Dreyfus
Florida Intermediate
Municipal Bond Fund
ANNUAL REPORT December 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
18 Financial Highlights
19 Notes to Financial Statements
23 Report of Independent Auditors
24 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Florida Intermediate
Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Florida Intermediate
Municipal Bond Fund, covering the 12-month period from January 1, 1999 through
December 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, Monica Wieboldt.
When the reporting period began, investors were concerned that global economic
weakness might cause a slowdown in the U.S. economy. As it turned out, these
fears were unfounded. In fact, it became apparent early in the year that
international and domestic economies were growing faster than analysts expected,
giving rise to concerns that long-dormant inflationary pressures might
re-emerge. Consumers continued to spend heavily, unemployment levels reached new
lows and the stock market continued to climb. Because unsustainable economic
growth may trigger unwanted inflationary pressures, the Federal Reserve Board
raised key short-term interest rates three times between June 30 and year-end in
an attempt to forestall an acceleration of inflation.
The tax-exempt money markets were also affected by their own unique influences.
Because the robust economy has reduced the need for municipalities to issue
short-term debt, the supply of short-term municipal notes has declined amid
steady demand. As a result, tax-exempt money market yields actually ended 1999
at a lower level than where they began. In contrast, taxable money market yields
generally rose throughout the year.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Florida Intermediate Municipal Bond Fund
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
January 14, 2000
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus Florida Intermediate Municipal Bond Fund perform during the
period?
The fund produced a -1.16% total return over the 12-month reporting period.(1)
In comparison, the fund's peer group, as measured by the Lipper Florida
Intermediate Municipal Debt Funds category average, provided a -1.70% total
return.(2)
We attribute the fund's modestly negative absolute returns over the past 12
months to a declining municipal bond market and a rising interest-rate
environment. The fund's favorable relative performance is primarily the result
of our duration management strategy, in which we generally shortened the fund's
duration -- a measure of sensitivity to changing interest rates -- toward the
short end of its range.
What is the fund's investment approach?
Our primary goal is to seek as high a level of income exempt from federal income
tax consistent with the preservation of capital by investing in municipal bonds
issued by the state of Florida. A secondary goal is to maximize total return,
which includes both current income and changes in share price.
To achieve these objectives, we attempt to add value by selecting primarily
investment-grade, intermediate-term tax-exempt bonds from Florida issuers in the
maturity ranges that we believe are most likely to provide the best returns.
These bonds comprise the fund's long-term core position. We augment the core
position with holdings in bonds that we believe have the potential to provide
both current income and capital appreciation.
What other factors influenced the fund's performance?
The fund was adversely affected by rising interest rates during 1999. Just
before the reporting period began, investors were concerned about the
potentially adverseeconomic effects of the global currency
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
and credit crisis. In response, the Federal Reserve Board reduced short-term
interest rates during the fall of 1998 in an attempt to stimulate global
economic growth. Its strategy apparently was effective, because overseas
economies began to recover early in 1999, and the growth of the U.S. economy was
stronger than most analysts expected. Municipal bond yields and prices
stabilized in this environment.
In the second through fourth quarters of 1999, however, strong economic growth
in both domestic and overseas markets raised concerns among fixed-income
investors that inflationary pressures might re-emerge. In response, the Federal
Reserve Board increased short-term interest rates three times during the summer
and fall of 1999 in an attempt to forestall a reacceleration of inflation. This
change in monetary policy caused prices of most bonds to fall.
Municipal bond prices generally fell faster than prices of taxable U.S. Treasury
securities, however, because of supply-and-demand influences. For a variety of
reasons, institutional investors such as insurance companies and hedge funds
participated less in the tax-exempt market over the past year, which reduced
overall demand and drove municipal bond yields higher. As a result, municipal
bonds -- including those from Florida issuers -- are currently offering
tax-exempt yields that compare very favorably with taxable yields after
adjusting for taxes.
What is the fund's current strategy?
Because corporate and institutional investors were less active participants in
the municipal bond market for most of 1999 compared to previous years, we have
focused on those securities that we believe appeal most to individual investors,
who have provided the market' s primary source of demand. This strategy has
generally enabled us to lock in attractive yields as they became available. In
addition, our focus on these relatively liquid, "retail-friendly" bonds has
helped us obtain relatively attractive prices when selling into the secondary
market. Within the Florida marketplace, we have emphasized general obligation
bonds, which are secured by state or local tax revenues, as well as bonds issued
by school districts and utilities.
We have generally maintained the fund's average duration toward the short end of
its range. This strategy is intended to help the fund avoid the full effect of
rising interest rates, which tend to erode bond prices. This strategy should
provide us with the flexibility to react to opportunities that often present
themselves during periods of market weakness.
January 14, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. SOME INCOME MAY BE SUBJECT TO THE FEDERAL
ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE
FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
FUND PERFORMANCE
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
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 12/31/99
<TABLE>
Inception From
Date 1 Year 5 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FUND 1/21/92 (1.16)% 5.39% 5.45%
</TABLE>
(+) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 $10,000
INVESTMENT MADE IN THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX ON THAT
DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 1/31/92 IS USED AS THE
BEGINNING VALUE ON 1/21/92. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND INVESTS PRIMARILY IN FLORIDA MUNICIPAL SECURITIES AND MAINTAINS A
PORTFOLIO WITH A WEIGHTED-AVERAGE MATURITY RANGING BETWEEN 3 AND 10 YEARS. THE
FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES.
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS
PRINCIPALLY IN FLORIDA MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND
INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR
THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 10-YEAR TAX-EXEMPT BOND
MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 9-12 YEARS. THESE
FACTORS, COUPLED WITH THE POTENTIALLY LONGER MATURITY OF THE INDEX, CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
December 31, 1999
<TABLE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--95.2% Amount ($) Value ($)
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<S> <C> <C>
FLORIDA--90.9%
Alachua County Health Facilities Authority,
Health Facilities Revenue:
(Santa Fe Health Systems Project)
6.875%, 11/15/2002 (Prerefunded 11/15/2000) 1,825,000 (a) 1,879,330
(Shands Teaching Hospital)
5.20%, 12/1/2007 (Insured; MBIA) 1,700,000 1,715,402
Bay County, Refunding:
PCR (International Paper Co. Project) 5.10%, 9/1/2012 2,500,000 2,347,100
RRR:
6.10%, 7/1/2002 (Insured; MBIA) 2,095,000 2,168,178
6.20%, 7/1/2003 (Insured; MBIA) 1,250,000 1,318,888
Boynton Beach, Utility Systems Revenue
5.375%, 11/1/2008 (Insured; FGIC) 1,000,000 1,023,430
Brevard County Health Facilities Authority, Revenue:
(Holmes Regional Medical Center Project)
5.30%, 10/1/2007 (Insured; MBIA) 3,000,000 3,045,450
(Wuesthoff Memorial Hospital) 6.90%, 4/1/2002 2,500,000 2,569,750
Brevard County Housing Finance Authority, MFHR
(Windover Oaks) 6.90%, 2/1/2027 2,000,000 2,163,820
Broward County:
6.125%, 1/1/2006 1,950,000 2,035,703
Airport System Revenue:
5.25%, 10/1/2011 (Insured; AMBAC) 1,000,000 977,220
5.375%, 10/1/2013 (Insured; MBIA) 8,100,000 7,854,408
Broward County School Board, COP
6.10%, 7/1/2002 (Insured; AMBAC) 2,000,000 2,071,100
Broward County School District:
5.80%, 2/15/2002 2,000,000 2,051,740
5.30%, 2/15/2004 5,000,000 5,109,100
6%, 2/15/2004 3,000,000 3,131,460
Celebration Community Development District,
Special Assessment 5.60%, 5/1/2004 (Insured; MBIA) 2,995,000 3,056,757
Charlotte County, Utility Revenue
5.40%, 10/1/2008 (Insured; FGIC) 1,210,000 1,240,589
Clay County Housing Finance Authority, Revenue
(Multi-County Program) 4.85%, 10/1/2011
(Collateralized: FNMA,GNMA) 1,575,000 1,467,743
Collier County, Capital Improvement Revenue:
5.75%, 10/1/2006 (Insured; MBIA) 1,985,000 2,081,967
5.85%, 10/1/2007 (Insured; MBIA) 2,105,000 2,209,934
Coral Springs, Water and Sewer Revenue
5.50%, 9/1/2003 (Insured; FGIC) 1,000,000 1,027,100
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (continued) Amount ($) Value ($)
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FLORIDA (CONTINUED)
Dade County:
Aviation Revenue:
6%, 10/1/2003 (Insured; MBIA) 2,000,000 2,081,640
6.15%, 10/1/2004 (Insured; MBIA) 2,000,000 2,098,680
(Miami International Airport):
5%, 10/1/2005 (Insured; FSA) 1,075,000 1,075,978
5.75%, 10/1/2005 (Insured; FSA) 2,000,000 2,077,020
5.375%, 10/1/2010 (Insured; FSA) 1,000,000 1,000,890
Public Facilities Revenue
(Jackson Memorial Hospital)
5.20%, 6/1/2004 (Insured; MBIA) 2,035,000 2,062,757
(Seaport) 5.90%, 10/1/2002 (Insured; AMBAC) 2,470,000 2,549,163
Special Obligation Revenue:
(Solid Waste System) 6%, 10/1/2006 (Insured; AMBAC) 2,565,000 2,713,206
Zero Coupon, 10/1/2010 (Insured; AMBAC) 6,825,000 3,796,133
Water and Sewer Systems Revenue
6.25%, 10/1/2011 (Insured; FGIC) 2,115,000 2,299,491
Dade County Housing Finance Authority, MFMR
(Golden Lakes Apartments Project) 6%, 11/1/2032 1,000,000 950,540
Daytona Beach, Water and Sewer Revenue
5.75%, 11/15/2008 (Insured; AMBAC) 2,270,000 2,333,787
Deerfield Beach, Water and Sewer Improvement Revenue
6.125%, 10/1/2003 (Insured; FGIC) 1,180,000 1,226,492
Delray Beach, Water and Sewer Revenue
5.25%, 10/1/2009 (Insured; AMBAC) 2,500,000 2,529,675
Duval County School District:
5.90%, 8/1/2002 (Insured; AMBAC) 4,500,000 4,628,070
6.25%, 8/1/2005 (Insured; AMBAC) 2,400,000 2,514,168
First Florida Governmental Financing Commission, Revenue:
6.30%, 7/1/2002 (Insured; MBIA) 1,000,000 1,037,110
6%, 7/1/2003 (Insured; MBIA) 3,000,000 3,131,910
Florida, Gas Utility Revenue (Gas Project)
5%, 12/1/2008 (Insured; FSA) 2,000,000 1,993,800
Florida Board of Education, Capital Outlay:
5.50%, 1/1/2006 1,400,000 1,442,840
(Public Education) 5.50%, 6/1/2010 5,725,000 5,826,161
Florida Department of Transportation
Revenue (Alligator Alley) 5%, 7/1/2011 1,520,000 1,483,018
(Right of Way) 5.75%, 7/1/2005 2,375,000 2,484,677
Florida Municipal Power Agency, Revenue:
(All-Requirements Power Supply Project)
5.90%, 10/1/2002 (Insured; AMBAC) 1,000,000 1,035,360
(Saint Lucie Project) 5.40%, 10/1/2005 (Insured; FGIC) 3,500,000 3,579,310
Principal
LONG-TERM MUNICIPAL INVESTMENTS (continued) Amount ($) Value ($)
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FLORIDA (CONTINUED)
Fort Myers, Improvement Revenue
(Special Assessment - Geo Area 24)
7.05%, 7/1/2005 (Prerefunded 7/1/2003) 905,000 (a) 969,744
Greater Orlando Aviation Authority,
Orlando Airport Facilities Revenue:
6.10%, 10/1/2002 (Insured; FGIC) 2,000,000 2,080,740
6.25%, 10/1/2006 (Insured; FGIC) 4,600,000 4,827,746
Halifax Hospital Medical Center, HR
5%, 10/1/2010 (Insured; MBIA) 1,750,000 1,715,385
Hernando County School District:
6.10%, 8/1/2003 (Insured; MBIA) 2,000,000 2,096,300
5.50%, 9/1/2004 (Insured; MBIA) 1,580,000 1,631,966
Hialeah Gardens, IDR (Waterford Convalescent)
7.875%, 12/1/2007 885,000 919,940
Hillsborough County, Utility Revenue
Zero Coupon, 8/1/2006 (Insured; MBIA) 5,000,000 3,576,000
Hillsborough County Hospital Authority, HR
(Tampa General Hospital Project)
6.125%, 10/1/2002 (Insured; FSA) 3,350,000 3,480,282
Hillsborough County Port District, Special Revenue
(Tampa Port Authority) 5.75%, 6/1/2013 (Insured; FSA) 500,000 504,020
Hillsborough County School Board
5.75%, 7/1/2025 (Insured; MBIA) 2,000,000 1,946,560
Indian Trace Community Development District
(Water Management-Special Benefit)
5.375%, 5/1/2005 (Insured; MBIA) 2,265,000 2,325,271
Jacksonville, Revenue:
District Water and Sewer
5%, 10/1/2020 (Insured; MBIA, Prerefunded 10/1/2008) 3,000,000 (a) 2,954,910
Excise Taxes 6.50%, 10/1/2008 (Insured; AMBAC) 1,000,000 1,062,500
Sales Tax (River City Renaissance Project)
5.125%, 10/1/2018 (Insured; FGIC) 2,500,000 2,275,150
Jacksonville Beach, Utilities Revenue
5.125%, 10/1/2004 (Insured; MBIA) 1,500,000 1,521,960
Jacksonville Electric Authority,
Electric Systems Revenue 5.40%, 10/1/2004 2,250,000 2,288,453
Lake County, Resource Recovery Industrial Development Revenue
(NRG/Recovery Group) 5.85%, 10/1/2009 6,000,000 5,716,740
Lake Worth 5.80%, 10/1/2005 (Insured; AMBAC) 1,000,000 1,050,160
Lakeland, Electric and Water Revenue 5.90%, 10/1/2007 2,385,000 2,518,011
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (continued) Amount ($) Value ($)
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FLORIDA (CONTINUED)
Martin County, Utility System Revenue :
5.50%, 10/1/2011 (Insured; FGIC) 1,000,000 1,024,720
Martin County, Utility System Revenue (continued):
5.50%, 10/1/2012 (Insured; FGIC) 1,065,000 1,085,949
5.50%, 10/1/2013 (Insured; FGIC) 1,485,000 1,501,305
Miami 5.80%, 12/1/2005 (Insured; FGIC) 1,340,000 1,408,742
Miami Beach, Water and Sewer Revenue
5.10%, 9/1/2005 (Insured; FSA) 1,500,000 1,522,140
Miami Beach Health Facilities Authority, HR
(Mount Sinai Medical Center Project)
5.70%, 11/15/2003 (Insured; FSA) 1,500,000 1,553,250
Miami-Dade County School Board, COP
5.25%, 8/1/2008 (Insured; AMBAC) 2,500,000 2,526,200
Nassau County, PCR (ITT Rayonier, Inc. Project)
5.75%, 8/1/2014 1,075,000 1,106,100
Northern Palm Beach County Improvement District
(Water Control & Improvement Unit Development)
5.90%, 7/1/2005 1,200,000 1,110,300
Ocean Highway and Port Authority, Revenue
6.25%, 12/1/2002 (LOC; ABN Amro Bank) 3,500,000 3,609,550
Orange County Health Facilities Authority, HR
(Orlando Regional Healthcare):
5.50%, 11/1/2003 (Insured; MBIA) 600,000 615,300
5.50%, 11/1/2003 (Insured; MBIA, Prerefunded 11/1/2002) 1,400,000 (a) 1,455,720
6.25%, 10/1/2011 (Insured; MBIA) 730,000 785,370
6.25%, 10/1/2011 (Insured; MBIA, Escrowed to Maturity) 1,770,000 1,912,273
Orlando Utilities Commission, Water and Electric Revenue:
5.60%, 10/1/2003 10,000,000 10,338,300
5.75%, 10/1/2005 2,000,000 2,095,340
5.80%, 10/1/2006 5,930,000 6,236,581
5.80%, 10/1/2007 1,175,000 1,236,993
Osceola County, Revenue:
Gas Tax Improvement:
5.50%, 4/1/2003 (Insured; FGIC) 1,365,000 1,401,800
5.65%, 4/1/2004 (Insured; FGIC) 1,445,000 1,494,116
Transportation (Osceola Parkway Project)
5.90%, 4/1/2007 (Insured; MBIA) 1,300,000 1,344,993
Osceola County Industrial Development Authority, Revenue
(Community Provider Pooled Loan Program) 8%, 7/1/2004 2,990,000 3,068,488
Principal
LONG-TERM MUNICIPAL INVESTMENTS (continued) Amount ($) Value ($)
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FLORIDA (CONTINUED)
Palm Beach County, Revenue:
Criminal Justice Facilities
5.375%, 6/1/2010 (Insured; FGIC) 1,825,000 1,853,433
Water and Sewer 5%, 10/1/2010 (Insured; MBIA) 7,320,000 7,222,498
Palm Beach County Housing Finance Authority, MFHR
(Windsor Park Apartments Project) 5.85%, 12/1/2033 1,500,000 1,388,160
Palm Beach County School District
6%, 8/1/2006 (Insured; AMBAC) 1,000,000 1,037,580
Palm Beach County Solid Waste Authority, Revenue
5.50%, 10/1/2006 (Insured; AMBAC) 3,000,000 3,089,970
Pasco County, Water and Sewer Revenue:
5.50%, 10/1/2002 (Insured; FGIC) 2,500,000 2,562,825
5.40%, 10/1/2003 (Insured; FGIC) 1,500,000 1,539,600
Polk County, Capital Improvement Revenue
6%, 12/1/2002 (Insured; MBIA) 1,900,000 1,976,209
Punta Gorda, Utilities Revenue
5.50%, 1/1/2002 (Insured; AMBAC) 1,315,000 1,340,261
Saint John's County Industrial Development Authority, HR
(Flager Hospital Project) 5.80%, 8/1/2003 1,000,000 1,015,910
Saint Lucie County School District
5.90%, 7/1/2002 (Insured; AMBAC) 1,780,000 1,837,672
Saint Petersburg, Public Improvement Revenue
6%, 2/1/2002 (Insured; MBIA) 1,500,000 1,544,445
Sarasota County:
6.25%, 10/1/2004 (Insured; FGIC) 1,505,000 1,572,665
Utilities Systems Revenue 5.60%, 10/1/2004 (Insured; FGIC) 2,345,000 2,425,152
Seminole County School District 6%, 8/1/2003 (Insured; MBIA) 2,500,000 2,612,200
Sunrise, Revenue:
Public Facilities:
6.20%, 10/1/2004 (Insured; MBIA) 2,000,000 2,106,840
6.50%, 10/1/2007 (Insured; MBIA) 1,000,000 1,065,980
Utility System 5.20%, 10/1/2005 (Insured; AMBAC) 1,395,000 1,422,649
Tallahassee, Health Facilities Revenue
(Tallahassee Memorial Regional Medical Center)
5.50%, 12/1/2002 (Insured; MBIA) 1,000,000 1,024,400
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (continued) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Tampa, Revenue:
(Alleghany Health Systems - Saint Mary's)
5.75%, 12/1/2007 (Insured; MBIA) 2,750,000 2,852,245
(Aquarium, Inc. Project) 7.25%, 5/1/2005
(Prerefunded 5/1/2002) 1,200,000 (a) 1,285,764
Cigarette Tax Allocation (H. Lee Moffitt Cancer)
5%, 3/1/2008 (Insured; AMBAC) 2,000,000 1,997,480
Water and Sewer 6.30%, 10/1/2006 1,590,000 1,663,108
Tampa Bay, Water Utility Systems Revenue
5.125%, 10/1/2015 (Insured; FGIC) 3,205,000 2,997,412
FLORIDA (CONTINUED)
Tarpon Springs Health Facilities Authoriy, HR
(Helen Ellis Memorial Hospital Project)
7.50%, 5/1/2011 2,210,000 2,213,249
Volusia County, Sales Tax Improvement Revenue
6.40%, 10/1/2007 (Insured; MBIA) 2,000,000 2,094,900
Volusia County Educational Facility Authority, Revenue
(Embry-Riddle Aeronautical University):
5.875%, 10/15/2002 (Insured; College Construction Loan
Insurance Association) 1,145,000 1,183,472
6.10%, 10/15/2003 (Insured; College Construction Loan
Insurance Association) 1,000,000 1,048,870
Volusia County Special Assessment (Bethune Beach
Wastewater Project) 6.875%, 7/1/2005 795,000 833,764
U.S. RELATED--4.3%
Puerto Rico Commonwealth 5.20%, 7/1/2003 (Insured; FSA) 5,000,000 5,106,500
Puerto Rico Commonwealth Highway and Transportation
Authority:
Highway Revenue 5.50%, 7/1/2013 (Insured; MBIA) 2,500,000 2,532,125
Transportation Revenue 5.25%, 7/1/2012 (Insured; MBIA) 2,440,000 2,430,045
Virgin Islands Public Finance Authority, Revenue
5.625%, 10/1/2010 2,000,000 1,973,660
Virgin Islands Water and Power Authority
Water Systems Revenue 7.20%, 1/1/2002 300,000 308,605
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $271,085,159) 273,553,061
Principal
SHORT-TERM MUNICIPAL INVESTMENTS--2.6% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Jacksonville PCR, VRDN
(Florida Power & Light Co. Project) 4% 1,000,000 (b) 1,000,000
Pinellas County Health Facilities Authority
(Pooled Hospital Loan Program) 2.30% 2,300,000 (b) 2,300,000
Putnam County Development Authority, PCR, VRDN
(Florida Power & Light Co. Project) 4.50% 400,000 (b) 400,000
Saint Lucie County, SWDR, VRDN
(Florida Power & Light Co. Project) 5% 3,700,000 (b) 3,700,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $7,400,000) 7,400,000
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TOTAL INVESTMENTS (cost $278,485,159) 97.8% 280,953,061
CASH AND RECEIVABLES (NET) 2.2% 6,209,364
NET ASSETS 100.0% 287,162,425
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
FGIC Financial Guaranty Insurance
Company
FNMA Federal National Mortgage
Association
FSA Financial Security Assurance
GNMA Government National Mortgage
Association
HR Hospital Revenue
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors
Assurance Insurance Corporation
MFHR Multi-Family Housing Revenue
MFMR Multi-Family Mortgage Revenue
PCR Pollution Control Revenue
RRR Resources Recovery Revenue
SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 70.4
AA Aa AA 17.9
A A A 2.9
BBB Baa BBB 3.5
BB Ba BB .8
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 1.8
Not Rated(c) Not Rated(c) Not Rated(c) 2.7
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND
INTEREST ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE
EARLIEST REFUNDING DATE.
(B) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO
PERIODIC CHANGE.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD &
POOR'S HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY
TO THOSE RATED SECURITIES IN WHICH THE FUND MAY INVEST.
(D) AT DECEMBER 31, 1999, 27.7% OF THE FUND'S NET ASSETS ARE INSURED BY
MBIA.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 278,485,159 280,953,061
Cash 2,188,867
Interest receivable 4,251,645
Prepaid expenses 4,014
287,397,587
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 139,558
Payable for shares of Beneficial Interest redeemed 9,923
Accrued expenses 85,681
235,162
- --------------------------------------------------------------------------------
NET ASSETS ($) 287,162,425
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 285,445,384
Accumulated net realized gain (loss) on investments (750,861)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 2,467,902
- --------------------------------------------------------------------------------
NET ASSETS ($) 287,162,425
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value Beneficial Interest authorized) 22,350,24
NET ASSET VALUE, offering and redemption price per share--Note 3(d)($) 12.85
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 15,895,273
EXPENSES:
Management fee--Note 3(a) 1,822,672
Shareholder servicing costs--Note 3(b) 459,337
Professional fees 42,361
Trustees' fees and expenses--Note 3(c) 36,550
Custodian fees 33,162
Prospectus and shareholders' reports 24,297
Registration fees 9,487
Loan commitment fees--Note 2 2,658
Miscellaneous 25,541
TOTAL EXPENSES 2,456,065
INVESTMENT INCOME--NET 13,439,208
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (747,993)
Net unrealized appreciation (depreciation) on investments (16,189,293)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (16,937,286)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (3,498,078)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
-----------------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 13,439,208 14,550,869
Net realized gain (loss) on investments (747,993) 2,698,862
Net unrealized appreciation (depreciation)
on investments (16,189,293) (1,349,171)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (3,498,078) 15,900,560
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (13,439,208) (14,499,533)
Net realized gain on investments (25,230) (2,678,501)
TOTAL DIVIDENDS (13,464,438) (17,178,034)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 36,382,864 40,889,385
Dividends reinvested 8,886,976 11,540,231
Cost of shares redeemed (70,234,114) (74,027,049)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (24,964,274) (21,597,433)
TOTAL INCREASE (DECREASE) IN NET ASS (41,926,790) (22,874,907)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 329,089,215 351,964,122
END OF PERIOD 287,162,425 329,089,215
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,759,654 2,999,101
Shares issued for dividends reinvested 672,359 846,706
Shares redeemed (5,298,777) (5,430,622)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,866,764) (1,584,815)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased
(or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended December 31,
--------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.59 13.64 13.45 13.62 12.52
Investment Operations:
Investment income--net .59 .60 .60 .61 .62
Net realized and unrealized
gain (loss) on investments (.74) .06 .23 (.17) 1.10
Total from Investment Operations (.15) .66 .83 .44 1.72
Distributions:
Dividends from investment income--net (.59) (.60) (.60) (.61) (.62)
Dividends from net realized gain on
investments .00(a) (.11) (.04) -- --
Total Distributions (.59) (.71) (.64) (.61) (.62)
Net asset value, end of period 12.85 13.59 13.64 13.45 13.62
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (1.16) 4.98 6.35 3.35 13.98
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .81 .81 .80 .80 .69
Ratio of net investment income
to average net assets 4.42 4.41 4.43 4.53 4.70
Decrease reflected in above expense ratios
due to undertakings
by The Dreyfus Corporation -- -- -- -- .08
Portfolio Turnover Rate 10.61 32.49 19.68 19.14 25.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 287,162 329,089 351,964 387,899 428,896
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
(A) AMOUNT REPRESENTS LESS THAN $.01.
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, as amended (the "Act"), as a
non-diversified open-end management investment company. The fund's investment
objective is to provide investors with as high a level of current income exempt
from Federal income tax as is consistent with the preservation of capital. The
Dreyfus Corporation (the "Manager") serves as the fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned
subsidiary of Mellon Financial Corporation. 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 (the "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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
Under the terms of the custody agreement, the fund received net earnings credits
of $9,071 during the period ended December 31, 1999 based on available cash
balances left on deposit. Income earned under this arrangement is included in
interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $748,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 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, the carryover expires in fiscal 2007.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "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. During the period ended
December 31, 1999, the fund did not borrow under the Facility.
NOTE 3--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 .60 of 1% of the value of the
fund's average daily net assets and is payable monthly.
(B) Under the fund' s Shareholder Service 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, 1999, the fund was charged an aggregate of $280,885 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, 1999, the fund was charged $132,128 pursuant to the transfer
agency agreement.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund' s exchange privilege. During the period ended
December 31, 1999, redemption fees retained by the fund amounted to $140.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended December 31, 1999, amounted to
$31,447,077 and $59,185,342, respectively.
At December 31, 1999, accumulated net unrealized appreciation on investments was
$2,467,902, consisting of $5,937,392 gross unrealized appreciation and
$3,469,490 gross unrealized depreciation.
At December 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).
REPORT OF 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, 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 Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 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 Florida Intermediate Municipal Bond Fund at December 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 accounting principles
generally accepted in the United States.
[Ernst And Young LLP signature logo]
New York, New York
February 4, 2000
The 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, 1999:
--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 $.0011 per share as a long-term capital gain
paid on July 15, 1999.
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 1999 calendar year on form 1099-DIV which will be
mailed by January 31, 2000.
For More Information
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
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) 2000 Dreyfus Service Corporation 740AR9912
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
12/31/98 16,674 15,431
12/31/99 16,466 15,252
*Source: Lipper Analytical Services, Inc.
