<PAGE> 1
[GRAPHIC]
SEMIANNUAL REPORT JANUARY 31, 2000
OPPENHEIMER
FLORIDA MUNICIPAL FUND1234
[OPPENHEIMERFUNDS LOGO]
RS0795.001.0100 March 31, 2000
<PAGE> 2
REPORT HIGHLIGHTS
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Manager
8 Financial
Statements
24 Officers and Trustees
25 OppenheimerFunds Family
MUNICIPAL BOND PRICES GENERALLY DECLINED in a rising-interest-rate environment
over the six-month reporting period.
WE FOCUSED PRIMARILY ON INSURED SECURITIES DURING THE PERIOD, as yield
differences had narrowed between high quality and lower quality municipal bonds.
We believe that the Fund's undervalued holdings may benefit as the INVESTMENT
ENVIRONMENT IMPROVES AND DEMAND FOR HIGH YIELDING SECURITIES PICKS UP.
CUMULATIVE
TOTAL RETURNS
For the 6-Month Period
Ended 1/31/00 *
Class A
Without With
Sales Chg. Sales Chg.
- --------------------------
- -4.70% -9.23%
Class B
Without With
Sales Chg. Sales Chg.
- --------------------------
- -5.05% -9.68%
Class C
Without With
Sales Chg. Sales Chg.
- --------------------------
- -5.07% -5.99%
- -------------------
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
- -------------------
*See page 7 for further details.
<PAGE> 3
PRESIDENT'S LETTER
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Florida Municipal Fund
DEAR SHAREHOLDER,
Whenever a new year begins--let alone a new decade or century--it makes sense to
pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns, and
overall, foreign stocks outperformed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a moderate-growth,
low-inflation course. As recent revisions of 1999's economic statistics
demonstrated, the economy has defied many analysts' forecasts by growing at a
strong rate, which should be positive for the bond market. Similarly, positive
economic forces could help the stock market's performance broaden to include
value-oriented and smaller stocks.
We see particularly compelling opportunities outside of the U.S. market.
Many foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving
1 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 4
PRESIDENT'S LETTER
companies there the same potential for cost-cutting and productivity
improvements that U.S. companies enjoyed 10 years ago. In Japan and Asia,
economic recovery is expected to gain strength, which could allow stocks to
rally from relatively low levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control. The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com" companies will survive,
and many of these high-flying Internet stocks will eventually--and perhaps very
suddenly--return to more reasonable levels. The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification to
manage risks, and availing oneself of the services of a knowledgeable financial
advisor. Indeed, these principles serve as the foundation for every investment
we offer, helping to make OppenheimerFunds The Right Way to Invest in 2000 and
beyond.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
February 22, 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.
Fund
2 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 5
AN INTERVIEW WITH YOUR FUND'S MANAGER
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Christian Smith
Robert Patterson
(Portfolio Manager)
Q HOW DID OPPENHEIMER FLORIDA MUNICIPAL BOND FUND PERFORM OVER THE SIX-MONTH
PERIOD THAT ENDED JANUARY 31, 2000?
A. The Fund's performance over the past six months reflected a very challenging
investment environment. During the reporting period, stronger-than-expected
economic growth in both domestic and overseas markets fueled investors' concerns
that inflationary pressures might reemerge in the U.S. economy. As a result,
interest rates and most bond yields rose. Because bond yields and prices move in
opposite directions, higher interest rates eroded the value of many fixed income
securities, including municipal bonds. In addition, the tax-exempt bond market
was subject to adverse supply-and-demand influences, which eroded returns
further.
WHAT ECONOMIC FORCES AFFECTED MUNICIPAL BONDS AND THE FUND?
When the reporting period began on July 1, 1999, the Federal Reserve Board had
just implemented its first interest rate hike of 1999. They did so in response
to concerns that unsustainable economic growth might re-ignite inflationary
pressures. While inflation had not yet accelerated, early warning signs included
very low unemployment, high levels of consumer spending and borrowing, and
rising commodities prices. When the economy subsequently gained momentum, the
Federal Reserve raised short-term interest rates again in August and November
for a total increase of 0.75 percentage points during the reporting period.
These increases were quickly reflected in municipal bond prices.
3 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 6
AN INTERVIEW WITH YOUR FUND'S MANAGER
"AFTER A CHALLENGING 1999, WE BELIEVE THE portfolio is well-positioned to
benefit from better market conditions in 2000."
WHAT SUPPLY-AND-DEMAND FACTORS INFLUENCED THE FUND'S PERFORMANCE?
Higher interest rates reduced demand for municipal bonds from corporate and
institutional investors. In addition, many mutual fund shareholders shifted
assets from bond funds to stock funds because of the stock market's stellar
returns, which reduced overall demand from tax-exempt mutual funds. With these
investors effectively absent from the market, municipal bond yields rose further
than would have been expected from the Fed's interest rate increases alone.
HOW WAS THE FUND MANAGED IN THIS ENVIRONMENT?
We primarily focused on repositioning the portfolio to a more defensive posture
in order to provide a cushion against the adverse effects of a declining market.
With higher yielding securities available, we sold some of our lower yielding
holdings to enhance the Fund's income stream. Although we sold many of these
securities at a lower price than their original cost, we were able to use these
losses to offset earlier gains, helping to reduce capital gains tax liabilities
for our shareholders.
WHERE DID YOU FIND THE MOST ATTRACTIVE INVESTMENT OPPORTUNITIES?
We found particularly attractive yields in insured bonds from Florida issuers
with maturities in the 20-year range. Because the yield difference between high
quality and lower quality bonds had narrowed, we believed that we would not be
adequately compensated for the extra risks lower yielding bonds entail. We
preferred the 20-year maturity range because their prices held up better than
intermediate-term securities in the 10- to 15-year range, which were
particularly hard hit by the lack of demand from institutional buyers.
4 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 7
- -------------------------------
AVERAGE ANNUAL
TOTAL RETURNS(1)
For the Periods Ended 12/31/99
Class A Since
1-Year 5-Year Inception
- -------------------------------
- -9.59% 5.04% 3.40%
Class B Since
1-Year 5-Year Inception
- -------------------------------
- -10.37% 4.94% 3.48%
Class C Since
1-Year 5-Year Inception
- -------------------------------
- -6.70% N/A 3.70%
- -------------------------------
STANDARDIZED YIELD(2)
For the 30-days Ended 1/31/00
Class A 5.33%
Class B 4.83
Class C 4.83
- ----------------------------------
On the other hand, we carefully avoided those sectors of the market that we
regarded as troublesome, including healthcare and utilities. However, we
maintained our holdings of "special situations," which are bonds that we regard
as undervalued at the time of purchase, and that we believe will benefit from
the improving credit quality of their issuers. One example of a special
situation bond is the community development districts located throughout the
state of Florida, many of which are backed by tax revenues in areas that are
becoming more populous. When institutional demand returns to the markets, we
believe that these bonds' value will rise. However, during the past six months,
they have hurt the Fund's returns.
WHAT IS YOUR OUTLOOK FOR THE NEW YEAR?
We are cautious over the near term and optimistic over the longer term. We
expect the U.S. economy to remain strong over the next several months, which may
prompt the Federal Reserve Board to increase interest rates further.
Accordingly, we intend to maintain our defensive posture until we believe the
Fed's moves toward a more restrictive monetary policy are complete. If and when
evidence emerges that the bulk of interest rate increases are behind us, we
anticipate better performance from our "special situations" holdings. We also
anticipate the return of corporate and institutional buyers, which should help
support tax-exempt bond prices.
1. See page 7 for further details.
2. Standardized yield is based on net investment income for the 30-day period
ended January 31, 2000. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 8
- -------------------------------
CREDIT ALLOCATION(3)
[PIE CHART]
- - AAA 40.7%
- - AA 9.5
- - A 8.5
- - BBB 20.6
- - BB 20.7
- -------------------------------
For our part, when the investment environment improves, we are prepared to seize
opportunities more aggressively, with an eye toward locking in high yields for
as long as practical and participating in the potential for capital
appreciation. In our view, this kind of active management approach is what makes
Oppenheimer Florida Municipal Bond Fund an important part of The Right Way to
Invest.
TOP FIVE INDUSTRIES(4)
Percentage of invested assets
- ----------------------------------------------------
Special Assessment 23.4%
- ----------------------------------------------------
Single Family Housing 12.4
- ----------------------------------------------------
Multi-Family Housing 9.3
- ----------------------------------------------------
Sales Tax 8.5
- ----------------------------------------------------
Education 7.9
3. Portfolio data are as of January 31, 2000, are dollar-weighted based
on total market value of investments and are subject to change. The Fund may
invest up to 25% of its assets in below-investment-grade securities which carry
greater risk of default. Average credit quality and ratings allocations include
securities rated by national ratings organizations as well as unrated securities
(currently 27.5% of total investments) which have ratings assigned by the
Manager in categories equivalent to those of ratings organizations.
4. Industry weightings are as of January 31, 2000, and are subject to change.
6 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 9
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 UPDATES
ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL US AT
1.800.525.7048 OR VISIT OUR WEBSITE, WWW.OPPENHEIMERFUNDS.COM.
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized.
CLASS A shares were first publicly offered on 10/1/93. Class A returns include
the current maximum initial sales charge of 4.75%.
CLASS B shares of the Fund were first publicly offered on 10/1/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 1% (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. Class C
returns include the contingent deferred sales charge of 1% for the1-year
period.Class C shares are subject to an annual 0.75% asset-based sales charge.
An explanation of the different performance calculations is in the Fund's
prospectus.
7 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 10
STATEMENT OF INVESTMENTS January 31, 2000 / Unaudited
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/ FACE MARKET VALUE
S&P/FITCH AMOUNT SEE NOTE 1
==================================================================================================================
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--101.4%
- ------------------------------------------------------------------------------------------------------------------
FLORIDA--81.8%
Alachua Cnty., FL HFAU RRB, Santa Fe HCF Project,
Escrowed to Maturity, 6%, 11/15/09 Baa1/AAA $ 875,000 $ 901,014
- ------------------------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU MH RRB, Windover
Oaks Project, Series A, 6.90%, 2/1/27 NR/AAA 1,000,000 1,075,830
- ------------------------------------------------------------------------------------------------------------------
Brevard Cnty., FL Housing FAU SFM RB, 6.70%, 9/1/27 Aaa/NR 830,000 843,147
- ------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.70%, 10/1/33 NR/NR/A 980,000 884,577
- ------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Pembroke Park Apts. Project, 5.75%, 4/1/38 NR/NR/A 980,000 873,915
- ------------------------------------------------------------------------------------------------------------------
Broward Cnty., FL Housing FAU MH RB,
Stirling Apts. Project, 5.75%, 4/1/38 NR/NR/A 855,000 762,446
- ------------------------------------------------------------------------------------------------------------------
Clay Cnty., FL Housing FAU SFM RB, 6.55%, 3/1/28 Aaa/NR 800,000 808,960
- ------------------------------------------------------------------------------------------------------------------
Collier Cnty., FL HFAU RRB, The Moorings, Inc.
Project, 7%, 12/1/19 NR/BBB+/A 1,000,000 1,019,450
- ------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL Aviation RB, Series B, MBIA Insured,
6.60%, 10/1/22 Aaa/AAA/AA- 1,000,000 1,023,020
- ------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL IDAU RB, Miami Cerebral Palsy
Services Project, 8%, 6/1/22 NR/NR 2,155,000 2,257,513
- ------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL Professional Sports Franchise Facilities
Tax & CAP RB, MBIA Insured, Zero Coupon,
5.85%, 10/1/26(1) Aaa/AAA 3,200,000 598,752
- ------------------------------------------------------------------------------------------------------------------
Fishhawk, FL CDD SPAST RB, 7.625%, 5/1/18 NR/NR 1,000,000 1,016,490
- ------------------------------------------------------------------------------------------------------------------
FL BOE Capital Outlay RRB, Public Education,
Series D, 5.75%, 6/1/22(2) Aa2/AA+/AA 3,295,000 3,108,305
- ------------------------------------------------------------------------------------------------------------------
FL Heritage Harbor CDD SPAST RB, Series B, 6%, 5/1/03 NR/NR 800,000 790,992
- ------------------------------------------------------------------------------------------------------------------
FL HFA RB, Maitland Club Apts. Project, Series B-1,
AMBAC Insured, 6.75%, 8/1/14(3) Aaa/AAA/AAA 1,000,000 1,039,470
- ------------------------------------------------------------------------------------------------------------------
FL HFA RB, Riverfront Apts., Series A,
AMBAC Insured, 6.25%, 4/1/37 Aaa/AAA/AAA 1,400,000 1,382,318
- ------------------------------------------------------------------------------------------------------------------
FL Housing Finance Corp. RB, FSA Insured,
Zero Coupon, 5.55%, 7/1/30(1) Aaa/AAA/AAA 8,000,000 1,143,200
- ------------------------------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST RB, Series A, 6.30%, 5/1/02 NR/NR 1,461,000 1,456,719
- ------------------------------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST RB, Series B, 6.90%, 5/1/19 NR/NR 750,000 731,745
- ------------------------------------------------------------------------------------------------------------------
Heritage Springs, FL CDD Capital Improvement RB,
Series B, 6.25%, 5/1/05 NR/NR 1,750,000 1,726,393
- ------------------------------------------------------------------------------------------------------------------
Lee Cnty., FL Housing FAU SFM RB, Series A-2,
6.85%, 3/1/29 Aaa/NR 890,000 936,547
- ------------------------------------------------------------------------------------------------------------------
Lee Cnty., FL IDAU HCF RRB, Shell Point
Village Project, Series A, 5.50%, 11/15/21 NR/BBB- 1,000,000 764,080
- ------------------------------------------------------------------------------------------------------------------
Lee Cnty., FL IDAU HCF RRB, Shell Point Village Project,
Series A, 5.50%, 11/15/29 NR/BBB- 1,000,000 732,490
</TABLE>
8 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 11
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/ FACE MARKET VALUE
S&P/FITCH 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 $ 1,992,260
- ------------------------------------------------------------------------------------------------------------------
Miami Beach, FL HFAU Hospital RB, Mt. Sinai
Medical Center Project, 5.375%, 11/15/18 NR/BBB/BBB+ 1,500,000 1,167,555
- ------------------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB, City Center
Historic Convention, Series B, 6.25%, 12/1/16 Baa2/BBB 500,000 493,550
- ------------------------------------------------------------------------------------------------------------------
Miami Beach, FL RA Tax Increment RB, City Center
Historic Convention, Series B, 6.35%, 12/1/22 Baa2/BBB 500,000 493,485
- ------------------------------------------------------------------------------------------------------------------
Miami, FL HFAU RRB, AMBAC Insured,
Inverse Floater, 6.74%, 8/15/15(4) Aaa/AAA/AAA 2,000,000 1,682,500
- ------------------------------------------------------------------------------------------------------------------
Miami, FL Sanitation & Sewer Systems GOB,
FGIC Insured, 6.50%, 1/1/14 Aaa/AAA 1,750,000 1,828,943
- ------------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien, Series B,
MBIA Insured, Zero Coupon, 5.50%, 10/1/28(1) Aaa/AAA/AAA 4,500,000 726,210
- ------------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RB, Sub. Lien, Series B,
MBIA Insured, Zero Coupon, 5.53%, 10/1/34(1) Aaa/AAA/AAA 3,170,000 346,893
- ------------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RRB, Sub. Lien, Series A,
MBIA Insured, Zero Coupon, 5.52%, 10/1/17(1) Aaa/AAA/AAA 5,425,000 1,830,558
- ------------------------------------------------------------------------------------------------------------------
Northern Palm Beach Cnty., FL Water Control &
Improvement District RB, Unit Development 9B,
5.90%, 8/1/19 NR/NR 1,085,000 979,842
- ------------------------------------------------------------------------------------------------------------------
Northern Palm Beach Cnty., FL Water Control &
Improvement District RB, Unit Development 9B,
6%, 8/1/29 NR/NR 1,240,000 1,096,594
- ------------------------------------------------------------------------------------------------------------------
Orlando, FL Utilities Commission Water & Electric RB,
Inverse Floater, 7.114%, 10/1/17(4) Aa/AA- 1,000,000 930,000
- ------------------------------------------------------------------------------------------------------------------
Palm Beach Cnty., FL Housing FAU MH RB,
Windsor Park Apts. Project, Series A, 5.90%, 6/1/38 NR/NR/A 500,000 451,315
- ------------------------------------------------------------------------------------------------------------------
Stoneybrook, FL CDD Capital Improvement RB,
Series A, 6.10%, 5/1/19 NR/NR 830,000 750,503
- ------------------------------------------------------------------------------------------------------------------
Stoneybrook, FL CDD Capital Improvement RB,
Series B, 5.70%, 5/1/08 NR/NR 2,510,000 2,368,963
- ------------------------------------------------------------------------------------------------------------------
Tampa Palms, FL Open Space & Transportation CDD
SPAST RB, Capital Improvement-Area 7 Phase Two Project,
7.50%, 5/1/18 NR/NR 1,170,000 1,183,326
- ------------------------------------------------------------------------------------------------------------------
Volusia Cnty., FL Educational Facility Authority RB,
Stetson University, Inc., AMBAC Insured, 5.25%, 6/1/29 Aaa/NR/AAA 2,000,000 1,736,040
-------------
45,935,910
</TABLE>
9 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 12
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/ FACE MARKET VALUE
S&P/FITCH AMOUNT SEE NOTE 1
==================================================================================================================
<S> <C> <C> <C>
U.S. POSSESSIONS--19.6%
Guam Housing Corp. SFM RB, Series A, 5.75%, 9/1/31 NR/AAA $2,630,000 $ 2,462,916
- ------------------------------------------------------------------------------------------------------------------
PR CMWLTH Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 520,000 651,992
- ------------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Inverse Floater,
6.443%, 7/1/28(4,5) NR/NR 2,500,000 1,696,850
- ------------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series W, Inverse Floater,
6.609%, 7/1/10(4) Baa1/A 1,000,000 990,000
- ------------------------------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU Special RRB,
Unrefunded Balance, Series A, 7.90%, 7/1/07 Baa1/BBB+ 130,000 131,630
- ------------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 6.56%, 1/16/15(4) Aaa/AAA 1,000,000 1,060,000
- ------------------------------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Series A, 6.375%, 10/1/19 NR /BBB- 2,000,000 1,935,220
- ------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems RRB,
5.30%, 7/1/18 NR/NR/BBB 1,500,000 1,266,285
- ------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems RRB,
5.30%, 7/1/21 NR/NR/BBB 1,000,000 825,680
--------------
11,020,573
--------------
Total Municipal Bonds and Notes (Cost $61,872,895) 56,956,483
==================================================================================================================
SHORT-TERM TAX-EXEMPT OBLIGATIONS--2.7%
FL BOE Public Education Capital Outlay Municipal Securities
Trust Receipts, Series SGA 67, 3.65%, 6/1/006
(Cost $1,500,000) 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $63,372,895) 104.1% 58,456,483
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (4.1) (2,289,871)
---------------------------------
NET ASSETS 100.0% $56,166,612
=================================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
To simplify the listing of securities, abbreviations are used per the table
below:
<TABLE>
<S> <C> <C> <C>
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 Authority SPO Special Obligations
</TABLE>
1. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
2. When-issued security to be delivered and settled after January 31, 2000.
3. Securities with an aggregate market value of $627,420 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
10 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 13
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
4. 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 $6,359,350 or 11.32% of the
Fund's net assets as of January 31, 2000.
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 $1,696,850 or 3.02% of the Fund's net
assets as of January 31, 2000.
6. Represents the current interest rate for a variable or increasing rate
security.
AS OF JANUARY 31, 2000, SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX
AMOUNT TO $13,221,774 OR 23.54% OF THE FUND'S NET ASSETS.
DISTRIBUTION OF INVESTMENTS BY INDUSTRY, AS A PERCENTAGE OF TOTAL INVESTMENTS
AT VALUE, IS AS FOLLOWS:
<TABLE>
<CAPTION>
INDUSTRY MARKET VALUE PERCENT
- ---------------------------------------------------------------------
<S> <C> <C>
Special Assessment $ 13,687,353 23.4%
Single Family Housing 7,234,240 12.4
Multifamily Housing 5,430,402 9.3
Sales Tax 4,970,511 8.5
Education 4,608,305 7.9
Hospital/Healthcare 3,751,069 6.4
Electric Utilities 3,021,965 5.2
Highways 2,686,850 4.6
Adult Living Facilities 2,516,020 4.3
Not-for-Profit Organizations 2,257,513 3.9
Resource Recovery 1,992,260 3.4
General Obligation 1,828,943 3.1
Higher Education 1,736,040 3.0
Telephone Utilities 1,060,000 1.8
Marine/Aviation Facilities 1,023,020 1.8
Water Utilities 651,992 1.0
-------------------------
Total $58,456,483 100.0%
=========================
</TABLE>
See accompanying Notes to Financial Statements.
11 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES Unaudited
<TABLE>
<CAPTION>
JANUARY 31, 2000
=====================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $63,372,895) -- see accompanying statement $ 58,456,483
- -----------------------------------------------------------------------------------------------------
Cash 56,026
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 961,029
Shares of beneficial interest sold 151,647
Daily variation on futures contracts 101,563
Other 2,537
--------------
Total assets 59,729,285
=====================================================================================================
LIABILITIES
Payables and other liabilities:
Investments purchased (including $3,206,101 purchased on a when-issued basis) 3,206,101
Dividends 165,601
Trustees' compensation 61,972
Shares of beneficial interest redeemed 50,982
Distribution and service plan fees 7,069
Transfer and shareholder servicing agent fees 2,552
Other 68,396
---------------
Total liabilities 3,562,673
=====================================================================================================
NET ASSETS $ 56,166,612
===============
=====================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 61,063,449
- -----------------------------------------------------------------------------------------------------
Overdistributed net investment income (111,039)
- -----------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 161,627
- -----------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (4,947,425)
---------------
Net assets $ 56,166,612
===============
=====================================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$34,294,657 and 3,296,518 shares of beneficial interest outstanding) $10.40
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $10.92
- -----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $19,003,686
and 1,823,857 shares of beneficial interest outstanding) $10.42
- -----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $2,868,269
and 275,976 shares of beneficial interest outstanding) $10.39
</TABLE>
See accompanying Notes to Financial Statements.
12 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 15
STATEMENT OF OPERATIONS Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended January 31, 2000
==================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 1,843,600
==================================================================================
EXPENSES
Management fees 174,794
- ----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 41,841
Class B 103,265
Class C 15,871
- ----------------------------------------------------------------------------------
Shareholder reports 34,076
- ----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 18,340
- ----------------------------------------------------------------------------------
Custodian fees and expenses 15,458
- ----------------------------------------------------------------------------------
Trustees' compensation 5,470
- ----------------------------------------------------------------------------------
Other 15,538
-------------
Total expenses 424,653
Less reimbursement of expenses (45,154)
Less expenses paid indirectly (4,249)
-------------
Net expenses 375,250
==================================================================================
NET INVESTMENT INCOME 1,468,350
==================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (326,693)
Closing of futures contracts 939,434
-----------
Net realized gain 612,741
- --------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (4,973,728)
-----------
Net realized and unrealized gain (4,360,987)
================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(2,892,637)
===========
</TABLE>
See accompanying Notes to Financial Statements.
13 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 16
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
6 MOS. ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
=============================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 1,468,350 $ 2,748,965
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain 612,741 424,490
- -----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (4,973,728) (2,594,407)
---------------------------------------
Net increase (decrease) in net assets resulting from operations (2,892,637) 579,048
=============================================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (905,753) (1,711,561)
Class B (453,955) (848,422)
Class C (69,869) (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 1,057,712 2,068,521
Class B (942,145) 2,942,094
Class C (392,750) 1,194,095
=============================================================================================================================
NET ASSETS
Total increase (decrease) (4,785,927) 4,095,706
- -----------------------------------------------------------------------------------------------------------------------------
Beginning of period 60,952,539 56,856,833
---------------------------------------
End of period (including overdistributed net investment
income of $111,039 and $149,812, respectively) $56,166,612 $60,952,539
=======================================
</TABLE>
See accompanying Notes to Financial Statements
14 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 17
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
6 MOS.
ENDED YEAR YEAR
JAN. 31, ENDED ENDED
2000 JULY 31, DEC. 31,
CLASS A (UNAUDITED) 1999 1998 1997 1996(1) 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 .29 .56 .54 .64 .36 .63
Net realized and unrealized gain (loss) (.81) (.39) .19 .37 (.34) 1.14
--------------------------------------------------------------------------
Total income (loss) from
investment operations (.52) .17 .73 1.01 .02 1.77
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.28) (.55) (.58) (.61) (.35) (.63)
Distributions from net realized gain (.04) -- -- -- -- --
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.32) (.55) (.58) (.61) (.35) (.63)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.40 $11.24 $11.62 $11.47 $11.07 $11.40
==========================================================================
============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (4.70)% 1.36% 6.52% 9.39% 0.25% 17.60%
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $34,295 $35,924 $35,074 $27,446 $19,366 $19,377
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $34,163 $36,532 $32,153 $24,333 $18,415 $14,508
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 5.37% 4.78% 4.61% 5.70% 5.50% 5.71%
Expenses 1.15% 1.13% 1.15%(4) 1.02%(4) 1.23%(4) 1.36%(4)
Expenses, net of indirect expenses,
voluntary assumption of expenses
and/or waiver of expenses 0.98% 0.95% 0.96% 0.87% 1.09% 0.53%
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 9% 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.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended January 31, 2000, were $6,942,253 and $5,190,982,
respectively.
See accompanying Notes to Financial Statements.
15 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 18
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
6 MOS.
ENDED YEAR YEAR
JAN. 31, ENDED ENDED
2000 JULY 31, DEC. 31,
CLASS B (UNAUDITED) 1999 1998 1997 1996(1) 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 .25 .47 .46 .55 .31 .55
Net realized and unrealized gain (loss) (.81) (.39) .18 .37 (.34) 1.15
------------------------------------------------------------------
Total income (loss) from
investment operations (.56) .08 .64 .92 (.03) 1.70
- ---------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.24) (.46) (.49) (.52) (.30) (.55)
Distributions from net realized gain (.04) -- -- -- -- --
------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.28) (.46) (.49) (.52) (.30) (.55)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.42 $11.26 $11.64 $11.49 $11.09 $11.42
==================================================================
=====================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (5.05)% 0.60% 5.71% 8.56% (0.19)% 16.81%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $19,004 $21,524 $19,344 $15,348 $12,865 $12,658
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $20,480 $21,648 $17,024 $13,812 $12,843 $10,772
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.60% 4.02% 3.85% 4.93% 4.75% 4.92%
Expenses 1.92% 1.88% 1.91%(4) 1.79%(4) 1.97%(4) 2.11%(4)
Expenses, net of indirect expenses,
voluntary assumption of expenses
and/or waiver of expenses 1.75% 1.70% 1.72% 1.64% 1.83% 1.29%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 9% 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.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended January 31, 2000, were $6,942,253 and $5,190,982,
respectively.
See accompanying Notes to Financial Statements.
16 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 19
<TABLE>
<CAPTION>
6 MOS.
ENDED YEAR YEAR
JAN. 31, ENDED ENDED
2000 JULY 31, DEC. 31,
CLASS C (UNAUDITED) 1999 1998 1997 1996(1) 1995(6)
=======================================================================================================================
<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 .25 .47 .46 .53 .31 .20
Net realized and unrealized gain (loss) (.81) (.39) .18 .38 (.34) .44
--------------------------------------------------------------------
Total income (loss) from
investment operations (.56) .08 .64 .91 (.03) .64
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.24) (.46) (.49) (.52) (.30) (.20)
Distributions from net realized gain (.04) -- -- -- -- --
--------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.28) (.46) (.49) (.52) (.30) (.20)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.39 $11.23 $11.61 $11.46 $11.07 $11.40
====================================================================
=======================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (5.07)% 0.60% 5.72% 8.41% (0.22)% 5.86%
=======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $2,868 $3,504 $2,439 $956 $72 $39
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,147 $3,260 $1,638 $380 $78 $ 5
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.60% 4.02% 3.82% 4.87% 4.68% 4.68%
Expenses 1.92% 1.88% 1.91%(4) 1.75%(4) 1.99%(4) 1.92%(4)
Expenses, net of indirect expenses,
voluntary assumption of expenses
and/or waiver of expenses 1.75% 1.70% 1.72% 1.60% 1.87% 1.43%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 9% 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.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended January 31, 2000, were $6,942,253 and $5,190,982,
respectively.
6. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
See accompanying Notes to Financial Statements.
17 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS Unaudited
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Florida Municipal Fund (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, a non-diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek as high a level of current
interest income exempt from federal income 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 an initial
sales charge. Class B and Class C shares are sold at without an initial 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 shares 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 for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, 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 cost
(or last determined market value) and adjusted for amortization or accretion to
maturity of any premium or discount.
- --------------------------------------------------------------------------------
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS. Delivery and payment for securities
that have been purchased by the Fund on a forward commitment or when-issued
basis can take place a month or more after the transaction date. Normally the
settlement date occurs within six months after the transaction 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
18 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 21
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 January 31, 2000, the Fund had
entered into outstanding when-issued or forward commitments of $3,206,101.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. As of July 31, 1999, the
Fund had available for federal tax purposes an unused capital loss carryover of
approximately $192,000, which expires in 2006.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted 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
six months ended January 31, 2000, a provision of $1,611 was made for the
Fund's projected benefit obligations, resulting in an accumulated liability of
$61,875 as of January 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 DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
19 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date. Original
issue discount is accreted and premium is amortized in accordance with federal
income tax requirements. For municipal bonds acquired after April 30, 1993, on
disposition or maturity, taxable ordinary income is recognized to the extent of
the lesser of gain or market discount that would have accrued over the holding
period. Realized gains and losses on investments and unrealized appreciation and
depreciation are determined on an identified cost basis, which is the same basis
used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
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>
6 MOS. ENDED JANUARY 31, 2000 YEAR ENDED JULY 31, 1999
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 933,966 $ 9,993,292 789,844 $ 9,221,652
Dividends and/or
distributions reinvested 49,024 530,649 71,294 829,646
Redeemed (881,947) (9,466,229) (684,647) (7,982,777)
---------------------------------------------------------------------------
Net increase 101,043 $ 1,057,712 176,491 $ 2,068,521
===========================================================================
- -------------------------------------------------------------------------------------------------------------------
CLASS B
Sold 376,698 $ 4,050,190 645,846 $ 7,556,033
Dividends and/or
distributions reinvested 21,354 231,502 29,901 348,434
Redeemed (485,898) (5,223,837) (426,626) (4,962,373)
---------------------------------------------------------------------------
Net increase (decrease) (87,846) $ (942,145) 249,121 $ 2,942,094
===========================================================================
- -------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 50,979 $ 540,874 170,949 $ 1,991,849
Dividends and/or
distributions reinvested 5,190 56,122 8,248 95,915
Redeemed (92,166) (989,746) (77,350) (893,669)
---------------------------------------------------------------------------
Net increase (decrease) (35,997) $ (392,750) 101,847 $ 1,194,095
===========================================================================
</TABLE>
20 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 23
================================================================================
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of January 31, 2000, net unrealized depreciation on securities of $4,916,412
was composed of gross appreciation of $387,223, and gross depreciation of
$5,303,635.
================================================================================
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 Fund's management fee for the six
months ended January 31, 2000 was 0.60% of the average annual net assets of each
class of shares, annualized for periods of less than one full year, before the
voluntary waiver by the Manager.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
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
SIX MONTHS ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
January 31, 2000 $25,246 $4,379 $-- $78,201 $2,083
</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
SIX MONTHS ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
January 31, 2000 $-- $30,483 $--
</TABLE>
21 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
================================================================================
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
- --------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements
to the Distributor at a rate of up to 0.15% of average annual net assets of
Class A shares 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 six months ended
January 31, 2000, payments under the Class A Plan totaled $41,841, all of which
was 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 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 six months ended January 31,
000, 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 $103,265 $82,811 $625,062 3.29%
Class C Plan 15,871 4,151 30,821 1.07
</TABLE>
22 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 25
================================================================================
5. FUTURES CONTRACTS
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to protect against changes in interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases
in interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund may recognize a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include
the possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the value of
the underlying securities.
As of January 31, 2000, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION
CONTRACT DESCRIPTION DATE CONTRACTS JANUARY 31, 2000 (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONTRACTS TO SELL
Municipal Bond 3/22/00 50 $4,534,375 $ 147,112
U.S. Long Bond 3/22/00 100 9,221,875 (178,124)
-----------
$ (31,012)
===========
</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 six months ended
January 31, 2000.
23 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 26
OPPENHEIMER FLORIDA MUNICIPAL FUND
<TABLE>
<CAPTION>
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 G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
==========================================================================================
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
The financial statements included herein have
been taken from the records of the Fund without
examination of the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Florida Municipal Fund. This report must
be preceded or accompanied by a Prospectus of
Oppenheimer Florida Municipal Fund. For material
information concerning the Fund, see the Prospectus.
SHARES OF OPPENHEIMER FUNDS ARE NOT DEPOSITS OR
OBLIGATIONS OF ANY BANK, ARE NOT GUARANTEED BY ANY
BANK, ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY,
AND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE
LOSS OF THE PRINCIPAL AMOUNT INVESTED.
</TABLE>
24 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 27
OPPENHEIMERFUNDS 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(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
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 Fund(3)
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
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 MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income
Fund."
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY10048-0203.
(C) Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
25 OPPENHEIMER FLORIDA MUNICIPAL FUND
<PAGE> 28
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
INTERNET
24-hr access to account information and transactions
WWW.OPPENHEIMERFUNDS.COM
- ----------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- --------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- --------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
- --------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- --------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
- --------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
[OPPENHEIMERFUNDS LOGO]
RS0795.001.0100 March 31, 2000
