Dreyfus
New Jersey Intermediate
Municipal Bond Fund
ANNUAL REPORT March 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Financial Highlights
18 Notes to Financial Statements
22 Report of Independent Auditors
23 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus New Jersey
Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus New Jersey Intermediate
Municipal Bond Fund, covering the 12-month period from April 1, 1999 through
March 31, 2000. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Joseph Darcy.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates five times during the reporting period, for a total increase of 125 basis
points. While higher interest rates led to an erosion of municipal bond prices
during the first half of the reporting period, the overall market showed renewed
signs of strength during the first quarter of 2000.
Municipal bonds were also influenced by supply-and-demand considerations. These
technical influences have caused the yields of tax-exempt bonds to rise to very
attractive levels compared to the after-tax yields of taxable bonds of
comparable maturity and credit quality. This is especially true for investors in
the higher federal and state income tax brackets.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus New Jersey Intermediate Municipal Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus New Jersey Intermediate Municipal Bond Fund perform during the
period?
The fund produced a -0.09% total return(1) over the 12-month period ended March
31, 2000, compared to a total return of -0.72% for the Lipper Other States
Intermediate Municipal Debt Funds category average.(2)
We attribute the fund's absolute negative performance to a rising interest-rate
environment during the second half of 1999, which caused most municipal bond
prices to decline, followed by a market rebound during the first quarter of 2000
which helped offset most of the previous decline.
What is the fund's investment approach?
The fund' s objective is to seek as high a level of income exempt from federal
and New Jersey state income taxes as is consistent with the preservation of
capital. We also seek to provide a competitive total return consistent with this
income objective.
In pursuing these goals, we employ two primary strategies. First, we evaluate
interest-rate trends and supply-and-demand factors in the bond market. Based on
that assessment, we select the individual intermediate-term, tax-exempt bonds
that we believe are most likely to provide the highest returns with the least
risk. We look at such criteria as the bond' s yield, price, age, the
creditworthiness of its issuer, and any provisions for early redemption.
Second, we actively manage the portfolio's average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase temporarily, we may reduce the portfolio's average duration to make
cash available for the purchase of higher The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
yielding securities. Conversely, if we expect demand for municipal bonds to
surge at a time when we anticipate little issuance, we may increase the
portfolio' s average duration to maintain current yields for as long as
practical.
What other factors influenced the fund's performance?
Although the fund's performance was hurt by a difficult investment environment
during much of the reporting period, the first quarter of 2000 provided better
market conditions and a market rally.
When the reporting period began on April 1, 1999, investors had become concerned
that strong economic growth might rekindle long-dormant inflationary pressures.
In an attempt to forestall a reacceleration of inflation, the Federal Reserve
Board raised short-term interest rates five times during the 12-month reporting
period, for a total increase of 125 basis points since last summer, causing most
bond prices to fall.
Municipal bond prices also fell during 1999 because of adverse supply-and-demand
influences. For a variety of reasons, institutional investors participated less
in the tax-exempt market. Despite strong demand from individual investors, the
absence of institutional buyers helped reduce overall demand and drove municipal
bond prices down. During the first quarter of 2000, however, issuance of
municipal bonds in New Jersey declined approximately 20% compared to the same
period one year ago. This supply reduction, combined with robust demand from
individual investors, helped support a rebound of municipal bond prices,
especially among longer term bonds, from which the fund benefited.
What is the fund's current strategy?
We have continued to upgrade the portfolio in an attempt to improve credit
quality and performance. To that end, we have gradually reduced the number of
issuers in the portfolio, choosing to hold fewer, larger blocks of bonds from
well-known, highly rated New Jersey issuers rather than numerous smaller
holdings from lesser known, lower rated issuers.
We have found a number of opportunities for upgrading through bonds issued to
finance essential services projects, such as water and sewer facilities, as well
as the general obligation bonds of local issuers.
In addition, we have recently begun to modestly extend the portfolio's average
duration. This is in contrast to our strategy during 1999, when we maintained a
relatively short average duration in order to avoid the brunt of the price
erosion that typically accompanies rising interest rates. Now that we believe
the bulk of the Federal Reserve Board's rate hikes are behind us, and that the
market has already discounted any modest interest-rate increases in the near
future, we have become more comfortable with the risks inherent in bonds
offering higher yields and marginally longer maturities. In fact, because of
unusual supply-and-demand factors in the U.S. Treasury securities market, some
longer term municipal bonds at times provided yields that are comparable to U.S.
Treasury bonds with similar maturity structures. A longer average duration
should help us lock in today's relatively high yields if the market continues to
rally.
April 12, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-NEW JERSEY RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF
ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
<TABLE>
<CAPTION>
FUND PERFORMANCE
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
--------------------------------------------------------------------------------
Average Annual Total Returns AS OF 3/31/00
Inception From
Date 1 Year 5 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FUND 6/26/92 (0.09%) 4.77% 5.38%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS NEW JERSEY
INTERMEDIATE MUNICIPAL BOND FUND ON 6/26/92 (INCEPTION DATE) TO A $10,000
INVESTMENT MADE IN THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX ON THAT
DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 6/30/92 IS USED AS THE
BEGINNING VALUE ON 6/26/92. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND INVESTS PRIMARILY IN NEW JERSEY MUNICIPAL SECURITIES AND MAINTAINS A
PORTFOLIO WITH A WEIGHTED-AVERAGE MATURITY RANGING BETWEEN 3 AND 10 YEARS. THE
FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES.
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS
PRINCIPALLY IN NEW JERSEY MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND
INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR
THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 10-YEAR TAX-EXEMPT BOND
MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 9-12 YEARS. THESE
FACTORS, COUPLED WITH THE POTENTIALLY LONGER MATURITY OF THE INDEX, CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
March 31, 2000
Principal
LONG-TERM MUNICIPAL INVESTMENTS--95.4% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--89.6%
Atlantic County Utilities Authority, Sewer Revenue
<S> <C> <C>
5%, 1/15/2009 (Insured; AMBAC) 2,760,000 2,745,262
Bayshore Regional Sewer Authority, Subordinated Sewer Revenue:
5.10%, 5/1/2004 (Insured; MBIA) 1,110,000 1,122,254
5.30%, 4/1/2008 (Insured; MBIA) 1,000,000 1,017,930
5.40%, 4/1/2009 (Insured; MBIA) 1,000,000 1,021,810
Brick Township Municipal Utilities Authority, Water and Sewer
Revenue 5.10%, 12/1/2009 (Insured; FGIC) 1,500,000 1,502,490
Burlington County:
5.35%, 9/15/2003 1,000,000 1,014,770
5.20%, 10/1/2009 2,000,000 2,011,540
Camden County Improvement Authority, Revenue:
County Guaranteed Lease:
5.40%, 12/1/2002 855,000 871,168
5.85%, 10/1/2006 (Insured; MBIA) 1,000,000 1,046,400
(Health Services Center) 4.80%, 12/1/2004 (Insured; AMBAC) 1,055,000 1,051,666
Camden County Municipal Utilities Authority,
County Agreement Sewer Revenue:
5.50%, 7/15/2005 (Insured; FGIC) 1,000,000 1,026,410
5%, 7/15/2009 (Insured; FGIC) 3,200,000 3,172,800
Cherry Hill Township, Sewer and Sewer Assessment
5.30%, 9/1/2002 1,370,000 1,391,797
Delaware River and Bay Authority, Revenue
5.10%, 1/1/2009 (Insured; FGIC) 215,000 215,325
Dover Township 5.90%, 10/15/2002 (Insured; AMBAC) 1,640,000 1,692,677
Freehold Regional High School:
5.50%, 3/1/2009
(Insured; FGIC, Guaranteed; School Board Reserve Fund) 1,450,000 1,499,996
5.50%, 3/1/2010
(Insured; FGIC, Guaranteed; School Board Reserve Fund) 2,460,000 2,544,452
Greenwich Township Board of Education
5%, 1/15/2011 (Insured; FSA) 1,015,000 1,000,374
Hillside Township:
6.60%, 2/15/2007 (Insured; MBIA) (Prerefunded 2/15/2002) 705,000 (a) 742,591
6.60%, 2/15/2007 (Insured; MBIA) 295,000 309,396
City of Hoboken Parking Authority, Parking General Revenue:
6.10%, 3/1/2002 375,000 383,332
6.20%, 3/1/2003 395,000 407,881
Hudson County, Vocational School Improvement
5.05%, 10/1/2008 (Insured; FSA) 1,010,000 1,008,960
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
Hudson County Improvement Authority,
Solid Waste System Revenue
6.75%, 1/1/2003 3,000,000 3,092,400
Jackson Township School District
4.625%, 12/15/2008 (Insured; FSA) 1,325,000 1,281,103
Jersey City:
Public Improvement 5.25%, 9/1/2010 (Insured; MBIA) 1,605,000 1,631,338
Water 5.20%, 10/1/2008 (Insured; AMBAC) 1,565,000 1,583,764
Lacey Municipal Utilities Authority, Water Revenue:
5.10%, 12/1/2003 (Insured; MBIA) 1,060,000 1,074,596
5.20%, 12/1/2004 (Insured; MBIA) 1,215,000 1,234,258
Manalapan-Englishtown Regional
School District Board of Education
(School Bonds) 5%, 5/1/2004 1,950,000 1,966,536
Mercer County Improvement Authority, Revenue, Township
Guaranteed (Hamilton Board of Education Lease Project)
5.70%, 6/1/2002 (Insured; MBIA) 470,000 480,396
Middlesex County Utilities Authority, Sewer Revenue:
5%, 9/15/2008 (Insured; FGIC) 1,000,000 998,270
6.25%, 8/15/2010 (Insured; MBIA) 1,500,000 1,611,480
Township of Middletown 4.90%, 8/1/2004 1,810,000 1,815,828
Monmouth County:
5.10%, 10/1/2010 2,600,000 2,608,528
4.80%, 7/15/2011 1,510,000 1,463,688
Monmouth County Improvement Authority, Revenue
(Correctional Facilities) 5%, 8/1/2009 1,500,000 1,496,025
City of Newark Board of Education
5.875%, 12/15/2006 (Insured; MBIA) 1,755,000 1,847,032
State of New Jersey 5.50%, 8/1/2011 3,100,000 3,204,160
New Jersey Economic Development Authority, Revenue:
District Heating and Cooling (Trenton-Trigen Project)
6.10%, 12/1/2004 2,885,000 2,900,377
Market Transition Facility Revenue
7%, 7/1/2004 (Insured; MBIA) 2,275,000 2,458,319
(Transportation Project Sublease)
5.25%, 5/1/2011 (Insured; FSA) 2,210,000 2,229,315
(Trenton Office Complex)
5.25%, 6/15/2009 (Insured; FSA) 2,500,000 2,531,650
Waste Paper Recycling (MPMI Inc. Project)
5.75%, 2/1/2004 2,040,000 2,020,232
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
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) 560,000 (a) 576,946
(Ramapo College) 5.15%, 7/1/2004 (Insured; MBIA) 1,010,000 1,022,787
(Saint Peter's College) 5%, 7/1/2008 2,200,000 2,115,652
(Seton Hall University) 5.25%, 7/1/2006 (Insured; AMBAC) 2,030,000 2,067,149
(University of Medicine and Dentistry)
5%, 12/1/2004 (Insured; AMBAC) 5,090,000 5,132,858
Higher Educational Facilities Trust Fund:
5.125%, 9/1/2006 (Insured; AMBAC) 2,775,000 2,802,056
5.125%, 9/1/2009 (Insured; AMBAC) 2,000,000 2,006,020
New Jersey Environmental Infrastructure Trust,
Waste Water Treatment
5%, 9/1/2007 1,820,000 1,826,079
New Jersey Health Care Facilities Financing Authority,
Health Hospital and Nursing Home Revenue:
(Burdette Tomlin Memorial Hospital Issue)
6%, 7/1/2003 (Insured; FGIC) 1,665,000 1,720,511
(Deborah Heart and Lung Center Issue):
5.60%, 7/1/2003 1,710,000 1,690,694
5.80%, 7/1/2004 745,000 737,893
5.90%, 7/1/2005 790,000 782,384
(Mountainside Hospital) 5.10%, 7/1/2003 (Insured; MBIA) 1,630,000 1,645,159
(Rahway Hospital Obligated Group Issue) 5%, 8/1/2008 2,000,000 1,707,520
(Raritan Bay Medical Center Issue) 6.625%, 7/1/2005 2,800,000 2,765,560
(Robert Wood Johnson University Center)
5%, 7/1/2008 (Insured; MBIA) 1,500,000 1,491,375
(Saint Joseph's Hospital and Medical Center)
5.15%, 7/1/2006 (Insured; Connie Lee) 2,555,000 2,574,469
(West Jersey Health System)
5.45%, 7/1/2002 (Insured; MBIA) 2,160,000 2,193,890
New Jersey Higher Education Assistance Authority,
Student Loan Revenue:
6.80%, 7/1/2000 420,000 422,344
(NJ Class Loan Program) 5.60%, 1/1/2001 775,000 780,743
New Jersey Highway Authority, Senior Parkway Revenue
(Garden State Parkway):
5.70%, 1/1/2002 500,000 509,150
5.90%, 1/1/2004 500,000 518,330
New Jersey Housing and Mortgage Finance Agency, Revenue
Home Buyer 5%, 4/1/2005 (Insured; MBIA) 2,000,000 1,987,800
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Sports and Exposition Authority,
Convention Center Luxury Tax
Revenue 5.75%, 7/1/2002 (Insured; MBIA) 2,000,000 2,048,260
New Jersey Transportation Trust Fund Authority,
Transportation System:
5.125%, 6/15/2007 (Insured; AMBAC) 1,870,000 1,886,662
5.50%, 6/15/2009 3,225,000 3,326,942
New Jersey Wastewater Treatment Trust:
5.90%, 5/1/2003 (Insured; MBIA) (Prerefunded 5/1/2002) 1,400,000 (a) 1,459,402
Loan Revenue:
6.30%, 7/1/2005 50,000 51,967
6.30%, 7/1/2005 (Prerefunded 7/1/2001) 3,545,000 (a) 3,691,267
North Brunswick Township 6.30%, 5/15/2006
(Prerefunded 5/15/2002) 1,860,000 (a) 1,948,015
North Hudson Sewer Authority, Sewer Revenue
5.25%, 8/1/2010 (Insured; FGIC) 3,825,000 3,859,387
North Jersey District Water Supply Commission, Revenue
(Wanaque South Project) 5.40%, 7/1/2002 (Insured; MBIA) 2,795,000 2,843,549
Northeast Monmouth County Regional Sewer Authority,
Sewer Revenue
5%, 11/1/2010 (Insured; MBIA) 2,250,000 2,223,540
Ocean County, General Improvement:
5.30%, 9/1/2003 2,115,000 2,156,200
5.125%, 7/1/2004 1,000,000 1,012,480
5.65%, 7/1/2005 1,600,000 1,659,696
4.50%, 12/1/2009 1,225,000 1,163,542
Parsippany--Troy Hills Township 6%, 4/1/2004 1,630,000 1,702,535
Passaic County Utilities Authority, SWDR:
5%, 3/1/2007 1,300,000 1,285,375
5%, 3/1/2008 1,195,000 1,176,932
City of Perth Amboy Board of Education, COP,
Lease Purchase Agreement
(FWB Leasecorp, Inc.) 5.60%, 12/15/2002 (Insured; FSA) 1,265,000 1,297,548
Pinelands Regional Board of Education, COP,
Lease Purchase Agreement
(A & R Hunt Enterprises, Inc.)
5.70%, 2/15/2003 (Insured; FSA) 350,000 359,517
Port Authority of New York and New Jersey,
(Consolidated Board 101st Series)
5.25%, 9/15/2006 (Insured; MBIA) 1,000,000 1,011,150
Township of Roxbury, Water and Sewer Assessment
5.05%, 8/1/2004 (Insured; AMBAC) 1,175,000 1,188,806
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
Rutgers State University, University Revenue
(State University of New Jersey) 6.30%, 5/1/2005 2,900,000 3,036,068
South Jersey Port Corp., Marine Terminal Revenue:
5.30%, 1/1/2005 930,000 930,502
5.40%, 1/1/2006 1,010,000 1,011,798
South Jersey Transportation Authority,
Transportation System Revenue
5.50%, 11/1/2002 (Insured; MBIA) 2,000,000 2,044,520
Southern Regional High School District
5.50%, 9/1/2011 (Insured; MBIA) 1,600,000 1,636,768
Sussex County Municipal Utilities Authority,
Wastewater Facilities Revenue
5%, 12/1/2003 (Insured; MBIA) 1,755,000 1,770,321
Warren County Pollution Control Financing Authority,
Landfill Revenue
5.60%, 12/1/2002 1,765,000 1,699,148
Washington Township Board of Education
5.10%, 2/1/2007 (Insured; MBIA) 3,100,000 3,132,736
West Deptford Township 5.20%, 3/1/2011 (Insured; AMBAC) 2,000,000 2,010,860
West Morris Regional High School District
Board of Education, School
5.875%, 1/15/2004 250,000 259,495
West Windsor Township, General Improvement:
5.70%, 10/15/2002 600,000 610,884
5.90%, 10/15/2003 600,000 611,514
West Windsor-Plainsboro Regional Board of Education, COP,
Lease Purchase Agreement (Lamington Funding Corp.)
5.50%, 3/15/2003 (Insured; MBIA) 1,115,000 1,138,861
Western Monmouth Utilities Authority, Revenue
5.15%, 2/1/2008 (Insured; AMBAC) 1,000,000 1,007,080
Woodbridge Township:
5.65%, 8/15/2002 1,320,000 1,348,499
6.20%, 8/15/2007 2,000,000 2,101,980
U.S. RELATED--5.8%
Commonwealth of Puerto Rico, Improvement
5.30%, 7/1/2004 (Insured; MBIA) 6,660,000 6,828,565
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program/ GO Matching Fund)
5.65%, 10/1/2003 (Prerefunded 10/1/2001) 2,080,000 (a) 2,115,006
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. RELATED (CONTINUED)
Virgin Islands Public Finance Authority, Revenue:
(Matching Fund Loan Notes)
7%, 10/1/2002 250,000 265,108
(Senior Lien Fund) 5.50%, 10/1/2008 (Insured; ACA) 1,500,000 1,506,570
Virgin Islands Water and Power Authority, Water System Revenue
7.20%, 1/1/2002 200,000 206,278
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $178,409,112) 180,033,278
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--2.9%
--------------------------------------------------------------------------------
NEW JERSEY;
Port Authority of New York and New Jersey,
Special Obligation Revenue, VRDN:
3.45% (SBPA; Bank of Nova Scotia) 3,300,000 (b) 3,300,000
3.35% (SBPA; Morgan Guaranty Trust Co.) 2,200,000 (b) 2,200,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $5,500,000) 5,500,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $183,909,112) 98.3% 185,533,278
CASH AND RECEIVABLES (NET) 1.7% 3,171,267
NET ASSETS 100.0% 188,704,545
Summary of Abbreviations
ACA American Capital Access MBIA Municipal Bond Investors
AMBAC American Municipal Bond Assurance Insurance Corporation
Assurance Corporation SBPA Standby Bond
COP Certificate of Participation Purchase Agreement
FGIC Financial Guaranty Insurance Company SWDR Solid Waste Disposal Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
GO General Obligation
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 62.2
AA Aa AA 17.1
A A A 5.9
BBB Baa BBB 7.1
B B B .9
F1 Mig1 SP1 3.0
Not Rated (c) Not Rated (c) Not Rated (c) 3.8
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILTIES
March 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 183,909,112 185,533,278
Cash 736,578
Interest receivable 2,663,437
Prepaid expenses 2,689
188,935,982
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 113,535
Payable for shares of Beneficial Interest redeemed 61,287
Accrued expenses 56,615
231,437
--------------------------------------------------------------------------------
NET ASSETS ($) 188,704,545
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 191,081,404
Accumulated net realized gain (loss) on investments (4,001,025)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 1,624,166
--------------------------------------------------------------------------------
NET ASSETS ($) 188,704,545
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value
shares of Beneficial Interest authorized)
14,163,268
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
13.32
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended March 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 10,480,250
EXPENSES:
Management fee--Note 3(a) 1,215,479
Shareholder servicing costs--Note 3(b) 326,287
Professional fees 46,554
Trustees' fees and expenses--Note 3(c) 21,632
Custodian fees 21,248
Prospectus and shareholders' reports 14,080
Registration fees 4,199
Loan commitment fees--Note 2 2,038
Miscellaneous 24,370
TOTAL EXPENSES 1,675,887
Less--reduction in management fee due to
undertaking--Note 3(a) (73,235)
NET EXPENSES 1,602,652
INVESTMENT INCOME--NET 8,877,598
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (250,638)
Net unrealized appreciation (depreciation) on investments (8,956,344)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (9,206,982)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (329,384)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended March 31,
-----------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 8,877,598 9,104,364
Net realized gain (loss) on investments (250,638) 781,232
Net unrealized appreciation (depreciation)
on investments (8,956,344) 765,583
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS (329,384) 10,651,179
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (8,877,598) (9,104,364)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 31,359,177 33,844,941
Dividends reinvested 7,476,960 7,659,276
Cost of shares redeemed (58,590,997) (41,227,453)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (19,754,860) 276,764
TOTAL INCREASE (DECREASE) IN NET ASSETS (28,961,842) 1,823,579
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 217,666,387 215,842,808
END OF PERIOD 188,704,545 217,666,387
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,324,426 2,430,570
Shares issued for dividends reinvested 554,651 549,536
Shares redeemed (4,345,890) (2,961,601)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,466,813) 18,505
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Year Ended March 31,
--------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 13.93 13.83 13.35 13.44 13.12
Investment Operations:
Investment income--net .59 .59 .59 .59 .60
Net realized and unrealized
gain (loss) on investments (.61) .10 .48 (.08) .32
Total from Investment Operations (.02) .69 1.07 .51 .92
Distributions:
Dividends from investment income--net (.59) (.59) (.59) (.60) (.60)
Net asset value, end of period 13.32 13.93 13.83 13.35 13.44
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (.09) 5.04 8.18 3.84 7.09
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .79 .80 .78 .78 .72
Ratio of net investment income
to average net assets 4.38 4.21 4.34 4.43 4.47
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation .04 .04 .03 -- .06
Portfolio Turnover Rate 16.95 18.81 6.90 14.60 13.69
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 188,705 217,666 215,843 216,350 229,034
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The 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, 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 state income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial
futures on municipal and U.S. treasury securities are valued at the last sales
price on the securities exchange on which such securities are primarily traded
or at the last sales price on the national securities market on each business
day. Investments not listed on an exchange or the national securities market, or
securities for which there were no transactions, are valued at the average of
the most recent bid and asked prices. Bid price is used when no asked price is
available.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund received net earnings credits of $9,048 during the period
ended March 31, 2000, based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
exempt dividends, by complying with the applicable provisions of the Code, and
to make distributions of income and net realized capital gain sufficient to
relieve it from substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $4,001,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 2000. If not
applied, $1,289,000 of the carryover expires in fiscal 2003, $2,461,000 expires
in fiscal 2004 and $251,000 expires in fiscal 2008.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended March
31, 2000, the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .60 of 1% of the value of the fund's average
daily net assets and is payable monthly. The Manager had undertaken from April
1, 1999 through March 31, 2000 to reduce the management fee paid by the fund, to
the extent that the fund' s aggregate annual expenses, exclusive of taxes,
brokerage fees, interest on borrowings, commitment fees and extraordinary
expenses, exceeded an 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 $73,235, during the period ended March 31, 2000.
(b) Under the Shareholder Services Plan, the fund reimburses DSC an amount not
to exceed an annual rate of .25 of 1% of the value of the
fund' s average daily net assets for certain allocated expenses of providing
personal services and/or maintaining shareholder accounts. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. During the period ended March 31, 2000, the fund was charged $200,595
pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended March 31, 2000, the fund was charged $85,708 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. During the period ended March
31, 2000, redemption fees retained by the fund amounted to $18.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended March 31, 2000, amounted to
$33,269,573 and $55,303,242, respectively.
At March 31, 2000, accumulated net unrealized appreciation on investments was
$1,624,166, consisting of $2,692,400 gross unrealized appreciation and
$1,068,234 gross unrealized depreciation.
At March 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus 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, 2000, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of March 31, 2000 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus New Jersey Intermediate Municipal Bond Fund at March 31, 2000, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with accounting principles
generally accepted in the United States.
New York, New York
May 5, 2000
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby designates all the dividends
paid from investment income-net during its fiscal year ended March 31, 2000 as
" exempt-interest dividends" (not generally subject to regular Federal and, for
individuals who are 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 2000 calendar year on Form 1099-DIV which
will be mailed by January 31, 2001.
The Fund
NOTES
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 751AR003
