DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report on the Dreyfus
California Intermediate Municipal Bond Fund for the 12-month period ended
March 31, 1998. Your Fund produced a total return, including share price
changes and dividend income generated, of 8.77%* and a tax-free distribution
rate per share of 4.29%.**
THE ECONOMY
The United States economy is well on the track to its eighth consecutive
year of expansion. Low interest rates, restrained inflation and plentiful
jobs have driven measures of consumer confidence to record levels. Personal
income has grown strongly over the reporting period and consumer spending,
after a sluggish holiday season, has picked up sharply this year. The
production side of the economy has remained strong as well, although signs of
leveling off were seen early in the year, perhaps due to the economic
problems in Asia. The first effects of the Asian economic crisis were felt at
the end of last year when after-tax corporate profits fell in the fourth
quarter, the first decline since the third quarter of 1996. Balance of Trade
figures for January (the latest data available) provided additional evidence
that the economic difficulties in Asia may be affecting the U.S. economy.
The Federal Reserve Board expects that a reduction in demand for U.S.
exports will result from turmoil in Asia and dampen our domestic economic
growth as a result. Currency devaluations throughout Asia, in turn, have made
imports into the United States less expensive. Cheaper imports and waning
demand for U.S. exports should place additional downward pressure on domestic
prices, helping further to control inflation. The year-long decline in oil
prices has also helped. A restrained rate of inflation, in turn, would ease
some of the strains on the labor market, and help keep labor costs under
control. The upward pressure on wages has been a paramount concern of the Fed
because of the risk it poses for rekindling inflation. Wage costs have been
rising at about 4% over the reporting period, a rate that has significantly
outpaced inflation. New job creation has been strong over the reporting
period with the unemployment rate remaining at or near 25-year lows.
Inflation, though, has stayed tame. The Consumer Price Index has risen 1.6%
over the past 12 months and a broader measure of the cost of living, the
Gross Domestic Product Price Deflator, has grown at a 1.4% rate over the last
two quarters of last year. The Producer Price Index was in outright decline
over the reporting period.
Restrained inflation has kept the Fed from increasing interest rates. The
last increase in short-term rates came in March 1997 when the target rate for
Federal Funds was raised by one quarter of a percent to 5.5%. (The Federal
Funds rate is the rate of interest that banks charge one another for
overnight loans.)
Low interest rates have provided a strong fundamental underpinning for
interest rate-sensitive sectors of the economy such as housing. In this case,
the Asian crisis has actually proven a stimulus to consumer spending since
international bond investors have sought the liquidity safety of U.S.
Government securities, causing interest rates to fall. This reduction in
borrowing costs has spurred mortgage refinancing, thus giving consumers
additional spending power. Mortgage rates have been at levels not seen since
the 1960s. The housing market, a critical segment of the economy, has
responded accordingly. New housing starts rose to their highest annual level
in over ten years, while resale rates of existing homes set records during
the reporting period. Overall spending on construction, both residential and
commercial, has been solid.
So far, the economy has remained remarkably robust and inflation-neutral.
We are sensitive to the longevity of this extraordinary economic advance and
are alert to evidence of a potential reversal in direction or an upsurge in
inflation.
MARKET ENVIRONMENT
Since our last letter, the bond market has turned in a strong
performance. As illustrated by the long-term U.S. Treasury Bond, yields moved
from 6.32% in early October to 5.93% at the end of March; during the interim,
rates dropped to even lower levels. The municipal market participated in this
price rally, although not to the same degree. As a result,
municipals have remained attractive when compared to Treasuries. During this
time period the Federal Reserve held rates unchanged as concern over the
effect of the Asian crisis sent investors to the safe harbor of the Treasury
market.
This favorable environment brought a record level of first quarter
financing into the municipal market. Budget surpluses are not occurring in
the Federal Government alone: many states and municipalities have seen
dramatic changes in their economies, with better fiscal management and strong
tax receipts enhancing their bottom lines. With interest rates remaining at
relatively low levels, municipalities can be expected to issue refunding
obligations to replace their outstanding higher coupon bonds with new issues
paying lower interest rates. Refundings, along with the issuance of
"new-money" bonds, can easily swell the calendar of new issues, temporarily
necessitating price adjustments in order to attract buyers.
We are currently at the time of year when tax payments and heavy issuance
weighs on the fixed income market. Thus far, inflation has remained under
control: however, the economy continues to remain strong and we anticipate
that more than likely we have seen the low point in rates for the immediate
future and the market has settled into a trading range waiting for a clearer
direction.
PORTFOLIO OVERVIEW
During the past fiscal year, the intermediate sector of the municipal
market provided the investor with attractive returns. Bond yields bottomed
out during last spring with prices at their lowest levels during this time.
As it became more apparent that inflation would remain stable and the economy
would not overheat, we took a constructive view toward interest rates and
added the type of structure that would participate in the rally. It was a
blended approach utilizing both discounts and high coupons, both of which
remained in demand during the year and contributed favorably to the
performance of the Fund. For the fiscal year ended March 31, 1998, the
Fund's total return was 8.77%. This compares favorably to the Lipper
California Intermediate Municipal Debt category average of 8.20% for the same
period. Heavy issuance of paper during that time gave us the opportunity to
add state-specific paper at general market levels. Within recent months, the
market has settled into a trading range. The direction remains somewhat
clouded and although we have not turned negative, a more cautious approach is
warranted.
Included with this report are financial statements relating to your
Fund's holdings and its financial condition. We hope you find them
informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid. Income is subject to state and local taxes for non-California
residents.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period, divided by the net asset value per share
at the end of the period, adjusted for capital gain distributions. Some
income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
<TABLE>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1998
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
$15,678
Lehman Brothers 10-Year Municipal Bond Index*
$14,818
Dreyfus California Intermediate Municipal
Bond Fund
*Source: Lehman Brothers]
Average Annual Total Returns
One Year Ended Five Years Ended From Inception (4/20/92)
March 31, 1998 March 31, 1998 to March 31, 1998
____________________ ____________________ __________________________
<S> <C> <C> <C>
8.77% 5.66% 6.83%
</TABLE>
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,
coupled with the potentially longer maturity of the Index, can contribute to
the Index potentially outperforming the Fund. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
<TABLE>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1998
Principal
Long-Term Municipal Investments-98.3% Amount Value
_____________ _____________
<S> <C> <C>
California-94.0%
California Department of Water Resources, Water Systems Revenue (Central
Valley Project)
5.90%, 12/1/2005.......................................................... $ 1,175,000 $ 1,303,075
California Educational Facilities Authority, Revenue (Pooled College and
University Project)
5.375%, 4/1/2013 (Insured; MBIA).......................................... 1,000,000 1,039,160
California Health Facilities Financing Authority, Revenue:
(Downey Community Hospital) 5.625%, 5/15/2008............................. 6,000,000 6,260,340
(Marin General Hospital) 5.70%, 8/1/2003 (Insured; FSA)................... 1,760,000 1,895,309
Refunding (Pomona Valley Hospital) 5.375%, 7/1/2009 (Insured; MBIA)....... 3,240,000 3,430,609
Refunding (Saint Francis Memorial Hospital) 5.75%, 11/1/2003.............. 1,130,000 1,217,202
Refunding (Stanford Health Care) 5%, 11/15/2011 (Insured; AMBAC).......... 2,370,000 2,405,384
California Housing Finance Agency, Revenue (Home Mortgage) 5.80%, 8/1/2003.. 1,080,000 1,133,158
California Public Works Board, LR:
(Department of Corrections-Calipatria) 6.10%, 9/1/2003 (Insured; MBIA).... 1,000,000 1,077,860
Refunding (Department of Corrections-Imperial County) 5.125%, 9/1/2009.... 4,000,000 4,192,360
(Secretary of State) 6.10%, 12/1/2004 (Insured; AMBAC).................... 6,100,000 6,786,189
(Various Community College Projects ) 6%, 12/1/2008 (Insured; AMBAC)...... 3,975,000 4,333,505
(Various University of California Projects):
5.90%, 12/1/2003 (Insured; AMBAC)....................................... 1,000,000 1,090,130
Refunding 5.50%, 6/1/2010............................................... 5,000,000 5,388,750
California Statewide Community Development Authority:
COP, Revenue:
(Hollywood Presbyterian Medical Center) 5%, 1/1/2001.................... 1,500,000 1,508,280
Refunding (Huntington Memorial Hospital) 5.50%, 7/1/2010................ 4,000,000 4,237,560
LR, Refunding (Oakland Convention Centers Project) 6%, 10/1/2004 (Insured; AMBAC) 2,700,000 2,939,868
California, Veterans 5.40%, 12/1/2014....................................... 5,000,000 5,089,750
Central Coast Water Authority, Revenue (State Water Project, Regional
Facilities)
5.15%, 10/1/2009 (Insured; AMBAC)......................................... 6,300,000 6,608,511
Contra Costa County, COP (Merrithew Memorial Hospital Replacement)
6.20%, 11/1/2001.......................................................... 1,145,000 1,229,261
Escondido Joint Powers Financing Authority, LR, Refunding
(California Center for the Arts) 5.90% 9/1/2010 (Insured; AMBAC).......... 3,440,000 3,774,574
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue
Zero Coupon, 1/1/2007..................................................... 2,000,000 1,482,260
Los Angeles City, Revenue:
Harbor Department:
5%, 8/1/2003............................................................ 2,500,000 2,590,300
6%, 8/1/2006............................................................ 1,320,000 1,420,742
6%, 8/1/2014............................................................ 6,500,000 7,001,865
Multi-Family (Earthquake Rehabilitation Projects) 5.65%, 12/1/2025 (Insured; FNMA) 10,000,000 10,491,000
Mortgage, Refunding 5.75%, 7/1/2002 (Insured; MBIA)....................... 570,000 589,665
Wastewater System:
5.90%, 6/1/2003 (Insured; AMBAC)........................................ 1,000,000 1,084,290
6%, 6/1/2004 (Insured; AMBAC, Prerefunded 6/1/2002) (a)................. 1,000,000 1,091,540
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ____________
California (continued)
Los Angeles County Capital Asset Leasing Corporation, Leasehold Revenue, Refunding
5.75%, 12/1/2004 (Insured; AMBAC)......................................... $ 2,600,000 $ 2,828,904
Los Angeles County Metropolitan Transportation Commission, Sales Tax Revenue,
Refunding
5.50%, 7/1/2007........................................................... 3,350,000 3,580,681
Los Angeles County Transportation Commission, Sales Tax Revenue, Refunding:
5.75%, 7/1/2001 (Insured; FGIC)........................................... 1,250,000 1,320,250
6%, 7/1/2004 (Insured; FGIC).............................................. 2,000,000 2,204,020
Los Angeles Department Water & Power, Electric Plant Revenue, Crossover
Refunding
5.70% 9/1/2011 (Insured; FGIC)............................................ 3,500,000 3,729,495
Metropolitan Water District of Southern California, Waterworks Revenue:
5.125%, 7/1/2011.......................................................... 4,000,000 4,128,600
5%, 7/1/2013.............................................................. 5,000,000 5,035,000
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Power Project) 5.75%, 7/1/2001 (Insured; MBIA)............. 1,210,000 1,278,002
Oakland, COP, Refunding (Oakland Museum) 6%, 4/1/2012 (Insured; AMBAC)...... 2,500,000 2,668,150
Oakland Redevelopment Agency, Refunding
(Central District Redevelopment-Senior Tax Allocation):
5.65%, 2/1/2003 (Insured; AMBAC)........................................ 1,500,000 1,603,620
5.75%, 2/1/2004 (Insured; AMBAC)........................................ 1,500,000 1,624,740
Orange County:
Municipal Water District, Water Facilities Corp., COP, Refunding
(Allen-McColloch Pipeline) 5%, 7/1/2006 (Insured; MBIA)................. 5,380,000 5,646,525
COP, Refunding 5.70, 7/1/2010 (Insured; MBIA)............................. 6,445,000 6,965,047
Public Financing Authority, Waste Management Systems Revenue, Refunding
5.25%, 12/1/2004 (Insured; AMBAC)....................................... 4,280,000 4,499,308
Orange, MFHR (Villa Santiago Rehab Project)
5.60%, 10/1/2027 (Insured: FNMA).......................................... 1,465,000 1,530,617
Port Oakland, Revenue:
Port 6.10%, 11/1/2003 (Insured; MBIA)..................................... 1,245,000 1,361,271
Special Facilities (Mitsui O.S.K. Lines Ltd.)
6.40%, 1/1/2003 (LOC; Industrial Bank of Japan) (b)..................... 1,000,000 1,078,590
Sacramento County, Special Tax, Refunding (Community Facilities District
Number 1):
5.20%, 12/1/2007.......................................................... 1,115,000 1,120,809
5.30%, 12/1/2008.......................................................... 1,225,000 1,235,841
5.40%, 12/1/2009.......................................................... 1,230,000 1,240,504
San Bernardino County, COP (West Valley Detention Center)
5.90%, 11/1/2001 (Insured; MBIA).......................................... 1,000,000 1,065,660
San Diego County Water Authority, COP, Water Revenue, Refunding 5.25%, 5/1/2007 5,000,000 5,334,500
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
California (continued)
San Francisco City and County Airports Commission, International Airport Revenue:
6.20%, 5/1/2015 (Insured; FGIC)........................................... $ 1,325,000 $ 1,422,308
(Special Facilities Lease-SFO Fuel) 5.25%, 1/1/2008 (Insured; AMBAC)...... 2,575,000 2,712,376
San Francisco City and County Redevelopment Agency, Hotel Tax Revenue:
5%, 7/1/2010 (Insured; FSA)............................................... 2,770,000 2,836,148
5%, 7/1/2011 (Insured; FSA)............................................... 2,825,000 2,866,189
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue:
Zero Coupon, 1/1/2011..................................................... 8,000,000 4,356,000
Refunding, Zero Coupon, 1/15/2006 (Insured; MBIA)......................... 5,000,000 3,548,900
Santa Ana Housing Authority, MFHR (City Garden Apartments) 5.35%, 12/1/2021. 3,000,000 3,098,460
Southern California Public Power Authority, Transmission Project Revenue
Refunding (Southern Transmission Project) 5.625%, 7/1/2003................ 1,800,000 1,927,476
Southern California Rapid Transit District, Revenue
(Special Benefit Assessment District) 5.75%, 9/1/2005 (Insured; AMBAC).... 8,750,000 9,594,638
Stockton Health Facilities Authority, Revenue (Dameron Hospital):
5%, 12/1/2005............................................................. 1,240,000 1,261,241
5.10%, 12/1/2006.......................................................... 1,305,000 1,334,258
5.20%, 12/1/2007.......................................................... 1,300,000 1,336,712
Tri-City Hospital District, Revenue, Refunding 5.375%, 2/15/2007............ 3,615,000 3,865,917
U.S. Related-4.3%
Commonwealth of Puerto Rico, Improvement Revenue, Refunding:
5.375%, 7/1/2005.......................................................... 3,000,000 3,172,980
5.50%, 7/1/2011........................................................... 1,500,000 1,599,675
Guam, LOR, Refunding, (Infrastructure Improvement) 5.25%, 11/1/2009 (Insured; AMBAC) 1,210,000 1,287,803
Puerto Rico Electric Power Authority, Power Revenue 5.50%, 7/1/2008......... 2,590,000 2,770,963
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $193,185,487)................... $202,764,675
=============
Short-Term Municipals Investments-1.7%
California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas
and Electric)
VRDN 3.75%................................................................ $ 1,000,000$ 1,000,000
Irvine California Improvement Bond Act (Oak Creek Project)
VRDN 3.80% (LOC; Canadian Imperial Bank of Commerce) (b).................. 2,500,000 2,500,000
_____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $3,500,000).................... $ 3,500,000
=============
TOTAL INVESTMENTS-100.0% (cost $196,685,487)................................ $206,264,675
=============
</TABLE>
<TABLE>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
Summary of Abbreviations
<S> <C> <C> <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 MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
LOR Limited Obligation Revenue
Summary of Combined Ratings (Unaudited)
</TABLE>
<TABLE>
Standard Percentage
Fitch (c) or Moody's or & Poor's of Value
_______ ________ ________ __________
<S> <C> <C> <C>
AAA Aaa AAA 61.4%
AA Aa AA 18.7
A A A 10.4
BBB Baa BBB 3.9
F-1+,F-1 MIG1,VMIG1,P1 SP1,A1 1.7
Not Rated (d) Not Rated (d) Not Rated (d) 3.9
_______
100.0%
=======
</TABLE>
Notes to Statement of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal
and interest on the municipal issue and to retire the bonds in
full at the earliest refunding date.
(b) Secured by letters of credit.
(c) Fitch currently provides creditworthiness information for a
limited number of investments.
(d) Securities which, while not rated by Fitch, Moody's or Standard
and Poor's have been determined by the Manager to be of comparable
quality to those securities in which the Fund may invest.
(e) At March 31, 1998, 28.0% of the Fund's net assets were insured by
AMBAC.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $196,685,487 $206,264,675
Interest receivable........................ 2,760,943
Receivable for shares of Beneficial Interest subscribed 7,261
Prepaid expenses........................... 35,821
_____________
209,068,700
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 108,185
Cash overdraft due to Custodian............ 143,202
Payable for investment securities purchased 5,695,291
Payable for shares of Beneficial Interest redeemed 57,753
Accrued expenses and other liabilities..... 66,972
_____________
6,071,403
_____________
NET ASSETS.................................................................. $202,997,297
=============
REPRESENTED BY: Paid-in capital............................ $197,975,406
Accumulated net realized gain (loss) on investments (4,557,297)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4....................... 9,579,188
_____________
NET ASSETS.................................................................. $202,997,297
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 14,684,061
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $13.82
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income............................ $10,552,258
EXPENSES: Management fee-Note 3(a)................... $ 1,230,454
Shareholder servicing costs-Note 3(b)...... 277,018
Professional fees.......................... 37,219
Trustees' fees and expenses-Note 3(c)...... 33,495
Custodian fees............................. 22,361
Registration fees.......................... 14,721
Prospectus and shareholders' reports....... 12,535
Loan commitment fees-Note 2................ 3,243
Miscellaneous.............................. 17,872
____________
Total Expenses....................... 1,648,918
Less-reduction in management fee due to
undertaking-Note 3(a).................. (23,713)
____________
Net Expenses......................... 1,625,205
____________
INVESTMENT INCOME-NET....................................................... 8,927,053
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 3,361,665
Net unrealized appreciation (depreciation) on investments 5,118,680
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 8,480,345
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $17,407,398
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1998 March 31, 1997
_______________ _______________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 8,927,053 $ 9,945,302
Net realized gain (loss) on investments........................... 3,361,665 (500,431)
Net unrealized appreciation (depreciation) on investments......... 5,118,680 559,461
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations. 17,407,398 10,004,332
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (8,927,053) (10,001,261)
Net realized gain on investments.................................. (14,719) ----
_____________ _____________
Total Dividends................................................. (8,941,772) (10,001,261)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS :
Net proceeds from shares sold..................................... 31,591,894 34,554,439
Dividends reinvested.............................................. 6,439,828 7,213,329
Cost of shares redeemed........................................... (54,289,891) (61,338,340)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (16,258,169) (19,570,572)
_____________ _____________
Total Increase (Decrease) in Net Assets..................... (7,792,543) (19,567,501)
NET ASSETS:
Beginning of Period............................................... 210,789,840 230,357,341
_____________ _____________
End of Period..................................................... $202,997,297 $210,789,840
============= =============
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 2,315,395 2,600,853
Shares issued for dividends reinvested............................ 471,469 541,459
Shares redeemed................................................... (3,987,561) (4,613,301)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding................... (1,200,697) (1,470,989)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $13.27 $13.27 $13.02 $13.08 $13.32
______ ______ ______ ______ ______
Investment Operations:
Investment income-net........................ .59 .60 .62 .66 .72
Net realized and unrealized gain (loss)
on investments............................. .55 .- .25 (.06) (.24)
______ ______ ______ ______ ______
Total from Investment Operations............. 1.14 .60 .87 .60 .48
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net......... (.59) (.60) (.62) (.66) (.72)
______ ______ ______ ______ ______
Net asset value, end of period............... $13.82 $13.27 $13.27 $13.02 $13.08
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 8.77% 4.60% 6.75% 4.76% 3.52%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .79% .78% .65% .32% .04%
Ratio of net investment income
to average net assets...................... 4.35% 4.48% 4.66% 5.13% 5.25%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .01% .04% .14% .47% .78%
Portfolio Turnover Rate...................... 44.77% 35.79% 41.42% 17.28% 6.32%
Net Assets, end of period (000's Omitted).... $202,997 $210,790 $230,357 $239,948 $293,363
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 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.
The Fund has an unused capital loss carryover of approximately $4,559,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1998. If not
applied, $3,838,000 of the carryover expires in fiscal 2004 and $721,000
expires in fiscal 2005.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. During the
period ended March 31, 1998, 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 has undertaken
from April 1, 1997 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 taxes, brokerage, interest on borrowings, commitment fees and
extraordinary expenses 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 $23,713 during the period ended March 31, 1998.
(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, 1998, the Fund was charged $148,259
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 March 31, 1998, the Fund was charged $86,955 pursuant to the
transfer agency agreement.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A 1% redemption fee is charged and retained by the Fund, 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, 1998, redemption fees amounted to $283.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1998
amounted to $90,488,080 and $102,458,157, respectively.
At March 31, 1998, accumulated net unrealized appreciation on investments
was $9,579,188, consisting of $9,740,497 gross unrealized appreciation and
$161,309 gross unrealized depreciation.
At March 31, 1998, 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, 1998, 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, 1998 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,
1998, 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 4, 1998
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, 1998 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 1998 calendar year
on Form 1099-DIV which will be mailed by January 31, 1999.
Registration Mark
[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 902AR983
Registration Mark
[Dreyfus logo]
California
Intermediate
Municipal Bond
Fund
Annual Report
March 31, 1998
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 DREYFUS
BROTHERS CALIFORNIA
PERIOD 10-YEAR INTERMEDIATE
MUNICIPAL MUNICIPAL
BOND INDEX * 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
3/31/98 15,678 14,818
* Source: Lehman Brothers
