DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for the Dreyfus Connecticut
Municipal Money Market Fund, Inc. for its 12-month reporting period ended
September 30, 1997. Your Fund produced a yield of 2.89% and, after taking
into account the effect of compounding, an effective yield of 2.93%.*
THE ECONOMY
Second quarter Gross Domestic Product (GDP) growth slowed to 3.3% from
4.9% in the first quarter, but summer and early fall statistics depict a
strong U.S. economy. The index of leading economic indicators rose solidly in
July, as did retail and construction spending, while industrial production
rose 0.7% in August. In fact, despite the UPS strike, recent production gains
have been vigorous enough to outstrip the torrid pace of capacity expansion.
Consumer confidence has also been climbing, reaching 127.6 in August and
128.6 in September, nearly equaling the 28-year high seen in June. While
there were some signs of softness in September's economic statistics, most
analysts view this as a pause,with the economy's fundamentals continuing to
point to brisk growth ahead.
Although economic strength has been a harbinger of higher inflation in
the past, thus far the current expansion has not had a similar effect.
Consumer prices - excluding food and energy costs, which fluctuate greatly -
have risen at a scant 2.2% so far this year, down from 2.6% last year.
However, a tightening labor market could foreshadow a turn toward higher
prices ahead. Financial market volatility continues to reflect investor
sensitivity to inflationary pressures, although the Federal Reserve Board's
Open Market Committee (FOMC) has not raised the Federal Funds rate since
March. On the positive side, the Asian currency crisis could blunt incipient
U.S. inflationary pressures by curtailing exports to the region and
exporters' earnings, thereby muting any potential rise in U.S. interest
rates. During the past few months, interest rates on money market securities
have remained virtually unchanged, although a drop in U.S. Treasury Bill
issuance has produced slightly lower yields on maturities of three and six
months.
MARKET ENVIRONMENT/PORTFOLIO
Each year, as summer approaches, the short-term municipal market
experiences volatility that is reflective of the changing patterns of supply
and demand conditions during the period. These market "technicals" require
adjustments to portfolio strategy in anticipation of conditions such as an
increase in available securities due to fund redemptions (April tax season),
a dearth of supply of high quality issues (end of June maturities), and
substantial new money market issuance (mid-July financings). Our portfolio
adjustments attempt to structure the Fund in such a way as to take advantage
of these changing conditions in an effort to enhance the Fund's return while
maintaining our commitment to high quality holdings.
In response to the changes we anticipated in both cash flow and supply
conditions, we began preparations in early June for extending the average
maturity of your Fund. Initially, the lack of supply of suitable
Connecticut-exempt paper restrained the maturity extension to some degree.
However, where possible, we committed to high quality issues that lengthened
the Fund's average maturity to the 50-day range. We expect to continue to
purchase notes selectively in the coming months in seeking to maximize your
Fund's current yield. As we endeavor to accomplish this, we will continue to
commit to those issues which meet our high quality investment guidelines and
which provide the appropriate level of liquidity for your Fund's needs.
Additionally, we will monitor any conditions which affect our marketplace and
adjust our investment policy where necessary to pursue competitive returns.
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
October 20, 1997
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
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DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1997
Principal
Tax Exempt Investments-100.0% Amount Value
------- -------
<S> <C> <C>
Connecticut-90.5%
State of Connecticut, VRDN,
Special Tax Obligation Revenue, (Transportation Infrastructure-1):
4.10% (LOC; Commerzbank) (a,b).......................................... $ 18,400,000 $ 18,400,000
4.05% (Liquidity; Bayerische Landesbank) (a)............................ 5,000,000 5,000,000
Connecticut Development Authority, VRDN:
Health Care Revenue (Corp. for Independent Living Project)
4% (LOC; Chase Manhattan Bank) (a,b).................................... 8,100,000 8,100,000
IDR (Blase and Bromley Realty Project) 3.90% (LOC; Fleet Bank) (a,b)...... 3,220,000 3,220,000
PCR:
(Connecticut Light and Power Co. Project):
4.05%, Series A (Insured; AMBAC and Liquidity; Societe Generale) (a).. 8,000,000 8,000,000
Refunding:
4%, Series A (LOC; Deutsche Bank) (a,b)............................... 22,500,000 22,500,000
4%, Series B (LOC; Union Bank of Switzerland) (a,b)................... 8,000,000 8,000,000
Refunding (Western Massachusetts Electric Co.)
3.90%, Series A (LOC; Union Bank of Switzerland) (a,b)................ 8,800,000 8,800,000
Connecticut Health and Educational Facilities Authority, Revenue:
CP (Yale University):
3.55%, Series S, 10/21/97 (Guaranteed by: Yale University).............. 2,000,000 2,000,000
3.55%, Series S, 11/10/97 (Guaranteed by: Yale University).............. 5,000,000 5,000,000
VRDN (Charlotte Hungerford Hospital)
3.75%, Series B (LOC; Bank of Boston) (a,b)............................. 900,000 900,000
Connecticut Housing Finance Authority, VRDN (Housing Mortgage Finance
Program)
4%, Series G (BPA; Morgan Guaranty Trust Co. and Insured; AMBAC) (a)...... 8,765,000 8,765,000
Connecticut Municipal Electric Energy Co-Op, Power Supply System Revenue, CP
3.65%, Series A, 12/11/97 (LOC; Fleet Bank) (b)........................... 3,600,000 3,600,000
Connecticut Special Assessment Unemployment Compensation Advance Fund,
Revenue
(Connecticut Unemployment)
3.90%, Series C, 7/1/98 (Insured and Liquidity; FGIC)..................... 15,000,000 15,000,000
Town of Manchester, GO Notes 4%, Lot B, 5/27/98............................. 8,000,000 8,015,535
Town of Meriden, BAN:
4%, 2/12/98............................................................... 8,950,000 8,959,568
4%, Lot B, 2/12/98........................................................ 5,625,000 5,633,573
Town of New Britain, VRDN 3.95% (LOC; Bank of Nova Scotia) (a,b)............ 7,900,000 7,900,000
City of New Haven, GO Notes 5%, 2/15/98 (Insured; FGIC)..................... 2,150,000 2,159,866
Stamford, Higher Education Revenue, BAN 4%, 4/1/98.......................... 4,725,000 4,732,983
Stamford Housing Authority, Revenue, VRDN (Morgan Street Project)
4.10% (LOC; Deutsche Bank) (a,b).......................................... 7,500,000 7,500,000
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997
Principal
Tax Exempt Investments (continued) Amount Value
------- -------
U.S. Related-9.5%
Commonwealth of Puerto Rico:
Government Development Bank, VRDN 3.70% (LOC; Credit Suisse) (a,b)........ $ 6,000,000 $ 6,000,000
Highway and Transportation Authority, Highway Revenue, VRDN
3.70%, Series X (LOC: Landesbank Hessen-Thuringen, Swiss Bank Corp. and
Union Bank of Switzerland) (a,b)........................................ 2,620,000 2,620,000
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control
Facilities Financing Authority, Higher Education Revenue, VRDN
(Ana G. Mendez University Systems Project)
3.85%, Series A (LOC; Banco Popular de Puerto Rico) (a,b)................. 8,400,000 8,400,000
-------
TOTAL INVESTMENTS (cost $179,206,525)....................................... $179,206,525
=======
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<S> <C> <S> <C>
Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
BAN Bond Anticipation Notes IDR Industrial Development Revenue
BPA Bond Purchase Agreement LOC Letter of Credit
CP Commercial Paper PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company VRDN Variable Rate Demand Notes
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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, A2 (c) 79.1%
Not Rated (d) Not Rated (d) 20.9
----
100.0%
====
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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, 1997, 58.3% of the
Fund's net assets are backed by letters of credit issued by domestic banks
and foreign banks, of which Commerzbank, Deutsche Bank and Union Bank of
Switzerland provided letters of credit to 10.1%, 16.5% and 10.7%,
respectively, of the Fund's net assets.
(c) P1 and A1 are the highest ratings assigned tax exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(d) Securities which, while not rated by 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.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997
Cost Value
-------- --------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $179,206,525 $179,206,525
Cash....................................... 1,842,543
Interest receivable........................ 1,013,107
Prepaid expenses........................... 6,583
--------
182,068,758
--------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 90,473
Accrued expenses........................... 47,823
--------
138,296
--------
NET ASSETS.................................................................. $181,930,462
========
REPRESENTED BY: Paid-in capital............................ $181,964,320
Accumulated net realized gain (loss) on investments
(33,858)
--------
NET ASSETS.................................................................. $181,930,462
========
SHARES OUTSTANDING
(1 billion shares of $.001 par value Common Stock authorized)............... 181,964,320
NET ASSET VALUE, offering and redemption price per share.................... $1.00
====
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1997
INVESTMENT INCOME
INCOME Interest Income................................ $6,675,216
EXPENSES: Management fee-Note 2(a)....................... $ 942,218
Shareholder servicing costs-Note 2(b).......... 269,058
Professional fees.............................. 41,031
Custodian fees................................. 19,437
Registration fees.............................. 10,143
Prospectus and shareholders' reports........... 9,939
Directors' fees and expenses-Note 2(c)......... 9,006
Miscellaneous.................................. 7,304
------
Total Expenses........................................... 1,308,136
Less-reduction in management fee due to
undertaking-Note 2(a)........................... (82,369)
------
Net Expenses........................................... 1,225,767
------
INVESTMENT INCOME-NET....................................................... 5,449,449
NET REALIZED GAIN (LOSS) ON INVESTMENTS-Note 1(b)........................... 44,698
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $5,494,147
=======
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
September 30, 1997 September 30, 1996
---------- ----------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 5,449,449 $ 6,207,980
Net realized gain (loss) on investments........................... 44,698 ----
-------- --------
Net Increase (Decrease) in Net Assets Resulting from Operations 5,494,147 6,207,980
-------- --------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (5,449,449) (6,207,980)
-------- --------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold..................................... 237,558,939 304,245,758
Dividends reinvested.............................................. 5,206,544 5,969,752
Cost of shares redeemed........................................... (250,907,105) (353,119,723)
-------- -------
Increase (Decrease) in Net Assets from Capital Stock Transactions (8,141,622) (42,904,213)
-------- --------
Total Increase (Decrease) in Net Assets..................... (8,096,924) (42,904,213)
NET ASSETS:
Beginning of Period............................................... 190,027,386 232,931,599
-------- --------
End of Period..................................................... $ 181,930,462 $ 190,027,386
======== ========
SEE NOTES TO FINANCIAL STATEMENTS.
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<CAPTION>
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 period indicated. This
information has been derived from the Fund's financial statements.
Year Ended September 30,
-------------------------------
PER SHARE DATA: 1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---- ---- ---- ---- ----
Investment Operations:
Investment income-net........................ .029 .029 .033 .023 .023
---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net......... (.029) (.029) (.033) (.023) (.023)
---- ---- ---- ---- ----
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 2.93% 2.94% 3.35% 2.33% 2.34%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .65% .63% .45% .22% .12%
Ratio of net investment income to average net assets 2.89% 2.90% 3.31% 2.30% 2.30%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ 04% .03% .18% .42% .55%
Net Assets, end of period (000's Omitted).... $181,930 $190,027 $232,932 $242,067 $212,288
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Connecticut Municipal Money Market 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 provide investors with as high a level of current income
exempt from Federal and State of Connecticut income taxes as is consistent
with the preservation of capital and the maintenance of liquidity. 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.
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. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.
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 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. Cost of investments represents amortized cost.
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 $34,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1997. If not
applied, the carryover expires in fiscal 2004.
At September 30, 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 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 with the Manager, the management
fee is computed at the annual rate of .50 of 1% of the value of the Fund's
average daily net assets and is payable monthly. The Manager has undertaken
from October 1, 1996 through September 30, 1997, to reduce the management fee
paid by the Fund, to the extent that the Fund's aggregate annual expenses,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed an annual rate of .65 of 1% of the value of the Fund's
average daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $82,369 during the period ended September 30, 1997.
(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 September 30, 1997, the Fund was charged $169,509
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. During the
period ended September 30, 1997, the Fund was charged $70,863 pursuant to the
transfer agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000. The Chairman of the Board
receives an additional 25% of such compensation.
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, 1997, 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 and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 1997 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, 1997, 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 3, 1997
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, 1997 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Connecticut residents, Connecticut
personal income taxes).
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS CONNECTICUT MUNICIPAL
MONEY MARKET 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. 101AR979
Registration Mark
[Dreyfus logo]
Connecticut
Municipal Money
Market Fund, Inc.
Annual Report
September 30, 1997
