DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
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LETTER TO SHAREHOLDERS
Dear Shareholders:
We are pleased to provide you with this report on Dreyfus New Jersey
Intermediate Municipal Bond Fund for the six-month period ended September 30,
1998. Your Fund produced a total return, including share price changes and
dividend income generated, of 3.84%,* and an annualized tax-free distribution
rate per share of 4.18%.**
The Economy
The risk of global recession loomed large by the end of the reporting period.
Since last summer, the international economic crisis has spread from Asia and
Russia into Latin America, and its effects are evident in the U.S., as witnessed
by early signs of a slowing in our domestic economy. Second-quarter gross
domestic product grew at an annual rate of 1.8%, well below the 5.5% rate in the
first quarter, while the trade deficit has continued to widen, affected by
weakening foreign demand and low-priced imports. These developments have
heightened a sense of global economic interdependence and have resulted in a
shift in emphasis by the Federal Reserve Board whereby fighting inflation has
taken a subordinate role to that of maintaining stable U.S. economic growth. As
Fed Chairman Alan Greenspan noted in early September: "It is just not credible
that the United States can remain an oasis of prosperity unaffected by a world
that is experiencing greatly increased stress." On September 29, the Federal
Open Market Committee cut interest rates for the first time since January 1996.
That, and a second quarter-point reduction taking the Federal Funds target rate
to 5% , was designed to cushion the adverse effects of the overseas economic
crisis on the domestic economy. (The Federal Funds rate is the interest rate
that banks charge each other for overnight loans.)
So far, shock waves from the overseas economic turmoil have been dampened by
the continued propensity of U.S. consumers to spend. In the first half of the
year, their spending outpaced earned income, an unsustainable phenomenon, yet a
telling indicator of the level of consumer optimism. The reasons for such
optimism are no surprise. Inflation remains tame, running at an annual rate
comfortably below 2%. After-tax income is growing: by the end of the reporting
period, wages had increased year-to-year at a 4% annual rate, resulting in
strong gains in real income for workers. Finally, and of great economic and
psychological importance to consumers, jobs are plentiful; the unemployment rate
has been at or near 30-year lows throughout the reporting period and new jobs
have been created at a robust pace.
While the corporate sector wrestles with the economic implications of global
developments, consumers have powered the economy. The consumer sector comprises
two thirds of the activity in the $8-trillion U.S. economy and, with the
business sector slowing (corporate profits declined in the second quarter for
the first time in nearly a decade) , any significant pullback in household
spending could trigger a recession. Up to now, the spillover effect from
developments abroad has been largely confined to the manufacturing sector, whose
activity has contracted of late due to the falloff in export demand. Aside from
this "erosion at the edges," as Chairman Greenspan describes it, layoffs on a
broader scale -- a factor that could weaken consumer resolve to spend -- so far
have not occurred. It is clear that the Fed is concerned about the possibility
of worldwide recession. The October interest rate reduction was another step by
the Fed to mitigate the domestic effects of international financial turmoil, and
a gesture meant to serve notice to the world of the seriousness of its purpose.
The Market Environment
We believe that it is still too early to draw any conclusions regarding the
ultimate depth of the Asian crisis and its impact on the U.S. economy. Until a
clearer picture emerges from Asia, we believe investors will continue to find
fixed-income investments attractive. The still strong and expanding economy
would normally be a cause for concern to inflation watchers; however, it is
generally believed that the Fed will refrain from taking any interest rate
actions that could exacerbate the Asian situation. While the most recent
economic and employment data has been indicative of a strengthening economy,
inflation remains quiescent.
During the period, the municipal bond market has settled into a narrow,
well-defined trading range, which makes it increasingly difficult to
advantageously sell municipal securities and reinvest the proceeds at will.
Domestic interest rates over a broad range of maturities have remained flat for
most of the period, with bond prices generally rising while interest rates
generally remain lower. There are, however, more global reasons for this
constraint -- primarily, the Russian economic crisis, various problems of
emerging nations yet to be resolved, and substantive policies necessary to
restimulate the Japanese economy yet to take hold. Due to the unsettled nature
of these economies and their effects on world trade, it is likely that the U.S.
economy will slow from its current pace over the next several quarters.
Portfolio Focus
Since the outset of the six-month period which ended September 30, 1998, the
Dreyfus New Jersey Intermediate Municipal Bond Fund assumed a relatively
pragmatic approach with the portfolio. The Fund focused on extending its average
maturity gradually as the period began. By the end of the first fiscal quarter,
it was apparent that the municipal market's direction was unclear and at times
was fraught with uncertainty. We felt that attempting to predict the timing of
the ebb and flow of these market changes would be difficult at best. As a
counterbalance, we focused our efforts on buying discount bonds and also
purchasing higher coupon municipal securities. These actions helped the Fund to
better weather the volatile market environment.
We will continue to manage the portfolio utilizing a conservative approach,
with an eye toward identifying value in the New Jersey marketplace. The Fund is
currently well balanced across its coupon and maturity range and is well
positioned to weather the underlying crosscurrents. It is entirely possible that
the market may again see periods of volatility, although at present, the bond
market is gaining positive momentum as a result of the equity market's woes and
declining interest rates. Additionally, the portfolio is benefiting from the
demand for New Jersey securities, which are well sought-after by national funds,
as well as other New Jersey bond funds.
Our primary tasks which will guide our portfolio management decisions are to
earn a high level of current income to the extent it is consistent with the
preservation of capital while maintaining the Fund' s high credit quality.
Included in this report is a series of detailed statements outlining the
portfolio' s holdings and financial condition. We hope they are 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
October 16, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
Income is subject to state and local taxes for non-New Jersey residents.
** 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. Some income may be subject to
the Federal Alternative Minimum Tax (AMT) for certain shareholders.
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--96.3% Amount Value
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_____________ _____________
<S> <C> <C>
New Jersey--89.0%
Atlantic County Utilities Authority, Sewer Revenue, Refunding
5%, 1/15/2009 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,760,000 $ 2,943,982
Bayshore Regional Sewer Authority, Subordinated Sewer Revenue:
5.10%, 5/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,110,000 1,179,963
5.30%, 4/1/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,093,960
5.40%, 4/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,095,730
Brick Township Municipal Utilities Authority, Water and Sewer Revenue, Refundin
5.10%, 12/1/2009 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,604,535
Burlington County:
5.20%, 10/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,092,700
Refunding 5.35%, 9/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,057,390
Camden County Improvement Authority, Revenue:
County Guaranteed Lease:
5.40%, 12/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 855,000 907,753
5.85%, 10/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,113,340
(Health Services Center) 4.80%, 12/1/2004 (Insured; AMBAC) . . . . . . . . . . . . . . . 1,555,000 1,634,056
Camden County Municipal Utilities Authority, County Agreement Sewer Revenue,
Refunding:
5.50%, 7/15/2005 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,093,660
5%, 7/15/2009 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,200,000 3,387,584
Cherry Hill Township, Sewer and Sewer Assessment 5.30%, 9/1/2002 . . . . . . . . . . . . . 1,370,000 1,448,487
Delaware River and Bay Authority, Revenue 5.10%, 1/1/2009 (Insured; FGIC). . . . . . . . . 815,000 872,832
Delaware River Port Authority, Port, Airport and Marina Revenue,
(Port District Project):
5%, 1/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,195,000 1,276,917
5%, 1/1/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,255,000 2,408,926
Dover Township 5.90%, 10/15/2002 (Insured; AMBAC). . . . . . . . . . . . . . . . . . . . . 1,640,000 1,773,939
Township of East Brunswick, Refunding 4.75%, 4/1/2004. . . . . . . . . . . . . . . . . . . 1,310,000 1,371,609
Essex County Improvement Authority, Revenue Lease Refunding
(County Jail and Youth House Project) 5%, 12/1/2009 (Insured; AMBAC) . . . . . . . . . . 1,575,000 1,678,997
Gloucester Township, Refunding 5.20%, 7/15/2004 (Insured; AMBAC) . . . . . . . . . . . . . 795,000 851,683
Greenwich Township Board of Education, 5%, 1/15/2011 (Insured; FSA). . . . . . . . . . . . 1,015,000 1,061,365
Hamilton Township:
General Improvement 5.20%, 9/1/2002 (Insured; FGIC) . . . . . . . . . . . . . . . . . . 600,000 629,976
Sewer Utility 5.20%, 9/1/2002 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . 450,000 472,482
Highland Park, Water and Sewer Utility:
6%, 10/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,000 389,124
6%, 10/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470,000 506,895
Hillside Township 6.60%, 2/15/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . 1,000,000 1,103,450
City of Hoboken Parking Authority, Parking General Revenue, Refunding:
6.10%, 3/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375,000 400,230
6.20%, 3/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395,000 428,804
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
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_____________ _____________
New Jersey (continued)
Hudson County:
4.75%, 8/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 $ 516,650
Vocational School Improvement 5.05%, 10/1/2008 (Insured; FSA) . . . . . . . . . . . . . 1,010,000 1,083,366
Hudson County Improvement Authority, Solid Waste System Revenue
6.75%, 1/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,121,380
Jersey City, Water Refunding:
5.20%, 10/1/2008 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,565,000 1,698,541
5.30%, 10/1/2009 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,295,000 1,409,077
Lacy Municipal Utilities Authority, Water Revenue:
5.10%, 12/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,060,000 1,126,367
5.20%, 12/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,215,000 1,303,209
Long Branch Sewerage Authority, Revenue, Refunding:
5%, 6/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 610,000 642,220
5.10%, 6/1/2004 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 690,000 732,980
Manalapan-Englishtown Regional School District Board of Education (School Bonds
5%, 5/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,950,000 2,065,206
Mercer County Improvement Authority, Revenue, Refunding:
(Special Services School District) 5.30%, 12/15/2002 . . . . . . . . . . . . . . . . . . 845,000 897,027
Township Guaranteed (Hamilton Board of Education Lease Project)
5.70%, 6/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 470,000 501,039
Middlesex County Utilities Authority, Sewer Revenue, Refunding
5%, 9/15/2008 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,066,510
Township of Middletown, Refunding 4.90%, 8/1/2004. . . . . . . . . . . . . . . . . . . . . 1,810,000 1,906,944
Manalpan-Englishtown Regional Board of Education, School
5%, 12/1/2008 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,130,000 1,215,281
Monmouth County 5.10%, 10/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600,000 2,770,508
Monmouth County Improvement Authority, Revenue, Refunding
(Correctional Facilities) 5%, 8/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,597,935
Montville Township, General Improvement, Refunding 4.65%, 8/15/2009. . . . . . . . . . . . 1,190,000 1,236,208
City of Newark Board of Education 5.875%, 12/15/2006 (Insured; MBIA) . . . . . . . . . . . 1,755,000 1,962,160
State of New Jersey 5.90%, 8/1/2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,156,120
New Jersey Economic Development Authority, Revenue:
District Heating and Cooling (Trenton-Trigen Project) 6.10%, 12/1/2004 . . . . . . . . . 3,375,000 3,663,799
Economic Growth Revenue:
4.80%, 10/1/2003 (LOC; National Westminister Bank) . . . . . . . . . . . . . . . . . . 640,000 664,032
5%, 10/1/2005 (LOC; National Westminister Bank) . . . . . . . . . . . . . . . . . . . 1,015,000 1,071,069
Market Transition Facility Revenue 7%, 7/1/2004 (Insured; MBIA) . . . . . . . . . . . . 2,275,000 2,630,673
(Trenton Office Complex) 5.25%, 6/15/2009 (Insured; FSA) . . . . . . . . . . . . . . . . 2,500,000 2,723,225
Waste Paper Recycling (MPMI Inc. Project) 5.75%, 2/1/2004 . . . . . . . . . . . . . . . 2,500,000 2,601,975
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
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_____________ _____________
New Jersey (continued)
New Jersey Educational Facilities Authority, Revenue:
College and University:
(Institute of Advanced Study) 6.15%, 7/1/2004 (Prerefunded 7/1/2001) (a) . . . . . . . $ 560,000 $ 601,765
Refunding:
(Princeton Theological):
4.70%, 7/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 880,000 915,306
4.80%, 7/1/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920,000 956,717
4.875%, 7/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 965,000 1,001,776
(Ramapo College) 5.15%, 7/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . 1,010,000 1,076,307
(Saint Peter's College) 5%, 7/1/2008. . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,294,754
(Rowan College) 5.15%, 7/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . 825,000 879,161
(University of Medicine and Dentistry) 5%, 12/1/2004 (Insured; AMBAC) . . . . . . . . 5,090,000 5,404,155
Higher Educational Facilities Trust Fund:
5.125%, 9/1/2006 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,775,000 2,991,866
5.125%, 9/1/2009 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,140,380
New Jersey Environmental Infrastructure Trust, Waste Water Treatment
5%, 9/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,820,000 1,956,063
New Jersey Health Care Facilities Financing Authority, Health, Hospital and
Nursing
Home Revenue:
(Deborah Heart and Lung Center Issue):
5.60%, 7/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,710,000 1,796,936
5.80%, 7/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745,000 789,290
5.90%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,000 843,609
(Mountainside Hospital) 5.10%, 7/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . 1,630,000 1,720,889
Refunding:
(Burdette Tomlin Memorial Hospital) 6%, 7/1/2003 (Insured; FGIC) . . . . . . . . . . . 1,665,000 1,788,426
(Rahway Hospital Obligated Group) 5%, 8/1/2008 . . . . . . . . . . . . . . . . . . . . 2,000,000 2,070,920
(Raritan Bay Medical Center) 6.625%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . 2,800,000 2,972,144
(Robert Wood Johnson University Center) 5%, 7/1/2008 (Insured; MBIA) . . . . . . . . . 1,500,000 1,593,060
(Saint Joseph's Hospital and Medical Center)
5.15%, 7/1/2006 (Insured; Connie Lee) . . . . . . . . . . . . . . . . . . . . . . . 2,555,000 2,727,105
(West Jersey Health System) 5.45%, 7/1/2002 (Insured; MBIA) . . . . . . . . . . . . . 2,160,000 2,286,922
New Jersey Higher Education Assistance Authority, Student Loan Revenue:
6.80%, 7/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 630,000 659,742
(NJ Class Loan Program) 5.60%, 1/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . 895,000 921,062
New Jersey Highway Authority, Senior Parkway Revenue, Refunding
(Garden State Parkway):
5.70%, 1/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 529,330
5.90%, 1/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 539,615
New Jersey Housing and Mortgage Finance Agency, Housing Revenue, Refunding:
6.20%, 11/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,291,320
6.60%, 11/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,660,000 3,942,515
New Jersey Sports and Exposition Authority, Convention Center Luxury Tax Revenu
5.75%, 7/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,141,940
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
New Jersey (continued)
New Jersey Transportation Trust Fund Authority, Transportation System:
5.125%, 6/15/2007 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000 $ 2,699,925
4.875%, 12/15/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,190,890
New Jersey Wastewater Treatment Trust:
5.90%, 5/01/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,400,000 1,526,308
Loan Revenue 6.30%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,595,000 3,889,431
North Brunswick Township 6.30%, 5/15/2006. . . . . . . . . . . . . . . . . . . . . . . . . 1,860,000 2,053,459
North Hudson Sewer Authority, Sewer Revenue 5.25%, 8/1/2010 (Insured; FGIC). . . . . . . . 3,825,000 4,106,291
North Jersey District Water Supply Commission, Revenue, Refunding
(Wanaque South Project) 5.40%, 7/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . 2,795,000 2,959,402
Northeast Monmouth County Regional Sewer Authority, Sewer Revenue, Refunding
5%, 11/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250,000 2,379,600
Ocean County, General Improvement:
5.30%, 9/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,115,000 2,261,443
5.125%, 7/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,065,970
5.65%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000 1,769,216
Parsippany--Troy Hills Township, Refunding 6%, 4/1/2004. . . . . . . . . . . . . . . . . . 1,630,000 1,805,274
Passaic County Utilities Authority, SWDR, Refunding:
5%, 3/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000 1,364,402
5%, 3/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,195,000 1,247,233
City of Perth Amboy Board of Education, COP, Lease Purchase Agreement
(FWB Leasecorp,Inc.) 5.60%, 12/15/2002 (Insured; FSA) . . . . . . . . . . . . . . . . . 1,265,000 1,357,535
Pinelands Regional Board of Education, Refunding COP, Lease Purchase Agreement
(A & R Hunt Enterprises, Inc.) 5.70%, 2/15/2003 (Insured; FSA) . . . . . . . . . . . . . 350,000 377,213
Port Authority of New York and New Jersey
(Consolidated Board 101st Series) 5.25%, 9/15/2006 (Insured; MBIA) . . . . . . . . . . . 1,000,000 1,075,590
Township of Roxbury, Water and Sewer Assessment 5.05%, 8/1/2004 (Insured; AMBAC) . . . . . 1,175,000 1,250,224
Rutgers State University, University Revenue, Refunding
(State University of New Jersey) 6.30%, 5/1/2005 . . . . . . . . . . . . . . . . . . . . 2,900,000 3,180,169
South Jersey Port Corp., Marine Terminal Revenue:
5.05%, 1/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835,000 870,087
5.30%, 1/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 930,000 987,800
5.40%, 1/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,010,000 1,074,630
South Jersey Transportation Authority, Transportation System Revenue
5.50%, 11/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,134,900
South River School District 5%, 12/1/2008 (Insured; FGIC). . . . . . . . . . . . . . . . . 1,100,000 1,181,114
Southern Regional High School District 5.50%, 9/1/2011 (Insured; MBIA) . . . . . . . . . . 1,600,000 1,736,032
Sussex County Municipal Utilities Authority, Wastewater Facilities Revenue,
Refunding
5%, 12/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,755,000 1,856,702
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
New Jersey (continued)
Warren County Pollution Control Financing Authority, Landfill Revenue, Refundin
5.60%, 12/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,765,000 $ 1,760,182
Washington Township Board of Education 5.10%, 2/1/2007 (Insured; MBIA) . . . . . . . . . . 3,100,000 3,340,684
West Deptford Township, Refunding 5.20%, 3/1/2011 (Insured; AMBAC) . . . . . . . . . . . . 2,000,000 2,136,540
West Morris Regional High School District Board of Education
5.875%, 1/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 274,828
West Windsor Township, General Improvement:
5.70%, 10/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 627,918
5.90%, 10/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 629,652
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 1,190,396
Western Monmouth Utilities Authority, Revenue, Refunding
5.15%, 2/1/2008 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,075,050
Woodbridge Township:
5.65%, 8/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,320,000 1,410,842
6.20%, 8/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,182,240
U.S. Related--7.3%
Commonwealth of Puerto Rico, Improvement, Refunding
5.30%, 7/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 8,629,360
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002 . . . . . . . . . . . . . . . . . . . 2,100,000 2,224,509
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program/ GO Matching Fund) 5.65%, 10/1/2003 . . . . . . . . . . . 2,780,000 2,898,650
Virgin Islands Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes):
7%, 10/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 280,335
5.50%, 10/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,615,995
Virgin Islands Water and Power Authority, Water System Revenue 7.20%, 1/1/2002 . . . . . . 300,000 313,848
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $197,153,838) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $210,068,814
=============
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Short-Term Municipal Investments--1.9% Amount Value
- -------------------------------------------------------
_____________ _____________
New Jersey;
Port Authority of New York and New Jersey, Special Obligation Revenue,
Refunding,
VRDN 4.25% (SBPA; Landesbank Hessen-Thuringen) (b)
(cost $4,000,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000,000 $ 4,000,000
=============
TOTAL INVESTMENTS
(cost $201,153,838) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.2% $214,068,814
======= =============
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8% $ 4,006,661
======= =============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $218,075,475
======= =============
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance SWDR Solid Waste Disposal Revenue
GO General Obligation VRDN Variable Rate Demand Notes
LOC Letter of Credit
Summary of Combined Ratings
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
_______ ________ _________________ ___________________
AAA Aaa AAA 58.0%
AA Aa AA 14.4
A A A 12.7
BBB Baa BBB 8.0
B B B .8
F1 Mig1 SP1 1.9
Not Rated (c) Not Rated (c) Not Rated (c) 4.2
_______
100.0%
=======
Notes to Statements of Investments:
- -----------------------------------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Securities payable on demand. Variable rate interest-- subject to periodic
change.
(c) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $201,153,838 $214,068,814
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,008,975
Interest receivable . . . . . . . . . . . . . . . . . . . 3,083,835
Receivable for shares of Beneficial Interest subscribed . . 10,490
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 68,911
_____________
218,241,025
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 104,529
Accrued expenses . . . . . . . . . . . . . . . . . . . . 61,021
_____________
165,550
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $218,075,475
=============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $209,126,197
Accumulated net realized gain (loss) on investments . . . (3,965,698)
Accumulated gross unrealized appreciation on investments . 12,914,976
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $218,075,475
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) . . . . . . 15,507,418
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $14.06
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $5,430,885
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 646,629
Shareholder servicing costs--Note 3(b) . . . . . . . . . 217,439
Professional fees . . . . . . . . . . . . . . . . . . . . 19,078
Trustees' fees and expenses--Note 3(c) . . . . . . . . . 11,942
Prospectus and shareholders' reports . . . . . . . . . . 11,116
Custodian fees . . . . . . . . . . . . . . . . . . . . . 10,296
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 786
Registration fees . . . . . . . . . . . . . . . . . . . . 777
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 11,422
___________
Total Expenses . . . . . . . . . . . . . . . . . . 929,485
Less--reduction in management fee due to
undertaking--Note 3(a) . . . . . . . . . . . . . . . . (66,527)
___________
Net Expenses . . . . . . . . . . . . . . . . . . . 862,958
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,567,927
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ 565,921
Net unrealized appreciation (depreciation) on investments . . 3,100,049
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 3,665,970
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $8,233,897
===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1998 Year Ended
(Unaudited) March 31, 1998
__________________ _______________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,567,927 $ 9,343,274
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . 565,921 490,182
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . 3,100,049 7,090,366
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . 8,233,897 16,923,822
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,567,927) (9,343,274)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,751,030 28,645,141
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,835,857 7,823,118
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,020,190) (44,556,034)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . . . . (1,433,303) (8,087,775)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . 2,232,667 (507,227)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,842,808 216,350,035
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $218,075,475 $215,842,808
============= =============
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,281,588 2,087,924
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . 276,525 570,892
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,662,271) (3,255,905)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . . . . (104,158) (597,089)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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.
Six Months Ended
September 30, 1998 Year Ended March 31,
_________________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . $13.83 $13.35 $13.44 $13.12 $13.08 $13.28
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . .29 .59 .59 .60 .65 .68
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . .23 .48 (.08) .32 .04 (.20)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . .52 1.07 .51 .92 .69 .48
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . (.29) (.59) (.60) (.60) (.65) (.68)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . $14.06 $13.83 $13.35 $13.44 $13.12 $13.08
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . . . . . . 7.66%(1) 8.18% 3.84% 7.09% 5.45% 3.52%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . .80%(1) .78% .78% .72% .45% .06%
Ratio of net investment income
to average net assets . . . . . . . . . 4.24%(1) 4.34% 4.43% 4.47% 5.02% 4.97%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . .06%(1) .03% -- .06% .45% .83%
Portfolio Turnover Rate . . . . . . . . . . 12.59%(2) 6.90% 14.60% 13.69% 35.01% 5.99%
Net Assets, end of period (000's Omitted) . $218,075 $215,843 $216,350 $229,034 $221,199 $238,292
- -----------------------------
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New Jersey Intermediate Municipal Bond Fund (the "Fund") is registered
under the Investment Company Act of 1940, as amended (the "Act" ) as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide investors with as high a level of current income exempt
from Federal and New Jersey income taxes as is consistent with the preservation
of capital. The Dreyfus Corporation (the "Manager" ) serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. is the distributor of the Fund's shares,
which are sold to the public without a sales charge.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the Fund receives net earnings based on available cash balances left
on deposit.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(d) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund has an unused capital loss carryover of approximately $4,422,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1998. If not
applied, $1,961,000 of the carryover expires in fiscal 2003 and $2,461,000
expires in fiscal 2004.
NOTE 2--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (" Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
September 30, 1998, the Fund did not borrow under the Facility.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .60 of 1% of the value of the Fund's average
daily net assets and is payable monthly. The Manager had undertaken from April
1, 1998 through September 30, 1998 to reduce the management fee paid by the
Fund, to the extent that the Fund's aggregate annual expenses, exclusive of
taxes, brokerage, interest on borrowings, commitment fees and extraordinary
expenses, exceeded an annual rate of .80 of 1% of the value of the Fund's
average daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $66,527, during the period ended September 30, 1998.
(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
September 30, 1998, the Fund was charged $140,864 pursuant to the Shareholder
Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended September 30, 1998, the Fund was charged $49,940 pursuant to the transfer
agency agreement.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to a
specified effective date and the redemption or exchange occurs less than fifteen
days following the date of issuance.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended September 30, 1998,
amounted to $26,680,072 and $29,849,821, respectively.
At September 30, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
[dreyfus lion "d" logo] (reg.tm)
[dreyfus logo] (reg.tm)
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. 751SA989
New Jersey
Intermediate
Municipal
Bond Fund
Semi-Annual
Report
September 30, 1998
