GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General California
Municipal Bond Fund, Inc. For its semi-annual reporting period ended March
31, 1996, your portfolio earned a total return, including bond price changes,
interest income and capital gain distributions of 2.40%.* Income dividends
exempt from Federal and State of California personal income taxes of
approximately $.342 per share were paid to shareholders.** This is equivalent
to an annualized tax-free distribution rate per share of 5.16%.***
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. Presently, there are indications that the labor market may be
tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a possibility
well worth noting since worker wages are emerging as a political issue in
this year's election. The surprisingly strong employment figures in February
caused a sharp rise in interest rates. As a result, fixed-income returns for
the first quarter of this year were negative.
Several factors that temporarily depressed economic activity have ended.
With the arrival of spring, the severe winter weather which suppressed
construction and discouraged consumer shopping is over. Additionally, the
17-day strike at two General Motors brake-parts plants has been settled. This
strike had nearly resulted in a complete shutdown of GM North American
manufacturing.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed has reduced the level of short-term interest rates three
times to spur the sluggish economy, the last reduction occurring on January
31, 1996.
Nevertheless, we are reluctant to paint an overly optimistic business
picture since much economic data still remains mixed. Business capital
spending has been an important stimulant to economic growth over the past few
years, particularly in light of the retrenchment in consumer spending. A
recent survey by the Commerce Department revealed that businesses plan only
modest increases in spending on new buildings and equipment this year
compared to 1995. Overall, the survey indicated that capital spending would
rise only 1.5% compared to last year's growth rate of 8.1%. The survey also
points out a significant divergence between the spending plans of
manufacturing companies and those of retailers and wholesalers. Influenced by
strong export growth, capital spending by manufacturers is estimated to rise
7.2%. Conversely, weak consumer spending has resulted in retailers and
wholesalers cutting their capital spending estimates by 4%. The more cautious
approach to business spending may be an indication that overall economic
growth in 1996 will be modest.
THE MARKET
Only a few months ago, the municipal market was viewing very benign
inflation data, a soft economy and a very manageable supply of tax-exempt
securities as the necessary ingredients for sustaining last year's strong
market gains. While the technical condition (good demand for and moderate new
issuance of municipal bonds) continues to be a positive factor for the
market, the recent stronger economic and inflation reports have exerted a
much more negative effect on bond prices. When compared to other
bond markets, municipals have generally fared more favorably. As the talk
(and threat) of major tax law changes diminish, we believe that more
investors will once again begin to realize the value of tax-exempt funds.
Certainly, should the economic picture begin to show that neither inflation
nor the economy are growing at unacceptable levels, a compelling case can be
made for the value of owning tax-exempts.
One major beneficiary of and contributor to the nation's economic
recovery is the State of California. In fact, a number of national news
publications have recently featured stories about the State's economic surge.
Unemployment has dropped precipitously since peaking at over 9% three years
ago. Economists estimate that one million new jobs will be created over the
next few years! The severely depressed housing market has rebounded smartly:
Home sales are up 40% from last year's numbers. This rebound is not going
unnoticed on Wall Street. One major rating agency recently upgraded the
State's credit, while the others are watching closely.
THE PORTFOLIO
The portfolio structure is much more defensive today than it was a few
months ago. The duration (a measure of price risk) was reduced significantly
in view of the stronger economic readings. To accomplish this move, a higher
percentage of the portfolio is now held in shorter-term securities.
Additionally, the portfolio's holdings of longer maturity bonds were sold.
The Fund's current posture should serve it well if still higher interest
rates lie ahead. However, we are mindful both of the inherently limited
supply of bonds available for purchase and also of the market's general
tendency to reach an oversold position followed by a dramatic move the other
way.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
***Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period, adjusted for capital gain
distributions.
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-87.2% AMOUNT VALUE
_______ _______
<S>
CALIFORNIA-85.4% <C> <C>
ABAG Finance Corp., COP (ABAG XXIV) 6.90%, 4/1/2012......................... $ 3,500,000 $ 3,643,465
Allan Hancock Joint Community College District, COP, Refunding
7.625%, 10/1/2005....................................................... 1,055,000 1,146,764
Anaheim Public Financing Authority, Tax Allocation Revenue
6.45%, 12/28/2018 (Insured; MBIA)....................................... 6,000,000 6,351,420
Beaumont Unified School District, COP (Capital Improvement Project)
7.70%, 1/1/2021......................................................... 1,100,000 1,147,608
Berkeley, HR (Alta Bates Project) 7.65%, 12/1/2015 (Prerefunded 8/1/2000) (a) 425,000 475,652
California, Refunding 5.60%, 9/1/2021....................................... 13,410,000 12,908,466
California Educational Facilities Authority, Revenue:
(Chapman College) 7.50%, 1/1/2018....................................... 1,760,000 1,874,206
(University of San Francisco) 6.30%, 10/1/2007.......................... 2,470,000 2,613,976
California Health Facilities Authority, Revenue (Pacific Presbyterian
Hospital)
7.60%, 6/1/2015......................................................... 885,000 967,243
California Health Facilities Financing Authority, Revenue:
(HELP Group) 7%, 8/1/2021
(Insured; California Health Facilities Construction Loan Program)..... 1,800,000 1,904,850
(Pomona Valley Hospital Medical Center) 7.375%, 1/1/2014................ 750,000 795,225
(Walden House) 6.85%, 3/1/2022.......................................... 3,225,000 3,384,250
California Housing Finance Agency, Home Mortgage Revenue:
7.50%, 8/1/2029......................................................... 1,495,000 1,558,612
7.65%, 8/1/2029......................................................... 900,000 943,938
7.60%, 8/1/2030......................................................... 1,750,000 1,837,395
7.70%, 8/1/2030......................................................... 1,540,000 1,617,739
California Pollution Control Financing Authority, SWDR
(North County Recycling Center)
6.75%, 7/1/2011 (LOC; Union Bank of Switzerland) (b).................... 3,500,000 3,462,445
California Public Works Board, LR:
Refunding (Department of Corrections - Del Norte)
5.20%, 12/1/2009 (Insured; MBIA)...................................... 4,650,000 4,559,232
(University of California Projects) 6.40%, 12/1/2016 (Insured; AMBAC)... 1,955,000 2,037,247
California Statewide Communities Development Authority, COP,
Health Facilities Revenue, Refunding (Barton Memorial Hospital)
6.50%, 12/1/2009 (LOC; Banque Nationale De Paris) (b)................... 1,600,000 1,684,784
Chico Public Financing Authority, Revenue
(Chico Municipal Airport and Central Chico Redevelopment Project)
7.40%, 4/1/2021 (Prerefunded 4/1/2000) (a).............................. 2,410,000 2,713,371
Commerce Joint Powers Financing Authority, Revenue, Multiple Project Loans
8%, 3/1/2022............................................................ 2,445,000 2,584,658
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
Compton, COP, Refunding (Civic Center Project)
7.50%, 8/1/2005 (LOC; Mitsui Trust and Banking) (b)..................... $ 2,680,000 $ 2,878,668
Dry Creek Joint School District, Special Tax
(Community Facilities District Number 1)
7.25%, 9/1/2011 (Insured; FSA, Prerefunded 9/1/2000) (a)................ 2,500,000 2,824,625
East Bay Municipal Utility District, Revenue, Refunding:
Wastewater Treatment System:
5%, 6/1/2016 (Insured; FGIC).......................................... 8,035,000 7,342,704
5%, 6/1/2026 (Insured; FGIC).......................................... 6,000,000 5,300,040
Water System:
5%, 6/1/2016 (Insured; FGIC).......................................... 7,500,000 6,812,100
5%, 6/1/2021 (Insured; MBIA).......................................... 3,000,000 2,656,950
5%, 6/1/2026 (Insured; FGIC).......................................... 7,000,000 6,183,380
Folsom Public Financing Authority, Local Agency Revenue 7.70%, 10/1/2020.... 1,200,000 1,239,564
Fontana Public Financing Authority, Tax Allocation Revenue, Refunding
(North Fontana Redevelopment Project) 7.25%, 9/1/2020................... 2,000,000 2,026,860
Fresno Unified School District, COP (Project Phase VI) 7.20%, 5/1/2011...... 4,250,000 4,524,763
Hollister Redevelopment Agency, Tax Allocation
(Hollister Community Development Project) 7.55%, 10/1/2013.............. 1,000,000 1,059,560
Inglewood, HR (Daniel Freeman Hospital) 6.75%, 5/1/2013..................... 2,000,000 2,076,680
Long Beach, Harbor Revenue 5.25%, 5/15/2025 (Insured; MBIA)................. 14,475,000 13,107,402
Los Alamitos Unified School District, Special Tax
(Community Facilities District Number 90-1) 7.15%, 8/15/2021............ 2,000,000 2,062,640
Los Angeles, Harbor Department Revenue 6.60%, 8/1/2015...................... 4,240,000 4,462,770
Los Angeles Department of Water and Power:
Electric Plant Revenue 7.10%, 1/15/2031................................. 2,750,000 3,047,825
Waterworks Revenue 7.625%, 8/1/2027..................................... 2,000,000 2,146,780
Madera County, COP (Valley Childrens Hospital):
6.25%, 3/15/2007 (Insured; MBIA)........................................ 2,545,000 2,735,213
6.50%, 3/15/2008 (Insured; MBIA)........................................ 3,165,000 3,486,374
Newhall Elementary and Castaic Union School Districts, COP
(School Improvement Project) 7.70%, 3/1/2011............................ 2,695,000 2,841,312
Northern California Power Agency, Public Power Revenue
(Hydroelectric Project Number 1):
7.15%, 7/1/2024....................................................... 5,390,000 5,769,133
Refunding 6.30%, 7/1/2018 (Insured; MBIA)............................. 20,400,000 21,916,944
Orange County:
COP (Juvenile Justice Center) 7.625%, 6/1/2019 (Prerefunded 6/1/1999) (a) 2,500,000 2,785,925
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
Orange County (continued):
Special Tax (Community Facilities District Number 87-3)
7.80%, 8/15/2015 (Prerefunded 8/15/2000) (a).......................... $ 1,500,000 $ 1,721,220
Otay Municipal Water District (Improvement District Number 27) 6.70%, 9/1/2022 2,000,000 2,017,120
Oxnard Financing Authority, Solid Waste Revenue 6%, 5/1/2016 (Insured; AMBAC) 5,000,000 5,001,700
Palm Desert (Assessment District Number 94-1) 7.625%, 9/2/2019.............. 1,920,000 1,965,466
Pittsburgh Redevelopment Agency, Tax Allocation
(Los Medanos Project) 5.80%, 8/1/2034 (Insured; FSA) (c)................ 5,000,000 4,890,500
Port Oakland, Special Facilities Revenue (Mitsui O.S.K. Lines Limited)
6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (b)..................... 3,000,000 3,114,570
Richmond Joint Powers Financing Authority, Revenue
7.25%, 5/15/2013 (Prerefunded 5/15/2000) (a)............................ 2,000,000 2,207,320
Sacramento County, Special Tax (Community Facilities District Number 1)
8.25%, 12/1/2020........................................................ 5,610,000 5,967,020
Sacramento Schools Insurance Authority, Revenue (Workers Compensation
Program)
5.75%, 6/1/2003......................................................... 6,865,000 7,050,904
San Bernardino, Health Care Systems Revenue (Sisters of Charity) 7%, 7/1/2021 2,000,000 2,181,940
San Diego Public Facilities Financing Authority, Sewer Revenue
5%, 5/15/2025 (Insured; FGIC)........................................... 8,125,000 7,169,175
San Francisco City and County Airports Commission, International Airport
Revenue
6.25%, 5/1/2014 (Insured; AMBAC)........................................ 3,505,000 3,595,709
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
Zero Coupon, 1/1/2025................................................... 20,000,000 3,031,400
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (d) 3,000,000 1,800,000
Southern California Home Finance Authority, SFMR
6.90%, 10/1/2024 (Collateralized: FNMA and GNMA)........................ 1,665,000 1,711,004
Southern California Public Power Authority, Power Project Revenue
(Multiple Projects) 6.75%, 7/1/2011..................................... 3,750,000 4,149,300
Tehachapi Unified School District, COP (Tompkins Elementary School Project)
7.80%, 2/1/2021 (Prerefunded 2/1/2001) (a).............................. 1,000,000 1,136,990
University of California, Revenue, Refunding (Multiple Purpose Projects)
5%, 9/1/2023 (Insured; AMBAC)........................................... 6,050,000 5,295,686
Valley Health System, HR, Refunding (Improvement Project) 6.50%, 5/15/2015.. 6,250,000 5,897,563
Waterford Public Financing Authority, Revenue 8.20%, 9/15/2020.............. 3,025,000 2,554,219
Yolo County Housing Authority, Mortgage Revenue (Walnut Park Apartments)
7.20%, 8/1/2033 (Insured; FHA).......................................... 4,150,000 4,329,820
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
U. S. RELATED-1.8%
Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue
5.50%, 7/1/2036 (e)..................................................... $ 5,000,000 $ 4,617,850
Puerto Rico Electric Power Authority, Power Revenue 7.125%, 7/1/2014........ 540,000 583,886
______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $247,380,330)................... $251,491,120
=======
SHORT-TERM MUNICIPAL INVESTMENTS-12.8%
California Pollution Control Financing Authority, PCR, Refunding, VRDN
(Exxon Project) 3.25% (f)............................................... $ 2,300,000 $ 2,300,000
Irvine Ranch Water District, Consolidated Improvement, VRDN
3.35% (LOC; Industrial Bank of Japan) (b,f)............................. 10,000,000 10,000,000
Los Angeles County Metropolitan Transportation Authority,
Sales Tax Revenue, Refunding, VRDN 3% (f)............................... 7,000,000 7,000,000
Santa Clara County, Transportation, VRDN 3.30% (LOC; Sumitomo Bank) (b,f)... 2,800,000 2,800,000
Southern California Public Power Authority, Transmission Project Revenue,
Refunding, VRDN (Southern Transmission) 2.95% (LOC; Swiss Bank) (b,f)... 400,000 400,000
Tustin, VRDN (Reassessment District Number 95-2-A)
3.55% (LOC; Kredietbank N.V.) (b,f)..................................... 14,500,000 14,500,000
______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $37,000,000)................... $ 37,000,000
=======
TOTAL INVESTMENTS-100.0% (cost $284,380,330)................................ $288,491,120
=======
</TABLE>
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (G) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- -------------------
<S> <C> <S> <C>
AAA Aaa AAA 40.6%
AA Aa AA 6.8
A A A 22.4
BBB Baa BBB 9.6
BB Ba BB .7
D N/A D .6
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 12.8
Not Rated (h) Not Rated (h) Not Rated (h) 6.5
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Secured by letters of credit.
(c) Wholly held by the custodian in a segregated account as collateral
for a delayed delivery security.
(d) Non-income producing security; interest payments in default.
(e) Purchased on a delayed delivery basis.
(f) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(g) Fitch currently provides creditworthiness information for a limited
number of investments.
(h) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $284,380,330)-see statement..................................... $288,491,120
Cash.................................................................... 2,241,348
Receivable for investment securities sold............................... 28,356,903
Interest receivable..................................................... 3,854,319
Prepaid expenses........................................................ 10,245
______
322,953,935
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 171,251
Payable for investment securities purchased............................. 9,321,471
Accrued expenses........................................................ 53,868 9,546,590
______ _____
NET ASSETS.................................................................. $313,407,345
=======
REPRESENTED BY:
Paid-in capital......................................................... $303,912,838
Accumulated undistributed investment income-net......................... 84,505
Accumulated undistributed net realized gain on investments.............. 5,299,212
Accumulated net unrealized appreciation on investments-Note 3(b)........ 4,110,790
______
NET ASSETS at value applicable to 23,864,362 outstanding shares of
Common Stock, equivalent to $13.13 per share
(500 million shares of $.001 par value authorized)...................... $313,407,345
=======
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 9,473,561
EXPENSES:
Management fee-Note 2(a).............................................. $ 970,741
Shareholder servicing costs-Note 2(b)................................. 153,056
Professional fees..................................................... 23,988
Custodian fees........................................................ 23,745
Directors' fees and expenses-Note 2(c)................................ 20,307
Prospectus and shareholders' reports.................................. 14,541
Registration fees..................................................... 8,437
Miscellaneous......................................................... 12,050
_____
TOTAL EXPENSES.................................................... 1,226,865
_____
INVESTMENT INCOME-NET............................................. 8,246,696
_____
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3(a).............................. $6,442,970
Net realized (loss) on financial futures-Note 3(a)...................... (314,687)
_____
NET REALIZED GAIN..................................................... 6,128,283
Net unrealized (depreciation) on investments............................ (6,269,024)
_____
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (140,741)
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 8,105,955
=======
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996
1995 (UNAUDITED)
_______ _________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 17,903,962 $ 8,246,696
Net realized gain on investments.................................. 2,920,516 6,128,283
Net unrealized appreciation (depreciation) on investments for the period 7,663,008 (6,269,024)
_______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 28,487,486 8,105,955
_______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (17,856,933) (8,209,220)
Net realized gain on investments.................................. (2,098,798) (3,748,977)
_______ ______
TOTAL DIVIDENDS................................................. (19,955,731) (11,958,197)
_______ ______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 136,023,008 97,473,944
Dividends reinvested.............................................. 13,460,614 8,456,686
Cost of shares redeemed........................................... (187,243,378) (106,506,516)
_______ ______
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........ (37,759,756) (575,886)
_______ ______
TOTAL (DECREASE) IN NET ASSETS.............................. (29,228,001) (4,428,128)
NET ASSETS:
Beginning of period............................................... 347,063,474 317,835,473
_______ ______
End of period (including undistributed investment income-net:
$47,029 in 1995 and $84,505 in 1996)............................ $ 317,835,473 $ 313,407,345
======= =======
SHARES SHARES
_______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 10,429,450 7,234,023
Shares issued for dividends reinvested............................ 1,047,791 623,558
Shares redeemed................................................... (14,495,652) (7,882,505)
_______ ______
NET (DECREASE) IN SHARES OUTSTANDING............................ (3,018,411) (24,924)
======= =======
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED SEPTEMBER 30, MARCH 31, 1996
__________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
----- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.43 $12.89 $13.33 $14.36 $12.90 $13.30
----- ---- ---- ---- ---- ------
INVESTMENT OPERATIONS:
Investment income-net................. .90 .85 .82 .78 .73 .34
Net realized and unrealized gain (loss)
on investments...................... .47 .44 1.11 (1.40) .48 (.01)
----- ---- ---- ---- ---- ------
TOTAL FROM INVESTMENT OPERATIONS.... 1.37 1.29 1.93 (.62) 1.21 .33
----- ---- ---- ---- ---- ------
DISTRIBUTIONS:
Dividends from investment income-net.. (.91) (.85) (.82) (.78) (.73) (.34)
Dividends from net realized gain
on investments...................... -- -- (.08) (.06) (.08) (.16)
----- ---- ---- ---- ---- ------
TOTAL DISTRIBUTIONS................. (.91) (.85) (.90) (.84) (.81) (.50)
----- ---- ---- ---- ---- ------
Net asset value, end of period........ $12.89 $13.33 $14.36 $12.90 $13.30 $13.13
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 11.35% 10.31% 15.04% (4.43%) 9.82% 4.79%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .21% .37% .64% .76% .76% .76%(1)
Ratio of net investment income to average
net assets.......................... 7.06% 6.47% 5.96% 5.72% 5.66% 5.08%(1)
Decrease reflected in the above expense ratios
due to undertakings by the Manager.. .62% .39% .11% -- -- --
Portfolio Turnover Rate............... 2.81% 23.97% 30.20% 29.74% 83.31% 79.99%(2)
Net Assets, end of period (000's Omitted) $271,656 $374,198 $456,429 $347,063 $317,835 $313,407
(1) Annualized.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
General California Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company. The Fund's investment objective is to
maximize current income exempt from Federal and State of California personal
income taxes to the extent consistent with the preservation of capital. The
Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Directors. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
provisions of the Internal Revenue Code, and to make distributions of income
and net realized capital gain sufficient to relieve it from substantially all
Federal income and excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund. The most stringent state expense limitation
applicable to the Fund presently requires reimbursement of expenses in any
full fiscal year that such expenses (exclusive of certain expenses as
described above) exceed 2-1/2% of the first $30 million, 2% of the next $70
million and 1-1/2% of the excess over $100 million of the average value of the
Fund's net assets in accordance with California "blue sky" regulations. There
was no expense reimbursement for the six months ended March 31, 1996.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the six months ended March 31, 1996, the Fund was charged an aggregate
of $73,916 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $34,151 for the period from
December 1, 1995 through March 31, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, for the six months ended March 31, 1996
amounted to $238,931,373 and $299,158,456, respectively.
The Fund may invest in trading financial futures contracts in order to
gain exposure to or protect against changes in the market. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments. Investments in financial futures require the Fund to
"mark to market" on a daily basis, which reflects the change in the market
value of the contract at the close of each day's trading. Accordingly,
variation margin payments are received or made to reflect daily unrealized
gains or losses. When the contracts are closed, the Fund recognizes a
realized gain or loss. These investments
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
require initial margin deposits with a custodian, which consist of cash or
cash equivalents, up to approximately 10% of the contract amount. The amount
of these deposits is determined by the exchange of Board of Trade on which
the contract is traded and is subject to change. At March 31, 1996, there
were no financial futures contracts outstanding.
(B) At March 31, 1996, accumulated net unrealized appreciation on
investments was $4,110,790, consisting of $9,035,495 gross unrealized
appreciation and $4,924,705 gross unrealized depreciation.
At March 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
General California Municipal Bond Fund, Inc., including the statement of
investments, as of March 31, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended March 31, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
September 30, 1995 and financial highlights for the five years in the period
ended September 30, 1995 and in our report dated November 1, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
May 2, 1996
[Dreyfus lion "d" logo]
GENERAL CALIFORNIA
MUNICIPAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 131SA963
[Dreyfus logo]
General California
Municipal
Bond Fund, Inc.
Semi-Annual
Report
March 31, 1996
