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 fiscal year ended March 31, 1997.
Your Fund produced a total return including bond price changes and interest
income of 4.60%.*
THE ECONOMY
Reacting to an economy which reflects strong growth, low unemployment and
stable prices, the Federal Open Market Committee (FOMC) of the Federal
Reserve Board (the "Fed") raised interest rates at the end of March for the
first time in over two years. Concerned that persistently strong demand would
increase the risk of a resurgence of inflation, the FOMC, which is the
policy-making arm of the Fed, voted to lift the Federal Funds rate by a
quarter of a percentage point to 5.5%. (The Federal Funds rate is the rate
that banks charge each other for overnight loans.) The move to raise interest
rates had been much discussed since early last year, when the Fed first
became concerned about the inflationary potential of rising wage demands
resulting from the strong rate of growth in new jobs. Yet over that time,
there has been little evidence of inflation despite robust job growth and an
unemployment rate of less than 5.5%, a level that in the 1970s and 1980s
contributed to an escalation in wages and prices. Instead, prices on
virtually all sectors of the economy have remained quiescent. The Consumer
Price Index has risen a modest 2.8% over the past 12 months, while increases
in producer prices have been equally modest and, of late, many prices have
actually fallen.
Not surprisingly, the consumer confidence index of the Conference Board,
a private research group, remains near all-time high territory. A closely
followed component measures consumer sentiment about the job market. The
percentage of people reporting that jobs are plentiful has recently reached
an eight-year high, while the portion reporting that jobs are hard to get was
the lowest ever recorded. That positive attitude regarding job security has
been cited by Federal Reserve Board Chairman Greenspan as a possible
harbinger of higher wage pressures, which could result in an acceleration in
the rate of inflation.
Looking at the economy more generally, factory production _ particularly
the durable goods sector _ has picked up lately after slumping over the last
two months of last year. Also suggesting renewed vigor in the economy was the
brisk pickup in retail sales from their relatively sluggish pace over the
last quarter of 1996. As a corollary to the surge in retail sales, late
payments on credit card debt have risen to the highest proportion of accounts
since 1980, the year the American Bankers Association first monitored credit
card delinquencies.
Effective monetary policy is formulated less on how conditions are today
than on how things may be in the future; hence the Fed's preemptive move to
tighten without significant direct evidence that inflation is already on the
rise is understandable. In recent testimony to Congress made before the Fed's
decision to raise the Federal Funds rate, Fed Chairman Alan Greenspan said
that the question "is not so much . . . where prices are or have been, but
rather what the state of the economy will be later this year and into 1998
when any actions we may or may not have taken would become effective." We
continue to remain alert to any economic developments that might indicate a
further tightening by the Fed.
MARKET ENVIRONMENT
After peaking during the summer of 1996, interest rates fell
significantly during the fall. The economic growth that was evident during
the year did not translate into anticipated higher inflation and enabled the
market to rally. The municipal market has seen considerable volatility during
the first quarter of 1997 and the recent Fed tightening once again moved
rates to levels that were seen last July. Initially it was assumed that most
of the Fed move had been priced into the municipal market, but the market
continues to erode, looking toward the possibility of another tightening in
May. The rate increase has most adversely affected the taxable market, and
municipals have outperformed Treasuries during recent downturns. Over the
past quarter, the municipal market has been able to absorb a significant
supply calendar, amounting to approximately $37.0 billion. As the stock
market's pace begins to slow, we believe that renewed attention may be
directed to the municipal market by investors.
PORTFOLIO OVERVIEW
One result of the current rising rate environment is the flattening of
the yield curve. Rate changes in the intermediate sector have caused a
compression in the middle of the curve, where the yield reduction between
successive years has moved from 10 basis points to 5 basis points. For issues
maturing in 2008 and beyond, the curve has maintained the normal spread
relationship and currently remains the more attractive sector, affording the
investor yields that are competitive with the long end of the market without
extending and incurring too much added volatility. During the course of the
year, the Fund has been weighted with higher coupon paper, reduced its
position in discount bonds (bonds trading substantially below their face
value) and shortened its duration. We anticipate that as rates rise, the
market will provide us with opportunities to purchase discount paper at
attractive levels; however we believe that we have not yet reached that point
and would continue to maintain a more defensive stance. The California market
has improved considerably over the past year and we continue to maintain a
positive outlook for the state.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1997
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1997
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
$14,204
Lehman Brothers
10-Year Municipal
Bond Index*
Dollars
$13,623
Dreyfus California
Intermediate Municipal
Bond Fund
*Source: Lehman Brothers
Average Annual Total Returns
One Year Ended From Inception (4/20/92)
March 31, 1997 to March 31, 1997
____________________ _______________________
4.60% 6.45%
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 9-12 years. The Index does not take into
account charges, fees and other expenses and is not limited to investments
principally in California municipal obligations. 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, 1997
Principal
Long-Term Municipal Investments_98.8% Amount Value
_______ _______
<S> <C> <C>
California_97.8%
State of California, GO 6.20%, 9/1/2002..................................... $ 500,000 $ 535,355
California Department of Water Resources, Water Systems Revenue (Central
Valley Project)
5.90%, 12/1/2005.......................................................... 1,175,000 1,254,935
California Health Facilities Financing Authority, Revenue:
(Adventist Health System/West) 6.40%, 3/1/2002 (Insured; MBIA)............ 500,000 535,320
(Downey Community College):
5.10%, 5/15/2002........................................................ 2,500,000 2,485,400
5.20%, 5/15/2003........................................................ 2,500,000 2,483,825
(Marin General Hospital) 5.70%, 8/1/2003 (Insured; FSA)................... 1,760,000 1,850,886
Refunding (Saint Francis Memorial Hospital) 5.75%, 11/1/2003.............. 1,130,000 1,156,634
California Housing Finance Agency, Revenue:
(Home Mortgage) 5.80%, 8/1/2003........................................... 1,100,000 1,124,431
(Multi-Unit Rental Housing) 6.50%, 8/1/2005............................... 500,000 523,655
California Pollution Control Financing Authority, PCR (Laidlaw, Inc.)
6.50%, 5/1/2002 (LOC; Bank of America) (a)................................ 1,500,000 1,531,155
California Public Works Board, LR:
(Department of Corrections-Calipatria) 6.10%, 9/1/2003 (Insured; MBIA).... 1,000,000 1,068,230
Refunding (Department of Corrections-Imperial County) 5.125%, 9/1/2009.... 4,000,000 3,910,760
(Secretary of State) 6.10%, 12/1/2004 (Insured; AMBAC).................... 6,100,000 6,583,303
(Various Community College Projects ) 6%, 12/1/2008 (Insured; AMBAC)...... 3,975,000 4,177,487
(Various University of California Projects):
5.90%, 12/1/2003 (Insured; AMBAC)....................................... 1,000,000 1,063,510
5.10%, 6/1/2004......................................................... 3,070,000 3,073,438
California Statewide Community Development Authority:
COP, Revenue, Refunding (Huntington Memorial Hospital) 5.50%, 7/1/2010.... 4,000,000 3,925,920
COP, Revenue (Insured Health Facilities-Unihealth) 5.15%, 10/1/2003....... 2,000,000 2,037,580
LR (Oakland Convention Centers Project) 6%, 10/1/2004 (Insured; AMBAC).... 2,700,000 2,883,060
Central Coast Water Authority, Revenue (State Water Project, Regional
Facilities):
6.15%, 10/1/2005 (Insured; AMBAC) (Prerefunded 10/1/2002) (b)............. 1,500,000 1,632,225
5.15%, 10/1/2009 (Insured; AMBAC)......................................... 6,300,000 6,207,075
Central Valley Financing Authority, Cogeneration Project Revenue
(Carson Ice General Project) 5.70%, 7/1/2003.............................. 2,000,000 2,006,040
Contra Costa County, COP (Merrithew Memorial Hospital Replacement)
6.20%, 11/1/2001.......................................................... 1,145,000 1,220,020
Daly City, COP, Refunding 5.30%, 6/1/2002 (Insured; MBIA)................... 1,230,000 1,265,978
East Bay Municipal Utility District, Water Systems Revenue, Refunding:
6%, 6/1/2004.............................................................. 1,365,000 1,456,223
6%, 6/1/2005.............................................................. 560,000 593,858
6.10%, 6/1/2006........................................................... 2,000,000 2,121,220
Escondido Joint Powers Financing Authority, LR:
(Escondido Civic Center Project) 6%, 9/1/2005 (Insured; AMBAC)............ 1,400,000 1,510,614
Refunding (California Center for the Arts) 5.90%, 9/1/2010 (Insured; AMBAC) 3,440,000 3,579,664
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
California (continued)
Garden Grove Agency, Community Development, Tax Allocation, Refunding
(Garden Grove Community Project):
5.20%, 10/1/2001........................................................ $ 1,225,000 $ 1,238,696
5.30%, 10/1/2002........................................................ 1,285,000 1,302,103
Industry Urban Development Agency, Tax Allocation, Refunding
(Civic Recreation Project No. 1) 5.40%, 5/1/2002 (Insured; MBIA).......... 2,500,000 2,577,650
Long Beach, COP (Fleet Services Project) 6.10%, 5/1/2001.................... 500,000 527,230
City of Los Angeles:
(Judgment Obligation) 5%, 8/1/2002........................................ 3,000,000 3,032,370
Mortgage, Refunding 5.75%, 7/1/2002 (Insured; MBIA)....................... 745,000 764,236
Revenue, Harbor Department:
5%, 8/1/2002............................................................ 3,690,000 3,737,970
5%, 8/1/2003............................................................ 5,085,000 5,136,867
6%, 8/1/2006............................................................ 1,320,000 1,385,234
6%, 8/1/2014............................................................ 6,500,000 6,617,065
Wastewater System:
5.90%, 6/1/2003 (Insured; AMBAC)........................................ 1,000,000 1,058,310
6%, 6/1/2004 (Insured; AMBAC)........................................... 1,000,000 1,066,830
Los Angeles County, COP:
(Edmund D. Edelman Children's Court):
5.80%, 4/1/2001 (Insured; AMBAC)........................................ 500,000 522,530
6%, 4/1/2003 (Insured; AMBAC)........................................... 500,000 532,435
(Marina Del Ray) 5.50%, 7/1/1997.......................................... 5,155,000 5,168,661
Los Angeles County Capital Asset Leasing Corporation, Leasehold Revenue,
Refunding
5.75%, 12/1/2004 (Insured; AMBAC)......................................... 2,600,000 2,719,340
Los Angeles County Metropolitan Transportation Commission, Sales Tax Revenue,
Refunding
5.50%, 7/1/2007........................................................... 3,350,000 3,433,382
Los Angeles County Sanitation Districts Financing Authority, Revenue (Capital
Project)
5.375%, 10/1/2013 (Insured; MBIA)......................................... 2,625,000 2,549,558
Los Angeles County Transportation Commission, Sales Tax Revenue, Refunding:
5.75%, 7/1/2001 (Insured; FGIC)........................................... 1,250,000 1,307,025
6%, 7/1/2004 (Insured; FGIC).............................................. 2,000,000 2,143,420
Los Angeles Department Water & Power, Electric Plant Revenue, Crossover
Refunding:
5.70%, 9/1/2011 (Insured; FGIC)........................................... 3,500,000 3,538,710
5.75%, 9/1/2013........................................................... 2,000,000 2,003,860
Los Angeles Multi-Family Revenue (Earthquake Rehabilitation Projects)
5.65%, 12/1/2025 (Insured; FNMA).......................................... 10,000,000 10,160,700
Los Angeles Municipal Improvement Corp., Sanitation Equipment Charge Revenue
5.50%, 2/1/2003 (Insured; FSA)............................................ 5,000,000 5,190,050
Martinez Unified School District, Refunding:
5.50%, 8/1/2003........................................................... 1,170,000 1,192,616
5.75%, 8/1/2004........................................................... 1,240,000 1,274,794
Metropolitan Water District, Southern California Waterworks, Revenue 5.125%, 7/1/2011 4,000,000 3,847,840
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
California (continued)
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Power Project) 5.75%, 7/1/2001 (Insured; MBIA)............. $ 1,210,000 $ 1,265,200
Oakland, COP, Refunding (Oakland Museum) 6%, 4/1/2012 (Insured; AMBAC)...... 2,500,000 2,549,100
Oakland Redevelopment Agency, Refunding
(Central District Redevelopment-Senior Tax Allocation):
5.65%, 2/1/2003 (Insured; AMBAC)........................................ 1,500,000 1,568,355
5.75%, 2/1/2004 (Insured; AMBAC)........................................ 1,500,000 1,580,730
Orange County Municipal Water District, Water Facilities Corp., Refunding
(Allen-McColloch Pipeline) 5%, 7/1/2006 (Insured; MBIA)................... 5,380,000 5,369,724
Port Oakland, Revenue:
Port 6.10%, 11/1/2003 (Insured; MBIA)..................................... 1,245,000 1,323,248
Special Facilities (Mitsui O.S.K. Lines Ltd.)
6.40%, 1/1/2003 (LOC; Industrial Bank of Japan) (a)..................... 1,000,000 1,045,750
Riverside County, Asset Leasing Corp., Leasehold Revenue (Riverside County
Hospital Project)
5.90%, 6/1/2002........................................................... 3,000,000 3,035,610
San Bernardino County, COP (West Valley Detention Center)
5.90%, 11/1/2001 (Insured; MBIA).......................................... 1,000,000 1,055,030
San Diego County Regional Transportation Commission, Sales Tax Revenue:
5.50%, 4/1/2005 (Insured; FGIC)........................................... 6,000,000 6,217,860
5%, 4/1/2008 (Insured; AMBAC)............................................. 5,000,000 4,923,200
San Diego County Unified School District, COP (Capital Projects, Phase XI) 4.10%, 7/1/2002 2,500,000 2,423,200
San Francisco City and County Airports Commission, International Airport
Revenue:
Refunding 6.20%, 5/1/2004................................................. 500,000 538,535
6.20%, 5/1/2015........................................................... 1,325,000 1,352,308
San Francisco Unified School District, COP, Refunding 5.70%, 9/1/2003 (Insured; MBIA) 1,000,000 1,042,680
Santa Ana Housing Authority, MFMR (City Garden Apartments) 5.35%, 12/1/2021. 3,000,000 2,977,440
Southern California Public Power Authority, Refunding:
Power Project Revenue:
(Multiple Projects):
6.75%, 7/1/2012 (Insured; FSA)........................................ 2,000,000 2,263,380
6.75%, 7/1/2013 (Insured; FSA)........................................ 1,800,000 2,032,200
(Palo Alto) 6%, 7/1/2003 (Insured; AMBAC)............................... 2,500,000 2,667,775
Transmission Project Revenue (Southern Transmission Project) 5.625%, 7/1/2003 1,800,000 1,879,722
Southern California Rapid Transit District, Revenue
(Special Benefit Assessment District) 5.75%, 9/1/2005 (Insured; AMBAC).... 8,750,000 9,235,888
Tri-City Hospital District, Revenue, Refunding 5.375%, 2/15/2007............ 3,615,000 3,679,889
University of California, COP (Various Capital Projects) 5.55%, 9/1/2010.... 6,325,000 6,337,524
U.S. Related_1.0%
Commonwealth of Puerto Rico, Improvement Revenue, Refunding 5.10%, 7/1/2002. 2,000,000 2,008,060
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $201,739,183)................... $206,199,691
=======
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Short-Term Municipal Investments_1.2% Amount Value
_______ _______
California Pollution Control Financing Authority, PCR (Pacific Gas and Electric), VRDN
3.55% (LOC; Bank of America) (a,c) (cost $2,500,000)...................... $ 2,500,000 $ 2,500,000
_______
TOTAL INVESTMENTS_100.0% (cost $204,239,183)................................ $208,699,691
=======
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FNMA Federal National Mortgage Association MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GO General Obligation VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
_____ ________ _________________ __________________
<S> <C> <C> <C>
AAA Aaa AAA 59.5%
AA Aa AA 20.2
A A A 9.6
BBB Baa BBB 2.2
F-1,F-1+ VMIG1,MIG1,P1 SP1,A1 6.1
Not Rated (e) Not Rated (e) Not Rated (e) 2.4
____
100.0 %
====
</TABLE>
Notes to Statement of Investments:
(a) Secured by letter of credit.
(b) 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.
(c) 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.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) 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 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, 1997
Cost Value
_______ _______
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $204,239,183 $208,699,691
Interest receivable........................ 3,106,521
Prepaid expenses........................... 11,233
_______
211,817,445
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 116,642
Cash overdraft due to Custodian............ 815,858
Payable for shares of Beneficial Interest redeemed 29,237
Accrued expenses and other liabilities..... 65,868
_______
1,027,605
_______
NET ASSETS.................................................................. $210,789,840
=======
REPRESENTED BY: Paid-in capital............................ $214,233,575
Accumulated net realized gain (loss) on investments (7,904,243)
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4 ....................... 4,460,508
_______
NET ASSETS.................................................................. $210,789,840
=======
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST
AUTHORIZED) ........................................... 15,884,758
NET ASSET VALUE, offering and redemption price per share_Note 3(d).......... $13.27
====
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $11,674,122
EXPENSES: Management fee_Note 3(a)................... $1,331,246
Shareholder servicing costs_Note 3(b)...... 326,338
Professional fees.......................... 40,382
Trustees' fees and expenses_Note 3(c)...... 37,485
Custodian fees............................. 23,418
Prospectus and shareholders' reports....... 7,591
Registration fees.......................... 7,433
Miscellaneous.............................. 35,462
______
Total Expenses....................... 1,809,355
Less_reduction in management fee due to
undertakings_Note 3(a)................. (80,535)
______
Net Expenses......................... 1,728,820
_______
INVESTMENT INCOME_NET....................................................... 9,945,302
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ (500,431)
Net unrealized appreciation (depreciation) on investments 559,461
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 59,030
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $10,004,332
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1997 March 31, 1996
________ ________
OPERATIONS:
Investment income_net.................................................. $ 9,945,302 $ 11,020,899
Net realized gain (loss) on investments................................ (500,431) 830,021
Net unrealized appreciation (depreciation) on investments.............. 559,461 3,856,435
________ ________
Net Increase (Decrease) in Net Assets Resulting from Operations...... 10,004,332 15,707,355
________ ________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net.................................................. (10,001,261) (10,964,940)
________ ________
BENEFICIAL INTEREST TRANSACTIONS :
Net proceeds from shares sold.......................................... 34,554,439 106,772,841
Dividends reinvested................................................... 7,213,329 7,738,675
Cost of shares redeemed................................................ (61,338,340) (128,845,074)
________ ________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (19,570,572) (14,333,558)
________ ________
Total Increase (Decrease) in Net Assets............................ (19,567,501) (9,591,143)
NET ASSETS:
Beginning of Period.................................................... 230,357,341 239,948,484
________ ________
End of Period.......................................................... $ 210,789,840 $ 230,357,341
======== ========
UNDISTRIBUTED INVESTMENT INCOME_NET...................................... ___ $ 55,959
________ ________
Shares Shares
________ ________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 2,600,853 7,980,808
Shares issued for dividends reinvested................................. 541,459 578,767
Shares redeemed........................................................ (4,613,301) (9,627,717)
________ ________
Net Increase (Decrease) in Shares Outstanding........................ (1,470,989) (1,068,142)
======== ========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<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 period indicated. This
information has been derived from the Fund's financial statements.
Year Ended March 31,
______________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993(1)
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $13.27 $13.02 $13.08 $13.32 $ 12.50
____ ____ ____ ____ ____
Investment Operations:
Investment income_net........................ .60 .62 .66 .72 .70
Net realized and unrealized gain (loss)
on investments............................. _ .25 (.06) (.24) .82
____ ____ ____ ____ ____
Total from Investment Operations............. .60 .87 .60 .48 1.52
____ ____ ____ ____ ____
Distributions:
Dividends from investment income_net......... (.60) (.62) (.66) (.72) (.70)
____ ____ ____ ____ ____
Net asset value, end of period............... $13.27 $13.27 $13.02 $13.08 $13.32
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 4.60% 6.75% 4.76% 3.52% 13.20%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .78% .65% .32% .04% _
Ratio of net investment income
to average net assets...................... 4.48% 4.66% 5.13% 5.25% 5.61%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .04% .14% .47% .78% .99%(2)
Portfolio Turnover Rate...................... 35.79% 41.42% 17.28% 6.32% 6.74%(3)
Net Assets, end of period (000's Omitted).... $ 210,790 $230,357 $239,948 $293,363 $160,716
(1) From April 20, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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 investment
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. 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 (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 $7,908,000
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
March 31, 1997. If not applied, $2,551,000 of the carryover expires in fiscal
2003, $4,636,000 expires in fiscal 2004 and $721,000 expires in fiscal 2005.
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 their 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 March 31, 1997, the Fund did not borrow under the Facility.
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. The Manager had undertaken
from April 1, 1996 through July 4, 1996, to reduce the management fee paid by
the Fund, to the extent that the Fund's aggregate expenses, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceeded
specified annual percentages of the Fund's average daily net assets. The
Manager has currently undertaken from July 8, 1996 through March 31, 1998, to
reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate annual expenses (exclusive of certain expenses as described above)
exceed an annual rate of .80 of 1% of the value of the Fund's average daily
net assets. The reduction in management fee, pursuant to the undertakings,
amounted to $80,535 during the period ended March 31, 1997.
(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 March 31, 1997, the Fund was charged an aggregate of
$176,287 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. Such
compensation amounted $96,926 during the period ended March 31, 1997.
(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.
(D) Effective November 4, 1996, a 1% redemption fee is charged on certain
redemptions of Fund shares (including redemptions through the use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specific effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended March
31, 1997, redemption fees amounted to $1,280.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1997
amounted to $77,144,170 and $88,275,772, respectively.
At March 31, 1997, accumulated net unrealized appreciation on investments
was $4,460,508, consisting of $4,955,923 gross unrealized appreciation and
$495,415 gross unrealized depreciation.
At March 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).
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, 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 March 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 California Intermediate Municipal Bond Fund at March 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.
[ERNST & YOUNG LLP signature logo]
New York, New York
May 2, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment-income net during its fiscal year ended March
31, 1997 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 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
[Dreyfus lion "d" logo]
Registration Mark
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 902AR973
[Dreyfus logo]
Registration Mark
California
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1997
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
3/31/97 14,204 13,623
* Source: Lehman Brothers
