<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Economic Snapshot................................ 2
Performance Results.............................. 3
Portfolio Management Review...................... 4
Glossary of Terms................................ 7
Portfolio Highlights............................. 8
Portfolio of Investments......................... 10
Statement of Assets and Liabilities.............. 13
Statement of Operations.......................... 14
Statement of Changes in Net Assets............... 15
Financial Highlights............................. 16
Notes to Financial Statements.................... 18
Report of Independent Accountants................ 21
Dividend Reinvestment Plan....................... 22
</TABLE>
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 2
LETTER TO SHAREHOLDERS
November 19, 1999
Dear Shareholder:
As we approach the end of the century--and the millennium--it seems
appropriate to take a look back at the progress we've made over the last 100
years and how the world of investing has changed over the generations. Although
rapid advances in technology and science have dramatically altered the world
that we live in today, one of the greatest shifts we've seen this century is the
increasing importance of investing for many Americans.
Once considered primarily for the wealthy, investing in the stock market is
now available to most people. In fact, almost 79 million individuals--who
represent almost half of all U.S. households--own stocks either directly or
through mutual funds. This is even more impressive when considering that just 16
years earlier, only 19 percent of households owned stocks. Another important
shift has been the need for retirement planning beyond a pension plan or Social
Security. The Investment Company Institute, the leading mutual fund industry
association, reports that 77 percent of all mutual fund shareholders earmarked
retirement as their primary financial goal in 1998.
Through all the changes in the investment environment over the past century,
the general principles that have made generations of investors successful remain
the same. Those that have stood the test of time include:
- Investing for the long-term
- Basing investment decisions on sound research
- Building a diversified portfolio
- Believing in the value of professional investment advice
While no one can predict the future, at Van Kampen, we believe that these
ideas will remain important tenets for investors well into the next century. As
we continue to focus on these principles, we hope that our decades of investment
experience can help bring you closer to your financial goals as we enter the new
millennium.
Sincerely,
[SIG]
Richard F. Powers, III
Chairman
Van Kampen Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen Investment Advisory Corp.
Source: Investment Company Institute
1
<PAGE> 3
ECONOMIC SNAPSHOT
ECONOMIC GROWTH
Americans continued their spending spree over the past year, keeping the
economy growing at a healthy pace. High levels of consumer confidence fueled
this heavy retail activity, which pushed the personal savings rate to a record
low as spending rates outpaced income growth. Although the U.S. economy
experienced a slowdown during the second quarter of 1999, growth rebounded
toward the end of the reporting period.
EMPLOYMENT SITUATION
The strong job market helped support the strength of the economy. During the
reporting period, the unemployment rate reached its lowest level in almost 30
years, and wages continued to climb. The wage pressures were balanced somewhat
by productivity gains. However, these pressures ultimately pushed the cost of
labor higher in the second quarter, as the employment cost index recorded its
biggest gain in eight years before returning to a more moderate level in the
third quarter.
INFLATION AND INTEREST RATES
Inflation remained tame throughout most of the reporting period, although a
sharp increase in oil prices contributed to a spike in April's consumer price
index report. The Federal Reserve Board remained active in guarding against
inflation and tempering the economy during this environment. The Fed reversed
its three interest rate cuts from the fall of 1998, raising rates in June,
August, and November 1999 to keep the economy from overheating.
U.S. GROSS DOMESTIC PRODUCT
Seasonally Adjusted Annualized Rates
Third Quarter 1997 through Third Quarter 1999
[BAR GRAPH]
<TABLE>
<S> <C>
97Q3 4.0
97Q4 3.1
98Q1 6.7
98Q2 2.1
98Q3 3.8
98Q4 5.9
99Q1 3.7
99Q2 1.9
99Q3 5.5
</TABLE>
Source: Bureau of Economic Analysis
2
<PAGE> 4
PERFORMANCE RESULTS FOR THE PERIOD ENDED OCTOBER 31, 1999
VAN KAMPEN FLORIDA MUNICIPAL OPPORTUNITY TRUST
(AMEX TICKER SYMBOL--VOF)
<TABLE>
<S> <C>
COMMON SHARE TOTAL RETURNS
One-year total return based on market price(1)............ (15.61%)
One-year total return based on NAV(2)..................... (7.72%)
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3).................................................. 6.37%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)..................................... 9.95%
SHARE VALUATIONS
Net asset value........................................... $13.33
Closing common stock price................................ $11.5000
One-year high common stock price (12/10/98)............... $15.1250
One-year low common stock price (10/28/99)................ $11.500
Preferred share rate(5)................................... 3.150%
</TABLE>
(1)Total return based on market price assumes an investment at the market price
at the beginning of the period indicated, reinvestment of all distributions for
the period in accordance with the Trust's dividend reinvestment plan, and sale
of all shares at the closing common stock price at the end of the period
indicated.
(2)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.
(3)Distribution rate represents the monthly annualized distributions of the
Trust at the end of the period and not the earnings of the Trust.
(4)The taxable-equivalent distribution rate is calculated assuming a 36% federal
income tax bracket.
(5)See "Notes to Financial Statements" footnote #4, for more information
concerning Preferred Share reset periods.
A portion of the interest income may be taxable for those investors subject to
the federal alternative minimum tax (AMT).
Past performance does not guarantee future results. Investment return, stock
price and net asset value will fluctuate with market conditions. Trust shares,
when sold, may be worth more or less than their original cost.
3
<PAGE> 5
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN FLORIDA MUNICIPAL OPPORTUNITY TRUST
We recently spoke with representatives of the adviser of the Van Kampen Florida
Municipal Opportunity Trust about the key events and economic forces that shaped
the markets during the past year. Thomas M. Byron, portfolio manager, has
managed the Trust since January 1997 and worked in the investment industry since
1981. He is joined by Peter W. Hegel, chief investment officer for fixed-income
investments. The following discussion reflects their views on the Trust's
performance during the 12 months ended October 31, 1999.
Q WHAT HAPPENED IN THE MUNICIPAL MARKET DURING THE REPORTING PERIOD?
A Bonds of all types experienced price declines during the past 12 months as
interest rates rose, especially toward the end of the reporting period. In
addition to the negative effects of the Federal Reserve Board's two
interest-rate increases during the summer, the bond market declined as the
nation's strong economic growth continued to spark inflation fears, leading to
concern about future rate hikes. Because of low institutional demand for
municipal bonds during the period, these conditions affected municipals more
than their taxable counterparts--corporate and Treasury bonds. The yields of
newly issued 30-year AAA municipal bonds rose more than a full percentage point
during the 12-month period, so the prices of existing bonds dropped
concurrently. The bonds in the Trust's portfolio were not spared by this market
movement and suffered price declines along with the rest of the municipal
market.
The interest-rate increases also suppressed municipal bond supply, bringing
overall nationwide issuance down more than 20 percent in the first ten months of
the year compared with 1998. Supply was down in almost every sector, with
electric-utility and health-care bonds experiencing the most significant drops.
Although new issuance kept pace with last year's active market, the amount of
bonds issued through refinancing was down more than 50 percent for the year
through October. Many municipalities simply chose not to refinance outstanding
bonds because of the higher interest rates they would have to pay in the current
marketplace.
Q DID MUNICIPAL BONDS BENEFIT FROM THE STRONG ECONOMY?
A Yes. The effects of the healthy economy were reflected in the good credit
conditions in the municipal market, even though prices suffered. With the
exception of the health-care sector, overall credit quality remained high, and
we witnessed a number of credit upgrades as tax revenues kept municipal finances
strong.
4
<PAGE> 6
Q COULD YOU DESCRIBE FLORIDA'S ECONOMIC AND MUNICIPAL MARKET ENVIRONMENT
DURING THE YEAR?
A Florida's economy remained strong, as the state decreased its reliance on
agriculture and tourism and increased the role of trade and services. In
addition, the state remained fiscally sound and continued to experience
budget surpluses, even after a $1 billion tax cut that included reducing the
state's intangibles tax. The strong state economy led to good performance in
many revenue-based sectors of the municipal market, including airports,
transportation, education, and utilities.
Q WHAT TECHNIQUES DID YOU USE TO MANAGE THE TRUST IN THESE CONDITIONS?
A We took advantage of the general market price declines to enhance the
current income potential and tax management of the Trust. We sold some of
our holdings that were prerefunded or were nearing their call dates, as
well as some securities purchased at below-market interest rates, at a capital
loss to offset some of the gains we had earned early in 1999. This allowed us to
avoid the need to distribute taxable capital gains to shareholders this year.
These bonds were replaced with longer-maturity, higher-yielding issues,
increasing the Trust's income stream. The new bonds also had better protection
against bond calls.
We used a related strategy by increasing the portfolio's duration, or
sensitivity to interest-rate changes. We sold the bonds that were about to be
called or refunded and purchased longer-duration securities, including bonds
with 20- to 30-year maturities. We feel that the longer duration will benefit
the Trust in a declining interest-rate environment by allowing it to participate
more fully in a market rally. In the short term, however, the longer duration
negatively affected the Trust's total return as interest rates climbed.
Q WHAT AREAS OF THE MUNICIPAL MARKET WERE MOST ATTRACTIVE TO YOU?
A As we sought to find the most attractive-yielding securities that met our
purchasing criteria, we focused on lower-rated investment-grade bonds. We
sold some of the bonds that had been prerefunded and were therefore rated
AAA because they were backed by Treasury securities until they could be called
from the portfolio. This reduced our allocation of AAA bonds. When it was
attractive to do so, we replaced these holdings with lower-rated bonds, which
generally provided better yields and enhanced the Trust's income stream. This
strategy also helped support the Trust's total return because the income from
these higher-yielding bonds provided some level of cushion as bond prices
declined toward the end of the reporting period.
In addition, we found value in the transportation sector, where issuers such
as the Florida Port Authority offered attractive bonds at good yields. At the
end of October, transportation represented one of the Trust's largest sectors at
8.9 percent of long-term investments. To focus more on sectors such as
transportation, we reduced our position in health care. Although many
health-care bonds remain attractive, the challenges imposed by managed care and
changing Medicare reimbursement policies have led us to focus on
5
<PAGE> 7
other areas of the market in recent months. Reducing health care benefited the
Trust's total return because this sector underperformed the rest of the market
during the year. For additional portfolio highlights, please refer to page 8.
Q HOW DID THE TRUST PERFORM DURING THE PERIOD?
A Total return performance was disappointing because of the general downturn
in bond prices and the Trust's increased duration. In addition, the
Trust's leverage component hurt its performance during the period.
Although leverage helps the Trust provide higher income levels to common
shareholders, it made the portfolio more sensitive to the interest-rate
increases during the reporting period. For the one-year period ended October 31,
1999, the Trust returned -15.61 percent(1) based on market price. This reflects
a decrease in market price from $14.375 per share on October 31, 1998, to $11.50
per share on October 31, 1999.
On the positive side, the dividend remained unchanged during the past 12
months. The monthly tax-exempt dividend of $0.061 per share translates to a
distribution rate of 6.37 percent based on the Trust's closing market price on
October 31, 1999. Because the Trust is exempt from federal income taxes, this
distribution rate is equivalent to a taxable yield of 9.95 percent for an
investor in the 36 percent federal income tax bracket. Please refer to the chart
and footnotes on page 3 for additional performance results. Past performance
does not guarantee future performance.
Q WHAT DO YOU SEE AHEAD FOR THE ECONOMY AND THE MUNICIPAL MARKET?
A In the coming months, we will probably see a slowing economy, which may be
partly the result of year 2000 concerns. Wage increases will likely keep
inflation fears at the forefront, although increasing productivity should
be able to offset higher wage costs for employers.
Preparations for the turn of the millennium may also limit new issuance and
general market activity at the end of the year. Many municipal issuers are
planning to postpone issuing bonds until they feel certain that any potential
computer problems have been avoided, but we believe that market activity should
pick up early in 2000. In the meantime, we will continue to focus on finding
attractive-yielding bonds and protecting the Trust from bond calls as much as
possible. We will also use our extensive research capabilities to look for
attractive opportunities throughout the coming months.
[SIG]
Thomas M. Byron
Portfolio Manager
[SIG]
Peter W. Hegel
Chief Investment Officer
Fixed Income Investments
6
<PAGE> 8
GLOSSARY OF TERMS
CALL FEATURE: Allows the issuer to buy back a bond on specific dates at set
prices before maturity. These dates and prices are set when the bond is
issued. To compensate the bondholder for the potential loss of income and
ownership, a bond's call price is usually higher than the face value of the
bond. Bonds are usually called when interest rates drop so significantly
that the issuer can save money by issuing new bonds at lower rates.
CREDIT RATING: An evaluation of an issuer's credit history and capability of
repaying obligations. Standard & Poor's and Moody's Investors Service are
two companies that assign bond ratings. Standard & Poor's ratings range from
a high of AAA to a low of D, while Moody's ratings range from a high of Aaa
to a low of C.
CREDIT SPREAD: Also called quality spread, the difference in yield between
higher-quality issues and lower-quality issues. Normally, lower-quality
issues provide higher yields to compensate investors for the additional
credit risk.
DISCOUNT BOND: A bond whose market price is lower than its face value (or "par
value"). Because bonds usually mature at face value, a discount bond has
more potential to appreciate in price than a par bond does.
DURATION: A measure of the sensitivity of a bond's price to changes in interest
rates, expressed in years. Each year of duration represents an expected 1
percent change in the price of a bond for every 1 percent change in interest
rates (i.e. a 5-year duration means the bond will fall about 5 percent in
value if interest rates rise by 1 percent). The longer a bond's duration,
the greater the effect of interest rate movements on its price. Typically,
funds with shorter durations perform better in rising rate environments,
while funds with longer durations perform better when rates decline.
INVESTMENT-GRADE BONDS: Securities rated BBB and above by Standard & Poor's or
Baa and above by Moody Investors Service. Bonds rated below BBB or Baa are
noninvestment grade.
MATURITY LENGTH: The time it takes for a bond to mature. A bond issued in 1999
and maturing in 2009 is a 10-year bond.
PREREFUNDING: The process of issuing new bonds to refinance an outstanding
municipal bond issue prior to its maturity or call date. The proceeds from
the new bonds are generally invested in U.S. government securities.
Prerefunding typically occurs when interest rates decline and an issuer
replaces its higher-yielding bonds with current lower-yielding issues.
ZERO COUPON BONDS: A corporate or municipal bond that is traded at a deep
discount to face value and pays no interest. It is redeemed at maturity for
full face value.
7
<PAGE> 9
PORTFOLIO HIGHLIGHTS
VAN KAMPEN FLORIDA MUNICIPAL OPPORTUNITY TRUST
TOP FIVE PORTFOLIO INDUSTRIES*
[BAR GRAPH]
<TABLE>
<CAPTION>
OCTOBER 31, 1999 OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
Health Care 26.20 23.40
Public Education 21.60 20.80
Transportation 8.90 11.10
Industrial Revenue 8.60 7.80
Water & Sewer 7.00 6.40
</TABLE>
* As a percentage of long-term investments
NET ASSET VALUE AND MARKET PRICE
(BASED UPON MONTH-END VALUES)
JULY 1993 THROUGH OCTOBER 1999
[LINE GRAPH]
<TABLE>
<CAPTION>
MARKET PRICE NET ASSET VALUE
------------ ---------------
<S> <C> <C>
Jul 1993 15.0000 14.8400
15.0200 15.0200
14.3750 15.2200
Oct 1993 14.8750 14.8800
14.1250 14.5200
13.6250 15.0800
14.7500 15.3500
14.5000 14.1900
13.5000 12.6300
12.6250 12.7000
11.7500 12.8600
12.5000 12.5800
12.1250 12.9100
11.5000 12.8400
10.5000 12.2800
Oct 1994 9.7500 11.7400
10.2500 11.2300
9.8750 11.8700
10.8750 12.5300
11.3750 13.1800
11.2500 13.1800
11.2500 13.0900
11.7500 13.8500
11.5000 13.3800
11.8750 13.4000
11.8750 13.5800
11.6250 13.6800
Oct 1995 12.0000 14.0200
12.1250 14.4400
12.0000 14.6200
12.6250 14.6700
12.7500 14.3700
12.5000 13.8100
12.3750 13.6400
11.8750 13.5500
12.2500 13.6700
12.3750 13.8300
12.5000 13.7200
12.3750 13.9500
Oct 1996 12.6250 14.0800
12.8750 14.4000
12.6250 14.1700
12.7500 14.0700
12.6250 14.1900
12.6250 13.7800
12.3750 13.8600
12.7500 14.0900
13.0000 14.2400
13.6250 14.8300
13.5000 14.4800
13.2500 14.6800
Oct 1997 13.1250 14.7600
13.5000 14.7700
13.7500 15.0300
14.4375 15.1600
14.0625 15.0700
13.8750 15.0000
13.6875 14.7300
13.3750 14.9500
13.7500 14.9600
13.9375 14.9300
14.1875 15.1700
14.3125 15.3300
Oct 1998 14.3750 15.1900
14.8125 15.1800
14.9375 15.1200
14.2500 15.2900
14.2500 15.1000
14.4375 14.9400
13.8125 14.9600
13.8125 14.7200
13.1250 14.2600
13.1250 14.2300
12.6870 13.8800
12.1250 13.7100
Oct 1999 11.5000 13.3300
</TABLE>
The solid line above represents the Trust's net asset value (NAV), which
indicates overall changes in value among the Trust's underlying securities. The
Trust's market price is represented by the dashed line, which indicates the
price the market is willing to pay for shares of the Trust at a given time.
Market price is influenced by a range of factors, including supply and demand
and market conditions.
8
<PAGE> 10
PORTFOLIO HIGHLIGHTS (CONTINUED)
VAN KAMPEN FLORIDA MUNICIPAL OPPORTUNITY TRUST
CREDIT QUALITY AS A PERCENTAGE OF LONG-TERM INVESTMENTS
AS OF OCTOBER 31, 1999
[PIE CHART]
<TABLE>
<CAPTION>
AAA/AAA AA/AA A/A BBB/BAA
------- ----- --- -------
<S> <C> <C> <C> <C>
As of October 31, 1999 81.10 4.90 3.80 10.20
</TABLE>
AS OF OCTOBER 31, 1998
[PIE CHART]
<TABLE>
<CAPTION>
AAA/AAA AA/AA A/A BBB/BAA
------- ----- --- -------
<S> <C> <C> <C> <C>
As of October 31, 1998 84.00 4.50 1.30 10.20
</TABLE>
Based upon the highest credit quality ratings as issued by Standard & Poor's or
Moody's, respectively.
DIVIDEND HISTORY
FOR THE PERIOD ENDED OCTOBER 31, 1999
[BAR GRAPH]
<TABLE>
<CAPTION>
DIVIDENDS
---------
<S> <C>
Nov 1998 0.061
Dec 1998 0.061
Jan 1999 0.061
Feb 1999 0.061
Mar 1999 0.061
Apr 1999 0.061
May 1999 0.061
Jun 1999 0.061
Jul 1999 0.061
Aug 1999 0.061
Sep 1999 0.061
Oct 1999 0.061
</TABLE>
The dividend history represents past performance of the Trust and does not
predict the Trust's future distributions.
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 95.9%
FLORIDA 91.8%
$1,000 Altamonte Springs, FL Hlth Fac Auth
Hosp Rev Adventist Hlth Sunbelt Ser B
(AMBAC Insd)........................... 5.375% 11/15/23 $ 922,730
1,000 Bay Cnty, FL Sch Brd Ctfs Partn
(Prerefunded @ 07/01/04) (AMBAC
Insd).................................. 6.750 07/01/12 1,104,890
1,750 Broward Cnty, FL Edl Fac Auth Rev Nova
Southeastn Univ Proj (Connie Lee Insd)
(b).................................... 5.875 04/01/07 1,830,710
545 Clay Cnty, FL Hsg Fin Auth Rev Single
Family Mtg (GNMA Collateralized)....... 6.500 09/01/21 558,331
1,750 Dade Cnty, FL Sch Brd Ctfs Partn Ser A
(Prerefunded @ 05/01/04) (MBIA Insd)... 5.750 05/01/08 1,844,220
1,000 Escambia Cnty, FL Hlth Facs Auth Rev
Ascension Hlth Credit Ser A2 (AMBAC
Insd) (a).............................. 5.750 11/15/29 966,030
1,000 Escambia Cnty, FL Pollutn Ctl Rev
Champion Intl Corp Proj................ 6.900 08/01/22 1,044,750
300 Florida Hsg Fin Agy Homeowner Mtg Ser 2
(MBIA Insd)............................ 5.900 07/01/29 289,875
695 Florida Hsg Fin Agy Homeowner Mtg Ser 3
(FHA Gtd).............................. 6.350 07/01/28 706,996
235 Florida Hsg Fin Agy Hsg Brittany
Rosemont Ser G1 (AMBAC Insd)........... 6.150 07/01/25 235,724
350 Florida Hsg Fin Agy Hsg Brittany
Rosemont Ser G1 (AMBAC Insd)........... 6.250 07/01/35 353,304
800 Florida Ports Fin Comm Rev St Trans
Trust Fund (MBIA Insd)................. 5.375 06/01/27 729,432
1,000 Florida Ports Fin Comm Rev St Trans
Trust Fund Intermodal Pgm (FGIC Insd)
(a).................................... 5.375 10/01/15 950,680
350 Florida St Brd of Edl Cap Outlay Pub
Edl Ser A Rfdg (FGIC Insd)............. 4.500 06/01/23 281,732
1,000 Florida St Brd of Edl Cap Outlay Pub
Edl Ser C (FGIC Insd).................. 5.750 06/01/29 977,010
300 Florida St Brd of Regts Univ Sys Impt
Rev (MBIA Insd)........................ 5.625 07/01/19 293,001
500 Florida St Brd of Regts Univ Sys Impt
Rev (AMBAC Insd)....................... 4.500 07/01/23 403,375
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
PORTFOLIO OF INVESTMENTS (CONTINUED)
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$ 500 Gainesville, FL Utils Sys Rev.......... 8.125% 10/01/14 $ 576,915
2,000 Hillsborough Cnty, FL Cap Impt Pgm Rev
Criminal Justice Fac Rfdg (FGIC Insd)
(b).................................... 5.250 08/01/16 1,873,760
1,300 Hillsborough Cnty, FL Hosp Auth Hosp
Rev Tampa Genl Hosp Proj Rfdg (FSA
Insd).................................. 6.375 10/01/13 1,375,114
1,000 Hillsborough Cnty, FL Indl Dev Auth
Indl Dev Rev Hlth Facs Proj Univ Comnty
Hosp Ser A............................. 5.625 08/15/23 880,960
1,750 Hillsborough Cnty, FL Indl Dev Auth
Indl Dev Rev Univ Cmnty Hosp (MBIA
Insd).................................. 5.750 08/15/14 1,752,257
1,000 Hillsborough Cnty, FL Indl Dev Auth
Pollutn Ctl Rev Tampa Elec Co Proj Ser
92 Rfdg................................ 8.000 05/01/22 1,095,210
1,750 Hillsborough Cnty, FL Indl Dev Auth Rev
Allegany Hlth Sys J Knox Vlge
(Prerefunded @ 12/01/03) (MBIA Insd)... 6.000 12/01/06 1,839,425
1,740 Hillsborough Cnty, FL Sch Brd Ctfs
Partn (Prerefunded @ 07/01/04) (MBIA
Insd).................................. 6.000 07/01/12 1,865,193
1,000 Jacksonville, FL Hosp Rev Univ Med Cent
Inc Proj (Connie Lee Insd)............. 6.500 02/01/11 1,053,370
1,000 Lee Cnty, FL Indl Dev Auth Hlthcare Fac
Rev Shell Point Vlg Proj Ser A......... 5.500 11/15/29 832,770
1,000 Marion Cnty, FL Hosp Dist Rev Rfdg &
Impt Hlth Sys Munroe Reg............... 5.500 10/01/29 880,070
1,000 Martin Cnty, FL Indl Dev Auth Indl Dev
Rev Indiantown Cogeneration Proj Ser A
Rfdg................................... 7.875 12/15/25 1,018,520
1,000 Miami Dade Cnty, FL Spl Oblig Ser B
(MBIA Insd)............................ * 10/01/33 120,750
1,000 Miami Dade Cnty, FL Spl Oblig Sub Ser B
(MBIA Insd)............................ * 10/01/31 137,040
1,000 Okeechobee, FL Wtr & Swr Rev Ser A
(Prerefunded @ 01/01/03) (MBIA Insd)... 6.500 01/01/17 1,077,500
775 Orange Cnty, FL Hsg Fin Auth Single
Family Mtg Rev (GNMA Collateralized)... 6.550 10/01/21 794,592
1,000 Palm Beach Cnty, FL Sch Brd Ctfs Partn
Ser A (Prerefunded @ 08/01/04) (AMBAC
Insd).................................. 6.000 08/01/06 1,066,500
1,200 Polk Cnty, FL Sch Brd Ctfs Partn (FSA
Insd).................................. 5.000 01/01/14 1,114,020
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
PORTFOLIO OF INVESTMENTS (CONTINUED)
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$ 635 Saint Petersburg, FL Excise Tax Rev
(FGIC Insd)............................ 5.000% 10/01/16 $ 574,002
365 Saint Petersburg, FL Excise Tax Rev
(Escrowed to Maturity) (FGIC Insd)..... 5.000 10/01/16 336,917
455 Titusville, FL Wtr & Swr Rev (MBIA
Insd).................................. 5.800 10/01/08 485,749
1,000 Village Cent Cmnty Dev Dist FL Util Rev
(FGIC Insd)............................ 6.000 11/01/18 1,023,190
-----------
35,266,614
-----------
PUERTO RICO 4.1%
500 Puerto Rico Comwlth Hwy & Tran Auth Hwy
Rev Ser V Rfdg......................... 6.375 07/01/08 525,580
1,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy
Rev Ser Y Rfdg (FSA Insd).............. 6.250 07/01/21 1,058,200
-----------
1,583,780
-----------
TOTAL LONG-TERM INVESTMENTS 95.9%
(Cost $36,227,848).................................................. 36,850,394
SHORT-TERM INVESTMENTS 4.0%
(Cost $1,550,000)................................................... 1,550,000
-----------
TOTAL INVESTMENTS 99.9%
(Cost $37,777,848).................................................. 38,400,394
OTHER ASSETS IN EXCESS OF LIABILITIES 0.1%........................... 43,263
-----------
NET ASSETS 100.0%.................................................... $38,443,657
===========
</TABLE>
* Zero coupon bond
(a) Securities purchased on a when issued or delayed delivery basis.
(b) Assets segregated as collateral for when issued or delayed delivery purchase
commitments.
AMBAC--AMBAC Indemnity Corporation
Connie Lee--Connie Lee Insurance Company
FGIC--Financial Guaranty Insurance Company
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.
See Notes to Financial Statements
12
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $37,777,848)........................ $38,400,394
Cash........................................................ 23,661
Receivables:
Investment Sold........................................... 1,567,202
Interest.................................................. 630,123
Other....................................................... 3,453
-----------
Total Assets.......................................... 40,624,833
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 1,922,013
Investment Advisory Fee................................... 21,310
Affiliates................................................ 16,031
Income Distributions -- Common and Preferred Shares....... 11,108
Administrative Fee........................................ 6,557
Accrued Expenses............................................ 104,657
Trustees' Deferred Compensation and Retirement Plans........ 99,500
-----------
Total Liabilities..................................... 2,181,176
-----------
NET ASSETS.................................................. $38,443,657
===========
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 640 issued with liquidation preference of $25,000
per share)................................................ $16,000,000
-----------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 1,683,270 shares issued and
outstanding).............................................. 16,833
Paid in Surplus............................................. 24,681,474
Net Unrealized Appreciation................................. 622,546
Accumulated Undistributed Net Investment Income............. 163,498
Accumulated Net Realized Loss............................... (3,040,694)
-----------
Net Assets Applicable to Common Shares................ 22,443,657
-----------
NET ASSETS.................................................. $38,443,657
===========
NET ASSET VALUE PER COMMON SHARE ($22,443,657 divided
by 1,683,270 shares outstanding).......................... $ 13.33
===========
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
STATEMENT OF OPERATIONS
For the Year Ended October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 2,273,685
-----------
EXPENSES:
Investment Advisory Fee..................................... 263,783
Administrative Fee.......................................... 81,164
Preferred Share Maintenance................................. 46,043
Accounting Services......................................... 38,515
Trustees' Fees and Related Expenses......................... 18,202
Legal....................................................... 8,793
Custodian Fees.............................................. 2,440
Other....................................................... 75,900
-----------
Total Expenses.......................................... 534,840
-----------
NET INVESTMENT INCOME....................................... $ 1,738,845
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 30,515
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 3,793,444
End of the Period......................................... 622,546
-----------
Net Unrealized Depreciation During the Period............... (3,170,898)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(3,140,383)
===========
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $(1,401,538)
===========
</TABLE>
See Notes to Financial Statements
14
<PAGE> 16
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended October 31, 1999 and 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income............................. $ 1,738,845 $ 1,732,248
Net Realized Gain................................. 30,515 50,305
Net Unrealized Appreciation/Depreciation During
the Period...................................... (3,170,898) 703,238
----------- -----------
Change in Net Assets from Operations.............. (1,401,538) 2,485,791
----------- -----------
Distributions from Net Investment Income:
Common Shares................................... (1,232,076) (1,232,067)
Preferred Shares................................ (494,780) (526,616)
----------- -----------
Total Distributions............................... (1,726,856) (1,758,683)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES...................................... (3,128,394) 727,108
NET ASSETS:
Beginning of the Period........................... 41,572,051 40,844,943
----------- -----------
End of the Period (Including accumulated
undistributed net investment income of $163,498
and $151,509, respectively)..................... $38,443,657 $41,572,051
=========== ===========
</TABLE>
See Notes to Financial Statements
15
<PAGE> 17
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share of
the Trust outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------
1999 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of the Period (a)............. $15.192 $14.760
------- -------
Net Investment Income................................ 1.033 1.029
Net Realized and Unrealized Gain/Loss................ (1.866) .448
------- -------
Total from Investment Operations....................... (.833) 1.477
------- -------
Less:
Distributions from Net Investment Income:
Paid to Common Shareholders.......................... .732 732
Common Share Equivalent of Distributions Paid to
Preferred Shareholders............................. .294 .313
------- -------
Total Distributions...................................... 1.026 1.045
------- -------
Net Asset Value, End of the Period....................... $13.333 $15.192
======= =======
Market Price Per Share at End of the Period.............. $11.500 $14.375
Total Investment Return at Market Price (b).............. (15.61%) 15.36%
Total Return at Net Asset Value (c)...................... (7.72%) 8.04%
Net Assets at End of the Period (In millions)............ $ 38.4 $ 41.6
Ratio of Expenses to Average Net Assets Applicable to
Common Shares(1, 2).................................... 2.18% 2.18%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares(2) (d)..................... 5.06% 4.77%
Portfolio Turnover....................................... 42% 15%
* Non-Annualized
(1) Ratio of Expenses to Average Net Assets Including
Preferred Shares..................................... 1.32% 1.33%
(2) If certain expenses had not been waived by the
Adviser, total return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets Applicable to
Common Shares.......................................... N/A N/A
Ratio of Expenses to Average Net Assets Including
Preferred Shares....................................... N/A N/A
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d)........................ N/A N/A
</TABLE>
(a) Net Asset Value at July 30, 1993, is adjusted for common and preferred share
offering costs of $.372 per common share.
(b) Total Investment Return at Market Price reflects the change in market value
of the common shares for the period indicated with reinvestment of dividends
in accordance with the Trust's dividend reinvestment plan.
(c) Total Return at Net Asset Value (NAV) reflects the change in value of the
Trust's assets with reinvestment of dividends based on NAV.
(d) Net Investment Income is adjusted for the common share equivalent of
distributions paid to preferred shareholders.
N/A = Not Applicable
16
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
July 30, 1993
(Commencement
Year Ended October 31, of Investment
- --------------------------------- Operations) to
1997 1996 1995 1994 October 31, 1993
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
$14.078 $14.024 $11.735 $14.888 $14.628
------- ------- ------- ------- -------
1.041 1.078 1.163 1.050 .091
.707 .023 2.226 (3.180) .251
------- ------- ------- ------- -------
1.748 1.101 3.389 (2.130) .342
------- ------- ------- ------- -------
.732 .732 .732 .787 .066
.334 .315 .368 .236 .016
------- ------- ------- ------- -------
1.066 1.047 1.100 1.023 .082
------- ------- ------- ------- -------
$14.760 $14.078 $14.024 $11.735 $14.888
======= ======= ======= ======= =======
$13.125 $12.625 $12.000 $ 9.750 $14.875
9.96% 11.57% 31.16% (30.20%) (.40%)*
10.33% 5.80% 26.30% (16.27%) (.36%)*
$ 40.8 $ 39.7 $ 39.6 $ 35.8 $ 41.0
2.24% 1.83% 1.37% 1.49% 2.59%
4.96% 5.46% 6.13% 6.06% 2.10%
4% 16% 24% 101% 0%*
1.34% 1.09% .79% .87% 2.16%
N/A 2.40% 2.49% 2.50% N/A
N/A 1.43% 1.44% 1.46% N/A
N/A 4.89% 5.00% 5.05% N/A
</TABLE>
See Notes to Financial Statements
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Florida Municipal Opportunity Trust (the "Trust") is registered as a
non-diversified closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust's investment objective is to provide
a high level of current income exempt from federal income taxes and Florida
State intangible taxes, consistent with preservation of capital. The Trust will
invest in a portfolio consisting substantially of Florida municipal obligations
rated investment grade at the time of investment. The Trust commenced investment
operations on July 30, 1993.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION--Municipal bonds are valued by independent pricing
services or dealers using the mean of the bid and asked prices or, in the
absence of market quotations, at fair value based upon yield data relating to
municipal bonds with similar characteristics and general market conditions.
Securities which are not valued by independent pricing services are valued at
fair value using procedures established in good faith by the Board of Trustees.
Short-term securities with remaining maturities of 60 days or less are valued at
amortized cost.
B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when issued" or "delayed delivery"
basis with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when issued or delayed delivery
purchase commitments until payment is made.
C. INVESTMENT INCOME--Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the expected life of each
applicable security.
18
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 1999
- --------------------------------------------------------------------------------
D. FEDERAL INCOME TAXES--It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At October 31, 1999, the Trust had an accumulated capital loss
carryforward for tax purposes of $3,040,694 which will expire between October
31, 2002 and October 31, 2005.
At October 31, 1999, for federal income tax purposes the cost of long- and
short-term investments is $37,777,848, the aggregate gross unrealized
appreciation is $1,203,841 and the aggregate gross unrealized depreciation is
$581,295, resulting in net unrealized appreciation on long- and short-term
investments of $622,546.
E. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
Investment Advisory Corp. (the "Adviser") will provide investment advice and
facilities to the Trust for an annual fee payable monthly of .65% of the average
net assets of the Trust. In addition, the Trust will pay a monthly
administrative fee to Van Kampen Funds Inc. or its affiliates (collectively "Van
Kampen"), the Trust's Administrator, at an annual rate of .20% of the average
net assets of the Trust. The administrative services provided by the
Administrator include record keeping and reporting responsibilities with respect
to the Trust's portfolio and preferred shares and providing certain services to
shareholders.
For the year ended October 31, 1999, the Trust recognized expenses of
approximately $700, representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom (Illinois), counsel to the Trust, of which a trustee of
the Trust is an affiliated person.
19
<PAGE> 21
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 1999
- --------------------------------------------------------------------------------
For the year ended October 31, 1999, the Trust recognized expenses of
approximately $46,600 representing Van Kampen's cost of providing accounting and
legal services to the Trust.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable for a ten-year period
and are based upon each trustee's years of service to the Trust. The maximum
annual benefit per trustee under the plan is $2,500.
At October 31, 1999, Van Kampen owned 6,700 common shares of the Trust.
3. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales, excluding
short-term investments, were $17,019,402 and $20,525,015, respectively.
4. PREFERRED SHARES
Effective with the close of business on April 23, 1999, the liquidation
preference on the Trust's preferred shares decreased from $50,000 to $25,000 per
share. This decrease was effected by means of a 2 for 1 stock split that doubled
the Trust's number of outstanding preferred shares. The total liquidation value
for the Trust was unchanged.
As of October 31, 1999, the Trust has outstanding 640 Auction Preferred
Shares ("APS"). Dividends are cumulative and the dividend rate is currently
reset every seven days through an auction process. The rate in effect on October
31, 1999 was 3.150%. During the year ended October 31, 1999, the rates ranged
from 2.530% to 3.750%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of Preferred Share Maintenance
expense.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
20
<PAGE> 22
REPORT OF INDEPENDENT ACCOUNTANTS
The Board of Trustees and Shareholders of
Van Kampen Florida Municipal Opportunity Trust:
We have audited the accompanying statement of assets and liabilities of Van
Kampen Florida Municipal Opportunity Trust (the "Trust"), including the
portfolio of investments, as of October 31, 1999, 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 the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1999, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of Van
Kampen Florida Municipal Opportunity Trust as of October 31, 1999, 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 periods presented, in conformity with generally accepted accounting
principles.
KPMG LLP
Chicago, Illinois
December 13, 1999
21
<PAGE> 23
DIVIDEND REINVESTMENT PLAN
The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at any time.
If you decide to participate in the Plan, State Street Bank and Trust
Company, as your Plan Agent, will automatically invest your dividends and
capital gains distributions in Common Shares of the Trust for your account.
HOW TO PARTICIPATE
If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be re-
registered in your own name which will enable your participation in the Plan.
HOW THE PLAN WORKS
Participants in the Plan will receive the equivalent in Common Shares valued on
the valuation date, generally at the lower of market price or net asset value,
except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in the acquisition of fewer Common Shares than if the dividend or
distribution had been paid in Common Shares issued by the Trust. All
reinvestments are in full and fractional Common Shares and are carried to three
decimal places.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.
COSTS OF THE PLAN
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.
TAX IMPLICATIONS
You will receive tax information annually for your personal records and to help
you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.
RIGHT TO WITHDRAW
Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA 02266-
8200. If you withdraw, you will receive, without charge, a share certificate
issued in your name for all full Common Shares credited to your account under
the Plan and a cash payment will be made for any fractional Common Share
credited to your account under the Plan. You may again elect to participate in
the Plan at any time by calling 1-800-341-2929 or writing to the Trust at:
Van Kampen Funds Inc.
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
22
<PAGE> 24
VAN KAMPEN FLORIDA MUNICIPAL OPPORTUNITY TRUST
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
DENNIS J. MCDONNELL*
STEVEN MULLER
THEODORE A. MYERS
RICHARD F. POWERS, III* -- Chairman
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
RICHARD F. POWERS, III*
President
DENNIS J. MCDONNELL*
Executive Vice President and Chief Investment Officer
A. THOMAS SMITH III*
Vice President and Secretary
JOHN L. SULLIVAN*
Vice President, Treasurer and
Chief Financial Officer
CURTIS W. MORELL*
Vice President and Chief Accounting Officer
TANYA M. LODEN*
Controller
PETER W. HEGEL*
MICHAEL H. SANTO*
EDWARD C. WOOD, III*
Vice Presidents
INVESTMENT ADVISER
VAN KAMPEN
INVESTMENT ADVISORY CORP.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
CUSTODIAN AND TRANSFER AGENT
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT ACCOUNTANTS
KPMG LLP
303 East Wacker Drive
Chicago, Illinois 60601
For Federal income tax purposes, the following information is furnished
with respect to the distributions paid by the Trust during its taxable year
ended October 31, 1999. The Trust designated 100% of the income distributions as
a tax-exempt income distribution. In January, 2000, the Trust will provide tax
information to shareholders for the 1999 calendar year.
* "Interested" persons of the Trust, as defined in the Investment Company Act of
1940.
(C) Van Kampen Funds Inc., 1999 All rights reserved.
(SM) denotes a service mark of Van Kampen Funds Inc.
23
<PAGE> 25
RESULTS OF SHAREHOLDER VOTES
The Annual Meeting of Shareholders of the Trust was held on June 16, 1999, where
shareholders voted on the election of trustees and the selection of independent
public accountants.
1) With regard to the election of the following trustees by preferred
shareholders of the Trust:
<TABLE>
<CAPTION>
# OF SHARES
-------------------
IN FAVOR WITHHELD
- ----------------------------------------------------------------------
<S> <C> <C>
Theodore A. Myers................................ 584 -0-
</TABLE>
2) With regard to the election of the following trustees by common
shareholders of the Trust:
<TABLE>
<CAPTION>
# OF SHARES
--------------------
IN FAVOR WITHHELD
- ----------------------------------------------------------------------
<S> <C> <C>
Don G. Powell*.................................. 1,479,773 1,700
Hugo F. Sonnenschein............................ 1,479,773 1,700
</TABLE>
The other trustees of the Trust whose terms did not expire in 1999 are David C.
Arch, Rod Dammeyer, Howard J Kerr, Dennis J. McDonnell, Steven Muller and Wayne
W. Whalen.
3) With regard to the ratification of KPMG LLP as independent public
accountants for the Trust, 1,471,151 shares voted in favor of the proposal,
2,370 shares voted against and 8,536 shares abstained.
* On August 9, 1999, Don G. Powell resigned and the Board of Trustees appointed
Richard F. Powers, III.
24
<PAGE> 26
YEAR 2000 READINESS DISCLOSURE
Like other mutual funds, financial and business organizations and individuals
around the world, the Trust could be adversely affected if the computer systems
used by the Trust's investment adviser and other service providers do not
properly process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 Problem." The Trust's
investment adviser is taking steps that it believes are reasonably designed to
address the Year 2000 Problem with respect to computer systems that it uses and
to obtain reasonable assurances that comparable steps are being taken by the
Trust's other major service providers. At this time, there can be no assurances
that these steps will be sufficient to avoid any adverse impact to the Trust. In
addition, the Year 2000 Problem may adversely affect the markets and the issuers
of securities in which the Trust may invest that, in turn, may adversely affect
the net asset value of the Trust. Improperly functioning trading systems may
result in settlement problems and liquidity issues. In addition, corporate and
governmental data processing errors may result in production problems for
individual companies or issuers and overall economic uncertainty. Earnings of
individual issuers will be affected by remediation costs, which may be
substantial and may be reported inconsistently in U.S. and foreign financial
statements. Accordingly, the Trust's investments may be adversely affected. The
statements above are subject to the Year 2000 Information and Readiness
Disclosure Act, which may limit the legal rights regarding the use of such
statements in the case of dispute.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000905636
<NAME> VK FLORIDA MUNICIPAL OPPORTUNITY TRUST
<SERIES>
<NUMBER> 11
<NAME> FL MUNI OPP
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> OCT-31-1999
<INVESTMENTS-AT-COST> 37,777,848
<INVESTMENTS-AT-VALUE> 38,400,394
<RECEIVABLES> 2,197,325
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 27,114
<TOTAL-ASSETS> 40,624,833
<PAYABLE-FOR-SECURITIES> 1,922,013
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 259,163
<TOTAL-LIABILITIES> 2,181,176
<SENIOR-EQUITY> 16,000,000
<PAID-IN-CAPITAL-COMMON> 24,698,307
<SHARES-COMMON-STOCK> 1,683,270
<SHARES-COMMON-PRIOR> 1,683,270
<ACCUMULATED-NII-CURRENT> 163,498
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,040,694)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 622,546
<NET-ASSETS> 38,443,657
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<APPREC-INCREASE-CURRENT> (3,170,898)
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<DISTRIBUTIONS-OF-GAINS> 0
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<NET-CHANGE-IN-ASSETS> (3,128,394)
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<INTEREST-EXPENSE> 0
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<EXPENSE-RATIO> 1.32
</TABLE>
