DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus New Jersey
Intermediate Municipal Bond Fund for the 12-month period ended March 31,
1998. Your Fund produced a total return, including share price changes and
dividend income generated, of 8.18%,* and a tax-free distribution rate per
share of 4.30%.**
THE ECONOMY
The United States economy is well on the track to its eighth consecutive
year of expansion. Low interest rates, restrained inflation and plentiful
jobs have driven measures of consumer confidence to record levels. Personal
income has grown strongly over the reporting period and consumer spending,
after a sluggish holiday season, has picked up sharply this year. The
production side of the economy has remained strong as well, although signs of
leveling off were seen early in the year, perhaps due to the economic
problems in Asia. The first effects of the Asian economic crisis were felt at
the end of last year when after-tax corporate profits fell in the fourth
quarter, the first decline since the third quarter of 1996. Balance of Trade
figures for January (the latest data available) provided additional evidence
that the economic difficulties in Asia may be affecting the U.S. economy.
The Federal Reserve Board expects that a reduction in demand for U.S.
exports will result from turmoil in Asia and dampen our domestic economic
growth as a result. Currency devaluations throughout Asia, in turn, have made
imports into the United States less expensive. Cheaper imports and waning
demand for U.S. exports should place additional downward pressure on domestic
prices, helping further to control inflation. The year-long decline in oil
prices has also helped. A restrained rate of inflation, in turn, would ease
some of the strains on the labor market, and help keep labor costs under
control. The upward pressure on wages has been a paramount concern of the Fed
because of the risk it poses for rekindling inflation. Wage costs have been
rising at about 4% over the reporting period, a rate that has significantly
outpaced inflation. New job creation has been strong over the reporting
period with the unemployment rate remaining at or near 25-year lows. Yet
inflation has stayed tame. The Consumer Price Index has risen 1.6% over the
past 12 months and a broader measure of the cost of living, the Gross
Domestic Product Price Deflator, has grown at a 1.4% rate over the last two
quarters of last year. The Producer Price Index was in outright decline over
the reporting period.
Restrained inflation has kept the Fed from increasing interest rates. The
last increase in short-term rates came in March 1997 when the target rate for
Federal Funds was raised by one quarter of a percent to 5.5%. (The Federal
Funds rate is the rate of interest that banks charge one another for
overnight loans.)
Low interest rates have provided a strong fundamental underpinning for
interest rate-sensitive sectors of the economy such as housing. In this case,
the Asian crisis has actually proven a stimulus to consumer spending since
international bond investors have sought the liquidity safety of U.S.
Government securities, causing interest rates to fall. This reduction in
borrowing costs has spurred mortgage refinancing, thus giving consumers
additional spending power. Mortgage rates have been at levels not seen since
the 1960s. The housing market, a critical segment of the economy, has
responded accordingly. New housing starts rose to their highest annual level
in over ten years, while resale rates of existing homes set records during
the reporting period. Overall spending on construction, both residential and
commercial, has been solid.
So far, the economy has remained remarkably robust and inflation-neutral.
We are sensitive to the longevity of this extraordinary economic advance and
are alert to evidence of a potential reversal in direction or an upsurge in
inflation.
MARKET ENVIRONMENT
We believe that it is still too early to draw any conclusions regarding
how much the Asian crisis will impact 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 have been indicative of a strengthening economy,
inflation remains quiescent.
The fixed-income markets are now in the middle of what has historically
been a time of year when prices weaken. March and April are generally large
debt issuance months in all markets. If supply and demand dynamics repeat
their past experience, it is expected that bonds will lose some ground
temporarily. However, we believe that the current environment supports an
outlook for steady monetary policy and well-anchored interest rates. As long
as inflation growth remains low and the pace of consumer demand cools
somewhat this spring, any setback to bonds should not be prolonged.
PORTFOLIO OVERVIEW
Over the past year, the number of new bond issues in the State of New
Jersey was somewhat limited. This reflects the fact that a large percentage
of capital projects in the State have already been financed and most
refundings have been completed. The difficulty in finding value in New Jersey
issues was further exacerbated by two factors: the yield curve remained
extremely flat and the 30-Year U.S. Treasury Bond traded within very narrow
price parameters. Our approach, however, was to keep a constant vigil in the
secondary market. From time to time, yield spreads widened and we were able
to capitalize on a limited supply window. Our objective was to capitalize on
these opportunities in the marketplace should they occur.
Additionally, a small portion of the portfolio's holdings purchased at
the Fund's inception in 1992 had moved within three years of their final
maturity dates. We found it prudent to liquidate these holdings, book the
profit, and reinvest these monies in longer term bonds. From time to time the
Fund purchased bonds of the Commonwealth of Puerto Rico and other territories
of the United States when yield spreads widened proportionately, and then
sold those holdings when spreads tightened. This strategy has been useful and
rewarding in managing the Fund, due to the limitations imposed by the low
volume of in-state issuance and a flat yield curve.
As the year progresses, we will continue to seek the highest yield
possible within the confines of our investment objectives and the
marketplace.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 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, 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
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1998
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW JERSEY
INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX
[Exhibit A:
Dollars
$15,233
Lehman Brothers 10-Year Municipal Bond Index*
$14,305
<TABLE>
<CAPTION>
Dreyfus New Jersey Intermediate Municipal
Bond Fund
*Source: Lehman Brothers]
Average Annual Total Returns
One Year Ended Five Years Ended From Inception (6/26/92)
March 31, 1998 March 31, 1998 to March 31, 1998
<S> <C> <C>
____________________ ____________________ __________________________
8.18% 5.60% 6.41%
</TABLE>
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,
coupled with the potentially longer maturity of the Index, 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, 1998
Principal
Long-Term Municipal Investments-97.3% Amount Value
_____________ _____________
New Jersey-89.9%
Atlantic County Utilities Authority, Sewer Revenue, Refunding
<S> <C> <C>
5%, 1/15/2008 (Insured; AMBAC).......................................... $ 2,580,000 $ 2,676,905
Bayshore Regional Sewer Authority, Subordinated Sewer Revenue:
5.10%, 5/1/2004 (Insured; MBIA)......................................... 1,110,000 1,160,072
5.30%, 4/1/2008 (Insured; MBIA)......................................... 1,000,000 1,065,510
5.40%, 4/1/2009 (Insured; MBIA)......................................... 1,000,000 1,065,370
Brick Township Municipal Utilities Authority, Water and Sewer Revenue,
Refunding
5.10%, 12/1/2009 (Insured; FGIC)........................................ 1,500,000 1,558,725
Burlington County:
5.20%, 10/1/2009........................................................ 2,000,000 2,064,240
Refunding 5.35%, 9/15/2003.............................................. 1,000,000 1,046,680
Camden County Improvement Authority, Revenue:
County Guaranteed Lease:
5.40%, 12/1/2002...................................................... 855,000 900,238
5.85%, 10/1/2006 (Insured; MBIA)...................................... 1,000,000 1,095,680
(Health Services Center) 4.80%, 12/1/2004 (Insured; AMBAC).............. 1,555,000 1,603,205
Camden County Municipal Utilities Authority, County Agreement Sewer Revenue,
Refunding:
5.50%, 7/15/2005 (Insured; FGIC)...................................... 1,000,000 1,071,110
5%, 7/15/2009 (Insured; FGIC)......................................... 2,000,000 2,055,220
Cherry Hill Township, Sewer and Sewer Assessment 5.30%, 9/1/2002............ 1,370,000 1,435,746
Delaware River and Bay Authority, Revenue 5.10%, 1/1/2009 (Insured; FGIC)... 815,000 847,192
Dover Township:
5.80%, 10/15/2001 (Insured; AMBAC)...................................... 1,740,000 1,840,415
5.90%, 10/15/2002 (Insured; AMBAC)...................................... 1,640,000 1,761,803
Township of East Brunswick, Refunding 4.75%, 4/1/2004....................... 1,310,000 1,347,859
Essex County Improvement Authority, Revenue:
(Irvington County School District) 6.10%, 10/1/2001 (Insured; FSA)...... 1,415,000 1,508,772
Lease, Refunding (County Jail and Youth House Project)
5%, 12/1/2009 (Insured; AMBAC)........................................ 1,575,000 1,623,526
Gloucester Township, Refunding 5.20%, 7/15/2004 (Insured; AMBAC)............ 795,000 837,143
Hamilton Township:
General Improvement 5.20%, 9/1/2002 (Insured; FGIC)..................... 600,000 626,238
Sewer Utility 5.20%, 9/1/2002 (Insured; FGIC)........................... 450,000 469,678
Highland Park, Water and Sewer Utility:
6%, 10/15/2003.......................................................... 360,000 386,816
6%, 10/15/2004.......................................................... 470,000 504,207
Hillside Township 6.60%, 2/15/2007 (Insured; MBIA).......................... 1,000,000 1,101,910
City of Hoboken Parking Authority, Parking General Revenue, Refunding:
6.10%, 3/1/2002......................................................... 375,000 399,049
6.20%, 3/1/2003......................................................... 395,000 426,201
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
New Jersey (continued)
Hudson County:
4.75%, 8/1/2003......................................................... $ 500,000 $ 509,760
Vocational School Improvement 5.05%, 10/1/2008 (Insured; FSA)........... 1,010,000 1,054,793
Hudson County Improvement Authority, Solid Waste System Revenue
6.75%, 1/1/2003......................................................... 3,000,000 3,104,820
Hunterdon County, General Improvement 4.25%, 12/15/2007..................... 1,600,000 1,573,680
Jersey City, Water Refunding:
5.20%, 10/1/2008 (Insured; AMBAC)....................................... 1,565,000 1,649,166
5.30%, 10/1/2009 (Insured; AMBAC)....................................... 1,295,000 1,364,308
Lacy Municipal Utilities Authority, Water Revenue:
5.10%, 12/1/2003 (Insured; MBIA)........................................ 1,060,000 1,109,237
5.20%, 12/1/2004 (Insured; MBIA)........................................ 1,215,000 1,280,610
Long Branch Sewerage Authority, Revenue, Refunding:
5%, 6/1/2003 (Insured; FGIC)............................................ 610,000 633,369
5.10%, 6/1/2004 (Insured; FGIC)......................................... 690,000 721,105
Manalapan-Englishtown Regional School District Board of Education (School
Bonds)
5%, 5/1/2004............................................................ 1,950,000 2,029,735
Mercer County Improvement Authority, Revenue, Refunding:
(Special Services School District) 5.30%, 12/15/2002.................... 845,000 888,306
Township Guaranteed (Hamilton Board of Education Lease Project)
5.70%, 6/1/2002 (Insured; MBIA)....................................... 470,000 498,374
Middlesex County Utilities Authority, Sewer Revenue, Refunding
5%, 9/15/2008 (Insured; FGIC)........................................... 1,000,000 1,038,140
Township of Middletown, Refunding 4.90%, 8/1/2004........................... 1,810,000 1,873,603
Monmouth County 5.10%, 10/1/2010............................................ 2,600,000 2,689,024
Monmouth County Improvement Authority, Revenue, Refunding
(Correctional Facilities) 5%, 8/1/2009.................................. 1,500,000 1,555,065
City of Newark Board of Education 5.875%, 12/15/2006 (Insured; MBIA)........ 1,755,000 1,926,762
State of New Jersey:
5.80%, 8/1/2001......................................................... 2,000,000 2,112,520
5.90%, 8/1/2002......................................................... 2,000,000 2,144,260
New Jersey Economic Development Authority:
District Heating and Cooling Revenue (Trenton-Trigen Project)
6.10%, 12/1/2004...................................................... 3,375,000 3,637,474
Economic Growth Revenue:
4.80%, 10/1/2003 (LOC; National Westminster Bank) (a)................. 640,000 657,894
5%, 10/1/2005 (LOC; National Westminster Bank) (a).................... 1,015,000 1,055,194
Market Transition Facility Revenue 7%, 7/1/2004 (Insured; MBIA)......... 2,275,000 2,606,968
Waste Paper Recycling (MPMI Inc. Project) 5.75%, 2/1/2004............... 2,500,000 2,615,275
New Jersey Educational Facilities Authority, Revenue:
College and University:
(Institute of Advanced Study) 6.15%, 7/1/2004 (Prerefunded 7/1/2001) (b) 560,000 599,906
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
New Jersey (continued)
New Jersey Educational Facilities Authority, Revenue (continued):
College and University (continued):
Refunding:
(Princeton Theological):
4.70%, 7/1/2010................................................. $ 880,000 $ 885,755
4.80%, 7/1/2011................................................. 920,000 924,867
4.875%, 7/1/2012................................................ 965,000 969,497
(Ramapo College) 5.15%, 7/1/2004 (Insured; MBIA).................. 1,010,000 1,058,803
(Rowan College) 5.15%, 7/1/2004 (Insured; MBIA)....................... 825,000 864,864
(University of Medicine and Dentistry) 5%, 12/1/2004 (Insured; AMBAC). 5,090,000 5,306,325
Higher Educational Facilities Trust Fund:
5.125%, 9/1/2006 (Insured; AMBAC)..................................... 2,775,000 2,915,138
5.125%, 9/1/2009 (Insured; AMBAC)..................................... 2,000,000 2,077,880
New Jersey Environmental Infrastructure Trust, Waste Water Treatment
5%, 9/1/2007............................................................ 1,820,000 1,899,097
New Jersey Health Care Facilities Financing Authority, Health Care Revenue:
(Allegany Health System-Our Lady of Lourdes Medical Center)
4.80%, 7/1/2005 (Insured; MBIA)....................................... 1,580,000 1,623,703
(Deborah Heart and Lung Center):
5.60%, 7/1/2003....................................................... 1,710,000 1,784,282
5.80%, 7/1/2004....................................................... 745,000 782,094
5.90%, 7/1/2005....................................................... 790,000 836,413
(Mountainside Hospital) 5.10%, 7/1/2003 (Insured; MBIA)................. 1,630,000 1,697,596
Refunding:
(Atlantic City Medical Center) 6.30%, 7/1/2001........................ 3,365,000 3,573,664
(Burdette Tomlin Memorial Hospital) 6%, 7/1/2003 (Insured; FGIC)...... 1,665,000 1,784,131
(Raritan Bay Medical Center) 6.625%, 7/1/2005......................... 2,800,000 3,002,888
(Robert Wood Johnson University Center) 5%, 7/1/2008 (Insured; MBIA).. 1,500,000 1,554,705
(Saint Joseph's Hospital and Medical Center)
5.15%, 7/1/2006 (Insured; Connie Lee)............................. 2,555,000 2,668,212
(West Jersey Health System) 5.45%, 7/1/2002 (Insured; MBIA)........... 2,160,000 2,271,672
New Jersey Higher Education Assistance Authority, Student Loan Revenue:
6.80%, 7/1/2000......................................................... 665,000 693,848
(NJClass Loan Program) 5.60%, 1/1/2001.................................. 930,000 954,905
New Jersey Highway Authority, Senior Parkway Revenue, Refunding
(Garden State Parkway):
5.70%, 1/1/2002....................................................... 500,000 527,335
5.90%, 1/1/2004....................................................... 500,000 536,645
New Jersey Housing and Mortgage Finance Agency, Housing Revenue, Refunding:
6.20%, 11/1/2004........................................................ 4,000,000 4,258,040
6.60%, 11/1/2004........................................................ 3,660,000 3,934,939
New Jersey Sports and Exposition Authority, Convention Center Luxury Tax
Revenue
5.75%, 7/1/2002 (Insured; MBIA)......................................... 2,000,000 2,128,180
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
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 $ 2,626,150
4.875%, 12/15/2008 (Insured; MBIA)...................................... 3,000,000 3,094,560
New Jersey Turnpike Authority, Turnpike Revenue:
5.70%, 1/1/2001 (Insured; AMBAC)........................................ 1,000,000 1,042,730
5.80%, 1/1/2002 (Insured; AMBAC)........................................ 2,230,000 2,358,783
New Jersey Wastewater Treatment Trust:
5.90%, 5/1/2003 (Insured; MBIA)......................................... 1,400,000 1,508,990
Loan Revenue 6.30%, 7/1/2005............................................ 3,595,000 3,884,649
North Brunswick Township 6.30%, 5/15/2006................................... 1,860,000 2,040,271
North Hudson Sewer Authority, Sewer Revenue 5.25%, 8/1/2010 (Insured; FGIC) (c) 3,825,000 3,989,016
North Jersey District Water Supply Commission, Revenue, Refunding...........
(Wanaque South Project) 5.40%, 7/1/2002 (Insured; MBIA)................. 2,795,000 2,936,315
Northeast Monmouth County Regional Sewer Authority, Sewer Revenue, Refunding
5%, 11/1/2010 (Insured; MBIA)........................................... 2,250,000 2,305,688
Ocean City 5%, 4/1/2009 (Insured; FSA)...................................... 1,400,000 1,447,306
Ocean County, General Improvement:
5.30%, 9/1/2003......................................................... 2,115,000 2,233,926
5.125%, 7/1/2004........................................................ 1,000,000 1,047,520
5.65%, 7/1/2005......................................................... 1,600,000 1,734,240
Parsippany - Troy Hills Township, Refunding 6%, 4/1/2004.................... 1,630,000 1,781,476
Passaic County Utilities Authority, SWDR, Refunding:
5%, 3/1/2007............................................................ 1,300,000 1,332,825
5%, 3/1/2008 ........................................................... 1,195,000 1,218,816
City of Perth Amboy Board of Education, COP, Lease Purchase Agreement
(FWB Leasecorp, Inc.) 5.60%, 12/15/2002 (Insured; FSA).................. 1,265,000 1,345,922
Pinelands Regional Board of Education, Refunding COP, Lease Purchase
Agreement
(A & R Hunt Enterprises, Inc.) 5.70%, 2/15/2003 (Insured; FSA).......... 350,000 373,531
Port Authority of New York and New Jersey
(Consolidated Board 101st Series) 5.25%, 9/15/2006 (Insured; MBIA)...... 1,000,000 1,051,520
Township of Roxbury, Water and Sewer Assessment 5.05%, 8/1/2004 (Insured; AMBAC)...... 1,175,000 1,227,981
Rutgers State University, University Revenue, Refunding
(State University of New Jersey) 6.30%, 5/1/2005........................ 2,900,000 3,168,279
South Jersey Port Corp., Marine Terminal Revenue:
5.05%, 1/1/2003......................................................... 835,000 857,077
5.30%, 1/1/2005......................................................... 930,000 968,707
5.40%, 1/1/2006......................................................... 1,010,000 1,057,844
South Jersey Transportation Authority, Transportation System Revenue
5.50%, 11/1/2002 (Insured; MBIA)........................................ 2,000,000 2,116,700
South River School District 5%, 12/1/2008 (Insured; FGIC)................... 1,100,000 1,146,596
Southern Regional High School District 5.50%, 9/1/2011 (Insured; MBIA)...... 1,600,000 1,684,656
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
New Jersey (continued)
Sussex County Municipal Utilities Authority, Wastewater Facilities Revenue,
Refunding
5%, 12/1/2003 (Insured; MBIA)........................................... $ 1,755,000 $ 1,827,745
Trenton 5.25%, 8/1/2002 (Insured; FGIC)..................................... 1,000,000 1,044,770
Warren County Pollution Control Financing Authority, Landfill Revenue, Refunding
5.60%, 12/1/2002........................................................ 1,765,000 1,748,674
Washington Township Board of Education 5.10%, 2/1/2007 (Insured; MBIA)...... 3,100,000 3,250,288
West Deptford Township, Refunding 5.20%, 3/1/2011 (Insured; AMBAC).......... 2,000,000 2,065,960
West Morris Regional High School District Board of Education
5.875%, 1/15/2004....................................................... 250,000 271,638
West Windsor Township, General Improvement:
5.70%, 10/15/2002....................................................... 600,000 627,732
5.90%, 10/15/2003....................................................... 600,000 629,118
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 1,178,198
Western Monmouth Utilities Authority, Revenue, Refunding
5.15%, 2/1/2008 (Insured; AMBAC)........................................ 1,000,000 1,048,370
Woodbridge Township:
5.65%, 8/15/2002........................................................ 1,320,000 1,400,520
6.20%, 8/15/2007........................................................ 2,000,000 2,167,220
U.S. Related -7.4%
Commonwealth of Puerto Rico, Improvement, Refunding
5.30%, 7/1/2004 (Insured; MBIA)......................................... 8,000,000 8,469,760
Puerto Rico Electric Power Authority, Electric Power and Light Revenue
5%, 7/1/2006 (Insured; FSA) (d)......................................... 1,605,000 1,675,427
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 2,100,000 2,211,951
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program/ GO Matching Fund) 5.65%, 10/1/2003...... 2,780,000 2,933,762
Virgin Islands Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes) 7%, 10/1/2002................................ 250,000 275,205
Virgin Islands Water and Power Authority, Water System Revenue 7.20%, 1/1/2002 300,000 313,494
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $199,831,315)..................................................... $209,646,242
=============
Short-Term Municipal Investments-2.7%
New Jersey-1.8%
Port Authority of New York and New Jersey, Special Obligation Revenue,
Refunding,
VRDN 3.70% (SBPA; Morgan Guaranty Trust Co.) (e)........................ $ 1,600,000 $ 1,600,000
Union County Industrial Pollution Control Financing Authority, PCR,
Refunding, VRDN
(Exxon Project) 3.65% (e)............................................... 2,400,000 2,400,000
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Short-Term Municipal Investments (continued) Amount Value
_____________ _____________
U.S. Related-.9%
Commonwealth of Puerto Rico Government Development Bank, Revenue, Refunding,
VRDN 3.375% (LOC; Credit Suisse First Boston; Insured; MBIA) (a,e)...... $ 1,900,000 $ 1,900,000
_____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $5,900,000)....................................................... $ 5,900,000
=============
TOTAL INVESTMENTS-100.0%
(cost $205,731,315)..................................................... $215,546,242
=============
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreement
GO General Obligation SWDR Solid Waste Disposal Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (f) or Moody's or Standard & Poor's Percentage of Value
______ ________ ________________ __________________
<S> <C> <C> <C>
AAA Aaa AAA 57.6%
AA Aa AA 15.3
A A A 14.2
BBB Baa BBB 5.1
BB Ba BB .8
F1 Mig1 SP1 2.7
Not Rated (g) Not Rated (g) Not Rated (g) 4.3
______
100.0%
======
</TABLE>
Notes to Statement of Investments:
(a) Secured by letters of credit.
(b) 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.
(c) Held in segregated account as collateral for delayed-delivery security.
(d) Purchased on a delayed-delivery basis.
(e) Security payable upon demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) 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, 1998
Cost Value
____________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $205,731,315 $215,546,242
Cash....................................... 460,233
Interest receivable........................ 3,081,169
Receivable for shares of Beneficial Interest subscribed 150
Prepaid expenses........................... 92,339
_____________
219,180,133
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 97,635
Payable for investment securities purchased 3,128,063
Payable for shares of Beneficial Interest redeemed 43,992
Accrued expenses and other liabilities..... 67,635
_____________
3,337,325
_____________
NET ASSETS.................................................................. $215,842,808
=============
REPRESENTED BY: Paid-in capital............................ $210,559,500
Accumulated net realized gain (loss) on investments (4,531,619)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4....................... 9,814,927
_____________
NET ASSETS.................................................................. $215,842,808
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 15,611,576
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $13.83
========
See notes to financial statements.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1998
INVESTMENT INCOME
INCOME Interest Income...................... $11,027,901
EXPENSES: Management fee-Note 3(a)............. $ 1,290,972
Shareholder servicing costs-Note 3(b) 325,280
Professional fees.................... 41,315
Trustees' fees and expenses-Note 3(c) 23,445
Custodian fees....................... 21,418
Prospectus and shareholders' reports. 14,613
Registration fees.................... 2,923
Loan commitment fees-Note 2.......... 1,827
Miscellaneous........................ 27,707
____________
Total Expenses................. 1,749,500
Less-reduction in management fee due to
undertaking-Note 3(a)................ (64,873)
____________
Net Expenses................... 1,684,627
____________
INVESTMENT INCOME-NET................................................. 9,343,274
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments $ 490,182
Net unrealized appreciation (depreciation)
on investments................... 7,090,366
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 7,580,548
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $16,923,822
============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1998 March 31, 1997
______________ ______________
OPERATIONS:
Investment income-net............................................. $ 9,343,274 $ 9,883,642
Net realized gain (loss) on investments........................... 490,182 940,342
Net unrealized appreciation (depreciation) on investments......... 7,090,366 (2,476,956)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations. 16,923,822 8,347,028
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (9,343,274) (9,938,876)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold..................................... 28,645,141 40,305,583
Dividends reinvested.............................................. 7,823,118 8,420,257
Cost of shares redeemed........................................... (44,556,034) (59,817,875)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (8,087,775) (11,092,035)
_____________ _____________
Total Increase (Decrease) in Net Assets..................... (507,227) (12,683,883)
NET ASSETS:
Beginning of Period............................................... 216,350,035 229,033,918
_____________ _____________
End of Period..................................................... $215,842,808 $216,350,035
============= =============
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold ...................................................... 2,087,924 3,006,720
Shares issued for dividends reinvested............................ 570,892 627,323
Shares redeemed................................................... (3,255,905) (4,460,526)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding................... (597,089) (826,483)
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<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: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $13.35 $13.44 $13.12 $13.08 $13.28
______ ______ ______ ______ ______
Investment Operations:
Investment income-net........................ .59 .59 .60 .65 .68
Net realized and unrealized gain (loss)
on investments............................. .48 (.08) .32 .04 (.20)
______ ______ ______ ______ ______
Total from Investment Operations............. 1.07 .51 .92 .69 .48
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net......... (.59) (.60) (.60) (.65) (.68)
______ ______ ______ ______ ______
Net asset value, end of period............... $13.83 $13.35 $13.44 $13.12 $13.08
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 8.18% 3.84% 7.09% 5.45% 3.52%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... . .78% .78% .72% .45% .06%
Ratio of net investment income
to average net assets...................... 4.34% 4.43% 4.47% 5.02% 4.97%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .03% - .06% .45% .83%
Portfolio Turnover Rate...................... 6.90% 14.60% 13.69% 35.01% 5.99%
Net Assets, end of period (000's Omitted).... $215,843 $216,350 $229,034 $221,199 $238,292
</TABLE>
See notes to financial statements.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New Jersey Intermediate Municipal Bond Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide investors with as high a level of current income
exempt from Federal and New Jersey income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. 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 $4,422,000
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.
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. During the
period ended March 31, 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, 1997 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, 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 $64,873, during the period ended
March 31, 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 March 31, 1998, the Fund was charged $180,058
pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended March 31, 1998, the Fund was charged $106,239 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. During the period ended March
31, 1998, redemption fees amounted to $108.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1998
amounted to $14,517,445 and $17,873,206, respectively.
At March 31, 1998, accumulated net unrealized appreciation on investments
was $9,814,927, consisting of $9,855,866 gross unrealized appreciation and
$40,939 gross unrealized depreciation.
At March 31, 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 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, 1998, 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, 1998 by corresponden
ce with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New Jersey Intermediate Municipal Bond Fund at March 31,
1998, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[ERNST & YOUNG LLP signature logo]
New York, New York
April 30, 1998
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, 1998 as "exempt-interest dividends" (not generally 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 1998 calendar year
on Form 1099-DIV which will be mailed by January 31, 1999.
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS NEW JERSEY INTERMEDIATE
MUNICIPAL BOND FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 WashingtonStreet
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 751AR983
Registration Mark
[Dreyfus logo]
New Jersey
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1998
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 DREYFUS
BROTHERS NEW JERSEY
PERIOD 10-YEAR INTERMEDIATE
MUNICIPAL MUNICIPAL
BOND INDEX * 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
3/31/98 15,233 14,305
* Source: Lehman Brothers
