Dreyfus
Connecticut
Municipal Money Market Fund, Inc.
ANNUAL REPORT September 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
18 Report of Independent Auditors
19 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Connecticut
Municipal Money Market Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Connecticut Municipal
Money Market Fund, Inc., covering the 12-month period from October 1, 1999
through September 30, 2000. Inside, you'll find valuable information about how
the fund was managed during the reporting period, including a discussion with
the fund's portfolio manager, Joseph Irace.
Yields on tax-exempt money market instruments rose in general over the past 12
months because of supply-and-demand influences that are unique to the tax-exempt
markets. However, yields of tax-exempt money market instruments did not rise as
much as their taxable counterparts. Amid signs that its previous rate hikes had
begun to slow the economy, the Federal Reserve Board refrained from raising
rates further at its meetings in June and August. Other factors such as higher
energy prices and a weak euro also served to slow economic growth.
In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above long-term averages, establishing
unrealistic expectations for some investors. In our opinion, as the risks of the
stock market have become more apparent due to recent volatility, the safety and
tax-free income potential of tax-exempt money market funds can make them an
attractive investment as part of a well-balanced portfolio.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620
Thank you for investing in Dreyfus Connecticut Municipal Money Market Fund, Inc
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Joseph Irace, Portfolio Manager
How did Dreyfus Connecticut Municipal Money Market Fund, Inc. perform during the
period?
For the 12-month period ended September 30, 2000, the fund produced an
annualized tax-exempt yield of 3.13% . Taking into account the effects of
compounding, the fund provided an annualized effective yield of 3.17%.(1
What is the fund's investment approach?
The fund seeks high current federal and Connecticut tax-exempt income while
looking to maintain a stable $1.00 share price. We are vigilant in our efforts
to preserve capital.
In pursuing the fund's investment approach, we employ two primary strategies.
First, we attempt to add value by constructing a diverse portfolio of high
quality, tax-exempt money market instruments from Connecticut tax-exempt
issuers. Second, we actively manage the portfolio' s average maturity in
anticipation of what we believe are interest-rate trends and supply-and-demand
changes in Connecticut's short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the fund, which would enable us to purchase new securities
with then current higher yields. Yields tend to rise when there is an increase
in new-issue supply competing for investor interest. New securities which are
generally issued with maturities in the one-year range may lengthen the fund's
average maturity. If we anticipate limited new-issue supply, we may extend the
fund' s average maturity to maintain current yields for as long as practical. At
other times, we try to maintain an average maturity that reflects our view of
short-term interest-rate trends and future supply-and-demand considerations.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
The fund was positively influenced over the past year by rising interest rates.
When the reporting period began on October 1, 1999, the U.S. economy continued
to grow strongly, raising concerns that long-dormant inflationary pressures
might reemerge. In response, the Federal Reserve Board (the "Fed") raised
short-term interest rates at its November, February, March and May meetings, for
a total of 1.25 percentage points. However, tax-exempt yields later declined
modestly when the Fed did not change interest rates at subsequent meetings. The
Fed held monetary policy steady because of signs that its previous rate hikes
were having the desired effect of slowing the economy. Fewer housing starts,
moderating growth and little change in the core inflation rate may suggest that
the Fed's rate hikes could be at or near an end.
Despite slower growth, the continuing strength of the U.S. economy helped keep
tax-exempt money market yields relatively low compared to taxable money market
instruments. Connecticut and its municipalities enjoyed higher tax revenues,
curtailing the need to borrow and resulting in a reduced supply of securities
compared to the same period one year earlier. At the same time, demand for
tax-exempt money market instruments has been strong from Connecticut residents
seeking to protect their wealth from stock market volatility. When demand rises
and supply falls, prices of existing fixed-income securities tend to move
higher.
In this environment, we generally maintained a LADDERED portfolio in which
maturities are staggered. This allows us to balance the need to maintain
prevailing yields if rates decline with the opportunity to capture higher yields
if rates rise. In addition, we generally maintained a longer average maturity
than our peer group. This position helped us maintain the fund's income stream
when yields declined modestly toward the end of the reporting period. Finally,
we reduced the percentage of assets invested in fixed-rate commercial paper,
preferring instead to increase our holdings of variable rate demand notes
(VRDNs) which feature floating rates that are reset weekly.
What is the fund's current strategy?
In our view, yields may decline further if the current economic slowdown
continues. Accordingly, we have maintained the fund's average maturity at a
point that is longer than the average for our peer group. In addition, we have
focused on purchasing smaller blocks of insured securities because of the
combination of competitive yields and safety they can provide. Of course,
portfolio composition, strategy and markets can change at any time.
October 16, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-CONNECTICUT
RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. AN INVESTMENT IN THE FUND IS NOT INSURED OR
GUARANTEED BY THE FDIC OR THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
The Fund
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
September 30, 2000
STATEMENT OF INVESTMENTS
Principal
TAX EXEMPT INVESTMENTS--94.9% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT--94.3%
Ansonia, GO Notes:
<S> <C> <C>
4.25%, 10/15/2000 (Insured; FGIC) 100,000 100,002
4.80%, 10/15/2000 (Insured; FGIC) 300,000 300,066
Brookfield, GO Notes 5.40%, 7/15/2001 250,000 252,089
Brooklyn, GO Notes 6.70%, 8/15/2001 (Insured; FSA) 105,000 107,126
Clinton, GO Notes 7.25%, 6/15/2001 (Insured; MBIA) 175,000 178,523
State of Connecticut:
GO Notes:
5.50%, Series B, 10/1/2000 700,000 700,000
4%, Series C, 10/15/2000 1,775,000 1,775,040
4%, Series B, 11/1/2000 6,850,000 6,850,440
5.85%, Series C, 11/15/2000 355,000 355,000
4.80%, Series B, 3/15/2001 350,000 350,620
5%, Series A, 3/15/2001 100,000 100,127
4.15%, Series A, 4/15/2001 2,950,000 2,946,192
4.60%, Series A, 5/15/2001 375,000 375,222
4%, Series A, 6/15/2001 4,000,000 3,991,198
5%, Series B, 6/15/2001 2,350,000 2,360,578
Prerefunded 5.85%, Series C, 11/15/2000
(Escrowed in; U.S. Government Securities) 5,000 5,000
Connecticut Clean Water Fund:
Revenues 5%, 3/1/2001 700,000 702,133
Sewer Revenue:
6.60%, 1/1/2001 1,000,000 1,005,692
5.50%, 2/1/2001 300,000 301,212
Connecticut Development Authority, VRDN:
Health Care Revenue
(Corporation for Independent Living Project)
5.40% (LOC; Chase Manhattan Bank) 6,600,000 (a) 6,600,000
IDR:
Refunding (Capitol District Energy)
5.40% (LOC; Fleet National Bank) 3,900,000 (a) 3,900,000
(Shw Inc. Project) 5.40% (LOC; Deutsche Bank) 200,000 (a) 200,000
Industrial Revenue:
(Conco Medical Co. Project)
5.25% (LOC; Bayerische Veriensbank) 1,700,000 (a) 1,700,000
(Energy Network Sina Project)
5.40% (LOC; Fleet National Bank) 2,200,000 (a) 2,200,000
(Lapham-Hickey Steel Corp.)
5.55% (LOC; Harris Trust and Savings Bank) 1,500,000 (a) 1,500,000
PCR (Connecticut Light and Power Co. Project)
5.50%, Series A (Insured; AMBAC and Liquidity Facility;
Societe Generale) 8,000,000 (a) 8,000,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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Connecticut Health and Educational Facilities Authority:
Revenues
CP (Yale University):
3.95%, 11/9/2000 (Guaranteed by; Yale University) 7,500,000 7,500,000
4%, 11/13/2000 (Guaranteed by; Yale University) 1,500,000 1,500,000
4.10%, Series L, 12/7/2000 (Guaranteed by;
Yale University) 3,000,000 3,000,000
3.95%, 12/8/2000 (Guaranteed by; Yale University) 3,000,000 3,000,000
VRDN:
(Academy of Our Lady of Mercy) 4.20%, Series A
(LOC; Allied Irish Banks) 3,400,000 (a) 3,400,000
(Charlotte Hungerford) 5.40%, Series C
(LOC; Fleet National Bank) 1,600,000 (a) 1,600,000
(Community Renewal Team) 5.40%, Series A
(LOC; Fleet National Bank) 2,090,000 (a) 2,090,000
(Covenant Retirement) 5.25%, Series A
(LOC; Lasalle National Bank) 3,400,000 (a) 3,400,000
(Ethel Walker School Issue)
5.25% (LOC; Allied Irish Banks) 4,250,000 (a) 4,250,000
(Gaylord Hospital Issue) 5.40%, Series A
(LOC; Bank of Boston Corp.) 6,420,000 (a) 6,420,000
(Hartford Hospital) 5.40%, Series B
(LOC; Fleet National Bank) 3,175,000 (a) 3,175,000
(Hotchkiss School) 5.20%, Series A
(Liquidity Facility; Northern Trust Co.) 3,000,000 (a) 3,000,000
(Marvelwood School Issue) 5.20%, Series A
(LOC; First Union National Bank of North Carolina) 1,135,000 (a) 1,135,000
(Taft School) 5.25%, Series E
(LOC; First Union National Bank of North Carolina) 3,000,000 (a) 3,000,000
(Yale University) 5.50%, Series T-1
(Guaranteed by; Yale University) 7,400,000 (a) 7,400,000
Connecticut Housing Finance Authority, Housing Revenue
Housing Mortgage Finance Program:
4.20%, Series E-2, 5/15/2001 100,000 99,581
VRDN:
4.40%, Series B-3 (Insured; AMBAC and LOC; FHLMC) 3,000,000 (a) 3,000,000
4.75%, Series BB (Liquidity Facility; First Union
National Bank of North Carolina) 3,480,000 (a) 3,480,000
5.30%, Series G (Insured; AMBAC and Liquidity Facility;
Morgan Guaranty Trust Co.) 1,800,000 (a) 1,800,000
5.50%, Series D (LOC; FHLMC) 9,269,000 (a) 9,269,000
Connecticut Special Assessment Second Injury Fund, CP
4.15%, 1/17/2001 (LOC: Credit Agricole-Indosuez and
Credit Commerciale de Belgique) 17,900,000 17,900,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
Connecticut Special Assessment Unemployment Compensation
Advance Fund, Revenue (Connecticut Unemployment):
4.35%, Series C, 7/1/2001 (Insured; FGIC and Liquidity
Facility; FGIC) 7,500,000 7,500,000
Refunding:
4.60%, Series A, 11/15/2000 (Insured; AMBAC) 100,000 99,982
5.50%, Series A, 11/15/2000 (Insured; AMBAC) 6,250,000 6,260,668
5.50%, Series A, 5/15/2001 (Insured; AMBAC) 620,000 624,514
Connecticut Special Tax Obligation, Revenues
(Transportation Infrastructure):
4.40%, Series B, 10/1/2000 (Insured; FGIC) 300,000 300,000
5.50%, Series B, 10/1/2000 (Insured; FGIC) 250,000 250,000
4.75%, Series A, 6/1/2001 (Insured; FGIC) 100,000 100,188
Prerefunded 7.125%, Series A, 6/1/2001
(Escrowed in; U.S. Government Securities) 535,000 550,124
Refunding:
5.50%, Series C, 10/1/2000 (Insured; FGIC) 650,000 650,000
4%, Series B, 11/1/2000 (Insured; FSA) 1,350,000 1,349,983
VRDN:
5.35%, Series 1 (Insured; FGIC and Liquidity Facility;
Dexia-Credit Locale de France) 3,000,000 (a) 3,000,000
5.40%, Series 1 (LOC; Commerzbank) 3,000,000 (a) 3,000,000
Coventry, BAN 4.25%, 12/13/2000 500,000 499,658
East Haven, BAN 4.25%, 12/14/2000 5,800,000 5,803,939
East Lyme, BAN 4.40%, 7/19/2001 4,700,000 4,704,217
Fairfield:
GAN 5%, 6/15/2001 300,000 300,916
Sewer Assessment Revenue Notes 5%, 6/22/2001 600,000 601,867
Town of Groton, BAN 4.75%, 12/15/2000 1,022,000 1,022,510
Guilford, GO Notes 5.375%, 1/15/2001 (Insured; MBIA) 300,000 300,901
Hartford Redevelopment Agency, MFMR, Refunding
(Underwood Tower Project) VRDN 5.40%
(Insured; FSA and Liquidity Facility; Societe Generale) 3,000,000 (a) 3,000,000
Meriden, GO Notes 4.25%, 2/1/2001 120,000 120,000
New Britain:
GO Notes:
5%, Series A, 4/1/2001 (Insured; AMBAC) 375,000 376,446
4.40%, 4/15/2001 (Insured; AMBAC) 175,000 175,097
VRDN:
5.20% (Insured; AMBAC and Liquidity Facility; Bank of
Nova Scotia) 3,800,000 (a) 3,800,000
5.35%, Series B (Insured; AMBAC and Liquidity Facility;
Bank of Nova Scotia) 4,025,000 (a) 4,025,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
New Fairfield, GO Notes 4.60%, 3/15/2001 (Insured; MBIA) 500,000 500,874
New Haven, GO Notes 5.125%, 9/1/2001 (Insured; FGIC) 265,000 266,932
New London, GO Notes 5%, 10/1/2000 (Insured; MBIA) 100,000 100,000
Newington, GO Notes 6.70%, 4/1/2001 400,000 404,889
Regional School District No. 14 5.60%, 5/15/2001 250,000 251,418
Ridgefield, GO Notes:
5%, 11/15/2000 225,000 225,228
5.50%, 7/1/2001 200,000 201,590
South Central Regional Water Authority, Water System
Revenue 4.75%, Series 16, 8/1/2001 (Insured; AMBAC) 435,000 436,566
Southeastern Water Authority, Water Revenue
4.22%, 3/15/2001 748,000 748,227
Stafford, BAN 4.50%, 8/2/2001 1,130,000 1,131,808
Windham, GO Notes 4.50%, 8/15/2001 125,000 125,157
Woodbridge, GO Notes 4.90%, 8/15/2001 340,000 341,721
U.S. RELATED--.6%
Commonwealth of Northern Mariana Islands, GO Notes
(Public School System Project) 4%, Series A, 10/1/2000
(Insured; FSA) 1,000,000 1,000,000
Puerto Rico Public Buildings Authority, Public Education
and Health Facilities, LR 6%, Series L, 7/1/2001 (Insured; FGIC) 100,000 101,158
Virgin Islands Public Finance Authority, Revenues, Prerefunded
7.30%, Series A, 10/1/2000
(Escrowed in; U.S. Government Securities) 205,000 207,050
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TOTAL INVESTMENTS (cost $190,726,379) 94.9% 190,733,469
CASH AND RECEIVABLES (NET) 5.1% 10,158,637
NET ASSETS 100.0% 200,892,106
The Fund
</TABLE>
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
BAN Bond Anticipation Notes
CP Commercial Paper
FGIC Financial Guaranty
Insurance Company
FHLMC Federal Home Loan
Mortgage Corporation
FSA Financial Security Assurance
GAN Grant Anticipation Notes
GO General Obligation
IDR Industrial Development Revenue
LOC Letter of Credit
LR Lease Revenue
MBIA Municipal Bond
Investors Assurance
Insurance Corporation
MFMR Multi-Family Mortgage Revenue
PCR Pollution Control Revenue
VRDN Variable Rate Demand Notes
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 73.3
AAA/AA (b) Aaa/Aa (b) AAA/AA (b) 25.1
Not Rated (c) Not Rated (c) Not Rated (c) 1.6
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF THE ISSUERS.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 190,726,379 190,733,469
Cash 1,051,946
Receivable for investment securities sold 10,604,692
Interest receivable 1,628,920
Prepaid expenses 3,223
204,022,250
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 77,900
Payable for investment securities purchased 3,000,000
Accrued expenses 52,244
3,130,144
--------------------------------------------------------------------------------
NET ASSETS ($) 200,892,106
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 200,923,420
Accumulated net realized gain (loss) on investments (38,404)
Accumulated gross unrealized appreciation on investments 7,090
--------------------------------------------------------------------------------
NET ASSETS ($) 200,892,106
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(1 billion shares of $.001 par value Common Stock authorized) 200,923,420
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended September 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 7,342,737
EXPENSES:
Management fee--Note 2(a) 967,056
Shareholder servicing costs--Note 2(b) 223,256
Professional fees 63,113
Custodian fees 20,846
Prospectus and shareholders' reports 14,319
Registration fees 8,602
Directors' fees and expenses--Note 2(c) 8,151
Miscellaneous 10,679
TOTAL EXPENSES 1,316,022
Less--reduction in management fee due to
undertaking--Note 2(a) (58,248)
NET EXPENSES 1,257,774
INVESTMENT INCOME--NET 6,084,963
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS NOTE 1(B)($):
Net realized gain (loss) on investments (593)
Net unrealized appreciation (depreciation) on investments 7,090
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 6,497
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,091,460
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
-----------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 6,084,963 4,499,125
Net realized gain (loss) on investments (593) (3,380)
Net unrealized appreciation (depreciation)
on investments 7,090 --
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,091,460 4,495,745
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (6,084,963) (4,499,125)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 329,833,123 257,745,468
Dividends reinvested 5,837,772 4,336,552
Cost of shares redeemed (309,385,294) (270,556,983)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 26,285,601 (8,474,963)
TOTAL INCREASE (DECREASE) IN NET ASSETS 26,292,098 (8,478,343)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 174,600,008 183,078,351
END OF PERIOD 200,892,106 174,600,008
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Year Ended September 30,
-------------------------------------------------------------------
2000 1999 1998 1997 1996
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PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .031 .024 .029 .029 .029
Distributions:
Dividends from investment income--net (.031) (.024) (.029) (.029) (.029)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.19 2.44 2.89 2.93 2.94
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .65 .63 .65 .65 .63
Ratio of net investment income
to average net assets 3.15 2.41 2.85 2.89 2.90
Decrease reflected in above
expense ratios due to undertakings
by The Dreyfus Corporation .03 .12 .20 .04 .03
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 200,892 174,600 183,078 181,930 190,027
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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, as amended (the "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 Connecticut state 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., which is a wholly-owned subsidiary of
Mellon Financial Corporation. Effective March 22, 2000, Dreyfus Service
Corporation (" DSC" ), a wholly-owned subsidiary of the Manager, became the
distributor of the fund's shares, which are sold to the public without a sales
charge. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the
distributor.
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 in securities 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
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Under the terms of the custody agreement, the fund receives net earnings credits
based on available cash balances left on deposit.
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, if any, 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 of 1986, as amended (the
" 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 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 $38,000 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to September 30, 2000. This amount is
calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, $34,000 of the carryover expires in fiscal 2004, $1,000 expires
in fiscal 2007, and $3,000 expires in fiscal 2008.
At September 30, 2000, 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 had undertaken from October
1, 1999 through to September 30, 2000 to reduce the management fee paid by the
fund, to the extent that the fund's aggregate annual expenses, exclusive of
taxes, brokerage fees, interest on borrowings and extraordinary expenses,
exceeded 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 $58,248 during the period ended September 30, 2000.
(b) Under the Shareholder Services Plan, the fund reimburses DSC 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, 2000, the fund was charged $149,403 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, 2000, the fund was charged $48,137 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.
The Fund
REPORT OF 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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000 by correspondence with
the custodian and brokers. 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, 2000, 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 accounting principles
generally accepted in the United States.
/s/Ernst & Young LLP
New York, New York
November 2, 2000
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, 2000
as "exempt-interest dividends" (not subject to regular Federal and, for
individuals who are Connecticut residents, Connecticut personal income taxes).
The Fund
NOTES
For More Information
Dreyfus Connecticut Municipal Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 101AR009
