DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus
Pennsylvania Intermediate Municipal Bond Fund. For the 12-month reporting
period ended November 30, 1997, your Fund produced a total return, including
share price changes and dividend income, of 6.67%.* The Fund's tax-free
distribution rate per share for the reporting period was 4.45%.**
Economic Review
Almost everything went right for the U.S. economy over the reporting
period. In its seventh year of expansion, the economy showed no sign of an
upsurge in inflation resulting from tightening labor markets. With the
unemployment rate at its lowest level in almost a decade, investors had been
concerned that wage gains might result in higher levels of inflation and
cause the Federal Reserve Board (the "Fed") to again raise interest rates.
Given the longevity of our economic recovery, the Fed's monetary policymakers
apparently were hoping that a cyclical easing in the economic growth rate
would help dampen any incipient inflationary pressure. Recent turmoil in the
financial markets of Asia and Latin America has raised prospects for a
slowdown in U.S. exports as those nations shore up their financial systems.
If this were to occur, the diminished demand for U.S. goods overseas could be
a drag on domestic economic growth. What is all but certain is that the Fed
is reluctant to further unsettle world financial markets by raising interest
rates over the near term.
Indicators of future economic conditions showed high levels of consumer
optimism and pointed toward continued growth. Consumers' spirits have been
lifted by an unemployment rate at a quarter-century low (4.7% at the end of
the reporting period), and core inflation, which excludes food and energy
price changes, at the 2% level. The Conference Board, a business-sponsored
research group, recently reported that its Consumer Confidence Index hit a
new high for this economic expansion. Since consumers account for two thirds
of all economic activity, their confidence in the economy is an important
indicator of future conditions. Another important index of future economic
conditions, the Index of Leading Economic Indicators (also a Conference Board
index), implied continued growth. Government reports of personal income and
consumer spending showed healthy rates of increase as well.
The production side of the economy continued its robust advance.
Industrial output rose consistently, and while the factory utilization rate
(a potential harbinger of production bottlenecks and price pressures) also
increased, there was little evidence of producer-generated inflation.
Additional good news regarding inflation came from the report that the
productivity of U.S. workers rose at its fastest pace in five years during
the third quarter of 1997. This increase in worker efficiency helped push down
unit labor costs and eased concerns that labor costs, despite the tight
labor market, would lead to higher inflation.
The interplay between worker productivity and worker wage increases does
much in determining the future course of inflation. We continue to monitor
that closely, along with developments in the international financial arena.
The recent international turbulence underscored the close economic
relationships that exist among all countries, particularly in this age of
multinational companies and pervasive global capitalism.
Market Environment
The supply of new issues in Pennsylvania having intermediate maturities
has been rather modest over the last year, but whenever a small issue has
been attractively priced, the Fund has participated. On the other hand,
because demand has remained strong due to low secondary supply, the Fund has
been able to slowly sell bonds which had achieved our price goals. When the
municipal bond market becomes weak, the secondary supply of intermediate
Pennsylvania issues usually increases because national intermediate bond
funds will sell Pennsylvania issues when they need to raise cash. While
demand exceeds supply, national funds will try to dispose of Pennsylvania
issues. If the market continues to decline, supply
will quickly exceed demand and the Fund would then be able to purchase bonds
at attractive levels. The Fund intends to continue to purchase both primary
and secondary issues that represent value when they become available.
Intermediate municipals are currently very cheap when compared to the
ten-year U.S. Government note market. Supply normally declines as we approach
the end of the year, while demand should increase because of heavy interest
payments and bond maturities on January 1, 1998.
Portfolio Overview
Interest rates were fairly low in late 1996 and early 1997, so the Fund
maintained a defensive posture and purchased premium bonds which were
expected to perform well in a declining market. In the spring of 1997, when
interest rates rose, the Fund reversed its strategy and purchased deep
discount securities with short calls and higher yields. These bonds
represented excellent value because they were out of favor with many
institutional fund managers, and were purchased at a substantial discount
when compared to the rest of the municipal market. By June of 1997, interest
rates had fallen and the Fund's strategy reverted back to buying bonds at a
moderate premium. This strategy has remained in place with the exception of
an occasional purchase of a deep discount with an attractive yield.
The Fund is constantly selling bonds priced at modest discounts which
have achieved our price objective and are yielding a low return. Certain
types of investors tend to favor this type of bond, so the Fund can
frequently take advantage of this situation.
Lower rated issues remain very expensive when compared to higher rated
securities. The Fund continues to take advantage of this tight spread
relationship by favoring higher rated securities which are traditionally more
liquid. This strategy will give the Fund more flexibility to react to a weak
market which can experience liquidity constraints.
The Fund had a one-year total return on November 30, 1997 of 6.67%, which
compares favorably to the Lipper Pennsylvania Intermediate Municipal Bond
Category average of 5.56%. Because the Fund positioned itself defensively in
late 1996 when interest rates were low, it was able to take advantage of the
declining market that occurred in the spring of 1997 by purchasing issues
which were undervalued.
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
The Dreyfus Corporation
December 18, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid. Income is subject to state and local taxes for non-Pennsylvania
residents.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the net asset value per
share at the end of the period. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND NOVEMBER 30, 1997
[Exhibit A]
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
$12,982
Dreyfus Pennsylvania
Intermediate Municipal
Bond Fund
Dollars
$12,544
Lehman Brothers
10-Year Municipal
Bond Index*
*Source: Lehman Brothers
[Exhibit A]
Average Annual Total Returns
One Year Ended From Inception (12/16/93)
November 30, 1997 to November 30, 1997
____________________ __________________________
6.67% 6.81%
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 9-12 years. The Index does not take into
account charges, fees and other expenses and is not limited to investments
principally in Pennsylvania municipal obligations. These factors, coupled
with the potentially longer maturity of the Index, can contribute to the
Index potentially outperforming the Fund. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1997
Principal
Long-Term Municipal Investments-98.5% Amount Value
_______________________________________________________________________________ ______________ ______________
<S> <C> <C>
Pennsylvania-88.1%
Allegheny County Hospital Development Authority, Revenue, Refunding
(Magee Womens Hospital):
5.875%, 10/1/2002 (Insured; FGIC)................................. $ 500,000 $ 534,060
6%, 10/1/2005 (Insured; FGIC)........................................... 1,525,000 1,645,231
Berks County, Refunding 5.60%, 11/15/2007 (Insured; FGIC)................... 545,000 566,969
Butler Area Sewer Authority, Sewer Revenue, Refunding:
Zero Coupon, 1/1/2010 (Insured; FGIC) (a)................................. 600,000 324,822
Zero Coupon, 7/1/2010 (Insured; FGIC) (a)................................. 600,000 316,680
Cambria County, Refunding 5.875%, 8/15/2008 (Insured; FGIC)................. 850,000 917,524
Cambria Township Water Authority, Industrial User Revenue
6%, 12/1/2002 (LOC; Banque Paribas) (b)................................... 1,250,000 1,297,537
Clinton County Industrial Development Authority, PCR, Refunding
(International Paper Co. Project) 5.375%, 5/1/2004........................ 500,000 530,540
Dauphin County General Authority, Revenue:
6.25%, 6/1/2001........................................................... 650,000 687,615
4.45%, 9/1/2001 (Insured; AMBAC).......................................... 3,000,000 3,010,110
6%, 12/1/2006 (LOC; The Sakura Bank Ltd., Prerefunded 6/1/2001) (b,c)..... 785,000 823,857
Delaware County Industrial Development Authority, Revenue, Refunding
(Martins Run Project) 5.60%, 12/15/2002................................... 750,000 760,147
Hampton Township School District
6.75%, 11/15/2021 (Insured; AMBAC, Prerefunded 11/15/2004) (c)............ 1,000,000 1,137,380
Hempfield School District, Refunding 5.30%, 10/15/2014 (Insured; FGIC) (a).. 1,000,000 1,005,320
Jefferson County Hospital Authority, HR, Refunding
(Brookville Hospital) 7%, 8/1/2002 (Insured; FHA)......................... 1,000,000 1,047,980
Lebanon County Good Samaritan Hospital Authority, Revenue, Refunding
(Good Samaritan Hospital Project):
5.85%, 11/15/2007....................................................... 845,000 885,737
6%, 11/15/2009.......................................................... 1,500,000 1,567,710
McKeesport Area School District, Refunding
Zero Coupon, 10/1/2009 (Insured; FGIC).................................... 1,070,000 596,910
Montgomery County Higher Education and Health Authority, HR
(Montgomery Hospital Medical Center) 6.60%, 7/1/2010...................... 1,000,000 1,069,120
Northeastern Hospital and Education Authority, College Revenue
(Luzerne County Community College)
6.20%, 8/15/2005 (Insured; AMBAC, Prerefunded 2/15/2005) (c).............. 500,000 552,310
Pennsylvania, COP, Refunding 5.40%, 7/1/2008 (Insured; AMBAC)............... 1,000,000 1,035,180
Pennsylvania Convention Center Authority, Revenue, Refunding 6.25%, 9/1/2004 750,000 802,470
Pennsylvania Economic Development Financing Authority, RRR
(Northampton Generating Project) 6.40%, 1/1/2009.......................... 500,000 518,860
Pennsylvania Finance Authority, Revenue, Refunding
(Municipal Capital Improvements Program) 6.60%, 11/1/2009................. 2,600,000 2,862,418
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______________________________________________________________________________ ______________ ___________
Pennsylvania (continued)
Pennsylvania Higher Educational Facilities Authority:
College and University Revenue (Delaware Valley College of Science and
Agriculture)
6.50%, 4/1/2008......................................................... $ 790,000 $ 846,019
Health Services Revenue, Refunding (Allegheny Delaware Valley)
5.60%, 11/15/2010 (Insured; MBIA)....................................... 1,250,000 1,334,450
Pennsylvania Housing Finance Agency, Single Family Mortgage:
5.95%, 10/1/2003.......................................................... 365,000 380,381
6.20%, 4/1/2005........................................................... 410,000 425,281
6.20%, 10/1/2005.......................................................... 420,000 436,506
5.75%, 4/1/2006........................................................... 400,000 416,216
6.10%, 4/1/2006........................................................... 455,000 471,580
5.75%, 10/1/2006.......................................................... 415,000 432,625
6.10%, 10/1/2006.......................................................... 465,000 482,740
Pennsylvania Industrial Development Authority, EDR
7%, 1/1/2006 (Insured; AMBAC)............................................. 1,795,000 2,088,500
Pennsylvania Infrastructure Investment Authority, Revenue
(Pennvest Loan Pool Program) 6%, 9/1/2005 (Insured; MBIA)................. 2,155,000 2,367,505
Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue
5.50%, 12/1/2012 (Insured; AMBAC)......................................... 3,000,000 3,103,320
Philadelphia:
5.70%, 11/15/2006 (Insured; FGIC)......................................... 1,000,000 1,080,090
Airport Revenue (Philadelphia Airport System) 5.75%, 6/15/2008 (Insured;
AMBAC) 1,000,000 1,068,890
Water and Wastewater Revenue, Refunding:
5.50%, 6/15/2003 (Insured; FGIC)........................................ 1,000,000 1,054,100
5.75%, 6/15/2013 (Insured; MBIA)........................................ 1,500,000 1,558,500
Philadelphia Hospitals and Higher Education Facilities Authority, Revenue:
(Community College) 5.90%, 5/1/2007 (Insured; MBIA)....................... 445,000 482,349
(Northwestern Corp.) 7%, 6/1/2012......................................... 1,530,000 1,658,979
Refunding (Temple University Hospital) 6.50%, 11/15/2008.................. 1,000,000 1,112,890
Philadelphia Municipal Authority, LR, Refunding:
6%, 7/15/2003............................................................. 500,000 514,240
5.40%, 11/15/2006 (Insured; FGIC)......................................... 500,000 526,750
Philadelphia School District:
5.35%, 7/1/2003 (Insured; MBIA)........................................... 1,350,000 1,412,222
5.75%, 7/1/2007 (Insured; MBIA)........................................... 600,000 638,640
Scranton-Lackawanna Health and Welfare Authority, Revenue, Refunding
(University of Scranton Project) 5.80%, 3/1/2000.......................... 500,000 515,125
Southeastern Transportation Authority, Special Revenue:
6.50%, 3/1/2004 (Insured; FGIC)........................................... 1,500,000 1,667,100
5.875%, 3/1/2009 (Insured; FGIC).......................................... 750,000 802,748
Upper Allegheny Joint Sanitary Authority, Sewer Revenue
5.70%, 9/1/2005 (Insured; FGIC) (d)....................................... 1,095,000 1,153,035
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______________________________________________________________________________ ______________ ___________
Pennsylvania (continued)
Westmoreland County, Refunding:
Zero Coupon, 12/1/2006 (Insured; FGIC).................................... 2,000,000 1,314,920
Zero Coupon, 12/1/2008 (Insured; FGIC).................................... $ 1,790,000 $ 1,051,679
Wilkinsburg Joint Water Authority, Water Revenue
6.15%, 8/15/2006 (Insured; AMBAC, Prerefunded 8/15/2002) (c).............. 600,000 647,256
York County Hospital Authority, Revenue, Refunding
(Lutheran Social Services Health Center) 6.25%, 4/1/2011.................. 1,000,000 1,050,230
Yough School District, Refunding
Zero Coupon, 10/1/2007 (Insured; FGIC).................................... 1,000,000 627,600
U.S. Related-10.4%
Puerto Rico Commonwealth Highway and Transportation Authority, Highway
Revenue:
5.40%, 7/1/2006........................................................... 2,000,000 2,065,180
5.40%, 7/1/2006 (Insured; FSA)............................................ 4,000,000 4,202,360
Puerto Rico Electric Power Authority, Power Revenue:
5.90%, 7/1/2002........................................................... 250,000 266,443
6%, 7/1/2006.............................................................. 225,000 245,455
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $61,378,475).................... $ 63,998,391
==============
Short-Term Municipal Investments-1.5%
______________________________________________________________________________
Pennsylvania:
Beaver County Industrial Development Authority, Environmental Improvement
Revenue, VRDN
(BASF Corp. Project) 3.90% (e) (cost $1,000,000).......................... $ 1,000,000 $ 1,000,000
==============
TOTAL INVESTMENTS-100.0% (cost $62,378,475)................................. $ 64,998,391
==============
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
Summary of Abbreviations
_____________________________________________________________________________________________________________________
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation LR Lease Revenue
EDR Economic Development Revenue MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance RRR Resources Recovery Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
_____________________________________________________________________________________________________________________
Fitch (f) or Moody's or Standard & Poor's Percentage of Value
_______ _______ _________________ ___________________
<S> <C> <C> <C>
AAA Aaa AAA 62.9%
AA Aa AA 4.7
A A A 13.2
BBB Baa BBB 13.7
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 3.5
Not Rated (g) Not Rated (g) Not Rated (g) 2.0
______
100.0%
======
Notes to Statement of Investments:
(a) Purchased on a delayed-delivery basis.
(b) Secured by letters of credit.
(c) 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 date.
(d) Wholly held by the custodian in a segregated account as collateral
for delayed-delivery securities.
(e) Security 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 and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1997
Cost Value
______________ ______________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investm $ 62,378,475 $ 64,998,391
Cash....................................... 765,382
Interest receivable........................ 949,148
Receivable for shares of Beneficial Interest subscribed.... 5,348
Prepaid expenses........................... 6,192
______________
66,724,461
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates....... 23,886
Payable for investment securities purchased......... 1,639,680
Payable for shares of Beneficial Interest redeemed... 100,299
Accrued expenses........................... 32,851
______________
1,796,716
______________
NET ASSETS.................................................................. $ 64,927,745
==============
REPRESENTED BY: Paid-in capital............................ $ 62,265,267
Accumulated undistributed investment income-net.... 15,678
Accumulated net realized gain (loss) on investments..... 26,884
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4....... 2,619,916
______________
NET ASSETS.................................................................. $ 64,927,745
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 4,831,360
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $13.44
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1997
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income......................... $ 3,012,638
EXPENSES: Management fee-Note 3(a)................... $ 339,956
Shareholder servicing costs-Note 3(b)...... 77,030
Auditing fees.............................. 24,130
Registration fees.......................... 22,657
Trustees' fees and expenses-Note 3(c)...... 18,939
Legal fees................................. 17,298
Custodian fees............................. 6,105
Prospectus and shareholders' reports....... 4,286
Loan commitment fees-Note 2................ 679
Miscellaneous.............................. 17,349
______________
Total Expenses....................... 528,429
Less-reduction in management fee due to
undertaking-Note 3(a).................. (74,475)
______________
Net Expenses...................... 453,954
______________
INVESTMENT INCOME-NET....................................................... 2,558,684
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 172,702
Net unrealized appreciation (depreciation) on investments.... 999,341
______________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 1,172,043
______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 3,730,727
==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
November 30, 1997 November 30, 1996
_________________ ___________________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 2,558,684 $ 2,013,427
Net realized gain (loss) on investments............................. 172,702 (7,047)
Net unrealized appreciation (depreciation) on investments........... 999,341 279,415
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations... 3,730,727 2,285,795
______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (2,549,186) (2,007,247)
______________ ______________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....................................... 20,595,386 20,981,606
Dividends reinvested................................................ 1,900,542 1,444,865
Cost of shares redeemed............................................. (9,121,812) (12,412,336)
______________ ______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions.... 13,374,116 10,014,135
______________ ______________
Total Increase (Decrease) in Net Assets......................... 14,555,657 10,292,683
NET ASSETS:
Beginning of Period................................................. 50,372,088 40,079,405
______________ ______________
End of Period....................................................... $ 64,927,745 $ 50,372,088
============== ==============
Undistributed investment income-net................................... $ 15,678 $ 6,180
______________ ______________
Shares Shares
______________ ______________
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 1,559,872 1,611,905
Shares issued for dividends reinvested.............................. 143,586 111,215
Shares redeemed..................................................... (693,403) (955,587)
______________ ______________
Net Increase (Decrease) in Shares Outstanding..................... 1,010,055 767,533
============== ==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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 period indicated. This
information has been derived from the Fund's financial statements.
Year Ended November 30,
_______________________________________
PER SHARE DATA: 1997 1996 1995 1994(1)
______ ______ ______ ______
<S> <C> <C> <C> <C>
Net asset value, beginning of period................... $13.18 $13.12 $11.84 $12.50
______ ______ ______ ______
Investment Operations:
Investment income-net.................................. .60 .59 .63 .61
Net realized and unrealized gain (loss)
on investments....................................... .26 .06 1.28 (.66)
______ ______ ______ ______
Total from Investment Operations....................... .86 .65 1.91 (.05)
______ ______ ______ ______
Distributions:
Dividends from investment income-net................... (.60) (.59) (.63) (.61)
______ ______ ______ ______
Net asset value, end of period......................... $13.44 $13.18 $13.12 $11.84
====== ====== ====== ======
TOTAL INVESTMENT RETURN.................................... 6.67% 5.10% 16.47% (.60%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ .80% .80% .48% -
Ratio of net investment income
to average net assets................................ 4.52% 4.52% 4.93% 5.19%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager................... .13% .31% .62% 1.39%(2)
Portfolio Turnover Rate................................ 23.94% 53.83% 5.07% 20.13%(3)
Net Assets, end of period (000's Omitted).............. $64,928 $50,372 $40,079 $22,599
_____________________________
(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:
Dreyfus Pennsylvania Intermediate Municipal Bond Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide investors with as high a level of current income
exempt from Federal and Pennsylvania income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. is the distributor of the Fund's
shares, which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-BANK LINE OF CREDIT:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended
November 30, 1997, the Fund did not borrow under the Facility.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .60 of 1% of the value of the Fund's
average daily net assets and is payable monthly. The Manager has undertaken
from December 1, 1996 through November 30, 1997 to reduce the management fee
paid by the Fund, to the extent that the Fund's aggregate annual expenses
(exclusive of taxes, brokerage, interest on borrowings, commitment fees and
extraordinary expenses) exceed an annual rate of .80 of 1% of the value of
the Fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking amounted to $74,475 during the period ended
November 30, 1997.
(b) Under the Shareholder Services Plan, the Fund reimburses Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, an amount not
to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholders accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended November 30, 1997, the Fund was charged $41,582
pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended November 30, 1997, the Fund was charged $33,239 pursuant to the
transfer agency agreement.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended November
30, 1997, redemption fees amounted to $39.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended November 30, 1997
amounted to $26,773,806 and $13,234,291, respectively.
At November 30, 1997, accumulated net unrealized appreciation on
investments was $2,619,916, consisting of $2,635,564 gross unrealized
appreciation and $15,648 gross unrealized depreciation.
At November 30, 1997, 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, 1997, and the related statements
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of November 30, 1997 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, 1997, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[ERNST & YOUNG LLP signature logo]
New York, New York
January 8, 1998
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, 1997 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 and
capital gain distributions paid for the 1997 calendar year on Form 1099-DIV
which will be mailed by January 31, 1998.
Registration Mark
[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 105AR9711
Pennsylvania
Intermediate
Municipal
Bond Fund
Annual Report
November 30, 1997
Registration Mark
[Dreyfus logo]
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 DREYFUS
BROTHERS PENNSYLVANIA
PERIOD 10-YEAR INTERMEDIATE
MUNICIPAL MUNICIPAL
BOND INDEX * BOND FUND
12/16/93 10,000 10,000
11/30/94 9,354 9,942
11/30/95 11,090 11,580
11/30/96 11,717 12,170
11/30/97 12,544 12,982
*Source: Lehman Brothers