<PAGE>
Dreyfus
Florida
Intermediate
Municipal Bond
Fund
Annual Report
December 31, 1997
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
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Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Florida
Intermediate Municipal Bond Fund for its 12-month reporting period ended
December 31, 1997. Your Fund produced a total return, including share price
changes and dividend income generated, of 6.35%,* and a tax-free distribution
rate per share of 4.37%.**
Economic Review
Inflation seems to have lost its terrors. Not since the oil price collapse in
1986 has it been so restrained. As the economy approached the end of its seventh
uninterrupted year of expansion, inflation seemed to become even more subdued.
During the last quarter of 1997, the 12-month pace of consumer price increases
fell below the 2% level. Producer prices actually fell at an annual rate of 1.2%
over the first 11 months of the year.
The ongoing fear in financial markets has been that the Federal Reserve
Board's (the "Fed") unremitting fight against inflation could lead to further
increases in interest rates. Yet the Federal Open Market Committee (FOMC), the
policy-making arm of the Fed, has raised interest rates just once in over two
years, a period roughly coinciding with the latest surge of economic growth. The
last increase occurred on March 25, 1997 when the FOMC increased the Federal
Funds rate by a modest one quarter of a percentage point to 5.50%. (The Federal
Funds rate is the rate of interest that banks charge one another for overnight
loans.) Investor concern about additional monetary restraint centered on the low
unemployment rate of just 4.6%, a 24-year low. In particular, there were fears
that wages would rise at a rate that could rekindle inflation.
Not surprisingly, an almost ideal economic climate -- plentiful jobs, low
interest rates and dwindling inflation -- has put consumers in an ebullient
mood. Though holiday retail sales were below expectations, spending in the third
quarter grew at the strongest pace in five years. Since consumer spending
accounts for two thirds of all economic activity, consumer attitudes are
important indicators of future economic conditions. The Conference Board (a
business-sponsored research group) reported in December that its Index of
Consumer Confidence rose to its highest level since 1969. So far, the serious
economic developments in Asia have not had an inhibiting effect on U.S. consumer
attitudes.
The Asian financial crisis, while bound to affect the import/export segment
of our economy, may also afford the Fed additional flexibility in implementing
monetary policy. While the Fed is concerned about the potential resurgence of
inflation, lower-priced Asian imports may counteract upward pressure on the rate
of U.S. inflation. Moreover, with our economic expansion mature by any
historical precedent (it's the second longest peacetime expansion in this
century), a slackening in overseas demand for U.S. products, combined with the
lower-priced imports, may help contain economic growth without additional
monetary tightening by the Fed. Regardless, given current economic conditions,
we believe it is unlikely that the Fed would raise interest rates and further
unsettle the international financial markets while Asian countries struggle to
stabilize their currencies in relation to the U.S. dollar. Perhaps the biggest
uncertainty ahead is the extent to which the Asian turmoil will affect the U.S.
economy. We are particularly vigilant for developments abroad that might have
either negative or positive consequences for the portfolio. The trouble in Asia
shows the close and sensitive relationship between our economy and the economies
around the globe.
Market Environment
During the year, the Florida market took its cues from the direction of the
economy and continually fine-tuned price levels based on the releases of
financial news and other economic data. Daily, it seemed, news suggested that
the economy was strengthening or weakening, or that the Fed was about to tighten
or ease interest rates, and the market would react accordingly. Issuers in the
state of Florida sold their debt in an attempt to lower their cost of borrowing.
Over the past 12 months we have seen periods of price volatility, but the
persistent trend in prices has been gradually upward. There were very few
instances during the fiscal year when bids flagged completely; for the most
part, retail buyers and institutional
<PAGE>
portfolios supported the market throughout the year. Occasionally, buyers
would absent themselves from the market, but most often the causes were a lack
of supply or declining yield levels, rather than declining credit-quality or
economic conditions. When yields would decline, the Fund was among this group
of absentees. It seemed much more prudent to retain a solid level of income
than to replace higher yielding holdings with lower yielding new issues.
Not to be overlooked is the improvement in the municipal universe's
financial condition, which was aided by our national economic expansion:
the creditworthiness of municipalities, at both the state and local levels,
has risen to record levels. Increased tax receipts, along with improved
financial management practices and better fiscal discipline, should be
credited with bettering the municipalities' financial picture and helping
to maintain a positive municipal market environment.
Portfolio Overview
Throughout 1997 we have held steadfast in our decision to maintain a somewhat
aggressive position with the portfolio despite the tone of the municipal market
which was, at times, fraught with uncertainty. We felt that attempting to
predict market changes would be difficult at best. Instead, we focused our
efforts on finding value within the secondary market. This was accomplished by
buying slightly longer maturities with a focus on discount bonds to
counterbalance the income - producing premium bonds already owned. This was
difficult to accomplish given the limited availability of longer-maturity,
liquid, discount bonds with good structural characteristics. When desirable
bonds were found, the portfolio sold current coupon bonds with short calls at a
profit to provide funds for reinvestment.
We plan to continue to manage the portfolio utilizing a similar strategy as
we enter 1998. The Fund is well balanced across the intermediate coupon range.
The market had a very positive tone until late in the fourth quarter but may
slow down as we get into the latter part of January. Going forward, it is
anticipated that the market may become volatile again, although at the present
time we are without any concrete signs alluding to its direction. We expect that
Florida securities will continue to be well sought-after by national funds, as
well as other Florida bond funds.
Our primary tasks which will guide our portfolio management decisions are to
earn a high level of current income to the extent it is consistent with the
preservation of capital, while at the same time maintaining high credit quality.
Included in this report is a series of detailed statements outlining the
portfolio's holdings and financial condition. We hope you find them informative.
Please know that we greatly appreciate your continued confidence in the
portfolio and in The Dreyfus Corporation.
Sincerely,
/s/ Richard J. Moynihan
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
January 20, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
Income is subject to state and local taxes for non-Florida residents.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period, divided by the net asset value per share
at the end of the period, adjusted for any capital gain distributions. Some
income may be subject to the Federal Alternative Minimum Tax for certain
shareholders.
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund December 31, 1997
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
Dollars
$15,618
Lehman Brothers
10-Year Municipal
Bond Index*
[CHART GOES HERE]
$14,699
Dreyfus
Florida Intermediate
Municipal Bond Fund
*Source: Lehman Brothers
Average Annual Total Return
- -------------------------------------------------------------------------------
One Year Ended Five Years Ended From Inception (1/21/92)
December 31, 1997 December 31, 1997 to December 31, 1997
----------------- ----------------- -----------------------
6.35% 6.09% 6.69%
- ---------------------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Florida
Intermediate Municipal Bond Fund on 1/21/92 (Inception Date) to a $10,000
investment made in the Lehman Brothers 10-Year Municipal Bond Index on that
date. For comparative purposes, the value of the Index on 1/31/92 is used as
the beginning value on 1/21/92. All dividends and capital gain distributions
are reinvested.
The Fund invests primarily in Florida municipal securities and maintains a
portfolio with a weighted-average maturity ranging between 3 and 10 years.
The Fund's performance shown in the line graph takes into account fees
and expenses. Unlike the Fund, the Lehman Brothers 10-Year Municipal Bond Index
is an unmanaged total return performance benchmark for the investment-grade,
geographically unrestricted 10-year tax exempt bond market, consisting of
municipal bonds with maturities of 9-12 years. The Index does not take into
account charges, fees and other expenses and is not limited to investments
principally in Florida municipal obligations. These factors, coupled with the
potentially longer maturity of the Index, can contribute to the Index
potentially outperforming the Fund. Further information relating to Fund
performance, including expense reimbursements, if applicable, is contained in
the Financial Highlights section of the Prospectus and elsewhere in this report.
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
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<TABLE>
<CAPTION>
Statement of Investments December 31, 1997
Principal
Long-Term Municipal Investments--95.1% Amount Value
- ------------------------------------------------------------------------------- -------------- ------------
<S> <C> <C>
Florida--91.7%
Alachua County Health Facilities Authority, Health Facilities Revenue:
Refunding (Santa Fe Health Systems Project)
6.875%, 11/15/2002 (Prerefunded 11/15/2000) (a)............................ $ 2,895,000 $ 3,099,532
(Shands Teaching Hospital) 5.20%, 12/1/2007 (Insured; MBIA).................. 1,700,000 1,813,917
Bay County, RRR, Refunding:
6%, 7/1/2001 (Insured; MBIA)................................................. 1,250,000 1,332,587
6.10%, 7/1/2002 (Insured; MBIA).............................................. 2,095,000 2,269,178
6.20%, 7/1/2003 (Insured; MBIA).............................................. 1,250,000 1,374,862
Boca Raton, Beach Aquisition Revenue 6.125%, 1/1/2006 (Insured; MBIA).......... 2,100,000 2,360,148
Boynton Beach, Utility Systems Revenue 5.375%, 11/1/2008 (Insured; FGIC)....... 1,000,000 1,078,760
Brevard County Health Facilities Authority, Revenue, Refunding:
(Holmes Regional Medical Center Project) 5.30%, 10/1/2007 (Insured; MBIA).... 3,000,000 3,214,440
(Wuesthoff Memorial Hospital) 6.90%, 4/1/2002................................ 2,500,000 2,763,600
Brevard County Housing Finance Authority, MFHR, Refunding
(Windover Oaks) 6.90%, 2/1/2027.............................................. 2,000,000 2,282,080
Broward County, Refunding 6.125%, 1/1/2006..................................... 1,950,000 2,113,156
Broward County School Board, COP:
6%, 7/1/2001 (Insured; AMBAC)................................................ 1,000,000 1,066,070
6.10%, 7/1/2002 (Insured; AMBAC)............................................. 2,000,000 2,166,280
Broward County School District, Refunding:
5.80%, 2/15/2002............................................................. 2,000,000 2,129,980
5.30%, 2/15/2004............................................................. 5,000,000 5,293,400
6%, 2/15/2004................................................................ 3,000,000 3,241,560
Celebration Community Development District, Special Assessment
5.60%, 5/1/2004 (Insured; MBIA).............................................. 5,730,000 6,162,787
Charlotte County, Utility Revenue, Refunding 5.40%, 10/1/2008 (Insured; FGIC).. 1,210,000 1,307,502
Collier County, Capital Improvement Revenue, Refunding:
5.75%, 10/1/2006 (Insured; MBIA)............................................. 1,985,000 2,182,329
5.85%, 10/1/2007 (Insured; MBIA)............................................. 2,105,000 2,318,005
Coral Springs, Water and Sewer Revenue, Refunding
5.50%, 9/1/2003 (Insured; FGIC).............................................. 1,425,000 1,518,209
Dade County:
Aviation Revenue:
6%, 10/1/2003 (Insured; MBIA).............................................. 2,000,000 2,176,740
6.15%, 10/1/2004 (Insured; MBIA)........................................... 2,000,000 2,186,060
Guaranteed Entitlement Revenue, Refunding
Zero Coupon, 2/1/2000 (Insured; MBIA)...................................... 930,000 856,344
Public Facilities Revenue, Refunding
(Jackson Memorial Hospital) 5.20%, 6/1/2004 (Insured; MBIA)................ 2,750,000 2,898,747
(Seaport) 5.90%, 10/1/2002 (Insured; AMBAC).................................. 2,470,000 2,645,913
Solid Waste System, Special Obligation Revenue, Refunding
6%, 10/1/2006 (Insured; AMBAC)............................................. 2,565,000 2,859,206
</TABLE>
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Dreyfus Florida Intermediate Municipal Bond Fund
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<TABLE>
<CAPTION>
Statement of Investments (continued) December 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- -------------- ------------
<S> <C> <C>
Florida (continued)
Dade County Health Facilities Authority, HR, Refunding
(North Shore Medical Center Project):
5.90%, 8/15/2001 (Insured; AMBAC).......................................... $ 1,725,000 $ 1,831,726
6%, 8/15/2002 (Insured; AMBAC)............................................. 1,760,000 1,896,576
Daytona Beach, Water and Sewer Revenue, Refunding
5.75%, 11/15/2008 (Insured; AMBAC)........................................... 2,270,000 2,434,484
Deerfield Beach, Water and Sewer Improvement Revenue, Refunding
6.125%, 10/1/2003 (Insured; FGIC)............................................ 1,180,000 1,298,035
Delray Beach, Water and Sewer Revenue, Refunding
5.25%, 10/1/2009 (Insured; AMBAC)............................................ 2,500,000 2,677,750
Duval County School District, Refunding:
5.90%, 8/1/2002 (Insured; AMBAC)............................................. 4,500,000 4,842,945
6.25%, 8/1/2005 (Insured; AMBAC)............................................. 2,400,000 2,632,200
First Florida Governmental Financing Commission, Revenue:
6.30%, 7/1/2002 (Insured; MBIA).............................................. 1,000,000 1,091,290
Refunding 6%, 7/1/2003 (Insured; MBIA)....................................... 3,000,000 3,270,420
Florida, Pollution Control 5.90%, 7/1/2002..................................... 2,500,000 2,675,275
Florida Board of Education, Capital Outlay (Public Education):
6%, 1/1/2005................................................................. 8,100,000 8,960,868
5.50%, 6/1/2010.............................................................. 5,725,000 6,122,201
Refunding:
5.90%, 6/1/2005............................................................ 1,295,000 1,391,568
5%, 6/1/2009............................................................... 2,500,000 2,620,800
Florida Department of Transportation (Right of Way):
5.75%, 7/1/2004.............................................................. 3,040,000 3,301,106
5.75%, 7/1/2005.............................................................. 2,375,000 2,597,775
Florida Division of Bond Finance Department, General Services Revenues:
(Department of Environmental-Preservation 2000):
5.25%, 7/1/2009 (Insured; MBIA)............................................ 4,300,000 4,531,770
5%, 7/1/2010 (Insured; AMBAC).............................................. 5,000,000 5,137,800
(Department of Natural Resources-Preservation 2000):
6.40%, 7/1/2003 (Insured; AMBAC, Prerefunded 7/1/2001) (a)................. 3,450,000 3,772,678
6.10%, 7/1/2004 (Insured; MBIA)............................................ 2,420,000 2,611,349
Florida Municipal Power Agency, Revenue:
(All-Requirements Power Supply Project):
5.80%, 10/1/2001 (Insured; AMBAC).......................................... 1,000,000 1,063,470
5.90%, 10/1/2002 (Insured; AMBAC).......................................... 1,000,000 1,078,690
Refunding (Saint Lucie Project) 5.40%, 10/1/2005 (Insured; FGIC)............. 3,500,000 3,723,090
Florida Sunshine Skyway, Revenue, Refunding:
6.10%, 7/1/2001.............................................................. 1,650,000 1,761,012
6.20%, 7/1/2002.............................................................. 1,315,000 1,414,703
Fort Myers, Improvement Revenue
(Special Assessment-Geo Area 24) 7.05%, 7/1/2005 (Prerefunded 7/1/2003) (a).. 905,000 1,027,410
</TABLE>
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Dreyfus Florida Intermediate Municipal Bond Fund
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<TABLE>
<CAPTION>
Statement of Investments (continued) December 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
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Florida (continued)
<S> <C> <C>
Greater Orlando Aviation Authority, Orlando Airport Facilities Revenue:
6.25%, 10/1/2006 (Insured; FGIC)............................................. $ 4,600,000 $ 5,025,270
Refunding 6.10%, 10/1/2002 (Insured; FGIC)................................... 2,000,000 2,174,500
Gulf Breeze, Revenue (Capital Funding) 3.496%, 12/1/2017 (Insured; MBIA) (b)... 8,500,000 8,372,500
Halifax Hospital Medical Center, HR, Refunding
5%, 10/1/2010 (Insured; MBIA)................................................ 1,750,000 1,798,930
Hernando County School District, Refunding:
6.10%, 8/1/2003 (Insured; MBIA).............................................. 2,000,000 2,192,500
5.50%, 9/1/2004 (Insured; MBIA).............................................. 1,580,000 1,698,927
Hialeah Gardens, IDR, Refunding (Waterford Convalescent)
7.875%, 12/1/2007............................................................ 1,000,000 1,092,100
Hillsborough County Aviation Authority, Revenue, Refunding
(Tampa International Airport) 5.45%, 10/1/2002 (Insured; AMBAC).............. 3,295,000 3,484,990
Hillsborough County Hospital Authority, HR, Refunding
(Tampa General Hospital Project) 6.125%, 10/1/2002 (Insured; FSA)............ 3,350,000 3,639,842
Indian Trace Community Development District, Refunding
(Water Management-Special Benefit) 5.375%, 5/1/2005 (Insured; MBIA).......... 2,265,000 2,425,883
Jacksonville, District Water and Sewer Revenue
5%, 10/1/2020 (Insured; MBIA, Prerefunded 10/1/2008) (a)..................... 3,000,000 3,159,240
Jacksonville, Revenue, Refunding:
Excise Taxes:
4.875%, 10/1/2007 (Insured; FGIC).......................................... 2,500,000 2,601,200
6.50%, 10/1/2008 (Insured; AMBAC).......................................... 1,000,000 1,109,870
Guaranteed Entitlement 5.50%, 10/1/2002 (Insured; AMBAC)..................... 1,400,000 1,486,198
Jacksonville Beach, Utilities Revenue, Refunding
5.125%, 10/1/2004 (Insured; MBIA)............................................ 1,500,000 1,577,565
Jacksonville Electric Authority, Revenue, Refunding:
Electric Systems 5.40%, 10/1/2004............................................ 2,250,000 2,382,998
(Saint John's River) 5%, 10/1/2004........................................... 4,000,000 4,172,920
Kissimmee Utility Authority, Electric System Improvement Revenue, Refunding
5%, 10/1/2003 (Insured; FGIC)................................................ 2,000,000 2,086,040
Lake County, Resource Recovery Industrial Development Revenue, Refunding
(NRG/Recovery Group) 5.85%, 10/1/2009........................................ 6,000,000 6,245,640
Lake Worth, Refunding 5.80%, 10/1/2005 (Insured; AMBAC)........................ 1,000,000 1,101,710
Lakeland, Electric and Water Revenue, Refunding 5.90%, 10/1/2007............... 2,385,000 2,671,987
Lee County Hospital Board of Directors, HR, Refunding
(Lee Memorial Hospital Project) 5.80%, 4/1/2002 (Insured; MBIA).............. 2,730,000 2,910,235
Melbourne, Water and Sewer Revenue, Refunding
6%, 10/1/2001 (Insured; FGIC)................................................ 745,000 797,426
Miami, Refunding 5.80%, 12/1/2005 (Insured; FGIC).............................. 1,340,000 1,474,938
</TABLE>
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Dreyfus Florida Intermediate Municipal Bond Fund
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<TABLE>
<CAPTION>
Statement of Investments (continued) December 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
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Florida (continued)
<S> <C> <C>
Miami Beach, Water and Sewer Revenue 5.10%, 9/1/2005 (Insured; FSA)............ $ 1,500,000 $ 1,583,295
Miami Beach Health Facilities Authority, HR, Refunding
(Mount Sinai Medical Center Project) 5.70%, 11/15/2003 (Insured; FSA)........ 1,500,000 1,619,985
Nassau County, PCR, Refunding (ITT Rayonier, Inc. Project)
5.90%, 7/1/2005.............................................................. 1,075,000 1,155,163
North Broward Hospital District, HR, Refunding:
6.10%, 1/1/2002 (Insured; MBIA).............................................. 2,050,000 2,200,634
6.125%, 1/1/2003 (Insured; MBIA, Prerefunded 1/1/2002) (a)................... 2,000,000 2,180,860
Ocean Highway and Port Authority, Revenue
6.25%, 12/1/2002 (LOC; ABN Amro Bank) (c).................................... 3,500,000 3,794,595
Orange County, Revenue:
Solid Waste Facility 6%, 10/1/2002 (Insured; FGIC)........................... 1,000,000 1,082,970
Tourist Development Tax 6.15%, 10/1/2002 (Insured; AMBAC).................... 2,455,000 2,674,452
Water and Wastewater, Refunding 5.80%, 10/1/2002 (Insured; AMBAC)............ 2,080,000 2,231,070
Orange County Health Facilities Authority, HR, Refunding
(Orlando Regional Healthcare) 5.50%, 11/1/2003 (Insured; MBIA)............... 2,000,000 2,134,220
Orlando, Capital Improvement Special Revenue 5.50%, 10/1/2003.................. 2,000,000 2,122,720
Orlando Utilities Commission, Water and Electric Revenue, Refunding:
5.60%, 10/1/2003............................................................. 10,000,000 10,723,700
5.75%, 10/1/2005............................................................. 2,000,000 2,192,720
5.80%, 10/1/2006............................................................. 5,930,000 6,561,130
5.80%, 10/1/2007............................................................. 1,175,000 1,304,191
Osceola County, Revenue:
Gas Tax Improvement, Refunding:
5.50%, 4/1/2003 (Insured; FGIC)............................................ 1,365,000 1,452,360
5.65%, 4/1/2004 (Insured; FGIC)............................................ 1,445,000 1,556,973
Transportation (Osceola Parkway Project)
5.90%, 4/1/2007 (Insured; MBIA)............................................ 1,300,000 1,398,449
Osceola County Industrial Development Authority, Revenue
(Community Provider Pooled Loan Program) 8%, 7/1/2004........................ 3,890,000 4,244,768
Palm Beach County, Revenue:
Criminal Justice Facilities, Refunding 5.375%, 6/1/2010 (Insured; FGIC)...... 1,825,000 1,969,248
Water and Sewer 5%, 10/1/2010 (Insured; MBIA)................................ 7,320,000 7,492,972
Palm Beach County School District, Refunding 6%, 8/1/2006 (Insured; AMBAC)..... 1,000,000 1,076,060
Palm Beach County Solid Waste Authority, Revenue, Refunding
5.50%, 10/1/2006 (Insured; AMBAC)............................................ 3,000,000 3,261,150
Pasco County, Water and Sewer Revenue, Refunding:
5.50%, 10/1/2002 (Insured; FGIC)........................................... 2,500,000 2,653,925
5.40%, 10/1/2003 (Insured; FGIC)........................................... 1,500,000 1,594,935
Polk County, Capital Improvement Revenue, Refunding
6%, 12/1/2002 (Insured; MBIA)................................................ 1,900,000 2,062,716
</TABLE>
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
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<TABLE>
<CAPTION>
Statement of Investments (continued) December 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- -------------- -------------
Florida (continued)
<S> <C> <C>
Punta Gorda, Utilities Revenue, Refunding 5.50%, 1/1/2002 (Insured; AMBAC)..... $ 1,315,000 $ 1,384,761
Reedy Creek Improvement District, Utilities Revenue
6.30%, 10/1/2003 (Insured; MBIA, Prerefunded 10/1/2001) (a).................. 1,000,000 1,086,260
Saint John's County, Water and Sewer Revenue, Refunding
5%, 6/1/2008 (Insured; MBIA)................................................. 1,020,000 1,073,887
Saint John's County Industrial Development Authority, HR
(Flagler Hospital Project) 5.80%, 8/1/2003................................... 1,000,000 1,052,920
Saint Lucie County School District, Refunding 5.90%, 7/1/2002 (Insured; AMBAC). 1,780,000 1,913,482
Saint Petersburg, Public Improvement Revenue, Refunding
6%, 2/1/2002 (Insured; MBIA)................................................. 1,500,000 1,609,005
Sarasota County, Refunding:
6.25%, 10/1/2004 (Insured; FGIC)............................................. 1,505,000 1,636,387
Utilities Systems Revenue 5.60%, 10/1/2004 (Insured; FGIC)................... 2,345,000 2,519,679
Seminole County School District, Refunding 6%, 8/1/2003 (Insured; MBIA)........ 2,500,000 2,728,300
Sunrise, Revenue:
Public Facilities:
6.20%, 10/1/2004 (Insured; MBIA)........................................... 2,000,000 2,189,680
6.50%, 10/1/2007 (Insured; MBIA)........................................... 1,000,000 1,109,870
Refunding 6%, 10/1/2001 (Insured; MBIA).................................... 1,000,000 1,070,370
Utility System, Refunding 5.20%, 10/1/2005 (Insured; AMBAC).................. 1,395,000 1,482,104
Tallahassee, Health Facilities Revenue, Refunding
(Tallahassee Memorial Regional Medical Center):
5.50%, Series A, 12/1/2002 (Insured; MBIA)................................. 1,010,000 1,072,347
5.50%, Series B, 12/1/2002 (Insured; MBIA)................................. 1,000,000 1,061,730
Tampa, Revenue:
(Aquarium, Inc. Project) 7.25%, 5/1/2005 (Prerefunded 5/1/2002) (a).......... 1,200,000 1,360,608
Refunding (Alleghany Health Systems-Saint Mary's)
5.75%, 12/1/2007 (Insured; MBIA)........................................... 2,750,000 2,985,455
Water and Sewer 6.30%, 10/1/2006............................................. 1,590,000 1,734,595
Volusia County:
Sales Tax Improvement Revenue, Refunding
6.40%, 10/1/2007 (Insured; MBIA)........................................... 2,000,000 2,184,900
Special Assessment (Bethune Beach Wastewater Project):
6.60%, 7/1/2001............................................................ 1,045,000 1,061,898
6.875%, 7/1/2005........................................................... 835,000 905,850
Volusia County Educational Facility Authority, Revenue
(Embry-Riddle Aeronautical University):
5.875%, 10/15/2002 (Insured; College Construction Loan Insurance Association) 1,145,000 1,230,932
6.10%, 10/15/2003 (Insured; College Construction Loan Insurance Association) 1,000,000 1,095,590
Volusia County Health Facilities Authority, Revenue, Refunding
(Health Care-John Knox) 5.75%, 6/1/2008...................................... 1,540,000 1,668,621
</TABLE>
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
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<TABLE>
<CAPTION>
Statement of Investments (continued) December 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------- -------------
U.S. Related-3.4%
<S> <C> <C>
Puerto Rico Commonwealth, Refunding 5.20%, 7/1/2003 (Insured; FSA)............. $ 5,000,000 $ 5,253,300
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................... 3,100,000 3,276,917
Puerto Rico Public Buildings Authority, Revenue, Refunding 6.10%, 7/1/2000..... 2,500,000 2,622,825
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002.............................................................. 600,000 629,106
------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $307,482,066)...................... $327,488,432
============
Short-Term Municipal Investments--4.9%
- -------------------------------------------------------------------------------
Florida--4.2%
Jacksonville, PCR, Refunding, VRDN
(Florida Power and Light Company Project) 4.50% (d).......................... $ 3,300,000 $ 3,300,000
Manatee County, PCR, Refunding, VRDN
(Florida Power and Light Company Project) 4.40% (d).......................... 4,900,000 4,900,000
Saint Lucie County, PCR, Refunding, VRDN
(Florida Power and Light Company Project) 4.40% (d).......................... 6,300,000 6,300,000
U.S. Related--.7%
Puerto Rico Commonwealth, Government Development Bank, Refunding, VRDN
3.35% (Insured; MBIA) (d).................................................... 2,200,000 2,200,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $16,700,000)...................... $ 16,700,000
============
TOTAL INVESTMENTS--100.0% (cost $324,182,066).................................. $344,188,432
============
</TABLE>
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Summary of Abbreviations
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -------------------------------------------------------------------------------
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- --------- ------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 63.6%
AA Aa AA 22.7
A A A 3.7
BBB Baa BBB 2.4
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 4.9
Not Rated (f) Not Rated (f) Not Rated (f) 2.7
------
100.0%
======
<FN>
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government securities
which are held in escrow and are used to pay principal and interest on the
municipal issue and to retire the bonds in full at the earliest refunding
date.
(b) Interest rate changes based on changes linked to the Consumer Price Index.
(c) Secured by letters of credit.
(d) 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.
(e) Fitch currently provides creditworthiness information for a limited number
of investments.
(f) 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.
(g) At December 31, 1997, 29.1% of the Fund's net assets are insured by MBIA.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Assets and Liabilities December 31, 1997
Cost Value
-------------- --------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $324,182,06 $344,188,432
Cash............................................. 2,523,680
Interest receivable.............................. 5,324,145
Receivable for shares of Beneficial Interest subscribed 180,000
Prepaid expenses................................. 4,179
-------------
352,220,436
-------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 188,991
Accrued expenses................................. 67,323
-------------
256,314
-------------
NET ASSETS..................................................................... $351,964,122
=============
REPRESENTED BY: Paid-in capital.................................. $332,008,088
Accumulated distributions in excess of
investment income-net.......................... (51,336)
Accumulated net realized gain (loss) on investments 1,004
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4......................... 20,006,366
-------------
NET ASSETS..................................................................... $351,964,122
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 25,801,825
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $13.64
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
<TABLE>
Statement of Operations Year Ended December 31, 1997
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income.................................. $18,632,534
EXPENSES: Management fee--Note 3(a)........................ $ 2,137,022
Shareholder servicing costs--Note 3(b)........... 526,795
Professional fees................................ 48,096
Trustees' fees and expenses--Note 3(c)............ 41,396
Custodian fees................................... 36,765
Registration fees................................ 16,269
Prospectus and shareholders' reports............. 13,994
Loan commitment fees--Note 2..................... 5,939
Miscellaneous.................................... 30,829
------------
Total Expenses................................. 2,857,105
------------
INVESTMENT INCOME-NET.......................................................... 15,775,429
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.......... $ 2,005,445
Net unrealized appreciation (depreciation)
on investments................................. 3,874,947
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 5,880,392
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $21,655,821
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1997 December 31, 1996
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 15,775,429 $ 17,793,933
Net realized gain (loss) on investments.............................. 2,005,445 3,318,458
Net unrealized appreciation (depreciation) on investments............ 3,874,947 (8,882,785)
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations... 21,655,821 12,229,606
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ (15,826,765) (17,898,089)
Net realized gain on investments..................................... (1,112,980) --
-------------- --------------
Total Dividends................................................... (16,939,745) (17,898,089)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 41,255,788 92,656,622
Dividends reinvested................................................. 11,285,112 11,899,150
Cost of shares redeemed.............................................. (93,192,124) (139,884,125)
-------------- --------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (40,651,224) (35,328,353)
-------------- --------------
Total Increase (Decrease) in Net Assets........................ (35,935,148) (40,996,836)
NET ASSETS:
Beginning of Period.................................................. 387,899,270 428,896,106
-------------- --------------
End of Period........................................................ $351,964,122 $387,899,270
============== ==============
(Distributions in excess of investment income--net)...................... $ (51,336) --
-------------- --------------
Shares Shares
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 3,057,168 6,915,255
Shares issued for dividends reinvested............................... 837,346 888,707
Shares redeemed...................................................... (6,936,815) (10,440,624)
-------------- --------------
Net Increase (Decrease) in Shares Outstanding..................... (3,042,301) (2,636,662)
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------
PER SHARE DATA: 1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $13.45 $13.62 $12.52 $13.85 $12.94
------ ------ ------ ------ ------
Investment Operations:
Investment income-net............................. .60 .61 .62 .66 .70
Net realized and unrealized gain (loss)
on investments................................. .23 (.17) 1.10 (1.33) .92
------ ------ ------ ------ ------
Total from Investment Operations.................. .83 .44 1.72 (.67) 1.62
------ ------ ------ ------ ------
Distributions:
Dividends from investment income-net.............. (.60) (.61) (.62) (.65) (.70)
Dividends from net realized gain on investments... (.04) -- -- -- (.01)
Dividends in excess of net realized gain
on investments................................. -- -- -- (.01) --
------ ------ ------ ------ ------
Total Distributions............................... (.64) (.61) (.62) (.66) (.71)
------ ------ ------ ------ ------
Net asset value, end of period.................... $13.64 $13.45 $13.62 $12.52 $13.85
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.............................. 6.35% 3.35% 13.98% (4.92%) 12.84%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .80% .80% .69% .48% .20%
Ratio of net investment income
to average net assets.......................... 4.43% 4.53% 4.70% 5.01% 5.20%
Decrease reflected in above expense ratios
due to undertakings by the Manager............. -- -- .08% .32% .64%
Portfolio Turnover Rate........................... 19.68% 19.14% 25.00% 18.76% 13.48%
Net Assets, end of period (000's Omitted)......... $351,964 $387,899 $428,896 $409,361 $538,495
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Florida Intermediate Municipal Bond Fund (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company. The Fund's investment objective is to provide
investors with as high a level of current income exempt from Federal income tax
as is consistent with the preservation of capital. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. is the
distributor of the Fund's shares, which are sold to the public without a sales
charge.
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 each business
day by an independent pricing service ("Service") approved by the Board of
Trustees. Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost 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.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, if any,
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.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended December
31, 1997, the Fund did not borrow under the Facility.
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 3--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 .60 of 1% of the value of the Fund's average
daily net assets and is payable monthly.
(b) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the Fund's average daily net assets
for certain allocated expenses of providing personal services and/or maintaining
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the period ended
December 31, 1997, the Fund was charged $296,104 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 December 31, 1997, the Fund was charged $150,776 pursuant to the transfer
agency agreement.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Trustee Emeritus receives 50% of such compensation.
(d) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to a
specified effective date and the redemption or exchange occurs less than fifteen
days following the date of issuance. During the period ended December 31, 1997,
redemption fees amounted to $1,994.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1997
amounted to $66,914,006 and $107,054,868, respectively.
At December 31, 1997, accumulated net unrealized appreciation on investments
was $20,006,366, consisting of $20,133,866 gross unrealized appreciation and
$127,500 gross unrealized depreciation.
At December 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
Shareholders and Board of Trustees
Dreyfus Florida Intermediate Municipal Bond Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus Florida Intermediate Municipal Bond Fund, including the statement of
investments, as of December 31, 1997, 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 and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1997 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 Florida Intermediate Municipal Bond Fund at December 31, 1997, 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.
/s/ Ernst & Young LLP
New York, New York
January 29, 1998
<PAGE>
Dreyfus Florida Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Important Tax Information (Unaudited)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended December 31, 1997:
--all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal income tax and, for residents of
Florida, not subject to taxation by Florida), and
--the Fund hereby designates $.0438 per share as a long-term capital gain
distribution (of which 100.00% is subject to the 20% maximum Federal tax rate)
of the $.0441 per share paid on December 4, 1997.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends and capital gains
distributions paid for the 1997 calendar year on form 1099-DIV which will be
mailed by January 31, 1998.
<PAGE>
Dreyfus Florida Intermediate
Municipal Bond 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
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 740AR9712
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
LEHMAN BROTHERS
PERIOD 10-YEAR DREYFUS FLORIDA
MUNICIPAL INTERMEDIATE
BOND INDEX * MUNICIPAL BOND FUND
1/21/92 10,000 10,000
12/31/92 10,869 10,935
12/31/93 12,257 12,339
12/31/94 11,672 11,732
12/31/95 13,676 13,373
12/31/96 14,297 13,821
12/31/97 15,618 14,699
*Source: Lehman Brothers
