Dreyfus
Pennsylvania
Intermediate
Municipal Bond Fund
ANNUAL REPORT November 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. 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.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
20 Report of Independent Auditors
21 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Pennsylvania Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Pennsylvania
Intermediate Municipal Bond Fund, covering the 12-month period from December 1,
1998 through November 30, 1999. Inside, you'll find valuable information about
how the fund was managed during the reporting period, including a discussion
with the fund's portfolio manager, Douglas Gaylor.
The past year has been challenging for municipal bond investors. Soon after 1999
began, evidence emerged that the U.S. economy was growing more strongly than
many analysts expected. Concerns that inflationary pressures might re-emerge in
a strong economy caused the Federal Reserve Board to raise short-term interest
rates three times during the summer and fall of 1999. Higher interest rates
generally led to erosion of municipal bond prices, especially toward the end of
the reporting period.
Municipal bonds were also generally adversely affected by supply-and-demand
considerations. Recently, however, these technical influences have caused the
yields of tax-exempt bonds to rise to very attractive levels compared to the
after-tax yields of taxable bonds of comparable maturity and credit quality.
This is especially true for investors in the higher federal income tax brackets
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Pennsylvania Intermediate Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
DISCUSSION OF FUND PERFORMANCE
Douglas Gaylor, Portfolio Manager
How did Dreyfus Pennsylvania Intermediate Municipal Bond Fund perform?
For the 12-month period ended November 30, 1999, the fund achieved a -1.30%
total return.(1) In comparison, the Lipper Pennsylvania Intermediate Municipal
Debt Funds Category Average, the Lipper category in which the fund is reported,
achieved a -1.60% total return for the same period.(2)
We attribute the fund's negative return over the past year to declining prices
in the municipal bond market, due to a number of factors, including a rising
interest-rate environment. The fund's relative outperformance is primarily the
result of our security selection strategy, which was designed to help the fund
take advantage of attractive values created by the market's decline.
What is the fund's investment approach?
The fund' s objective is to seek as high a level of federal and Pennsylvania
state tax-exempt income as is practical from a diversified portfolio of
municipal bonds keeping an average maturity of 3-10 years. We also seek a
competitive total return, which includes both income and changes in share price
To achieve these objectives, we conduct rigorous analysis of each individual
bond' s structure. Within the context of our bond structure analyses, we strive
to maximize both income and total return, to the extent consistent with maximum
income.
First, we try to allocate between one-quarter and one-half of the total
portfolio to bonds that we believe have the potential to offer attractive total
returns. We typically look for bonds that are selling at a discount to face
value because they may be temporarily out of favor among investors. Our belief
is that these bonds' prices will rise as they return to favor over time.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Second, for the remainder of the portfolio, we look for bonds that potentially
can provide consistently high current yields. We also try to ensure that we
select bonds that are most likely to obtain attractive prices if and when we
decide to sell them in the secondary market.
What other factors influenced the portfolio's performance?
The portfolio's performance was adversely affected by rising interest rates and
a fall-off in demand from institutional investors over the past year that
created generally reduced liquidity in the municipal market.
Just before the reporting period began on December 1, 1998, investors were
concerned about the potentially adverse economic effects of the global currency
and credit crisis. In response, the Federal Reserve Board reduced short-term
interest rates last fall in an attempt to stimulate global economic growth. Its
strategy apparently was effective, because overseas economies began to recover
early in 1999 and the growth of the U.S. economy was stronger than most analysts
expected. Municipal bond yields and prices stabilized in this environment
In the second and third quarters of 1999, however, strong economic growth in
both domestic and overseas markets raised concerns among fixed-income investors
that inflationary pressures might re-emerge. In response, the Federal Reserve
Board increased short-term interest rates three times during the summer and fall
of 1999 in an attempt to forestall a reacceleration of inflation. This change in
monetary policy caused prices of most bonds to fall.
Municipal bond prices fell substantially for this reason and because of
supply-and-demand influences. For a variety of reasons, institutional investors
such as insurance companies and hedge funds participated less in the tax-exempt
market over the past year, which reduced overall demand and drove municipal bond
prices down significantly. One result has been that municipal bonds -- including
those from Pennsylvania issuers -- are currently offering tax-exempt yields that
compare very favorably with taxable yields after adjusting for taxes. Of course,
this yield increase comes at the cost of having achieved a negative total
return.
What is the portfolio's current strategy?
After the recent market declines, we have focused primarily on positioning the
fund to take advantage of an ensuing market recovery. This is consistent with
our long-term perspective, in which we measure our success over a full
interest-rate cycle. In preparation for the second "leg" of that cycle in a
recovering market, we have focused on tax-exempt securities selling at deep
discounts to their face values. Many of these bonds, in our opinion, have been
punished more severely than circumstances warrant, and we believe they have the
potential to recover strongly when investors once again recognize their
perceived values. Of course, there can be no guarantee when the municipal market
might recover, or how the fund might perform in the future.
As a result of this strategy, the fund' s average duration has lengthened
naturally. While this has made the fund more vulnerable to the adverse effects
of higher interest rates over the short term, we believe that it also positions
us to potentially participate more strongly in the market's recovery if interest
rates moderate over the longer term.
December 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-PENNSYLVANIA RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF
ANY, ARE FULLY TAXABLE. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND
EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT
MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN
ABSORBED, THE FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
FUND PERFORMANCE
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
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 11/30/99
<TABLE>
Inception From
Date 1 Year 5 Years Inception
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<S> <C> <C> <C> <C>
FUND 12/16/93 (1.30)% 6.59% 5.40%
</TABLE>
((+)) SOURCE: BLOOMBERG L.P.
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 $10,000
INVESTMENT MADE IN THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX ON THAT
DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 12/31/93 IS USED AS
THE BEGINNING VALUE ON 12/16/93. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
ARE REINVESTED.
THE FUND INVESTS PRIMARILY IN PENNSYLVANIA MUNICIPAL SECURITIES AND IN GENERAL
MAINTAINS A PORTFOLIO WITH A WEIGHTED-AVERAGE MATURITY RANGING BETWEEN 3 AND 10
YEARS. THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES
AND EXPENSES. THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX IS NOT LIMITED TO
INVESTMENTS PRINCIPALLY IN PENNSYLVANIA MUNICIPAL OBLIGATIONS AND DOES NOT TAKE
INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN BROTHERS 10-YEAR
MUNICIPAL BOND INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE
BENCHMARK FOR THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 10-YEAR
TAX-EXEMPT BOND MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 9-12
YEARS. THESE FACTORS, COUPLED WITH THE POTENTIALLY LONGER MATURITY OF THE INDEX,
CAN CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE
FUND. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
November 30, 1999
<TABLE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.5% Amount ($) Value ($)
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<S> <C> <C>
PENNSYLVANIA--86.4%
Allegheny County Hospital Development Authority,
Revenue:
(Magee Women's Hospital)
5.875%, 10/1/2002 (Insured; FGIC) 500,000 517,875
(UPMC Health Systems)
4.625%, 12/15/2015 (Insured; AMBAC) 1,000,000 854,050
Bangor Area School District:
4.50%, 3/15/2015 (Insured; FSA) 1,400,000 1,202,320
4.50%, 3/15/2016 (Insured; FSA) 1,150,000 978,017
Berks County Municipal Authority, Health, Hospital and
Nursing Home Revenue (Phoebe-Devitt Homes
Project) 5.50%, 5/15/2011 965,000 890,116
Bucks County 5%, 5/1/2017 1,780,000 1,627,828
Butler Area Sewer Authority, Sewer Revenue:
Zero Coupon, 1/1/2010 (Insured; FGIC) 600,000 348,492
Zero Coupon, 7/1/2010 (Insured; FGIC) 100,000 56,538
Cambria County 5.875%, 8/15/2008 (Insured; FGIC) 850,000 891,131
Cambria Township Water Authority, Industrial User
Revenue 6%, 12/1/2002 (LOC; Banque Paribas) 1,250,000 1,262,437
Chester County 5%, 6/15/2015 1,570,000 1,455,359
Clinton County Industrial Development Authority, PCR
(International Paper Co. Project) 5.375%, 5/1/2004 500,000 503,100
Coatsville School District:
4.60%, 10/1/2012 (Insured; FSA) 1,000,000 906,600
4.50%, 10/1/2016 (Insured; FSA) 1,000,000 842,800
Council Rock School District
4.70%, 11/15/2013 (Insured; FGIC) 2,000,000 1,817,640
Dauphin County General Authority, Revenue:
6.25%, 6/1/2001 650,000 661,810
6%, 12/1/2006 (LOC; The Sakura Bank Ltd.) 785,000 788,776
Delaware County Industrial Development Authority,
Revenue (Martins Run Project) 5.60%, 12/15/2002 750,000 742,282
Erie School District
Zero Coupon, 9/1/2009 (Insured; FSA) 1,110,000 657,009
Harrisburgh Authority, Office and Parking Revenue
5.75%, 5/1/2008 1,200,000 1,159,968
Harrisburg Redevelopment Authority
Zero Coupon, 11/1/2016 (Insured; FSA) 2,000,000 734,380
Jefferson County Hospital Authority, HR
(Brookville Hospital) 7%, 8/1/2002 (Insured; FHA) 675,000 689,938
Lancaster Area Sewer Authority, Sewer Revenue
4.50%, 4/1/2018 3,000,000 2,484,480
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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PENNSYLVANIA (CONTINUED)
Langhorne Manor Borough Higher Education and Health
Authority, Health Hospital and Nursing Home
Revenue (Woods Services Inc.)
4.875%, 11/15/2015 (Insured; AMBAC) 2,210,000 1,960,005
Lebanon County Good Samaritan Hospital Authority,
Revenue (Good Samaritan Hospital Project):
5.85%, 11/15/2007 845,000 854,472
6%, 11/15/2009 1,500,000 1,513,185
McKeesport Area School District
Zero Coupon, 10/1/2009 (Insured; FGIC) 1,070,000 636,265
Montgomery County Higher Education and Health
Authority, HR (Montgomery Hospital Medical
Center) 6.60%, 7/1/2010 1,000,000 1,004,140
Montgomery County Industrial Development Authority,
Revenue (Friends Central School Project)
4.75%, 3/1/2016 (Insured; AGIC) 960,000 813,811
Norristown:
Zero Coupon 12/15/2011 (Insured; AGIC) 1,465,000 735,928
Zero Coupon 12/15/2013 (Insured; AGIC) 735,000 321,335
State of Pennsylvania, COP
5.40%, 7/1/2008 (Insured; AMBAC) 1,000,000 1,005,450
Pennsylvania Convention Center Authority, Revenue
6.25%, 9/1/2004 750,000 773,452
Pennsylvania Economic Development Financing
Authority, RRR (Northampton Generating Project)
6.40%, 1/1/2009 2,000,000 2,000,860
Pennsylvania Higher Educational Facilities Authority,
Health Services Revenue (University of
Pennsylvania Health Services) 5.35%, 1/1/2008 3,995,000 3,851,340
Pennsylvania Housing Finance Agency,
Single Family Mortgage:
5.95%, 10/1/2003 365,000 374,943
6.20%, 4/1/2005 410,000 415,351
6.20%, 10/1/2005 420,000 425,918
5.75%, 4/1/2006 400,000 409,288
6.10%, 4/1/2006 455,000 460,788
5.75%, 10/1/2006 415,000 425,155
6.10%, 10/1/2006 465,000 471,296
Pennsylvania Industrial Development Authority, EDR
7%, 1/1/2006 (Insured; AMBAC) 1,795,000 1,987,729
Pennsylvania Infrastructure Investment Authority,
Revenue (Pennvest Loan Pool Program)
6%, 9/1/2005 (Insured; MBIA) 2,155,000 2,289,580
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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PENNSYLVANIA (CONTINUED)
Philadelphia:
5.70%, 11/15/2006 (Insured; FGIC) 370,000 387,153
4.75%, 5/15/2016 (Insured; FGIC) 750,000 654,563
Airport Revenue (Philadelphia Airport System)
5.75%, 6/15/2008 (Insured; AMBAC) 1,000,000 1,032,350
Gas Works Revenue
4.90%, 7/1/2012 (Insured; FSA) 1,000,000 942,410
Water and Wastewater Revenue:
5.50%, 6/15/2003 (Insured; FGIC) 1,000,000 1,030,570
5.75%, 6/15/2013 (Insured; MBIA) 890,000 900,689
Philadelphia Hospitals and Higher Education Facilities
Authority, Revenue:
(Children's Seashore House) 7%, 8/15/2003 650,000 681,902
(Community College) 5.90%, 5/1/2007
(Insured; MBIA) (Prerefunded 5/1/2004) 445,000 (a) 474,330
(Temple University Hospital) 6.50%, 11/15/2008 1,000,000 1,044,930
Philadelphia Municipal Authority, LR:
6%, 7/15/2003 440,000 445,078
5.40%, 11/15/2006 (Insured; FGIC) 500,000 512,900
Pittsburgh 4.60%, 9/1/2012 (Insured; FGIC) 1,600,000 1,451,216
Pittsburgh Water and Sewer Authority, Water and
Sewer System Revenue
5%, 9/1/2017 (Insured; FSA) 1,000,000 908,360
Scranton-Lackawanna Health and Welfare Authority,
Revenue (University of Scranton Project)
5.80%, 3/1/2000 500,000 501,850
Southeast Pennsylvania Transportation Authority,
Special Revenue:
6.50%, 3/1/2004 (Insured; FGIC) 1,415,000 1,513,427
6.50%, 3/1/2004
(Insured; FGIC) (Escrowed to Maturity) 85,000 91,150
5.875%, 3/1/2009
(Insured; FGIC) (Prerefunded 3/1/2005) 750,000 (a) 795,869
Westmoreland County:
Zero Coupon, 12/1/2006 (Insured; FGIC) 1,500,000 1,050,630
Zero Coupon, 12/1/2008 (Insured; FGIC) 1,790,000 1,113,792
York County Hospital Authority, Revenue (Lutheran
Social Services Health Center) 6.25%, 4/1/2011 1,000,000 969,550
Yough School District
Zero Coupon, 10/1/2007 (Insured; FGIC) 1,000,000 667,780
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED--12.1%
Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue:
5.40%, 7/1/2006 2,000,000 2,037,480
5.40%, 7/1/2006 (Insured; FSA) 6,000,000 6,112,380
Puerto Rico Electric Power Authority, Power Revenue:
5.90%, 7/1/2002 250,000 258,783
6%, 7/1/2006 225,000 238,601
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TOTAL INVESTMENTS
(cost $71,589,835) 98.5% 70,620,980
CASH AND RECEIVABLES (NET) 1.5% 1,055,558
NET ASSETS 100.0% 71,676,538
Summary of Abbreviations
AGIC Asset Guaranty Insurance Company HR Hospital Revenue
AMBAC American Municipal Bond LOC Letter of Credit
Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors
EDR Economic Development Revenue Assurance Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance Company
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 57.3
AA Aa AA 11.2
A A A 14.6
BBB Baa BBB 12.9
Not Rated (b) Not Rated (b) Not Rated (b) 4.0
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 71,589,835 70,620,980
Cash 123,143
Interest receivable 1,024,919
Receivable for shares of Beneficial Interest subscribed 1,600
Prepaid expenses 8,473
71,779,115
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 30,973
Payable for shares of Beneficial Interest redeemed 33,513
Accrued expenses 38,091
102,577
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NET ASSETS ($) 71,676,538
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 72,297,251
Accumulated net realized gain (loss) on investments 348,142
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (968,855)
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NET ASSETS ($) 71,676,538
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
5,567,318
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 12.87
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended November 30, 1999
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INVESTMENT INCOME ($):
INTEREST INCOME 3,849,525
EXPENSES:
Management fee--Note 3(a) 443,145
Shareholder servicing costs--Note 3(b) 117,231
Professional fees 47,121
Trustees' fees and expenses--Note 3(c) 19,096
Prospectus and shareholders' reports 16,397
Registration fees 13,333
Custodian fees 8,592
Loan commitment fees--Note 2 312
Miscellaneous 12,061
TOTAL EXPENSES 677,288
Less--reduction in management fee due to
undertaking--Note 3(a) (85,968)
NET EXPENSES 591,320
INVESTMENT INCOME--NET 3,258,205
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments 341,668
Net unrealized appreciation (depreciation) on investments (4,541,257)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (4,199,589)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (941,384)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
----------------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 3,258,205 3,005,592
Net realized gain (loss) on investments 341,668 555,173
Net unrealized appreciation (depreciation)
on investments (4,541,257) 952,486
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (941,384) 4,513,251
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (3,258,205) (3,021,270)
Net realized gain on investments (549,983) (25,600)
TOTAL DIVIDENDS (3,808,188) (3,046,870)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 14,084,828 15,327,694
Dividends reinvested 2,861,905 2,286,397
Cost of shares redeemed (14,483,277) (10,045,563)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS 2,463,456 7,568,528
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,286,116) 9,034,909
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 73,962,654 64,927,745
END OF PERIOD 71,676,538 73,962,654
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,054,909 1,126,829
Shares issued for dividends reinvested 214,970 167,990
Shares redeemed (1,089,522) (739,218)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 180,357 555,601
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods
indicated.Total return shows how much your investment in the fund would have
increased (or decreased) during each period assuming you had reinvested all
dividends and distributions.These figures have been derived from the fund's
financial statements.
<TABLE>
Year Ended November 30,
------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period ($) 13.73 13.44 13.18 13.12 11.84
Investment Operations:
Investment income--net .59 .60 .60 .59 .63
Net realized and unrealized
gain (loss) on investments (.76) .30 .26 .06 1.28
Total from Investment Operations (.17) .90 .86 .65 1.91
Distributions:
Dividends from investment income--net (.59) (.60) (.60) (.59) (.63)
Dividends from net realized gain
on investments (.10) (.01) -- -- --
Total Distributions (.69) (.61) (.60) (.59) (.63)
Net asset value, end of period 12.87 13.73 13.44 13.18 13.12
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (1.30) 6.76 6.67 5.10 16.47
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .80 .80 .80 .80 .48
Ratio of net investment income
to average net assets 4.41 4.35 4.52 4.52 4.93
Decrease reflected in above expense ratios
due to undertakings by the Manager .12 .13 .13 .31 .62
Portfolio Turnover Rate 45.37 26.03 23.94 53.83 5.07
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 71,677 73,963 64,928 50,372 40,079
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The 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., which is a wholly-owned subsidiary of Mellon Financial Corporation.
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 $7,522 during the period
ended November 30, 1999 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
November 30, 1999, 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, 1998 through November 30, 1999 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 $85,968 during the period ended November 30, 1999.
(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, 1999, the fund was charged $68,000 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, 1999, the fund was charged $33,720 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 shares redeemed
within fifteen days of their issuance, including on redemptions through the use
of the fund exchanges privilege. During the period ended November 30, 1999,
redemption fees retained by the fund amounted to $22.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended November 30, 1999, amounted to
$34,549,998 and $32,690,839, respectively.
At November 30, 1999, accumulated net unrealized depreciation on investments was
$968,855, consisting of $822,733 gross unrealized appreciation and $1,791,588
gross unrealized depreciation.
At November 30, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees Dreyfus 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, 1999, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and 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, 1999 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Pennsylvania Intermediate Municipal Bond Fund at November 30, 1999, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with generally accepted
accounting principles.
New York, New York
January 7, 2000
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended November 30, 1999:
--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 $.0811 per share as a long-term
capital gain distribution of the $.0910 per share paid on December 9, 1998 and
also designates $.0100 per share as a long-term capital gain distribution of the
$.0104 per share paid on July 15, 1999.
As required by Federal tax law rules, shareholders will receive notification of
their portion of the fund' s taxable ordinary dividends and capital gains
distributions paid for the 1999 calendar year on Form 1099-DIV which will be
mailed by January 31, 2000.
The Fund
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 105AR9911
