Dreyfus New Jersey Intermediate Municipal Bond Fund
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New Jersey
Intermediate Municipal Bond Fund. For its annual reporting period ended March
31, 1996, your portfolio produced a total return of 7.09%, which includes
bond price changes and interest income.* Income dividends exempt from Federal
and State of New Jersey personal income taxes of approximately $.601 per
share were paid to shareholders.** This is equivalent to an annualized
tax-free distribution rate per share of 4.48%.***
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. At present, there are indications that the labor market may be
tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a
possibility well worth noting since worker wages are emerging as a political
issue in this year's election. The surprisingly strong employment figures in
February caused a sharp rise in interest rates. As a result, fixed-income
returns for the first quarter of this year were negative.
Several factors that temporarily depressed economic activity have ended.
With the arrival of spring, the severe winter weather that suppressed
construction and discouraged consumer shopping is over. In addition, the
17-day strike at two General Motors brake-parts plants has been settled. This
strike nearly resulted in a complete shutdown of GM North American
manufacturing.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed reduced the level of short-term interest rates three times
to spur the sluggish economy, the last reduction occurring on January 31,
1996.
Nevertheless, we are reluctant to paint an overly optimistic business
picture since much economic data still remains mixed. Business capital
spending has been an important stimulant to economic growth over the past few
years, particularly in light of the retrenchment in consumer spending. A
survey by the Commerce Department revealed that businesses plan only modest
increases in spending on new buildings and equipment this year compared to
1995. Overall, the survey indicated that capital spending would rise only
1.5% compared to last year's growth rate of 8.1%. The survey also points out
a significant divergence between the spending plans of manufacturing
companies and those of retailers and wholesalers. Influenced by strong export
growth, capital spending by manufacturers is estimated to rise 7.2%.
Conversely, weak consumer spending has resulted in retailers and wholesalers
cutting their capital spending estimates by 4%. The more cautious approach to
business spending may be an indication that overall economic growth in 1996
will be modest.
THE MARKET
In the beginning of the fiscal year we cautiously embraced the market's
performance and its favorable impact on the Fund. We were, however, wary of
the bond market's strength and its dependence on continued low inflation. We
remained fully invested to a large extent during this improved market, but
alert to the stimulating effect of easing monetary policy and the possibility
of rekindling inflation.
The market subsequently experienced a dramatic downturn late in the first
quarter of 1996. This weakness continued to be more pronounced than the
market had anticipated (some marginal improvement has been seen recently).
Expectations of faster economic growth combined with rising commodity prices
had raised the prospect of future rising inflation.
The most recent market peak in prices was in mid-February, with yields on
good quality 10-year bonds around 4.50%. By early April, prices had declined
and yield levels had risen to 5.15%. Markets rarely move in one direction
over an extended period of time, so we are optimistic that much of the market
correction is behind us. We remain cautious, however, awaiting confirmation
of a market bottom before pursuing a more aggressive strategy.
THE PORTFOLIO
The Fund continues to take a defensive posture for a number of reasons.
There is a very limited supply of New Jersey paper available to maneuver
effectively, issuers have previously attained financing for their capital
programs so overall new issuance is down, and market uncertainty has produced
a constricted trading market.
Giving consideration to these factors, the Fund bought a number of
discount bonds in both the primary and secondary markets with a focus on
performance-based coupons. This was necessary since the portfolio was largely
defensive last year in order to contend with a market which possessed tenuous
overtones. By the end of this year's second quarter however, it became clear
that the market had the ability to trend upward. As this scenario unfolded,
the discount bonds purchased earlier in the year soon reached premium levels
and the portfolio was once again seeking ways to bolster performance. This
strategy was well founded since the bond market incrementally gained positive
momentum through year-end. However, as the market seemed to be nearing a new
high, availability of quality structured discount bonds faded and the Fund
focused on selling holdings with short calls and short maturities.
Additionally, as bonds seemed to have reached their peak levels of
performance, the Fund sold premium bonds and took profits as we sensed an end
to the rally.
The economy is at a virtual crossroads where growth is concerned. Going
forward, we anticipate market volatility until the rate of economic growth is
definitively ascertained. We are attempting to increase our cash position to
capitalize on the potential of a rebound early on but once again maintain a
defensive posture with an eye toward improving the structure of the bonds
held in the portfolio. The Fund is conservatively positioned to withstand the
uncertainty in the economy and the negative impact of volatility should
economic growth expand rapidly.
Our primary tasks are to protect principal, maintain liquidity, and
distribute a high level of current tax exempt income to you, our
shareholders. These factors continue to motivate our portfolio management
decisions. The high level of volatility exhibited by the market in recent
years underscores the need to maintain a disciplined and longer-term
perspective.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Annualized 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.
Dreyfus New Jersey Intermediate Municipal Bond Fund March 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW JERSEY
INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX
[Exhibit A]
Dollars
$13,116
Lehman Brothers
10-Year Municipal
Bond Index*
$12,734
Dreyfus New Jersey
Intermediate
Municipal Bond Fund
[Exhibit A]
*Source: Lehman Brothers
Average Annual Total Returns
One Year Ended From Inception (6/26/92)
March 31, 1996 to March 31, 1996
_________________ _________________________
7.09% 6.63%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus New Jersey
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 New Jersey 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 more than 8 years and less than 12 years.
The Index does not take into account charges, fees and other expenses. Also,
unlike the Fund which principally limits investments to New Jersey municipal
obligations, the Index is not State specific. These factors can contribute to
the Index potentially outperforming the Fund. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
<TABLE>
Dreyfus New Jersey Intermediate Municipal Bond Fund
STATEMENT OF INVESTMENTS MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.9% AMOUNT VALUE
_______ _______
<S> <C> <C>
NEW JERSEY-82.8%
Bayshore Regional Sewer Authority, Subordinated Sewer Revenue
5.10%, 5/1/2004 (Insured; MBIA)......................................... $ 1,110,000 $ 1,127,227
Burlington County, Refunding 5.35%, 9/15/2003............................... 1,000,000 1,034,990
Camden County, Refunding 5.40%, 6/1/2001 (Insured; MBIA).................... 2,500,000 2,595,050
Camden County Improvement Authority, Revenue:
County Guaranteed Lease:
5.40%, 12/1/2002...................................................... 855,000 888,131
5.85%, 10/1/2006 (Insured; MBIA)...................................... 1,000,000 1,063,010
(Health Services Center) 4.80%, 12/1/2004 (Insured; AMBAC) (a).......... 1,555,000 1,546,510
Camden County Municipal Utilities Authority, County Agreement Sewer Revenue,
Refunding 5%, 7/15/2009 (Insured; FGIC)................................. 2,000,000 1,931,080
Cherry Hill Township:
General and Water Assessment 5.30%, 9/1/2002............................ 1,220,000 1,264,579
Sewer and Sewer Assessment 5.30%, 9/1/2002.............................. 150,000 155,481
Dover Township:
5.80%, 10/15/2001 (Insured; AMBAC)...................................... 1,740,000 1,848,193
5.90%, 10/15/2002 (Insured; AMBAC)...................................... 1,640,000 1,756,686
Township of East Brunswick, Refunding 4.75%, 4/1/2004....................... 1,310,000 1,307,838
East Windsor Municipal Utility Authority, Revenue, Refunding
4.80%, 12/1/2004 (Insured; AMBAC)....................................... 1,260,000 1,253,120
Essex County Improvement Authority, Revenue:
(Irvington County School District) 6.10%, 10/1/2001 (Insured; FSA)...... 1,415,000 1,521,818
Lease, Refunding (County Jail and Youth House Project)
5%, 12/1/2009 (Insured; AMBAC)........................................ 1,575,000 1,519,686
Galloway Township School District, Refunding 4.60%, 12/15/2007 (Insured; AMBAC) 1,005,000 952,951
Gloucester Township, Refunding 5.20%, 7/15/2004 (Insured; AMBAC)............ 795,000 815,670
Hamilton Township:
General Improvement:
5.20%, 9/1/2001 (Insured; FGIC)....................................... 600,000 619,548
5.20%, 9/1/2002 (Insured; FGIC)....................................... 600,000 619,296
Sewer Utility:
5.20%, 9/1/2001 (Insured; FGIC)....................................... 450,000 464,661
5.20%, 9/1/2002 (Insured; FGIC)....................................... 450,000 464,472
Highland Park, Water and Sewer Utility:
6%, 10/15/2003.......................................................... 360,000 385,517
6%, 10/15/2004.......................................................... 470,000 501,185
Hillside Township 6.60%, 2/15/2007 (Insured; MBIA).......................... 1,000,000 1,093,630
Dreyfus New Jersey Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
City of Hoboken Parking Authority, Parking General Revenue, Refunding:
6.10%, 3/1/2002......................................................... $ 375,000 $ 393,941
6.20%, 3/1/2003......................................................... 395,000 417,697
Hudson County:
4.70%, 8/1/2002......................................................... 500,000 493,615
4.75%, 8/1/2003......................................................... 500,000 489,365
Hudson County Improvement Authority, Solid Waste System Revenue
6.75%, 1/1/2003......................................................... 3,000,000 2,981,820
Hunterdon County, General Improvement:
4.25%, 12/15/2006....................................................... 1,600,000 1,479,360
4.25%, 12/15/2007....................................................... 1,600,000 1,457,968
Lacy Municipal Utilities Authority, Water Revenue:
5.10%, 12/1/2003 (Insured; MBIA)........................................ 1,060,000 1,085,949
5.20%, 12/1/2004 (Insured; MBIA)........................................ 1,215,000 1,247,756
Long Branch Sewerage Authority, Revenue, Refunding:
5%, 6/1/2003 (Insured; FGIC)............................................ 610,000 620,437
5.10%, 6/1/2004 (Insured; FGIC)......................................... 690,000 703,110
Manalapan-Englishtown Regional School District Board of Education, (School Bonds)
5%, 5/1/2004............................................................ 1,950,000 1,979,074
Mercer County Improvement Authority, Revenue:
Refunding (Special Services School District) 5.30%, 12/15/2002.......... 845,000 878,023
Township Guaranteed Refunding (Hamilton Board of Education Lease Project)
5.70%, 6/1/2002 (Insured; MBIA)....................................... 470,000 495,794
Middlesex County Utilities Authority, Revenue:
Sewer, Refunding 5%, 9/15/2008 (Insured; FGIC).......................... 1,000,000 975,980
Solid Waste System 5.90%, 12/1/1999 (Insured; FGIC)..................... 4,500,000 4,742,325
Township of Middletown, Refunding 4.90%, 8/1/2004........................... 1,810,000 1,814,181
Monmouth County Improvement Authority, Revenue
(Correctional Facilities - Monmouth Project) 6%, 8/1/2000............... 1,265,000 1,339,711
City of Newark Board of Education 5.875%, 12/15/2006 (Insured; MBIA)........ 1,755,000 1,871,251
State of New Jersey:
5.80%, 8/1/2001......................................................... 2,000,000 2,125,060
6.25%, 9/15/2001........................................................ 1,875,000 2,033,681
5.90%, 8/1/2002......................................................... 5,500,000 5,896,055
New Jersey Economic Development Authority:
District Heating and Cooling Revenue (Trenton-Trigen Project)
6.10%, 12/1/2004...................................................... 3,375,000 3,602,779
Dreyfus New Jersey Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
New Jersey Economic Development Authority (continued):
Economic Growth Revenue:
4.80%, 10/1/2003 (LOC; National Westminister Bank) (b)................ $ 820,000 $ 829,528
5%, 10/1/2005 (LOC; National Westminister Bank) (b)................... 1,255,000 1,282,146
Market Transition Facility Revenue 7%, 7/1/2004 (Insured; MBIA)......... 2,275,000 2,601,781
Waste Paper Recycling (MPMI Inc. Project) 5.75%, 2/1/2004............... 2,500,000 2,515,450
New Jersey Educational Facilities Authority, Revenue:
Higher Educational Facilities (Saint Peter's College Issue) 6%, 7/1/1998 280,000 289,680
Higher Educational Facilities Trust Fund:
5.125%, 9/1/2006 (Insured; AMBAC)..................................... 2,775,000 2,792,705
5.125%, 9/1/2009 (Insured; AMBAC)..................................... 2,000,000 1,957,960
(Institute of Advanced Study) 6.15%, 7/1/2004........................... 560,000 599,200
Refunding (Ramapo College) 5.15%, 7/1/2004 (Insured; MBIA).............. 1,010,000 1,032,745
(Rowan College) 5.15%, 7/1/2004 (Insured; MBIA)......................... 825,000 843,579
New Jersey Health Care Facilities Financing Authority, Revenue:
(Allegany Health System - Our Lady of Lourdes Medical Center Issue)
4.80%, 7/1/2005 (Insured; MBIA)....................................... 1,580,000 1,554,752
(Deborah Heart and Lung Center Issue):
5.60%, 7/1/2003....................................................... 1,710,000 1,737,326
5.80%, 7/1/2004....................................................... 745,000 760,094
5.90%, 7/1/2005....................................................... 790,000 813,179
(Mountainside Hospital) 5.10%, 7/1/2003 (Insured; MBIA)................. 1,630,000 1,668,060
Refunding:
(Atlantic City Medical Center Issue):
6.25%, 7/1/2000................................................... 430,000 451,341
6.30%, 7/1/2001................................................... 3,365,000 3,558,319
(Burdette Tomlin Memorial Hospital Issue) 6%, 7/1/2003 (Insured; FGIC) 1,665,000 1,783,848
(Chilton Memorial Hospital) 4.80%, 7/1/2004........................... 2,120,000 2,078,808
(Raritan Bay Medical Center Issue) 6.625%, 7/1/2005................... 2,800,000 2,806,328
(Robert Wood Johnson University Center) 5%, 7/1/2008 (Insured; MBIA) (c) 1,500,000 1,456,410
(West Jersey Health System) 5.45%, 7/1/2002 (Insured; MBIA)........... 2,160,000 2,250,914
New Jersey Higher Education Assistance Authority, Student Loan Revenue:
6.80%, 7/1/2000......................................................... 835,000 879,472
(NJClass Loan Program) 5.60%, 1/1/2001.................................. 1,060,000 1,080,691
New Jersey Highway Authority, Senior Parkway Revenue, Refunding
(Garden State Parkway):
5.70%, 1/1/2002....................................................... 500,000 525,045
5.90%, 1/1/2004....................................................... 500,000 532,860
Dreyfus New Jersey Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
New Jersey Housing and Mortgage Finance Agency, Housing Revenue, Refunding:
6.20%, 11/1/2004........................................................ $ 4,000,000 $ 4,153,360
6.60%, 11/1/2004........................................................ 3,660,000 3,892,776
New Jersey Sports and Exposition Authority, Convention Center Luxury Tax Revenue
5.75%, 7/1/2002 (Insured; MBIA)......................................... 2,000,000 2,121,960
New Jersey Transportation Trust Fund Authority, Transportation System:
6%, 6/15/2001........................................................... 5,500,000 5,865,860
6.25%, 12/15/2003....................................................... 5,315,000 5,824,283
5.125%, 6/15/2007 (Insured; AMBAC)...................................... 2,500,000 2,491,150
4.875%, 12/15/2008 (Insured; MBIA)...................................... 3,000,000 2,857,590
New Jersey Turnpike Authority, Turnpike Revenue:
5.70%, 1/1/2001 (Insured; AMBAC)........................................ 1,000,000 1,049,260
5.80%, 1/1/2002 (Insured; AMBAC)........................................ 2,230,000 2,355,839
New Jersey Wastewater Treatment Trust:
5.90%, 5/01/2003 (Insured; MBIA)........................................ 1,400,000 1,493,534
Loan Revenue 6.30%, 7/1/2005............................................ 3,595,000 3,867,753
North Brunswick Township 6.30%, 5/15/2006................................... 1,860,000 2,010,028
North Jersey District Water Supply Commission, Revenue, Refunding
(Wanaque South Project) 5.40%, 7/1/2002 (Insured; MBIA)................. 2,795,000 2,931,396
Ocean County, General Improvement:
5.25%, 9/1/2001......................................................... 1,600,000 1,659,840
7.50%, 10/15/2001....................................................... 550,000 627,984
5.30%, 9/1/2003......................................................... 2,115,000 2,198,352
5.125%, 7/1/2004........................................................ 1,000,000 1,020,150
5.65%, 7/1/2005......................................................... 1,600,000 1,685,264
Parsippany - Troy Hills Township, Refunding 6%, 4/1/2004.................... 1,630,000 1,754,825
City of Perth Amboy Board of Education, COP, Lease Purchase Agreement
(FWB Leasecorp, Inc.) 5.60%, 12/15/2002 (Insured; FSA).................. 1,265,000 1,345,112
Pinelands Regional Board of Education, Refunding COP, Lease Purchase
Agreement
(A & R Hunt Enterprises, Inc.) 5.70%, 2/15/2003 (Insured; FSA).......... 350,000 372,564
Port Authority of New York and New Jersey:
(Consolidated Board 91st Series) 4.70%, 11/15/2004...................... 3,420,000 3,371,915
(Consolidated Board 101st Series) 5.25%, 9/15/2006 (Insured; MBIA)...... 1,000,000 1,008,390
Township of Roxbury, Water and Sewer Assessment
5.05%, 8/1/2004 (Insured; AMBAC)........................................ 1,175,000 1,196,937
Rutgers State University, University Revenue, Refunding
(State University of New Jersey) 6.30%, 5/1/2005........................ 2,900,000 3,145,456
South Brunswick Township:
5.55%, 8/1/2001......................................................... 425,000 445,630
Dreyfus New Jersey Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
South Brunswick Township (continued):
5.55%, 8/1/2002......................................................... $ 421,000 $ 439,743
South Jersey Port Corp., Marine Terminal Revenue:
4.85%, 1/1/2001......................................................... 790,000 787,954
5.05%, 1/1/2003......................................................... 835,000 827,877
5.30%, 1/1/2005......................................................... 930,000 931,209
5.40%, 1/1/2006......................................................... 1,010,000 1,009,152
South Jersey Transportation Authority, Transportation System Revenue
5.50%, 11/1/2002 (Insured; MBIA)........................................ 2,000,000 2,113,440
South River School District 5%, 12/1/2008 (Insured; FGIC)................... 1,100,000 1,084,204
Stony Brook Regional Sewer Authority, Revenue, Refunding 5.55%, 12/1/2005... 1,000,000 1,040,740
Sussex County, Refunding 4.65%, 12/1/2002 (Insured; MBIA)................... 1,225,000 1,227,364
Sussex County Municipal Utilities Authority, Wastewater Facilities Revenue, Refunding
5%, 12/1/2003 (Insured; MBIA)........................................... 1,755,000 1,800,402
Trenton 5.25%, 8/1/2002 (Insured; FGIC)..................................... 1,000,000 1,034,490
Warren County Pollution Control Financing Authority, Landfill Revenue, Refunding
5.60%, 12/1/2002........................................................ 1,765,000 1,698,830
West Deptford Township, Refunding 5.20%, 3/1/2011 (Insured; AMBAC).......... 2,000,000 1,947,900
West Morris Regional High School District Board of Education, School
5.875%, 1/15/2004....................................................... 250,000 268,040
West Windsor Township, General Improvement:
5.70%, 10/15/2002....................................................... 600,000 628,764
5.90%, 10/15/2003....................................................... 600,000 630,552
West Windsor-Plainsboro Regional Board of Education, Refunding COP,
Lease Purchase Agreement (Lamington Funding Corp.)
5.50%, 3/15/2003 (Insured; MBIA)........................................ 1,115,000 1,159,031
Western Monmouth Utilities Authority, Revenue, Refunding
5.15%, 2/1/2008 (Insured; AMBAC)........................................ 1,000,000 988,850
Woodbridge Township:
5.65%, 8/15/2002........................................................ 1,320,000 1,390,937
6.20%, 8/15/2007........................................................ 2,000,000 2,121,060
U.S. RELATED -17.1%
Guam Airport Authority, General Revenue 6%, 10/1/2000....................... 1,200,000 1,234,728
Guam Government 5.75%, 8/15/1999............................................ 6,250,000 6,444,500
Commonwealth of Puerto Rico, Improvement, Refunding:
5.20%, 7/1/2003......................................................... 2,195,000 2,229,264
5.20%, 7/1/2003 (Insured; MBIA)......................................... 5,000,000 5,159,600
5.30%, 7/1/2004 (Insured; MBIA)......................................... 8,000,000 8,283,200
Dreyfus New Jersey Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1996
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
U.S Related (continued)
Puerto Rico Electric Power Authority, Electric Revenue, Refunding
5.50%, 7/1/2002 (Insured; FSA).......................................... $ 4,560,000 $ 4,786,860
Puerto Rico Highway and Transportation Authority, Highway Revenue, Refunding:
5.875%, 7/1/1999........................................................ 500,000 520,565
5.10%, 7/1/2003 (Insured; MBIA)......................................... 3,000,000 3,072,720
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control
Facilities Financing Authority, Higher Education Revenue
(Polytechnic University of Puerto Rico) 5.40%, 8/1/2003................. 1,010,000 990,770
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 2,100,000 2,169,069
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program/ GO Matching Fund) 5.65%, 10/1/2003...... 3,275,000 3,371,744
Virgin Islands Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes) 7%, 10/1/2002................................ 250,000 265,233
Virgin Islands Water and Power Authority, Water System Revenue 7.20%, 1/1/2002 400,000 414,180
__________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $222,156,145)..................................................... $227,357,662
==============
SHORT-TERM MUNICIPAL INVESTMENT-.1%
NEW JERSEY;
Monmouth County Improvement Authority, Revenue, VRDN
(Pooled Government Loan Program) 3.15% (LOC; Union Bank of Switzerland) (b,d)
(cost $100,000)......................................................... $ 100,000 $ 100,000
============
TOTAL INVESTMENTS-100.0%
(cost $222,256,145)..................................................... $227,457,662
============
</TABLE>
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
GO General Obligation
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _______ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 46.3%
AA Aa AA 26.6
A A A 13.7
BBB Baa BBB 8.5
BB Ba BB .7
F1 Mig1 SP1 .1
Not Rated (f) Not Rated (f) Not Rated (f) 4.1
______
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Held by the custodian in a segregated account as collateral for
delayed-delivery securities.
(b) Secured by letter of credit.
(c) Purchased on a delayed-delivery basis.
(d) 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.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's or Standard and
Poor's, have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
See notes to financial statements.
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $222,256,145)-see statement..................................... $227,457,662
Cash.................................................................... 68,488
Interest receivable..................................................... 3,254,365
Receivable for investment securities sold............................... 3,067,780
Prepaid expenses........................................................ 10,794
__________
233,859,089
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 124,226
Payable for investment securities purchased............................. 4,585,543
Accrued expenses ....................................................... 115,402 4,825,171
___________ ___________
NET ASSETS. $229,033,918
=============
REPRESENTED BY:
Paid-in capital......................................................... $229,739,310
Accumulated undistributed investment income-net......................... 55,234
Accumulated net realized (loss) on investments.......................... (5,962,143)
Accumulated net unrealized appreciation on investments-Note 3........... 5,201,517
___________
NET ASSETS at value applicable to 17,035,148 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $229,033,918
=============
NET ASSET VALUE, offering and redemption price per share
($229,033,918 / 17,035,148 shares)...................................... $13.44
=======
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $11,822,798
EXPENSES:
Management fee-Note 2(a).............................................. $1,366,704
Shareholder servicing costs-Note 2(b)................................. 253,112
Professional fees..................................................... 45,400
Trustees' fees and expenses-Note 2(c)................................. 24,190
Prospectus and shareholders' reports.................................. 23,334
Custodian fees........................................................ 20,271
Registration fees..................................................... 1,122
Miscellaneous......................................................... 39,349
_________
TOTAL EXPENSES.................................................. 1,773,482
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 141,807
_________
NET EXPENSES.................................................... 1,631,675
____________
INVESTMENT INCOME-NET........................................... 10,191,123
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 105,560
Net unrealized appreciation on investments.............................. 5,330,288
___________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 5,435,848
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $15,626,971
=============
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
____________________________________
1995 1996
________ ________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 11,455,201 $ 10,191,123
Net realized gain (loss) on investments................................. (5,662,614) 105,560
Net unrealized appreciation on investments for the year................. 5,265,522 5,330,288
____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 11,058,109 15,626,971
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (11,455,201) (10,135,889)
____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 86,892,865 48,864,663
Dividends reinvested.................................................... 9,649,253 8,637,889
Cost of shares redeemed................................................. (113,238,498) (55,158,432)
____________ ____________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS............................................. (16,696,380) 2,344,120
____________ ____________
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... (17,093,472) 7,835,202
NET ASSETS:
Beginning of year....................................................... 238,292,188 221,198,716
____________ ____________
End of year (including undistributed investment income-net;
$55,234 on March 31, 1996)............................................ $ 221,198,716 $ 229,033,918
============== ==============
SHARES SHARES
____________ ____________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 6,719,937 3,617,778
Shares issued for dividends reinvested.................................. 745,999 639,685
Shares redeemed......................................................... (8,819,014) (4,088,326)
____________ ____________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... (1,353,078) 169,137
============== ==============
</TABLE>
See notes to financial statements.
DREYFUS NEW JERSEY 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 year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
YEAR ENDED MARCH 31,
___________________________________________________
PER SHARE DATA: 1993(1) 1994 1995 1996
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of year......................... $12.50 $13.28 $13.08 $13.12
_______ _______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net...................................... .60 .68 .65 .60
Net realized and unrealized gain (loss) on investments..... .78 (.20) .04 .32
_______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS......................... 1.38 .48 .69 .92
_______ _______ _______ _______
DISTRIBUTIONS;
Dividends from investment income-net....................... (.60) (.68) (.65) (.60)
_______ _______ _______ _______
Net asset value, end of year............................... $13.28 $13.08 $13.12 $13.44
====== ======= ======= ========
TOTAL INVESTMENT RETURN........................................ 13.48%(2) 3.52% 5.45% 7.09%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... - .06% .45% .72%
Ratio of net investment income to average net assets....... 5.27%(2) 4.97% 5.02% 4.47%
Decrease reflected in above expense ratios due to undertakings
by the Manager........................................... 1.10%(2) .83% .45% .06%
Portfolio Turnover Rate.................................... 32.99%(3) 5.99% 35.01% 13.69%
Net Assets, end of year (000's Omitted).................... $129,197 $238,292 $221,199 $229,034
_______________________
(1) From May 27, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New Jersey 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 New Jersey 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. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge.
(A) PORTFOLIO VALUATION: The Fund's investments (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.
The Fund has an unused capital loss carryover of approximately $5,807,300
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995
Dreyfus New Jersey Intermediate Municipal Bond Fund
NOTES TO FINANCIAL STATEMENTS (continued)
through March 31, 1996 which are treated, for Federal income tax purposes, as
arising in fiscal 1997. If not applied, $5,400 of the carryover expires in
fiscal 2002, $3,341,300 expires in fiscal 2003 and $2,460,600 expires in
fiscal 2004.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("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 Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken from April 1, 1995 through July 6, 1995 to reduce the management
fee paid by the Fund, to the extent that the Fund's aggregate expenses
(exclusive of certain expenses as described above) exceeded specified annual
percentages of the Fund's average daily net assets. The Manager has currently
undertaken from July 7, 1995 through March 31, 1997 to reduce the management
fee paid by or reimburse such excess expenses of the Fund, to the extent that
the Fund's aggregate annual expenses (exclusive of certain expenses as
described above) exceed an annual rate of .80 of 1% of the average daily
value of the Fund's net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $141,807 for the year ended March 31, 1996.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Pursuant to 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 year ended March 31, 1996, the Fund was charged an aggregate of
$58,579 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, 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. Such compensation amounted to $41,312 for the period from
December 1, 1995 through March 31, 1996.
(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 $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, for the year ended March 31, 1996, amounted
to $36,736,656 and $30,662,022, respectively.
At March 31, 1996, accumulated net unrealized appreciation on investments
was $5,201,517, consisting of $6,016,950 gross unrealized appreciation and
$815,433 gross unrealized depreciation.
At March 31, 1996, 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 NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus New Jersey Intermediate Municipal Bond Fund, including the statement
of investments, as of March 31, 1996, 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. Our procedures included confirmation of
securities owned as of March 31, 1996 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 New Jersey Intermediate Municipal Bond Fund at March 31,
1996, 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 3, 1996
DREYFUS NEW JERSEY 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 the fiscal year ended March
31, 1996 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are New Jersey residents, New Jersey 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 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[Dreyfus lion "d" logo]
Dreyfus New Jersey 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.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 751AR963
[Dreyfus logo]
New Jersey
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
__________________________________________________
| | | |
| |LEHMAN BROTHERS| |
| PERIOD | 10-YEAR | DREYFUS NEW JERSEY |
| | MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | MUNICIPAL BOND FUND |
|-----------|---------------|---------------------|
| 6/26/92 | 10,000 | 10,000 |
| 3/31/93 | 10,898 | 10,894 |
| 3/31/94 | 11,205 | 11,277 |
| 3/31/95 | 12,048 | 11,891 |
| 3/31/96 | 13,116 | 12,734 |
|-------------------------------------------------|
* Source: Lehman Brothers
