DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Connecticut
Municipal Money Market Fund, Inc. for its six-month reporting period ended
March 31, 1997. Your Fund produced an annualized yield of 2.77% and, after
taking into account the effect of compounding, an annualized effective yield
of 2.80%.*
THE ECONOMY
The economy continued to gain momentum during the past several months,
with virtually every new economic report containing fresh evidence of robust
growth. Overall, the Commerce Department pegged real economic growth at 3.8
percent for the October through December period. Housing showed particular
strength, as home resales jumped a full 9 percent during February and sales
of new homes surpassed an 800,000 annual rate for two consecutive months -
January and February - for the first time in more than a decade. Sales of
manufactured goods also quickened, as new orders for factory durables and
consumer confidence improved. Meanwhile, the number of people receiving
jobless benefits plunged in March.
Against this steady economic advance, rates rose on two fronts. The
Federal Reserve Board took action at its March 25 meeting, raising the
Federal Funds rate by 25 basis points. Many analysts and financial market
participants interpreted this preemptive strike against inflation as just the
first, anticipating another interest-rate increase at the Fed's May meeting.
However, despite lower unemployment and increased help-wanted advertising,
higher inflation is not yet evident. Still, advance indicators of inflation
are rising and market participants and Fed policymakers remain alert for any
sign that inflation is trending upward. Meanwhile, short-term rates continued
to move up gradually in the money markets over the period. The market widely
anticipated the Fed's move in March, and has already begun adjusting prices
in anticipation of the next rate increase.
State tax cuts and a cut in spending are on track for Connecticut's
proposed 1997-99 budget plan; a reduction in the income-tax rate and
Connecticut's gasoline tax, which is the nation's highest, are among the
proposals. The State's short-term financial outlook looks good, with the
projected surplus for the fiscal year larger than had been forecast.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
The economic picture is an important component of our portfolio
strategy. Market expectations can also affect the short-term municipal
market, however, as was the case in this most recent period. For example, the
anticipation of Federal Reserve activity prior to the Presidential election
this past November left the market jittery, while the lack of Fed action in
the weeks following the election helped settle the market into a trading
range. Various other influences which affect the municipal market (most
specifically supply and demand) can lead us to adjust our strategy, and that
could result in a portfolio structure and/or average maturity which may not
appear to coincide exactly with interest rate moves, economic conditions, or
forecasts. In this way, one might have expected that your Fund's average
maturity, during this most recent period, would be relatively short in
expectation of higher rates. However, our strategy was to attempt to extend
out in the 50-60 day range - due to the expectation of limited availability
of high quality municipal note issues in early 1997. Unfortunately, a full
execution of this strategy was hampered, once again, by lack of supply of
attractive high quality Connecticut issues. We did utilize the commercial
paper market to extend out to a lesser degree, which provided your Fund with
additional diversification.
In the coming months, we expect additional technical market situations to
occur, such as increased redemptions in April due to income tax payments and
the maturing of significant note issues in June, and clearly we would adjust
the Fund's composition to respond to such situations. 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
continue to monitor those conditions which affect our marketplace and adjust
our investment strategy where necessary to pursue competitive returns.
Included in this report are detailed statements about your Fund's
holdings and its financial condition. We hope you find them informative.
Please know that we greatly appreciate 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 21, 1997
New York, N.Y.
*Annualized 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 MARCH 31, 1997 (UNAUDITED)
Principal
Tax Exempt Investments_100.0% Amount Value
_______ _______
<S> <C> <C>
Connecticut_83.9%
Town of Cheshire, BAN 4.25%, 8/8/97......................................... $ 2,625,000 $ 2,629,019
State of Connecticut, Special Tax Obligation Revenue, VRDN
(Transportation Infrastructure-1)
3.40% (LOC; Commerzbank) (a,b).......................................... 15,400,000 15,400,000
Connecticut Development Authority, VRDN:
Health Care Revenue (Corp. for Independent Living Project)
3.20% (LOC; Chase Manhattan Bank) (a,b)............................... 9,245,000 9,245,000
IDR (Blaset and Bromley Realty Project) 3.90% (LOC; Fleet Bank) (a,b)... 3,560,000 3,560,000
PCR:
(Connecticut Light and Power Co. Project):
3.30%, Series A (Insured; AMBAC and Liquidity; Societe Generale) (a) 8,000,000 8,000,000
Refunding 3.30%, Series B (LOC; Union Bank of Switzerland) (a,b).. 9,000,000 9,000,000
Refunding (Western Massachusetts Electric Co.)
3.15%, Series A (LOC; Union Bank of Switzerland) (a,b)............ 8,800,000 8,800,000
Solid Waste Revenue (Rand/Whitney Project)
3.25% (LOC; Chase Manhattan Bank) (a,b)............................... 4,500,000 4,500,000
Connecticut Health and Educational Facilities Authority, Revenue, VRDN
(Charlotte Hungerford Hospital)
3.15%, Series B (LOC; Bank of Boston) (a,b)............................. 900,000 900,000
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
CP 3.45%, Series D, 4/16/97............................................. 3,445,000 3,445,000
Revenue 3.60%, Series A, Subseries A-4, 4/10/97......................... 5,200,000 5,200,000
VRDN 3.40%, Series G (BPA; Morgan Guaranty Trust Co. and Insured; AMBAC) (a) 8,865,000 8,865,000
Connecticut Municipal Electric Energy Co-Op, Power Supply System Revenue, CP
3.25%, Series A, 5/15/97 (LOC; Fleet Bank) (b).......................... 3,600,000 3,600,000
Connecticut Special Assessment Unemployment Compensation Advance Fund,
Revenue
(Connecticut Unemployment)
3.90%, Series C, 7/1/97 (Insured and Liquidity; FGIC)................... 15,000,000 15,000,000
City of Danbury, BAN 3.50%, 5/8/97.......................................... 8,700,000 8,703,085
Hartford Redevelopment Agency, MFMR, Refunding, VRDN
(Underwood Tower Housing Project)
3.20% (Insured; FSA and Liquidity; Barclays Bank) (a)................... 9,500,000 9,500,000
Town of Meriden, BAN:
3.90%, Lot A, 8/13/97................................................... 2,385,000 2,388,513
4.25%, Lot B, 8/13/97................................................... 6,875,000 6,884,212
4%, Lot B, 2/12/98...................................................... 5,625,000 5,645,281
City of New Haven, BAN 4%, 5/22/97 (LOC; Fleet Bank) (a).................... 7,475,000 7,477,793
Stamford Housing Authority, Revenue, VRDN (Morgan Street Project)
3.45% (LOC; Deutsche Bank) (a,b)........................................ 7,500,000 7,500,000
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
_______ _______
U.S. Related_16.1%
Commonwealth of Puerto Rico:
Government Development Bank:
CP 3.20%, 5/14/97..................................................... $ 4,000,000 $ 4,000,000
VRDN 3.10% (LOC; Credit Suisse) (a,b)................................. 6,100,000 6,100,000
Highway and Transportation Authority, Highway Revenue, VRDN
3.10%, Series X (LOC: Landesbank Hessen-Thuringen, Swiss Bank Corp. and
Union Bank of Switzerland) (a,b)...................................... 2,620,000 2,620,000
TRAN 4%, Series A, 7/30/97.............................................. 7,000,000 7,012,880
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control
Facilities Financing Authority, Higher Education Revenue, VRDN
(Ana G. Mendez University Systems Project)
3.45%, Series A (LOC; Banco Popular de Puerto Rico) (a,b)............... 8,400,000 8,400,000
_______
TOTAL INVESTMENTS (cost $174,375,783)....................................... $174,375,783
=======
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Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
BAN Bond Anticipation Notes LOC Letter of Credit
BPA Bond Purchase Agreement MFMR Multi-Family Mortgage Revenue
CP Commercial Paper PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company TRAN Tax and Revenue Anticipation Notes
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
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<CAPTION>
Summary of Combined Ratings
Moody's or Standard & Poor's Percentage of Value
____ __________________ ____________________
<S> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 80.7%
Aaa/Aa (d) AAA/AA (d) 5.0
Not Rated (e) Not Rated (e) 14.3
____
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 March 31, 1997, 43.5% 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 MIG or SP rated are represented by bond ratings
of the issuers.
(e) Securities which, while not rated by Moody's and Standard & Poor's,
respectively, 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 MARCH 31, 1997 (UNAUDITED)
Cost Value
________ ________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $174,375,783 $174,375,783
Cash....................................... 2,265,193
Receivable for investment securities sold.. 22,502,158
Interest receivable........................ 1,391,357
Prepaid expenses........................... 7,717
________
200,542,208
________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 72,805
Accrued expenses........................... 42,499
________
115,304
________
NET ASSETS.................................................................. $200,426,904
========
REPRESENTED BY: Paid-in capital............................ $200,452,601
Accumulated net realized gain (loss) on investments (25,697)
________
NET ASSETS.................................................................. $200,426,904
========
SHARES OUTSTANDING
(1 billion shares of $.001 par value Common Stock authorized)............... 200,452,601
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 SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $3,242,084
EXPENSES: Management fee_Note 2(a)................... $ 474,570
Shareholder servicing costs_Note 2(b)...... 133,033
Professional fees.......................... 17,669
Custodian fees............................. 9,808
Registration fees.......................... 6,118
Directors' fees and expenses_Note 2(c)..... 4,604
Prospectus and shareholders' reports....... 4,178
Miscellaneous.............................. 4,771
______
Total Expenses....................... 654,751
Less_reduction in management fee due to
undertaking_Note 2(a).................. (37,359)
______
Net Expenses......................... 617,392
______
INVESTMENT INCOME_NET....................................................... 2,624,692
NET REALIZED GAIN (LOSS) ON INVESTMENTS_Note 1(b)........................... 52,859
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,677,551
======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996
__________________ __________________
OPERATIONS:
Investment income_net............................................... $ 2,624,692 $ 6,207,980
Net realized gain (loss) on investments............................. 52,859 ____
________ _______
Net Increase (Decrease) in Net Assets Resulting from Operations... 2,677,551 6,207,980
________ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................... (2,624,692) (6,207,980)
________ _______
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold....................................... 126,585,842 304,245,758
Dividends reinvested................................................ 2,529,650 5,969,752
Cost of shares redeemed............................................. (118,768,833) (353,119,723)
________ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions. 10,346,659 (42,904,213)
________ _______
Total Increase (Decrease) in Net Assets....................... 10,399,518 (42,904,213)
NET ASSETS:
Beginning of Period................................................. 190,027,386 232,931,599
________ _______
End of Period....................................................... $ 200,426,904 $ 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.
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.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____ ____
Investment Operations:
Investment income_net................. .014 .029 .033 .023 .023 .032
____ ____ ____ ____ ____ ____
Distributions:
Dividends from investment income_net.. (.014) (.029) (.033) (.023) (.023) (.032)
____ ____ ____ ____ ____ ____
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 2.79%* 2.94% 3.35% 2.33% 2.34% 3.28%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .65%* .63% .45% .22% .12% .04%
Ratio of net investment income
to average net assets............... 2.77%* 2.90% 3.31% 2.30% 2.30% 3.22%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .04%* .03% .18% .42% .55% .63%
Net Assets, end of period (000's Omitted) $200,427 $190,027 $232,932 $242,067 $212,288 $206,980
*Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 $79,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1996. If not
applied, $34,000 of the carryover expires in fiscal 2002, $11,000 expires in
fiscal 2003 and $34,000 expires in fiscal 2004.
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).
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
DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 $37,359 during the period ended
March 31, 1997.
(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 period ended March 31, 1997, the Fund was charged an aggregate of
$80,286 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 $36,320 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 $1,000. The Chairman of the Board
receives an additional 25% of such compensation.
[Dreyfus lion "d" logo]
Registration Mark
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. 101SA973
[Dreyfus logo]
Registration Mark
Connecticut
Municipal
Money Market
Fund, Inc.
Semi-Annual
Report
March 31, 1997
