DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report on the Dreyfus
Pennsylvania Intermediate Municipal Bond Fund. For the 12-month reporting
period ended November 30, 1995, your Fund produced a total return of 15.22%
per share.* Income dividends of approximately $.634 per share were paid**
exempt from Federal and State of Pennsylvania personal income taxes, which is
equivalent to a tax-free distribution rate per share of 4.83%.***
THE ECONOMY
Modest economic growth and low inflation have spurred a dramatic,
year-long rally in the bond market. The Federal Reserve Board's recent
reduction of the Fed Funds rate confirms what investors had already
suspected: that inflation, at least for the immediate future, is under
control. Now questions abound regarding the duration of the economic recovery
and the likelihood of recession.
The economic recovery of the 1990s was productivity-driven. Corporations
implemented extraordinary cost control measures that, while dramatically
improving bottom line earnings, now contribute to the slow rate of employment
growth. Job creation is a significant factor that affects consumer spending,
and a major component of economic activity. New job creation, currently
running at the slowest pace of the post-World War II era, is worrisome.
Indeed, wages and salaries grew at under 3% over the past year, barely
keeping pace with inflation. Still, surveys indicate that consumers remain
optimistic, despite indications that their spending is being affected by the
slow growth in disposable income. Recent reports on retail sales confirm this
reticence in spending. A consumer-led weakening of the economy could lead to
further Federal Reserve easing of monetary policy.
It was concern about lagging economic growth that prompted the Federal
Reserve to ease the Federal Funds rate two times in 1995: first in July and
then again in December. The housing market and new home construction had been
helped earlier this year by low interest rates, though both have exhibited
signs of weakness recently. Business capital spending, another engine of
economic growth, has been solid. Exports remain another bright area of the
economy. Because of the new competitiveness of American businesses abroad,
the U.S. trade deficit continues to shrink. Through September, the trade
deficit with Japan narrowed for the sixth consecutive month. Exports, while a
relatively small component of overall economic activity in this country,
provide an important support for the job market. If U.S. products lose
competitiveness in world markets, foreign orders may go elsewhere and jobs
could be lost here.
MARKET ENVIRONMENT
Municipal bonds have enjoyed a dramatic bull market for the past twelve
months. Current business sluggishness may result in further Fed easing next
year, particularly if the Clinton Administration and Congress can arrive at a
meaningful budget agreement. Of course, the prospect of a balanced Federal
budget should be beneficial to the bond market since it could mean a
reduction in the issuance of government securities. A similar supply issue is
present in the municipal bond market. The redemption of existing municipal
bonds has outpaced the rate of new issuance for two years, and this is
expected to recur in 1996.
Overall, we remain confident in our optimistic view of the municipal bond
market. Yet we are also mindful of the stimulatory effect of easing monetary
policy and are watchful for any signs of a revival of inflationary pressures
in the economy.
THE PORTFOLIO
The recovery in the municipal market in 1995 more than offset the
declines of 1994. Decreased debt issuance, low inflation and a more
accommodative policy by the Federal Reserve all combined to move the fixed
income markets in a positive direction. Nonetheless, the municipal market has
experienced a great deal of volatility throughout the year. Much of this can
be attributed to the uncertainty of tax reform and a Congress and President
at odds over a budget solution. This has kept the municipal market relatively
attractive, on an after-tax basis, compared to the Treasury market. Some
municipal issues are currently yielding between 90-100% of the return on
Treasuries.
The Fund ended its fiscal year on November 30, 1995 with a total return
of 15.22% compared to the Lipper Pennsylvania Intermediate Municipal Bond
average of 13.61% for similar types of funds. In late 1994, we began to
extend the Fund's duration, anticipating that the worst of the market
downturn was over. Our focus for the Fund throughout the year was to improve
its call protection and structure. The Fund currently has an average maturity
of 9.2 years.
The high level of volatility exhibited by the market in recent years
underscores the need to maintain a disciplined and long-term focus. Our
primary task - to maximize current income exempt from Federal and State of
Pennsylvania personal income taxes to the extent consistent with preservation
of capital - continues to guide our portfolio management decisions.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
December 21, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders.
*** Distribution rate per share is based upon dividends per share paid
from net investment income during the period, divided by the net asset value
per share at the end of the period.
Source: Lipper Analytical Services, Inc.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND NOVEMBER 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PENNSYLVANIA
INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX
Dollars
$11,580
Dreyfus Pennsylvania
Intermediate Municipal
Bond Fund
$11,090
Lehman Brothers
10-Year
Municipal Bond Index*
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (12/16/93)
NOVEMBER 30, 1995 TO NOVEMBER 30, 1995
----------- --------------------
16.47% 7.78%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Pennsylvania
Intermediate Municipal Bond Fund on 12/16/93 (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 12/31/93 is used as
the beginning value on 12/16/93. All dividends and capital gain distributions
are reinvested.
The Fund invests primarily in Pennsylvania municipal securities and maintains
a portfolio with a weighted-average maturity ranging between 3 and 10 years.
The Fund's performance shown in the line graph takes into account fees and
expenses. Unlike the Fund, the Lehman Brothers 10-Year Municipal Bond Index
is an unmanaged total return performance benchmark for the investment-grade,
geographically unrestricted 10-year tax exempt bond market, consisting of
municipal bonds with maturities of more than 8 years and less than 12 years.
The Index does not take into account charges, fees and other expenses. Also,
unlike the Fund which principally limits investments to Pennsylvania
municipal obligations, the Index is not state specific. These factors can
contribute to the Index potentially outperforming the Fund. Further
information relating to Fund performance, including expense reimbursements,
if applicable, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-96.3% AMOUNT VALUE
______ _______
<S> <C> <C>
PENNSYLVANIA-86.4%
Allegheny County Hospital Development Authority, Revenue, Refunding
(Magee Womens Hospital) 5.875%, 10/1/2002 (Insured; FGIC)............... $ 500,000 $ 537,300
Berks County, Refunding 5.60%, 11/15/2007 (Insured; FGIC)................... 545,000 565,138
Bucks County 6.05%, 3/1/2002................................................ 500,000 543,350
Cambria County, Refunding 5.875%, 8/15/2008 (Insured; FGIC)................. 700,000 748,153
Chester County Health and Education Facilities Authority, Health System
Revenue
(Main Line Health System):
4.90%, 5/15/2004...................................................... 350,000 348,915
5.40%, 5/15/2009...................................................... 500,000 494,620
Clinton County Industrial Development Authority, PCR, Refunding
(International Paper Co. Project) 5.375%, 5/1/2004...................... 500,000 515,160
Dauphin County General Authority, Revenue:
6%, 12/1/2006 (LOC; The Sakura Bank Ltd., Prerefunded 6/1/2001) (a,b)... 785,000 807,161
5%, 6/1/2026 (Insured; AMBAC, Prerefunded 12/1/1998) (b)................ 500,000 506,950
Delaware County Authority:
Health Care Revenue, Refunding (Mercy Health Corp.-Southeastern)
6%, 11/15/2007........................................................ 1,000,000 988,230
HR (Crozer-Chester Medical Center) 4.75%, 12/15/2003 (Insured; MBIA).... 430,000 432,133
Delaware County Industrial Development Authority, Revenue, Refunding
(Martins Run Project) 5.60%, 12/15/2002................................. 750,000 737,588
Geisinger Authority, Health System Revenue 5.375%, 7/1/2000................. 850,000 881,832
Harrisburg Authority, Water Revenue, Refunding 5.30%, 7/15/2004 (Insured; FGIC) 300,000 312,735
Lackawanna County, Refunding 4.90%, 12/1/2006 (Insured; AMBAC).............. 500,000 502,935
Lancaster Higher Education Authority, College Revenue
(Franklin and Marshall College Project) 5%, 4/15/2002 (Insured; MBIA)... 350,000 359,684
Lehigh County General Purpose Authority, Revenue (Saint Lukes Hospital
Bethlehem Project) 4.75%, 11/15/2000 (Insured; AMBAC)................... 345,000 351,938
Lycoming County Authority, HR (Divine Providence Hospital)
5.25%, 11/15/2006 (Insured; Connie Lee) (c)............................. 1,000,000 1,006,600
Northeastern Hospital and Education Authority, College Revenue
(Luzerne County Community College) 6.20%, 8/15/2005 (Insured; AMBAC).... 500,000 551,760
Pennsylvania:
5%, 9/1/2007............................................................ 350,000 350,406
5%, 11/15/2009 (c)...................................................... 1,000,000 988,600
Refunding 5%, 5/1/2003.................................................. 500,000 512,590
Pennsylvania Convention Center Authority, Revenue, Refunding 6.25%, 9/1/2004 750,000 792,855
Pennsylvania Economic Development Financing Authority, RRR
(Northampton Generating Project) 6.40%, 1/1/2009........................ 500,000 506,260
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
______ _______
PENNSYLVANIA (CONTINUED)
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue
4.625%, 12/1/2000....................................................... $ 1,000,000 $ 998,010
Pennsylvania Higher Educational Facilities Authority:
College and University Revenue (Delaware Valley College of Science and
Agriculture)
6.50%, 4/1/2008....................................................... 790,000 839,730
Health Services Revenue (University of Pennsylvania) 5.75%, 1/1/2006.... 500,000 538,845
Pennsylvania Housing Finance Agency, Single Family Mortgage:
5.95%, 10/1/2003........................................................ 365,000 382,407
6.20%, 4/1/2005......................................................... 410,000 422,968
6.20%, 10/1/2005........................................................ 420,000 433,818
5.75%, 4/1/2006......................................................... 400,000 408,560
6.10%, 4/1/2006......................................................... 455,000 472,340
5.75%, 10/1/2006........................................................ 415,000 424,201
6.10%, 10/1/2006........................................................ 465,000 483,349
Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
(Philadelphia Funding Program) 5.45%, 6/15/2008 (Insured; FGIC) (d)..... 1,000,000 1,016,030
Pennsylvania Turnpike Commission, Turnpike Revenue, Refunding:
5.35%, 12/1/2002 (Insured; FGIC)........................................ 255,000 267,974
5.45%, 12/1/2002........................................................ 500,000 525,505
Pennsylvania University, Refunding 5.55%, 8/15/2007......................... 1,000,000 1,042,310
Philadelphia:
5.70%, 11/15/2006 (Insured; FGIC)....................................... 1,000,000 1,072,010
Gas Works Revenue 4.60%, 8/1/2003 (Insured; MBIA)....................... 500,000 497,575
Water and Wastewater Revenue, Refunding:
4.25%, 6/15/1996...................................................... 500,000 501,560
5.50%, 6/15/2003 (Insured; FGIC)...................................... 1,000,000 1,057,110
5.50%, 6/15/2006...................................................... 250,000 249,795
Philadelphia Hospital and Higher Education Facilities Authority, Revenue:
(Community College) 5.90%, 5/1/2007 (Insured; MBIA)..................... 445,000 479,634
(Graduate Health System) 5.90%, 7/1/2003................................ 500,000 502,700
Refunding (Temple University Hospital) 6.50%, 11/15/2008................ 1,000,000 1,075,420
Philadelphia Municipal Authority, LR, Refunding:
6%, 7/15/2003........................................................... 500,000 517,565
5.40%, 11/15/2006 (Insured; FGIC)....................................... 500,000 520,105
Philadelphia School District 5.75%, 7/1/2007 (Insured; MBIA)................ 600,000 636,822
Pittsburgh Water and Sewer Authority, Water and Sewer Systems Revenue,
Refunding
4.70%, 9/1/2004 (Insured; FGIC)......................................... 300,000 300,513
Pleasant Valley School District, Refunding 5%, 11/15/2006 (Insured; FGIC)... 1,000,000 1,008,960
Robinson Township Municipal Authority, Water and Sewer Revenue, Refunding
5.10%, 5/15/2007 (Insured; FGIC) (d).................................... 1,000,000 1,009,920
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ ______
PENNSYLVANIA (CONTINUED)
Schuylkill County Industrial Development Authority, RRR, Refunding
(Schuylkill Energy Resource, Inc.) 6.50%, 1/1/2010...................... $ 1,295,000 $ 1,330,561
Scranton-Lackawanna Health and Welfare Authority, Revenue, Refunding
(University of Scranton Project) 5.80%, 3/1/2000........................ 500,000 518,985
Southeastern Transportation Authority, Special Revenue
5.875%, 3/1/2009 (Insured; FGIC)........................................ 750,000 793,748
Wilkinsburg Joint Water Authority, Water Revenue
6.15%, 8/15/2006 (Insured; AMBAC, Prerefunded 8/15/2002) (b)............ 500,000 551,230
U.S. RELATED-9.9%
Guam Government 5.625%, 9/1/2002............................................ 1,295,000 1,303,184
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue, Refunding 5%, 7/1/2002................................. 225,000 229,671
Puerto Rico Electric Power Authority, Power Revenue:
5.90%, 7/1/2002......................................................... 250,000 267,835
6%, 7/1/2006............................................................ 225,000 243,311
Refunding:
4.25%, 7/1/1997....................................................... 1,000,000 1,004,540
5.25%, 7/1/2007....................................................... 700,000 707,238
Puerto Rico Housing Bank and Finance Agency, Single Family, Refunding
5%, 12/1/2002........................................................... 300,000 299,475
______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $37,937,247).................... $39,278,407
======
SHORT-TERM MUNICIPAL INVESTMENTS-3.7%
Pennsylvania Higher Educational Facilities Authority, College and
University Revenue, VRDN (Temple University)
3.70% (LOC; Morgan Guaranty Trust Co.) (a,e)............................ $ 1,000,000 $ 1,000,000
Warren County Hospital Authority, Revenue, VRDN (Warren General Hospital
Project)
3.95% (LOC; PNC Bank) (a,e)............................................. 500,000 500,000
______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $1,500,000).................... $ 1,500,000
======
TOTAL INVESTMENTS-100.0%
(cost $39,437,247)...................................................... $40,778,407
======
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
HR Hospital Revenue PCR Pollution Control Revenue
LOC Letter of Credit RRR Resources Recovery Revenue
LR Lease Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ---------------- -------------------
<S> <C> <S> <C>
AAA Aaa AAA 41.9%
AA Aa AA 19.0
A A A 14.4
BBB Baa BBB 18.0
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 3.7
Not Rated (g) Not Rated (g) Not Rated (g) 3.0
-----
100.0%
=====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(c) Purchased on a delayed delivery basis.
(d) Wholly held by the custodian in a segregated account as collateral
for delayed delivery securities.
(e) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $39,437,247)-see statement...................................... $40,778,407
Cash.................................................................... 588,182
Interest receivable..................................................... 567,578
Receivable for shares of Beneficial Interest subscribed................. 154,710
Prepaid expenses........................................................ 38,280
______
42,127,157
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 17,083
Payable for investment securities purchased............................. 1,977,535
Accrued expenses and other liabilities.................................. 53,134 2,047,752
_____ _________
NET ASSETS ................................................................ $40,079,405
======
REPRESENTED BY:
Paid-in capital......................................................... $38,877,016
Accumulated net realized (loss) on investments.......................... (138,771)
Accumulated net unrealized appreciation on investments-Note 3........... 1,341,160
______
NET ASSETS at value applicable to 3,053,772 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $40,079,405
======
NET ASSET VALUE, offering and redemption price per share
($40,079,405 / 3,053,772 shares)........................................ $13.12
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,664,239
EXPENSES:
Management fee-Note 2(a).............................................. $ 184,633
Shareholder servicing costs-Note 2(b)................................. 62,500
Auditing fees......................................................... 21,750
Trustees' fees and expenses-Note 2(c)................................. 14,182
Legal fees............................................................ 11,535
Organization expenses................................................. 11,074
Registration fees..................................................... 9,448
Prospectus and shareholders' reports.................................. 6,857
Custodian fees........................................................ 4,080
Miscellaneous......................................................... 12,339
_____
TOTAL EXPENSES.................................................. 338,398
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)............................................ 191,927
_____
NET EXPENSES.................................................... 146,471
_____
INVESTMENT INCOME-NET........................................... 1,517,768
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (31,441)
Net unrealized appreciation on investments.............................. 2,912,463
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 2,881,022
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,398,790
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED NOVEMBER 30,
________________________________
1994* 1995
______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 806,326 $ 1,517,768
Net realized (loss) on investments...................................... (107,330) (31,441)
Net unrealized appreciation (depreciation) on investments for the year.. (1,571,303) 2,912,463
______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (872,307) 4,398,790
______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (806,326) (1,517,768)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 35,130,538 29,535,143
Dividends reinvested.................................................... 590,723 1,114,040
Cost of shares redeemed................................................. (11,543,635) (16,049,793)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 24,177,626 14,599,390
______ ______
TOTAL INCREASE IN NET ASSETS...................................... 22,498,993 17,480,412
NET ASSETS:
Beginning of year....................................................... 100,000 22,598,993
______ ______
End of year............................................................. $ 22,598,993 $ 40,079,405
====== ======
SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 2,782,274 2,327,964
Shares issued for dividends reinvested.................................. 47,728 87,444
Shares redeemed......................................................... (928,551) (1,271,087)
______ ______
NET INCREASE IN SHARES OUTSTANDING.................................... 1,901,451 1,144,321
====== ======
* From December 16, 1993 (commencement of operations) to November 30,
1994.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED NOVEMBER 30,
----------------------
PER SHARE DATA 1994(1) 1995
---- ----
<S> <C> <C>
Net asset value, beginning of year...................................... $12.50 $11.84
---- ----
INVESTMENT OPERATIONS:
Investment income-net................................................... .61 .63
Net realized and unrealized gain (loss) on investments.................. (.66) 1.28
---- ----
TOTAL FROM INVESTMENT OPERATIONS...................................... (.05) 1.91
---- ----
DISTRIBUTIONS;
Dividends from investment income-net.................................... (.61) (.63)
---- ----
Net asset value, end of year............................................ $11.84 $13.12
---- ----
---- ----
TOTAL INVESTMENT RETURN..................................................... (.60%)(2) 16.47%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. -- .48%
Ratio of net investment income to average net assets.................... 5.19%(2) 4.93%
Decrease reflected in above expense ratios due to
undertaking by the Manager............................................ 1.39%(2) .62%
Portfolio Turnover Rate................................................. 20.13%(3) 5.07%
Net Assets, end of year (000's Omitted)................................. $22,599 $40,079
________________________________________________________________________________________________________________
(1) From December 16, 1993 (commencement of operations) to November 30, 1994.
(2) Annualized.
(3) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Premier Mutual
Fund Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $138,800
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
November 30, 1995. If not applied, $1,400 of the carryover expires in fiscal
2002 and $137,400 expires in fiscal 2003.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken from December 1, 1994 through January 2, 1995, to reimburse all
fees and expenses of the Fund, and thereafter, had undertaken through
November 17, 1995, to reduce other expenses paid by the Fund, to the extent
that the Fund's aggregate expenses (excluding certain expenses as described
above) exceeded specified annual percentages of the Fund's average daily net
assets. The Manager has currently undertaken from November 18, 1995 through
November 30, 1996 to reduce the management fee paid by or reimburse such
excess expenses of the Fund, to the extent that the Fund's aggregate annual
expenses (exclusive of certain expenses as described above) exceed an annual
rate of .80 of 1% of the average daily value of the Fund's net assets. The
expense reimbursement, pursuant to the undertakings, amounted to $191,927 for
the year ended November 30, 1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned
subsidiary of the Manager, serves as the Fund's Transfer and Dividend
Disbursing Agent.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the year ended November 30, 1995, $25,477 was charged to the Fund
pursuant to the Shareholder Services Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended November 30, 1995
amounted to $16,470,772 and $1,480,996, respectively.
At November 30, 1995, accumulated net unrealized appreciation on
investments was $1,341,160, consisting of $1,356,808 gross unrealized
appreciation and $15,648 gross unrealized depreciation.
At November 30, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus Pennsylvania Intermediate Municipal Bond Fund, including the
statement of investments, as of November 30, 1995, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of November 30, 1995 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 Dreyfus Pennsylvania Intermediate Municipal Bond Fund at November
30, 1995, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
January 3, 1996
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
November 30, 1995 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Pennsylvania residents, Pennsylvania
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 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
[Dreyfus lion "d" logo]
DREYFUS PENNSYLVANIA INTERMEDIATE
MUNICIPAL BOND FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 105AR9511
[Dreyfus logo]
Pennsylvania
Intermediate
Municipal
Bond Fund
Annual Report
November 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
_______________________________________________________
| | LEHMAN | |
| | BROTHERS | |
| PERIOD | 10-YEAR | DREYFUS PENNSYLVANIA |
| | MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | MUNICIPAL BOND FUND |
|----------- | ------------ | ---------------------|
| 12/16/93 | 10,000 | 10,000 |
| 2/28/94 | 9,845 | 10,325 |
| 5/31/94 | 9,650 | 10,242 |
| 8/31/94 | 9,808 | 10,435 |
| 11/30/94 | 9,354 | 9,942 |
| 2/28/95 | 10,046 | 10,632 |
| 5/31/95 | 10,517 | 11,097 |
| 8/31/95 | 10,749 | 11,293 |
| 11/30/95 | 11,090 | 11,580 |
|------------------------------------------------------|
*Source: Lehmam Brothers
