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 fiscal year ended March 31, 1997.
Your Fund produced a total return including bond price changes and interest
income of 3.84%.* This is equivalent to an annualized tax-free distribution
rate per share of 4.45%.**
THE ECONOMY
Reacting to an economy which reflects strong growth, low unemployment and
stable prices, the Federal Open Market Committee (FOMC) of the Federal
Reserve Board (the "Fed") raised interest rates at the end of March for the
first time in over two years. Concerned that persistently strong demand would
increase the risk of a resurgence of inflation, the FOMC, which is the
policy-making arm of the Fed, voted to lift the Federal Funds rate by a
quarter of a percentage point to 5.5%. (The Federal Funds rate is the rate
that banks charge each other for overnight loans.) The move to raise interest
rates had been much discussed since early last year when the Fed first became
concerned about the inflationary potential of rising wage demands resulting
from the strong rate of growth in new jobs. Yet over that time, there has
been little evidence of inflation despite robust job growth and an
unemployment rate of less than 5.5%, a level that in the 1970s and 1980s
contributed to an escalation in wages and prices. Instead, prices in
virtually all sectors of the economy have remained quiescent. The Consumer
Price Index has risen a modest 2.8% over the past 12 months, while increases
in producer prices have been equally modest and, of late, many prices have
actually fallen.
Not surprisingly, the consumer confidence index of the Conference Board,
a private research group, remains near all-time high territory. A closely
followed component measures consumer sentiment about the job market. The
percentage of people reporting that jobs are plentiful has recently reached
an eight-year high, while the portion reporting that jobs are hard to get was
the lowest ever recorded. That positive attitude regarding job security has
been cited by Federal Reserve Board Chairman Greenspan as a possible
harbinger of higher wage pressures, which could result in an acceleration in
the rate of inflation.
Looking at the economy more generally, factory production _ particularly
the durable goods sector _ has picked up lately after slumping over the last
two months of last year. Also suggesting renewed vigor in the economy was the
brisk pickup in retail sales from their relatively sluggish pace over the
last quarter of 1996. As a corollary to the surge in retail sales, late
payments on credit card debt have risen to the highest proportion of accounts
since 1980, the year the American Bankers Association first monitored credit
card delinquencies.
Effective monetary policy is formulated less on how conditions are today
than on how things may be in the future; hence the Fed's preemptive move to
tighten credit without significant direct evidence that inflation is already
on the rise is understandable. In recent testimony to Congress made before
the Fed's decision to raise the Federal Funds rate, Fed Chairman Alan
Greenspan said that the question "is not so much . . . where prices are or
have been, but rather what the state of the economy will be later this year
and into 1998 when any actions we may or may not have taken would become
effective." We continue to remain alert to any economic developments that
might indicate a further tightening by the Fed.
MARKET ENVIRONMENT
Last year was marked by a relatively slow start during the first half of
the year followed by a rally which materialized during the second half of the
year. Specifically, long-term interest rates as measured by the 30-year U.S.
Treasury bond stabilized around the 7% level in mid-October, when the market
established a new trading range and rallied to a 6.45% yield at the end of
the year. After a correction in January that lowered bond prices and raised
yields, the market had rebounded to test the 6.50% level. As we moved forward
the market again slid into the 7% range.
The municipal market has gone through periods of stabilization during
which the retail (or individual) investor became active, strengthening the
demand for municipal bonds. The recent credit tightening by the FOMC was in
response to a perceived strengthening of economic data and there is some
speculation that the Fed may tighten credit further in late May. New issues,
however, have kept the municipal bond market relatively stable.
In fact, during the third quarter, $10 billion in new supply had to be
digested by the tax-exempt market in just two weeks. This caused municipal
bond prices to cheapen relative to taxables. Their increase in yields
reversed the trend of outperformance by the municipal market that
characterized most of 1996. But as of March 31, 1997, taxable bonds lost
ground while municipal bonds held more of their value, moving back to
outperformance status. Of course, past performance is no guarantee of future
results.
Specifically in New Jersey, while in recent years the total amount of
bonds issued has been relatively constant from year to year, the proportion
of negotiated issues available for purchase by the Fund has declined, while
the percentage of competitive issues has increased. This condition has helped
enhance the value of many existing Fund holdings and has encouraged us to
maintain a lower cash position in the Fund.
PORTFOLIO OVERVIEW
The Dreyfus New Jersey Intermediate Municipal Bond Fund has maintained a
relatively defensive posture for two reasons: a diminished level of new
issuance in the State, and the erratic nature of the U.S. Treasury bond. The
municipal market has been affected by uncertainty, and trying to forecast
market changes would be difficult at best. As a result, we focused our
efforts on generating income for our shareholders. Also, we purchased a
limited number of new discounted securities which possess liquidity and good
structural characteristics. Our investment strategy included selling short
maturity, callable, current coupon bonds, which allowed the Fund to take
profits.
We will continue to manage the portfolio utilizing this strategy as we
begin the Fund's new fiscal year. The market is not currently offering any
concrete signs of its direction. In fact, it appears that the municipal
market will continue on its lackluster path through the second quarter of
1997. We expect that New Jersey securities will continue to be well sought
after by national funds, as well as other New Jersey bond funds.
Our primary task which will guide our portfolio management decisions is
to earn a high level of current income exempt from Federal and New Jersey
income tax to the extent it is consistent with the preservation of capital,
while at the same time maintaining high credit quality. Included in this
report is a series of detailed statements outlining the portfolio's holdings
and financial condition. We hope you find them informative. Please know that
we greatly appreciate your continued confidence in the portfolio and The
Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1997
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:
$13,800
Lehman Brothers
10-Year Municipal
Bond Index*
Dollars
$13,224
Dreyfus New Jersey
Intermediate Municipal
Bond Fund
*Source: Lehman Brothers]
Average Annual Total Returns
One Year Ended From Inception (6/26/92)
March 31, 1997 to March 31, 1997
____________________ _______________________
3.84% 6.05%
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 9-12 years. The Index does not take into
account charges, fees and other expenses and is not limited to investments
principally in New Jersey municipal obligations. 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>
<CAPTION>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1997
Principal
Long-Term Municipal Investments_96.5% Amount Value
_______ _______
<S> <C> <C>
New Jersey_87.4%
Bayshore Regional Sewer Authority, Subordinated Sewer Revenue:
5.10%, 5/1/2004 (Insured; MBIA)........................................... $ 1,110,000 $ 1,119,468
5.30%, 4/1/2008 (Insured; MBIA)........................................... 1,000,000 1,007,050
5.40%, 4/1/2009 (Insured; MBIA)........................................... 1,000,000 1,005,690
Brick Township Municipal Utilities Authority, Water and Sewer Revenue,
Refunding
5.10%, 12/1/2009 (Insured; FGIC).......................................... 1,500,000 1,459,650
Burlington County:
5.20%, 10/1/2009.......................................................... 2,000,000 1,970,400
Refunding 5.35%, 9/15/2003................................................ 1,000,000 1,022,010
Camden County Improvement Authority, Revenue:
County Guaranteed Lease:
5.40%, 12/1/2002........................................................ 855,000 878,205
5.85%, 10/1/2006 (Insured; MBIA)........................................ 1,000,000 1,053,990
(Health Services Center) 4.80%, 12/1/2004 (Insured; AMBAC)................ 1,555,000 1,538,501
Camden County Municipal Utilities Authority, County Agreement Sewer Revenue,
Refunding:
5.50%, 7/15/2005 (Insured; FGIC)........................................ 1,000,000 1,030,430
5%, 7/15/2009 (Insured; FGIC)........................................... 2,000,000 1,929,520
Cherry Hill Township:
General and Water Assessment 5.30%, 9/1/2002.............................. 1,220,000 1,250,793
Sewer and Sewer Assessment 5.30%, 9/1/2002................................ 150,000 153,786
Delaware River and Bay Authority, Revenue 5.10%, 1/1/2009 (Insured; FGIC)... 815,000 796,288
Dover Township:
5.80%, 10/15/2001 (Insured; AMBAC)........................................ 1,740,000 1,821,362
5.90%, 10/15/2002 (Insured; AMBAC)........................................ 1,640,000 1,731,282
Township of East Brunswick, Refunding 4.75%, 4/1/2004....................... 1,310,000 1,299,625
Essex County Improvement Authority, Revenue:
(Irvington County School District) 6.10%, 10/1/2001 (Insured; FSA)........ 1,415,000 1,497,749
Lease, Refunding (County Jail and Youth House Project)
5%, 12/1/2009 (Insured; AMBAC).......................................... 1,575,000 1,518,316
Gloucester Township, Refunding 5.20%, 7/15/2004 (Insured; AMBAC)............ 795,000 809,167
Hamilton Township:
General Improvement 5.20%, 9/1/2002 (Insured; FGIC)....................... 600,000 612,882
Sewer Utility 5.20%, 9/1/2002 (Insured; FGIC)............................. 450,000 459,661
Highland Park, Water and Sewer Utility:
6%, 10/15/2003............................................................ 360,000 381,182
6%, 10/15/2004............................................................ 470,000 495,794
Hillside Township 6.60%, 2/15/2007 (Insured; MBIA).......................... 1,000,000 1,075,740
City of Hoboken Parking Authority, Parking General Revenue, Refunding:
6.10%, 3/1/2002........................................................... 375,000 390,315
6.20%, 3/1/2003........................................................... 395,000 413,731
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
Hudson County:
4.75%, 8/1/2003........................................................... $ 500,000 $ 489,540
Vocational School Improvement 5.05%, 10/1/2008 (Insured; FSA)............. 1,010,000 990,588
Hudson County Improvement Authority, Solid Waste System Revenue
6.75%, 1/1/2003........................................................... 3,000,000 3,007,200
Hunterdon County, General Improvement:
4.25%, 12/15/2006......................................................... 1,600,000 1,475,408
4.25%, 12/15/2007......................................................... 1,600,000 1,459,680
Jersey City, Water Refunding:
5.20%, 10/1/2008 (Insured; AMBAC)......................................... 1,565,000 1,550,727
5.30%, 10/1/2009 (Insured; AMBAC)......................................... 1,295,000 1,282,995
Lacy Municipal Utilities Authority, Water Revenue:
5.10%, 12/1/2003 (Insured; MBIA).......................................... 1,060,000 1,075,773
5.20%, 12/1/2004 (Insured; MBIA).......................................... 1,215,000 1,233,711
Long Branch Sewerage Authority, Revenue, Refunding:
5%, 6/1/2003 (Insured; FGIC).............................................. 610,000 615,270
5.10%, 6/1/2004 (Insured; FGIC)........................................... 690,000 695,927
Manalapan-Englishtown Regional School District Board of Education (School
Bonds)
5%, 5/1/2004.............................................................. 1,950,000 1,960,881
Mercer County Improvement Authority, Revenue:
Refunding (Special Services School District) 5.30%, 12/15/2002............ 845,000 868,136
Township Guaranteed Refunding (Hamilton Board of Education Lease Project)
5.70%, 6/1/2002 (Insured; MBIA)......................................... 470,000 489,228
Middlesex County Utilities Authority, Sewer Revenue, Refunding
5%, 9/15/2008 (Insured; FGIC)............................................. 1,000,000 976,550
Township of Middletown, Refunding 4.90%, 8/1/2004........................... 1,810,000 1,803,828
Monmouth County 5.10%, 10/1/2010............................................ 2,600,000 2,527,122
City of Newark Board of Education 5.875%, 12/15/2006 (Insured; MBIA)........ 1,755,000 1,854,509
State of New Jersey:
5.80%, 8/1/2001........................................................... 2,000,000 2,091,980
5.90%, 8/1/2002........................................................... 2,000,000 2,110,460
New Jersey Economic Development Authority:
District Heating and Cooling Revenue (Trenton-Trigen Project)
6.10%, 12/1/2004........................................................ 3,375,000 3,491,876
Economic Growth Revenue:
4.80%, 10/1/2003 (LOC; National Westminster Bank) (a)................... 730,000 723,182
5%, 10/1/2005 (LOC; National Westminster Bank) (a)...................... 1,135,000 1,126,476
Market Transition Facility Revenue 7%, 7/1/2004 (Insured; MBIA)........... 2,275,000 2,541,289
Waste Paper Recycling (MPMI Inc. Project) 5.75%, 2/1/2004................. 2,500,000 2,524,225
New Jersey Educational Facilities Authority, Revenue:
College and University (University of Medicine and Dentistry)
5%, 12/1/2004 (Insured; AMBAC).......................................... 5,090,000 5,104,099
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
New Jersey Educational Facilities Authority, Revenue (continued):
Higher Educational Facilities Trust Fund:
5.125%, 9/1/2006 (Insured; AMBAC)....................................... $ 2,775,000 $ 2,774,889
5.125%, 9/1/2009 (Insured; AMBAC)....................................... 2,000,000 1,951,840
(Institute of Advanced Study) 6.15%, 7/1/2004............................. 560,000 591,270
Refunding (Ramapo College) 5.15%, 7/1/2004 (Insured; MBIA)................ 1,010,000 1,021,797
(Rowan College) 5.15%, 7/1/2004 (Insured; MBIA)........................... 825,000 834,636
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 1,551,939
(Deborah Heart and Lung Center Issue):
5.60%, 7/1/2003......................................................... 1,710,000 1,734,385
5.80%, 7/1/2004......................................................... 745,000 759,170
5.90%, 7/1/2005......................................................... 790,000 809,236
(Mountainside Hospital) 5.10%, 7/1/2003 (Insured; MBIA)................... 1,630,000 1,648,549
Refunding:
(Atlantic City Medical Center Issue) 6.30%, 7/1/2001.................... 3,365,000 3,516,560
(Burdette Tomlin Memorial Hospital Issue) 6%, 7/1/2003 (Insured; FGIC).. 1,665,000 1,762,452
(Chilton Memorial Hospital) 4.80%, 7/1/2004............................. 2,120,000 2,051,757
(Raritan Bay Medical Center Issue) 6.625%, 7/1/2005..................... 2,800,000 2,898,784
(Robert Wood Johnson University Center) 5%, 7/1/2008 (Insured; MBIA).... 1,500,000 1,459,020
(Saint Joseph's Hospital and Medical Center)
5.15%, 7/1/2006 (Insured; Connie Lee)................................. 2,555,000 2,517,135
(West Jersey Health System) 5.45%, 7/1/2002 (Insured; MBIA)............. 2,160,000 2,224,800
New Jersey Higher Education Assistance Authority, Student Loan Revenue:
6.80%, 7/1/2000........................................................... 735,000 771,912
(NJClass Loan Program) 5.60%, 1/1/2001.................................... 1,000,000 1,018,490
New Jersey Highway Authority, Senior Parkway Revenue, Refunding
(Garden State Parkway):
5.70%, 1/1/2002......................................................... 500,000 518,335
5.90%, 1/1/2004......................................................... 500,000 526,785
New Jersey Housing and Mortgage Finance Agency, Housing Revenue, Refunding:
6.20%, 11/1/2004.......................................................... 4,000,000 4,151,400
6.60%, 11/1/2004.......................................................... 3,660,000 3,903,536
New Jersey Sports and Exposition Authority, Convention Center Luxury Tax
Revenue
5.75%, 7/1/2002 (Insured; MBIA)........................................... 2,000,000 2,092,280
New Jersey Transportation Trust Fund Authority, Transportation System:
6.25%, 12/15/2003......................................................... 5,315,000 5,718,834
5.125%, 6/15/2007 (Insured; AMBAC)........................................ 2,500,000 2,495,875
4.875%, 12/15/2008 (Insured; MBIA)........................................ 3,000,000 2,895,960
New Jersey Turnpike Authority, Turnpike Revenue:
5.70%, 1/1/2001 (Insured; AMBAC).......................................... 1,000,000 1,034,110
5.80%, 1/1/2002 (Insured; AMBAC).......................................... 2,230,000 2,319,200
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
New Jersey Wastewater Treatment Trust:
5.90%, 5/1/2003 (Insured; MBIA)........................................... $ 1,400,000 $ 1,473,934
Loan Revenue 6.30%, 7/1/2005.............................................. 3,595,000 3,821,773
North Brunswick Township 6.30%, 5/15/2006................................... 1,860,000 1,987,503
North Hudson Sewer Authority, Sewer Revenue 5.25%, 8/1/2010 (Insured; FGIC). 3,825,000 3,754,658
North Jersey District Water Supply Commission, Revenue, Refunding
(Wanaque South Project) 5.40%, 7/1/2002 (Insured; MBIA)................... 2,795,000 2,878,990
Northeast Monmouth County Regional Sewer Authority, Sewer Revenue, Refunding
5%, 11/1/2010 (Insured; MBIA)............................................. 2,250,000 2,154,645
Ocean County, General Improvement:
7.50%, 10/15/2001......................................................... 550,000 613,465
5.30%, 9/1/2003........................................................... 2,115,000 2,170,963
5.125%, 7/1/2004.......................................................... 1,000,000 1,014,430
5.65%, 7/1/2005........................................................... 1,600,000 1,672,208
Parsippany - Troy Hills Township, Refunding 6%, 4/1/2004.................... 1,630,000 1,734,679
City of Perth Amboy Board of Education, COP, Lease Purchase Agreement
(FWB Leasecorp, Inc.) 5.60%, 12/15/2002 (Insured; FSA).................... 1,265,000 1,318,408
Pinelands Regional Board of Education, Refunding COP, Lease Purchase
Agreement
(A & R Hunt Enterprises, Inc.) 5.70%, 2/15/2003 (Insured; FSA)............ 350,000 365,295
Port Authority of New York and New Jersey:
(Consolidated Board 91st Series) 4.70%, 11/15/2004........................ 1,500,000 1,473,450
(Consolidated Board 101st Series) 5.25%, 9/15/2006 (Insured; MBIA)........ 1,000,000 1,004,780
Township of Roxbury, Water and Sewer Assessment 5.05%, 8/1/2004 (Insured; AMBAC) 1,175,000 1,185,305
Rutgers State University, University Revenue, Refunding
(State University of New Jersey) 6.30%, 5/1/2005.......................... 2,900,000 3,108,713
South Jersey Port Corp., Marine Terminal Revenue:
5.05%, 1/1/2003........................................................... 835,000 825,272
5.30%, 1/1/2005........................................................... 930,000 920,849
5.40%, 1/1/2006........................................................... 1,010,000 1,005,182
South Jersey Transportation Authority, Transportation System Revenue
5.50%, 11/1/2002 (Insured; MBIA).......................................... 2,000,000 2,073,220
South River School District 5%, 12/1/2008 (Insured; FGIC)................... 1,100,000 1,084,160
Southern Regional High School District 5.50%, 9/1/2011 (Insured; MBIA)...... 1,600,000 1,602,832
Sussex County Municipal Utilities Authority, Wastewater Facilities Revenue,
Refunding
5%, 12/1/2003 (Insured; MBIA)............................................. 1,755,000 1,771,216
Trenton 5.25%, 8/1/2002 (Insured; FGIC)..................................... 1,000,000 1,023,480
Warren County Pollution Control Financing Authority, Landfill Revenue,
Refunding
5.60%, 12/1/2002.......................................................... 1,765,000 1,682,098
Washington Township Board of Education 5.10%, 2/1/2007 (Insured; MBIA)...... 3,100,000 3,093,862
West Deptford Township, Refunding 5.20%, 3/1/2011 (Insured; AMBAC).......... 2,000,000 1,948,900
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New Jersey (continued)
West Morris Regional High School District Board of Education, School
5.875%, 1/15/2004......................................................... $ 250,000 $ 264,578
West Windsor Township, General Improvement:
5.70%, 10/15/2002......................................................... 600,000 621,552
5.90%, 10/15/2003......................................................... 600,000 623,628
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 1,147,134
Western Monmouth Utilities Authority, Revenue, Refunding
5.15%, 2/1/2008 (Insured; AMBAC).......................................... 1,000,000 993,940
Woodbridge Township:
5.65%, 8/15/2002.......................................................... 1,320,000 1,372,813
6.20%, 8/15/2007.......................................................... 2,000,000 2,086,840
U.S. Related _9.1%
Commonwealth of Puerto Rico, Improvement, Refunding:
5.20%, 7/1/2003........................................................... 2,195,000 2,205,273
5.30%, 7/1/2004 (Insured; MBIA)........................................... 8,000,000 8,190,240
Puerto Rico Highway and Transportation Authority, Highway Revenue, Refunding
5.10%, 7/1/2003 (Insured; MBIA)........................................... 3,000,000 3,042,210
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 2,100,000 2,151,534
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program/ GO Matching Fund) 5.65%, 10/1/2003........ 3,180,000 3,226,587
Virgin Islands Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes) 7%, 10/1/2002.................................. 250,000 266,983
Virgin Islands Water and Power Authority, Water System Revenue 7.20%, 1/1/2002 300,000 309,780
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $202,890,984)....................................................... $205,615,545
=======
Short-Term Municipal Investments_3.5%
New Jersey_2.5%
Port Authority of New York and New Jersey, Port, Airport and Marina Revenue,
Refunding, VRDN:
3.65% (SBPA; Bayerische Landensbank) (b)................................ $ 2,800,000 $ 2,800,000
3.65% (SBPA; Morgan Guaranty Trust Co.) (b)............................. 2,600,000 2,600,000
U.S. Related _1.0%
Commonwealth of Puerto Rico Government Development Bank, Revenue, Refunding,
VRDN
3.10% (LOC; Credit Suisse, Guaranteed; Commonwealth of Puerto Rico) (a,b). 2,000,000 2,000,000
_______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $7,400,000)......................................................... $7,400,000
=======
TOTAL INVESTMENTS_100.0%
(cost $210,290,984)....................................................... $213,015,545
=======
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
Summary of Abbreviations
<S> <C> <S> <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 SBPA Standby Bond Purchase Agreement
GO General Obligation VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
________ ________ _________________ __________________
<S> <C> <C> <C>
AAA Aaa AAA 54.6%
AA Aa AA 16.7
A A A 15.1
BBB Baa BBB 5.0
BB Ba BB .8
F1 Mig1 SP1 3.5
Not Rated (d) Not Rated (d) Not Rated (d) 4.3
____
100.0%
====
</TABLE>
Notes to Statement of Investments:
(a) Secured by letter of credit.
(b) 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.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1997
Cost Value
_______ _______
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $210,290,984 $213,015,545
Cash....................................... 236,987
Interest receivable........................ 3,273,202
Receivable for shares of Beneficial Interest subscribed 150
Prepaid expenses........................... 5,304
_______
216,531,188
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 120,586
Payable for shares of Beneficial Interest redeemed 25
Accrued expenses........................... 60,542
_______
181,153
_______
NET ASSETS.................................................................. $216,350,035
=======
REPRESENTED BY: Paid-in capital............................ $218,647,275
Accumulated net realized gain (loss) on investments (5,021,801)
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4 ....................... 2,724,561
_______
NET ASSETS.................................................................. $216,350,035
=======
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST
AUTHORIZED) ........................................... 16,208,665
NET ASSET VALUE, offering and redemption price per share_Note 3(d).......... $13.35
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $11,615,677
EXPENSES: Management fee_Note 3(a)................... $ 1,339,565
Shareholder servicing costs_Note 3(b)...... 276,809
Professional fees.......................... 39,614
Trustees' fees and expenses_Note 3(c)...... 25,531
Custodian fees............................. 23,241
Prospectus and shareholders' reports....... 8,161
Loan commitment fees_Note 2................ 1,229
Registration fees.......................... 877
Miscellaneous.............................. 27,169
______
Total Expenses....................... 1,742,196
Less_reduction in management fee due to
undertaking_Note 3(a).................. (10,161)
______
Net Expenses......................... 1,732,035
_______
INVESTMENT INCOME_NET....................................................... 9,883,642
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ 940,342
Net unrealized appreciation (depreciation) on investments (2,476,956)
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (1,536,614)
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 8,347,028
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1997 March 31, 1996
________ ________
OPERATIONS:
Investment income_net............................................. $ 9,883,642 $ 10,191,123
Net realized gain (loss) on investments........................... 940,342 105,560
Net unrealized appreciation (depreciation) on investments......... (2,476,956) 5,330,288
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations. 8,347,028 15,626,971
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................. (9,938,876) (10,135,889)
_______ _______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold..................................... 40,305,583 48,864,663
Dividends reinvested.............................................. 8,420,257 8,637,889
Cost of shares redeemed........................................... (59,817,875) (55,158,432)
_______ _______
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (11,092,035) 2,344,120
_______ _______
Total Increase (Decrease) in Net Assets....................... (12,683,883) 7,835,202
NET ASSETS:
Beginning of Period............................................... 229,033,918 221,198,716
_______ _______
End of Period..................................................... $216,350,035 $229,033,918
======= =======
UNDISTRIBUTED INVESTMENT INCOME_NET................................. ___ $ 55,234
_______ _______
Shares Shares
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 3,006,720 3,617,778
Shares issued for dividends reinvested............................ 627,323 639,685
Shares redeemed................................................... (4,460,526) (4,088,326)
_______ _______
Net Increase (Decrease) in Shares Outstanding................... (826,483) 169,137
======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
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 period indicated. This
information has been derived from the Fund's financial statements.
Year Ended March 31,
______________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993(1)
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $13.44 $13.12 $13.08 $13.28 $12.50
____ ____ ____ ____ ____
Investment Operations:
Investment income_net........................ .59 .60 .65 .68 .60
Net realized and unrealized gain (loss)
on investments............................. (.08) .32 .04 (.20) .78
____ ____ ____ ____ ____
Total from Investment Operations............. .51 .92 .69 .48 1.38
____ ____ ____ ____ ____
Distributions:
Dividends from investment income_net......... (.60) (.60) (.65) (.68) (.60)
____ ____ ____ ____ ____
Net asset value, end of period............... $13.35 $13.44 $13.12 $13.08 $13.28
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 3.84% 7.09% 5.45% 3.52% 13.48%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .78% .72% .45% .06% ._
Ratio of net investment income
to average net assets...................... 4.43% 4.47% 5.02% 4.97% 5.27%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... _ .06% .45% .83% 1.10%(2)
Portfolio Turnover Rate...................... 14.60% 13.69% 35.01% 5.99% 32.99%(3)
Net Assets, end of period (000's Omitted).... $216,350 $229,034 $221,199 $238,292 $129,197
(1) From May 27, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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. is the distributor of the Fund's
shares, which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $4,913,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1997. If not
applied, $2,452,000 of the carryover expires in fiscal 2003 and $2,461,000
expires in fiscal 2004.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended March
31, 1997, 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 has undertaken
from April 1, 1996 through March 31, 1998 to reduce the management fee paid
by the Fund, to the extent that the Fund's aggregate annual expenses,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed an annual rate of .80 of 1% of the value of the Fund's
average daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $10,161 during the period ended March 31, 1997.
(B) Under the Shareholder Services Plan, the Fund reimburses Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, an amount not
to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended March 31, 1997, the Fund was charged an aggregate of
$105,127 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. Such
compensation amounted to $118,112 during the period ended March 31, 1997.
(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.
(D) Effective November 4, 1996, a 1% redemption fee is charged on certain
redemptions of Fund shares (including redemption through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended March
31, 1997, redemption fees amounted to $196.
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1997,
amounted to $31,824,678 and $51,779,696, respectively.
At March 31, 1997, accumulated net unrealized appreciation on investments
was $2,724,561, consisting of $3,667,718 gross unrealized appreciation and
$943,157 gross unrealized depreciation.
At March 31, 1997, 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, 1997, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of March 31, 1997 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 New Jersey Intermediate Municipal Bond Fund at March 31,
1997, 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 and Young LLP signature logo]
New York, New York
May 7, 1997
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 its fiscal year ended March
31, 1997 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 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
[Dreyfus lion "d" logo]
Registration Mark
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 751AR973
[Dreyfus logo]
Registration Mark
New Jersey
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1997
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
3/31/97 13,800 13,224
* Source: Lehman Brothers
