Dreyfus
Connecticut 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
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
22 Report of Independent Auditors
23 Important Tax Information
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Connecticut
Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Connecticut
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, Samuel Weinstock.
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 Connecticut Intermediate Municipal Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Samuel Weinstock, Portfolio Manager
How did Dreyfus Connecticut Intermediate Municipal Bond Fund perform during the
period?
The fund produced a -0.10% total return over the 12-month period ended March 31,
2000.(1) This compares with a -0.72% total return for the Lipper Other States
Intermediate Municipal Debt Funds category average.(2)
We attribute the fund's negative absolute performance to a rising interest-rate
environment, which caused most municipal bond prices to decline during the past
year. However, the fund's favorable relative performance compared to that of its
category average was attributable to the fund's security selection strategy,
which was designed to reduce risks and maximize income opportunities over the
long term.
What is the fund's investment approach?
The fund' s objective is to seek a high level of federal and Connecticut state
tax-exempt income as is consistent with preservation of capital. To pursue this
goal, we have attempted to manage the portfolio with an eye toward maintaining
or improving current income levels.
In pursuing this objective, we employ four primary strategies. First, we strive
to identify the maturity range that we believe will provide the most favorable
yields over the next year or two. Second, we evaluate issuers' credit quality to
find bonds that we believe provide high yields at attractive prices. Third, we
look for bonds with attractively high interest payments, even if they sell at a
premium to face value. Fourth, we assess individual bonds' early redemption
features, focusing on those that cannot be redeemed quickly by their issuers.
Typically, the bonds we select for the portfolio will have several of these
qualities.
We also evaluate the bonds' likely performance under various market scenarios.
We generally select securities that we believe are most likely to provide the
best yields over an anticipated range of interest-rate The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
levels. In other cases, we hold certain securities because of our belief that
they will participate strongly in market rallies and provide protection against
market declines.
What other factors influenced the fund's performance?
Although the fund's performance was hurt by a difficult investment environment
during much of 1999, the first quarter of 2000 provided better 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 during the 12-month reporting
period, for a total increase of 125 basis points since last summer, causing most
bond prices to fall.
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 and drove municipal
bond prices down.
During the first quarter of 2000, however, 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, from which the fund
benefited. In Connecticut, however, where the supply of newly issued municipal
bonds tends to be less voluminous than in other states, the reduced supply of
bonds made it more difficult to find appropriate bonds for the portfolio.
What is the fund's current strategy?
We have continued our efforts to upgrade the portfolio without sacrificing
income by shifting assets from longer term bonds to shorter term bonds with
greater protection from early redemptions. We have found such opportunities
primarily among tax-exempt bonds in the
five- to 10-year maturity range. We have also continued to hold high current
yield bonds selling at prices higher than their face values. These "premium"
bonds offer high current yields as well as protection from DE MINIMIS risks that
typically affect discount bonds in a rising interest-rate environment.
These changes in the fund's asset mix have also affected our duration management
strategy. At about 4.8 years as of March 31, the fund's average duration is
slightly shorter than it was when the reporting period began. Looking forward,
the fund's current average duration leaves us plenty of room for extension when
we believe that the time is right for such a move.
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-CONNECTICUT 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 Connecticut
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> <C>
FUND 6/26/92 (0.10%) 4.95% 5.43%
((+)) 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 CONNECTICUT
INTERMEDIATE MUNICIPAL BOND FUND ON 6/26/92 (INCEPTION DATE) TO A $10,000
INVESTMENT MADE IN THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX ON THAT
DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 6/30/92 IS USED AS THE
BEGINNING VALUE ON 6/26/92. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND INVESTS PRIMARILY IN CONNECTICUT MUNICIPAL SECURITIES AND MAINTAINS A
PORTFOLIO WITH A WEIGHTED-AVERAGE MATURITY RANGING BETWEEN 3 AND 10 YEARS. THE
FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES.
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS
PRINCIPALLY IN CONNECTICUT MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND
INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR
THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 10-YEAR TAX-EXEMPT BOND
MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 9-12 YEARS. THESE
FACTORS, COUPLED WITH THE POTENTIALLY LONGER MATURITY OF THE INDEX, CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
March 31, 2000
Principal
LONG-TERM MUNICIPAL INVESTMENTS--96.9% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT--79.0%
<S> <C> <C> <C>
Bridgeport 6%, 9/1/2006 (Insured; AMBAC) 1,750,000 1,847,422
Chesire 5.10%, 8/15/2006 530,000 535,565
Columbia:
5.20%, 6/15/2002 265,000 268,585
5.30%, 6/15/2003 265,000 270,252
5.40%, 6/15/2004 265,000 271,832
State of Connecticut:
5.80%, 11/15/2002 1,500,000 1,545,060
5.25%, 3/15/2010 5,100,000 5,192,922
Clean Water Fund Revenue:
5.40%, 4/1/2003 1,000,000 1,020,920
5.40%, 6/1/2007 1,805,000 1,854,818
5.125%, 7/1/2007 (Insured; MBIA) 2,000,000 2,019,140
5.75%, 12/1/2013 75,000 77,246
5.75%, 12/1/2013 (Prerefunded 6/1/2004) 925,000 (a) 972,767
Special Assessment Second Injury Fund Revenue
5.20%, 1/1/2010 (Insured; AMBAC) 3,000,000 3,021,630
Special Tax Obligation Revenue
(Transportation Infrastructure):
5.60%, 9/1/2002 3,000,000 3,064,650
5.25%, 9/1/2007 1,115,000 1,135,159
5.25%, 9/1/2007 (Insured; MBIA) 1,360,000 1,384,589
5.375%, 9/1/2008 2,500,000 2,566,250
Connecticut Development Authority, Revenue
(Duncaster Project) 5.50%, 8/1/2011 (Insured; AGIC) 2,405,000 2,421,955
Connecticut Health and Educational Facilities Authority, Revenue:
(Connecticut State University System)
5%, 11/1/2007 (Insured; MBIA) 1,820,000 1,825,041
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA) 1,000,000 1,043,830
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA) 500,000 504,330
(Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA) 2,210,000 2,235,746
(University of Hartford):
6.20%, 7/1/2001 750,000 757,215
6.25%, 7/1/2002 700,000 709,492
(University of New Haven) 6%, 7/1/2006 900,000 908,289
(Windham Community Memorial Hospital) 5.75%, 7/1/2011 1,000,000 902,570
(Yale New Haven Hospital) 5.50%, 7/1/2010 1,810,000 1,859,938
Connecticut Higher Education Supplemental
Loan Authority, Revenue (Family Education Loan Program):
5.70%, 11/15/2004 1,195,000 1,214,048
5.80%, 11/15/2005 1,625,000 1,658,491
5.90%, 11/15/2006 1,710,000 1,753,605
5.50%, 11/15/2008 1,580,000 1,578,278
5.60%, 11/15/2009 1,675,000 1,679,991
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
5.90%, 5/15/2006 775,000 793,011
5.65%, 11/15/2007 1,000,000 1,005,770
6.20%, 5/15/2012 (Insured; MBIA) 1,000,000 1,041,660
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA) 400,000 407,596
5.40%, 1/15/2005 (Insured; MBIA) 400,000 410,560
5.50%, 1/15/2006 (Insured; MBIA) 400,000 410,704
Connecticut Resource Recovery Authority,
Revenue (Bridgeport Resco Co. LP Project)
5.375%, 1/1/2006 2,500,000 2,548,025
Danbury:
5.10%, 8/15/2003 815,000 826,410
5.25%, 8/15/2004 815,000 831,675
Derby:
5.40%, 5/15/2004 (Insured; AMBAC) 420,000 430,639
5.50%, 5/15/2005 (Insured; AMBAC) 620,000 639,604
Eastern Connecticut Resources Recovery Authority,
Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006 820,000 758,779
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC) 300,000 306,378
5.40%, 7/15/2005 (Insured; FGIC) 305,000 313,793
5.50%, 7/15/2006 (Insured; FGIC) 305,000 315,361
East Lyme:
5.20%, 8/1/2003 425,000 431,524
5.60%, 8/1/2009 415,000 427,458
Easton:
5.05%, 6/1/2007 270,000 272,330
5.15%, 6/1/2008 270,000 272,892
5.25%, 6/1/2009 245,000 248,134
Guilford:
5.50%, 10/15/2002 1,000,000 1,021,910
5.25%, 1/15/2004 300,000 306,009
5.40%, 1/15/2005 325,000 333,999
5.50%, 1/15/2006 325,000 334,116
Glastonbury:
4.125%, 4/1/2009 250,000 229,105
4.25%, 4/1/2010 150,000 138,170
Hamden:
5.25%, 10/1/2001 445,000 450,238
5.40%, 10/1/2003 425,000 434,567
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Hartford 5.30%, 10/1/2008 (Insured; FGIC) 1,000,000 1,020,140
Meriden 5.50%, 11/15/2001 (Insured; MBIA) 1,300,000 1,322,490
Middletown 5%, 4/15/2008 1,760,000 1,762,851
New Britain:
5.375%, 3/1/2003 (Insured; MBIA) 750,000 762,900
5.50%, 3/1/2004 (Insured; MBIA) 1,000,000 1,024,140
New Canaan:
5.25%, 2/1/2009 550,000 560,885
5.30%, 2/1/2010 650,000 664,495
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA) 550,000 552,497
New Haven:
6.50%, 12/1/2002 1,060,000 1,097,672
6.50%, 12/1/2002 (Escrowed to Maturity) 350,000 365,831
6.75%, 12/1/2005 845,000 903,398
5.25%, 8/1/2006 (Insured; FGIC) 1,200,000 1,220,916
5%, 8/1/2008 (Insured; FGIC) 2,185,000 2,184,104
New London:
5.10%, 10/1/2002 (Insured; MBIA) 300,000 303,753
5.20%, 10/1/2003 (Insured; MBIA) 575,000 584,459
New Milford:
5.20%, 8/1/2003 550,000 558,443
5.40%, 8/1/2006 380,000 390,317
5.50%, 8/1/2007 425,000 439,595
Norwalk Maritime Center Authority, Revenue
(Maritime Center Project) 5.50%, 2/1/2003 670,000 684,104
Norwich 5.75%, 9/15/2005 875,000 912,117
Redding:
6.55%, 4/15/2008 200,000 220,380
6.60%, 4/15/2009 200,000 222,500
South Central Connecticut Regional Water Authority,
Water Systems Revenue
5.50%, 8/1/2003 (Insured; FGIC) 2,000,000 2,049,620
Southington:
5.40%, 9/15/2005 (Insured; MBIA) 455,000 468,068
5.50%, 9/15/2006 (Insured; MBIA) 455,000 470,324
5.60%, 9/15/2007 (Insured; MBIA) 455,000 471,544
Stamford:
6.625%, 3/15/2004 1,620,000 1,734,647
6.625%, 3/15/2004 (Escrowed to Maturity) 1,130,000 1,202,840
7.75%, 1/15/2005 1,650,000 1,860,375
Stratford 5.625%, 11/1/2007 (Insured; FGIC) 2,490,000 2,564,725
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Vernon:
5.30%, 9/15/2004 (Insured; MBIA) 360,000 368,366
5.40%, 9/15/2005 (Insured; MBIA) 360,000 370,339
5.50%, 9/15/2006 (Insured; MBIA) 360,000 370,483
Wallingford:
5.40%, 6/15/2003 400,000 408,868
5.30%, 6/1/2004 500,000 510,725
Waterbury:
4.90%, 4/15/2002 (Insured; FGIC) 1,650,000 1,656,468
5%, 4/15/2003 (Insured; FGIC) 2,060,000 2,071,763
Westport:
5.10%, 6/15/2003 500,000 505,510
5.20%, 6/15/2004 500,000 515,590
U.S. RELATED--17.9%
Commonwealth of Puerto Rico:
5.30%, 7/1/2004 (Insured; MBIA) 1,000,000 1,025,310
5.25%, 7/1/2014 (Insured; MBIA) 1,000,000 1,004,400
Public Improvement 5.25%, 7/1/2012 (Insured; FSA) 2,600,000 2,648,048
Puerto Rico Electric and Power Authority, Power Revenue
6.125%, 7/1/2009 (Insured; MBIA) 4,000,000 4,352,840
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002 3,900,000 3,990,948
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program
General Obligation Matching Fund) 5.65%, 10/1/2003 2,040,000 2,074,333
Virgin Islands Public Finance Authority,
Revenue, Matching Fund Loan Notes:
6.90%, 10/1/2001 2,000,000 2,077,560
5.50%, 10/1/2008 1,500,000 1,485,480
Virgin Islands Port Authority, Airport Revenue
4.35%, 9/1/2003 2,830,000 2,721,413
Virgin Islands Public Finance Authority,
Revenue, Gross Receipts Taxes Loan Notes
5.625%, 10/1/2010 1,000,000 992,580
Virgin Islands Water and Power Authority,
Water Systems Revenue
7.20%, 1/1/2002 100,000 103,139
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $120,089,968) 121,876,336
Principal
SHORT-TERM MUNICIPAL INVESTMENTS--1.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT--.8%
State of Connecticut, VRDN
3.60% (SBPA; Bayerische Landesbank) 1,000,000 (b) 1,000,000
U.S. RELATED--.8%
Puerto Rico Highway and Transportation Authority,
Transportation Revenue, VRDN 3.25% (Insured; AMBAC,
SBPA; Bank of Nova Scotia) 1,000,000 (b) 1,000,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $2,000,000) 2,000,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $122,089,968) 98.5% 123,876,336
CASH AND RECEIVABLES (NET) 1.5% 1,825,490
NET ASSETS 100.0% 125,701,826
The Fund
</TABLE>
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
AGIC Asset Guaranty Insurance Company
AMBAC American Municipal Bond Assurance Corporation
FGIC Financial Guaranty Insurance
Company
FSA Financial Security Assurance
MBIA Municipal Bond Investors Assurance
Insurance Corporation
SBPA Standby Bond Purchase Agreement
VRDN Variable Rate Demand Notes
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 53.6
AA Aa AA 23.4
A A A 12.2
BBB Baa BBB 7.5
F1 Mig1 SP1 1.6
Not Rated (c) Not Rated (c) Not Rated (c) 1.7
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE -- SUBJECT TO CHANGE
PERIODICALLY.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 122,089,968 123,876,336
Cash 210,815
Interest receivable 1,720,473
Prepaid expenses 4,749
125,812,373
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 66,406
Accrued expenses 44,141
110,547
--------------------------------------------------------------------------------
NET ASSETS ($) 125,701,826
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 126,145,787
Accumulated net realized gain (loss) on investments (2,230,329)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 1,786,368
--------------------------------------------------------------------------------
NET ASSETS ($) 125,701,826
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
9,403,708
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
13.37
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended March 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 6,889,031
EXPENSES:
Management fee--Note 3(a) 812,948
Shareholder servicing costs--Note 3(b) 180,163
Professional fees 30,867
Trustees' fees and expenses--Note 3(c) 28,167
Registration fees 16,588
Custodian fees 12,151
Prospectus and shareholders' reports 8,252
Loan commitment fees--Note 2 1,409
Miscellaneous 21,794
TOTAL EXPENSES 1,112,339
Less--reduction in management fee due to
undertaking--Note 3(a) (39,973)
NET EXPENSES 1,072,366
INVESTMENT INCOME--NET 5,816,665
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (834,765)
Net unrealized appreciation (depreciation) on investments (5,356,159)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (6,190,924)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (374,259)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended March 31,
----------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 5,816,665 5,614,799
Net realized gain (loss) on investments (834,765) 429,909
Net unrealized appreciation (depreciation)
on investments (5,356,159) 471,367
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (374,259) 6,516,075
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (5,816,665) (5,614,799)
Net realized gain on investments -- (1,930)
TOTAL DIVIDENDS (5,816,665) (5,616,729)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 25,831,459 30,133,025
Dividends reinvested 4,556,685 4,348,768
Cost of shares redeemed (40,456,606) (25,701,924)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (10,068,462) 8,779,869
TOTAL INCREASE (DECREASE) IN NET ASSETS (16,259,386) 9,679,215
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 141,961,212 132,281,997
END OF PERIOD 125,701,826 141,961,212
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,903,739 2,154,340
Shares issued for dividends reinvested 337,472 310,650
Shares redeemed (2,999,430) (1,839,719)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (758,219) 625,271
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<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 ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 13.97 13.87 13.33 13.35 13.03
Investment Operations:
Investment income--net .58 .58 .60 .59 .60
Net realized and unrealized
gain (loss) on investments (.60) .10 .54 (.01) .31
Total from Investment Operations (.02) .68 1.14 .58 .91
Distributions:
Dividends from investment income--net (.58) (.58) (.60) (.60) (.59)
Net asset value, end of period 13.37 13.97 13.87 13.33 13.35
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (.10) 4.96 8.65 4.38 7.09
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .79 .80 .78 .78 .72
Ratio of net investment income
to average net assets 4.29 4.13 4.34 4.42 4.46
Decrease reflected in above expense
ratios due to undertakings
by The Dreyfus Corporation .03 .06 .06 .06 .13
Portfolio Turnover Rate 13.33 12.71 6.90 29.56 19.91
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 125,702 141,961 132,282 129,464 134,110
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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 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 The Fund
NOTES TO FINANCIAL STATEMENTS (continued)
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 $9,783 during the period
ended March 31, 2000 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.
The fund has an unused capital loss carryover of approximately $1,428,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 2000. This amount
is calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, $1,385,000 of the carryover expires in fiscal 2004 and $43,000
expires in fiscal 2008.
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 The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
$39,973 during the period ended March 31, 2000.
(b) Under the fund' s Shareholder Services Plan, the fund reimburses DSC 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, 2000, the fund was charged $101,336 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 $50,313 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,
2000, redemption fees amounted to $249.
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
$17,561,325 and $27,827,694, respectively.
At March 31, 2000, accumulated net unrealized appreciation on investments was
$1,786,368, consisting of $2,184,021 gross unrealized appreciation and $397,653
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 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, 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 Connecticut 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 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 2000 calendar year on Form 1099-DIV which
will be mailed by January 31, 2001.
The Fund
NOTES
For More Information
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
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 914AR003
