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 six-month reporting period ended
March 31, 1997. Your Fund produced a total return of 2.03% including bond
price changes and interest income.*
THE ECONOMY
Reacting to an economy which reflects strong growth, low unemployment
and stable prices, the Federal Open Market Committee (FOMC) of the Federal
Reserve Board (the "Fed") raised interest rates at the end of March for the
first time in over two years. Concerned that persistently strong demand would
increase the risk of a resurgence of inflation, the FOMC, which is the
policy-making arm of the Fed, voted to lift the Federal Funds rate by a
quarter of a percentage point to 5.5%. (The Federal Funds rate is the rate
that banks charge each other for overnight loans.) The move to raise interest
rates had been much discussed since early last year, when the Fed first
became concerned about the inflationary potential of rising wage demands
resulting from the strong rate of growth in new jobs. Yet over that time,
there has been little evidence of inflation despite robust job growth and an
unemployment rate of less than 5.5%, a level that in the 1970s and 1980s
contributed to an escalation in wages and prices. Instead, prices on
virtually all sectors of the economy have remained quiescent. The Consumer
Price Index has risen a modest 2.8% over the past 12 months, while increases
in producer prices have been equally modest and, of late, many prices have
actually fallen.
Not surprisingly, the consumer confidence index of the Conference
Board, a private research group, remains near all-time high territory. A
closely followed component measures consumer sentiment about the job market.
The percentage of people reporting that jobs are plentiful has recently
reached an eight-year high, while the portion reporting that jobs are hard to
get was the lowest ever recorded. That positive attitude regarding job
security has been cited by Federal Reserve Board Chairman Greenspan as a
possible harbinger of higher wage pressures, which could result in an
acceleration in the rate of inflation.
Looking at the economy more generally, factory production _
particularly the durable goods sector _ has picked up lately after slumping
over the last two months of last year. Also suggesting renewed vigor in the
economy was the brisk pickup in retail sales from their relatively sluggish
pace over the last quarter of 1996. As a corollary to the surge in retail
sales, late payments on credit card debt have risen to the highest proportion
of accounts since 1980, the year the American Bankers Association first
monitored credit card delinquencies.
Effective monetary policy is formulated less on how conditions are
today than on how things may be in the future; hence the Fed's preemptive
move to tighten credit without significant direct evidence that inflation is
already on the rise is understandable. In recent testimony to Congress made
before the Fed's decision to raise the Federal Funds rate, Fed Chairman Alan
Greenspan said that the question "is not so much . . . where prices are or
have been, but rather what the state of the economy will be later this year
and into 1998 when any actions we may or may not have taken would become
effective." We continue to remain alert to any economic developments that
might indicate a further tightening by the Fed.
MARKET ENVIRONMENT
The municipal bond market endured a significant amount of volatility
during the past six months. Similar to today's market environment, last fall
interest rates were on the rise following a strong downward move in prices
last summer. The financial markets were bracing for a possible tightening of
interest rates by the Federal Reserve Board. However, the difference between
then and now is that the economy slowed in the second half of 1996 and the
Fed did not raise rates. Today, the story is different and the bears are back
in control: the economy is clearly much stronger than it appeared at the
beginning of the year. Six months ago there was considerable debate over
whether or not there would be a tightening of
short-term interest rates. The markets received the answer last month when
the Fed moved. Since then yields have continued to ratchet higher, implying
to us that at least one more rate hike is in the cards.
The political climate in Washington has been a further hindrance.
Investors had been counting on a bipartisan compromise on a balanced budget
agreement and a possible cut in the capital gains tax rate; today, the odds
of either happening in the near future seem uncertain. It looks as though
this year's budget wrangling could be a repeat performance of prior years.
From the financial markets' perspective, it appears that the only positive
influence from Washington has been the Administration's strong support for
the dollar. The strong relative position of the U.S. currency has engendered
significant foreign buying of U.S. Treasury securities. Without this foreign
support rates might be at higher levels.
Because of a relatively good technical position, municipal securities
have not lost as much in value this year as have taxable bonds. The supply of
new tax-exempt bond issues coming to market has not been overly burdensome,
while investor demand (primarily the casualty insurers ) has been strong
enough to absorb most of the available supply. Individual interest has been
limited; however, we believe that yields are now approaching levels which
should prove attractive to investors.
PORTFOLIO OVERVIEW
In the last half of 1996, amid signs that the economy was not as strong
as originally believed, the Fund's duration was lengthened. At the same time,
we continued to purchase securities which afforded a relatively high
tax-exempt yield.
During the first quarter of 1997, management has been pursuing a
defensive investment strategy by actively shortening duration. In view of the
Federal Reserve Board's decision last month to raise short-term interest
rates, we feel our decision was a prudent one. As of the end of the reporting
period, cash reserves in the Fund were being held at 10% (a relatively high
percentage) of assets. This move has resulted in a modest reduction in
dividend due to the fact that the yield on cash reserves is less than the
yield on the securities sold.
We don't believe that the current condition of rising interest rates
will persist indefinitely, and think that attractive buying opportunities
within the State of California will present themselves in the not too distant
future. In general, the State and its municipalities represent sound credit
fundamentals. California's fiscal stability has been restored, and we are
encouraged by its improving economy, declining unemployment rate, and modest
long-term debt position. However, we are carefully monitoring the State's
ability to deal with the various restrictions imposed by the voter
initiatives approved last Fall.
The axiom of capital preservation is foremost in our decision-making at
present. We do see the risk of still higher interest rates. After a period of
Fed restraint, we believe that the economy can continue to grow at a moderate
rate without significant risk of higher inflation. For this reason we feel
good about the prospects for the bond markets, and continue to recommend that
investors maintain a long-term perspective.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
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GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments_93.5% Amount Value
_______ _______
<S> <C> <C>
California_93.3%
ABAG Finance Corp., COP (ABAG XXIV) 6.90%, 4/1/2012......................... $ 3,500,000 $ 3,659,670
Alameda County, COP (Various Financing Projects)
6%, 9/1/2021 (Insured; MBIA, LOC; The Fuji Bank) (a)...................... 5,000,000 5,034,050
Allan Hancock Joint Community College District, COP, Refunding
7.625%, 10/1/2005......................................................... 1,055,000 1,146,838
Anaheim Public Financing Authority, Tax Allocation Revenue
6.45%, 12/28/2018 (Insured; MBIA)......................................... 6,000,000 6,314,220
Beaumont Unified School District, COP (Capital Improvement Project)
7.70%, 1/1/2021........................................................... 1,100,000 1,155,616
California Educational Facilities Authority, Revenue
(Chapman College) 7.50%, 1/1/2018......................................... 1,760,000 1,948,355
California Health Facilities Financing Authority, Revenue:
(Downey Community Hospital) 5.75%, 5/15/2015.............................. 3,000,000 2,883,990
(HELP Group)
7%, 8/1/2021 (Insured; California Health Facilities Construction Loan Program) 1,800,000 1,925,730
(Pomona Valley Hospital Medical Center) 7.375%, 1/1/2014.................. 750,000 797,572
(Walden House) 6.85%, 3/1/2022............................................ 3,225,000 3,434,367
California Housing Finance Agency:
Home Mortgage Revenue:
6.375%, 8/1/2027........................................................ 2,250,000 2,286,967
7.50%, 8/1/2029......................................................... 1,185,000 1,232,886
7.60%, 8/1/2030......................................................... 1,655,000 1,739,885
7.70%, 8/1/2030......................................................... 765,000 802,080
Multi-Family Housing Revenue:
6.15%, 8/1/2022 (Insured; AMBAC)........................................ 3,850,000 3,899,780
6.05%, 8/1/2038 (Insured; MBIA)......................................... 2,500,000 2,469,800
California Pollution Control Financing Authority:
Exempt Facilities Revenue (Mobil Oil Corp. Project)
5.50%, 12/1/2029 (Guaranteed; Mobil Corp.).............................. 2,000,000 1,847,940
PCR, Refunding (San Diego Gas and Electric) 5.90%, 6/1/2014 (Insured; MBIA) 9,000,000 9,352,080
California Statewide Communities Development Authority, COP,
Health Facilities Revenue, Refunding (Barton Memorial Hospital)
6.50%, 12/1/2009 (LOC; Banque Nationale De Paris) (a)..................... 1,600,000 1,692,592
Chico Public Financing Authority, Revenue
(Chico Municipal Airport and Central Chico Redevelopment Project)
7.40%, 4/1/2021 (Prerefunded 4/1/2000) (b)................................ 2,410,000 2,645,216
Commerce Joint Powers Financing Authority, Revenue, Multiple Project Loans
8%, 3/1/2022.............................................................. 2,420,000 2,564,426
Compton, COP, Refunding (Civic Center Project)
7.50%, 8/1/2005 (LOC; Mitsui Trust and Banking) (a)....................... 2,680,000 2,853,450
Contra Costa County, Mortgage Revenue, Refunding (Cedar Pointe)
6.15%, 9/1/2025........................................................... 3,000,000 3,016,830
Del Mar Race Track Authority, Revenue, Refunding 6.20%, 8/15/2011........... 2,000,000 2,018,500
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
California (continued)
Dry Creek Joint School District, Special Tax
(Community Facilities District Number 1)
7.25%, 9/1/2011 (Insured; FSA, Prerefunded 9/1/2000) (b).................. $ 1,000,000 $ 1,109,210
Duarte, COP (City of Hope Medical Center):
6%, 4/1/2008.............................................................. 3,570,000 3,607,699
6.25%, 4/1/2023........................................................... 7,000,000 7,032,760
Folsom Public Financing Authority, Local Agency Revenue 7.70%, 10/1/2020.... 1,200,000 1,235,220
Fontana Public Financing Authority, Tax Allocation Revenue, Refunding
(North Fontana Redevelopment Project) 7.25%, 9/1/2020..................... 2,000,000 2,027,880
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue 6%, 1/1/2034 3,000,000 2,890,080
Fresno Unified School District, COP (Project Phase VI) 7.20%, 5/1/2011...... 4,250,000 4,536,195
Hollister Redevelopment Agency, Tax Allocation
(Hollister Community Development Project) 7.55%, 10/1/2013................ 1,000,000 1,055,250
Inglewood, HR (Daniel Freeman Hospital) 6.75%, 5/1/2013..................... 2,000,000 2,116,600
Loma Linda, HR (Loma Linda University Medical Center Project)
6%, 12/1/2023............................................................. 5,000,000 4,924,350
Madera County, COP (Valley Childrens Hospital):
6.25%, 3/15/2007 (Insured; MBIA) ......................................... 2,545,000 2,776,391
6.50%, 3/15/2008 (Insured; MBIA) ......................................... 3,165,000 3,517,866
M-S-R Public Power Agency, Power Revenue, Refunding
(San Juan Project) 5.90%, 7/1/2020........................................ 7,000,000 6,830,740
Newhall Elementary and Castaic Union School Districts, COP
(School Improvement Project) 7.70%, 3/1/2011.............................. 2,695,000 2,837,754
Northern California Power Agency, Public Power Revenue
(Hydroelectric Project Number 1):
7.15%, 7/1/2024......................................................... 5,345,000 5,576,973
Refunding 6.30%, 7/1/2018 (Insured; MBIA)............................... 20,400,000 21,986,712
Orange County:
COP (Juvenile Justice Center) 7.625%, 6/1/2019 (Prerefunded 6/1/1999) (b). 2,500,000 2,715,325
Special Tax (Community Facilities District Number 87-3)
7.80%, 8/15/2015 (Prerefunded 8/15/2000) (b)............................ 1,500,000 1,675,425
Orange County Recovery, COP, Refunding 6%, 7/1/2026 (Insured; MBIA)......... 5,720,000 5,730,982
Otay Municipal Water District (Improvement District Number 27) 6.70%, 9/1/2022 2,000,000 2,049,660
Palm Desert (Assessment District Number 94-1) 7.625%, 9/2/2019.............. 1,855,000 1,897,758
Port Oakland:
Port Revenue 5.50%, 11/1/2017 (Insured; MBIA)............................. 3,800,000 3,583,324
Special Facilities Revenue (Mitsui O.S.K. Lines Limited)
6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (a)..................... 3,000,000 3,134,580
Richmond Joint Powers Financing Authority, Revenue
7.25%, 5/15/2013 (Prerefunded 5/15/2000) (b).............................. 2,000,000 2,191,060
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
California (continued)
Sacramento County, Special Tax (Community Facilities District Number 1)
8.25%, 12/1/2020.......................................................... $ 5,610,000 $ 5,967,413
Sacramento Municipal Utility District, Electric Revenue, Refunding 6%, 2/1/2017 3,385,000 3,384,966
San Bernardino, Health Care Systems Revenue (Sisters of Charity)
7%, 7/1/2021 (Prerefunded 7/1/2001) (b)................................... 2,000,000 2,211,660
San Francisco City and County Airports Commission, International Airport
Revenue:
5.80%, 5/1/2021 (Insured; FGIC)........................................... 7,000,000 6,792,100
5.70%, 5/1/2026 (Insured; MBIA)........................................... 7,750,000 7,446,898
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
(Junior Lien) Zero Coupon, 1/1/2010....................................... 5,000,000 2,123,700
San Marcos Public Facilities Authority, Revenue, Refunding
(Public Improvement-Civic Center) 6.20%, 8/1/2022......................... 3,000,000 2,967,570
San Marcos Unified School District
(School Facilities Improvement District Number 1)
5.80%, 11/1/2014 (Insured; AMBAC)......................................... 3,540,000 3,576,993
Santa Cruz County, COP, Refunding
(Capital Facilities Project) 5.60%, 9/1/2023 (Insured; MBIA).............. 3,850,000 3,723,643
Santa Cruz County Redevelopment Agency, Tax Allocation
(Subordinated-Live Oak/Soquel Community Improvement) 5.625%, 9/1/2022..... 3,335,000 3,170,685
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (c) 1,739,784 295,763
Southern California Home Finance Authority, SFMR
6.90%, 10/1/2024 (Collateralized: FNMA and GNMA).......................... 1,635,000 1,693,713
Southern California Public Power Authority, Power Project Revenue
(Multiple Projects) 6.75%, 7/1/2011....................................... 3,750,000 4,250,325
Tehachapi Unified School District, COP (Tompkins Elementary School Project)
7.80%, 2/1/2021 (Prerefunded 2/1/2001) (b)................................ 1,000,000 1,116,860
Tracy Area Public Facilities Financing Agency, Special Tax, Refunding
(Community Facilities District Number 87-1) 5.875%, 10/1/2013 (Insured; MBIA) 7,000,000 7,069,930
Turlock, COP, Health Facilities Revenue, Refunding
(Emanuel Medical Center, Inc.) 5.75%, 10/15/2023.......................... 6,000,000 5,645,280
University of California, HR (Davis Medical Center)
5.75%, 7/1/2013 (Insured; AMBAC).......................................... 5,560,000 5,593,749
Valley Health System, HR, Refunding (Improvement Project) 6.50%, 5/15/2015.. 7,250,000 7,323,588
West Covina Redevelopment Agency, Special Tax, Refunding
(Community Facilities District_Fashion Plaza):
6%, 9/1/2017............................................................ 6,000,000 6,017,220
6%, 9/1/2022............................................................ 8,325,000 8,297,611
Yolo County Housing Authority, Mortgage Revenue (Walnut Park Apartments)
7.20%, 8/1/2033 (Insured; FHA)............................................ 4,150,000 4,328,699
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
U. S. Related_.2%
Puerto Rico Electric Power Authority, Power Revenue 7.125%, 7/1/2014........ $ 540,000 $ 576,266
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $251,323,872)................... $257,337,266
=======
Short-Term Municipal Investments_6.5%
California_6.3%
California Pollution Control Financing Authority:
PCR, Refunding, VRDN (Pacific Gas and Electric)
3.60% (LOC; Bank of America National Trust & Saving Association) (a,d).. $ 10,900,000 $ 10,900,000
SWDR, VRDN (Shell Martinez Refining)
3.55% (Guaranteed; Shell Oil Co.) (d)................................... 4,300,000 4,300,000
Chula Vista, IDR, Refunding, VRDN (San Diego Gas and Electric) 4% (d)....... 1,300,000 1,300,000
Orange County Various Sanitation Districts, COP, Refunding, VRDN
(Numbers 1-7 & 11) 3.70% (Insured; AMBAC) (d)............................. 1,000,000 1,000,000
U.S. Related_.2%
Puerto Rico Commonwealth, Government Development Bank, VRDN
3.10%, (LOC; Credit Suisse) (a,d)......................................... 500,000 500,000
_______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $18,000,000)................... $ 18,000,000
=======
TOTAL INVESTMENTS_100.0% (cost $269,323,872)................................ $275,337,266
=======
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GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration 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
</TABLE>
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<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
____ ________ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 41.1%
AA Aa AA 4.3
A A A 21.1
BBB Baa BBB 17.8
BB Ba BB .7
D N/A D .1
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 6.6
Not Rated (f) Not Rated (f) Not Rated (f) 8.3
____
100.0%
====
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Notes to Statement of Investments:
(a) Secured by letters of credit.
(b) 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.
(c) Non-income producing security; interest payments in default.
(d) 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.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
(g) At March 31, 1997, 27.6% of the Fund's net assets are insured by
MBIA.
SEE NOTES TO FINANCIAL STATEMENTS.
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GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1997 (UNAUDITED)
Cost Value
_______ _______
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $269,323,872 $275,337,266
Cash....................................... 704,903
Receivable for investment securities sold.. 6,510,356
Interest receivable........................ 4,370,468
Prepaid expenses........................... 8,243
_______
286,931,236
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 158,488
Accrued expenses........................... 40,541
_______
199,029
_______
NET ASSETS.................................................................. $286,732,207
=======
REPRESENTED BY: Paid-in capital............................ $279,329,766
Accumulated undistributed investment income_net 278,812
Accumulated net realized gain (loss) on investments 1,110,235
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4(b)................ 6,013,394
_______
NET ASSETS.................................................................. $286,732,207
=======
SHARES OUTSTANDING
(500 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED)............. 21,997,317
NET ASSET VALUE, offering and redemption price per share_Note 3(d).......... $13.03
=======
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $ 8,773,963
EXPENSES: Management fee_Note 3(a)................... $888,968
Shareholder servicing costs_Note 3(b)...... 140,239
Directors' fees and expenses_Note 3(c)..... 22,028
Professional fees.......................... 18,958
Custodian fees............................. 16,636
Registration fees.......................... 8,873
Prospectus and shareholders' reports....... 5,456
Miscellaneous.............................. 10,246
_____
Total Expenses......................... 1,111,404
______
INVESTMENT INCOME_NET....................................................... 7,662,559
______
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $908,531
Net realized gain (loss) on financial futures 247,117
_____
Net Realized Gain (Loss)............... 1,155,648
Net unrealized appreciation (depreciation) on investments (2,645,379)
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (1,489,731)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 6,172,828
======
SEE NOTES TO FINANCIAL STATEMENTS.
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GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996
__________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income_net.......................................... $ 7,662,559 $ 16,365,689
Net realized gain (loss) on investments........................ 1,155,648 6,172,251
Net unrealized appreciation (depreciation) on investments...... (2,645,379) (1,721,041)
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations 6,172,828 20,816,899
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net.......................................... (7,810,746) (15,985,719)
Net realized gain on investments............................... (5,388,593) (3,748,977)
_______ _______
Total Dividends.............................................. (13,199,339) (19,734,696)
_______ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.................................. 34,362,571 159,413,680
Dividends reinvested........................................... 9,424,642 13,771,940
Cost of shares redeemed........................................ (46,826,227) (195,305,564)
_______ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions (3,039,014) (22,119,944)
_______ _______
Total Increase (Decrease) in Net Assets.................... (10,065,525) (21,037,741)
NET ASSETS:
Beginning of Period............................................ 296,797,732 317,835,473
_______ _______
End of Period.................................................. $286,732,207 $296,797,732
======= =======
UNDISTRIBUTED INVESTMENT INCOME_NET.............................. $ 278,812 $ 426,999
_______ _______
Shares Shares
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................... 2,582,102 11,970,554
Shares issued for dividends reinvested......................... 708,171 1,027,566
Shares redeemed................................................ (3,518,373) (14,661,989)
_______ _______
Net Increase (Decrease) in Shares Outstanding................ (228,100) (1,663,869)
======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
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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
March 31, 1997 Year Ended September 30,
____________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
_____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.35 $13.30 $12.90 $14.36 $13.33 $12.89
____ ____ ____ ____ ____ ____
Investment Operations:
Investment income_net................. .34 .70 .73 .78 .82 .85
Net realized and unrealized gain (loss)
on investments...................... (.07) .19 .48 (1.40) 1.11 .44
____ ____ ____ ____ ____ ____
Total from Investment Operations...... .27 .89 1.21 (.62) 1.93 1.29
____ ____ ____ ____ ____ ____
Distributions:
Dividends from investment income_net.. (.35) (.68) (.73) (.78) (.82) (.85)
Dividends from net realized gain
on investments...................... (.24) (.16) (.08) (.06) (.08) _
____ ____ ____ ____ ____ ____
Total Distributions................... (.59) (.84) (.81) (.84) (.90) (.85)
____ ____ ____ ____ ____ ____
Net asset value, end of period........ $13.03 $13.35 $13.30 $12.90 $14.36 $13.33
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 4.07%(1) 6.85% 9.82% (4.43%) 15.04% 10.31%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .75%(1) .76% .76% .76% .64% .37%
Ratio of net investment income
to average net assets............... 5.17%(1) 5.25% 5.66% 5.72% 5.96% 6.47%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. _ _ _ _ .11% .39%
Portfolio Turnover Rate............... 50.98%(2) 164.93% 83.31% 29.74% 30.20% 23.97%
Net Assets, end of period (000's Omitted) $286,732 $296,798 $317,835 $347,063 $456,429 $374,198
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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. is the distributor of the Fund's shares, which are sold to the
public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (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 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.
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended March
31, 1997, the Fund did not borrow under the Facility.
NOTE 3_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management 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.
(B) Under the 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 period ended March 31, 1997, the Fund was charged an aggregate of
$78,234 pursuant to the Shareholder Services Plan.
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 $48,590 during the period ended March 31, 1997.
(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 $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(D) Effective November 4, 1996, a .10% redemption fee is charged on
certain redemptions of Fund shares (including redemptions through the use of
the Fund Exchanges service) where the shares being redeemed were issued
subsequent to a specified effective date and the redemption or exchange
occurs less than fifteen days following the date of issuance. During the
period ended March 31, 1997, redemption fees amounted to $4,125.
NOTE 4_SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1997
amounted to $147,271,875 and $181,567,535, respectively.
The Fund may invest in 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. Typically, 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 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 or Board
of Trade on which the contract is traded and is subject to change. At March
31, 1997, there were no financial futures contracts outstanding.
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) At March 31, 1997, accumulated net unrealized appreciation on
investments was $6,013,394, consisting of $8,425,175 gross
unrealized appreciation and $2,411,781 gross unrealized depreciation.
At March 31, 1997, 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).
[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 131SA973
[Dreyfus logo]
General California
Municipal
Bond Fund, Inc.
Semi-Annual
Report
March 31, 1997
