Dreyfus
Connecticut
Municipal Money Market Fund, Inc.
SEMIANNUAL REPORT March 31, 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
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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
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 semiannual report for Dreyfus Connecticut
Municipal Money Market Fund, Inc., covering the six-month period from October 1,
1999 through March 31, 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.
When the reporting period began, international and domestic economies were
growing faster than most analysts expected, giving rise to concerns that
long-dormant inflationary pressures might re-emerge. Consumers continued to
spend heavily, unemployment levels reached new lows and the stock market, while
highly volatile, continued to climb.
Because unsustainable economic growth may trigger unwanted inflationary
pressures, the Federal Reserve Board raised key short-term interest rates twice
more during the reporting period. In total, the Federal Reserve Board has raised
short-term interest rates by 125 basis points since late June 1999. While these
economic influences adversely affected longer term municipal bonds, they
positively influenced tax-exempt money market yields.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Connecticut Municipal Money Market Fund,
Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Joseph Irace, Portfolio Manager
How did Dreyfus Connecticut Municipal Money Market Fund, Inc. perform during the
period?
For the six-month period ended March 31, 2000, the fund produced an annualized
tax-exempt yield of 2.84%. Taking into account the effects of compounding, the
fund provided an annualized effective yield of 2.87%.(1) We attribute the fund's
performance to higher short-term interest rates implemented by the Federal
Reserve Board, which helped enhance tax-exempt money market yields. On the other
hand, the effects of higher interest rates were partially offset by a declining
supply of newly issued short-term tax-exempt securities amid high investor
demand.
What is the fund's investment approach?
The fund' s objective is to seek a high level of federal and Connecticut state
tax-exempt income while maintaining a stable $1.00 share price. We are
especially vigilant in our efforts to preserve capital.
In pursuing this objective, 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-exempt issuers. Second, we actively
manage the portfolio's average maturity in anticipation of 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 portfolio, which would enable us to purchase new
securities with higher yields. Yields tend to rise when there is an increase in
new-issue supply competing for investor interest. New securities are generally
issued with maturities in the one-year range, which will lengthen the
portfolio' s average maturity. If we anticipate limited new-issue supply, we may
extend the portfolio's average maturity to maintain current yields for as long
as practi
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
cal. 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.
What other factors influenced the fund's performance?
The portfolio was primarily influenced by robust U.S. economic growth, rising
interest rates and a declining supply of newly issued securities throughout the
six-month reporting period.
By the time the reporting period began on October 1, 1999, it was clear that
economic growth in the United States and overseas was stronger than many
analysts had expected. In the U.S., consumer confidence had reached a 30-year
high, oil prices had bounced back from the previous year's lows, and employment
was strong, with hourly wages rising. These economic forces raised concerns
among fixed-income investors that long-dormant inflationary pressures might
re-emerge. In response, the Federal Reserve Board had already increased
short-term interest rates twice in June and August, before the start of the
six-month reporting period. The Fed then implemented three additional rate hikes
in November, February and March -- during the reporting period -- for a total
increase of 125 basis points since last summer.
Although these interest-rate increases caused short-term tax-exempt yields to
rise throughout the reporting period, tax-exempt money market yields did not
rise as much as comparable taxable yields. That's because Connecticut and many
of its municipalities enjoyed higher tax revenues during this period of economic
prosperity. As a result, many municipalities had less need to borrow to satisfy
their short-term obligations, resulting in a reduced supply of securities.
What is the fund's current strategy?
We have continued to manage the portfolio' s weighted average maturity and
portfolio mix according to our interest-rate and supply-and-demand expectations.
Throughout most of the reporting period, we maintained a weighted average
maturity that was longer than neutral. This position was designed to maintain
competitive yields amid a declining supply of newly issued securities. We
further extended our average maturity in December to take advantage of
Y2K-related technical factors.
Our security selection strategy has continued to focus on very high quality,
liquid money market instruments from an array of Connecticut-exempt issuers.
Some of the most frequently used instruments included Variable Rate Demand Notes
(VRDNs) , which feature adjustable yields, short maturities, and afford the
portfolio a high degree of liquidity and credit quality. Toward the end of the
reporting period, we reduced our holdings of VRDNs to approximately 47% of the
portfolio, redeploying some funds to tax-exempt fixed-rate notes and commercial
paper. Of course, portfolio composition will change over time.
April 12, 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 ANY OTHER GOVERNMENT
AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT
$1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
Principal
TAX EXEMPT INVESTMENTS--99.9% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONNECTICUT--99.0%
Ansonia 4.25%, 10/15/2000 (Insured; FGIC) 100,000 100,024
Town of Berlin, BAN 3.75%, 6/15/2000 3,165,000 3,169,401
Cheshire, Refunding (Lot A) 4.50%, 8/1/2000 100,000 100,079
State of Connecticut:
5%, Series C, 8/1/2000 1,250,000 1,253,761
5.50%, Series B, 10/1/2000 700,000 704,845
4%, Series C, 10/15/2000 1,575,000 1,576,037
4%, Series B, 11/1/2000 4,925,000 4,930,427
5.85%, Series C, 11/15/2000 360,000 363,479
Special Tax Obligation Revenue;
(Transportation Infrastructure):
5.10%, Series A, 6/1/2000 (Insured; FGIC) 1,050,000 1,051,772
4.40%, Series B, 10/1/2000 (Insured; FGIC) 100,000 100,069
5.50%, Series B, 10/1/2000 (Insured; FGIC) 100,000 100,608
Refunding:
5.50%, Series C, 10/1/2000 (Insured; FGIC) 100,000 100,417
4%, Series B, 11/1/2000 (Insured; FSA) 950,000 950,800
VRDN 3.85%, Series 1 (LOC; Commerzbank) 9,025,000 (a) 9,025,000
Connecticut Clean Water Fund, Revenue:
6.60%, 1/1/2001 1,000,000 1,017,014
5%, 3/1/2001 500,000 503,753
Connecticut Development Authority:
Industrial Revenue, CP (New England Power Co.):
3.70%, 5/8/2000 (LOC; New England Power Co.) 5,000,000 5,000,000
3.80%, 5/8/2000 (LOC; New England Power Co.) 2,000,000 2,000,000
VRDN:
Health Care Revenue
(Corporation for Independent Living Project)
3.75% (LOC; Chase Manhattan Bank) 7,000,000 (a) 7,000,000
IDR:
Refunding (Capitol District Energy)
3.90% (LOC; Fleet National Bank) 3,900,000 (a) 3,900,000
(Shw Inc. Project) 3.90% (LOC; Deutsche Bank) 100,000 (a) 100,000
Industrial Revenue 3.90% (Energy Network Sina Project)
(LOC; Fleet National Bank) 2,200,000 (a) 2,200,000
PCR 3.65%, Series A
(Connecticut Light and Power Co. Project)
(Insured; AMBAC and Liquidity Facility; Societe Generale) 8,000,000 (a) 8,000,000
Revenue:
(Conco Medical Center Project)
3.80% (LOC; Bayerische Veriensbank) 1,700,000 (a) 1,700,000
(Solid Waste Project--Rand/Whitney)
3.35% (LOC; Bank of Montreal) 5,500,000 (a) 5,500,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CONNECTICUT (CONTINUED)
Connecticut Health and Educational Facilities Authority,
Revenue:
(Choate Rosemary Hall) 5.65%, Series A, 7/1/2000
(Insured; MBIA) 150,000 150,456
CP (Yale University):
3.65%, Series S, 5/16/2000 (LOC; Yale University) 1,500,000 1,500,000
3.65%, Series S, 5/18/2000 (LOC; Yale University) 5,090,000 5,090,000
3.75%, Series L, 5/18/2000 (LOC; Yale University) 3,300,000 3,300,000
3.90%, Series L, 6/15/2000 (LOC; Yale University) 7,500,000 7,500,000
Refunding:
(Eastern Connecticut Health Network)
5%, Series A, 7/1/2000 (Insured; Asset Guaranty) 1,000,000 1,001,770
(Fairfield University) 4.05%, Series G, 7/1/2000
(Insured; MBIA) 150,000 149,894
(Waterbury Hospital Issue)
4.25%, Series C, 7/1/2000 (Insured; Asset Guaranty) 685,000 685,223
VRDN:
(Ascension Health Credit) 3.70%, Series B
(LOC; Ascension Health Credit) 6,100,000 (a) 6,100,000
(Charlotte Hungerford) 3.55%, Series C
(LOC; Fleet National Bank) 1,600,000 (a) 1,600,000
(Community Renewal Team) 3.60%, Series A
(LOC; Fleet National Bank) 2,165,000 (a) 2,165,000
(Covenant Retirement) 3.65%, Series A
(LOC; Lasalle National Bank) 3,400,000 (a) 3,400,000
(Ethel Walker School Issue) 3.60% (LOC; Allied Irish Banks) 4,250,000 (a) 4,250,000
(Gaylord Hospital Issue) 3.70%, Series A
(LOC; Bank of Boston Corp.) 6,420,000 (a) 6,420,000
(Hospital of Saint Rafael) 3.30%, Series J
(LOC; Kredietbank) 4,600,000 (a) 4,600,000
(Stamford Hospital) 3.30%, Series H
(Insured; MBIA and Liquidity Facility;
Chase Manhattan Bank) 7,100,000 (a) 7,100,000
(Summerwood University Park) 3.30%, Series A
(LOC; Lasalle National Bank) 1,900,000 (a) 1,900,000
(Yale University) 3.65%, Series U (LOC; Yale University) 17,000,000 (a) 17,000,000
(Yale--New Haven Hospital Issue)
7.10%, Series F, 7/1/2000
(Escrowed in; U.S. Treasury Securities) 1,000,000 1,027,400
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
5.10%, Series A, 5/15/2000 750,000 750,687
3.90%, Series C-2, 9/5/2000 3,800,000 3,800,000
The Fund
STATEMENT OF INVESTMENTS (Unaudited)(CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CONNECTICUT (CONTINUED)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program) (continued):
CP 3.75%, Series D, 4/11/2000
(Liquidity Facility; Morgan Guaranty Trust Co.) 4,665,000 4,665,000
VRDN 3.80%, Series G
(Insured; AMBAC and Liquidity Facility;
Morgan Guaranty Trust Co.) 4,265,000 (a) 4,265,000
Connecticut Special Assessment Second Injury Fund,
Revenue, CP:
3.65%, 5/25/2000 (LOC: Credit Agricole--Indosuez
and Credit Commerciale de Belgique) 6,900,000 6,900,000
3.70%, 5/25/2000 (LOC: Credit Agricole--Indosuez
and Credit Commerciale de Belgique) 8,000,000 8,000,000
Connecticut Special Assessment Unemployment
Compensation Advance Fund,
Revenue (Connecticut Unemployment):
5.50%, Series A, 5/15/2000 (Insured; AMBAC) 4,040,000 4,047,518
3.38%, Series C, 7/1/2000
(Insured; FGIC and Liquidity Facility; FGIC) 7,000,000 7,000,000
5.50%, Series A, 11/15/2000 (Insured; AMBAC) 5,750,000 5,801,349
East Haven, BAN 4.25%, 12/14/2000 5,800,000 5,813,681
Fairfield:
BAN (Lot A) 3.75%, 6/23/2000 4,452,000 4,457,573
Sewer Assessment (Lot B) 3.75%, 6/23/2000 1,000,000 1,001,142
New Britain:
BAN 3.15%, 4/12/2000 8,000,000 8,000,301
VRDN 3.60% (Insured; AMBAC and Liquidity Facility;
Bank of Nova Scotia) 4,000,000 (a) 4,000,000
New Fairfield 4.60%, 3/15/2001 (Insured; MBIA) 500,000 501,843
New Haven:
6.90%, 9/15/2000 (Insured; MBIA) 500,000 506,319
BAN 4%, 7/12/2000 4,000,000 4,005,598
New London 5%, 10/1/2000 (Insured; MBIA) 100,000 100,361
Newington 6.70%, 4/1/2001 400,000 409,536
South Central Regional Water Authority,
Water System Revenue
5.10%, 11th Series, 8/1/2000 (Insured; FGIC) 100,000 100,224
Southeastern Water Authority,
Working Capital and Organizational Fund
4.22%, 3/15/2001 748,000 748,479
Thompson 6.70%, 8/15/2000 (Insured; MBIA) 575,000 580,485
Waterbury, Refunding 4.70%, 4/15/2000 (Insured; FGIC) 100,000 100,009
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED--.9%
Commonwealth of Northern Mariana Islands
(Public School System Project)
4%, Series A, 10/1/2000 (Insured; FSA) 1,000,000 1,000,014
Puerto Rico:
Commonwealth 5%, 7/1/2000 (Insured; AMBAC) 200,000 200,479
Electric Power Authority, Power Revenue:
5.20%, 7/1/2000 (Insured; FSA) 100,000 100,152
6%, 7/1/2000 (Insured; MBIA) 350,000 351,559
Municipal Finance Agency 5.10%,
Series A, 7/1/2000 (Insured; FSA) 100,000 100,195
Virgin Isalnds Public Finance Authority, Revenue
7.30%, Series A, 10/1/2000 (Escrowed in;
U.S. Government Securities) 205,000 210,095
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TOTAL INVESTMENTS (cost $212,904,818) 99.9% 212,904,828
CASH AND RECEIVABLES (NET) .1% 180,631
NET ASSETS 100.0% 213,085,459
The Fund
STATEMENT OF INVESTMENTS (Unaudited)(CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
BAN Bond Anticipation Notes
CP Commercial Paper
FGIC Financial Guaranty
Insurance Company
FSA Financial Security Assurance
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond
Investors Assurance
Insurance Corporation
PCR Pollution Control Revenue
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 81.1
AAA/AA (b) AAA/AA (b) AAA/AA (b) 14.5
Not Rated (c) Not Rated (c) Not Rated (c) 4.4
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC
CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF
THE ISSUERS.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 212,904,818 212,904,828
Interest receivable 1,819,737
214,724,565
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 64,176
Cash overdraft due to Custodian 1,143,831
Payable for investment securities purchased 410,280
Accrued expenses and other liabilities 20,819
1,639,106
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NET ASSETS ($) 213,085,459
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 213,123,260
Accumulated net realized gain (loss) on investments (37,811)
Accumulated gross unrealized appreciation of investments 10
--------------------------------------------------------------------------------
NET ASSETS ($) 213,085,459
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SHARES OUTSTANDING
(1 billion shares of $.001 par value Common Stock authorized) 213,123,260
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 3,274,984
EXPENSES:
Management fee--Note 2(a) 468,008
Shareholder servicing costs--Note 2(b) 115,185
Professional fees 30,517
Custodian fees 10,393
Prospectus and shareholders' reports 9,898
Registration fees 4,407
Directors' fees and expenses--Note 2(c) 4,098
Miscellaneous 4,517
TOTAL EXPENSES 647,023
Less--reduction in management fee due to
undertaking--Note 2(a) (38,012)
NET EXPENSES 609,011
INVESTMENT INCOME--NET 2,665,973
--------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION ON INVESTMENTS ($) 10
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,665,983
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000 Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 2,665,973 4,499,125
Net realized gain (loss) from investments -- (3,380)
Net unrealized appreciation
(depreciation) of investments 10 --
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,665,983 4,495,745
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (2,665,973) (4,499,125)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 PER SHARE):
Net proceeds from shares sold 183,669,299 257,745,468
Dividends reinvested 2,532,934 4,336,552
Cost of shares redeemed (147,716,792) (270,556,983)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 38,485,441 (8,474,963)
TOTAL INCREASE (DECREASE) IN NET ASSETS 38,485,451 (8,478,343)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 174,600,008 183,078,351
END OF PERIOD 213,085,459 174,600,008
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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.
<TABLE>
Six Months Ended
March 31, 2000 Year Ended September 30,
-----------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .014 .024 .029 .029 .029 .033
Distributions:
Dividends from
investment income--net (.014) (.024) (.029) (.029) (.029) (.033)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 2.85(a) 2.44 2.89 2.93 2.94 3.35
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .65(a) .63 .65 .65 .63 .45
Ratio of net investment income
to average net assets 2.84(a) 2.41 2.85 2.89 2.90 3.31
Decrease reflected in
above expense ratios
due to undertakings by
The Dreyfus Corporation .04(a) .12 .20 .04 .03 .18
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Net Assets,
end of period ($ x 1,000) 213,085 174,600 183,078 181,930 190,027 232,932
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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, 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 (Unaudited) (CONTINUED)
Under the terms of the custody agreement, the fund received net earnings credits
of $1,701 during the period ended March 31, 2000 based on available cash
balances left on deposit. Income earned under this arrangement is included in
interest income.
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 $35,000 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to September 30, 1999. 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 and $1,000
expires in fiscal 2007.
At March 31, 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 March 31, 2000 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, 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 $38,012
during the period ended March 31, 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 March 31, 2000, the fund was charged $74,702 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 March 31, 2000, the fund was charged $24,780 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
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 101SA003
