DREYFUS CONNECTICUT 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]
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>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1998
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS CONNECTICUT
INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX
Dollars
$15,233
Lehman Brothers 10-Year Municipal Bond Index*
$14,372
Dreyfus Connecticut Intermediate Municipal
Bond Fund
*Source: Lehman Brothers
Average Annual Total Returns
One Year Ended Five Years Ended From Inception (6/26/92)
March 31, 1998 March 31, 1998 to March 31, 1998
____________________ ____________________ __________________________
<S> <C> <C>
8.65% 5.86% 6.50%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Connecticut
Intermediate Municipal Bond Fund on 6/26/92 (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 6/30/92 is used as
the beginning value on 6/26/92. All dividends and capital gain distributions
are reinvested.
The Fund invests primarily in Connecticut 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 Connecticut municipal obligations. These factors, coupled with
the potentially longer maturity of the Index, can contribute to the Index pote
ntially 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 CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1998
Principal
Long-Term Municipal Investments-96.7% Amount Value
______________ ______________
Connecticut-85.0%
<S> <C> <C>
Ansonia, 5%, 10/15/2013 (Insured; FGIC)..................................... $ 1,015,000 $ 1,021,567
Bridgeport, Refunding 6%, 9/1/2006 (Insured; AMBAC) (a)..................... 1,750,000 1,942,500
Chesire 5.10%, 8/15/2006.................................................... 530,000 556,463
Columbia:
5.20%, 6/15/2002........................................................ 265,000 276,994
5.30%, 6/15/2003........................................................ 265,000 279,906
5.40%, 6/15/2004........................................................ 265,000 282,000
State of Connecticut:
6.10%, 3/15/2002........................................................ 2,000,000 2,148,580
5.80%, 11/15/2002....................................................... 1,500,000 1,608,915
5.125%, 8/15/2011....................................................... 1,000,000 1,022,200
Airport Revenue Refunding (Bradley International Airport)
7.35%, 10/1/2001 (Insured; FGIC)...................................... 1,000,000 1,104,930
Clean Water Fund Revenue:
5.40%, 4/1/2003....................................................... 1,000,000 1,056,850
5.40%, 6/1/2007....................................................... 1,805,000 1,926,314
Refunding 5.125%, 7/1/2007 (Insured; MBIA)............................ 2,000,000 2,096,260
Special Assessment Second Injury Fund Revenue
5.20%, 1/1/2010 (Insured; AMBAC)...................................... 3,000,000 3,115,080
Special Tax Obligation Revenue (Transportation Infrastructure):
5.60%, 9/1/2002....................................................... 3,000,000 3,180,000
Refunding:
5.25%, 9/1/2007................................................... 1,115,000 1,181,209
5.25%, 9/1/2007 (Insured; MBIA)................................... 1,360,000 1,440,757
Connecticut Health and Educational Facilities Authority, Revenue:
(Connecticut State University System):
5%, 11/1/2007 (Insured; MBIA)......................................... 1,820,000 1,898,788
5.125%, 11/1/2010 (Insured; MBIA)..................................... 1,145,000 1,180,369
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA).................... 1,000,000 1,091,030
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA)........................... 500,000 523,870
Refunding (Yale New Haven Hospital) 5.50%, 7/1/2010..................... 1,810,000 1,925,062
(Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA)..................... 2,210,000 2,320,721
(University of Hartford):
6.25%, 7/1/2002....................................................... 700,000 736,344
Refunding 6.20%, 7/1/2001............................................. 750,000 781,642
(University of New Haven) 6%, 7/1/2006.................................. 1,000,000 1,053,710
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004..................................................... 1,365,000 1,433,113
5.80%, 11/15/2005..................................................... 1,850,000 1,941,538
5.90%, 11/15/2006..................................................... 1,945,000 2,048,163
5.50%, 11/15/2008..................................................... 1,675,000 1,751,698
5.60%, 11/15/2009..................................................... 1,775,000 1,863,022
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ______________
Connecticut (continued)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
6.90%, 11/15/1998..................................................... $ 1,085,000 $ 1,096,230
5.95%, 11/15/2002..................................................... 2,000,000 2,100,200
5.90%, 5/15/2006...................................................... 1,000,000 1,062,500
5.65%, 11/15/2007..................................................... 1,000,000 1,051,060
Connecticut Municipal Electric Energy Cooperative, Power Supply
System Revenue, Refunding:
5%, 1/1/2008 (Insured; MBIA).......................................... 1,500,000 1,560,975
5%, 1/1/2010 (Insured; MBIA).......................................... 1,570,000 1,602,687
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA)........................................ 400,000 421,148
5.40%, 1/15/2005 (Insured; MBIA)........................................ 400,000 425,360
5.50%, 1/15/2006 (Insured; MBIA)........................................ 400,000 425,996
Danbury:
5.10%, 8/15/2003........................................................ 815,000 852,303
5.25%, 8/15/2004........................................................ 815,000 861,903
Derby:
5.40%, 5/15/2004 (Insured; AMBAC)....................................... 420,000 446,708
5.50%, 5/15/2005 (Insured; AMBAC)....................................... 620,000 665,198
Eastern Connecticut Resources Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006........................... 820,000 840,525
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC)........................................ 300,000 317,061
5.40%, 7/15/2005 (Insured; FGIC)........................................ 305,000 325,783
5.50%, 7/15/2006 (Insured; FGIC)........................................ 305,000 328,573
East Lyme:
5.20%, 8/1/2003......................................................... 425,000 446,335
5.60%, 8/1/2009......................................................... 415,000 438,261
Easton:
5.05%, 6/1/2007......................................................... 270,000 280,600
5.15%, 6/1/2008......................................................... 270,000 281,305
5.25%, 6/1/2009......................................................... 245,000 255,217
Guilford:
5.25%, 1/15/2004........................................................ 300,000 315,705
5.40%, 1/15/2005........................................................ 325,000 345,312
5.50%, 1/15/2006........................................................ 325,000 345,686
Refunding:
5.40%, 10/15/2001..................................................... 1,215,000 1,269,651
5.50%, 10/15/2002..................................................... 1,000,000 1,058,280
Hamden:
5.25%, 10/1/2001........................................................ 445,000 462,853
5.30%, 10/1/2002........................................................ 440,000 461,864
5.40%, 10/1/2003........................................................ 425,000 450,670
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ______________
Connecticut (continued)
Hartford 5.30%, 10/1/2008 (Insured; FGIC)................................... $ 1,000,000 $ 1,062,880
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 1,300,000 1,363,739
Middletown 5%, 4/15/2008.................................................... 1,760,000 1,833,304
New Britain:
5.375%, 3/1/2003 (Insured; MBIA)........................................ 750,000 789,435
5.50%, 3/1/2004 (Insured; MBIA)......................................... 1,000,000 1,064,750
New Canaan:
5.25%, 2/1/2009......................................................... 550,000 578,056
5.30%, 2/1/2010......................................................... 650,000 681,083
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA).............................. 550,000 566,351
New Haven:
6.50%, 12/1/2002........................................................ 1,060,000 1,154,308
6.50%, 12/1/2002 (Escrowed to Maturity)................................. 350,000 385,091
6.75%, 12/1/2005........................................................ 845,000 949,501
Refunding:
5.25%, 8/1/2006 (Insured; FGIC)....................................... 1,500,000 1,579,500
4.75%, 9/1/2007 (Insured; FGIC)....................................... 1,435,000 1,465,551
5%, 8/1/2008 (Insured; FGIC).......................................... 2,185,000 2,247,229
New London:
5.10%, 10/1/2002 (Insured; MBIA)........................................ 300,000 312,591
5.20%, 10/1/2003 (Insured; MBIA)........................................ 575,000 604,417
New Milford:
5.20%, 8/1/2003......................................................... 550,000 577,346
5.40%, 8/1/2006......................................................... 380,000 407,067
5.50%, 8/1/2007......................................................... 425,000 459,765
North Haven 5%, 9/1/2013.................................................... 850,000 852,898
Norwalk Maritime Center Authority, Revenue Refunding (Maritime Center Project):
5.40%, 2/1/2002......................................................... 635,000 664,820
5.50%, 2/1/2003......................................................... 670,000 709,202
Norwich 5.75%, 9/15/2005.................................................... 875,000 955,176
Redding:
6.55%, 4/15/2008........................................................ 200,000 233,932
6.60%, 4/15/2009........................................................ 200,000 235,286
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.50%, 8/1/2003 (Insured; FGIC)......................................... 2,000,000 2,128,860
5.25%, 8/1/2011 (Insured; FGIC)......................................... 890,000 923,740
Southington:
5.40%, 9/15/2005 (Insured; MBIA)........................................ 455,000 486,627
5.50%, 9/15/2006 (Insured; MBIA)........................................ 455,000 490,790
5.60%, 9/15/2007 (Insured; MBIA)........................................ 455,000 491,987
Stamford:
6.625%, 3/15/2004....................................................... 2,750,000 3,102,743
7.75%, 1/15/2005........................................................ 1,650,000 1,982,475
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ______________
Connecticut (continued)
Stratford 5.625%, 11/1/2007 (Insured; FGIC)................................. $ 2,490,000 $ 2,653,917
University of Connecticut 4.75%, 2/1/2008 (Insured; FGIC)................... 3,000,000 3,063,690
Vernon:
5.30%, 9/15/2004 (Insured; MBIA)........................................ 360,000 383,018
5.40%, 9/15/2005 (Insured; MBIA)........................................ 360,000 385,686
5.50%, 9/15/2006 (Insured; MBIA)........................................ 360,000 386,327
Wallingford:
5.20%, 6/15/2001........................................................ 400,000 414,576
5.30%, 6/15/2002........................................................ 400,000 419,004
5.40%, 6/15/2003........................................................ 400,000 423,396
4.80%, 6/15/2009........................................................ 1,385,000 1,402,714
Refunding 5.30%, 6/1/2004............................................... 500,000 529,580
Waterbury, Refunding:
4.90%, 4/15/2002 (Insured; FGIC)........................................ 1,650,000 1,692,339
5%, 4/15/2003 (Insured; FGIC)........................................... 2,060,000 2,125,611
Westport:
5.10%, 6/15/2003........................................................ 500,000 523,480
5.20%, 6/15/2004........................................................ 500,000 528,150
U.S. Related-11.7%
Commonwealth of Puerto Rico, Refunding, 5.30%, 7/1/2004 (Insured; MBIA)..... 1,000,000 1,058,720
Puerto Rico Electric Power Authority, Power Revenue, Refunding:
5%, 7/1/2006 (Insured; FSA) (b)......................................... 1,500,000 1,565,820
6.125%, 7/1/2009 (Insured; MBIA)........................................ 4,000,000 4,555,280
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 1,800,000 1,895,958
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program
General Obligation Matching Fund) 5.65%, 10/1/2003...................... 2,845,000 3,002,357
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001...................................................... 2,000,000 2,161,380
7%, 10/1/2002......................................................... 750,000 825,615
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002......................................................... 300,000 313,494
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $120,564,996)..................................................... $127,236,156
=============
Short-Term Municipal Investments-3.3%
U.S Related;
Puerto Rico Government Development Bank, Revenue, Refunding, VRDN
3.375% (LOC; Credit Suisse First Boston Corp.; Insured; MBIA) (c,d)
(cost $4,400,000)....................................................... $ 4,400,000 $ 4,400,000
=============
TOTAL INVESTMENTS-100.0%
(cost $124,964,996)..................................................... $131,636,156
============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
_______ ________ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 54.9%
AA Aa AA 23.5
A A A 9.6
BBB Baa BBB 3.8
F1 MIG1 SP1 3.4
Not Rated (f) Not Rated (f) Not Rated (f) 4.8
_______
100.0%
=======
</TABLE>
Notes to Statement of Investments:
(a) Held in segregated account as collateral for delayed-delivery
security.
(b) Purchased on a delayed-delivery basis.
(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) Secured by letter of credit.
(e) Fitch currently provides creditworthiness information for a
limited number of investments.
(f) Securities which while not rated by Fitch, Moody's and Standard
& Poor's have been determined by the Manager to be of comparable
quality to those rated securities in which the Fund may invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998
Cost Value
____________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $124,964,996 $131,636,156
Cash....................................... 450,767
Interest receivable........................ 1,836,355
Receivable for shares of Beneficial Interest subscribed 11,000
Prepaid expenses........................... 34,918
____________
133,969,196
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 67,383
Payable for investment securities purchased 1,567,598
Accrued expenses and other liabilities..... 52,218
____________
1,687,199
____________
NET ASSETS.................................................................. $132,281,997
============
REPRESENTED BY: Paid-in capital............................ $127,434,380
Accumulated net realized gain (loss) on investments (1,823,543)
Accumulated gross unrealized appreciation on investments 6,671,160
____________
NET ASSETS.................................................................. $132,281,997
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 9,536,656
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $13.87
=======
See notes to financial statements.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1998
INVESTMENT INCOME
INCOME Interest Income...................... $ 6,646,086
EXPENSES: Management fee-Note 3(a)............. $ 778,904
Shareholder servicing costs-Note 3(b) 179,646
Trustees' fees and expenses-Note 3(c) 36,488
Professional fees.................... 34,270
Registration fees.................... 14,346
Custodian fees....................... 13,145
Prospectus and shareholders' reports. 11,149
Loan commitment fees-Note 2.......... 1,093
Miscellaneous........................ 20,600
____________
Total Expenses................. 1,089,641
Less-reduction in management fee due to
undertaking-Note 3(a)................ (80,653)
____________
Net Expenses................... 1,008,988
____________
INVESTMENT INCOME-NET................................................. 5,637,098
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments $ 182,503
Net unrealized appreciation (depreciation)
on investments................... 4,944,080
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 5,126,583
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $10,763,681
============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1998 March 31, 1997
______________ ______________
OPERATIONS:
Investment income-net.................................................... $ 5,637,098 $ 5,765,457
Net realized gain (loss) on investments.................................. 182,503 456,243
Net unrealized appreciation (depreciation) on investments................ 4,944,080 (739,586)
_____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations........ 10,763,681 5,482,114
_____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................... (5,637,098) (5,796,467)
_____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold............................................ 24,588,017 26,772,228
Dividends reinvested..................................................... 4,305,013 4,453,723
Cost of shares redeemed.................................................. (31,201,513) (35,557,561)
_____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (2,308,483) (4,331,610)
_____________ ____________
Total Increase (Decrease) in Net Assets.............................. 2,818,100 (4,645,963)
NET ASSETS:
Beginning of Period...................................................... 129,463,897 134,109,860
_____________ ____________
End of Period............................................................ $132,281,997 $129,463,897
============= ============
Shares Shares
_____________ ____________
CAPITAL SHARE TRANSACTIONS:
Shares sold ............................................................. 1,789,158 2,000,926
Shares issued for dividends reinvested................................... 313,425 332,728
Shares redeemed.......................................................... (2,280,583) (2,661,549)
_____________ ____________
Net Increase (Decrease) in Shares Outstanding.......................... (178,000) (327,895)
============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT 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 ........ $13.33 $13.35 $13.03 $12.98 $13.18
______ ______ ______ ______ ______
Investment Operations:
Investment income-net........................ .60 .59 .60 .65 .69
Net realized and unrealized gain (loss)
on investments............................. .54 (.01) .31 .05 (.19)
______ ______ ______ ______ ______
Total from Investment Operations............. 1.14 .58 .91 .70 .50
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net......... (.60) (.60) (.59) (.65) (.69)
Dividends from net realized gain on investments -- -- -- -- (.01)
______ ______ ______ ______ ______
Total Distributions.......................... (.60) (.60) (.59) (.65) (.70)
______ ______ ______ ______ ______
. Net asset value, end of period................ $13.87 $13.33 $13.35 $13.03 $12.98
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 8.65% 4.38% 7.09% 5.60% 3.64%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .78% .78% .72% .34% .01%
Ratio of net investment income
to average net assets...................... 4.34% 4.42% 4.46% 5.08% 5.07%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .06% .06% .13% .50% .84%
Portfolio Turnover Rate...................... 6.90% 29.56% 19.91% 31.66% 11.47%
Net Assets, end of period (000's Omitted).... $132,282 $129,464 $134,110 $131,681 $140,804
</TABLE>
See notes to financial statements.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Connecticut 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 Connecticut 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 CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $1,817,000
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, the carryover expires in fiscal 2004.
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 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, 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 had 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, 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 undertaking, amounted to $80,653 during the period ended
March 31, 1998.
(b) Under the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended March 31, 1998, the Fund was charged $104,815
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 $53,342 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 use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended March
31, 1998, the redemption fees amounted to $19.
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 $8,636,972 and $11,068,278, respectively.
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 CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Connecticut Intermediate Municipal Bond Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus Connecticut 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 corresponden
ce 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 Connecticut 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 generally subject to regular
Federal and, for individuals who are Connecticut residents, Connecticut
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 CONNECTICUT 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 WashingtonStreet
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 914AR983
Registration Mark
[Dreyfus logo]
Connecticut
Intermediate
Municipal Bond
Fund
Annual Report
March 31, 1998
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND
FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX
EXHIBIT A:
LEHMAN DREYFUS
BROTHERS CONNECTICUT
10-YEAR INTERMEDIATE
MUNICIPAL MUNICIPAL
PERIOD BOND INDEX * BOND FUND
6/26/92 10,000 10,000
3/31/93 10,898 10,812
3/31/94 11,205 11,205
3/31/95 12,048 11,833
3/31/96 13,116 12,672
3/31/97 13,800 13,227
3/31/98 15,233 14,372
* Source: Lehman Brothers
