LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus
Michigan Municipal Money Market Fund, Inc. For the fiscal year ended
September 30, 1994, the yield provided by the Fund was 2.22%. The effective
yield was 2.25% after taking into account the effect of compounding.* Income
dividends of approximately $.02 per share paid during the period were exempt
from Federal and State of Michigan personal income taxes.**
Since our last reporting, the Federal Reserve Board has taken action
three separate times toward a more restrictive stance. In total, since the
beginning of 1994, the Federal Funds rate has been raised 175 basis points
(from 3% to 4.75%). With each of these movements it has become increasingly
obvious that Federal Reserve policy directives have been put into place to
stave off potential inflationary concerns. Recent economic indicators have
been given even closer than normal scrutiny as market participants attempt to
discern if and when the next Fed tightening will occur. There is still
uncertainty as to when the Federal Reserve Board will take further action to
increase short-term rates. However, if economic data shows continued
strength, then it is quite likely that there will be another tightening by
the Federal Reserve Board before year end.
While actions taken by the Fed have caused an overall increase in
short-term rates, yields available in the tax exempt money markets were as
much affected by the supply and demand conditions in our marketplace.
Technical factors (i.e., supply/demand) caused volatility in the short-term
market in late June and early July. Approximately $7.5 billion in outstanding
securities matured in late June, placing strong downward pressure on rates as
the supply of short-term paper decreased substantially. However, in early to
mid-July, approximately $12 billion in new securities were issued. As a
result, yields on these issues trended higher in order to attract additional
buyers and to help absorb the additional supply. Often during these times of
temporary market weakness, we attempt to add to our commitments in the
nine-month to one-year range to capture these attractive rates. This, coupled
with the Federal Reserve Board's repeated actions to raise the Federal Funds
target, has provided attractive buying opportunities over the past six-month
period. As a result, the average maturity of your portfolio has increased
from 47 days to 68 days since late March. Any purchases made to enhance the
yield in your Fund continue to be made in accordance with our strict credit
quality guidelines.
We have structured your portfolio to enable the Fund to take advantage of
any further increase in short-term rates. In addition, the Fund is well
positioned to benefit from the temporary rise in rates we traditionally
witness at year end. To the extent that Michigan-exempt paper becomes
available, we will selectively commit to those issues that we think will
enhance your Fund's return.
We have included a current Statement of Investments and recent financial
statements for your review and look forward to serving your investment needs
in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 13, 1994
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
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DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
------------- -------------
<S> <C> <C>
MICHIGAN--98.2%
Birmingham, EDR, VRDN (Brown Street Association Project)
3.925% (LOC; Bankers Trust) (a,b)....................................... $ 2,000,000 $ 2,000,000
City of Detroit, TAN:
4%, Series A, 12/1/94 (LOC; National Bank of Detroit) (b)............... 1,000,000 1,001,649
4.25%, Series B, 5/1/95 (LOC; National Bank of Detroit) (b)............. 1,000,000 1,003,658
Grand Rapids Economic Development Corp., Revenue, VRDN:
(Amway/Grand Plaza Hotel) 3.70% (LOC; Old Kent Bank and Trust) (a,b).... 1,000,000 1,000,000
Limited Obligation, Refunding (Calder)
3.70%, Series A (LOC; Old Kent Bank and Trust) (a,b).................. 1,000,000 1,000,000
Kalamazoo County Economic Development Corp., Industrial and Economic
Development Revenue, VRDN (WBC Properties Limited Project)
4.20% (LOC; Old Kent Bank and Trust) (a,b).............................. 3,000,000 3,000,000
State of Michigan, School Loan Notes 3.50%, 10/28/94........................ 4,000,000 4,001,452
Michigan Housing Development Authority:
LOR, Refunding, VRDN (Harbortown Limited)
3.675% (LOC; Bankers Trust) (a,b)..................................... 1,000,000 1,000,000
MFHR, CP 3.20%, Series A, 10/12/94 (LOC; Sanwa Bank) (b)................ 2,000,000 2,000,000
Michigan Job Development Authority, PCR, VRDN
(Mazda Motor Manufacturing USA Corp. Project) 3.95% (LOC; Sumitomo Bank) (a,b) 3,000,000 3,000,000
Michigan Municipal Bond Authority, Revenue:
Notes 4.75%, Series B, 7/20/95.......................................... 3,500,000 3,520,188
RAN 4.25%, Series A, 5/5/95............................................. 7,000,000 7,022,519
Michigan Strategic Fund:
LOR, VRDN:
3.80%, Series C-1 (LOC; Comerica Bank) (a,b).......................... 2,350,000 2,350,000
(Coil Center Corp. Project) 4.55% (LOC; Tokai Bank) (a,b)............. 1,000,000 1,000,000
(Dow Chemical Co. Project) 3.90% (Corp. Guaranty; Dow Chemical Co.) (a) 900,000 900,000
(Fritz and Caroline Huebner Trust/Plascore)
3.80%, Series B-2 (LOC; Comerica Bank) (a,b)...................... 975,000 975,000
(Hi-Lex Controls Inc. Project) 3.80% (LOC; Bank of Tokyo) (a,b)....... 2,900,000 2,900,000
(K&M Machine Fabric) 3.80%, Series A-4 (LOC; Comerica Bank) (a,b)..... 1,250,000 1,250,000
Refunding:
(Consumer Power Co. Project)
3.60%, Series A (LOC; Canadian Imperial Bank of Commerce) (a,b). 1,000,000 1,000,000
(Louisiana-Pacific Corp.)
3.75% (LOC; Wachovia Bank) (a,b)................................ 2,600,000 2,600,000
(Thorn Apple Valley Inc. Project) 4.30% (LOC; Old Kent Bank and Trust) (a,b) 1,550,000 1,550,000
PCR:
CP (Dow Chemical Co. Project)
3.40%, 12/16/94 (Corp. Guaranty; Dow Chemical Co.)................ 1,800,000 1,800,000
VRDN, Refunding (Consumer Power Co. Project)
3.45%, Series A (LOC; Union Bank of Switzerland) (a,b)............ 2,700,000 2,700,000
Midland County Economic Development Corp., Economic Development,
LOR, VRDN (Dow Chemical Co. Project)
3.90%, Series A (Corp. Guaranty; Dow Chemical Co.) (a).................. 4,000,000 4,000,000
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
MICHIGAN (CONTINUED)
Sterling Heights Economic Development Corp., LOR, Refunding,
VRDN (Sterling Shopping Center) 3.95% (LOC; National Bank of Detroit) (a,b) $ 1,475,000 $ 1,475,000
Wayne-Westland Communities Schools 4.25%, 4/24/95........................... 1,000,000 1,002,990
U.S. RELATED--1.8%
Puerto Rico Industrial, Medical and Environmental Pollution Control
Facilities
Financing Authority, Revenue 4%, 9/1/95 (LOC; ABN-Amro Bank) (b)........ 1,000,000 1,000,890
-------------
TOTAL INVESTMENTS (cost $56,053,346)........................................ $56,053,346
============
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SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
CP Commercial Paper PCR Pollution Control Revenue
EDR Economic Development Revenue RAN Revenue Anticipation Notes
LOC Letter of Credit TAN Tax Anticipation Notes
LOR Limited Obligation Revenue VRDN Variable Rate Demand Notes
MFHR Multi-Family Housing Revenue
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<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- -------------------- ----------------------
<S> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 70.4%
Aaa/Aa, A1 (d) AAA/AA (d) 17.1
Not Rated (e) Not Rated (e) 12.5
--------
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, 1994, 56.2% of the
Fund's net assets are backed by letters of credit issued by domestic
banks and foreign banks, of which Old Kent Bank and Trust provided
letters of credit to 10.9% 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) 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 Fund's Board of Directors to be
of comparable quality to those rated securities in which the Fund may
invest.
(f) At September 30, 1994, the Fund had $22,125,890 (36.8% of net
assets) invested in securities whose payment of principal and interest
is dependent upon revenues generated from industrial projects.
See notes to financial statements.
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DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value--Note 1(a).......................... $56,053,346
Cash.................................................................... 3,762,698
Interest receivable..................................................... 418,856
Prepaid expenses........................................................ 12,579
-------------
60,247,479
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $15,051
Accrued expenses and other liabilities.................................. 95,066 110,117
-------- -------------
NET ASSETS ................................................................ $60,137,362
=============
REPRESENTED BY:
Paid-in capital......................................................... $60,179,005
Accumulated net realized (loss) on investments.......................... (41,643)
-------------
NET ASSETS at value applicable to 60,179,005 shares outstanding
(1 billion shares of $.001 par value Common Stock authorized)........... $60,137,362
=============
NET ASSET VALUE, offering and redemption price per share
($60,137,362 / 60,179,005 shares)....................................... $1.00
======
See notes to financial statements.
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DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,877,714
EXPENSES:
Management fee--Note 2(a)............................................. $342,477
Shareholder servicing costs_Note 2(b)................................. 93,407
Professional fees..................................................... 22,270
Prospectus and shareholders' reports.................................. 14,026
Custodian fees........................................................ 9,087
Directors' fees and expenses_Note 2(c)................................ 5,161
Registration fees..................................................... 1,620
Miscellaneous......................................................... 13,855
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501,903
Less_reduction in management fee due to
undertaking_Note 2(a)............................................. 136,991
----------
TOTAL EXPENSES.................................................. 364,912
------------
INVESTMENT INCOME--NET.......................................... 1,512,802
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments--Note 1(b)........................... $ (36,398)
Net unrealized (depreciation) on investments............................ (835)
----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (37,233)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,475,569
=============
See notes to financial statements.
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DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30,
--------------------------------
1993 1994
------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 1,617,282 $ 1,512,802
Net realized (loss) on investments...................................... (1,083) (36,398)
Net unrealized appreciation (depreciation) on investments for the year.. 835 (835)
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 1,617,034 1,475,569
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net.................................................. (1,617,282) (1,512,802)
------------- -------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 67,367,953 73,677,034
Dividends reinvested.................................................... 1,446,726 1,317,328
Cost of shares redeemed................................................. (78,881,897) (87,777,102)
------------- -------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.............. (10,067,218) (12,782,740)
------------- -------------
TOTAL (DECREASE) IN NET ASSETS.................................... (10,067,466) (12,819,973)
NET ASSETS:
Beginning of year....................................................... 83,024,801 72,957,335
------------- -------------
End of year............................................................. $ 72,957,335 $ 60,137,362
============= ============
See notes to financial statements.
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DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $1.0000 $1.0000 $1.0000 $ .9999 $ .9999
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net....................... .0132 .0507 .0313 .0209 .0222
Net realized and unrealized (loss) on investments -- -_ (.0001) -_ (.0006)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .0132 .0507 .0312 .0209 .0216
------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income--net........ (.0132) (.0507) (.0313) (.0209) (.0222)
------- ------- ------- ------- -------
Net asset value, end of year................. $1.0000 $1.0000 $ .9999 $ .9999 $ .9993
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 6.07%(2) 5.19% 3.17% 2.11% 2.25%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... -_ .03% .41% .58% .53%
Ratio of net investment income to average net assets 6.21%(2) 4.87% 3.18% 2.09% 2.21%
Decrease reflected in the above expense ratios due to
undertakings by the Manager................ 2.78%(2) .74% .33% .20% .20%
Net Assets, end of year (000's Omitted)...... $19,929 $102,707 $83,025 $72,957 $60,137
- --------------------------------
(1) From July 13, 1990 (commencement of operations) to September 30, 1990.
(2) Annualized.
See notes to financial statements.
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DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and original issue discounts on investments, is
earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, 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. 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 $5,200
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1994. The
carryover does not include net realized securities losses from November 1,
1993 through September 30, 1994, which are treated, for Federal income tax
purposes, as arising in fiscal 1995. If not applied, $700 of the carryover
expires in fiscal 2000, $3,500 expires in fiscal 2001, and $1,000 expires in
fiscal 2002.
At September 30, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .50 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, during the year
ended September 30, 1994, the Manager had undertaken to waive receipt of the
management fee payable to it by the Fund in excess of an annual rate of .20
of 1% of the Fund's average daily net assets. The reduction in management
fee, pursuant to the undertaking, amounted to $136,991 for the year ended
September 30, 1994.
The Manager may modify the expense limitation percentages from time to
time, provided that the resulting expense reimbursement would not be less
than the amount required pursuant to the Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the year ended
September 30, 1994, the Fund was charged an aggregate of $23,261 pursuant to
the Shareholder Services Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $1,000.
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Michigan Municipal Money Market Fund, Inc., including the statement
of investments, as of September 30, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 1994 by correspondence with the custodian
. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Michigan Municipal Money Market Fund, Inc. at September
30, 1994, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
(Ernst & Young Signature Logo)
New York, New York
November 1, 1994
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
September 30, 1994 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Michigan residents, Michigan personal
income taxes).
(Dreyfus `D' Logo)
DREYFUS MICHIGAN MUNICIPAL
MONEY MARKET FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 102AR949
(Dreyfus Logo)
Michigan
Municipal
Money Market
Fund, Inc.
Annual Report
September 30, 1994
(Dreyfus Lion Logo)
