For yield, price, last transaction,
and current balance, 24 hours,
7 days a week, call:
1-800-638-2587 toll free
625-7676 Baltimore area
For assistance with your existing fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus of the T. Rowe Price Summit
Municipal Funds.
Invest With Confidence(registered trademark)
T. Rowe Price
SUMUN
Annual Report
T. Rowe Price
Summit Municipal Funds
October 31, 1995
Fellow Shareholders
During the past 12 months, bond prices rallied and yields fell sharply as the
economy slowed from the brisk pace set in 1994. While the municipal market
also rallied strongly, yields did not fall as much as on taxable bonds,
although intermediate- and long-term municipals enjoyed good relative returns.
Market Environment
Yields started to decline in November 1994. However, the economy continued to
show significant strength in the final quarter of 1994, prompting the Federal
Reserve to raise the key fed funds rate target to 6% in early February 1995,
the seventh such move in a year.
The Fed's tighter monetary policy finally appeared to be taking hold, as
economic growth cooled to a 1.3% annualized rate in the second quarter. As
signs of slowing continued, yields declined and bond prices moved higher. The
yield on the benchmark 30-year Treasury bond fell 163 basis points (100 basis
points is one percent), from 7.96% a year ago to 6.33% at the end of our
fiscal year on October 31, 1995.
The yield on the AAA 30-year general obligation (GO) bonds declined only
90 basis points to 5.6% on October 31 from 6.5% a year earlier. The rally in
the tax-exempt sector was slightly subdued due to uncertainty surrounding tax
reform. The municipal yield curve flattened during the year as money market
rates fell less than long-term rates.
Despite continuing tax reform discussions, municipals were resilient.
The slowing economy was the major impetus behind the powerful rally. Also, for
the second year running, the supply of new municipal securities was low. New
issuance totaled $119 billion this year through October 31, compared with $142
billion over the same period last year-a decline of 16% from an already low
level.
CHART 1: Municipal Bond and Note Yields
One benefit of the speculation over tax reform was the resulting
opportunity for investors to buy tax-exempt securities at attractive yields
relative to Treasuries. For example, on October 31, long-term AAA-rated
municipal bond yields were 88% of long-term Treasury yields, making them
appealing to taxpayers in brackets above 12%.
Market Strategy
The Money Market Fund lengthened its weighted average maturity during
September and October to 66 days by quarter-end, compared with the peer group
average of 52 days. Our continuing aggressive posture reflects our belief that
the Federal Reserve will eventually ease further given the current rate of
economic growth, low inflation, and the possibility of progress in balancing
the budget. Furthermore, reduced supply in the short-term tax-exempt market
supports our longer maturity posture.
Tax-exempt short-term yields have traded in a narrow range in the past
three months, with the six-month yield of 3.75% only 10 basis points higher
than at the end of July. During the past year, the short-term yield curve
flattened significantly as the one-year yield declined 30 basis points to
3.90%, while daily and weekly yields rose 50 basis points. As a result,
one-year note investors earned a meager 15 basis points more than those who
invested continuously in overnight paper in the quarter. To put this in
perspective, a year ago the same investors would have been paid over 100 basis
points more for extending maturities from overnight to one year.
In light of the flat money market yield curve, we concentrated
investments in both the very short and very long ends of the money market
maturity range. The longer maturities allowed us to capture yields that would
no longer be available if the Fed were to ease again. The short maturities
generate relatively high income for such liquid, overnight paper.
The fund outperformed its peer group average during both the last
quarter and over the fiscal year. According to Lipper Analytical Services,
your fund finished in the top 10% of similar funds for the year ended October
31, 1995.
Performance Comparison
Periods Ended 10/31/95
3 Months 12 Months
_________ _________
Municipal Money
Market Fund 0.85% 3.53%
IBC/Donoghue Money
Fund Report Average* 0.81 3.31
* Stockbroker and General Purpose Funds
The Intermediate Fund was up 11.39% this year compared with 0.18% in
fiscal 1994. We positioned the fund more aggressively in 1995 to take
advantage of the move toward lower interest rates brought on by the slowing
economy. On October 31 of last year, the fund's duration was 4.5 years and its
weighted average maturity 7.0 years. By June 30, 1995, we had extended these
measures to 5.6 years and 8.6 years, respectively.
Over the past three months, we assumed a more neutral posture with
duration at 5.2 years, based on our opinion that the economy needed to show
further signs of slowing before short and intermediate rates could fall much
further. We still hold this view, and our caution is reinforced by the
prospect of increased municipal supply in coming months.
Tax reform concerns also benefited the intermediate sector of the market
as investors demonstrated a clear preference for the comparative safety of
municipal bonds with short maturities. As a result, the yield curve steepened
when short-term yields fell more than long-term yields. This started at the
end of April, and over the following three months intermediate funds produced
higher returns than long-term funds, although they lagged long-term funds in
the final quarter.
We improved the fund's overall credit quality a bit this year, while
occasionally exploiting opportunities to buy higher-yielding securities that
looked attractively valued. Reflecting our overall strategy, your fund's
performance was in line with its peers for the past three months but surpassed
the average for intermediate bond funds during the year ended October 31.
Performance Comparison
Periods Ended 10/31/95
3 Months 12 Months
_________ _________
Municipal
Intermediate Fund 2.42% 11.39%
Lipper Intermediate
Debt Funds Average 2.40 10.91
The Income Fund enjoyed a strong year. A total return of 14.68% during
the fiscal year softened unpleasant memories of 1994. In last year's report,
we indicated that we might extend the fund's weighted average maturity and
duration based on our expectation for a gradually slowing economy. As the
economy slowed early in 1995, we extended the weighted average maturity from
17.1 years on October 31, 1994, to as high as 21.0 years on July 31 of this
year. Duration also moved from 8.0 to 8.5 years.
During the past three months, we adopted a less aggressive stance,
evidenced by a reduction in duration to 7.7 years. We began the last quarter
with an aggressive posture because of our view that continuing signs of
economic slowing were positive for the bond market. However, for the remainder
of the year, the possibility of increased supply and renewed tax reform
discussions prompt us to be more cautious.
Another successful strategy was the purchase of higher-yielding,
lower-quality securities. We bought them on the basis of their credit
fundamentals and the expectation that tightening credit spreads would lead
them to outperform higher-quality bonds. As spreads indeed narrowed, the fund
benefited not only from the higher income, but also from price appreciation.
This overall strategy helped the fund surpass the average returns of
similar funds for the 3- and 12-month periods ended October 31.
Performance Comparison
Periods Ended 10/31/95
3 Months 12 Months
_________ _________
Municipal Income Fund 3.42% 14.68%
Lipper General
Municipal Debt Funds
Average 3.27 13.73
Outlook
Preliminary reports indicate that the economy grew at an annualized rate of
4.2% in the third quarter. The bond market would not normally view such robust
growth as good news, but it has responded favorably to signs that inflation
remains in check (high inflation erodes the real return of bonds). Bond prices
have risen and yields fallen on the hope that Congress and the president will
come to terms on a way to cut the federal budget deficit.
Early indications of economic activity in the fourth quarter suggest a
slower pace than the strong fourth quarters of the past few years. Bonds
should continue to perform well as long as inflation remains low and
significant fiscal measures are adopted.
In the municipal market, we are approaching the next few months with a
degree of caution, but with a fundamentally constructive view. Bond sales,
which ran 41% below 1994's pace at the end of April, are rapidly closing the
gap as we approach year-end. This is adding welcome supply to the market at
potentially attractive prices.
On the tax-reform front, while we are attentive to the volatility these
discussions sometimes cause, we think the market can overreact in pricing
municipals too cheaply, considering the likely outcome of tax reform and the
periods over which changes will unfold. Therefore, we will look for
opportunities as they develop.
Respectfully submitted,
William T. Reynolds
Director, Fixed Income Division
November 17, 1995
Sector Diversification
Summit Municipal Money Market Fund
Percent of Net Assets
__________________
7/31/95 10/31/95
______ _______
Industrial and Pollution Control Revenue 16% 24%
Hospital Revenue 21 11
Educational Revenue 8 9
General Obligation - Local 10 9
Housing Finance Revenue 12 9
Air and Sea Transportation Revenue 8 8
General Obligation - State 4 6
Prerefunded Bonds 10 5
Solid Waste Revenue - 5
Water and Sewer Revenue 1 4
Electric Revenue 5 4
Lease Revenue 4 3
Nuclear Revenue 2 3
Miscellaneous Revenue 5 2
Other Assets Less Liabilities -6 -2
Summit Municipal Intermediate Fund
Percent of Net Assets
__________________
7/31/95 10/31/95
______ _______
Prerefunded Bonds 17% 15%
Air and Sea Transportation Revenue 11 11
Hospital Revenue 10 9
Water and Sewer Revenue 7 9
Educational Revenue 6 8
Housing Finance Revenue 5 7
Dedicated Tax Revenue 9 7
Ground Transportation Revenue 5 7
Industrial and Pollution Control Revenue 6 6
Lease Revenue 6 6
General Obligation - State 6 5
General Obligation - Local 5 5
Solid Waste Revenue 3 4
Electric Revenue 3 -
Other Assets Less Liabilities 1 1
Summit Municipal Income Fund
Percent of Net Assets
__________________
7/31/95 10/31/95
______ _______
Housing Finance Revenue 13% 16%
Water and Sewer Revenue 9 12
Industrial and Pollution Control Revenue 5 11
Solid Waste Revenue 8 10
Ground Transportation Revenue 7 9
Hospital Revenue 9 8
Nuclear Revenue 13 6
Educational Revenue 6 6
Air and Sea Transportation Revenue 6 6
General Obligation - Local 2 4
Dedicated Tax Revenue 5 4
General Obligation - State 3 3
Miscellaneous Revenue 3 3
Electric Revenue 2 2
Life Care/Nursing Home - 1
Prerefunded Bonds 2 -
Other Assets Less Liabilities 7 -1
<TABLE>
Financial Summary
Net Asset Value Dividend Per Share! Dividend Yield*
Per Share 3 Months Ended 3 Months Ended
_________________ _________________ _________________
7/31/95 10/31/95 7/31/95 10/31/95 7/31/95 10/31/95
_______ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Municipal Money Market $ 1.00 $ 1.00 $0.009 $0.009 3.52% 3.57%
Municipal Intermediate 10.05 10.17 0.12 0.12 4.89 4.82
Municipal Income 9.65 9.84 0.14 0.14 5.59 5.66
* Dividends earned and reinvested for the periods indicated are annualized and divided by the average
daily net asset values per share for the same period. Municipal Money Market Fund reports a
seven-day compound yield.
! Taxability of dividends: 100% of the dividends paid for the past 12 months ended October 31, 1995,
were exempt from federal income tax.
Quality Diversification
Quality Ratings as of 10/31/95* Weighted Average Quality*
__________________________________________ ______________________
1 2 3 4 5-10 7/31/95 10/31/95
____ ____ ____ ____ ____ _______ _______
Municipal Money Market 16% 84% - - - 1.9 1.9
Municipal Intermediate 14 49 26% 10% 1% 2.3 2.4
Municipal Income 4 36 26 19 15 3.0 3.0
* On a T. Rowe Price scale of 1 to 10, with Grade 1 representing the highest credit quality.
Duration and Maturity
Weighted Average Weighted Average
Effective Duration (years) Maturity (years)
______________________ ______________________
7/31/95 10/31/95 7/31/95 10/31/95
_______ _______ _______ _______
Municipal Money Market - - 46* 66*
Municipal Intermediate 5.2 5.2 8.0 8.0
Municipal Income 8.5 7.7 21.0 20.2
* Maturity is in days.
</TABLE>
CHART 2: Summit Municipal Money Market Fund
CHART 3: Summit Municipal Intermediate Fund
CHART 4: Summit Municipal Income Fund
Average Annual Compound Total Returns
Periods ended 10/31/95
Since Inception
1 Year 10/29/93
______ _____________
Municipal Money Market* 3.53% 2.93%
Municipal Intermediate 11.39 5.62
Municipal Income 14.68 4.71
Investment return and principal value represent past performance and will
vary. Shares of the bond funds may be worth more or less at redemption than
at original purchase.
An investment in the Municipal Money Market Fund is not insured or guaranteed
by the U.S. government.
<TABLE>
Statement of Net Assets
T. Rowe Price Summit Municipal Money Market Fund / October 31, 1995
(amounts in thousands)
Amount Value
___________ ___________
<S> <C>
ALABAMA - 3.8%
Jefferson County Sewer, RAW, VRDN (Currently 4.00%). . . . . . . $ 3,000 $ 3,000
ARIZONA - 1.3%
Maricopa County, GO, TAN, 4.50%, 7/31/96 . . . . . . . . . . . . 565 568
Salt River Project, Agricultural Improvement & Power
Dist., 7.125%, 1/1/10 (Prerefunded 1/1/96!). . . . . . . . 425 436
CALIFORNIA - 2.4%
Oakland, COP, VRDN (Currently 4.10%) . . . . . . . . . . . . . . 1,900 1,900
COLORADO - 1.4%
La Plata County PCR, Amoco Corp., 3.75%, 3/1/96. . . . . . . . . 1,080 1,080
DISTRICT OF COLUMBIA - 3.1%
Dist. of Columbia, American Univ., VRDN (Currently 3.95%). . . . 2,440 2,440
FLORIDA - 2.6%
Greater Orlando Aviation Auth., TECP, 3.90 - 3.95%,
11/27 - 12/14/95 * . . . . . . . . . . . . . . . . . . . . . . . 2,000 2,000
GEORGIA - 5.5%
Fulton County, GO, TAN, 4.75%, 12/29/95. . . . . . . . . . . . . 500 501
Georgia Tech Foundation Fac. Auth., Wardlaw Project,
VRDN (Currently 3.95%) . . . . . . . . . . . . . . . . . . . . . 300 300
Savannah Economic Dev. Auth., Home Depot,
VRDN (Currently 4.10%) . . . . . . . . . . . . . . . . . . . . . 3,500 3,500
HAWAII - 3.9%
Hawaii Dept. of Budget & Fin., Queens Medical Center,
(FGIC Insured), VRDN (Currently 3.90%) . . . . . . . . . . . . . 2,750 2,750
Honolulu City & County, GO, 7.20%, 8/1/06
(Prerefunded 8/1/96!). . . . . . . . . . . . . . . . . . . . . . 250 260
IDAHO - 0.9%
Idaho Falls, 7.70%, 4/1/09 (Prerefunded 4/1/96!) . . . . . . . . 700 718
ILLINOIS - 3.3%
Illinois, GO, RAN, 4.50%, 4/12/96. . . . . . . . . . . . . . . . 500 502
Southwestern Illinois Dev. Auth., Solid Waste Disposal,
Shell Oil Company, Wood River, VRDN (Currently 4.05%)* . . . . . 2,100 2,100
INDIANA - 4.4%
Indiana HFFA, Deaconess Hosp., 7.75%, 3/1/15
(Prerefunded 3/1/96!). . . . . . . . . . . . . . . . . . . . . . 200 207
Mount Vernon, PCR, General Electric, TECP,
3.60 - 3.95%, 11/14/95 - 2/8/96 *. . . . . . . . . . . . . . . . 3,235 3,235
KANSAS - 2.1%
Butler County, Solid Waste Disposal Fac., Texaco Inc.,
VRDN (Currently 4.10%) * . . . . . . . . . . . . . . . . . . . . 1,600 1,600
KENTUCKY - 2.2%
Carroll County, Solid Waste Disposal Fac.,
Kentucky Utilities Co., VRDN (Currently 4.05%) * . . . . . . . . 600 600
Jefferson County School Dist., 5.75%, 3/1/96
(Escrowed to Maturity) . . . . . . . . . . . . . . . . . . . . . 30 30
Jefferson County, PCR, Louisville Gas and Electric,
TECP, 3.85%, 1/23/96 . . . . . . . . . . . . . . . . . . . . . . 1,100 1,100
LOUISIANA - 7.3%
Lake Charles Harbor and Terminal Dist., PCR, CONOCO,
VRDN (Currently 4.10%) * . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Plaquemines Parish, The British Petroleum Company,
VRDN (Currently 4.10%) . . . . . . . . . . . . . . . . . . . . . 3,600 3,600
Saint Charles Parish PCR, Shell Oil, VRDN
(Currently 4.05%). . . . . . . . . . . . . . . . . . . . . . . . 1,100 1,100
MARYLAND - 2.8%
Anne Arundel County, Consolidated General Improvement,
GO, 4.90%, 3/15/96 . . . . . . . . . . . . . . . . . . . . . . . 100 100
Charles County, 8.25%, 12/1/03 (Prerefunded 12/1/95!). . . . . . 250 256
Maryland, GO, 6.40%, 7/1/96. . . . . . . . . . . . . . . . . . . 250 254
Montgomery County, GO, 6.90%, 6/15/96. . . . . . . . . . . . . . 100 102
Washington Suburban Sanitation Dist., General
Construction, GO, 7.00%, 6/1/96. . . . . . . . . . . . . . . . . 465 473
Sewage Disposal, GO, 5.50%, 6/1/96 . . . . . . . . . . . . 550 555
Water Supply, GO, 5.50%, 6/1/96. . . . . . . . . . . . . . 450 454
MICHIGAN - 0.6%
Detroit City School Dist., RAN, 4.50%, 5/1/96. . . . . . . . . . 500 502
MINNESOTA - 3.5%
Becker, PCR, Northern States Power Co., TECP, 3.90%, 2/8/96. . . 1,000 1,000
Minneapolis, Arena Acquisition, GO, VRDN
(Currently 3.90%). . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Rochester Health Care Fac., Mayo Medical Center,
VRDN (Currently 4.10%) . . . . . . . . . . . . . . . . . . . . . 300 300
Southern Minnesota Municipal Power Agency, 7.125%, 1/1/15
(Prerefunded 1/1/96!). . . . . . . . . . . . . . . . . . . . . . 400 410
MISSISSIPPI - 2.5%
Jackson County Industrial Sewage Fac., Chevron,
VRDN (Currently 4.05%) * . . . . . . . . . . . . . . . . . . . . 1,800 1,800
Mississippi, GO, 10.00%, 12/1/95 . . . . . . . . . . . . . . . . 150 151
MISSOURI - 4.5%
Missouri Environmental Improvement & Energy Resources Auth.,
Union Electric, TECP, 3.75%, 1/12/96 . . . . . . . . . . . . . . 1,000 1,000
Missouri HEFA, Sisters of Mercy Health, VRDN
(Currently 3.85%). . . . . . . . . . . . . . . . . . . . . . . . 500 500
SSM Health Care, (MBIA Insured), VRDN
(Currently 3.85%). . . . . . . . . . . . . . . . . . . . . . . . 2,000 2,000
NEW HAMPSHIRE - 0.3%
New Hampshire HHEFA, Dartmouth College, 4.10%, 6/1/96. . . . . . 250 250
NEW MEXICO - 1.3%
Santa Fe, Single Family Mortgage, 4.00%, 11/15/96 *. . . . . . . 1,000 1,001
NEW YORK - 2.6%
Copiague Union Free School Dist., GO, TAN, 4.50%, 6/28/96. . . . 500 502
Nassau County, GO, TAN, 4.50%, 3/15/96 . . . . . . . . . . . . . 500 501
New York City, GO, TAN, 4.50%, 2/15/96 . . . . . . . . . . . . . 1,000 1,002
NORTH CAROLINA - 0.3%
Wake County, 6.20%, 5/1/99 (Prerefunded 5/1/96!) . . . . . . . . 200 205
OHIO - 2.4%
Akron, Sanitary Sewer System, VRDN (Currently 3.95%) . . . . . . 255 255
Cleveland - Cuyahoga County Port Auth., Rock and
Roll Hall of Fame Museum, VRDN (Currently 3.95%) . . . . . . . . 1,500 1,500
Ohio Public Fac., (FSA Insured), 5.375%, 11/1/95 . . . . . . . . 150 150
PENNSYLVANIA - 5.0%
Pennsylvania Higher Ed. Fac. Auth., Student Loan,
VRDN (Currently 4.00%)*. . . . . . . . . . . . . . . . . . . . . 3,500 3,500
Philadelphia, GO, 8.20%, 2/15/01 (Prerefunded 2/15/96!). . . . . 30 31
Pittsburgh Public Parking Auth., 9.50%, 12/1/07
(Prerefunded 12/1/95!) . . . . . . . . . . . . . . . . . . . . . 325 333
SOUTH CAROLINA - 0.6%
Piedmont Municipal Power Agency, 8.00%, 1/1/23
(Prerefunded 1/1/96!). . . . . . . . . . . . . . . . . . . . . . 150 153
York County, PCR, Duke Power Co., TECP, 3.70%, 12/11/95. . . . . 300 300
SOUTH DAKOTA - 2.6%
South Dakota Housing Dev. Auth., Home Ownership Mortgage,
4.05%, 10/24/96 *. . . . . . . . . . . . . . . . . . . . . . . . 2,000 2,001
TENNESSEE - 2.2%
Hamilton County, GO, 4.55%, 5/1/96 . . . . . . . . . . . . . . . 700 702
Tennessee, GO, BAN, VRDN (Currently 3.90%) . . . . . . . . . . . 1,000 1,000
TEXAS - 13.2%
Austin Utility Systems, 8.00%, 11/15/14
(Prerefunded 11/15/95!). . . . . . . . . . . . . . . . . . . . . 500 501
(BIGI Insured), 7.75%, 5/15/12
(Prerefunded 5/15/96!) . . . . . . . . . . . . . . . . . . 480 499
Harris County Health Fac. Dev. Corp., Sisters of Charity
of the Incarnate Word, TECP, 3.80 - 3.85%,
11/15/95 - 1/10/96 . . . . . . . . . . . . . . . . . . . . . . . 2,800 2,800
Houston Airport, TECP, 3.70 - 3.80%, 11/29/95 - 1/11/96 *. . . . 3,500 3,499
Texas, GO, TRAN, 4.75%, 8/30/96. . . . . . . . . . . . . . . . . 3,000 3,021
UTAH - 8.0%
Salt Lake County, Kennecott/RTZ Corp., Solid Waste Disposal,
VRDN (Currently 4.30%) * . . . . . . . . . . . . . . . . . . . . 3,500 3,500
Utah Housing Fin. Agency, Single Family,
VRDN (Currently 4.10%) . . . . . . . . . . . . . . . . . . . . . 2,755 2,755
VERMONT - 0.6%
Vermont Ed. and Health Buildings Fin. Agency, Middlebury College,
4.35%, 5/1/96. . . . . . . . . . . . . . . . . . . . . . . . . . 500 501
VIRGINIA - 2.1%
Alexandria IDA, Ogden Martin, VRDN (Currently 4.20%) * . . . . . 200 200
Prince William County, COP, (MBIA Insured),
4.00%, 12/1/95 . . . . . . . . . . . . . . . . . . . . . . . . . 400 400
Virginia Housing Dev. Auth., 5.50%, 7/1/96 * . . . . . . . . . . 1,000 1,010
WASHINGTON - 1.2%
Port of Seattle, GO, VRDN (Currently 3.70%). . . . . . . . . . . 900 900
WYOMING - 1.3%
Converse County, PCR, Pacificorp, TECP, 3.80%, 11/17/95. . . . . 1,000 1,000
Total Investments in Securities - 101.8% of Net Assets
(Cost $79,344). . . . . . . . . . . . . . . . . . . . . . . . . 79,356
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . (1,398)
_________
Net Assets Consist of: Value
_________
Accumulated net realized gain/loss - net of distributions. . . . (1)
Net unrealized gain (loss) . . . . . . . . . . . . . . . . . . . 12
Paid-in-capital applicable to 77,946,954 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares of the
Corporation authorized . . . . . . . . . . . . . . . . . . . . . 77,947
_________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,958
_________
_________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . $1.00
_________
_________
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
BAN Bond Anticipation Note
BIGI Bond Investors Guaranty Insurance
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Corp.
GO General Obligation
HEFA Health & Educational Facility Authority
HFFA Health Facility Financing Authority
HHEFA Health & Higher Educational Facility Authority
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
RAW Revenue Anticipation Warrant
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Net Assets
T. Rowe Price Summit Municipal Intermediate Fund / October 31, 1995
(amounts in thousands)
Amount Value
___________ ___________
ALABAMA - 2.5%
Birmingham Airport Auth., (AMBAC Insured),
7.35%, 7/1/04 *. . . . . . . . . . . . . . . . . . . . . . . . $ 500 $ 557
CALIFORNIA - 3.0%
California Public Works Board, Dept. of Corrections,
(MBIA Insured),6.00%, 11/1/05. . . . . . . . . . . . . . . . . 250 272
Foothill / Eastern Transportation Corridor Agency,
Toll Road, Zero Coupon, 1/1/05 . . . . . . . . . . . . . . . . 350 195
San Joaquin Hills Transportation Corridor Agency,
Toll Road, Zero Coupon, 1/1/02 . . . . . . . . . . . . . . . . 300 190
DISTRICT OF COLUMBIA - 2.0%
Metropolitan Washington D.C. Airport Auth., (BIGI Insured),
8.10%, 10/1/08 * . . . . . . . . . . . . . . . . . . . . . . . 400 445
FLORIDA - 11.0%
Dade County School Board, COP, (MBIA Insured),
5.75%, 5/1/08. . . . . . . . . . . . . . . . . . . . . . . . . 365 378
Florida Turnpike Auth., (AMBAC Insured), 5.50%, 7/1/05 . . . . 500 528
Indian Trace Community Dev. Dist., Water Management,
(MBIA Insured), 5.50%, 5/1/07. . . . . . . . . . . . . . . . . 500 518
Leesburg Regional Medical Center, 5.20%, 7/1/02. . . . . . . . 500 498
Orange County HFA, Adventist Health System,
(AMBAC Insured), 4.90%, 11/15/02 . . . . . . . . . . . . . . . 500 510
HAWAII - 1.5%
Hawaii, Airport Systems, (FGIC Insured),
7.50%, 7/1/20 *. . . . . . . . . . . . . . . . . . . . . . . . 300 334
ILLINOIS - 4.0%
Chicago - O'Hare Int'l. Airport, Int'l.Terminal, 7.50%,
1/1/05 * . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 178
(MBIA Insured), 7.50%, 1/1/05 *. . . . . . . . . . . . . 250 280
Illinois HFA, Glen Oaks Medical Center, 9.50%, 11/15/15. . . . 75 88
Holy Cross Hosp., 4.875%, 3/1/96 . . . . . . . . . . . . 350 349
KENTUCKY - 1.9%
Kentucky State Property and Buildings Commission, 6.40%,
11/1/01. . . . . . . . . . . . . . . . . . . . . . . . . . . . 390 426
LOUISIANA - 1.8%
West Baton Rouge, Dow Chemical Company, VRDN
(Currently 4.10%) *. . . . . . . . . . . . . . . . . . . . . . 400 400
MARYLAND - 6.2%
Maryland HHEFA, Howard County General Hosp., 5.125%,
7/1/03 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 493
Northeast Maryland Waste Disposal Auth.,
Southwest Resource Recovery Fac.,
5.80%, 7/1/04 *. . . . . . . . . . . . . . . . . . . . . 240 247
(MBIA Insured), 7.10%, 1/1/03. . . . . . . . . . . . . . 550 625
MASSACHUSETTS - 1.9%
Massachusetts, GO, (FGIC Insured), 6.30%, 11/1/05. . . . . . . 250 277
Massachusetts Port Auth., (FGIC Insured), 7.375%,
7/1/10 * . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 151
NEW HAMPSHIRE - 2.3%
New Hampshire Housing Fin. Auth., Single Family,
5.90%, 1/1/01 *. . . . . . . . . . . . . . . . . . . . . 115 119
5.90%, 7/1/01 *. . . . . . . . . . . . . . . . . . . . . 115 119
6.00%, 7/1/02 *. . . . . . . . . . . . . . . . . . . . . 125 130
6.10%, 1/1/03 *. . . . . . . . . . . . . . . . . . . . . 130 135
NEW YORK - 15.1%
Dormitory Auth. of the State of New York, City Univ.,
(MBIA Insured), 6.875%, 7/1/14 . . . . . . . . . . . . . . . . 350 387
State Univ. Ed. Fac., 7.40%, 5/15/01 . . . . . . . . . . 150 167
Nassau County IDA, Hofstra Univ., 6.70%, 1/1/09. . . . . . . . 250 270
New York City, GO, 5.30%, 2/15/02. . . . . . . . . . . . . . . 500 496
New York Mortgage Agency, Homeowner Mortgage, 5.80%,
10/1/06 *. . . . . . . . . . . . . . . . . . . . . . . . . . . 500 502
New York State, GO, 6.25%, 8/15/04 . . . . . . . . . . . . . . 400 440
New York State Environmental Fac. Corp., PCR, Water
Revolving Fund, 6.875%, 6/15/10. . . . . . . . . . . . . . . . 500 548
New York State Thruway Auth., Highway and Bridge Trust,
(AMBAC Insured), 6.00%, 4/1/00 . . . . . . . . . . . . . . . . 500 532
OHIO - 3.8%
Cleveland, Waterworks, (AMBAC Insured), 6.50%, 1/1/21
(Prerefunded 1/1/02!). . . . . . . . . . . . . . . . . . . . . 750 839
OKLAHOMA - 2.3%
Univ. of Oklahoma, (MBIA Insured), 4.75%, 7/1/02 . . . . . . . 500 504
OREGON - 0.4%
Oregon Economic Dev. Auth., Georgia Pacific Corp.,
VRDN (Currently 4.00%) * . . . . . . . . . . . . . . . . . . . 100 100
PENNSYLVANIA - 2.1%
Pennsylvania Intergovernmental Cooperative Auth., Special Tax,
(FGIC Insured), 7.00%, 6/15/04 . . . . . . . . . . . . . . . . 400 460
SOUTH CAROLINA - 2.5%
South Carolina Public Service Auth., Santee Cooper,
(AMBAC Insured), 6.50%, 7/1/24 (Prerefunded 7/1/02!) . . . . . 495 557
TENNESSEE - 2.7%
Metropolitan Nashville Airport Auth., (FGIC Insured), 7.75%,
7/1/06 (Prerefunded 7/1/01!) . . . . . . . . . . . . . . . . . 500 590
TEXAS - 15.5%
Austin Airport, (MBIA Insured), 5.75%, 11/15/08 *. . . . . . . 500 512
Brazos Higher Ed. Auth., Student Loan, 5.95%, 6/1/02 * . . . . 500 526
Brazos River Harbor Navigation Dist., Dow Chemical
Company, VRDN (Currently 4.10%) *. . . . . . . . . . . . . . . 700 700
Harris County, Toll Roads, (AMBAC Insured), 6.50%,
8/15/17 (Prerefunded 8/15/02!) . . . . . . . . . . . . . . . . 750 846
Houston Water & Sewer System, (AMBAC Insured),
7.00%, 12/1/03 . . . . . . . . . . . . . . . . . . . . . . . . 270 311
San Antonio, Water Systems, (FGIC Insured), 6.30%,
5/15/04. . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 550
VIRGINIA - 10.3%
Chesapeake Bay Bridge & Tunnel Dist., (FGIC Insured),
5.30%, 7/1/03. . . . . . . . . . . . . . . . . . . . . . . . . 585 608
Upper Occoquan Sewage Auth., (MBIA Insured), 6.50%,
7/1/11 (Prerefunded 7/1/01!) . . . . . . . . . . . . . . . . . 500 559
Virginia HDA, Commonwealth Mortgage,
6.125%, 1/1/99 * . . . . . . . . . . . . . . . . . . . . 50 52
5.75%, 7/1/99 *. . . . . . . . . . . . . . . . . . . . . 500 517
Virginia Transportation Board, 5.80%, 5/15/04. . . . . . . . . 500 537
WASHINGTON - 2.0%
Washington, GO, 6.50%, 5/1/04. . . . . . . . . . . . . . . . . 400 447
WEST VIRGINIA - 2.4%
Berkeley County Board of Ed., GO, (FGIC Insured),
5.75%, 6/1/03. . . . . . . . . . . . . . . . . . . . . . . . . 500 534
WYOMING - 0.9%
Lincoln County, PCR, Exxon, VRDN (Currently 4.10%) * . . . . . 200 200
Total Investments in Securities - 98.1% of Net Assets
(Cost $20,907). . . . . . . . . . . . . . . . . . . . . . . . 21,733
Other Assets Less Liabilities . . . . . . . . . . . . . . . . 412
___________
Net Assets Consist of: Value
___________
Accumulated net realized gain/loss -
net of distributions . . . . . . . . . . . . . . . . . . . . . $ (329)
Net unrealized gain (loss) . . . . . . . . . . . . . . . . . . 826
Paid-in-capital applicable to 2,178,137 shares of $0.0001
par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized . . . . . . 21,648
___________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,145
___________
___________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . $10.17
___________
___________
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BIGI Bond Investors Guaranty Insurance
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
GO General Obligation
HDA Housing Development Authority
HFA Health Facility Authority
HHEFA Health & Higher Educational Facility Authority
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Net Assets
T. Rowe Price Summit Municipal Income Fund / October 31, 1995
(amounts in thousands)
Amount Value
___________ ___________
ALABAMA - 0.9%
Mobile IDB, Mobile Energy Services, 6.95%, 1/1/20. . . . . . . $ 100 $ 104
ALASKA - 0.9%
Alaska Housing Fin. Corp., (MBIA Insured), 5.875%, 12/1/24 . . 100 98
CALIFORNIA - 12.2%
California Pollution Control Fin. Auth., Pacific Gas and Electric,
(MBIA Insured), 5.85%, 12/1/23 * . . . . . . . . . . . . . . . 250 246
Foothill / Eastern Transportation Corridor Agency, Toll Road,
Zero Coupon, 1/1/26. . . . . . . . . . . . . . . . . . . . . . 500 64
Los Angeles County, Marina del Rey, COP, 5.25%, 7/1/96 . . . . 200 200
Los Angeles County Sanitation Dist.,
5.375%, 10/1/13. . . . . . . . . . . . . . . . . . . . . . . . 250 239
San Joaquin Hills Transportation Corridor Agency, Toll Road,
Zero Coupon, 1/1/02. . . . . . . . . . . . . . . . . . . 215 136
Zero Coupon, 1/1/19. . . . . . . . . . . . . . . . . . . 550 116
6.75%, 1/1/32. . . . . . . . . . . . . . . . . . . . . . 150 153
Southern California Public Power Auth., 6.00%, 7/1/12. . . . . 200 200
DISTRICT OF COLUMBIA - 1.0%
Metropolitan Washington D.C. Airport Auth., (BIGI Insured),
8.10%, 10/1/08 * . . . . . . . . . . . . . . . . . . . . . . . 100 111
FLORIDA - 2.2%
Dade County, Water and Sewer Systems, (FGIC Insured),
5.50%, 10/1/25 . . . . . . . . . . . . . . . . . . . . . . . . 250 244
GEORGIA - 2.1%
Rockdale County Dev. Auth., Solid Waste Disposal,
Visy Paper, Inc., 7.50%, 1/1/26 *. . . . . . . . . . . . . . . 225 229
IDAHO - 0.9%
Idaho Housing Agency, Single Family, (FHA Guaranteed),
6.60%, 7/1/27 *. . . . . . . . . . . . . . . . . . . . . . . . 100 102
ILLINOIS - 7.1%
Chicago - O'Hare Int'l. Airport, Int'l. Terminal, (MBIA Insured),
7.50%, 1/1/17. . . . . . . . . . . . . . . . . . . . . . . . . 85 94
Illinois HFA, Community Hosp. of Ottawa, 6.85%, 8/15/24. . . . 200 200
Glen Oaks Medical Center, 9.50%, 11/15/15. . . . . . . . 75 88
Holy Cross Hosp., 6.70%, 3/1/14. . . . . . . . . . . . . 300 302
Robbins Village, Resource Recovery,
9.25%, 10/15/14 *. . . . . . . . . . . . . . . . . . . . . . . 100 108
KENTUCKY - 2.9%
Ashland, Sewage and Solid Waste,
7.125%, 2/1/22 . . . . . . . . . . . . . . . . . . . . . . . . 200 211
Kenton County Airport Board, Delta Airlines,
7.50%, 2/1/20 *. . . . . . . . . . . . . . . . . . . . . . . . 100 106
LOUISIANA - 0.9%
Saint Charles Parish, PCR, Shell Oil, VRDN
(Currently 4.05%) *. . . . . . . . . . . . . . . . . . . . . . 100 100
MARYLAND - 3.1%
Maryland CDA, Single Family, 5.875%, 4/1/17 *. . . . . . . . . 100 100
7.25%, 4/1/19. . . . . . . . . . . . . . . . . . . . . . 140 148
7.375%, 4/1/26 * . . . . . . . . . . . . . . . . . . . . 90 94
MISSISSIPPI - 2.3%
Claiborne County, PCR, Systems Energy Resources Inc.,
7.30%, 5/1/25. . . . . . . . . . . . . . . . . . . . . . . . . 150 155
Warren County, PCR, Mississippi Power and Light,
7.00%, 4/1/22. . . . . . . . . . . . . . . . . . . . . . . . . 100 104
MONTANA - 1.7%
Montana Board of Investments, Yellowstone Energy Limited
Partnership, 7.00%, 12/31/19 * . . . . . . . . . . . . . . . . 200 193
NEVADA - 2.3%
Clark County Airport Fac., MaCarren Int'l Airport,
(MBIA Insured), 6.00%, 7/1/17 *. . . . . . . . . . . . . . . . 250 251
NEW HAMPSHIRE - 1.9%
New Hampshire Housing Fin. Auth., Single Family,
6.85%, 7/1/14 *. . . . . . . . . . . . . . . . . . . . . . . . 200 209
NEW JERSEY - 8.4%
New Jersey HFFA, Irvington General Hosp., (FHA Guaranteed),
5.875%, 8/1/06 . . . . . . . . . . . . . . . . . . . . . . . . 230 239
Raritan Bay Medical Center, 7.25%, 7/1/27. . . . . . . . 100 100
New Jersey Sports and Exposition Auth., Monmouth Park,
8.00%, 1/1/25. . . . . . . . . . . . . . . . . . . . . . . . . 100 111
New Jersey Wastewater Treatment Trust,
6.375%, 4/1/11 . . . . . . . . . . . . . . . . . . . . . . . . 200 214
Rutgers, The State Univ., 6.35%, 5/1/06. . . . . . . . . . . . 250 273
NEW YORK - 19.3%
Erie County Water Auth., (AMBAC Insured), Zero Coupon,
12/1/17. . . . . . . . . . . . . . . . . . . . . . . . . . . . 550 113
Nassau County IDA, Hofstra Univ., 6.80%, 1/1/11. . . . . . . . 290 310
New York City, GO, 6.00%, 2/15/25. . . . . . . . . . . . . . . 160 155
New York City IDA, Terminal One Group Assoc., 6.00%, 1/1/15 *. 100 98
New York City Municipal Water Fin. Auth., Water and Sewer,
6.00%, 6/15/09 . . . . . . . . . . . . . . . . . . . . . . . . 200 210
(FGIC Insured), 5.00%, 6/15/17 . . . . . . . . . . . . . 100 91
New York State Environmental Fac. Corp., PCR, State
Water Revolving Fund, 6.90%, 11/15/15. . . . . . . . . . . . . 200 227
New York State Local Gov't. Assistance Corp.,
Public Benefit Corp., 5.375%, 4/1/16 . . . . . . . . . . . . . 200 191
New York State Mortgage Agency, Homeowner Mortgage,
6.45%, 10/1/17 . . . . . . . . . . . . . . . . . . . . . 100 103
6.625%, 4/1/25 * . . . . . . . . . . . . . . . . . . . . 100 103
7.50%, 4/1/26 *. . . . . . . . . . . . . . . . . . . . . 250 268
Triborough Bridge & Tunnel Auth., 5.00%, 1/1/17. . . . . . . . 300 273
OHIO - 1.0%
Ohio Water Dev. Auth., PCR, Toledo Edison,
8.00%, 10/1/23 . . . . . . . . . . . . . . . . . . . . . . . . 100 106
OKLAHOMA - 1.4%
Tulsa Municipal Airport, American Airlines,
7.375%, 12/1/20 *. . . . . . . . . . . . . . . . . . . . . . . 150 158
PENNSYLVANIA - 5.2%
Beaver County IDA, PCR, Cleveland Electric,
7.75%, 7/15/25 . . . . . . . . . . . . . . . . . . . . . . . . 100 104
Erie County IDA, Beverly Enterprises, 6.625%, 5/1/02 . . . . . 100 100
Philadelphia Airport Auth., (AMBAC Insured),
6.10%, 6/15/25 * . . . . . . . . . . . . . . . . . . . . . . . 75 76
Philadelphia School Dist., GO, (AMBAC Insured),
5.50%, 9/1/25. . . . . . . . . . . . . . . . . . . . . . . . . 100 97
Schuylkill County IDA, Schuylkill Energy Resources, Inc.,
6.50%, 1/1/10 *. . . . . . . . . . . . . . . . . . . . . . . . 200 203
PUERTO RICO - 5.6%
Puerto Rico Aqueduct and Sewer Auth., 7.875%, 7/1/17 . . . . . 250 279
Puerto Rico Commonwealth, GO, 5.50%, 7/1/15. . . . . . . . . . 250 244
(MBIA Insured), 5.375%, 7/1/22 . . . . . . . . . . . . . 100 97
SOUTH DAKOTA - 1.7%
South Dakota HDA, Homeownership Mortgage, 6.65%, 5/1/14. . . . 185 194
TEXAS - 8.7%
Brazos River Harbor Navigation Dist., Dow Chemical Company,
VRDN (Currently 4.10%) * . . . . . . . . . . . . . . . . . . . 200 200
Harris County, Toll Road, (MBIA Insured),
6.375%, 8/15/24. . . . . . . . . . . . . . . . . . . . . . . . 250 264
Irving, GO, 5.50%, 9/15/10 . . . . . . . . . . . . . . . . . . 245 248
Texas, Veterans Housing Assistance, GO, 6.25%, 12/1/15 . . . . 250 255
VIRGINIA - 4.1%
Virginia Ed. Loan Auth., Student Loan Program,
5.55%, 9/1/10 *. . . . . . . . . . . . . . . . . . . . . . . . 100 100
Virginia HDA, 6.50%, 5/1/13 *. . . . . . . . . . . . . . . . . 100 102
6.60%, 7/1/20 *. . . . . . . . . . . . . . . . . . . . . 250 254
WYOMING - 3.6%
Lincoln County, PCR, Exxon, VRDN (Currently 4.10%) * . . . . . 400 400
Total Investments in Securities - 101.4% of Net Assets
(Cost $10,775). . . . . . . . . . . . . . . . . . . . . . . . 11,265
Other Assets Less Liabilities . . . . . . . . . . . . . . . . (157)
___________
Net Assets Consist of: Value
___________
Accumulated net realized gain/loss -
net of distributions . . . . . . . . . . . . . . . . . . . . . $ (308)
Net unrealized gain (loss) . . . . . . . . . . . . . . . . . . 490
Paid-in-capital applicable to 1,129,416 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares of the
Corporation authorized . . . . . . . . . . . . . . . . . . . . 10,926
_________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,108
___________
___________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . $9.84
___________
___________
* Interest subject to alternative minimum tax
AMBAC AMBAC Indemnity Corp.
BIGI Bond Investors Guaranty Insurance
CDA Community Development Administration
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
GO General Obligation
HDA Housing Development Authority
HFA Health Facility Authority
HFFA Health Facility Financing Authority
IDA Industrial Development Authority
IDB Industrial Development Bond
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price Summit Municipal Funds / Year Ended October 31, 1995
(in thousands)
Money
Market Intermediate Income
Fund Fund Fund
__________ __________ __________
INVESTMENT INCOME
Interest income. . . . . . . . . . . . . . $ 2,455 $ 996 $ 571
Investment management and
administrative expenses. . . . . . . . . . 281 92 46
__________ __________ __________
Net investment income. . . . . . . . . . . 2,174 904 525
__________ __________ __________
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities . . . . . . . . . . . . . . . - 35 5
Futures. . . . . . . . . . . . . . . . . - (12) (18)
Options. . . . . . . . . . . . . . . . . - - (4)
__________ __________ __________
Net realized gain (loss) . . . . . . . . . - 23 (17)
Change in net unrealized gain or
loss on securities . . . . . . . . . . . . 16 1,119 757
__________ __________ __________
Net realized and unrealized gain
(loss) . . . . . . . . . . . . . . . . . . 16 1,142 740
__________ __________ __________
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS. . . . . . . . . . . . . . $ 2,190 $ 2,046 $ 1,265
__________ __________ __________
__________ __________ __________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price Summit Municipal Funds
(in thousands)
Money Market Fund Intermediate Fund Income Fund
__________________ __________________ __________________
Year Oct. 29,* Year Oct. 29,* Year Oct. 29,*
Ended 1993 to Ended 1993 to Ended 1993 to
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
1995 1994 1995 1994 1995 1994
_______ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
Operations
Net investment income . . . . . . . . .$ 2,174 $ 527 $ 904 $ 474 $ 525 $ 261
Net realized gain (loss). . . . . . . . - (1) 23 (352) (17) (291)
Change in net unrealized
gain or loss. . . . . . . . . . . . . . 16 (4) 1,119 (293) 757 (267)
_________ _________ __________________ _________ _________
Increase (decrease) in
net assets from operations. . . . . . . 2,190 522 2,046 (171) 1,265 (297)
_________ _________ __________________ _________ _________
Distributions to shareholders
Net investment income . . . . . . . . . (2,174) (527) (904) (474) (525) (261)
_________ _________ __________________ _________ _________
Capital share transactions**
Shares sold . . . . . . . . . . . . . . 125,403 68,449 12,683 19,663 7,350 7,757
Distributions reinvested. . . . . . . . 1,932 491 578 386 230 223
Shares redeemed . . . . . . . . . . . . (91,985) (26,383) (5,567) (6,125) (3,665) (999)
_________ _________ __________________ _________ _________
Increase (decrease) in net assets
from capital share transactions . . . . 35,350 42,557 7,694 13,924 3,915 6,981
_________ _________ __________________ _________ _________
Increase (decrease) in net assets 35,366 42,552 8,836 13,279 4,655 6,423
NET ASSETS
Beginning of period. . . . . . . . . . . . 42,592 40 13,309 30 6,453 30
_________ _________ __________________ _________ _________
End of period. . . . . . . . . . . . . . .$ 77,958 $ 42,592 $ 22,145 $13,309 $11,108 $ 6,453
_________ _________ __________________ _________ _________
_________ _________ __________________ _________ _________
**Share information
Shares sold . . . . . . . . . . . . . . 125,403 68,449 1,303 1,971 784 789
Distributions reinvested. . . . . . . . 1,932 491 58 39 24 24
Shares redeemed . . . . . . . . . . . . (91,985) (26,383) (571) (625) (390) (105)
_________ _________ __________________ _________ _________
Increase (decrease) in shares
outstanding . . . . . . . . . . . . . . 35,350 42,557 790 1,385 418 708
_________ _________ __________________ _________ _________
_________ _________ __________________ _________ _________
*Commencement of operations
The accompanying notes are an integral part of these financial statements.
</TABLE>
Notes to Financial Statements
T. Rowe Price Summit Municipal Funds / October 31, 1995
Note 1 - Significant Accounting Policies
T. Rowe Price Summit Municipal Funds, Inc. (the Corporation) is registered
under the Investment Company Act of 1940. The Summit Municipal Money Fund (the
Money Fund), the Summit Municipal Intermediate Fund (the Intermediate Fund),
and the Summit Municipal Income Fund (the Income Fund), diversified, open-end
management investment companies, are the three portfolios established by the
Corporation.
A) Valuation - Debt securities are generally traded in the over-the-counter
market. Investments in securities with remaining maturities of one year or
more are stated at fair value as furnished by dealers who make markets in such
securities or by an independent pricing service, which considers yield or
price of bonds of comparable quality, coupon, maturity, and type, as well as
prices quoted by dealers who make markets in such securities. Except with
respect to certain securities held by the Money Fund, securities with
remaining maturities of less than one year are stated at fair value, which is
determined by using a matrix system that establishes a value for each security
based on money market yields. Securities held by the Money Fund with remaining
maturities of 60 days or less are valued at amortized cost.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of
each fund, as authorized by the Board of Directors.
B) Premiums and Discounts - Premiums and original issue discounts on municipal
securities are amortized for both financial reporting and tax purposes. Market
discounts are recognized upon disposition of the security as gain or loss for
financial reporting purposes and as ordinary income for tax purposes.
C) Other - Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Distributions to shareholders are
recorded by each fund on the ex-dividend date. Income and capital gain
distributions are determined in accordance with federal income tax regulations
and may differ from those determined in accordance with generally accepted
accounting principles.
Note 2 - Investment Transactions
Purchases and sales of portfolio securities, other than short-term securities,
for the period ended October 31, 1995, were as follows:
Intermediate Income
Fund Fund
_____________ ____________
Purchases $21,532,000 $10,355,000
Sales 14,562,000 6,421,000
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since each fund intends to
continue to qualify as a regulated investment company and distribute all of
its income. The Money Fund has unused realized capital loss carryforwards for
federal income tax purposes of $1,000 which expire in 2002. The Intermediate
Fund has unused realized capital loss carryforwards for federal income tax
purposes of $324,000 which expire in 2002. Capital loss carryforwards utilized
by the Intermediate Fund in 1995 amounted to $28,000. The Income Fund has
unused realized capital loss carryforwards for federal income tax purposes of
$302,000, of which $291,000 expire in 2002, and $11,000 in 2003. Each fund
intends to retain gains realized in future periods that may be offset by
available capital loss carryforwards.
At October 31, 1995, the aggregate cost of investments for the Money,
Intermediate and Income funds for federal income tax and financial reporting
purposes was $79,344,000, $20,907,000, and $10,775,000, respectively. Net
unrealized gain (loss) on investments was as follows:
Money Intermediate Income
Fund Fund Fund
____________ ____________ ____________
Appreciated
Investments $ 14,000 $ 827,000 $ 492,000
Depreciated
Investments (2,000) (1,000) (2,000)
____________ ____________ ____________
Net Unrealized
Gain (Loss) $ 12,000 $ 826,000 $ 490,000
____________ ____________ ____________
____________ ____________ ____________
Note 4 - Related Party Transactions
The investment management and administrative agreement between each fund and
T. Rowe Price Associates, Inc. (the Manager), provides for an all-inclusive
annual fee, of which $16,000 was payable at October 31, 1995 by the Money
Fund. The fee, computed daily and paid monthly, is equal to 0.45% of average
daily net assets for the Money Fund and 0.50% of average daily net assets for
the Intermediate and Income funds. Pursuant to the agreement, investment
management, shareholder servicing, transfer agency, accounting, and custody
services are provided to each fund, and interest, taxes, brokerage
commissions, and extraordinary expenses are paid directly by each fund.
<TABLE>
Financial Highlights
T. Rowe Price Summit Municipal Funds
For a share outstanding throughout each period
Money Market Fund Intermediate Fund Income Fund
__________________ __________________ __________________
Year Oct. 29,* Year Oct. 29,* Year Oct. 29,*
Ended 1993 to Ended 1993 to Ended 1993 to
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
1995 1994 1995 1994 1995 1994
_______ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD. . . . . . . . . . . . . . . . . $1.000 $1.000 $ 9.59 $10.00 $ 9.08 $10.00
______ ______ ______ ______ ______ ______
Investment activities
Net investment income . . . . . . . . . 0.035 0.023 0.48 0.43 0.54 0.50
Net realized and unrealized
gain (loss) . . . . . . . . . . . . . . - - 0.58 (0.41) 0.76 (0.92)
______ ______ ______ ______ ______ ______
Total from investment activities. . . . 0.035 0.023 1.06 0.02 1.30 (0.42)
Distributions
Net investment income . . . . . . . . . (0.035) (0.023) (0.48) (0.43) (0.54) (0.50)
______ ______ ______ ______ ______ ______
NET ASSET VALUE, END OF PERIOD . . . . . . $1.000 $1.000 $10.17 $ 9.59 $ 9.84 $ 9.08
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______
RATIOS/SUPPLEMENTAL DATA
Total return . . . . . . . . . . . . . . . 3.53% 2.35% 11.39% 0.18% 14.68% (4.38)%
Ratio of expenses to average
net assets . . . . . . . . . . . . . . . . 0.45% 0.45%! 0.50% 0.50%! 0.50% 0.50%!
Ratio of net investment income
to average net assets. . . . . . . . . . . 3.48% 2.56%! 4.93% 4.50%! 5.68% 5.23%!
Portfolio turnover rate. . . . . . . . . . - - 86.1% 157.5%! 73.7% 161.1%!
Net assets, end of period
(in thousands) . . . . . . . . . . . . . . $77,958 $42,592 $22,145 $13,309 $11,108 $6,453
! Annualized
* Commencement of operations
</TABLE>
Report of Independent Accountants
To the Board of Directors of the T. Rowe Price Summit Municipal Funds, Inc.
and Shareholders of the T. Rowe Price Summit Municipal Money Market Fund,
T. Rowe Price Summit Municipal Intermediate Fund and T. Rowe Price
Summit Municipal Income Fund
We have audited the accompanying statement of net assets of the T. Rowe Price
Summit Municipal Funds, Inc. (which include the T. Rowe Price Summit Municipal
Money Market Fund, T. Rowe Price Summit Municipal Intermediate Fund and T.
Rowe Price Summit Municipal Income Fund), as of October 31, 1995, and the
related statement of operations for the year then ended, and the statement of
changes in net assets and financial highlights for the year ended October 31,
1995 and the period October 29, 1993 (commencement of operations) to October
31, 1994. 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 audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of October 31, 1995 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of T.
Rowe Price Summit Municipal Funds, Inc. as of October 31, 1995, the results of
their operations, the changes in their net assets and financial highlights for
the periods stated in the first paragraph in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
November 17, 1995
CHART 1: Municipal Bond and Note Yields
Municipal Bond and Note Yields chart showing yields on 30-year AAA GO,
five-year AAA GO, and one-year Moody's Investment Grade 1 Note, 10/31/94 to
10/31/95
CHART 2: Fiscal-Year Performance Comparison line graphs for Summit Municipal
Money Market Fund annual report (Oct. 31, 1995) Shows $10,000 investments in
Summit Fund and IBC/Donoghue Money Fund Report Average from 10/93 to 10/95.
CHART 3: Fiscal-Year Performance Comparison line graphs for Summit Municipal
Intermediate Fund annual report (Oct. 31, 1995) Shows $10,000 investments in
Summit Fund, Lehman Brothers 7-Year Municipal Bond Index and Lipper
Intermediate Debt Funds Average from 10/93 to 10/95.
CHART 4: Fiscal-Year Performance Comparison line graphs for Summit Municipal
Income Fund annual report (Oct. 31, 1995) Shows $10,000 investments in Summit
Fund, Lehman Brothers Municipal Bond Index and Lipper General Municipal Debt
Funds Average from 10/93 to 10/95.
