Dreyfus
BASIC New Jersey Municipal Money Market Portfolio
ANNUAL REPORT August 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the portfolio are subject to change at any time based on
market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The portfolio could be adversely affected if the computer systems used by The
Dreyfus Corporation and the portfolio's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the portfolio
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the portfolio's investments and its share price.
Contents
THE PORTFOLIO
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2 Letter from the President
3 Discussion of Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
12 Financial Highlights
13 Notes to Financial Statements
16 Report of Independent Auditors
17 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Portfolio
Dreyfus BASIC
New Jersey Municipal
Money Market Portfolio
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus BASIC New Jersey
Municipal Money Market Portfolio, covering the 12-month period from September 1,
1998 through August 31, 1999. 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, Jill Shaffro McGovern.
When the period began, financial crises in overseas markets produced concerns
among investors that economies in the U.S. and abroad might slow. In response,
the Federal Reserve Board reduced short-term interest rates in an attempt to
stimulate economic growth. Its strategy apparently worked, because signs of
renewed economic strength became evident early in 1999, fueling fears that
inflationary pressures might re-emerge. The Federal Reserve then reversed
course, raising short-term interest rates twice during the summer of 1999 and
effectively reversing most of last fall's interest-rate cuts.
Tax-exempt money market yields were also influenced by supply-and-demand
factors. Strong economic conditions have curtailed many municipalities' need to
borrow over the short term, reducing the available supply of tax-exempt money
market securities. Yet, investor demand remained strong from individuals seeking
to minimize their tax liabilities. This imbalance helped constrain the rise of
tax-exempt money market yields relative to taxable money market yields during
the first eight months of 1999.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus BASIC New Jersey Municipal Money Market
Portfolio.
Sincerely,
[Stephen E. Canter signature]
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 14, 1999
DISCUSSION OF PERFORMANCE
Jill Shaffro McGovern, Portfolio Manager
How did Dreyfus BASIC New Jersey Municipal Money Market Portfolio perform?
For the 12-month period ended August 31, 1999, the portfolio produced a
tax-exempt yield of 2.59%. Taking into account the effects of compounding, the
portfolio provided an effective yield of 2.62%.(1) The portfolio provided a
total return of 2.62% (2) compared to the Lipper New Jersey Tax-Exempt Money
Market Funds category average return of 2.51% over the same period.(3)
What is the portfolio's investment approach?
Our goal is to seek a high level of federal and New Jersey state tax-exempt
income while maintaining a stable $1.00 share price. We are especially vigilant
in our efforts to preserve capital.
To achieve 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 New Jersey issuers. Second, we actively manage the
portfolio' s average maturity in anticipation of interest rate trends and
supply-and-demand changes in New Jersey's short-term municipal marketplace.
For example, if we expect an increase in short-term supply as many
municipalities currently issue short-term debt, we may decrease the average
maturity of the fund to enable it to purchase new securities with higher yields.
That' s because yields tend to rise if many issuers are competing for investor
interest. New securities are generally issued with maturities in the one-year
range, which will lengthen the fund's average maturity. If we expect demand to
surge at a time when we anticipate little issuance and, therefore, lower yields,
we may increase the portfolio'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-demand considerations.
The Portfolio
DISCUSSION OF PERFORMANCE (CONTINUED)
What other factors influenced the portfolio's performance?
When the Asian currency and credit crisis spread to Russia and threatened Latin
America last summer and fall, the Federal Reserve Board and other central banks
moved quickly to soften the effects of weakening foreign economies and sustain
domestic economic growth. They did so by reducing key short-term interest rates,
which was intended to help boost economic activity and to ease less
accommodative financial conditions domestically. An additional consequence was
lower yields on money market securities.
The Federal Reserve Board's strategy was apparently successful. Evidence emerged
in 1999 that economies in Japan and Southeast Asia had begun to recover, and the
growth of the U.S. economy was stronger than most analysts expected. In the
United States, consumer confidence was at a 30-year high, and employment was
strong, with hourly wages rising.
This positive economic news raised concerns among fixed-income investors that
inflation pressures might re-emerge. In response, the Federal Reserve Board
increased short-term interest rates twice during the summer of 1999, effectively
offsetting most of last fall's rate cuts. Because the market anticipated this
change in monetary policy in the weeks before it was announced, short-term,
tax-exempt yields rose during the second quarter.
Tax-exempt money market yields did not rise as much as comparable taxable
yields, primarily because New Jersey -- and many other states -- have enjoyed
higher tax revenues during this period of economic prosperity. As a result, New
Jersey and many of its municipalities have had little need to borrow in order to
satisfy their short-term obligations. The relative lack of supply amid steady
investor demand helped constrain the rise of short-term, tax-exempt yields.
What is the portfolio's current strategy?
We have continued to focus on very high-quality, liquid money market instruments
from an array of New Jersey issuers. Some of the most frequently used
instruments include Variable Rate Demand Notes (VRDNs), which are issued by
investment banks through the securitization of longer term municipal bonds.
Because VRDNs can be redeemed at the buyer's option after either one day or
seven days, they afford the fund a high degree of liquidity as well as high
credit quality. Accordingly, as of August 31, much of the portfolio was composed
of VRDNs. The remainder was comprised primarily of tax-exempt notes.
As of August 31, the portfolio's average maturity was at 40 days. Our strategy
has been to retain the flexibility we need to capture competitive yields while
remaining capable of responding quickly to changing market conditions. We are
looking forward to the expected issuance of $850 million of commercial paper by
the state of New Jersey. As we move into the fourth quarter and await further
clarification of Fed policy, we expect to utilize the flexibility these
securities will provide.
September 14, 1999
(1) EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND REINVESTED
MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS FLUCTUATE.
AN INVESTMENT IN THE PORTFOLIO IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY
OTHER GOVERNMENT AGENCY. ALTHOUGH THE PORTFOLIO SEEKS TO PRESERVE THE VALUE OF
YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN
THE PORTFOLIO.
(2) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS. INCOME MAY BE SUBJECT TO
STATE AND LOCAL TAXES FOR NON-NEW JERSEY RESIDENTS, AND SOME INCOME MAY BE
SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS.
(3) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Portfolio
STATEMENT OF INVESTMENTS
August 31, 1999
<TABLE>
<CAPTION>
Principal
TAX EXEMPT INVESTMENTS--97.6% Amount ($) Value ($)
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Atlantic County Improvement Authority, Revenue, VRDN
(Aces Pooled Government Loan Program)
<S> <C> <C>
2.75% (LOC; Kredietbank) 4,000,000 (a) 4,000,000
Burlington County, BAN 3.50%, 6/9/2000 1,000,000 1,002,309
Essex County, TAN 3.50%, 11/18/1999 2,500,000 2,501,721
Essex County Improvement Authority, BAN 3.50%, 3/31/2000 5,000,000 5,009,818
Hudson County Improvement Authority, VRDN
(Essential Purpose Pooled Government)
3.20% (LOC; Comerica Bank) 4,700,000 (a) 4,700,000
Middlesex County, Refunding 4%, 10/1/1999 1,115,000 1,115,760
Monmouth County Improvement Authority, Revenue, VRDN
(Aces Pooled Government Loan Program)
2.80% (LOC; The Bank of New York) 5,350,000 (a) 5,350,000
Morristown, BAN 3.50%, 5/3/2000 4,900,000 4,909,492
New Jersey Economic Development Authority, VRDN:
Dock Facility Revenue, Refunding (Bayonne/IMTT Project)
2.95%, Series A (LOC; First Chicago Corp.) 7,250,000 (a) 7,250,000
EDR (Dow Chemical-El Dorado Terminal)
2.60%, Series B (LOC; Dow Chemical Co.) 3,500,000 (a) 3,500,000
Industrial and EDR (Merck and Co.) 3.55%, Series A and B 1,700,000 (a) 1,700,000
Revenue:
(Hoffman-La Roche Inc. Project)
2.75% (LOC; Bayerische Landesbank) 2,000,000 (a) 2,000,000
Thermal Energy Facilities
(Thermal Energy Limited Partnership)
2.85% (LOC; First Chicago Corp. ) 3,000,000 (a) 3,000,000
(U.S. Golf Association Project) 3.10% (LOC; PNC Bank) 2,400,000 (a) 2,400,000
Water Facilities Revenue, Refunding
(United Water New Jersey Inc. Project)
2.60%, Series A (Insured; AMBAC and Liquidity Facility;
The Bank of New York) 2,100,000 (a) 2,100,000
New Jersey Health Care Facilities Financing Authority,
Revenue, VRDN:
(Hospital Capital Asset Financing):
3.05%, Series A (LOC; Chase Manhattan Bank) 6,500,000 (a) 6,500,000
3.05%, Series D (LOC; Chase Manhattan Bank) 6,000,000 (a) 6,000,000
Refunding (Christian Health) 2.95%, Series 1997B
(LOC; Valley National Bank) 3,700,000 (a) 3,700,000
New Jersey Sports and Exposition Authority,
State Contract, VRDN
3%, Series C
(Insured; MBIA and Liquidity Facility; Credit Suisse) 9,845,000 (a) 9,845,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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New Jersey Transportation Trust Fund Authority,
Transportation System
5%, Series A, 12/15/1999 2,250,000 2,261,745
New Jersey Turnpike Authority,
Turnpike Revenue, Refunding, VRDN
2.60%, Series D (Insured; FGIC and SBPA; Societe Generale) 1,900,000 (a) 1,900,000
Port Authority of New York and New Jersey,
Special Obligation Revenue, VRDN
(Versatile Structure Obligation):
2.60%, Series 2 (LOC; Morgan Guaranty Trust Co.) 2,700,000 (a) 2,700,000
2.75%, Series 4 (LOC; Landesbank Hessen) 5,300,000 (a) 5,300,000
2.90%, Series 5 (Liquidity Facility; Bayerische Landesbank) 8,000,000 (a) 8,000,000
Salem County Pollution Control Financing Authority,
PCR, Refunding, VRDN
(Public Service Electric and Gas)
2.80% (BPA; Union Bank of Switzerland and Insured; MBIA) 5,700,000 (a) 5,700,000
Somerset County Industrial Pollution Control Financing Authority,
Revenue, Refunding, VRDN
(American Cyanamid) 2.75% (LOC; American Home Products) 4,100,000 (a) 4,100,000
Trenton, BAN 3.50%, 5/19/2000 2,700,000 2,705,550
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TOTAL INVESTMENTS (cost $109,251,395) 97.6% 109,251,395
CASH AND RECEIVABLES (NET) 2.4% 2,694,947
NET ASSETS 100.0% 111,946,342
The Portfolio
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond MBIA Municipal Bond Investors Assurance
Assurance Corporation Insurance Corporation
BAN Bond Anticipation Notes PCR Pollution Control Revenue
BPA Bond Purchase Agreement SBPA Standby Bond Purchase Agreement
EDR Economic Development Revenue TAN Tax Anticipation Notes
FGIC Financial Guaranty Insurance Company VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 87.5
AAA/AA( b) AAA/AA (b) AAA/AA (b) 4.9
Not Rated (c) Not Rated (c) Not Rated (c) 7.6
100.0
</TABLE>
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC
CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF
THE ISSUERS.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE PORTFOLIO MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 109,251,395 109,251,395
Cash 2,150,697
Interest receivable 597,456
Prepaid expenses 4,739
112,004,287
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 28,091
Accrued expenses 29,854
57,945
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NET ASSETS ($) 111,946,342
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 111,950,221
Accumulated net realized gain (loss) on investments (3,879)
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NET ASSETS ($) 111,946,342
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SHARES OUTSTANDING
(1 billion shares of $.001 par value Common Stock authorized) 111,950,221
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolio
STATEMENT OF OPERATIONS
Year Ended August 31, 1999
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INVESTMENT INCOME ($):
INTEREST INCOME 3,519,579
EXPENSES:
Management fee--Note 2(a) 579,189
Shareholder servicing costs--Note 2(b) 105,201
Professional fees 23,052
Registration fees 18,452
Custodian fees 11,813
Prospectus and shareholders' reports 6,893
Directors' fees and expenses--Note 2(c) 2,234
Miscellaneous 6,140
TOTAL EXPENSES 752,974
Less--reduction in management fee due to
undertaking--Note 2(a) (231,113)
NET EXPENSES 521,861
INVESTMENT INCOME--NET 2,997,718
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NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($) (400)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,997,318
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
--------------------------------
1999 1998
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OPERATIONS ($):
Investment income--net 2,997,718 3,819,515
Net realized gain (loss) on investments (400) (3,479)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,997,318 3,816,036
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (2,997,718) (3,819,515)
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CAPITAL STOCK TRANSACTIONS ($1.00 per share) ($):
Net proceeds from shares sold 69,013,860 79,800,472
Dividends reinvested 2,911,992 3,709,795
Cost of shares redeemed (78,601,601) (101,437,681)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (6,675,749) (17,927,414)
TOTAL INCREASE (DECREASE) IN NET ASSETS (6,676,149) (17,930,893)
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NET ASSETS ($):
Beginning of Period 118,622,491 136,553,384
END OF PERIOD 111,946,342 118,622,491
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolio
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the portfolio would have
increased (or decreased) during each period, assuming you had reinvested all
dividends and distributions. These figures have been derived from the
portfolio's financial statements.
Year Ended August 31,
---------------------------------
1999 1998 1997 1996(a)
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PER SHARE DATA ($):
<S> <C> <C> <C> <C>
Net asset value, beginning of period 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .026 .030 .031 .025
Distributions:
Dividends from investment income--net (.026) (.030) (.031) (.025)
Net asset value, end of period 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 2.62 3.01 3.17 3.38(b)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .45 .45 .36 .06(b)
Ratio of net investment income
to average net assets 2.59 2.97 3.12 3.25(b)
Decrease reflected in above expense ratios
due to undertakings by the Manager .20 .19 .27 .68(b)
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Net Assets, end of period ($ x 1,000) 111,946 118,622 136,553 100,248
(A) FROM DECEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1996.
(B) ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus BASIC New Jersey Municipal Money Market Portfolio (the "portfolio") is a
separate non-diversified series of Dreyfus BASIC Municipal Fund, Inc. (the
"fund") which is registered under the Investment Company Act of 1940, as amended
(the "Act" ), as an open-end management investment company and operates as a
series company currently offering four series including the portfolio. The
portfolio's investment objective is to provide investors with as high a level of
current income exempt from Federal and New Jersey income tax as is consistent
with the preservation of capital and maintenance of liquidity. The Dreyfus
Corporation (the "Manager" ) serves as the portfolio's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund
Services, Inc. is the distributor of the portfolio's shares, which are sold to
the public without a sales charge.
The fund accounts separately for the assets, liabilities and operations of each
series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
It is the portfolio's policy to maintain a continuous net asset value per share
of $1.00; the portfolio has adopted certain investment, portfolio valuation and
dividend and distribution policies to enable it to do so. There is no assurance,
however, that the portfolio will be able to maintain a stable net asset value
per share of $1.00.
The portfolio' 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 portfolio'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 The Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
accrual basis. Realized gain and loss from securities transactions are recorded
on the identified cost basis. Cost of investments represents amortized cost.
Under the terms of the custody agreement, the portfolio received net earnings
credits of $13,002 during the period ended August 31, 1999 based on available
cash balances left on deposit. Income earned under this arrangement is included
in interest income.
The portfolio 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 portfolio.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the portfolio 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 portfolio 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 portfolio not to
distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the portfolio 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 portfolio has an unused capital loss carryover of $3,479 available for
Federal income tax purposes to be applied against future net securities profits,
if any realized subsequent to August 31, 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, $352
of carryover expires in fiscal 2006 and $3,127 expires in fiscal 2007.
At August 31, 1999, 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 portfolio's average
daily net assets and is payable monthly. The Manager has undertaken, until such
time as it gives shareholders at least 90 days' notice to the contrary, to
reduce the management fee paid by the portfolio, to the extent that the
portfolio' s aggregate expenses, exclusive of taxes, brokerage, interest on
borrowings, commitment fees and extraordinary expenses, exceed an annual rate of
. 45 of 1% of the value of the portfolio's average daily net assets. The
reduction in management fee, pursuant to the undertaking, amounted to $231,113
during the period ended August 31, 1999.
(B) Under the Shareholder Services Plan, the portfolio 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 portfolio'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 portfolio and providing reports and other information,
and services related to the maintenance of shareholder accounts. During the
period ended August 31, 1999, the portfolio was charged $91,287 pursuant to the
Shareholder Services Plan.
The portfolio 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 portfolio. During the
period ended August 31, 1999, the portfolio was charged $8,776 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 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
The Portfolio
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus BASIC New Jersey Municipal Money Market Portfolio
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus BASIC New Jersey Municipal Money Market
Portfolio (one of the Series constituting Dreyfus BASIC Municipal Fund, Inc.) as
of August 31, 1999, 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 Portfolio management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of August 31, 1999 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 BASIC New Jersey Municipal Money Market Portfolio at August 31, 1999,
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.
New York, New York
October 4, 1999
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the portfolio hereby designates all the
dividends paid from investment income-net during the fiscal year ended August
31, 1999 as exempt-interest dividends (not subject to regular Federal and, for
individuals who are New Jersey residents, New Jersey personal income taxes).
The Portfolio
For More Information
Dreyfus BASIC New Jersey Municipal Money Market
Portfolio
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
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
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) 1999 Dreyfus Service Corporation 127AR998
November 1, 1999
Office of Records
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, NW
Washington, DC 20549
Re: Dreyfus BASIC Municipal Fund, Inc.: Dreyfus BASIC Municipal Money
Market Portfolio File No. 811-6377
Gentlemen:
Transmitted for filing is one (1) copy of the Annual Report to
Shareholders for the above-referenced Portfolio, as of August 31, 1999, filed in
compliance with the provisions of Section 30 of the Investment Company Act of
1940.
Very truly yours,
Christine Brennan
