,508,621 10.2
Single Family Housing 4,935,405 9.2
Sales Tax 4,906,912 9.1
Hospital/Healthcare 3,988,260 7.4
Education 3,354,541 6.2
Electric Utilities 3,261,090 6.1
Highways 3,159,650 5.9
Adult Living Facilities 2,622,980 4.9
Not-for-profit Organization 2,130,767 4.0
Resource Recovery 2,016,180 3.8
General Obligation 1,831,620 3.4
Marine/Aviation Facilities 1,053,420 2.0
Telephone Utilities 1,055,000 2.0
Water Utilities 626,175 1.2
----------------------------
Total $53,741,452 100.0%
============================
See accompanying Notes to Financial Statements.
15 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES July 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=========================================================================================
Assets
<S> <C>
Investments, at value (cost $55,814,211)--see accompanying statement $ 53,741,452
-----------------------------------------------------------------------------------------
Cash 110,262
-----------------------------------------------------------------------------------------
Receivables and other assets:
Interest 763,320
Shares of beneficial interest sold 65,757
Other 716
----------
Total assets 54,681,507
=========================================================================================
Liabilities
Payables and other liabilities:
Dividends 152,742
Trustees' compensation 62,151
Shareholder reports 48,826
Shares of beneficial interest redeemed 17,932
Custodian fees 13,899
Transfer and shareholder servicing agent fees 7,130
Distribution and service plan fees 6,321
Other 14,560
------------
Total liabilities 323,561
==========================================================================================
Net Assets $54,357,946
============
==========================================================================================
Composition of Net Assets
Paid-in capital $57,456,731
------------------------------------------------------------------------------------------
Overdistributed net investment income (99,301)
------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (926,725)
------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (2,072,759)
------------
Net Assets $54,357,946
============
==========================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redempton price per share (based on net assets of
$34,050,263 and 3,165,038 shares of beneficial interest outstanding) $10.76
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $11.30
------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $17,865,695
and 1,658,006 shares of beneficial interest outstanding) $10.78
------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $2,441,988
and 227,213 shares of beneficial interest outstanding) $10.75
</TABLE>
See accompanying Notes to Financial Statements.
16 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended July 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==========================================================================================
<S> <C>
Investment Income
Interest $ 3,586,889
==========================================================================================
Expenses
Management fees 338,509
------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 83,434
Class B 192,858
Class C 27,962
------------------------------------------------------------------------------------------
Shareholder reports 55,915
------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 35,625
------------------------------------------------------------------------------------------
Custodian fees and expenses 32,750
------------------------------------------------------------------------------------------
Trustees' compensation 8,273
------------------------------------------------------------------------------------------
Other 26,466
---------
Total expenses 801,792
Less expenses paid indirectly (6,959)
Less waiver of expenses (87,446)
---------
Net expenses 707,387
==========================================================================================
Net Investment Income 2,879,502
==========================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:Investments (671,247)
Closing of futures contracts 198,002
-------------
Net realized loss (473,245)
------------------------------------------------------------------------------------------
Net change in unrealized depreciation on investments (2,099,062)
-------------
Net realized and unrealized loss (2,572,307)
==========================================================================================
Net Increase in Net Assets Resulting from Operations $ 307,195
=============
</TABLE>
See accompanying Notes to Financial Statements.
17 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended July 31, 2000 1999
==========================================================================================
<S> <C> <C>
Operations
Net investment income $ 2,879,502 $ 2,748,965
------------------------------------------------------------------------------------------
Net realized gain (loss) (473,245) 424,490
------------------------------------------------------------------------------------------
Net change in unrealized depreciation (2,099,062) (2,594,407)
--------------------------
Net increase in net assets resulting from operations 307,195 579,048
===========================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (1,826,749) (1,711,561)
Class B (875,118) (848,422)
Class C (127,124) (128,069)
-------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (112,148) --
Class B (64,515) --
Class C (9,867) --
===========================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A (297,142) 2,068,521
Class B (2,686,483) 2,942,094
Class C (902,642) 1,194,095
===========================================================================================
Net Assets
Total increase (decrease) (6,594,593) 4,095,706
-------------------------------------------------------------------------------------------
Beginning of period 60,952,539 56,856,833
---------------------------
End of period (including overdistributed net investment
income of $99,301 and $149,812, respectively) 54,357,946 60,952,539
===========================
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year
Ended Ended
July 31, Dec. 31,
Class A 2000 1999 1998 1997 19961 1995
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 11.24 $ 11.62 $ 11.47 $ 11.07 $ 11.40 $ 10.26
------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .58 .56 .54 .64 .36 .63
Net realized and unrealized gain (loss) (.45) (.39) .19 .37 (.34) 1.14
----------------------------------------------------------------------
Total income from investment operations .13 .17 .73 1.01 .02 1.77
------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.57) (.55) (.58) (.61) (.35) (.63)
Distributions from net realized gain (.04) -- -- -- -- --
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.61) (.55) (.58) (.61) (.35) (.63)
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.76 $11.24 $ 11.62 $ 11.47 $ 11.07 $ 11.40
======================================================================
========================================================================================================================
Total Return, at Net Asset Value2 1.28% 1.36% 6.52% 9.39% 0.25% 17.60%
========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $34,050 $35,924 $35,074 $27,446 $19,366 $19,377
------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $34,296 $36,532 $32,153 $24,333 $18,415 $14,508
------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:3
Net investment income 5.41% 4.78% 4.61% 5.70% 5.50% 5.71%
Expenses 1.13% 1.13% 1.15%4 1.02%4 1.23%4 1.36%4
Expenses, net of indirect expenses
and waiver of expenses 0.96% 0.95% 0.96% 0.87% 1.09% 0.53%
------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 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 has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year
Ended Ended
July 31, Dec. 31,
Class B 2000 1999 1998 1997 19961 1995
==============================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 11.26 $ 11.64 $ 11.49 $ 11.09 $ 11.42 $ 10.27
--------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .50 .47 .46 .55 .31 .55
Net realized and unrealized gain (loss) (.45) (.39) .18 .37 (.34) 1.15
----------------------------------------------------------------
Total income (loss) from investment
operations .05 .08 .64 .92 (.03) 1.70
--------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.49) (.46) (.49) (.52) (.30) (.55)
Distributions from net realized gain (.04) -- -- -- -- --
Total dividends and/or distributions ----------------------------------------------------------------
to shareholders (.53) (.46) (.49) (.52) (.30) (.55)
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.78 $ 11.26 $ 11.64 $ 11.49 $ 11.09 $ 11.42
================================================================
==============================================================================================================
Total Return, at Net Asset Value2 0.51% 0.60% 5.71% 8.56% (0.19)% 16.81%
==============================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $17,866 $21,524 $19,344 $15,348 $12,865 $12,658
--------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $19,249 $21,648 $17,024 $13,812 $12,843 $10,772
--------------------------------------------------------------------------------------------------------------
Ratios to average net assets:3
Net investment income 4.64% 4.02% 3.85% 4.93% 4.75% 4.92%
Expenses 1.89% 1.88% 1.91%4 1.79%4 1.97%4 2.11%4
Expenses, net of indirect expenses
and waiver of expenses 1.72% 1.70% 1.72% 1.64% 1.83% 1.29%
--------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 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 has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
20 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Year Year
Ended Ended
July 31, Dec. 31,
Class C 2000 1999 1998 1997 19961 19952
========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.23 $11.61 $11.46 $11.07 $11.40 $10.96
--------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .50 .47 .46 .53 .31 .20
Net realized and unrealized gain (loss) (.45) (.39) .18 .38 (.34) .44
------------------------------------------------------------
Total income (loss) from investment
operations .05 .08 .64 .91 (.03) .64
--------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.49) (.46) (.49) (.52) (.30) (.20)
Distributions from net realized gain (.04) -- -- -- -- --
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.53) (.46) (.49) (.52) (.30) (.20)
--------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.75 $11.23 $11.61 $11.46 $11.07 $11.40
==============================================================
========================================================================================================
Total Return, at Net Asset Value3 0.51% 0.60% 5.72% 8.41% (0.22)% 5.86%
========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $2,442 $3,504 $2,439 $ 956 $ 72 $ 39
--------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,790 $3,260 $1,638 $ 380 $ 78 $ 5
Ratios to average net assets:4
Net investment income 4.65% 4.02% 3.82% 4.87% 4.68% 4.68%
Expenses 1.89% 1.88% 1.91%5 1.75%5 1.99%5 1.92%5
Expenses, net of indirect expenses
and waiver of expenses 1.72% 1.70% 1.72% 1.60% 1.87% 1.43%
--------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 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. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
3. 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.
4. Annualized for periods of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
================================================================================
1.Significant Accounting Policies
Oppenheimer Florida Municipal Fund (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, an 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
at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but 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. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
Non-Diversification Risk. The Fund is "non-diversified" and can invest in the
securities of a single issuer without limit. To the extent the Fund invests a
relatively high percentage of its assets in the obligations of a single issuer
or a limited number of issuers, the Fund is subject to additional risk of loss
if those obligations lose market value or the borrower or issuer of those
obligations defaults.
--------------------------------------------------------------------------------
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.
22 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for the
Fund's independent Board of 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, 2000, a provision of 3,936 was made for the Fund's projected benefit
obligations and payments of $2,049 were made to retired trustees, resulting in
an accumulated liability of $62,151 as of July 31, 2000.
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 Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees 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 investment income per share.
--------------------------------------------------------------------------------
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 Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal 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 dividends and 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.
23 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
1.Significant Accounting Policies Continued
The Fund adjusts the classification of distributions to shareholders to reflect
the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, during the year ended
July 31, 2000, $2,366 distributed in connection with Fund share redemptions
increased paid-in capital and increased accumulated net realized loss. Net
assets of the Fund were unaffected by the reclassifications.
--------------------------------------------------------------------------------
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.
There are certain risks arising from geographic concentration in any state.
Certain revenue or tax related event in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
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.
24 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Year Ended July 31, 2000 Year Ended July 31, 1999
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Class A
Sold 1,434,597 $ 15,263,868 789,844 $ 9,221,652
Dividends and/or
distributions reinvested 92,603 989,694 71,294 829,646
Redeemed (1,557,637) (16,550,704) (684,647) (7,982,777)
----------------------------------------------------------
Net increase (decrease) (30,437) $ (297,142) 176,491 $ 2,068,521
==========================================================
------------------------------------------------------------------------------------------
Class B
Sold 489,200 $ 5,237,647 645,846 $ 7,556,033
Dividends and/or
distributions reinvested 36,703 393,459 29,901 348,434
Redeemed (779,600) (8,317,589) (426,626) (4,962,373)
----------------------------------------------------------
Net increase (decrease) (253,697) $ (2,686,483) 249,121 $ 2,942,094
==========================================================
------------------------------------------------------------------------------------------
Class C
Sold 72,798 $ 772,696 170,949 $ 1,991,849
Dividends and/or
distributions reinvested 7,931 84,945 8,248 95,915
Redeemed (165,489) (1,760,283) (77,350) (893,669)
----------------------------------------------------------
Net increase (decrease) (84,760) $ (902,642) 101,847 $ 1,194,095
==========================================================
</TABLE>
================================================================================
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended July 31, 2000, were $6,957,253
and $11,045,159, respectively.
As of July 31, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $55,814,211 was:
Gross unrealized appreciation $ 860,261
Gross unrealized depreciation (2,933,020)
-----------
Net unrealized depreciation $(2,072,759)
===========
25 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
4. 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 Manager can withdraw the voluntary
waiver at any time. The Fund's management fee for the year ended July 31, 2000,
was an annualized rate of 0.60%, before any waiver by the Manager if applicable.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer 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>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor1 Distributor1 Distributor1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
July 31, 2000 $61,567 $12,979 $1,377 $115,116 $3,640
</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 Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
July 31, 2000 $-- $66,402 $--
</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.
26 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
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 purchased. 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 year ended July 31, 2000, payments under
the Class A plan totaled $83,434, prior to Manager waivers if applicable, all of
which were paid by the Distributor to recipients. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares in any fiscal year cannot be
recovered in subsequent years.
--------------------------------------------------------------------------------
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 asset-based sales charges from the Fund under
the plans. If any 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 carryforward 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, 2000, were
as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $192,858 $154,110 $563,708 3.16%
Class C Plan 27,962 7,304 30,968 1.27
</TABLE>
27 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
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NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
5. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to broadly
based securities indices (Financial futures) or debt securities (interest rate
futures) in order to gain exposure to or to seek to protect against changes in
market value of stock and bonds or 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 decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective than actually buying fixed
income securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities (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.
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.
================================================================================
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 0.45%. 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 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended July 31, 2000.
28 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' 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, 2000, 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 four-year
period then ended, the seven-month period ended July 31, 1996, and the year
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 auditing standards generally
accepted in the United States of America. 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, 2000, 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, 2000, 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 four-year period then ended, the seven-month period
ended July 31, 1996, and the year ended December 31, 1995, in conformity with
accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
August 21, 2000
29 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.0831, $0.0760 and$0.0759 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 10, 1999, of
which $0.0358 was designated as a "capital gain distribution" for federal income
tax purposes. Whether received in stock or in cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
None of the dividends paid by the Fund during the year ended July 31,
2000, are eligible for the corporate dividend-received deduction. The dividends
were derived from interest on municipal bonds and are not subject to federal
income taxes. 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.
30 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER FLORIDA MUNICIPAL FUND
--------------------------------------------------------------------------------
<TABLE>
A Series of Oppenheimer Multi-State Municipal Trust
================================================================================
<S> <C>
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
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
================================================================================
Independent Auditors KPMG LLP
================================================================================
Legal Counsel Mayer, Brown & Platt
This is a copy of a report to shareholders of Oppenheimer
Florida Municipal Fund. For other 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.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
</TABLE>
(c)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
31 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER FUNDS FAMILY
--------------------------------------------------------------------------------
<TABLE>
=================================================================================================
<S> <C> <C>
Global Equity
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
=================================================================================================
Equity
Stock Stock & Bond
Enterprise Fund Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
=================================================================================================
Fixed Income
Taxable Municipal
International Bond Fund California Municipal Fund1
World Bond Fund Main Street(R)California Municipal Fund1
High Yield Fund Florida Municipal Fund1
Champion Income Fund New Jersey Municipal Fund1
Strategic Income Fund New York Municipal Fund1
Bond Fund Pennsylvania Municipal Fund1
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
=================================================================================================
Money Market2
Money Market Fund Cash Reserves
</TABLE>
1. Available to investors only in certain states.
2. 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.
32 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
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 transactions1
www.oppenheimerfunds.com
--------------------------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-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 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OppenheimerFunds Market 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
--------------------------------------------------------------------------------
Ticker Symbols Class A: OFLAX Class B: OFLBX Class C: OFLCX
--------------------------------------------------------------------------------
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
[LOGO OF OPPENHEIMER]
RA0795.001.0700 September 29, 2000
