<PAGE>
[GRAPHIC]
Annual Report July 31, 2000
Oppenheimer
New Jersey Municipal Fund
[LOGO OF OPPENHEIMER FUNDS(R)]
<PAGE>
--------------------------------------------------------------------------------
REPORT HIGHLIGHTS
--------------------------------------------------------------------------------
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, New Jersey'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.
--------------------------
-2.47% -7.11%
Class B
Without With
Sales Chg. Sales Chg.
--------------------------
-3.11% -7.74%
Class C
Without With
Sales Chg. Sales Chg.
--------------------------
-3.20% -4.13%
*See Notes on page 10 for further details.
<PAGE>
--------------------------------------------------------------------------------
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
Dear Shareholder,
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
New Jersey
Municipal Fund
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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
--------------------------------------------------------------------------------
How did Oppenheimer New Jersey Municipal Bond Fund perform during the
one-year period that ended July 31, 2000?
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. The
Fund's slightly aggressive positioning during this time--including a
relatively long average portfolio duration and an emphasis on higher
yielding securities--constrained performance.
In the first quarter of 2000, and again in June and July, however,
we began to see signs of a potential market recovery. Most significant was
a surge in individual investors' demand for New Jersey municipal bonds. 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. At the same time, 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 grow-
3 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
--------------------------------------------------------------------------------
Average Annual
Total Returns
For the Periods Ended 6/30/00
Class A Since
1-Year 5-Year Inception
-8.41% 2.96% 2.96%
------------------------------
Class B Since
1-Year 5-Year Inception
-9.13% 2.85% 3.02%
------------------------------
Class C Since
1-Year 5-Year Inception
-5.48% N/A 3.18%
------------------------------
ing so strongly that it may threaten to reignite forces potentially leading to
higher prices and wages. Most of us have 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.
1. See page 10 for further details.
4 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
Standardized Yields2
For the 30 Days Ended 7/31/00
-----------------------------
Class A 4.94%
-----------------------------
Class B 4.44
-----------------------------
Class C 4.44
-----------------------------
In addition, the supply of new municipal bonds in New Jersey is down
sharply from levels of a year ago. This is primarily the result of the strong
U.S. and local economies, which have helped create unexpectedly large tax
revenues for many state and local governments. With these larger than expected
revenues, New Jersey municipalities have had less need to borrow money.
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 more defensively by
reducing our holdings of poorly performing bonds, such as those financing the
healthcare sector, and improving the overall credit quality of the portfolio.
However, our ability to accomplish this has been limited by market conditions.
Because demand for New Jersey 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 general obligation
bonds, issued by New Jersey school districts that are either insured or rated
triple A. 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 New Jersey 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 exempt from federal and state income taxes
for New Jersey residents. Keep in mind that, while individual Fund 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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
--------------------------------------------------------------------------------
Credit Allocation3
[GRAPH]
. AAA 59.0%
. AA 0.3
. A 5.0
. BBB 14.9
. BB 18.5
. B 2.3
What is your outlook for the foreseeable 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
-------------------------------------------------------------------------
Municipal Leases 14.3%
-------------------------------------------------------------------------
Adult Living Facilities 13.3
-------------------------------------------------------------------------
General Obligation 11.9
-------------------------------------------------------------------------
Marine/Aviation Facilities 9.5
-------------------------------------------------------------------------
Highways 9.1
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 15.6% 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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FUND PERFORMANCE
--------------------------------------------------------------------------------
How Has the Fund Performed? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended July 31, 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 New Jersey Municipal Bond Fund's performance was
limited by adverse economic and fixed income market conditions, including
inflation fears and rising interest rates. The Fund's slightly aggressive
positioning, including a longer than average portfolio duration and an emphasis
on higher yielding securities, also constrained performance during the period.
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 poorly performing 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 March 1, 1994. 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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FUND PERFORMANCE
--------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class A)
Lehman Brothers Municipal Bond Index
Oppenheimer Lehman Brothers
New Jersey Municipal Bond
Municipal Fund Index
3/1/94 9,525 10,000
12/31/94 9,082 9,625
12/31/95 10,388 11,305
7/31/96 10,574 11,357
7/31/97 11,628 12,521
7/31/98 12,318 13,271
7/31/99 12,510 13,653
7/31/2000 12,198 14,242
Average Annual Total Return of Class A Shares of the Fund at 7/31/002
1-Year- 7.11% 5-Year 3.19% Life 3.17%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class B)
Lehman Brothers Municipal Bond Index
Oppenheimer Lehman Brothers
New Jersey Municipal Bond
Municipal Fund Index
3/1/94 10,000 10,000
12/31/94 9,459 9,625
12/31/95 10,742 11,305
7/31/96 10,885 11,357
7/31/97 11,881 12,521
7/31/98 12,503 13,271
7/31/99 12,603 13,653
7/31/2000 12,248 14,242
Average Annual Total Return of Class B Shares of the Fund at 7/31/002
1-Year- 7.74% 5-Year 3.13% Life 3.23%
1. The Fund changed its fiscal year end from December 31 to July 31.
2. See page 10 for further details.
8 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
Class C Shares
Comparison of Change in Value of$10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class C)
Lehman Brothers Municipal Bond Index
Oppenheimer New Jersey Lehman Brothers
Municipal Fund (Class C) Municipal Bond Index
8/29/95 10,000 10,000
12/31/95 10,406 10,479
7/31/96 10,540 10,526
7/31/97 11,496 11,605
7/31/98 12,098 12,301
7/31/99 12,194 12,655
7/31/2000 11,802 13,201
Average Annual Total Return of Class C Shares of the Fund at 7/31/002
1-Year-4.13% Life3.44%
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 2/28/94 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 the same scale.
9 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES
--------------------------------------------------------------------------------
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 on 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 3/1/94.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 3/1/94. 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 NEW JERSEY MUNICIPAL FUND
<PAGE>
Financials
11 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS July 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
=========================================================================================
<S> <C> <C> <C>
Municipal Bonds and Notes--99.5%
-----------------------------------------------------------------------------------------
New Jersey--83.2%
Atlantic City, NJ Refunding COP, Public
Facilities Lease Agreement, FGIC Insured,
6%, 3/1/13 Aaa/AAA/AAA $2,900,000 $3,130,260
-----------------------------------------------------------------------------------------
Delaware River, NJ & PA POAU RB, FSA
Insured, 6%, 1/1/18 Aaa/AAA 3,500,000 3,678,290
-----------------------------------------------------------------------------------------
Hudson Cnty., NJ MUAU System RB,
Prerefunded, 11.875%, 7/1/06 Aaa/AAA 515,000 576,146
-----------------------------------------------------------------------------------------
Hudson Cnty., NJ Solid Waste System
Improvement Authority RRB, Series 1,
6%, 1/1/29 NR/BBB- 1,000,000 920,990
-----------------------------------------------------------------------------------------
Lopatcong Township, NJ BOE GOUN, FSA
Insured, 5.70%, 7/15/19 NR/AAA 635,000 648,081
-----------------------------------------------------------------------------------------
Middlesex, NJ Improvement Authority
Utilities Systems CAP RB, Series B,
Zero Coupon, 5.63%, 9/1/211 Aaa/AAA/AAA 6,000,000 1,814,040
-----------------------------------------------------------------------------------------
Newark, NJ GOB, School Qualified Bond
Act, MBIA Insured, 5.30%, 9/1/08 Aaa/AAA 1,000,000 1,032,410
-----------------------------------------------------------------------------------------
NJ EDAU ED RB, United Methodist Homes,
5.75%, 7/1/29 NR/BBB- 2,000,000 1,582,840
-----------------------------------------------------------------------------------------
NJ EDAU PC RB, Public Service Electric &
Gas Co. Project, Series A, MBIA Insured,
6.40%, 5/1/32 Aaa/AAA 500,000 522,325
-----------------------------------------------------------------------------------------
NJ EDAU RRB, First Mtg. Franciscan Oaks
Project, 5.70%, 10/1/17 NR/NR 2,235,000 1,894,721
-----------------------------------------------------------------------------------------
NJ EDAU RRB, First Mtg. Keswick Pines,
5.60%, 1/1/12 NR/NR 600,000 522,702
-----------------------------------------------------------------------------------------
NJ EDAU RRB, First Mtg. Keswick Pines,
5.70%, 1/1/18 NR/NR 2,350,000 1,932,382
-----------------------------------------------------------------------------------------
NJ EDAU RRB, Sr. Mtg., Arbor Glen, Series A,
5.875%, 5/15/16 NR/NR 3,000,000 2,550,390
-----------------------------------------------------------------------------------------
NJ EDAU RRB, United Methodist Homes,
5.125%, 7/1/25 NR/BBB- 1,900,000 1,394,277
-----------------------------------------------------------------------------------------
NJ EDAU SPF RB, Continental Airlines, Inc.
Project, 6.25%, 9/15/29 Ba2/BB 4,935,000 4,511,133
-----------------------------------------------------------------------------------------
NJ EDAU Water Facilities RB, American Water
Co., Inc. Project, Series A, FGIC Insured,
6.875%, 11/1/34 Aaa/AAA/AAA 500,000 542,450
-----------------------------------------------------------------------------------------
NJ Education FA RB, Princeton University,
Series E, 5%, 7/1/18 Aaa/AAA 3,460,000 3,319,455
-----------------------------------------------------------------------------------------
NJ Educational FA RRB, Monmouth University,
Series C, 5.80%, 7/1/22 Baa2/BBB 1,000,000 976,090
-----------------------------------------------------------------------------------------
NJ HCF FAU RB, Centrastate Medical Center,
Series A, AMBAC Insured, 6%, 7/1/212 Aaa/AAA/AAA 100,000 101,467
-----------------------------------------------------------------------------------------
NJ HCF FAU RB, Columbus Hospital, Series A,
7.50%, 7/1/212 B2/B 2,000,000 1,730,180
-----------------------------------------------------------------------------------------
NJ HCF FAU RB, Southern Ocean Cnty.
Hospital, Series A, 6.25%, 7/1/23 Baa1/NR 1,000,000 889,470
-----------------------------------------------------------------------------------------
NJ HCF FAU RB, St. Elizabeth Hospital
Obligation Group, 6%, 7/1/20 Baa3/BBB- 1,000,000 869,730
-----------------------------------------------------------------------------------------
NJ HCF FAU RB, St. Joseph's Hospital &
Medical Center, Series A, 6%, 7/1/26 NR/AAA 750,000 770,138
</TABLE>
12 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New Jersey Continued
NJ HCF FAU RRB, Dover General Hospital &
Medical Center, MBIA Insured, 7%, 7/1/03 Aaa/AAA $1,000,000 $1,063,780
-------------------------------------------------------------------------------------------
NJ HEAA Student Loan RB, Series A, MBIA Insured,
6%, 6/1/15 NR/AAA 1,000,000 1,030,020
-------------------------------------------------------------------------------------------
NJ Mtg. & HFA MH RB, Series A, AMBAC Insured,
6.25%, 5/1/28 Aaa/AAA 1,000,000 1,020,160
-------------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series J,
MBIA Insured, 6.20%, 10/1/25 Aaa/AAA 200,000 202,452
-------------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series X,
MBIA Insured, 5.70%, 5/1/203 Aaa/AAA 500,000 500,980
-------------------------------------------------------------------------------------------
NJ Mtg. & HFA RRB, Series 1, 6.70%, 11/1/28 NR/A+ 85,000 88,553
-------------------------------------------------------------------------------------------
NJ Mtg. HAU RB, Series U, 5.75%, 4/1/18 Aaa/AAA 1,000,000 1,009,130
-------------------------------------------------------------------------------------------
NJ Sports & Exposition Authority Convention
Center Luxury Tax RB, Series A, MBIA Insured,
6.25%, 7/1/20 Aaa/AAA 80,000 84,153
-------------------------------------------------------------------------------------------
NJ Transportation COP, Series 15, AMBAC
Insured, 6.19%, 9/15/144 NR/AAA 2,500,000 2,858,575
-------------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, 6.50%, 1/1/16 A3/A-/A- 950,000 1,054,548
-------------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, MBIA Insured, 6.50%,
1/1/09 Aaa/AAA/AAA 1,000,000 1,113,960
-------------------------------------------------------------------------------------------
Passaic Valley, NJ Sewer System Commissioners
GOUN, Series E, AMBAC Insured, 5.625%,
12/1/17 Aaa/NR 3,095,000 3,153,031
-------------------------------------------------------------------------------------------
Paterson, NJ Public SDI COP, 5.75%, 11/1/19 Aaa/NR 2,000,000 2,057,400
-------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB, 94th Series, 6%,
12/1/14 A1/AA-/AA- 200,000 207,760
-------------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air Terminal
Project, Series 6, MBIA Insured, 7%, 12/1/12 Aaa/AAA/AAA 2,000,000 2,339,520
-------------------------------------------------------------------------------------------
PAUNYNJ SPO RRB, KIAC-4 Project, Fifth
Installment, 6.75%, 10/1/19 NR/NR 900,000 907,353
-------------------------------------------------------------------------------------------
South Brunswick, NJ GOB, FGIC Insured,
5.625%, 12/1/19 Aaa/AAA 2,330,000 2,356,772
-------------------------------------------------------------------------------------------
South Brunswick, NJ GOB, FGIC Insured,
5.625%, 12/1/20 Aaa/AAA 2,385,000 2,407,204
-------------------------------------------------------------------------------------------
West Orange, NJ BOE COP, MBIA Insured,
5.625%, 10/1/19 Aaa/NR 2,500,000 2,532,900
-------------
61,898,218
-------------------------------------------------------------------------------------------
U.S. Possessions--16.3%
Guam PAU RB, Prerefunded, Series A, 6.30%,
10/1/22 NR/AAA 185,000 196,553
-------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series Y, 5%, 7/1/36 Baa1/A 1,000,000 897,230
-------------------------------------------------------------------------------------------
PR EPAU RRB, Series Z, FSA Insured, 5.50%,
7/1/16 Aaa/AAA/AAA 1,105,000 1,119,199
-------------------------------------------------------------------------------------------
PR Industrial Tourist Educational Medical &
Environmental Control Facilities RB,
Polytechnic University Project, Series A,
6.50%, 8/1/24 NR/BBB- 400,000 406,836
-------------------------------------------------------------------------------------------
PR Industrial, Tourist, Educational,
Medical & Environmental Control Facilities
RB, AES Puerto Rico Project, 6.625%, 6/1/26 Baa2/NR/BBB 965,000 998,437
</TABLE>
13 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<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 Municipal FAU GOB, Series PA-638A,
6.784%, 8/1/134,5 NR/NR $1,075,000 $ 1,206,139
-------------------------------------------------------------------------------------------
PR Municipal FAU GOB, Series PA-638B,
6.784%, 8/1/154,5 NR/NR 1,000,000 1,138,370
-------------------------------------------------------------------------------------------
University of Virgin Islands RB, Series A,
5.75%, 12/1/13 NR/A 1,000,000 1,006,850
-------------------------------------------------------------------------------------------
Virgin Islands Housing FAU SFM RRB, Series A,
6.50%, 3/1/25 NR/AAA 135,000 137,153
-------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Series A, 6.375%,
10/1/19 NR/BBB- 1,515,000 1,544,543
-------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Sub. Lien, Series E,
6%, 10/1/22 NR/NR 1,500,000 1,414,920
-------------------------------------------------------------------------------------------
Virgin Islands University BOE RB, Series A,
5.75%, 12/1/13 NR/A 620,000 635,258
-------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems
RRB, 5.375%, 7/1/10 NR/NR/BBB 1,470,000 1,455,476
-------------
12,156,964
-------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $75,123,369) 99.5% 74,055,182
-------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.5 361,388
-----------------------------
Net Assets 100.0% $74,416,570
=============================
</TABLE>
Footnotes to Statement of Investments
To simplify the listings of securities, abbreviations are used per the table
below:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
BOE Board of Education HTAU Highway & Transportation Authority
CAP Capital Appreciation MH Multifamily Housing
CMWLTH Commonwealth MUAU Municipal Utilities Authority
COP Certificates of Participation PAUNYNJ Port Authority of New York & New Jersey
ED Economic Development PAU Power Authority
EDAU Economic Development Authority PC Pollution Control
EPAU Electric Power Authority PFAU Public Finance Authority
FA Facilities Authority POAU Port Authority
FAU Finance Authority RB Revenue Bonds
GOB General Obligation Bonds RRB Revenue Refunding Bonds
GOUN General Obligation Unlimited Nts. SDI School District
HAU Housing Authority SFM Single Family Mtg.
HCF Health Care Facilities SPF Special Facilities
HEAA Higher Education Assistance Agency SPO Special Obligations
HFA Housing Finance Agency TUAU Turnpike Authority
</TABLE>
1. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
2. Securities with an aggregate market value of $965,736 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
3. When-issued security to be delivered and settled after July 31, 2000.
4. Represents the current interest rate for a variable or increasing rate
security.
5. 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 $2,344,509 or 3.15% of the Fund's net
assets as of July 31, 2000.
14 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
Footnotes to Statement of Investments Continued
As of July 31, 2000, securities subject to the alternative minimum tax amount
to $13,220,133 or 17.77% 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
--------------------------------------------------------------------------------
Municipal Leases $10,579,135 14.3%
Adult Living Facilities 9,877,312 13.3
General Obligation 8,788,976 11.9
Marine/Aviation Facilities 7,058,413 9.5
Highways 6,744,028 9.1
Higher Education 6,344,489 8.6
Hospital/Healthcare 5,424,765 7.3
Electric Utilities 4,677,019 6.3
Sewer Utilities 3,153,031 4.3
Sales Tax 3,043,615 4.1
Water Utilities 2,932,636 4.0
Multifamily Housing 1,609,693 2.2
Single Family Housing 1,348,735 1.8
Student Loans 1,030,020 1.4
Resource Recovery 920,990 1.2
Pollution Control 522,325 0.7
--------------------------
Total $74,055,182 100.0%
==========================
See accompanying Notes to Financial Statements.
15 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES July 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==========================================================================================
Assets
<S> <C>
Investments, at value (cost $75,123,369)--see accompanying statement $74,055,182
------------------------------------------------------------------------------------------
Cash 265,389
------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 1,007,363
Shares of beneficial interest sold 25,485
Other 600
------------
Total assets 75,354,019
==========================================================================================
Liabilities
Payables and other liabilities:
Investments purchased on a when-issued basis 499,950
Dividends 204,514
Trustees' compensation 69,261
Shares of beneficial interest redeemed 64,183
Shareholders reports 60,893
Transfer and shareholder servicing agent fees 11,742
Distribution and service plan fees 8,831
Daily variation on futures contracts 1,094
Other 16,981
------------
Total liabilities 937,449
==========================================================================================
Net Assets $74,416,570
============
==========================================================================================
Composition of Net Assets
Paid-in capital $83,139,270
------------------------------------------------------------------------------------------
Overdistributed net investment income (185,055)
------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (7,463,989)
------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (1,073,656)
------------
Net Assets $74,416,570
============
==========================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $31,937,157 and 3,083,805 shares of beneficial interest outstanding) $10.36
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $10.88
------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$35,337,563 and 3,409,061 shares of beneficial interest outstanding) $10.37
------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based
on net assets of $7,141,850 and 689,282 shares of beneficial interest
outstanding) $10.36
</TABLE>
See accompanying Notes to Financial Statements.
16 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended July 31, 2000
--------------------------------------------------------------------------------
================================================================================
Investment Income
Interest $4,936,532
================================================================================
Expenses
Management fees 490,267
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 86,159
Class B 381,089
Class C 82,156
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 57,197
--------------------------------------------------------------------------------
Shareholder reports 77,971
--------------------------------------------------------------------------------
Custodian fees and expenses 19,909
--------------------------------------------------------------------------------
Trustees' compensation 15,743
--------------------------------------------------------------------------------
Other 28,939
-------------
Total expenses 1,239,430
Less expenses paid indirectly (15,594)
Less waiver of expenses (226,715)
-------------
Net expenses 997,121
================================================================================
Net Investment Income 3,939,411
================================================================================
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (7,036,425)
Closing of futures contracts (420,474)
Closing and expiration of option contracts written (60)
-------------
Net realized loss (7,456,959)
--------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 188,013
-------------
Net realized and unrealized loss (7,268,946)
================================================================================
Net Decrease in Net Assets Resulting from Operations $ (3,329,535)
=============
See accompanying Notes to Financial Statements.
17 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended July 31, 2000 1999
==========================================================================================
Operations
<S> <C> <C>
Net investment income $ 3,939,411 $ 3,749,997
------------------------------------------------------------------------------------------
Net realized gain (loss) (7,456,959) 138,741
------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 188,013 (3,509,408)
----------------------------
Net increase (decrease) in net assets resulting from (3,329,535) 379,330
operations
==========================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (1,895,546) (1,835,806)
Class B (1,697,365) (1,578,140)
Class C (371,483) (336,025)
------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (38,325) (32,211)
Class B (38,868) (34,382)
Class C (9,332) (7,281)
==========================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A (7,088,220) 10,755,309
Class B (5,635,459) 12,814,190
Class C (1,821,590) 3,631,472
==========================================================================================
Net Assets
Total increase (decrease) (21,925,723) 23,756,456
------------------------------------------------------------------------------------------
Beginning of period 96,342,293 72,585,837
----------------------------
End of period (including overdistributed net investment
income of185,055 and 160,072, respectively) $74,416,570 $96,342,293
============================
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------
Year Year
Ended Ended
July 31, Dec. 31,
Class A 2000 1999 1998 1997 19961 1995
Net asset value, beginning of period $11.21 $11.58 $11.54 $11.10 $11.26 $10.41
==========================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.21 $11.58 $11.54 $11.10 $11.26 $10.41
------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .53 .55 .58 .62 .36 .61
Net realized and unrealized gain (loss) (.82) (.36) .09 .45 (.16) .86
--------------------------------------------------
Total income (loss) from
investment operations (.29) .19 .67 1.07 .20 1.47
------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.55) (.55) (.59) (.61) (.36) (.61)
Distributions from net realized gain (.01) (.01) (.04) (.02) -- (.01)
--------------------------------------------------
Total dividends and/or distributions
to shareholders (.56) (.56) (.63) (.63) (.36) (.62)
------------------------------------------------------------------------------------------
Net asset value, end of period $10.36 $11.21 $11.58 $11.54 $11.10 $11.26
===================================================
==========================================================================================
Total Return, at Net Asset Value2 (2.47)% 1.57% 5.96% 9.99% 1.80% 14.42%
==========================================================================================
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $31,937 $42,289 $33,060 $19,109 $11,354 $8,806
------------------------------------------------------------------------------------------
Average net assets (in thousands) $35,286 $38,999 $24,909 $14,072 $10,036 $6,504
------------------------------------------------------------------------------------------
Ratios to average net assets:3
Net investment income 5.26% 4.71% 4.94% 5.45% 5.49% 5.51%
Expenses 1.09% 1.10% 1.14%4 1.08%4 1.64%4 1.75%4
Expenses, net of indirect expenses
and waiver of expenses 0.79% 0.63% 0.38% 0.88% 0.97% 0.80%
------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 70% 46% 12% 33% 7%
</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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year
Ended Ended
July 31, Dec. 31,
Class B 2000 1999 1998 1997 1996 1 1995
<S> <C> <C> <C> <C> <C> <C>
============================================================================================
Per Share Operating Data
Net asset value, beginning of period $11.21 $11.58 $11.53 $11.09 $11.25 $10.40
--------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .47 .47 .50 .53 .31 .53
Net realized and unrealized gain
(loss) (.83) (.37) .09 .46 (.16) .86
-----------------------------------------------------
Total income (loss) from
investment operations (.36) .10 .59 .99 .15 1.39
--------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.47) (.46) (.50) (.53) (.31) (.53)
Distributions from net realized gain (.01) (.01) (.04) (.02) -- (.01)
-----------------------------------------------------
Total dividends and/or distributions
to shareholders (.48) (.47) (.54) (.55) (.31) (.54)
--------------------------------------------------------------------------------------------
Net asset value, end of period $10.37 $11.21 $11.58 $11.53 $11.09 $11.25
=====================================================
============================================================================================
Total Return, at Net Asset Value2 (3.11)% 0.81% 5.25% 9.18% 1.34% 13.59%
============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $35,338 $44,322 $33,062 $18,647 $9,740 $5,222
--------------------------------------------------------------------------------------------
Average net assets (in thousands) $38,064 $39,842 $25,556 $13,278 $7,774 $4,080
--------------------------------------------------------------------------------------------
Ratios to average net assets:3
Net investment income 4.50% 3.96% 4.17% 4.70% 4.70% 4.79%
Expenses 1.85% 1.85% 1.89%4 1.83%4 2.40%4 2.49%4
Expenses, net of indirect expenses
and waiver of expenses 1.55% 1.38% 1.14% 1.62% 1.74% 1.53%
--------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 70% 46% 12% 33% 7%
</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 NEW JERSEY MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Year Period
Ended Ended
July 31, Dec. 31,
Class C 2000 1999 1998 1997 1996 1 1995 2
<S> <C> <C> <C> <C> <C> <C>
============================================================================================
Per Share Operating Data
Net asset value, beginning of period $ 11.21 $11.58 $11.53 $11.09 $11.25 $11.01
--------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .46 .46 .50 .53 .30 .19
Net realized and unrealized gain
(loss) (.83) (.36) .09 .45 (.16) .25
-----------------------------------------------------
Total income (loss) from
investment operations (.37) .10 .59 .98 .14 .44
--------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.47) (.46) (.50) (.52) (.30) (.19)
Distributions from net realized gain (.01) (.01) (.04) (.02) -- (.01)
-----------------------------------------------------
Total dividends and/or distributions
to shareholders (.48) (.47) (.54) (.54) (.30) (.20)
--------------------------------------------------------------------------------------------
Net asset value, end of period $10.36 $11.21 $11.58 $11.53 $11.09 $11.25
======================================================
============================================================================================
Total Return, at Net Asset Value 3 (3.20)% 0.81% 5.24% 9.11% 1.29% 4.07%
============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $7,142 $9,732 $6,463 $2,080 $ 132 $ 50
--------------------------------------------------------------------------------------------
Average net assets (in thousands) $8,198 $8,483 $3,631 $ 747 $ 74 $ 3
--------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 4.51% 3.96% 4.20% 4.56% 4.66% -- 6
Expenses 1.85% 1.85% 1.92% 5 1.79%5 2.48%5 -- 6
Expenses, net of indirect expenses
and waiver of expenses 1.55% 1.38% 1.12% 1.60% 1.81% -- 6
--------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 70% 46% 12% 33% 7%
</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.
6. Ratios during this period would not be indicative of future results.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer New Jersey 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 and New Jersey income taxes for individual investors
as is consistent with preservation of capital. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold 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).
--------------------------------------------------------------------------------
Securities Purchased on a When-Issued Basis. Delivery and payment for securities
that have been purchased by the Fund on a when-issued basis can take place a
month or more after the trade date. Normally the settlement date occurs within
six months after the trade date; however, the Fund may, from time to time,
purchase securities whose settlement date extends beyond six months and possibly
as long as two years or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
segregated assets with a market value equal to or greater than the amount of its
purchase commitments. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of the Fund's net asset value to
the extent the Fund makes such purchases while remaining substantially fully
invested. As of July 31, 2000, the Fund had entered into outstanding net when-
issued or forward commitments of $499,950.
22 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
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, 2000, the
Fund had available for federal income tax purposes an unused capital loss
carryover as follows:
Expiring
------------------
2008 $1,327,407
--------------------------------------------------------------------------------
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 $6,210 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 $64,414 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.
23 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
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.
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, amounts have been reclassified to reflect a decrease
in paid-in capital of $484. Accumulated net realized loss on investments was
decreased by the same amount. 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 NEW JERSEY 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
---------------------------------------------------------------------------------------------------
Class A
<S> <C> <C> <C> <C>
Sold 920,509 $ 9,619,436 1,892,611 $ 22,117,140
Dividends and/or
distributions reinvested 104,515 1,090,118 101,593 1,183,876
Redeemed (1,712,137) (17,797,774) (1,077,934) (12,545,707)
-------------------------------------------------------------
Net increase (decrease) (687,113) $ (7,088,220) 916,270 $ 10,755,309
=============================================================
---------------------------------------------------------------------------------------------------
Class B
Sold 560,903 $ 5,829,198 1,587,888 $ 18,490,151
Dividends and/or
distributions reinvested 93,374 971,360 84,751 986,603
Redeemed (1,199,632) (12,436,017) (574,554) (6,662,564)
-------------------------------------------------------------
Net increase (decrease) (545,355) $ (5,635,459) 1,098,085 $ 12,814,190
=============================================================
---------------------------------------------------------------------------------------------------
Class C
Sold 252,337 $ 2,644,095 461,996 $ 5,398,001
Dividends and/or
distributions reinvested 24,849 259,049 23,858 277,644
Redeemed (455,982) (4,724,734) (176,024) (2,044,173)
-------------------------------------------------------------
Net increase (decrease) (178,796) $ (1,821,590) 309,830 $ 3,631,472
=============================================================
===================================================================================================
</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 $81,807,639
and $99,493,204, respectively.
As of July 31, 2000,unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $75,117,901 was:
Gross unrealized appreciation $ 1,602,251
Gross unrealized depreciation (2,670,438)
-----------
Net unrealized depreciation (1,068,187)
===========
25 OPPENHEIMER NEW JERSEY 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 an annual 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. The Manager has voluntarily undertaken to assume Fund expenses to
the level needed to maintain a stable dividend. 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 $ 89,670 $ 11,968 $ 4,034 $ 193,383 $ 20,626
</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 $-- $216,313 $17,427
</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 NEW JERSEY 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 $86,159 prior to Manager waivers if applicable, all of
which were paid by the Distributor to recipients, and included $1,655 paid to an
affiliate of the Manager. 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 carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended July 31, 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 $381,089 $305,129 $1,441,288 4.08%
Class C Plan 82,156 27,321 98,620 1.38
</TABLE>
27 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
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.
As of July 31, 2000, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Expiration Number Valuation as of Unrealized
Contract Description Date of Contracts July 31, 2000 Depreciation
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Sell
U.S. Treasury Nts., 10 yr. 9/20/00 35 $3,461,172 $5,469
===================================================================================================
</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 0.45%. 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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer New Jersey Municipal Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer New Jersey 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 and brokers; and where confirmations were not
received from brokers, we performed other auditing procedures. 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 New Jersey 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 NEW JERSEY 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 $0.0563, $0.0493 and $0.0493 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 10, 1999, of
which $0.0105 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 NEW JERSEY MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER NEW JERSEY MUNICIPAL FUND
--------------------------------------------------------------------------------
A Series of Oppenheimer Multi-State Municipal Trust
================================================================================
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Phillip A. Griffiths, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Clayton K. Yeutter, Trustee
Jerry Webman, Vice President
Merrell Hora, 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 KPMGLLP
================================================================================
Legal Counsel Mayer, Brown & Platt
This is a copy of a report to shareholders of
Oppenheimer New Jersey 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, 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.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
31 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
--------------------------------------------------------------------------------
======================================================================================================
<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
======================================================================================================
</TABLE>
Money Market2
Money Market Fund Cash Reserves
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 NEW JERSEY 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 transactions/1/
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 Information Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
------------------------------------------------------------------
Ticker Symbols Class A: ONJAX Class B: ONJEX Class C: ONJCX
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
[LOGO OF OPPENHEIMER FUNDS DISTRIBUTOR, INC.]
RA0395.001.0700 September 29, 2000
