DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus California
Intermediate Municipal Bond Fund. For its annual reporting period ended March
31, 1996, your portfolio achieved a total return of 6.75%, which includes
bond price changes and interest income.* Income dividends exempt from Federal
and State of California personal income taxes of approximately $.620 per
share were paid to shareholders.** This is equivalent to an annualized
tax-free distribution rate per share of 4.69%.***
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. At present, there are indications that the labor market may be
tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a possibilit
y well worth noting since worker wages are emerging as a political issue in
this year's election. The surprisingly strong employment figures in February
caused a sharp rise in interest rates. As a result, fixed-income returns for
the first quarter of this year were negative.
Several factors that temporarily depressed economic activity have ended.
With the arrival of spring, the severe winter weather which suppressed
construction and discouraged consumer shopping is over. Additionally, the
17-day strike at two General Motors brake-parts plants has been settled. That
strike had nearly resulted in a complete shutdown of GM North American
manufacturing.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed has reduced the level of short-term interest rates three
times to spur the sluggish economy, the last reduction occurring on January
31, 1996.
Nevertheless, we are reluctant to paint an overly optimistic business
picture since much economic data still remains mixed. Business capital
spending has been an important stimulant to economic growth over the past few
years, particularly in light of the retrenchment in consumer spending. A
recent survey by the Commerce Department revealed that businesses plan only
modest increases in spending on new buildings and equipment this year
compared to 1995. Overall, the survey indicated that capital spending would
rise only 1.5% compared to last year's growth rate of 8.1%. The survey also
points out a significant divergence between the spending plans of
manufacturing companies and those of retailers and wholesalers. Influenced by
strong export growth, capital spending by manufacturers is estimated to rise
7.2%. Conversely, weak consumer spending has resulted in retailers and
wholesalers cutting their capital spending estimates by 4%. The more cautious
approach to business spending may be an indication that overall economic
growth in 1996 will be modest.
THE MARKET
The municipal market experienced a dramatic downturn late in the first
quarter. The weakness continues as this letter is being written, although
some improvement has been seen. The expectations of faster economic growth
combined with rising commodity prices raised the specter of future rising
inflation - just what long-term bond investors fear most.
The most recent market peak in prices was in mid-February with yields on
good quality 10-year bonds trading around 4.50%. By early April, prices had
declined and yield levels had risen to 5.15%. The last time we experienced a
downward move in the market of similar magnitude was in 1994.
Markets rarely move in one direction for an extended period of time, so
we are optimistic that much of the market correction is behind us. We remain
cautious, however, awaiting confirmation of a market bottom before pursuing a
more aggressive strategy.
THE PORTFOLIO
The portfolio has, for some time now, been aggressively postured with
longer maturity investments to provide a high level of tax exempt income.
This maturity structure, being generally in the 8-10 year range, caused a
negative total return of about 1% over the first quarter of 1996. This
occurred because as bond prices fell, the Fund's net asset value was affected
accordingly. However, the total return for the year ended March 31, 1996 was
positive at 6.75%. In addition, we continue to pursue an investment strategy
that seeks to provide an attractive yield for the intermediate term investor.
The economy is at a crossroads where growth is concerned. Going forward,
we anticipate continued market volatility until the future of economic growth
is made more clear. In this environment, we are currently increasing our cash
position and the defensive structure of the portfolio. This represents a
shift in our thinking toward a more conservative structure, but such a change
appears prudent given the uncertainty present in the economy and the
potential negative volatility should economic growth expand rapidly. We are
poised to return to a more aggressive stance if an economic slowdown becomes
evident.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Annualized 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.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS CALIFORNIA
INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX
[Exhibit A:
Dollars
$13,500
Lehman Brothers 10-Year
Municipal Bond Index*
$13,025
Dreyfus California
Intermediate
Municipal Bond Fund
*Source: Lehman Brothers]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (4/20/92)
MARCH 31, 1996 TO MARCH 31, 1996
------------- -----------------------
6.75% 6.92%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus California
Intermediate Municipal Bond Fund on 4/20/92 (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 4/30/92 is used as
the beginning value on 4/20/92. All dividends and capital gain distributions
are reinvested.
The Fund invests primarily in California 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 more than 8 years and less than 12 years.
The Index does not take into account charges, fees and other expenses. Also,
unlike the Fund which principally limits investments to California municipal
obligations, the Index is not State specific. These factors 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.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-92.8% AMOUNT VALUE
_______ _______
<S> <C> <C>
CALIFORNIA-90.3%
Alameda County, COP (Capital Projects) 6%, 6/1/2000......................... $ 500,000 $ 522,405
State of California, GO:
6.20%, 9/1/2002......................................................... 500,000 540,135
5.20%, 9/1/2010......................................................... 10,000,000 9,667,800
California Department of Water Resources, Water Systems Revenue
(Central Valley Project):
5.90%, 12/1/2005...................................................... 1,175,000 1,255,499
4.75%, 12/1/2017...................................................... 2,500,000 2,168,600
California Health Facilities Financing Authority, Revenue:
(Adventist Health System / West) 6.40%, 3/1/2002 (Insured; MBIA)........ 500,000 543,715
(Catholic Healthcare West):
4.50%, 7/1/2002....................................................... 2,500,000 2,471,000
4.70%, 7/1/2003....................................................... 2,500,000 2,486,025
(Downey Community College):
5.10%, 5/15/2002...................................................... 2,500,000 2,481,700
5.20%, 5/15/2003...................................................... 2,500,000 2,479,300
(Marin General Hospital):
5.50%, 8/1/2001 (Insured; FSA)........................................ 1,580,000 1,649,188
5.60%, 8/1/2002 (Insured; FSA)........................................ 1,670,000 1,754,719
5.70%, 8/1/2003 (Insured; FSA)........................................ 1,760,000 1,860,778
Refunding (Saint Francis Memorial Hospital) 5.75%, 11/1/2003.......... 1,130,000 1,144,475
California Housing Finance Agency, Revenue:
(Home Mortgage) 5.80%, 8/1/2003......................................... 1,130,000 1,142,543
(Multi-Unit Rental Housing) 6.50%, 8/1/2005............................. 500,000 523,505
California Pollution Control Financing Authority, PCR
(Laidlaw, Inc.) 6.50%, 5/1/2002 (LOC; Bank of America) (a).............. 1,500,000 1,536,855
California Public Capital Improvements Financing Authority, Revenue
(Joint Powers Agency-Pooled Projects) 8.25%, 3/1/1998................... 200,000 211,910
California Public Works Board, LR:
(Department of Corrections-Calipatria) 6.10%, 9/1/2003 (Insured; MBIA).. 1,000,000 1,077,580
Refunding, Department of Corrections State Prisons
(Susanville) 5%, 6/1/2005......................................... 3,000,000 2,932,950
(Various Universities of California Projects) 5.10%, 6/1/2004..... 3,070,000 3,047,528
(Secretary of State) 6.10%, 12/1/2004 (Insured; AMBAC) (b).............. 6,100,000 6,622,831
(Various Community College Projects ) 6%, 12/1/2008 (Insured; AMBAC).... 3,975,000 4,184,443
(Various University of California Projects ) 5.90%, 12/1/2003 (Insured; AMBAC) 1,000,000 1,071,350
California Statewide Community Development Authority, LR
(Oakland Convention Centers Project) 6%, 10/1/2004 (Insured; AMBAC)..... 2,700,000 2,889,837
Central Coast Water Authority, Revenue (Water Project)
6.15%, 10/1/2005 (Insured; AMBAC)....................................... 2,000,000 2,158,300
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
Central Valley Financing Authority, Cogeneration Project Revenue
(Carson Ice General Project) 5.70%, 7/1/2003............................ $ 2,000,000 $ 1,997,460
Contra Costa County, COP (Merrithew Memorial Hospital Replacement)
6.20%, 11/1/2001........................................................ 1,145,000 1,197,601
Daly City, COP, Refunding:
5.30%, 6/1/2001 (Insured; MBIA)......................................... 1,170,000 1,209,148
5.30%, 6/1/2002 (Insured; MBIA)......................................... 1,230,000 1,271,389
East Bay Municipal Utility District, Water Systems Revenue, Refunding:
6%, 6/1/2004............................................................ 1,365,000 1,461,642
6%, 6/1/2005............................................................ 560,000 595,795
6.10%, 6/1/2006......................................................... 2,000,000 2,127,320
Encinitas Union School District, COP (Measure B Capital Projects):
4.875%, 9/1/2000........................................................ 1,000,000 1,006,880
5%, 9/1/2001............................................................ 1,000,000 1,008,370
Escondido Joint Powers Financing Authority, LR:
(Escondido Civic Center Project) 6%, 9/1/2005 (Insured; AMBAC).......... 1,400,000 1,523,858
Refunding (California Center for the Arts) 5.90% 9/1/2010 (Insured; AMBAC) 3,440,000 3,583,551
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment
Projects):
4.70%, 8/1/2002 (Insured; CGIC)......................................... 1,525,000 1,522,834
4.80%, 8/1/2003 (Insured; CGIC)......................................... 1,910,000 1,905,550
Fontana Redevelopment Agency, Tax Allocation, Refunding
(Jurupa Hills Redevelopment Project) 6.90%, 10/1/2002................... 435,000 458,890
Garden Grove Agency, Community Development, Tax Allocation, Refunding
(Garden Grove Community Project):
5.20%, 10/1/2001...................................................... 1,225,000 1,238,365
5.30%, 10/1/2002...................................................... 1,285,000 1,301,204
Industry Urban Development Agency, Tax Allocation, Refunding
(Civic Recreation Project No. 1) 5.40%, 5/1/2002 (Insured; MBIA)........ 2,500,000 2,589,625
Long Beach, COP (Fleet Services Project) 6.10%, 5/1/2001.................... 500,000 532,260
Long Beach Harbor, Revenue 4.50%, 5/15/2002................................. 5,240,000 5,172,142
City of Los Angeles:
(Judgement Obligation) 5%, 8/1/2002..................................... 3,000,000 3,033,390
Revenue:
Harbor Department 6%, 8/1/2006........................................ 1,320,000 1,386,964
Home Mortgage 9.875%, 12/1/2004....................................... 20,000 20,064
Mortgage Refunding:
5.75%, 7/1/2002 (Insured; MBIA)................................... 900,000 922,203
5%, 1/1/2005 (Insured; MBIA)...................................... 890,000 881,848
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
City of Los Angeles (continued):
Revenue (continued):
Wastewater System:
5.90%, 6/1/2003 (Insured; AMBAC).................................. $ 1,000,000 $ 1,067,440
6%, 6/1/2004 (Insured; AMBAC)..................................... 1,000,000 1,074,120
Los Angeles, Multi-Family Revenue (Earthquake Rehabilitation Projects)
5.65%, 12/1/2025 (Insured; FNMA)........................................ 10,000,000 10,108,400
Los Angeles County, COP:
(Edmund D. Edelman Children's Court):
5.80%, 4/1/2001 (Insured; AMBAC)...................................... 500,000 527,260
6%, 4/1/2003 (Insured; AMBAC)......................................... 500,000 535,800
(Hospital Information System-LAC-USU Medical Center) 5.90%, 12/1/1997... 400,000 408,700
(Marina Del Ray) 5.50%, 7/1/1997........................................ 5,155,000 5,220,623
(Multiple Capital Facilities Project II) 7%, 3/1/2003................... 1,000,000 1,050,690
Los Angeles County Capital Asset Leasing Corporation, Leasehold Revenue,
Refunding
5.75%, 12/1/2004 (Insured; AMBAC)....................................... 2,600,000 2,761,018
Los Angeles County Metropolitan Transportation Commission, Sales Tax Revenue,
Refunding 5.50%, 7/1/2007............................................... 3,350,000 3,392,110
Los Angeles County Transportation Commission, Sales Tax Revenue, Refunding:
5.75%, 7/1/2001 (Insured; FGIC)......................................... 1,250,000 1,318,425
6%, 7/1/2004 (Insured; FGIC)............................................ 2,000,000 2,151,240
Los Angeles Department of Water & Power, Electric Plant Revenue,
Crossover Refunding 5.75% 9/1/2013...................................... 2,000,000 1,968,580
Los Angeles Municipal Improvement Corp., Sanitation Equipment Charge Revenue
5.50%, 2/1/2003 (Insured; FSA).......................................... 5,000,000 5,212,000
Martinez Unified School District, Refunding:
5.25%, 8/1/2001......................................................... 1,030,000 1,046,109
5.50%, 8/1/2003......................................................... 1,170,000 1,194,359
5.75%, 8/1/2004......................................................... 1,240,000 1,275,662
Mojave Water Agency (Improvement District M-Morongo Basin):
5.875%, 9/1/1999........................................................ 690,000 707,436
6%, 9/1/2000............................................................ 730,000 750,739
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Power Project):
5.75%, 7/1/2001 (Insured; MBIA)....................................... 1,210,000 1,276,235
5.80%, 7/1/2002 (Insured; MBIA)....................................... 570,000 603,944
Oakland, COP, Refunding (Oakland Museum) 6%, 4/1/2012 (Insured; AMBAC)...... 2,500,000 2,538,500
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
Oakland Redevelopment Agency, Refunding
(Central District Redevelopment-Senior Tax Allocation):
5.65%, 2/1/2003 (Insured; AMBAC)...................................... $ 1,500,000 $ 1,576,605
5.75%, 2/1/2004 (Insured; AMBAC)...................................... 1,500,000 1,585,545
Orange County Municipal Water District, Water Facilities Corp., Refunding
(Allen-McColloch Pipeline) 5%, 7/1/2006 (Insured; MBIA) (c)............. 5,380,000 5,303,281
Pasadena, COP, Refunding (Capital Project):
5.90%, 1/1/2002......................................................... 250,000 260,985
6%, 1/1/2003............................................................ 400,000 420,084
Port Oakland, Revenue:
Port:
5.50%, 11/1/1999 (Insured; MBIA)...................................... 1,000,000 1,032,760
6.10%, 11/1/2003 (Insured; MBIA)...................................... 1,245,000 1,333,781
Special Facilities (Mitsui O.S.K. Lines Ltd.)
6.40%, 1/1/2003 (LOC; Industrial Bank of Japan) (a)................... 1,000,000 1,038,400
Riverside County, Asset Leasing Corp., Leasehold Revenue
(Riverside County Hospital Project) 5.90%, 6/1/2002..................... 3,000,000 3,055,530
San Bernardino County, COP (West Valley Detention Center)
5.90%, 11/1/2001 (Insured; MBIA)........................................ 1,000,000 1,064,550
San Diego County Regional Transportation Commission, Sales Tax Revenue
5.50%, 4/1/2007 (Insured; FGIC)......................................... 2,500,000 2,548,600
San Diego County Unified School District, COP
(Capital Projects, Phase XI) 4.10%, 7/1/2002............................ 7,500,000 7,219,125
San Diego County Water Authority, Water Revenue, COP, Refunding:
5.30%, 5/1/2002 (Insured; FGIC)......................................... 3,000,000 3,099,840
5.40%, 5/1/2003 (Insured; FGIC)......................................... 2,000,000 2,075,560
San Francisco City and County:
5.50%, 6/15/2009 (Insured; FGIC)........................................ 2,500,000 2,511,425
5.50%, 6/15/2010 (Insured; FGIC)........................................ 2,500,000 2,496,100
San Francisco City and County Airports Commission, International Airport
Revenue:
Refunding 6.20%, 5/1/2004............................................... 500,000 541,975
6.20%, 5/1/2015......................................................... 1,325,000 1,353,965
San Francisco Unified School District, COP, Refunding
5.70%, 9/1/2003 (Insured; MBIA)......................................... 1,000,000 1,047,790
San Joaquin County, COP (General Hospital Project):
5.70%, 9/1/2001......................................................... 2,250,000 2,248,853
5.80%, 9/1/2002......................................................... 2,250,000 2,241,788
City of Santa Cruz, COP, Refunding (1992 Refunding Project):
5.875%, 5/1/1998........................................................ 500,000 515,450
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
City of Santa Cruz, COP, Refunding (1992 Refunding Project) (continued):
6%, 5/1/1999............................................................ $ 500,000 $ 520,650
Santa Maria Redevelopment Agency, Revenue, Refunding
(Town and West Side Parking Facilities) 4.625%, 6/1/2001 (Insured; FSA). 2,665,000 2,656,365
Sierra View Local Hospital District, Health Facility Revenue:
5.80%, 3/1/2002 (Guaranteed by; State of California).................... 500,000 514,075
5.90%, 3/1/2003 (Guaranteed by; State of California).................... 755,000 779,160
Southern California Public Power Authority, Refunding:
Power Project Revenue (Palo Verde Project) 6%, 7/1/2007 (Insured; AMBAC) (c) 8,000,000 8,585,280
Transmission Project Revenue (Southern Transmission Project) 5.625%, 7/1/2003 1,800,000 1,887,120
Southern California Rapid Transit District, Revenue
(Special Benefit Assessment District) 5.75%, 9/1/2005 (Insured; AMBAC) (b) 8,750,000 9,261,525
Watsonville Mammoth Lakes, COP 7.50%, 6/1/1999.............................. 65,000 65,020
U.S. RELATED-2.5%
Commonwealth of Puerto Rico, Improvement Revenue, Refunding 5.10%, 7/1/2002. 2,000,000 2,028,700
Guam Airport Authority, Revenue 5.80%, 10/1/1999............................ 1,705,000 1,745,067
Puerto Rico Public Buildings Authority, Guaranteed Public Education and
Health Facilities
6.60%, 7/1/2004 (Prerefunded 7/1/2002) (d).............................. 500,000 560,585
Virgin Islands Public Finance Authority, Revenue, Refunding 6.60%, 10/1/1998 1,530,000 1,590,267
______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $213,427,473)................... $217,328,520
=======
SHORT-TERM MUNICIPAL INVESTMENTS-7.2%
California Health Facilities Financing Authority, Revenue, Refunding
(Catholic West) VRDN 3.05% (Insured; MBIA) (e).......................... $ 3,400,000 $ 3,400,000
California Pollution Control Financing Authority, RRR (Delano Project) VRDN
3.55% (LOC; ABN Amro Bank) (a,e)........................................ 2,500,000 2,500,000
California Statewide Communities Development Authority, Revenue, Refunding
(Kaiser Foundation Hospitals) VRDN 3% (e)............................... 5,000,000 5,000,000
Orange County, Various Sanitation Districts (Capital Improvement Program)
VRDN
3.55% (LOC; National Westminster Bank) (a,e)............................ 3,900,000 3,900,000
Tustin, Improvement Bond Act, VRDN 3.55% (LOC; Kredietbank N.V.) (a,e)...... 2,000,000 2,000,000
______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $16,800,000)................... $ 16,800,000
=======
TOTAL INVESTMENTS-100.0% (cost $230,227,473)................................ $234,128,520
=======
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
CGIC Capital Guaranty Insurance Company LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance RRR Resources Recovery Revenue
GO General Obligation VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- -------- ----------------- -------------------
<S> <C> <S> <C>
AAA Aaa AAA 48.4%
AA Aa AA 18.6
A A A 19.8
BBB Baa BBB 3.2
F-1, F-1+ VMIG, MIG1, P1 SP1, A1 7.2
Not Rated (g) Not Rated (g) Not Rated (g) 2.8
------
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Wholly held by the custodian in a segregated account as collateral
for delayed-delivery or when-issued securities.
(c) Purchased on a delayed-delivery or when-issued basis.
(d) 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.
(e) 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.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Manager to be of comparable quality to
those securities in which the Fund may invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $230,227,473)-see statement..................................... $234,128,520
Cash.................................................................... 438,850
Receivable for investment securities sold............................... 7,238,079
Interest receivable..................................................... 3,004,797
Prepaid expenses........................................................ 12,867
______
244,823,113
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 89,758
Payable for investment securities purchased............................. 14,296,575
Accrued expenses and other liabilities.................................. 79,439 14,465,772
______ ______
NET ASSETS.................................................................. $230,357,341
=======
REPRESENTED BY:
Paid-in capital......................................................... $233,804,147
Accumulated undistributed investment income-net......................... 55,959
Accumulated net realized (loss) on investments.......................... (7,403,812)
Accumulated net unrealized appreciation on investments-Note 3........... 3,901,047
______
NET ASSETS at value applicable to 17,355,747 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest authorized) $230,357,341
=======
NET ASSET VALUE, offering and redemption price per share
($230,357,341 / 17,355,747 shares)...................................... $13.27
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1996
<S>
INVESTMENT INCOME: <C> <C>
INTEREST INCOME......................................................... $12,557,937
EXPENSES:
Management fee-Note 2(a).............................................. $1,417,667
Shareholder servicing costs-Note 2(b)................................. 291,947
Professional fees..................................................... 45,398
Trustees' fees and expenses-Note 2(c)................................. 36,457
Custodian fees........................................................ 24,488
Prospectus and shareholders' reports.................................. 19,090
Registration fees..................................................... 5,612
Miscellaneous......................................................... 37,660
_____
TOTAL EXPENSES.................................................. 1,878,319
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 341,281
_____
NET EXPENSES.................................................... 1,537,038
_____
INVESTMENT INCOME-NET........................................... 11,020,899
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 830,021
Net unrealized appreciation on investments.............................. 3,856,435
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 4,686,456
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $15,707,355
======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
----------------------------------
1995 1996
-------- --------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 13,743,031 $ 11,020,899
Net realized gain (loss) on investments................................. (8,206,327) 830,021
Net unrealized appreciation on investments for the year................. 4,986,720 3,856,435
_______ _______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 10,523,424 15,707,355
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (13,743,031) (10,964,940)
_______ _______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 125,817,911 106,772,841
Dividends reinvested.................................................... 9,983,535 7,738,675
Cost of shares redeemed................................................. (185,996,730) (128,845,074)
_______ _______
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (50,195,284) (14,333,558)
_______ _______
TOTAL (DECREASE) IN NET ASSETS.................................... (53,414,891) (9,591,143)
NET ASSETS:
Beginning of year....................................................... 293,363,375 239,948,484
_______ _______
End of year (including undistributed investment income-net;
$55,959 on March 31, 1996)............................................ $ 239,948,484 $ 230,357,341
======== ========
SHARES SHARES
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 9,727,979 7,980,808
Shares issued for dividends reinvested.................................. 773,219 578,767
Shares redeemed......................................................... (14,507,181) (9,627,717)
_______ _______
NET (DECREASE) IN SHARES OUTSTANDING.................................. (4,005,983) (1,068,142)
======== ========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA 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 year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED MARCH 31,
________________________________________________
PER SHARE DATA: 1993(1) 1994 1995 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net asset value, beginning of year....................... $12.50 $13.32 $13.08 $13.02
---- ---- ---- ----
INVESTMENT OPERATIONS:
Investment income-net.................................... .70 .72 .66 .62
Net realized and unrealized gain (loss) on investments... .82 (.24) (.06) .25
---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS....................... 1.52 .48 .60 .87
---- ---- ---- ----
DISTRIBUTIONS;
Dividends from investment income-net..................... (.70) (.72) (.66) (.62)
---- ---- ---- ----
Net asset value, end of year............................. $13.32 $13.08 $13.02 $13.27
==== ==== ==== ====
TOTAL INVESTMENT RETURN...................................... 13.20%(2) 3.52% 4.76% 6.75%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. -- .04% .32% .65%
Ratio of net investment income to average net assets..... 5.61%(2) 5.25% 5.13% 4.66%
Decrease reflected in above expense ratios due to undertakings
by the Manager......................................... .99%(2) .78% .47% .14%
Portfolio Turnover Rate.................................. 6.74%(3) 6.32% 17.28% 41.42%
Net Assets, end of year (000's Omitted).................. $160,716 $293,363 $239,948 $230,357
(1) From April 20, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus California 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 objective
is to provide investors with as high a level of current income exempt from
Federal and State of California personal income taxes 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. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury 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. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(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, 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.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $7,187,000
available for Federal income tax purposes to be applied against future net
securities profit, if any, realized subsequent to March 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through March 31, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied, $2,551,000 of the
carryover expires in fiscal 2003 and $4,636,000 expires in fiscal 2004.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. The most stringent state
expense limitation applicable to the Fund presently requires reimbursement of
expenses in any full fiscal year that such expenses (exclusive of certain
expenses as described above) exceed 2 1/2% of the first $30 million, 2% of the
next $70 million and 1 1/2% of the excess over $100 million of the average
value of the Fund's net assets in accordance with California "blue sky"
regulations. However, the Manager had undertaken from April 1, 1995 through
September 30, 1995, to reduce the management fee paid by the Fund, to the
extent that the Fund's aggregate expenses (exclusive of certain expenses as
described above) exceeded specified annual percentages of the Fund's average
daily net assets. The Manager has currently undertaken from October 1, 1995
through June 30, 1996, to reduce the management fee paid by, or reimburse
such excess expenses of the Fund, to the extent that the Fund's aggregate
annual expenses (exclusive of certain expenses as described above) exceed an
annual rate of .75 of 1% of the value of the Fund's average daily net assets.
The reduction in management fee, pursuant to the undertakings, amounted to
$341,281 for the year ended March 31, 1996.
The undertaking may be modified by the Manager from time to time,
providing that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, 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 year ended March 31, 1996, the Fund was charged an aggregate of
$133,436 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, 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. Such compensation amounted to $34,458 for the period from
December 1, 1995 through March 31, 1996.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, for the year ended March 31, 1996 amounted
to $96,658,158 and $120,335,749, respectively.
At March 31, 1996, accumulated net unrealized appreciation on investments
was $3,901,047, consisting of $5,355,042 gross unrealized appreciation and
$1,453,995 gross unrealized depreciation.
At March 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus California Intermediate Municipal Bond Fund, including the statement
of investments, as of March 31, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 1996 by correspondence with the custodian
and brokers. 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 California Intermediate Municipal Bond Fund at March 31,
1996, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
May 2, 1996
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended March
31, 1996 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are California residents, California personal income
taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[Dreyfus lion "d" logo]
DREYFUS CALIFORNIA 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.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 902AR963
[Dreyfus logo]
California
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
____________________________________________________
| | | |
| | LEHMAN BROTHERS | |
| PERIOD | 10-YEAR | DREYFUS CALIFORNIA |
| | MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | MUNICIPAL BOND FUND |
|-----------|-----------------|---------------------|
| 4/20/92 | 10,000 | 10,000 |
| 3/31/93 | 11,217 | 11,251 |
| 3/31/94 | 11,533 | 11,647 |
| 3/31/95 | 12,400 | 12,202 |
| 3/31/96 | 13,500 | 13,025 |
|---------------------------------------------------|
* Source: Lehman Brothers
