YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
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 period ended November 30,
1998. Your Fund produced a total return, including share price changes and
dividend income generated, of 6.76%* and an annualized tax-free distribution
rate per share of 4.31%.**
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year. The U.S. economy cooled enough over the months that the Fed decided to
stand pat. Evidence of economic cooling continued to accumulate and worries
about the world economy intensified. Financial stresses pushed the Fed to ease
beginning in September. After many years of subpar economic growth, continental
Europe moved into a sustained economic expansion. The overall European economy
benefited as interest rates in peripheral countries such as Spain and Italy
fell, approaching the lower level established by Germany, on the eve of currency
unification. Unlike the U.S., Europe has substantial excess capacity of
productive plants and labor. In Asia, weak economies were pervasive as a result
of the Asian financial crisis. The Latin American economies weakened as the
financial stresses spread throughout that region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The drop
in inflation helped the consumer sector as more of the growth in consumer income
was left over after inflation to buy goods and services. Consumers benefited
from a combination of good growth in real income, a strong labor market and past
increases in the prices of assets they owned.
The negative effect of Asian weakness was felt in the industrial sector more
than the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports. One result of the industrial weakness was to cool off a U.S.
economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for
commodity-exporting countries throughout the world. The effect on Europe and the
U.S. has been to lower expectations of profit growth and drive down bond yields.
Monetary policy has begun to ease in Europe as well as the U.S.
Evidence of a weaker world economy accumulated as the financial stresses
continued. A worsened financial crisis occurred between the Russian default in
mid-August and the fallout from the Long-Term Capital Management hedge fund
crisis through early October. However, proactive steps were taken to stabilize
the Japanese banks, design a support package for Brazil and ease monetary
policy. There appears to be a shift in the priorities of key policymakers from
fighting potential inflation to restimulating future world economic growth.
MARKET ENVIRONMENT
Prices moved higher during the reporting period as various classes of
investors found municipal bonds appealing, despite the extent to which equities
vied for investors' attention for most of the period. Low inflation and low
interest rates helped create and maintain a bond-friendly atmosphere. Not to be
overlooked, either, is the improved fiscal posture enjoyed by many states and
municipalities, the result of several years of strong economic growth that
enhanced the creditworthiness of many municipal securities' issuers, and gave
added comfort to investors. The dollar value of newly issued bonds so far in
1998 has surpassed the volume experienced in all but a few previous years. At
$255 billion, it is approximately 29% above the same period last year, but
nonetheless, a dearth of appropriate bonds persists in several states.
Fortunately, the market has absorbed the new issuance without inordinate
volatility in the process. Municipal yields have been, and continue to be, very
favorably aligned vis-a-vis U.S. Treasury Bonds. Historically, longer-term
municipals have been viewed as being good values when their yields approached
80% to 85% of the yields available on comparable Treasuries. Presently, most
measures place the ratio well in excess of 90%. The environment for municipal
bonds still appears to be positive, particularly with the Federal Reserve
Board's Open Market Committee signaling explicitly, by recent cuts in the target
rate for Federal Funds, its preference for lower interest rates.
PORTFOLIO OVERVIEW
From late 1997 through early 1998, the Fund maintained a defensive investment
posture and purchased modest premium bonds, which performed well as the market
declined through April of 1998. By March of 1998, interest rates had risen to a
point where the Fund reversed its strategy and began to purchase deep discount
securities with high 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.
The Fund continued to purchase deep discounts through November of 1998, but
slowed its purchase of these types of bonds in September because the market had
improved past the Fund manager's expectations. By the end of October, the market
had declined to a point where the Fund was aggressively purchasing deep
discounts again. This strategy will remain in place until interest rates fall to
a point where deep discounts can no longer be purchased at attractive yields.
The Fund is constantly selling bonds priced at modest discounts which have
achieved our price objectives and have low declining yields. Certain types of
investors tend to favor this type of bond, so the Fund can frequently take
advantage of this fact when seeking liquidity. Since the Fund is either buying
deep discounts or premiums at attractive yields, it can afford to sell these
issues when they become slight discounts and have achieved our performance
goals.
Lower rated issues remain 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' s one-year total return as of November 30, 1998 of 6.76% compares
favorably to the Lipper Pennsylvania Intermediate Municipal Debt Funds Category
Average of 6.28% . Because the Fund positioned itself defensively in late 1997
and early 1998 when interest rates were low, it was able to take advantage of
the declining market that occurred in the spring of 1998. By repositioning
itself that way again in October 1998, the Fund was also benefited.
Included in this report is a series of detailed statements about your Fund's
holdings and financial condition. We hope you find them 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]
Richard J. Moynihan
Director, Municipal Portfolio Manager
The Dreyfus Corporation
December 15, 1998
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
Income may be subject to state and local income taxes for non-Pennsylvania
residents.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the net asset value
per share at the end of the period, adjusted for any capital gain distributions.
Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND NOVEMBER 30, 1998
- -----------------------------------------------------------------------------
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
$13,859
Dreyfus Pennsylvania Intermediate Municipal Bond Fund
Dollars
$13,561
Lehman Brothers 10-Year Municipal Bond Index*
*Source: Lehman Brothers
Average Annual Total Returns
- -----------------------------------------------------------------------------
One Year Ended From Inception (12/16/93)
November 30, 1998 to November 30, 1998
____________________ __________________________
6.76% 6.80%
- ---------------
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.
The Lehman Brothers 10-Year Municipal Bond Index is not limited to investments
principally in Pennsylvania municipal obligations and does not take into account
charges, fees and other expenses. The Lehman Brothers 10-year Municipal Bond
Index, unlike the Fund, is an unmanaged total return performance benchmark for
the investment-grade, geographically unrestricted 10-year tax exempt bond
market, consisting of municipal bonds with maturities of 9-12 years. These
factors, coupled with the potentially longer maturity of the Index, can
contribute to the Index potentially outperforming or underperforming the Fund.
Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments--98.4% Amount Value
- ------------------------------------------------------- ___________ ___________
<S> <C> <C>
Pennsylvania--89.1%
Allegheny County Hospital Development Authority, Revenue, Refunding
(Magee Women's Hospital):
5.875%, 10/1/2002 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 $ 535,300
6%, 10/1/2005 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,525,000 1,649,776
Berks County, Refunding 5.60%, 11/15/2007 (Insured; FGIC). . . . . . . . . . . . . . . . . 545,000 573,258
Berks County Municipal Authority, Health, Hospital and Nursing Home Revenue,
Refunding (Phoebe-Devitt Homes Project) 5.50%, 5/15/2011 . . . . . . . . . . . . . . . 965,000 962,395
Butler Area Sewer Authority, Sewer Revenue, Refunding:
Zero Coupon, 1/1/2010 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 362,400
Zero Coupon, 7/1/2010 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 354,252
Cambria County, Refunding 5.875%, 8/15/2008 (Insured; FGIC). . . . . . . . . . . . . . . . 850,000 939,981
Cambria Township Water Authority, Industrial User Revenue
6%, 12/1/2002 (LOC; Banque Paribas) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,284,475
Central Dauphin School District 5%, 12/1/2013 (Insured; MBIA). . . . . . . . . . . . . . . 2,500,000 2,566,325
Clinton County Industrial Development Authority, PCR, Refunding
(International Paper Co. Project) 5.375%, 5/1/2004 . . . . . . . . . . . . . . . . . . 500,000 530,305
Dauphin County General Authority, Revenue:
6.25%, 6/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650,000 681,662
6%, 12/1/2006 (LOC; The Sakura Bank Ltd.) . . . . . . . . . . . . . . . . . . . . . . . 785,000 859,536
Delaware County Industrial Development Authority, Revenue, Refunding
(Martins Run Project) 5.60%, 12/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . 750,000 764,032
Downingtown Area School District, Refunding 4.75%, 2/1/2019 (Insured; FSA) (a). . . . . . 2,380,000 2,315,121
Erie School District, Refunding
Zero Coupon, 9/1/2009 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,110,000 691,497
Franklin County Industrial Development Authority, HR, Refunding
(The Chambersburg Hospital) 5.25%, 7/1/2014 (Insured; AMBAC) . . . . . . . . . . . . . 1,075,000 1,102,219
Harrisburgh Authority, Office and Parking Revenue
5.75%, 5/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,215,168
Hempfield School District, Refunding 5.30%, 10/15/2014 (Insured; FGIC) . . . . . . . . . . 1,000,000 1,038,910
Jefferson County Hospital Authority, HR, Refunding
(Brookville Hospital) 7%, 8/1/2002 (Insured; FHA) . . . . . . . . . . . . . . . . . . . 835,000 855,048
Lancaster Area Sewer Authority, Sewer Revenue 4.50%, 4/1/2018. . . . . . . . . . . . . . . 3,000,000 2,834,820
Langhorne Manor Borough Higher Education and Health Authority, Health,
Hospital and Nursing Home Revenue, Refunding (Woods Services Inc.)
4.875%, 11/15/2015 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,310,000 2,296,764
Lebanon County Good Samaritan Hospital Authority, Revenue, Refunding
(Good Samaritan Hospital Project):
5.85%, 11/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845,000 900,331
6%, 11/15/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,599,690
McKeesport Area School District, Refunding
Zero Coupon, 10/1/2009 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 1,070,000 660,629
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ___________ ___________
Pennsylvania (continued)
Montgomery County Higher Education and Health Authority, HR
(Montgomery Hospital Medical Center) 6.60%, 7/1/2010 . . . . . . . . . . . . . . . . . $1,000,000 $ 1,084,240
Norristown, Refunding:
Zero Coupon 12/15/2011 (Insured; AGIC) (a) . . . . . . . . . . . . . . . . . . . . . . 1,465,000 777,622
Zero Coupon 12/15/2013 (Insured; AGIC) (a) . . . . . . . . . . . . . . . . . . . . . . 735,000 344,935
Pennsylvania, COP, Refunding 5.40%, 7/1/2008 (Insured; AMBAC). . . . . . . . . . . . . . . 1,000,000 1,037,780
Pennsylvania Convention Center Authority, Revenue, Refunding 6.25%, 9/1/2004 . . . . . . . 750,000 803,880
Pennsylvania Economic Development Financing Authority, RRR
(Northampton Generating Project) 6.40%, 1/1/2009 . . . . . . . . . . . . . . . . . . . 500,000 529,995
Pennsylvania Finance Authority, Revenue, Refunding
(Municipal Capital Improvements Program) 6.60%, 11/1/2009 . . . . . . . . . . . . . . . 5,280,000 5,898,763
Pennsylvania Higher Educational Facilities Authority:
College and University Revenue (Delaware Valley College of Science and
Agriculture)
6.50%, 4/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,000 896,587
Health Services Revenue, Refunding (Allegheny Delaware Valley)
5.60%, 11/15/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,266,175
Pennsylvania Housing Finance Agency, Single Family Mortgage:
5.95%, 10/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365,000 383,330
6.20%, 4/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,000 430,750
6.20%, 10/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,000 442,659
5.75%, 4/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 422,856
6.10%, 4/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455,000 479,247
5.75%, 10/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415,000 440,049
6.10%, 10/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,000 491,156
Pennsylvania Industrial Development Authority, EDR
7%, 1/1/2006 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,795,000 2,092,431
Pennsylvania Infrastructure Investment Authority, Revenue
(Pennvest Loan Pool Program) 6%, 9/1/2005 (Insured; MBIA) . . . . . . . . . . . . . . . 2,155,000 2,404,312
Philadelphia:
5.70%, 11/15/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,095,880
Airport Revenue (Philadelphia Airport System) 5.75%, 6/15/2008 (Insured; AMBAC) . . . . 1,000,000 1,090,140
Water and Wastewater Revenue, Refunding:
5.50%, 6/15/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,064,920
5.75%, 6/15/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,624,260
Philadelphia Hospitals and Higher Education Facilities Authority, Revenue:
(Childrens Seashore House) 7%, 8/15/2003 . . . . . . . . . . . . . . . . . . . . . . . 650,000 715,312
(Community College) 5.90%, 5/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . 445,000 487,529
Refunding (Temple University Hospital) 6.50%, 11/15/2008 . . . . . . . . . . . . . . . 1,000,000 1,093,760
Philadelphia Municipal Authority, LR, Refunding:
6%, 7/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 519,860
5.40%, 11/15/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 535,550
Philadelphia School District
5.75%, 7/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 648,336
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ___________ ___________
Pennsylvania (continued)
Scranton-Lackawanna Health and Welfare Authority, Revenue, Refunding
(University of Scranton Project) 5.80%, 3/1/2000 . . . . . . . . . . . . . . . . . . . $ 500,000 $ 512,810
Southeastern Transportation Authority, Special Revenue:
6.50%, 3/1/2004 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,676,340
5.875%, 3/1/2009 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 819,637
Upper Allegheny Joint Sanitary Authority, Sewer Revenue
5.70%, 9/1/2005 (Insured; FGIC, Prerefunded 9/1/2002) (b) . . . . . . . . . . . . . . . 1,095,000 1,170,413
Westmoreland County, Refunding:
Zero Coupon, 12/1/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,428,460
Zero Coupon, 12/1/2008 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 1,790,000 1,158,202
Wilkinsburg Joint Water Authority, Water Revenue
6.15%, 8/15/2006 (Insured; AMBAC, Prerefunded 8/15/2002) (b) . . . . . . . . . . . . . 600,000 650,136
York County Hospital Authority, Revenue, Refunding
(Lutheran Social Services Health Center) 6.25%, 4/1/2011 . . . . . . . . . . . . . . . 1,000,000 1,081,630
Yough School District, Refunding
Zero Coupon, 10/1/2007 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 686,060
U.S. Related--9.3%
Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue:
5.40%, 7/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,121,160
5.40%, 7/1/2006 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,242,680
Puerto Rico Electric Power Authority, Power Revenue:
5.90%, 7/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 267,272
6%, 7/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000 248,715
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $69,167,321) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $72,739,723
____________
Short-Term Municipal Investments--4.3%
- -----------------------------------------------------------------------------
Pennsylvania;
Delaware County Industrial Development Authority, PCR, VRDN
(BP Exploration and Oil Inc. Project) 3.30% (c) . . . . . . . . . . . . . . . . . . . $2,000,000 $ 2,000,000
Pennsylvania Higher Educational Facilities Authority, College and University
Revenue,
Refunding, VRDN (Carnegie Mellon University)
3.25% (SBPA; Union Bank of Switzerland, Morgan Guaranty Trust Co.) (c) . . . . . . . . 1,200,000 1,200,000
____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $3,200,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,200,000
____________
TOTAL INVESTMENTS
(cost $72,367,321) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.7% $75,939,723
_______ ____________
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (2.7%) $ (1,977,069)
_______ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $73,962,654
_______ ____________
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AGIC Asset Guaranty Insurance Company LOC Letter of Credit
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
EDR Economic Development Revenue Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreement
HR Hospital Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 57.9%
AA Aa AA 5.6
A A A 18.0
BBB Baa BBB 9.0
F1 MIG1 SP1 4.2
Not Rated (d) Not Rated (d) Not Rated (d) 5.3
_______
100.0%
_______
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Purchased on a delayed-delivery basis.
(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) Securities payable on demand. Variable interest rate--subject to periodic
change.
(d) 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>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1998
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $72,367,321 $75,939,723
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 617,457
Interest receivable . . . . . . . . . . . . . . . . . . . 854,261
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 14,084
____________
77,425,525
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 23,009
Payable for investment securities purchased . . . . . . . 3,384,935
Payable for shares of Beneficial Interest redeemed . . . 10,684
Accrued expenses . . . . . . . . . . . . . . . . . . . . 44,243
____________
3,462,871
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $73,962,654
____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $69,833,795
Accumulated net realized gain (loss) on investments . . . 556,457
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 3,572,402
____________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $73,962,654
____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . 5,386,961
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $13.73
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $3,558,577
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 414,435
Shareholder servicing costs--Note 3(b) . . . . . 117,354
Professional fees . . . . . . . . . . . . . . . . 38,875
Trustees' fees and expenses--Note 3(c) . . . . . 21,471
Prospectus and shareholders' reports . . . . . . 13,138
Registration fees . . . . . . . . . . . . . . . . 11,138
Custodian fees . . . . . . . . . . . . . . . . . 7,571
Loan commitment fees--Note 2 . . . . . . . . . . 405
Miscellaneous . . . . . . . . . . . . . . . . . . 17,339
____________
Total Expenses . . . . . . . . . . . . . . 641,726
Less--reduction in management fee due to
undertaking--Note 3(a) . . . . . . . . . . . . (88,741)
____________
Net Expenses . . . . . . . . . . . . . . . 552,985
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,005,592
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 555,173
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . 952,486
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 1,507,659
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $4,513,251
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
November 30, 1998 November 30, 1997
__________________ __________________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,005,592 $ 2,558,684
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 555,173 172,702
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 952,486 999,341
_______________ _______________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . 4,513,251 3,730,727
_______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,021,270) (2,549,186)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . (25,600) --
_______________ _______________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,046,870) (2,549,186)
_______________ _______________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 15,327,694 20,595,386
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,286,397 1,900,542
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,045,563) (9,121,812)
_______________ _______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . 7,568,528 13,374,116
_______________ _______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . 9,034,909 14,555,657
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,927,745 50,372,088
_______________ _______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,962,654 $ 64,927,745
_______________ _______________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . --- $ 15,678
_______________ _______________
Shares Shares
_______________ _______________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,126,829 1,559,872
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . 167,990 143,586
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (739,218) (693,403)
_______________ _______________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . 555,601 1,010,055
_______________ _______________
SEE NOTES TO FINANCIAL STATEMENTS.
</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.
<TABLE>
<CAPTION>
Year Ended November 30,
_______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994(1)
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . $13.44 $13.18 $13.12 $11.84 $12.50
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . .60 .60 .59 .63 .61
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .30 .26 .06 1.28 (.66)
______ ______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS . . . . . . . . . . . .90 .86 .65 1.91 (.05)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . (.60) (.60) (.59) (.63) (.61)
Dividends from net realized gain on investments . . . . (.01) -- -- -- --
______ ______ ______ ______ ______
TOTAL DISTRIBUTIONS . . . . . . . . . . . . . . . . . . (.61) (.60) (.59) (.63) (.61)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . $13.73 $13.44 $13.18 $13.12 $11.84
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . 6.76% 6.67% 5.10% 16.47% (.60%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . .. .80% .80% .80% .48% --
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.35% 4.52% 4.52% 4.93% 5.19%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . .13% .13% .31% .62% 1.39%(2)
Portfolio Turnover Rate . . . . . . . . . . . . . . . 26.03% 23.94% 53.83% 5.07% 20.13%(3)
Net Assets, end of period (000's Omitted) . . . . . . $73,963 $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, as amended (the "Act") as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide investors with as high a level of current income exempt
from Federal and Pennsylvania income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation (the "Manager") serves as the
Fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. 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. Under the terms of the custody
agreement, the Fund received net earnings credits of $5,021 during the period
ended November 30, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the Fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, if any, 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 Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (" Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
November 30, 1998, the Fund did not borrow under the Facility.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of
. 60 of 1% of the value of the Fund's average daily net assets and is payable
monthly. The Manager had undertaken from December 1, 1997 through November 30,
1998 to reduce the management fee paid by the Fund, to the extent that the
Fund' s aggregate annual expenses (exclusive of taxes, brokerage, interest on
borrowings, commitment fees and extraordinary expenses) exceeded an annual rate
of .80 of 1% of the value of the Fund's average daily net assets. The reduction
in management fee, pursuant to the undertaking, amounted to $88,741 during the
period ended November 30, 1998.
(B) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the Fund's average daily net assets
for certain allocated expenses of providing personal services and/or maintaining
shareholders accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquires
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the period ended
November 30, 1998, the Fund was charged $68,800 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, 1998, the Fund was charged $34,749 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.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(D) A 1% redemption fee is charged and retained by the Fund (including on
redemptions through the use of the Fund Exchanges privilege) on shares redeemed
within fifteen days of their issuance. During the period ended November 30,
1998, redemption fees retained by the Fund amounted to $12.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended November 30, 1998
amounted to $24,786,421 and $17,632,426, respectively.
At November 30, 1998, accumulated net unrealized appreciation on investments
was $3,572,402, consisting of $3,584,752 gross unrealized appreciation and
$12,350 gross unrealized depreciation.
At November 30, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
DREYFUS 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,
including the statement of investments, of Dreyfus Pennsylvania Intermediate
Municipal Bond Fund, as of November 30, 1998, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and financial highlights for
each of the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of November 30, 1998 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, 1998, and
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.
New York, New York
January 6, 1999
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended November 30, 1998:
-- all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are
Pennsylvania residents, Pennsylvania personal income taxes), and
-- the Fund hereby designates $.004 per share as a long-term capital gain
distribution of the $.0053 per share paid on December 4, 1997.
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 1998 calendar year on Form 1099-DIV which will be
mailed by January 31, 1999.
[reg.tm logo]
(reg.tm)
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. 105AR9811
Pennsylvania
Intermediate
Municipal
Bond Fund
Annual Report
November 30, 1998
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
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
11/30/98 13,561 13,859
*Source: Lehman Brothers
