Dreyfus
California Intermediate Municipal Bond Fund
ANNUAL REPORT March 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
20 Report of Independent Auditors
21 Important Tax Information
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus California Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus California Intermediate
Municipal Bond Fund, covering the 12-month period from April 1, 1999 through
March 31, 2000. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Monica Wieboldt.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates five times during the reporting period, for a total increase of 125 basis
points. While higher interest rates led to an erosion of municipal bond prices
during the first half of the reporting period, the overall market showed renewed
signs of strength during the first quarter of 2000.
Municipal bonds were also influenced by supply-and-demand considerations. These
technical influences have caused the yields of tax-exempt bonds to rise to very
attractive levels compared to the after-tax yields of taxable bonds of
comparable maturity and credit quality. This is especially true for investors in
the higher federal and state income tax brackets.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus California Intermediate Municipal Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus California Intermediate Municipal Bond Fund perform during the
period?
The portfolio produced a 0.02% total return over the 12-month period ended March
31, 2000.(1) This compares with a total return of 0.26% for the Lipper
California Intermediate Municipal Debt Funds category average over the same
period.(2)
We attribute the fund' s absolute performance to a rising interest-rate
environment, which caused most municipal bond prices to decline. We attribute
the fund's relative performance to the fund's security selection strategy, which
was designed to take advantage of potentially attractive values created during
the municipal market' s decline. The negative returns produced by these
securities during the fourth quarter of 1999 have not been offset as
dramatically during the market rally that began in the first quarter of 2000, as
with the fund's peers on average.
What is the fund's investment approach?
The fund' s goal is to seek as high a level of current federal and state
tax-exempt income as is consistent with preservation of capital from a
diversified intermediate-term portfolio of municipal bonds from California
issuers. Total return -- which includes both income and changes in net asset
value over time -- is a secondary consideration for the fund.
In pursuing these objectives, we employ two primary strategies. First, we
tactically manage the portfolio's average duration -- a measure of sensitivity
to changes in interest rates -- in anticipation of temporary supply-and-demand
changes. If we expect the supply of newly issued bonds to increase, we may
reduce the portfolio's average duration to make cash available for the purchase
of higher yielding securities. Conversely, if we expect demand for municipal
bonds to surge at a time when we anticipate little issuance, we may increase the
portfolio' s average duration to maintain current yields for as long as
practical.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Second, we attempt to add value by selecting the tax-exempt bonds that we
believe are most likely to provide the highest total returns -- which include
both tax-exempt income and price changes over time -- with the least risk.
What other factors influenced the fund's performance?
Although the fund's performance was hurt by a difficult investment environment
during most of 1999, the first quarter of 2000 provided better market conditions
and a market rally.
When the reporting period began on April 1, 1999, investors had become concerned
that strong economic growth might rekindle long-dormant inflationary pressures.
In an attempt to forestall a reacceleration of inflation, the Federal Reserve
Board raised short-term interest rates five times, for a total increase of 125
basis points since last summer, causing most bond prices to fall.
Nationally, municipal bond prices also fell during 1999 because of adverse
supply-and-demand influences. For a variety of reasons, institutional investors
participated less in the tax-exempt market. Despite strong demand from
individual investors, the absence of institutional buyers helped reduce overall
demand in the national market and drove municipal bond prices down. In
California, however, robust demand from individuals effectively offset the
absence of institutional investors. As a result, the effects of 1999's market
decline were less severe in California than in most other states. The fund
benefited somewhat from this environment.
In addition, during the first quarter of 2000, issuance of municipal bonds
nationally declined approximately 40% compared to the same period one year ago.
This supply reduction, combined with robust demand from individual investors,
helped support a rebound of municipal bond prices, including bonds from
California issuers, and especially among longer term bonds.
What is the fund's current strategy?
Earlier this year, as rates began to peak, we took a more constructive view of
the market and found values further out on the yield curve, at 10-15 years,
where we were able to lock in paper at attractive yields. This is in contrast to
our strategy during much of 1999, when we focused on shorter term securities in
order to mitigate the adverse consequences of price erosion that typically
accompany rising interest rates. The current consensus leads us to believe that
most of the Federal Reserve Board's rate hikes are in place. However, we do
expect that further tightenings will occur. Nevertheless, at current levels the
municipal market remains attractive. In fact, because of unusual
supply-and-demand factors in the U.S. Treasury securities market, some 30-year
municipal bonds at times provided higher yields than 30-year U.S. Treasury
bonds.
Our security selection strategy has continued to focus on high quality bonds
from well-known issuers because these securities tend to enjoy the greatest
level of liquidity and credit quality.
April 12, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-CALIFORNIA RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF
ANY, ARE FULLY TAXABLE. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND
EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT
MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN
ABSORBED, THE FUND'S RETURN WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
<TABLE>
<CAPTION>
FUND PERFORMANCE
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
--------------------------------------------------------------------------------
Average Annual Total Returns AS OF 3/31/00
Inception From
Date 1 Year 5 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FUND 4/20/92 0.02% 5.09% 5.79%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
</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 $10,000
INVESTMENT MADE IN THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX ON THAT
DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 4/30/92 IS USED AS THE
BEGINNING VALUE ON 4/20/92. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND INVESTS PRIMARILY IN CALIFORNIA MUNICIPAL SECURITIES AND MAINTAINS A
PORTFOLIO WITH A WEIGHTED-AVERAGE MATURITY RANGING BETWEEN 3 AND 10 YEARS. THE
FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES.
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS
PRINCIPALLY IN CALIFORNIA MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND
INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR
THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 10-YEAR TAX-EXEMPT BOND
MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 9-12 YEARS. THESE
FACTORS, COUPLED WITH THE POTENTIALLY LONGER MATURITY OF THE INDEX, CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
March 31, 2000
Principal
LONG-TERM MUNICIPAL INVESTMENTS--99.3% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--90.0%
ABAG Finance Authority, COP (Episcopal Homes Foundation)
<S> <C> <C>
5.25%, 7/1/2010 3,500,000 3,333,015
Adelanto Public Utility Authority, Revenue
(Utility Systems Project)
4.45%, 11/1/2001 (LOC; Union Bank of California) 2,375,000 2,373,480
Alameda Corridor Transportation Authority, Revenue
5.125%, 10/1/2014 2,500,000 2,472,300
Alta Loma School District
Zero Coupon, 8/1/2015 (Insured; FGIC) 1,000,000 429,080
California Health Facilities Financing Authority, Revenue:
(Casa De Las Campanas) 5%, 8/1/2006 1,985,000 2,014,457
(Downey Community Hospital) 5.625%, 5/15/2008 5,450,000 5,428,582
(Pomona Valley Hospital)
5.375%, 7/1/2009 (Insured; MBIA) 3,240,000 3,342,157
(Saint Francis Memorial Hospital) 5.75%, 11/1/2003 1,130,000 1,179,065
California Housing Finance Agency, Revenue:
6%, 8/1/2010 1,160,000 1,215,889
(Home Mortgage) 5.80%, 8/1/2003 885,000 909,922
California Public Works Board, LR:
(Department of Corrections-Imperial County)
5.125%, 9/1/2009 4,000,000 4,079,280
(Secretary of State) 6.10%, 12/1/2004 (Insured; AMBAC) 6,100,000 6,523,462
(Various Community College Projects):
6%, 12/1/2008 (Insured; AMBAC, Prerefunded 12/1/2002) 3,975,000 (a) 4,211,870
4.60%, 10/1/2013 3,000,000 2,778,810
California Statewide Community Development Authority:
Apartment Development Revenue
(Irvine Apartment Communities):
5.05%, 5/15/2008 2,000,000 1,913,780
5.10%, 5/15/2010 2,000,000 1,911,460
COP, Revenue:
(Huntington Memorial Hospital) 5.50%, 7/1/2010 4,000,000 4,148,560
(The Internext Group) 4.25%, 4/1/2005 2,500,000 2,321,875
MFHR (Equity Residential) 5.20%, 12/1/2029 2,000,000 1,897,380
California, Veterans 5.40%, 12/1/2014 5,000,000 4,997,100
Central Valley Financing Authority,
Cogeneration Project Revenue
(Carson Ice) 5.25%, 7/1/2011 (Insured; MBIA) 2,000,000 2,046,820
Escondido Joint Powers Financing Authority, LR
(California Center for the Arts)
5.90%, 9/1/2010 (Insured; AMBAC) 3,440,000 3,624,934
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Foothill, Eastern Transportation Corridor Agency,
Toll Road Revenue:
5.25%, 1/15/2012 (Insured; MBIA) 4,550,000 4,639,862
Zero Coupon, 1/1/2010 2,500,000 2,114,625
Zero Coupon, 1/1/2013 (Prerefunded 1/1/2010) 2,000,000 (a) 1,722,740
Los Angeles City, Revenue:
Harbor Department:
6%, 8/1/2006 1,320,000 1,379,149
6%, 8/1/2014 6,500,000 6,761,560
Multi-Family (Earthquake Rehabilitation Projects)
5.65%, 12/1/2025 (Insured; FNMA) 10,000,000 10,162,900
Mortgage 5.75%, 7/1/2002 (Insured; MBIA) 215,000 217,051
Los Angeles County Capital Asset Leasing Corporation,
Leasehold Revenue
5.75%, 12/1/2004 (Insured; AMBAC) 2,600,000 2,735,798
Los Angeles County Metropolitan Transportation Commission,
Sales Tax Revenue, 5.50%, 7/1/2007 3,350,000 3,478,674
Los Angeles County Transportation Commission,
Sales Tax Revenue, 5.75%, 7/1/2001 (Insured; FGIC) 1,250,000 1,275,325
Los Angeles Department Water & Power, Electric Plant Revenue
5.70%, 9/1/2011 (Insured; FGIC) 3,500,000 3,626,770
Metropolitan Water District of Southern California,
Waterworks Revenue, 5.125%, 7/1/2011 4,000,000 4,061,680
Oakland, COP (Oakland Museum)
6%, 4/1/2012 (Insured; AMBAC) 2,500,000 2,570,600
Oakland Redevelopment Agency
(Central District Redevelopment-Senior Tax Allocation)
5.75%, 2/1/2004 (Insured; AMBAC) 1,500,000 1,571,430
Orange County:
COP 5.70%, 7/1/2010 (Insured; MBIA) 6,445,000 6,797,606
Public Financing Authority,
Waste Management Systems Revenue
5.25%, 12/1/2004 (Insured; AMBAC) 4,280,000 4,399,883
Orange, MFHR (Villa Santiago Rehab Project)
5.60%, 10/1/2027 (Insured: FNMA) 1,435,000 1,452,607
Port Oakland, Revenue:
Port 6.10%, 11/1/2003 (Insured; MBIA) 1,245,000 1,308,296
Special Facilities (Mitsui O.S.K. Lines Ltd.)
6.40%, 1/1/2003 (LOC; Industrial Bank of Japan) 1,000,000 1,038,140
Riverside County Public Financing Authority, COP
5.40%, 5/15/2009 1,000,000 951,970
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Sacramento Cogeneration Authority,
Cogeneration Project Revenue
5.25%, 7/1/2012 (Insured; MBIA) 1,900,000 1,932,243
Sacramento County
(Community Facilities District Number 1):
5.20%, 12/1/2007 1,115,000 1,087,761
5.30%, 12/1/2008 1,225,000 1,198,209
5.40%, 12/1/2009 1,230,000 1,206,064
San Diego County, COP (Burnham Institute):
4.80%, 9/1/2003 400,000 393,720
5.15%, 9/1/2006 600,000 589,536
5.70%, 9/1/2011 800,000 802,152
San Francisco Bay Area Transit Financing Authority (Bridge Toll):
5%, 2/1/2006 1,000,000 998,680
5%, 2/1/2007 1,000,000 992,800
San Francisco City and County Airports Commission,
International Airport Revenue:
6.20%, 5/1/2015 (Insured; FGIC) 1,325,000 1,370,368
(Special Facilities Lease--SFO Fuel)
5.25%, 1/1/2008 (Insured; AMBAC) 2,575,000 2,636,491
San Francisco City and County Redevelopment Agency, LR
(George R. Moscone) Zero Coupon, 7/1/2011 1,700,000 928,914
San Mateo County Joint Powers Financing Authority, LR
(Capitol Projects):
5%, 7/15/2013 (Insured; FSA) 1,180,000 1,164,695
5%, 7/15/2014 (Insured; FSA) 1,000,000 976,480
Southern California Rapid Transit District, Revenue
(Special Benefit Assessment District)
5.75%, 9/1/2005 (Insured; AMBAC) 8,750,000 9,285,325
Stockton Health Facilities Authority, Revenue
(Dameron Hospital):
5%, 12/1/2005 1,240,000 1,188,292
5.10%, 12/1/2006 1,305,000 1,244,579
5.20%, 12/1/2007 1,300,000 1,233,206
Tri-City Hospital District, Revenue 5.375%, 2/15/2007 2,500,000 2,591,300
U.S. RELATED--9.3%
Commonwealth of Puerto Rico, Public Improvement:
5%, 7/1/2004 1,350,000 1,357,330
5%, 7/1/2005 2,500,000 2,509,550
5.375%, 7/1/2005 3,000,000 3,062,940
5.25%, 7/1/2014 (Insured; FSA) 2,000,000 2,012,820
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. RELATED (CONTINUED)
Guam, LOR (Infrastructure Improvement)
5.25%, 11/1/2009 (Insured; AMBAC) 1,210,000 1,230,449
Puerto Rico Industrial Tourist Educational Medical
and Environmental Control Facilities Financing Authority,
Industrial Revenue (Guaynabo Warehouse):
4.35%, 7/1/2006 1,170,000 1,075,335
4.70%, 7/1/2009 1,050,000 955,469
Virgin Islands Public Finance Authority, Revenue
5.625%, 10/1/2010 2,000,000 1,985,160
Virgin Islands Water and Power Authority, Electric Systems:
5.125%, 7/1/2003 1,140,000 1,149,063
5.125%, 7/1/2011 1,000,000 981,490
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $171,846,031) 99.3% 173,560,365
CASH AND RECEIVABLES (NET) .7% 1,146,112
NET ASSETS 100.0% 174,706,477
</TABLE>
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
FGIC Financial Guaranty
Insurance Company
FNMA Federal National
Mortgage Association
FSA Financial Security Assurance
LOC Letter of Credit
LOR Limited Obligation Revenue
LR Lease Revenue
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
MFHR Multi-Family Housing Revenue
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 51.7
AA Aa AA 14.8
A A A 11.0
BBB Baa BBB 13.3
F1+ F-1 MIG1, VMG1 & P1 SP1, A1 7.2
Not Rated( b) Not Rated( b) Not Rated( b) 2.0
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 171,846,031 173,560,365
Interest receivable 2,457,678
Receivable for shares of Beneficial Interest subscribed 17,318
Prepaid expenses 2,944
176,038,305
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 96,056
Cash overdraft due to Custodian 1,169,384
Payable for shares of Beneficial Interest redeemed 5,743
Accrued expenses and other liabilities 60,645
1,331,828
--------------------------------------------------------------------------------
NET ASSETS ($) 174,706,477
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 176,014,280
Accumulated net realized gain (loss) on investments (3,022,137)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 1,714,334
--------------------------------------------------------------------------------
NET ASSETS ($) 174,706,477
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
13,042,482
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 13.40
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended March 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 9,635,739
EXPENSES:
Management fee--Note 3(a) 1,130,852
Shareholder servicing costs--Note 3(b) 228,039
Professional fees 39,333
Trustees' fees and expenses--Note 3(c) 33,908
Custodian fees 18,187
Prospectus and shareholders' reports 14,957
Registration fees 13,610
Loan commitment fees--Note 2 1,904
Miscellaneous 17,315
TOTAL EXPENSES 1,498,105
Less--reduction in management fee due to
undertaking--Note 3(a) (7,345)
NET EXPENSES 1,490,760
INVESTMENT INCOME--NET 8,144,979
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (160,422)
Net unrealized appreciation (depreciation) on investments (8,568,058)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (8,728,480)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (583,501)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended March 31,
---------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 8,144,979 8,463,922
Net realized gain (loss) on investments (160,422) 1,695,582
Net unrealized appreciation (depreciation)
on investments (8,568,058) 703,204
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (583,501) 10,862,708
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (8,144,979) (8,463,922)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 27,829,097 41,174,804
Dividends reinvested 6,017,249 6,218,258
Cost of shares redeemed (52,847,084) (50,353,450)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (19,000,738) (2,960,388)
TOTAL INCREASE (DECREASE) IN NET ASSETS (27,729,218) (561,602)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 202,435,695 202,997,297
END OF PERIOD 174,706,477 202,435,695
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,056,538 2,950,296
Shares issued for dividends reinvested 446,675 445,102
Shares redeemed (3,927,399) (3,612,791)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,424,186) (217,393)
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Year Ended March 31,
--------------------------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 13.99 13.82 13.27 13.27 13.02
Investment Operations:
Investment income--net .58 .58 .59 .60 .62
Net realized and unrealized
gain (loss) on investments (.59) .17 .55 .00(a) .25
Total from Investment Operations (.01) .75 1.14 .60 .87
Distributions:
Dividends from investment income--net (.58) (.58) (.59) (.60) (.62)
Net asset value, end of period 13.40 13.99 13.82 13.27 13.27
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .02 5.55 8.77 4.60 6.75
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .79 .80 .79 .78 .65
Ratio of net investment income
to average net assets 4.32 4.19 4.35 4.48 4.66
Decrease reflected in above expense ratios
due to undertakings by
The Dreyfus Corporation .00(b) .02 .01 .04 .14
Portfolio Turnover Rate 19.38 26.29 44.77 35.79 41.42
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 174,706 202,436 202,997 210,790 230,357
(A) AMOUNT REPRESENTS LESS THAN $.01.
(B) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The 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, as amended (the "Act"), as a
non-diversified open-end management investment company. The fund's investment
objective is to provide investors with as high a level of current income exempt
from Federal and State of California personal income taxes as is consistent with
the preservation of capital. The Dreyfus Corporation (the "Manager") serves as
the fund' s investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor.
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. Under the terms of the custody
agreement, the fund received net earnings credits of $1,779 based on available
cash balances left on deposit. Income earned under this arrangement is included
in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax The Fun
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
exempt dividends, by complying with the applicable provisions of the Code, and
to make distributions of income and net realized capital gain sufficient to
relieve it from substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $2,519,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 2000. If not
applied, $1,798,000 of the carryover 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 $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended March
31, 2000, 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, 1999 through March 31, 2000, to reduce the management fee paid by the fund,
to the extent that the fund's aggregate annual expenses, exclusive of taxes,
brokerage fees, interest on borrowings, commitment fees and extraordinary
expenses exceeded 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 $7,345 during the period ended March 31, 2000.
(b) Under the Shareholder Services Plan, the fund reimburses DSC an amount not
to exceed an annual rate of .25 of 1% of the value of th
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, 2000, the fund was charged $122,251
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, 2000, the fund was charged $74,348 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. During the period ended March
31, 2000, redemption fees retained by the fund amounted to $2,484.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended March 31, 2000, amounted to
$35,855,617 and $52,234,979, respectively.
At March 31, 2000, accumulated net unrealized appreciation on investments was
$1,714,334, consisting of $3,525,328 gross unrealized appreciation and
$1,810,994 gross unrealized depreciation.
At March 31, 2000, 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).
The Fund
REPORT OF 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, 2000, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of March 31, 2000 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, 2000, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with accounting principles
generally accepted in the United States.
New York, New York
May 3, 2000
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, 2000 as
" exempt-interest dividends" (not generally 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 2000 calendar year on Form 1099-DIV which
will be mailed by January 31, 2001.
The Fund
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 902AR003
