Drefus Connecticut Intermediate Municipal Bond Fund
Annual Report
March 31, 1999
<PAGE>
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could
have an impact on the value of the funds investments and its share price.
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Connecticut
Intermediate Municipal Bond Fund for the 12-month period ended March 31, 1999.
Your fund produced a total return, including share price changes and dividend
income generated, of 4.96%,* and a tax-free distribution rate per share of
4.13%.**
Economic Review
The economy in the period ended March 31, 1999 had several persistent
themes. These included weakness in the world economy, strength in the U.S.
economy, pervasive disinflation and multiple rounds of central bank easing,
which lowered interest rates in many parts of the world.
Weakness in the world economy started in Asia with economic and financial
stresses throughout most of the continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most
of the rest of Asia. The most severe phase of these crises occurred when Asian
currencies dropped and short-term interest rates rose there as well. Then
Latin America began to weaken, particularly Brazil. Tentative signs of a
bottoming in Asia had emerged by the end of your funds fiscal period;
however, Brazil had not yet turned the corner.
Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began the last year at a modest pace and showed signs of stagnation in early
1999. Even so, the new European central bank postponed the reduction in
interest rates at the beginning of 1999, probably because of a desire to build
anti-inflationary credibility. The bank finally eased in April of this year.
The U.S. economy proved to be a superperformer during the period, growing
at an above-trend rate despite the economic weakness overseas. A major reason
for this was that the negative effects of foreign economic weakness on the
traditional industrial sector were offset by positive effects elsewhere in the
economy. Low inflation and low interest rates stimulated the housing and
consumer sectors, while the technology sector continued to expand.
The Federal Reserve eased monetary policy three times beginning on
September 30, 1998, lowering the federal funds rate from 5.50% to 4.75%. This
was not because of any shortfall in U.S. economic growth. Rather, it was a
response to a financial crisis linked to the Russian default and the financial
problems of a major hedge fund. Despite widespread fears, the U.S. economy
never did slow. Long-term interest rates declined into early October, when
fears of financial crisis, deflation and possible economic recession were at
their greatest. However, those rates then drifted higher as the financial
stresses eased and the feared economic slowdown did not materialize.
Market Environment
Moderating economic growth in the U.S., a negligible rate of inflation, and
relatively low interest rates continue to foster a positive atmosphere for
municipal bonds. As measured by commonly accepted indexes, municipal bond
yields have moved very little over the last six-month period, compared to
yields of U.S. Treasury bonds. Treasuries, of course, were affected uniquely
because of the safe haven they provided during the economic and currency
collapses of several foreign countries; lately there has been some liquidation
of Treasuries as recovery in several foreign nations began, thus their price
movements have been more volatile.
Municipal yields continue to be historically generous vis--vis Treasury
bond yields, and that lends support to current price levels. Presently,
municipal bonds with maturities of 20 years and longer provide federally tax-
free yields that exceed 90% of the taxable yields provided by Treasury bonds
with comparable maturities. Also helping to firm up price levels of municipal
bonds is a shortage of supply in the new-issue market. So far in 1999, newly
marketed issues amount to just 77% of 1998s volume. Some reduction in 1999 is
expected when compared to 1998, when a number of refundings helped to swell
that years total issuance to $284 billion, but at this time new issues are
running somewhat behind expectations for 1999.
<PAGE>
Demand continues to be sparked by the after-tax benefits of municipal bond
ownership, recognized mainly by individuals and crossover buyers, the latter
being buyers who commonly operate in both taxable and tax-exempt markets,
depending on yield ratios and after-tax benefits. Institutional demand is not
especially strong right now, and that demand is very specific, centering on
coupon, maturity and several technical features. With supply and demand well
balanced, and no discernible indications of rising inflation and higher
interest rates, it appears that the municipal environment will continue to be
hospitable.
Portfolio Focus
In the 12 months ended March 31, 1999, the Dreyfus Connecticut Intermediate
Municipal Bond Fund assumed a relatively pragmatic approach with the
portfolio. During the period, the fund focused on maintaining its average
maturity at approximately eight years. By the end of the second fiscal
quarter, it was apparent that the municipal market was operating within a
narrow range. Attempting to predict the timing of the ebb and flow of these
market changes would be difficult at best. We focused our efforts on buying
discount bonds and also purchasing higher-coupon municipal securities. This
approach allowed the fund to assume characteristics more in tune with the
market environment.
We will continue to manage the fund utilizing a conservative approach to
balance these market factors, with an emphasis on providing income to our
shareholders. The fund is currently well balanced across its coupon and
maturity range and is positioned to continue to perform well in the current
market environment. It is entirely possible that the market may again see
periods of volatility, although at present, the bond market has had a positive
tone marked by a reduced supply of new bond issuance. To this extent, the fund
is benefiting from increased demand for Connecticut securities, which are
sought by national funds, as well as other Connecticut bond funds.
Our primary task will be to guide our fund management decisions to earn a
high level of current income, to the extent it is consistent with the
preservation of capital, while maintaining the funds high credit quality.
Included in this report is a series of detailed statements outlining the
funds holdings and financial condition. We hope they are informative. Please
know that we greatly appreciate your continued confidence in the fund and The
Dreyfus Corporation.
Very truly yours,
/s/Richard J. Moynihan
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 19, 1999
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid. Income may be subject to state and local income taxes for non-
Connecticut 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.
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund March 31, 1999
- -------------------------------------------------------------------------------
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
*Source: Lehman Brothers
Average Annual Total Returns
- -------------------------------------------------------------------------------
One Year Ended Five Years Ended From Inception (6/26/92)
March 31, 1999 March 31, 1999 to March 31, 1999
-------------- ---------------- ------------------------
4.96% 6.13% 6.27%
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.
The Lehman Brothers 10-Year Municipal Bond Index is not limited to investments
principally in Connecticut 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.
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--97.6% Amount Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut--84.1%
Ansonia, 5%, 10/15/2013 (Insured; FGIC)........................................ 1,015,000 $ 1,042,314
Bridgeport, Refunding 6%, 9/1/2006 (Insured; AMBAC)............................ 1,750,000 1,961,312
Chesire 5.10%, 8/15/2006....................................................... 530,000 560,634
Columbia:
5.20%, 6/15/2002............................................................ 265,000 277,590
5.30%, 6/15/2003............................................................ 265,000 280,987
5.40%, 6/15/2004............................................................ 265,000 282,124
State of Connecticut:
5.80%, 11/15/2002........................................................... 1,500,000 1,610,805
5.125%, 8/15/2011........................................................... 1,000,000 1,051,600
5.25%, 3/1/2012............................................................. 3,000,000 3,156,120
5.25%, 12/15/2012........................................................... 500,000 529,805
Clean Water Fund Revenue:
5.40%, 4/1/2003........................................................... 1,000,000 1,062,860
5.40%, 6/1/2007........................................................... 1,805,000 1,939,364
5.125%, 7/1/2007 (Insured; MBIA) ......................................... 2,000,000 2,112,920
Refunding 5.75%, 12/1/2013................................................ 1,000,000 1,080,350
Refunding 5.25%, 3/15/2010.................................................. 5,500,000 5,865,365
Special Assessment Second Injury Fund Revenue
5.20%, 1/1/2010 (Insured; AMBAC) ......................................... 3,000,000 3,152,910
Special Tax Obligation Revenue (Transportation Infrastructure):
5.60%, 9/1/2002........................................................... 3,000,000 3,184,740
Refunding:
5.25%, 9/1/2007......................................................... 1,115,000 1,196,841
5.25%, 9/1/2007 (Insured; MBIA) ........................................ 1,360,000 1,462,816
Connecticut Health and Educational Facilities Authority, Revenue:
(Connecticut State University System):
5%, 11/1/2007 (Insured; MBIA) ........................................... 1,820,000 1,925,979
5.125%, 11/1/2010 (Insured; MBIA) ....................................... 1,145,000 1,199,181
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA) ...................... 1,000,000 1,101,520
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA) ............................. 500,000 529,040
Refunding (Yale New Haven Hospital) 5.50%, 7/1/2010........................ 1,810,000 1,939,922
(Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA)........................ 2,210,000 2,342,821
(University of Hartford):
6.25%, 7/1/2002.......................................................... 700,000 734,440
Refunding 6.20%, 7/1/2001 ............................................... 750,000 778,230
(University of New Haven) 6%, 7/1/2006..................................... 1,000,000 1,046,180
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004........................................................ 1,280,000 1,367,270
5.80%, 11/15/2005........................................................ 1,730,000 1,810,566
5.90%, 11/15/2006........................................................ 1,825,000 1,920,247
5.50%, 11/15/2008........................................................ 1,665,000 1,713,135
5.60%, 11/15/2009........................................................ 1,765,000 1,821,180
</TABLE>
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut (continued)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
5.90%, 5/15/2006......................................................... $ 775,000 $ 825,886
5.65%, 11/15/2007........................................................ 1,000,000 1,056,850
5.50%, 11/15/2035........................................................ 1,225,000 1,244,281
Connecticut Municipal Electric Energy Cooperative, Power Supply
System Revenue, Refunding:
5%, 1/1/2008 (Insured; MBIA)............................................. 1,500,000 1,584,210
5%, 1/1/2010 (Insured; MBIA)............................................. 1,570,000 1,631,340
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA)........................................... 400,000 425,244
5.40%, 1/15/2005 (Insured; MBIA)........................................... 400,000 427,844
5.50%, 1/15/2006 (Insured; MBIA)........................................... 400,000 427,540
Danbury:
5.10%, 8/15/2003........................................................... 815,000 860,803
5.25%, 8/15/2004........................................................... 815,000 870,876
Derby:
5.40%, 5/15/2004 (Insured; AMBAC) ......................................... 420,000 450,408
5.50%, 5/15/2005 (Insured; AMBAC) ......................................... 620,000 671,956
Eastern Connecticut Resources Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006.............................. 820,000 846,183
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC) .......................................... 300,000 320,721
5.40%, 7/15/2005 (Insured; FGIC) .......................................... 305,000 330,297
5.50%, 7/15/2006 (Insured; FGIC) .......................................... 305,000 331,312
East Lyme:
5.20%, 8/1/2003............................................................ 425,000 450,198
5.60%, 8/1/2009............................................................ 415,000 438,564
Easton:
5.05%, 6/1/2007............................................................ 270,000 286,894
5.15%, 6/1/2008............................................................ 270,000 287,177
5.25%, 6/1/2009............................................................ 245,000 260,952
Guilford:
5.25%, 1/15/2004........................................................... 300,000 319,338
5.40%, 1/15/2005........................................................... 325,000 347,981
5.50%, 1/15/2006........................................................... 325,000 347,734
Refunding 5.50%, 10/15/2002................................................ 1,000,000 1,061,730
Glastonbury:
4.125%, 4/1/2009........................................................... 500,000 495,555
4.25%, 4/1/2010............................................................ 700,000 690,620
4.50%, 4/1/2012............................................................ 700,000 696,255
Hamden:
5.25%, 10/1/2001........................................................... 445,000 464,082
5.40%, 10/1/2003........................................................... 425,000 454,244
</TABLE>
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut (continued)
Hartford 5.30%, 10/1/2008 (Insured; FGIC) ..................................... $ 1,000,000 $ 1,075,200
Meriden 5.50%, 11/15/2001 (Insured; MBIA) ..................................... 1,300,000 1,366,378
Middletown 5%, 4/15/2008....................................................... 1,760,000 1,861,570
New Britain:
5.375%, 3/1/2003 (Insured; MBIA) ........................................... 750,000 794,130
5.50%, 3/1/2004 (Insured; MBIA) ............................................ 1,000,000 1,073,000
New Canaan:
5.25%, 2/1/2009............................................................. 550,000 589,869
5.30%, 2/1/2010............................................................. 650,000 699,043
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA) ................................ 550,000 571,962
New Haven:
6.50%, 12/1/2002........................................................... 1,060,000 1,145,722
6.50%, 12/1/2002 (Escrowed to Maturity) ................................... 350,000 383,985
6.75%, 12/1/2005........................................................... 845,000 945,935
Refunding:
5.25%, 8/1/2006 (Insured; FGIC) ...................................... 1,500,000 1,601,850
4.75%, 9/1/2007(Insured; FGIC) ....................................... 1,435,000 1,488,884
5%, 8/1/2008 (Insured; FGIC) ......................................... 2,185,000 2,282,473
New London:
5.10%, 10/1/2002 (Insured; MBIA) .......................................... 300,000 314,523
5.20%, 10/1/2003 (Insured; MBIA) .......................................... 575,000 605,694
New Milford:
5.20%, 8/1/2003............................................................ 550,000 582,384
5.40%, 8/1/2006............................................................ 380,000 411,871
5.50%, 8/1/2007............................................................ 425,000 464,576
North Haven 5%, 9/1/2013...................................................... 850,000 871,837
Norwalk Maritime Center Authority, Revenue Refunding (Martime Center Project)
5.50%, 2/1/2003............................................................ 670,000 712,083
Norwich 5.75%, 9/15/2005...................................................... 875,000 964,224
Redding:
6.55%, 4/15/2008........................................................... 200,000 235,950
6.60%, 4/15/2009........................................................... 200,000 238,116
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.50%, 8/1/2003 (Insured; FGIC) ........................................... 2,000,000 2,142,400
5.25%, 8/1/2011 (Insured; FGIC) ........................................... 890,000 936,244
Southington:
5.40%, 9/15/2005 (Insured; MBIA) .......................................... 455,000 492,829
5.50%, 9/15/2006 (Insured; MBIA) .......................................... 455,000 494,426
5.60%, 9/15/2007 (Insured; MBIA) .......................................... 455,000 495,227
</TABLE>
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut (continued)
Stamford:
6.625%, 3/15/2004........................................................... $ 1,620,000 $ 1,824,525
6.625%, 3/15/2004 (Escrowed to Maturity) ................................... 1,130,000 1,269,408
7.75%, 1/15/2005............................................................ 1,650,000 1,971,486
Stratford 5.625%, 11/1/2007 (Insured; FGIC) ................................... 2,490,000 2,652,722
University of Connecticut , College and University Revenue:
4.75%, 2/1/2008 (Insured; FGIC) ............................................ 3,000,000 3,114,960
5%, 6/1/2010 (Insured; MBIA). .............................................. 2,620,000 2,743,847
Vernon:
5.30%, 9/15/2004 (Insured; MBIA) ........................................... 360,000 385,916
5.40%, 9/15/2005 (Insured; MBIA) ........................................... 360,000 387,500
5.50%, 9/15/2006 (Insured; MBIA) ........................................... 360,000 387,176
Wallingford:
5.40%, 6/15/2003........................................................... 400,000 426,156
4.80%, 6/15/2009........................................................... 1,385,000 1,426,135
Refunding 5.30%, 6/1/2004.................................................. 500,000 534,250
Waterbury, Refunding:
4.90%, 4/15/2002 (Insured; FGIC) .......................................... 1,650,000 1,702,321
5%, 4/15/2003 (Insured; FGIC) ............................................. 2,060,000 2,144,275
West Haven 4.10%, 2/1/2008 (Insured; AMBAC) .................................. 585,000 580,905
Westport:
5.10%, 6/15/2003........................................................... 500,000 528,300
5.20%, 6/15/2004........................................................... 500,000 533,605
U.S. Related--13.5%
Commonwealth of Puerto Rico:
Public Improvement 5.25%, 7/1/2012......................................... 2,600,000 2,738,346
Refunding 5.30%, 7/1/2004 (Insured; MBIA) ................................. 1,000,000 1,069,500
Puerto Rico Electric and Power Authority, Power Revenue, Refunding
6.125%, 7/1/2009 (Insured; MBIA) .......................................... 4,000,000 4,605,080
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002.......................... 3,900,000 4,105,764
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program
General Obligation Matching Fund) 5.65%, 10/1/2003......................... 2,545,000 2,651,788
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001......................................................... 2,000,000 2,160,180
5.50%, 10/1/2008. ....................................................... 1,500,000 1,575,855
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002............................................................ 200,000 212,008
------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $131,380,109)........................................................ $138,522,636
------------
------------
</TABLE>
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Short-Term Municipal Investments--1.7% Amount Value
- ------------------------------------------------------------------------------ -------------- --------------
<S> <C> <C>
Connecticut:
Connecticut Health and Educational Facilities Authority, Revenue, VRDN
(Yale University) 2.90% (a)................................................ $ 1,000,000 $ 1,000,000
Connecticut Housing Finance Authority, Refunding, VRDN
(Housing Mortgage Finance Program) 2.80% (SBPA; Landesbank Hessen-Thurgen) (a) 1,500,000 1,500,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $2,500,000)........................................................... $ 2,500,000
------------
------------
TOTAL INVESTMENTS
(cost $133,880,109)......................................................... 99.3% $141,022,636
------ ------------
------ ------------
CASH AND RECEIVABLES (NET)..................................................... .7% $ 938,576
------ ------------
------ ------------
NET ASSETS..................................................................... 100.0% $141,961,212
------ ------------
------ ------------
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation SBPA Standby Bond Purchase Agreement
FGIC Financial Guaranty Insurance Company VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
Summary of Combined Ratings (Unaudited)
- -------------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
- ----- ------- ----------------- -------------------
AAA Aaa AAA 52.8%
AA Aa AA 25.0
A A A 12.5
BBB Baa BBB 4.3
F1 MIG1 SP1 1.8
Not Rated (b) Not Rated (b) Not Rated (b) 3.6
------
100.0%
------
------
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Securities payable on demand. Variable interest rate--subject to periodic
change.
(b) Securities which, while not rated by Fitch, Moodys and Standard & Poors
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.
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1999
<TABLE>
<CAPTION>
Cost Value
------------- -------------
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments..... $133,880,109 $141,022,636
Cash........................................................ 1,084,731
Interest receivable......................................... 1,897,039
Prepaid expenses............................................ 15,907
------------
144,020,313
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates............... 75,740
Payable for investment securities purchased................. 1,890,626
Payable for shares of Beneficial Interest redeemed.......... 25,000
Accrued expenses............................................ 67,735
------------
2,059,101
------------
NET ASSETS..................................................................... $141,961,212
------------
------------
REPRESENTED BY: Paid-in capital............................................. $136,214,249
Accumulated net realized gain (loss) on investments......... (1,395,564)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4.................................... 7,142,527
------------
NET ASSETS..................................................................... $141,961,212
------------
------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)................................................................... 10,161,927
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $14.97
------
------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Operations March 31, 1999
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................................. $6,704,171
EXPENSES: Management fee--Note 3(a)................................... $ 816,446
Shareholder servicing costs--Note 3(b)...................... 204,889
Trustees fees and expenses--Note 3(c)....................... 39,791
Professional fees........................................... 39,662
Prospectus and shareholders reports......................... 21,910
Custodian fees.............................................. 16,157
Registration fees........................................... 9,709
Loan commitment fees--Note 2................................ 778
Miscellaneous............................................... 20,305
-----------
Total Expenses.......................................... 1,169,647
Less--reduction in management fee due to
undertaking--Note 3(a).................................... (80,275)
-----------
Net Expenses............................................ 1,089,372
-----------
INVESTMENT INCOME--NET......................................................... 5,614,799
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments..................... $ 429,909
Net unrealized appreciation (depreciation) on investments... 471,367
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 901,276
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $6,516,075
-----------
-----------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
March 31, 1999 March 31, 1998
-------------- --------------
OPERATIONS:
<S> <C> <C>
Investment income--net...................................................... $ 5,614,799 $ 5,637,098
Net realized gain (loss) on investments..................................... 429,909 182,503
Net unrealized appreciation (depreciation) on investments................... 471,367 4,944,080
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations........... 6,516,075 10,763,681
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net...................................................... (5,614,799) (5,637,098)
Net realized gain on investments............................................ (1,930) ---
-------------- --------------
Total Dividends........................................................... (5,616,729) (5,637,098)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold............................................... 30,133,025 24,588,017
Dividends reinvested........................................................ 4,348,768 4,305,013
Cost of shares redeemed..................................................... (25,701,924) (31,201,513)
-------------- --------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions... 8,779,869 (2,308,483)
-------------- --------------
Total Increase (Decrease) in Net Assets................................. 9,679,215 2,818,100
NET ASSETS:
Beginning of Period......................................................... 132,281,997 129,463,897
-------------- --------------
End of Period............................................................... $141,961,212 $132,281,997
-------------- --------------
-------------- --------------
Shares Shares
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................. 2,154,340 1,789,158
Shares issued for dividends reinvested...................................... 310,650 313,425
Shares redeemed............................................................. (1,839,719) (2,280,583)
-------------- --------------
Net Increase (Decrease) in Shares Outstanding............................. 625,271 (178,000)
-------------- --------------
-------------- --------------
</TABLE>
See notes to financial statements.
<PAGE>
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 Funds financial statements.
<TABLE>
<CAPTION>
Year Ended March 31,
--------------------------------------------------------------
PER SHARE DATA: 1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........................... $13.87 $13.33 $13.35 $13.03 $12.98
------ ------ ------ ------ ------
Investment Operations:
Investment income--net......................................... .58 .60 .59 .60 .65
Net realized and unrealized gain (loss)
on investments............................................... .10 .54 (.01) .31 .05
------ ------ ------ ------ ------
Total from Investment Operations............................... .68 1.14 .58 .91 .70
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.......................... (.58) (.60) (.60) (.59) (.65)
------ ------ ------ ------ ------
Net asset value, end of period................................. $13.97 $13.87 $13.33 $13.35 $13.03
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN........................................... 4.96% 8.65% 4.38% 7.09% 5.60%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........................ .80% .78% .78% .72% .34%
Ratio of net investment income
to average net assets........................................ 4.13% 4.34% 4.42% 4.46% 5.08%
Decrease reflected in above expense ratios
due to undertakings by the Manager.......................... .06% .06% .06% .13% .50%
Portfolio Turnover Rate....................................... 12.71% 6.90% 29.56% 19.91% 31.66%
Net Assets, end of period (000s Omitted)..................... $141,961 $132,282 $129,464 $134,110 $131,681
</TABLE>
See notes to financial statements.
<PAGE>
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, 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 Connecticut income taxes as is consistent with
the preservation of capital. The Dreyfus Corporation (the "Manager") serves as
the Funds 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. Under the terms of the
custody agreement, the Fund received net earnings credits of $13,754 during
the period ended March 31, 1999 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 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.
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
The Fund has an unused capital loss carryover of approximately $1,385,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1999. The
carryover does not include net realized securities losses from November 1,
1998 through March 31, 1999 which are treated, for Federal income tax
purposes, as arising in fiscal 2000. 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 (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, 1999, 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 Funds average
daily net assets and is payable monthly. The Manager had undertaken from April
1, 1998 through March 31, 1999 to reduce the management fee paid by the Fund,
to the extent that the Funds 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 Funds average daily
net assets. The reduction in management fee, pursuant to the undertaking,
amounted to $80,275 during the period ended March 31, 1999.
(b) Under the Funds 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 Funds 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, 1999, the Fund was charged $126,376 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, 1999, the Fund was charged $55,206 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 use of the Fund Exchange privilege. During the period
ended March 31, 1999, redemption fees amounted to $46.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1999
amounted to $27,038,864 and $16,520,994, respectively.
At March 31, 1999, accumulated net unrealized appreciation on investments
was $7,142,527, consisting of $7,224,877 gross unrealized appreciation and
$82,350 gross unrealized depreciation.
At March 31, 1999, 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).
<PAGE>
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, 1999, 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 Funds 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, 1999 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 Connecticut Intermediate Municipal Bond Fund at March 31, 1999, 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.
/s/Ernst & Young L.L.P.
New York, New York
April 26, 1999
<PAGE>
Dreyfus Connecticut Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Important Tax Information (Unaudited)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during its fiscal year ended March
31, 1999 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 Funds taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1999 calendar year
on Form 1099-DIV which will be mailed by January 31, 2000.
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
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 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.914AR993
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 BROTHERS
10-YEAR DREYFUS CONNECTICUT
MUNICIPAL INTERMEDIATE
PERIOD BOND INDEX * MUNICIPAL 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
3/31/99 16,188 15,084
* Source: Lehman Brothers
