LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus
Connecticut Municipal Money Market Fund, Inc. For the fiscal year ended
September 30, 1994, the yield provided by the Fund was 2.30%. The effective
yield was 2.33% after taking into account the effect of compounding.* Income
dividends of approximately $.02 per share paid during the period were exempt
from Federal and State of Connecticut personal income taxes.**
Since our last reporting, the Federal Reserve Board has taken action
three separate times toward a more restrictive stance. In total, since the
beginning of 1994, the Federal Funds rate has been raised 175 basis points
(from 3% to 4.75%). With each of these movements it has become increasingly
obvious that Federal Reserve policy directives have been put into place to
stave off potential inflationary concerns. Recent economic indicators have
been given even closer than normal scrutiny as market participants attempt to
discern if and when the next Fed tightening will occur. There is still
uncertainty as to when the Federal Reserve Board will take further action to
increase short-term rates. However, if economic data shows continued
strength, then it is quite likely that there will be another tightening by
the Federal Reserve Board before year end.
While actions taken by the Fed have caused an overall increase in
short-term rates, yields available in the tax exempt money markets were as
much affected by the supply and demand conditions in our marketplace.
Technical factors (i.e., supply/demand) caused volatility in the short-term
market in late June and early July. Approximately $7.5 billion in outstanding
securities matured in late June, placing strong downward pressure on rates as
the supply of short-term paper decreased substantially. However, in early to
mid-July, approximately $12 billion in new securities were issued. As a
result, yields on these issues trended higher in order to attract additional
buyers and to help absorb the additional supply. Often during these times of
temporary market weakness, we attempt to add to our commitments in the
nine-month to one-year range to capture these attractive rates. This, coupled
with the Federal Reserve Board's repeated actions to raise the Federal Funds
target, has provided attractive buying opportunities over the past six-month
period. As a result, the average maturity of your portfolio has increased
from 61 days to 66 days since late March. Any purchases made to enhance the
yield in your Fund continue to be made in accordance with our strict credit
quality guidelines.
We have structured your portfolio to enable the Fund to take advantage of
any further increase in short-term rates. In addition, the Fund is well
positioned to benefit from the temporary rise in rates we traditionally
witness at year end. To the extent that Connecticut-exempt paper becomes
available, we will selectively commit to those issues that we think will
enhance your Fund's return.
We have included a current Statement of Investments and recent financial
statements for your review and look forward to serving your investment needs
in the future.
Very truly yours,
(Richard J. Moynihan signature logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 13, 1994
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
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<CAPTION>
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
-------------- -------------
<S> <C> <C>
CONNECTICUT-96.1%
Town of Bethel, BAN 3.72%, 7/13/95.......................................... $ 5,340,000 $ 5,340,794
Town of Cheshire, BAN 4.25%, 8/10/95........................................ 3,000,000 3,009,906
State of Connecticut:
GO, Economic Recovery Notes, VRDN 2.70%, Series B
(SBPA: Canadian Imperial Bank of Commerce, Industrial Bank of Japan and
National Westminster Bank) (a)........................................ 22,000,000 22,000,000
Revenue 5.20%, Series A, 3/15/95........................................ 9,775,000 9,864,722
Special Tax Obligation Revenue, VRDN (Transportation Infrastructure-1)
3.75% (LOC; Industrial Bank of Japan) (a,b)........................... 12,000,000 12,000,000
Connecticut Development Authority, VRDN:
Health Care Revenue (Corp. for Independent Living Project)
3.60% (LOC; Credit Commerciale de France) (a,b)....................... 12,000,000 12,000,000
Industrial Development (Martin-Brower Co. Project)
3.30% (LOC; Chemical Bank) (a,b)...................................... 1,130,000 1,130,000
PCR, Refunding:
(Connecticut Power and Light Co. Project):
3.70%, Series A (LOC; Deutshe Bank) (a,b)......................... 23,000,000 23,000,000
3.85%, Series B (LOC; Union Bank of Switzerland) (a,b)............ 10,000,000 10,000,000
(Western Massachusetts Electric Co.)
3.60%, Series A (LOC; Union Bank of Switzerland) (a,b)............ 11,800,000 11,800,000
Solid Waste Revenue:
(Exeter Energy Project) 3.75%, Series A (LOC; Sanwa Bank) (a,b)....... 8,600,000 8,600,000
(Rand/Whitney Project) 3.35% (LOC; Chase Manhattan Bank) (a,b)........ 8,500,000 8,500,000
Connecticut Health and Educational Facilities Authority, Revenue, VRDN:
(Charlotte Hungerford Hospital) 3.55%, Series B (LOC; Mitsubishi Bank) (a,b) 800,000 800,000
(Kent School) 3.25%, Series A (LOC; Barclays Bank) (a,b)................ 6,400,000 6,400,000
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
CP 3.05%, Series B, 10/13/94............................................ 3,445,000 3,445,000
Revenue:
2.90%, Series H-2, 11/15/94........................................... 3,000,000 3,000,091
3.55%, Series G, Subseries G-1, 5/15/95............................... 10,000,000 10,000,000
3.65%, Series D, Subseries D-2, 5/15/95............................... 5,000,000 5,000,000
Connecticut Special Assessment Unemployment Compensation Advance Fund,
Revenue, VRDN (Connecticut Unemployment):
3.55%, Series B (LOC: Industrial Bank of Japan and Mitsubishi Bank) (a,b) 21,000,000 21,000,000
3.80%, Series C (Insured; FGIC) (a)................................... 12,000,000 12,000,000
City of Danbury, Notes 3.20%, 2/1/95........................................ 900,000 902,830
Town of East Lyme, BAN 4.25%, 8/3/95........................................ 3,000,000 3,007,966
Hartford Redevelopment Agency, MFMR, Refunding, VRDN (Underwood Tower
Project)
4% (Insured; FSA and SBPA; Sumitomo Trust and Banking) (a).............. 11,300,000 11,300,000
City of New Haven, BAN 3.90%, 10/26/94 (LOC; Fleet Bank) (b)................ 9,650,000 9,653,912
City of Stamford, BAN 3.06%, 3/22/95........................................ 5,000,000 5,000,213
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- -------------
CONNECTICUT (CONTINUED)
Town of Wethersfield, BAN 3.93%, 8/30/95.................................... $ 3,250,000 $ 3,250,833
U.S. RELATED-3.9%
Commonwealth of Puerto Rico, Government Development Bank, Refunding, VRDN
3.55% (LOC: Credit Suisse and Sumitomo Bank) (a,b)...................... 8,950,000 8,950,000
------------
TOTAL INVESTMENTS (cost $230,956,267)....................................... $230,956,267
============
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<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
BAN Bond Anticipation Notes LOC Letter of Credit
CP Commercial Paper MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreement
GO General Obligation VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ------- -------------------- -----------------
<S> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 77.3%
VMIG2/MIG2, P2 SP2, A2 4.9
Aaa/Aa, A (d) AAA/AA (d) 5.1
Not Rated (e) Not Rated (e) 12.7
-----
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) 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.
(b) Secured by letters of credit. At September 30, 1994, 55.3% of the
Fund's net assets are backed by letters of credit issued by domestic
banks and foreign banks.
(c) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(d) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(e) Securities which, while not rated by Moody's or Standard & Poor's
have been determined by the Fund's Board of Directors to be of comparable
quality to those rated securities in which the Fund may invest.
See notes to financial statements.
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<CAPTION>
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value-Note 1(a)........................... $230,956,267
Cash.................................................................... 10,071,859
Interest receivable..................................................... 1,151,988
Prepaid expenses........................................................ 4,466
------------
242,184,580
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $30,538
Accrued expenses and other liabilities.................................. 86,798 117,336
------- ------------
NET ASSETS ................................................................ $242,067,244
============
REPRESENTED BY:
Paid-in capital......................................................... $242,111,880
Accumulated net realized (loss) on investments.......................... (44,636)
------------
NET ASSETS at value applicable to 242,111,880 shares outstanding
(1 billion shares of $.001 par value Common Stock authorized)........... $242,067,244
============
NET ASSET VALUE, offering and redemption price per share
($242,067,244 / 242,111,880 shares)..................................... $1.00
=====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1994
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $6,309,500
EXPENSES:
Management fee-Note 2(a).............................................. $1,252,907
Shareholder servicing costs-Note 2(b)................................. 225,640
Auditing fees......................................................... 29,400
Custodian fees........................................................ 27,704
Prospectus and shareholders' reports.................................. 12,328
Legal fees............................................................ 9,481
Registration fees..................................................... 6,884
Directors' fees and expenses-Note 2(c)................................ 5,161
Miscellaneous......................................................... 22,036
----------
1,591,541
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 1,046,138
----------
TOTAL EXPENSES.................................................. 545,403
----------
INVESTMENT INCOME-NET........................................... 5,764,097
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 1(b).............................. $ 7,629
Net unrealized (depreciation) on investments............................ (1,990)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 5,639
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $5,769,736
==========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30,
------------------------------
1993 1994
--------------- ------------
OPERATIONS:
<S> <C> <C>
Investment income-net................................................... $ 5,132,851 $ 5,764,097
Net realized gain (loss) on investments................................. (52,103) 7,629
Net unrealized (depreciation) on investments for the year............... (6,424) (1,990)
--------------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 5,074,324 5,769,736
--------------- ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (5,132,851) (5,764,097)
Net realized gain on investments........................................ (36,943) --
--------------- ------------
TOTAL DIVIDENDS....................................................... (5,169,794) (5,764,097)
--------------- ------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 307,575,621 434,878,232
Dividends reinvested.................................................... 4,977,777 5,433,237
Cost of shares redeemed................................................. (307,149,788) (410,537,781)
--------------- ------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 5,403,610 29,773,688
--------------- ------------
TOTAL INCREASE IN NET ASSETS...................................... 5,308,140 29,779,327
NET ASSETS:
Beginning of year....................................................... 206,979,777 212,287,917
--------------- ------------
End of year............................................................. $ 212,287,917 $ 242,067,244
============= ============
See notes to financial statements.
</TABLE>
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET 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 year indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $1.0000 $1.0000 $1.0000 $1.0002 $ .9998
------- -------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net........................ .0131 .0470 .0323 .0230 .0230
Net realized and unrealized gain (loss) on investments -- -- .0002 (.0004) --
------- -------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .0131 .0470 .0325 .0226 .0230
------- -------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net......... (.0131) (.0470) (.0323) (.0228) (.0230)
Dividends from net realized gain on investments -- -- -- (.0002) --
------- -------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.0131) (.0470) (.0323) (.0230) (.0230)
------- -------- ------- ------- -------
Net asset value, end of year................. $1.0000 $1.0000 $1.0002 $.9998 $ .9998
======= ======= ======= ====== =======
TOTAL INVESTMENT RETURN 5.95%(2) 4.80% 3.28% 2.34% 2.33%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... -- -- .04% .12% .22%
Ratio of net investment income to average net assets 5.97%(2) 4.54% 3.22% 2.30% 2.30%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ 1.66%(2) .67% .63% .55% .42%
Net Assets, end of year (000's Omitted)...... $52,971 $187,301 $206,980 $212,288 $242,067
- -------------------
(1) From July 12, 1990 (commencement of operations) to September 30, 1990.
(2) Annualized.
See notes to financial statements.
</TABLE>
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date 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. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
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, 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.
The Fund has an unused capital loss carryover of approximately $34,300
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1994. The
carryover does not include net realized securities losses from November 1,
1993 through September 30, 1994 which are treated, for Federal income tax
purposes, as arising in fiscal 1995. If not applied, the carryover expires in
fiscal 2002.
At September 30, 1994, 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 CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 .50 of 1% of the average
daily value of the Fund's 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, interest on borrowings, brokerage and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager has
undertaken from October 1, 1993 through October 18, 1994, to reduce the
management fee paid by the Fund, to the extent that the Fund's aggregate
expenses (excluding certain expenses as described above) exceeded specified
annual percentages of the Fund's average daily net assets. The Manager has
currently undertaken from October 19, 1994 through December 31, 1994, or
until such time as the net assets of the Fund exceed $325 million, regardless
of whether they remain at that level, to waive receipt of the management fee
payable to it by the Fund in excess of an annual rate of .25 of 1% of the
Fund's average daily net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $1,046,138 for the year ended September 30,
1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
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 year ended
September 30, 1994, the Fund was charged an aggregate of $78,223 pursuant to
the Shareholder Services Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $1,000.
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Connecticut Municipal Money Market Fund, Inc., including the
statement of investments, as of September 30, 1994, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 1994 by correspondence with the custodian
. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Connecticut Municipal Money Market Fund, Inc., at
September 30, 1994, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
(Ernst & Young LLP Signature Logo)
New York, New York
November 7, 1994
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
September 30, 1994 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Connecticut residents, Connecticut
personal income taxes).
DREYFUS CONNECTICUT MUNICIPAL
MONEY MARKET FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 101AR949
Connecticut
Municipal
Money Market
Fund, Inc.
Annual Report
September 30, 1994
