Semiannual Report
Summit Municipal Funds
April 30, 1996
T. Rowe Price
REPORT HIGHLIGHTS
o The past six months were difficult for bond investors. However, after
lagging taxable bonds throughout most of last year, municipal securities
outperformed their taxable counterparts through April of this year.
o Yields of long-term Treasuries rose by approximately one percentage
point to higher than 7% at the end of April; municipal yields rose half
as much.
o Returns were positive but low for the 6-month period; 12-month returns
were solid. All three Summit Municipal Funds surpassed the average
returns for their peer groups.
o Higher bond yields during the past four months may have discounted many
concerns about inflation. Growth in the second half of the year could be
weaker than in the first half, which would benefit bonds.
Fellow Shareholders
Interest rates have risen since the end of 1995, leading to relatively good
returns for money market funds but resulting in sluggish returns for most bond
funds during the past six months. However, after lagging taxable bonds
throughout most of last year, municipal securities have outperformed their
taxable counterparts so far in 1996.
MARKET ENVIRONMENT
Indications of a slowing economy, mild inflation, and easier monetary policy
by the Federal Reserve all contributed to strong returns for bonds in 1995.
These trends changed direction early in 1996, and so did the direction of the
bond market. The economy grew steadily, expanding at a healthy 2.8% pace in
the first quarter. While stocks continued to do well in this environment,
bonds did not, giving back some of the gains achieved in 1995.
Yields of long-term Treasuries rose by approximately one percentage point,
moving from below 6% at the beginning of the year to higher than 7% at the end
of April. Municipals performed slightly better, as long-term municipal yields
rose only 60 basis points (100 basis points equals one percent).
Chart 1 - Municipal Bond and Note Yields
One of the reasons municipal bond prices have not declined to the same extent
as Treasuries is diminishing concern about tax reform proposals that could
reduce the appeal of municipals. Last year, tax reform discussions caused
municipal bond returns to trail those of taxable bonds.
Shorter-term municipal yields have also risen from year-end levels but were
little changed overall from the close of your funds' fiscal year on October
31. The yield on the Moody's one-year MIG 1 note fell from 3.9% to as low as
3.1% in February, before rising to 3.7% at the end of April. Three- and
six-month yields were 15 and 10 basis points lower, respectively.
Summit Municipal Money Market Fund
The Money Market Fund ended the six-month period with a weighted average
maturity of 51 days, down from 66 days at the close of the fiscal year in
October. Though shorter, the maturity is still longer than our peer group
average of 42 days and remained so throughout the last six months.
A combination of reduced supply and strong demand for money market investments
prompted us to keep our maturity slightly long despite a growing perception
that the Federal Reserve was no longer disposed toward lowering short-term
rates. Supply of new short-term issues over the last six months ran 12.5%
below last year's level for the same period and 20% below 1995 levels for the
first four months of the year. Simultaneously, money market cash inflows have
been rising.
Performance Comparison
Periods Ended 4/30/96 6 Months 12 Months
_____________________________________________________________________________
Municipal Money Market Fund 1.65% 3.45%
IBC/Donoghue Money Fund Report Average * 1.52 3.20
*Stockbroker and General Purpose Funds.
Your fund increased its exposure to AMT securities from 44% to 53% of net
assets, since they carry a yield advantage of 10 to 15 basis points over other
municipals. (Income from AMT issues may be taxable for the small percentage of
investors affected by the alternative minimum tax.) In addition, we maintained
a substantial weighting in variable rate securities because of their
attractive yields.
This overall strategy helped your fund outperform its peer group average
during both the 6- and 12-month periods ended April 30.
Summit Municipal Intermediate Fund
In this fund, we kept duration (a measure of a fund's interest rate
sensitivity and volatility) in a neutral range over the past six months, since
yields of intermediate municipals were choppy, moving lower through early
February and subsequently rising. We focused on both credit research and
buying callable bonds that were undervalued in the marketplace to boost
returns.
We took advantage of several opportunities to purchase bonds our credit
analysts considered to have improving financial characteristics. The most
profitable were lower-investment-grade hospital bonds and securities issued by
the Denver International Airport. Among the former, BBB-rated Maryland and
Florida hospital bonds appreciated in value following credit upgrades by major
rating agencies. Also, the successful opening of the Denver International
Airport, combined with a refunding of a portion of its outstanding debt,
resulted in rising airport bond prices and a significant tightening of their
yields relative to high-grade investments.
In addition, we concentrated on increasing the fund's yield by adding
longer-term callable bonds trading to shorter call dates. These securities
trade at higher yields than similar noncallable bonds because of the call
option, often generating good risk-adjusted returns.
Performance Comparison
Periods Ended 4/30/96 6 Months 12 Months
_____________________________________________________________________________
Municipal Intermediate Fund 1.38% 7.47%
Lipper Intermediate Municipal
Debt Funds Average 0.93 6.35
In the current environment, we expect to continue our current strategy. While
managing duration, we will also seek opportunities to benefit shareholders
through credit research and market inefficiencies.
These strategies served fund investors well, generating returns in excess of
the peer group average during the past 6- and 12-month periods and good
absolute performance over the longer term.
Summit Municipal Income Fund
The Income Fund maintained an aggressive investment posture for the better
part of the past 12 months because of the sluggish economic environment that
persisted through the end of 1995. Fund duration was generally kept around
eight years or above and the weighted average maturity in the vicinity of 20
to 21 years.
However, as we entered a period of stronger growth with fading prospects for a
significant reduction in the budget deficit, we increased the fund's
short-term reserves. We also invested in securities whose prices would be less
responsive to interest rate changes by swapping lower-coupon for higher-coupon
bonds.
Chart 2 - Quality Diversification
The fund's ability to hold up to 20% of net assets in below-investment-grade
securities helped performance early this year, since they did not decline in
value as much as higher-quality bonds. While the prices of most fixed income
securities rise and fall with interest rates, the risk and reward
characteristics of lower-grade bonds are different from those of high-quality
securities. Therefore, a blend of the two can produce attractive returns with
reduced overall volatility. At April 30, 15% of portfolio assets were invested
in BB-rated bonds, the highest noninvestment-grade category.
The fund is currently positioned in what we call a neutral mode. We are not
optimistic about yields falling back to the low levels of late 1995, but we
are willing to add new positions where circumstances warrant, given the higher
rates currently in place.
Performance Comparison
Periods Ended 4/30/96 6 Months 12 Months
_____________________________________________________________________________
Municipal Income Fund 1.39% 8.02%
Lipper General Municipal
Debt Funds Average 0.67 6.68
During a period of both rising and falling yields, your fund generated returns
higher than those of the peer group average over the past 6 and 12 months and
a good absolute return for the longer period.
OUTLOOK
The bond market will be paying close attention to signs of robust economic
growth and any indication of accelerating inflation. If the economy continues
to expand at the same rate in the second quarter as in the first, the bond
market could experience further weakness. Fixed income investors have been
cautiously watching higher oil and grain prices, as well as hints of higher
wages.
However, higher bond yields during the past four months may already reflect
much of the bad news. In addition, the economic cycle has matured. It is
possible that growth in the first and second quarters will be stronger than in
the second half of the year. Higher interest rates should have the effect of
slowing interest rate-sensitive activities such as construction and home
sales, while commodity inflation may eventually subside.
After lagging the taxable fixed income market in 1995, municipals have
outperformed taxable equivalents through the first four months of 1996.
Municipals no longer look as undervalued versus taxables as they were last
year, but they offer a more attractive level of tax-free income given the
overall rise in rates. Therefore, if rates continue to move higher, we would
view this as an opportunity to become more aggressive and lock in higher
yields before the economy returns to a slower rate of growth.
As always, we appreciate your continuing confidence in T. Rowe Price.
Respectfully submitted,
William T. Reynolds
Director, Fixed Income Division
Mary J. Miller
Director, Municipal Bond Department
May 24, 1996
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Key Statistics
10/31/95 4/30/96
_____________________________________________________________________________
Summit Municipal Money Market Fund
_____________________________________________________________________________
Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months 0.018 0.016
For 12 months 0.035 0.034
Dividend Yield (7-Day Compound) * 3.57% 3.53%
Weighted Average Maturity (days) 66 51
Weighted Average Quality ** First Tier First Tier
_____________________________________________________________________________
Summit Municipal Intermediate Fund
_____________________________________________________________________________
Price Per Share $ 10.17 $ 10.07
Dividends Per Share
For 6 months 0.24 0.24
For 12 months 0.48 0.49
Dividend Yield *
For 6 months 4.88% 4.79%
For 12 months 5.05 4.90
Weighted Average Maturity (years) 8.0 8.9
Weighted Average Effective
Duration (years) 5.2 5.5
Weighted Average Quality *** AA- AA-
_____________________________________________________________________________
Summit Municipal Income Fund
_____________________________________________________________________________
Price Per Share $ 9.84 $ 9.71
Dividends Per Share
For 6 months 0.27 0.27
For 12 months 0.54 0.54
Dividend Yield *
For 6 months 5.64% 5.49%
For 12 months 5.84 5.67
Weighted Average Maturity (years) 20.2 20.5
Weighted Average Effective
Duration (years) 7.7 8.3
Weighted Average Quality *** A A
* 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.
** All securities purchased in the money fund are rated in the two highest
categories (tiers) as established by national rating agencies or, if
unrated, are deemed of comparable quality by T. Rowe Price.
*** Based on T. Rowe Price research.
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
10/31/95 4/30/96
_____________________________________________________________________________
Summit Municipal Money Market Fund
_____________________________________________________________________________
Industrial and Pollution Control Revenue 24% 22%
Air and Sea Transportation Revenue 8 13
Prerefunded Bonds 5 12
Educational Revenue 9 8
Housing Finance Revenue 9 8
General Obligation - Local 9 6
Escrowed - 5
General Obligation - State 6 5
Hospital Revenue 11 4
Water and Sewer Revenue 4 4
Electric Revenue 4 4
Lease Revenue 3 3
Nuclear Revenue 3 2
Solid Waste Revenue 5 2
Pooled Loan Revenue - 1
Other Revenue 2 -
Other Assets Less Liabilities - 2 1
_____________________________________________________________________________
Summit Municipal Intermediate Fund
_____________________________________________________________________________
Air and Sea Transportation Revenue 11% 14%
Hospital Revenue 9 9
Solid Waste Revenue 4 9
Prerefunded Bonds 15 9
Dedicated Tax Revenue 7 8
Ground Transportation Revenue 7 8
Water and Sewer Revenue 9 7
General Obligation Revenue 5 7
Housing Finance Revenue 7 6
Industrial and Pollution Control Revenue 6 6
Lease Revenue 6 5
Educational Revenue 8 5
General Obligation Revenue 5 4
Nuclear Revenue - 3
Electric Revenue - 1
Other Assets Less Liabilities 1 - 1
_____________________________________________________________________________
Summit Municipal Income Fund
_____________________________________________________________________________
Hospital Revenue 8% 16%
Housing Finance Revenue 16 13
Ground Transportation Revenue 9 10
Air and Sea Transportation Revenue 6 8
Industrial and Pollution Control Revenue 11 7
Water and Sewer Revenue 12 7
Solid Waste Revenue 10 6
General Obligation - Local 4 6
Educational Revenue 6 5
Nuclear Revenue 6 5
Lease Revenue - 4
Electric Revenue 2 4
Dedicated Tax Revenue 4 2
Life Care/Nursing Home 1 2
Other Revenue 3 2
General Obligation - State 3 2
Prerefunded Bonds - 1
Other Assets Less Liabilities - 1 -
Performance Comparison
These charts show the value of a hypothetical $10,000 investment in each fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index.
The index return does not reflect expenses, which have been deducted from the
fund's return.
Chart 3 - SEC Graph - Summit Municipal Money Market Fund
Chart 4 - SEC Graph - Summit Municipal Intermediate Fund
Chart 5 - SEC Graph - Summit Municipal Income Fund
Average Annual Compound Total Return
1 Since Inception
Periods Ended 4/30/96 Year Inception Date
_____________________________________________________________________________
Summit Municipal Money Market Fund 3.45% 3.02% 10/29/93
Summit Municipal Intermediate Fund 7.47 5.06 10/29/93
Summit Municipal Income Fund 8.02 4.33 10/29/93
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
T. Rowe Price Summit Municipal Money Market Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months Year 10/29/93
Ended Ended Through
4/30/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment income 0.016 0.035 0.023
Distributions
Net investment income (0.016) (0.035) (0.023)
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000
Ratios/Supplemental Data
Total return 1.65% 3.53% 2.35%
Ratio of expenses to
average net assets 0.45%! 0.45% 0.45%!
Ratio of net investment
income to average
net assets 3.30%! 3.48% 2.56%!
Net assets, end of period
(in thousands) $ 83,257 $ 77,958 $ 42,592
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Intermediate Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months Year 10/29/93
Ended Ended Through
4/30/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 10.17 $ 9.59 $ 10.00
Investment activities
Net investment income 0.24 0.48 0.43
Net realized and
unrealized gain (loss) (0.10) 0.58 (0.41)
Total from
investment activities 0.14 1.06 0.02
Distributions
Net investment income (0.24) (0.48) (0.43)
NET ASSET VALUE
End of period $ 10.07 $ 10.17 $ 9.59
Ratios/Supplemental Data
Total return 1.38% 11.39% 0.18%
Ratio of expenses to
average net assets 0.50%! 0.50% 0.50%!
Ratio of net investment
income to average
net assets 4.76%! 4.93% 4.50%!
Portfolio turnover rate 83.80%! 86.1% 157.5%!
Net assets, end of period
(in thousands) $ 25,340 $ 22,145 $ 13,309
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Income Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months Year 10/29/93
Ended Ended Through
4/30/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 9.84 $ 9.08 $ 10.00
Investment activities
Net investment income 0.27 0.54 0.50
Net realized and
unrealized gain (loss) (0.13) 0.76 (0.92)
Total from
investment activities 0.14 1.30 (0.42)
Distributions
Net investment income (0.27) (0.54) (0.50)
NET ASSET VALUE
End of period $ 9.71 $ 9.84 $ 9.08
Ratios/Supplemental Data
Total return 1.39% 14.68% (4.38)%
Ratio of expenses to
average net assets 0.50%! 0.50% 0.50%!
Ratio of net investment
income to average
net assets 5.47%! 5.68% 5.23%!
Portfolio turnover rate 70.1%! 73.7% 161.1%!
Net assets, end of period
(in thousands) $ 13,113 $ 11,108 $ 6,453
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Money Market Fund
Unaudited April 30, 1996
Statement of Net Assets Par Value
In thousands
ALABAMA 3.9%
Alabama, GO, 5.35%, 9/1/96 $ 200 $ 201
Jefferson County Sewer, RAW,
VRDN (Currently 4.15%) 3,000 3,000
_____________________________________________________________________________
Total Alabama (Cost $3,201) 3,201
ARIZONA 2.0%
Maricopa County, GO, TAN, 4.50%, 7/31/96 565 566
Salt River Agricultural Improvement and Power Dist.
7.00%, 1/1/19 (Prerefunded 1/1/97!) 100 102
TECP, 3.40%, 6/7/96 1,000 1,000
_____________________________________________________________________________
Total Arizona (Cost $1,668) 1,668
CALIFORNIA 3.9%
California, GO, RAN, 4.25%, 6/28/96 1,000 1,001
Oakland, COP, VRDN (Currently 4.15%) 2,200 2,200
_____________________________________________________________________________
Total California (Cost $3,201) 3,201
DISTRICT OF COLUMBIA 1.2%
Dist. of Columbia, American Univ.,
VRDN (Currently 4.15%) 1,000 1,000
_____________________________________________________________________________
Total District of Columbia (Cost $1,000) 1,000
FLORIDA 3.8%
Broward County, Public Improvement, 7.40%, 1/1/00
(Prerefunded 7/1/96!) 100 103
Florida Board of Ed., GO, 5.40%, 6/1/96 300 300
Greater Orlando Aviation Auth.,
TECP, 3.50%, 5/24/96 * 1,000 1,000
Orlando - Orange County Expressway Auth.
Expressway Revenue
7.00%, 7/1/16 (Prerefunded 7/1/96!) 200 201
7.375%, 7/1/06 (Prerefunded 7/1/96!) 500 513
Sunshine State Gov't. Fin. Commission, TECP,
3.40%, 6/17/96 1,000 1,000
_____________________________________________________________________________
Total Florida (Cost $3,117) 3,117
GEORGIA 4.6%
Atlanta, Airport Fac.,
4.60%, 1/1/97 (AMBAC Insured) $ 200 $ 201
Dekalb County, GO,
7.30%, 1/1/98 (Prerefunded 1/1/97!) 700 731
Savannah Economic Dev. Auth., Home Depot,
VRDN (Currently 4.25%) 2,900 2,900
_____________________________________________________________________________
Total Georgia (Cost $3,832) 3,832
HAWAII 0.9%
Honolulu City & County, GO, 7.20%, 8/1/06
(Prerefunded 8/1/96!) 250 256
Maui County, 7.10%, 10/1/03
(Prerefunded 10/1/96!) 500 515
Total Hawaii (Cost $771) 771
ILLINOIS 5.7%
Chicago Metropolitan Water Dist.,
4.50%, 12/1/96 500 503
Lake County Water and Sewer
W. W. Grainger, Inc.,
VRDN (Currently 4.40%) * 1,500 1,500
Southwestern Illinois Dev. Auth.,
Solid Waste Disposal
Shell Oil Company, Wood River,
VRDN (Currently 4.25%) * 2,700 2,700
_____________________________________________________________________________
Total Illinois (Cost $4,703) 4,703
INDIANA 4.2%
Petersburg Solid Waste Disposal
Indianapolis Power and Light Company
VRDN (Currently 4.20%) * 3,500 3,500
_____________________________________________________________________________
Total Indiana (Cost $3,500) 3,500
KANSAS 1.3%
Butler County, Solid Waste Disposal Fac.
Texaco Inc., VRDN (Currently 4.30%) * 1,100 1,100
_____________________________________________________________________________
Total Kansas (Cost $1,100) 1,100
LOUISIANA 0.7%
Plaquemines Parish
The British Petroleum Company,
VRDN (Currently 4.30%) * $ 600 $ 600
_____________________________________________________________________________
Total Louisiana (Cost $600) 600
MARYLAND 4.7%
Howard County, 7.75%, 8/1/08
(Prerefunded 8/1/96!) 105 109
Maryland, GO, 6.40%, 7/1/96 250 251
Maryland DOT, 5.70%, 9/1/96 150 151
Maryland HHEFA
Greater Baltimore Medical Center
7.10%, 7/1/17 (Prerefunded 7/1/96!) 20 21
Montgomery County
GO, 6.90%, 6/15/96 100 100
GO, 5.00%, 10/1/96 200 201
Prince George's County IDA
Upper Marlboro Justice Center, 3.90%, 6/30/96
(MBIA Insured) 200 200
Washington Suburban Sanitation Dist.
General Construction
GO, 6.60%, 11/1/05 (Prerefunded 11/1/96!) 865 896
GO, 7.00%, 6/1/96 465 466
GO, 7.25%, 1/1/04 (Prerefunded 1/1/97!) 300 312
Sewage Disposal, GO, 5.50%, 6/1/96 550 551
7.20%, 6/1/96 200 200
Water Supply, GO, 5.50%, 6/1/96 450 451
_____________________________________________________________________________
Total Maryland (Cost $3,909) 3,909
MASSACHUSETTS 0.7%
Massachusetts, GO,
7.125%, 10/1/05 (Prerefunded 10/1/96!) 565 584
_____________________________________________________________________________
Total Massachusetts (Cost $584) 584
MICHIGAN 0.6%
Detroit City School Dist.,
GO, RAN, 4.50%, 5/1/96 500 500
_____________________________________________________________________________
Total Michigan (Cost $500) 500
MINNESOTA 1.7%
Becker, PCR, Northern States Power Co.,
TECP, 3.35%, 5/16/96 $ 600 $ 600
Univ. of Minnesota
3.25%, 8/1/96 300 300
TECP, 3.45%, 5/14/96 500 500
_____________________________________________________________________________
Total Minnesota (Cost $1,400) 1,400
MISSISSIPPI 4.3%
Jackson County Industrial Sewage Fac.,
Chevron, VRDN (Currently 4.25%) * 3,600 3,600
_____________________________________________________________________________
Total Mississippi (Cost $3,600) 3,600
NEW HAMPSHIRE 0.3%
New Hampshire HHEFA, Dartmouth Ed. Loan Corp.
4.10%, 6/1/96 250 250
_____________________________________________________________________________
Total New Hampshire (Cost $250) 250
NEW MEXICO 4.8%
Albuquerque, Airport, VRDN (Currently 4.20%) * 3,000 3,000
Santa Fe, Single Family Mortgage,
4.00%, 11/15/96 * 1,000 1,000
_____________________________________________________________________________
Total New Mexico (Cost $4,000) 4,000
NEW YORK 0.6%
Copiague Union Free School Dist.,
GO, TAN, 4.50%, 6/28/96 500 500
_____________________________________________________________________________
Total New York (Cost $500) 500
NORTH CAROLINA 0.6%
Buncombe County Metropolitan Sewage Dist.
7.875%, 7/1/06 (Prerefunded 7/1/96!) 300 308
Wake County, 6.20%, 5/1/99
(Prerefunded 5/1/96!) 200 203
_____________________________________________________________________________
Total North Carolina (Cost $511) 511
OHIO 0.3%
Akron, Sanitary Sewer System,
VRDN (Currently 4.10%) 255 255
_____________________________________________________________________________
Total Ohio (Cost $255) 255
PENNSYLVANIA 4.8%
Pennsylvania Higher Ed. Fac. Auth.
Student Loan, VRDN (Currently 4.15%) * $ 4,000 $ 4,000
_____________________________________________________________________________
Total Pennsylvania (Cost $4,000) 4,000
SOUTH DAKOTA 2.4%
South Dakota Housing Dev. Auth.
Home Ownership Mortgage, 4.05%, 10/24/96 * 2,000 2,000
_____________________________________________________________________________
Total South Dakota (Cost $2,000) 2,000
TENNESSEE 0.8%
Hamilton County, GO, 4.55%, 5/1/96 700 700
_____________________________________________________________________________
Total Tennessee (Cost $700) 700
TEXAS 15.6%
Austin Utility Systems,
7.75%, 11/15/12 (Prerefunded 5/15/96!) 780 797
Dallas, GO, 6.80%, 7/1/96
(Escrowed to Maturity) 200 201
Dallas Waterworks and Sewer, 6.00%, 10/1/06
(Prerefunded 10/1/96!) 490 503
Gulf Coast Waste Disposal Auth., PCR
Amoco Oil
3.45%, 10/1/96 * 2,000 2,000
VRDN (Currently 4.25%) * 500 500
Harris County Health Fac. Dev. Corp.
Sisters of Charity of the Incarnate Word, TECP
3.30 - 3.35%, 5/7 - 7/31/96 3,000 3,000
Houston
Water and Sewer
8.10%, 12/1/08 (Prerefunded 12/1/96!) 285 298
8.10%, 12/1/10 (BIGI Insured)
(Prerefunded 12/1/96!) 245 256
8.20%, 12/1/15 (Prerefunded 12/1/96!) 190 199
Houston Airport, TECP, 3.25 - 3.60%,
5/6 - 7/10/96 * 3,500 3,500
Texas, GO, TRAN, 4.75%, 8/30/96 1,700 1,704
_____________________________________________________________________________
Total Texas (Cost $12,958) 12,958
UTAH 4.3%
Salt Lake County, Kennecott / RTZ Corp.
Solid Waste Disposal, VRDN (Currently 4.35%) * $ 3,600 $ 3,600
_____________________________________________________________________________
Total Utah (Cost $3,600) 3,600
VERMONT 0.6%
Vermont Ed. and Health Buildings Fin. Agency
Middlebury College, 4.35%, 5/1/96 500 500
_____________________________________________________________________________
Total Vermont (Cost $500) 500
VIRGINIA 15.3%
Alexandria IDA, Ogden Martin,
VRDN (Currently 4.20%) * 1,950 1,950
Capital Region Airport Commission
Richmond Int'l. Airport
VRDN (Currently 4.20%), (AMBAC Insured) * 3,000 3,000
Norfolk, 7.00%, 6/1/98 (Prerefunded 6/1/96!) 250 256
Suffolk Redev. and Housing Auth.
Prince William Commons
4.00%, 5/30/96 (Escrowed to Maturity)* 4,000 4,000
Virginia HDA, Commonwealth Mortgage,
5.25%, 7/1/96 * 2,500 2,505
5.50%, 7/1/96 * 1,000 1,002
_____________________________________________________________________________
Total Virginia (Cost $12,713) 12,713
WASHINGTON 2.6%
Snohomish County Public Utility Dist.
8.00%, 1/1/15 (Prerefunded 1/1/97!) 1,000 1,048
7.875%, 1/1/06 (BIGI Insured)
(Prerefunded 1/1/97!) 1,000 1,047
Univ. of Washington
Housing and Dining, 4.00%, 12/1/96
(MBIA Insured) 100 100
_____________________________________________________________________________
Total Washington (Cost $2,195) 2,195
WISCONSIN 1.4%
Milwaukee, GO, 4.80%, 2/15/97 400 403
Wisconsin, GO, 4.70%, 5/1/96 460 460
GO, 6.80%, 7/1/98 (Prerefunded 7/1/96!) $ 100 $ 102
GO, 7.80%, 7/1/00 (Prerefunded 7/1/96!) 210 216
_____________________________________________________________________________
Total Wisconsin (Cost $1,181) 1,181
WYOMING 0.2%
Sublette County, PCR, Exxon,
VRDN (Currently 4.15%) * 200 200
_____________________________________________________________________________
Total Wyoming (Cost $200) 200
Total Investments in Securities
98.8% of Net Assets (Cost $82,249) $ 82,249
Other Assets Less Liabilities 1,008
NET ASSETS $ 83,257
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ 4
Paid-in-capital applicable to 83,252,991 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corpoartion authorized 83,253
NET ASSETS $ 83,257
NET ASSET VALUE PER SHARE $ 1.00
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BIGI Bond Investors Guaranty Insurance
COP Certificates of Participation
DOT Department of Transportation
GO General Obligation
HDA Housing Development 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.
T. Rowe Price Summit Municipal Intermediate Fund
Unaudited April 30, 1996
Statement of Net Assets Par Value
In thousands
ALABAMA 2.1%
Birmingham Airport Auth.,
7.35%, 7/1/04 (AMBAC Insured) * $ 500 $ 541
_____________________________________________________________________________
Total Alabama (Cost $532) 541
CALIFORNIA 3.9%
California Public Works Board
Dept. of Corrections, 6.00%, 11/1/05
(MBIA Insured) 250 268
Foothill/Eastern Transportation Corridor Agency
Toll Road, Zero Coupon, 1/1/05 350 202
San Joaquin Hills Transportation Corridor Agency
Toll Road, Zero Coupon, 1/1/02 300 204
Upland, San Antonio Community Hosp.,
COP, 5.75%, 1/1/07 300 302
_____________________________________________________________________________
Total California (Cost $944) 976
COLORADO 2.1%
Denver City and County Airport, 6.75%, 11/15/22
(MBIA Insured) * 500 521
_____________________________________________________________________________
Total Colorado (Cost $532) 521
DISTRICT OF COLUMBIA 2.1%
Washington D.C. Metropolitan Airport Auth.,
6.625%, 10/1/12 (MBIA Insured) * 500 524
_____________________________________________________________________________
Total District of Columbia (Cost $548) 524
FLORIDA 12.1%
Dade County School Board, COP,
5.75%, 5/1/08 (MBIA Insured) 365 374
Dade County Seaport, GO,
5.75%, 10/1/03 (MBIA Insured) 315 333
Florida Division of Bond Fin.
Dept. of Environmental Preservation,
6.00%, 7/1/06 (MBIA Insured) 500 533
Florida Turnpike Auth.,
5.50%, 7/1/05 (AMBAC Insured) 500 518
Indian Trace Community Dev. Dist.
Water Management, 5.50%, 5/1/07
(MBIA Insured) 500 510
Leesburg, Leesburg Regional Medical Center,
5.20%, 7/1/02 500 498
St. Lucie County Solid Waste Disposal
Florida Light and Power,
VRDN (Currently 4.30%) * $ 300 $ 300
_____________________________________________________________________________
Total Florida (Cost $3,047) 3,066
HAWAII 3.4%
Hawaii
Airport Systems
7.50%, 7/1/20 (FGIC Insured) * 300 328
6.70%, 7/1/05 (MBIA Insured) * 500 540
_____________________________________________________________________________
Total Hawaii (Cost $851) 868
ILLINOIS 4.8%
Chicago, GO, 5.75%, 1/1/05 (AMBAC Insured) 660 688
Chicago - O'Hare Int'l. Airport
Int'l. Terminal
7.50%, 1/1/05 * 160 175
7.50%, 1/1/05 (MBIA Insured) * 250 272
Illinois HFA
Glen Oaks Medical Center/Hinsdale Health System
9.50%, 11/15/15 75 87
_____________________________________________________________________________
Total Illinois (Cost $1,213) 1,222
KENTUCKY 1.7%
Kentucky Property and Buildings Commission,
6.40%, 11/1/01 390 421
_____________________________________________________________________________
Total Kentucky (Cost $422) 421
LOUISIANA 2.4%
Saint Charles Parish, PCR, Shell Oil,
VRDN (Currently 4.25%) * 600 600
_____________________________________________________________________________
Total Louisiana (Cost $600) 600
MARYLAND 3.4%
Northeast Maryland Waste Disposal Auth.
Southwest Resource Recovery Fac.
5.80%, 7/1/04 * 240 246
7.10%, 1/1/03 (MBIA Insured) 550 614
_____________________________________________________________________________
Total Maryland (Cost $825) 860
MASSACHUSETTS 1.6%
Massachusetts, GO, 6.30%, 11/1/05
(FGIC Insured) $ 250 $ 273
Massachusetts Port Auth., 7.375%, 7/1/10
(FGIC Insured) * 135 146
_____________________________________________________________________________
Total Massachusetts (Cost $397) 419
MICHIGAN 4.2%
Greater Detroit Resource Recovery Auth.,
6.25%, 12/13/05 (AMBAC Insured) 1,000 1,077
_____________________________________________________________________________
Total Michigan (Cost $1,075) 1,077
MISSISSIPPI 1.6%
Jackson County Industrial Sewage Fac., Chevron,
VRDN (Currrently 4.25%) * 200 200
Mississippi Business Fin. Corp.
Solid Waste Disposal, Mississippi Power Company
VRDN (Currently 4.25%) * 200 200
_____________________________________________________________________________
Total Mississippi (Cost $400) 400
NEW HAMPSHIRE 2.0%
New Hampshire Housing Fin. Auth.
Single Family
5.90%, 1/1/01 * 115 117
5.90%, 7/1/01 * 115 118
6.00%, 7/1/02 * 125 128
6.10%, 1/1/03 * 130 133
_____________________________________________________________________________
Total New Hampshire (Cost $485) 496
NEW YORK 7.4%
Dormitory Auth. of the State of New York
City Univ., 6.875%, 7/1/14 (MBIA Insured) 350 379
State Univ. Ed. Fac., 7.40%, 5/15/01 150 162
Nassau County IDA, Hofstra Univ., 6.70%, 1/1/09 250 269
New York Mortgage Agency, Homeownership Mortgage,
5.80%, 10/1/06 * 500 508
New York State Environmental Fac. Corp., PCR
Water Revolving Fund, 6.875%, 6/15/10 $ 500 $ 545
_____________________________________________________________________________
Total New York (Cost $1,775) 1,863
OHIO 7.4%
Cleveland, Waterworks, 6.50%, 1/1/21 (AMBAC Insured)
(Prerefunded 1/1/02!) 750 825
Franklin County, Children's Hosp.,
5.30%, 11/1/05 1,055 1,050
_____________________________________________________________________________
Total Ohio (Cost $1,832) 1,875
PENNSYLVANIA 1.8%
Pennsylvania Intergovernmental Cooperative Auth.
Special Tax, 7.00%, 6/15/04 (FGIC Insured) 400 452
_____________________________________________________________________________
Total Pennsylvania (Cost $437) 452
PUERTO RICO 4.1%
Puerto Rico Commonwealth, GO,
5.50%, 7/1/06 (MBIA Insured) 1,000 1,038
_____________________________________________________________________________
Total Puerto Rico (Cost $1,023) 1,038
SOUTH CAROLINA 5.9%
Greenville Hosp. Systems, 5.25%, 5/1/17 500 448
South Carolina Public Service Auth.
6.50%, 7/1/24 (AMBAC Insured)
(Prerefunded 7/1/02!) 495 547
5.20%, 7/1/04 (MBIA Insured) 500 508
_____________________________________________________________________________
Total South Carolina (Cost $1,476) 1,503
TEXAS 13.4%
Austin Airport, 5.75%, 11/15/08
(MBIA Insured) * 500 505
Brazos Higher Ed. Auth., Student Loan,
5.95%, 6/1/02 * 500 518
Gulf Coast IDA
Marine Terminal, Amoco Oil,
VRDN (Currently 4.25%) * 600 600
Gulf Coast Waste Disposal Auth.,
PCR, Amoco Oil, VRDN (Currently 4.25%) * 100 100
Harris County
Toll Roads
6.50%, 8/15/17
(AMBAC Insured) (Prerefunded 8/15/02!) $ 750 $ 831
Houston Water and Sewer System,
7.00%, 12/1/03 (AMBAC Insured) 270 305
San Antonio, Water Systems,
6.30%, 5/15/04 (FGIC Insured) 500 541
_____________________________________________________________________________
Total Texas (Cost $3,280) 3,400
VIRGINIA 11.6%
Alexandria IDA, Ogden Martin,
VRDN (Curently 4.20%) * 300 300
Chesapeake Bay Bridge and Tunnel Dist.,
5.30%, 7/1/03 (FGIC Insured) 1,000 1,026
Leesburg, Utility Systems,
6.10%, 7/1/07 (MBIA Insured) 500 528
Virginia HDA
5.75%, 7/1/99 * 500 511
6.125%, 1/1/99 * 50 51
Virginia Transportation Board
Northern Virginia Transportation Dist.,
5.80%, 5/15/04 500 528
_____________________________________________________________________________
Total Virginia (Cost $2,894) 2,944
WASHINGTON 1.7%
Washington, GO, 6.50%, 5/1/04 400 439
_____________________________________________________________________________
Total Washington (Cost $426) 439
Total Investments in Securities
100.7% of Net Assets (Cost $25,015) $ 25,505
Other Assets Less Liabilities (165)
NET ASSETS $ 25,340
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions (280)
Net unrealized gain (loss) 490
Paid-in-capital applicable to 2,515,356 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 25,130
NET ASSETS $ 25,340
NET ASSET VALUE PER SHARE $ 10.07
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
GO General Obligation
HDA Housing Development Authority
HFA Health 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.
T. Rowe Price Summit Municipal Income Fund
Unaudited April 30, 1996
Statement of Net Assets Par Value
In thousands
ALABAMA 0.8%
Mobile IDB, Mobile Energy Services,
6.95%, 1/1/20 $ 100 $ 104
_____________________________________________________________________________
Total Alabama (Cost $100) 104
ALASKA 0.7%
Alaska Housing Fin. Corp.,
5.875%, 12/1/24 (MBIA Insured) 100 96
_____________________________________________________________________________
Total Alaska (Cost $98) 96
CALIFORNIA 16.4%
California Pollution Control Fin. Auth., PCR
Pacific Gas and Electric
5.85%, 12/1/23 (MBIA Insured) * 250 239
Concord Fin. Auth., Concord Police Fac.,
5.25%, 8/1/19 320 280
Foothill/Eastern Transportation Corridor Agency
California Toll Road
Zero Coupon, 1/1/26 500 67
6.00%, 1/1/34 200 186
Long Beach Harbor,
5.25%, 5/15/25 (MBIA Insured) * 250 221
Los Angeles County, Marina del Rey, COP,
5.25%, 7/1/96 200 200
San Francisco City and County Airports
Int'l. Airport,
5.70%, 5/1/26 (MBIA Insured) * 250 235
San Joaquin Hills Transportation Corridor Agency
Toll Road
Zero Coupon, 1/1/02 215 147
Zero Coupon, 1/1/19 550 122
6.75%, 1/1/32 150 152
Southern California Public Power Auth.,
6.00%, 7/1/12 200 197
Turlock Irrigation Dist.,
6.00%, 1/1/10 (MBIA Insured) 100 105
_____________________________________________________________________________
Total California (Cost $2,147) 2,151
DISTRICT OF COLUMBIA 0.8%
Metropolitan Washington D.C. Airport Auth.
8.10%, 10/1/08 (BIGI Insured) * 100 109
_____________________________________________________________________________
Total District of Columbia (Cost $107) 109
GEORGIA 1.7%
Rockdale County Dev. Auth., Solid Waste Disposal
Visy Paper, Inc., 7.50%, 1/1/26 * $ 225 $ 227
_____________________________________________________________________________
Total Georgia (Cost $226) 227
HAWAII 1.8%
Honolulu City and County, GO,
5.25%, 11/1/13 (MBIA Insured) 250 237
_____________________________________________________________________________
Total Hawaii (Cost $242) 237
IDAHO 0.8%
Idaho Housing Agency, Single Family
6.60%, 7/1/27 (FHA Guaranteed) * 100 101
_____________________________________________________________________________
Total Idaho (Cost $100) 101
ILLINOIS 9.0%
Chicago, GO
5.50%, 1/1/18 (AMBAC Insured) 250 234
5.125%, 1/1/16 (FGIC Insured) 300 269
Chicago - O'Hare Int'l. Airport
Int'l. Terminal, 7.50%, 1/1/17
(MBIA Insured) 85 92
Illinois HFA
Community Hosp. of Ottawa, 6.85%, 8/15/24 200 201
Glen Oaks Medical Center / Hinsdale Health System
9.50%, 11/15/15 75 86
Holy Cross Hosp., 6.70%, 3/1/14 300 298
_____________________________________________________________________________
Total Illinois (Cost $1,200) 1,180
KENTUCKY 2.4%
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
_____________________________________________________________________________
Total Kentucky (Cost $300) 317
LOUISIANA 1.5%
Lake Charles Harbor & Terminal Dist., PCR
CONOCO, VRDN (Currently 4.30%) * 200 200
_____________________________________________________________________________
Total Louisiana (Cost $200) 200
MARYLAND 2.6%
Maryland CDA
Single Family
5.875%, 4/1/17 * $ 100 $ 100
7.25%, 4/1/19 140 145
7.375%, 4/1/26 * 90 92
_____________________________________________________________________________
Total Maryland (Cost $334) 337
MASSACHUSETTS 1.8%
Massachusetts Port Auth., 7.125%, 7/1/12 110 111
Massachusetts Turnpike Auth., GO, BAN,
5.00%, 6/1/99 125 127
_____________________________________________________________________________
Total Massachusetts (Cost $239) 238
MICHIGAN 2.0%
Michigan Hosp. Fin. Auth., Henry Ford Hosp.,
5.25%, 11/15/20 300 268
_____________________________________________________________________________
Total Michigan (Cost $283) 268
MISSISSIPPI 5.8%
Claiborne County, PCR
Systems Energy Resources, 7.30%, 5/1/25 150 155
Jackson County Industrial Sewage Fac.
Chevron USA, VRDN (Currently 4.25%) 300 300
Mississippi Business Fin. Corp.
Solid Waste Disposal, Mississippi Power and Light
VRDN (Currently 4.25%) * 200 200
Warren County, PCR
Mississippi Power and Light, 7.00%, 4/1/22 100 103
_____________________________________________________________________________
Total Mississippi (Cost $750) 758
NEVADA 1.9%
Clark County Airport Fac.
MaCarren Int'l. Airport
6.00%, 7/1/17 (MBIA Insured) * 250 244
_____________________________________________________________________________
Total Nevada (Cost $241) 244
NEW HAMPSHIRE 1.6%
New Hampshire Housing Fin. Auth., Single Family
6.85%, 7/1/14 * $ 200 $ 206
_____________________________________________________________________________
Total New Hampshire (Cost $200) 206
NEW JERSEY 9.6%
New Jersey HFFA
Columbus Hosp., 7.50%, 7/1/21 240 248
Irvington General Hosp.
5.875%, 8/1/06 (FHA Guaranteed) 220 222
Raritan Bay Medical Center, 7.25%, 7/1/27 200 201
New Jersey Sports and Exposition Auth.
Monmouth Park, 8.00%, 1/1/25 100 107
New Jersey Wastewater Treatment Trust,
6.375%, 4/1/11 200 212
Rutgers, The State Univ., 6.35%, 5/1/06 250 269
_____________________________________________________________________________
Total New Jersey (Cost $1,209) 1,259
NEW YORK 15.4%
Dormitory Auth. of the State of New York
Dept. of Health, 5.50%, 7/1/25 300 266
Nyack Hosp., 6.00%, 7/1/06 250 247
Erie County Water Auth.
Zero Coupon, 12/1/17 (AMBAC Insured) 550 115
Nassau County IDA, Hofstra Univ., 6.80%, 1/1/11 290 310
New York City IDA, Solid Waste Disposal
Visy Paper, 7.95%, 1/1/28 * 100 101
New York City Municipal Water Fin. Auth.
Water and Sewer
6.00%, 6/15/09 200 207
5.00%, 6/15/17 (FGIC Insured) 100 88
New York State Environmental Fac. Corp., PCR
State Water Revolving Fund, 6.90%, 11/15/15 200 224
New York State Mortgage Agency
Homeownership Mortgage
6.45%, 10/1/17 100 102
6.625%, 4/1/25 * $ 100 $ 102
7.50%, 4/1/26 * 250 262
_____________________________________________________________________________
Total New York (Cost $1,975) 2,024
OHIO 0.8%
Ohio Water Dev. Auth., PCR, Toledo Edison,
8.00%, 10/1/23 100 104
_____________________________________________________________________________
Total Ohio (Cost $100) 104
OKLAHOMA 1.2%
Tulsa Municipal Airport, American Airlines,
7.375%, 12/1/20 * 150 159
_____________________________________________________________________________
Total Oklahoma (Cost $148) 159
PENNSYLVANIA 4.4%
Beaver County IDA, PCR, Cleveland Electric,
7.75%, 7/15/25 100 103
Erie County IDA, Beverly Enterprises,
6.625%, 5/1/02 100 100
Philadelphia Airport Auth.,
6.10%, 6/15/25 (AMBAC Insured) * 75 74
Schuylkill County IDA
Schuylkill Energy Resources, Inc.,
6.50%, 1/1/10 * 295 295
_____________________________________________________________________________
Total Pennsylvania (Cost $543) 572
PUERTO RICO 1.8%
Puerto Rico Commonwealth, GO, 5.50%, 7/1/15 250 235
_____________________________________________________________________________
Total Puerto Rico (Cost $236) 235
SOUTH DAKOTA 1.5%
South Dakota HDA, Homeownership Mortgage,
6.65%, 5/1/14 185 191
_____________________________________________________________________________
Total South Dakota (Cost $185) 191
TEXAS 4.7%
Harris County, Toll Road,
6.375%, 8/15/24 (MBIA Insured) 250 259
Tarrant County Health Fac.
Harris Methodist Health Systems
5.125%, 9/1/12 (AMBAC Insured) 200 184
Texas, Veterans Housing Assistance, GO,
6.25%, 12/1/15 $ 170 $ 172
_____________________________________________________________________________
Total Texas (Cost $596) 615
VIRGINIA 7.4%
Chesapeake Bay Bridge and Tunnel
5.00%, 7/1/22 (MBIA Insured) 360 316
Fairfax County IDA
Inova Health Care Systems, 6.00%, 8/15/26 200 198
Virginia Ed. Loan Auth.
Student Loan Program
5.55%, 9/1/10 (Prerefunded 3/1/06!)* 100 98
Virginia HDA
6.50%, 5/1/13 * 100 102
6.60%, 7/1/20 * 250 251
_____________________________________________________________________________
Total Virginia (Cost $978) 965
WISCONSIN 1.4%
Wisconsin HEFA
National Regency Of New Berlin
8.00%, 8/15/25 200 188
_____________________________________________________________________________
Total Wisconsin (Cost $194) 188
Total Investments in Securities
99.8% of Net Assets (Cost $12,931) $ 13,085
Other Assets Less Liabilities 28
NET ASSETS $ 13,113
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ (188)
Net unrealized gain (loss) 154
Paid-in-capital applicable to 1,350,965 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 13,147
NET ASSETS $ 13,113
NET ASSET VALUE PER SHARE $ 9.71
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BAN Bond Anticipation Note
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
HEFA Health & Educational Facility Authority
HFA Health Facility Authority
HFFA Health Facility Financing Authority
IDA Industrial Development Authority
IDB Industrial Development Board
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.
T. Rowe Price Summit Municipal Funds
Unaudited
Statement of Operations
In thousands Money Inter- Income
Fund mediate Fund
Fund
6 Months 6 Months 6 Months
Ended Ended Ended
4/30/96 4/30/96 4/30/96
Investment Income
Interest income $ 1,457 $ 622 $ 377
Investment management and
administrative expenses 175 59 32
Net investment income 1,282 563 345
Realized and Unrealized Gain/Loss
Net realized gain (loss) on
Securities 4 53 125
Futures - (4) (5)
Net realized gain (loss) 4 49 120
Change in net unrealized gain or
loss on securities (11) (336) (336)
Net realized and unrealized
gain (loss) (7) (287) (216)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,275 $ 276 $ 129
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Funds
Unaudited
Statement of Changes in Net Assets
In thousands Money Market Fund Intermediate Fund Income Fund
6 Months Year 6 Months Year 6 Months Year
Ended Ended Ended Ended Ended Ended
4/30/96 10/31/95 4/30/96 10/31/95 4/30/96 10/31/95
Increase (Decrease)
in Net Assets
Operations
Net investment
income $ 1,282 $ 2,174 $ 563 $ 904 $ 345 $ 525
Net realized
gain (loss) 4 - 49 23 120 (17)
Change in net
unrealized
gain or loss (11) 16 (336) 1,119 (336) 757
Increase (decrease)
in net assets
from
operations 1,275 2,190 276 2,046 129 1,265
Distributions to
shareholders
Net investment
income (1,282) (2,174) (563) (904) (345) (525)
Capital share transactions*
Shares sold 69,119 125,403 6,517 12,683 4,402 7,350
Distributions
reinvested 1,161 1,932 350 578 159 230
Shares
redeemed (64,974) (91,985) (3,385) (5,567) (2,340) (3,665)
Increase
(decrease)
in net assets
from capital
share
transactions 5,306 35,350 3,482 7,694 2,221 3,915
Net Assets
Increase (decrease)
during period 5,299 35,366 3,195 8,836 2,005 4,655
Beginning of
period 77,958 42,592 22,145 13,309 11,108 6,453
End of period $ 83,257 $ 77,958 $ 25,340 $ 22,145 $ 13,113 $ 11,108
*Share information
Shares sold 69,119 125,403 634 1,303 442 784
Distributions
reinvested 1,161 1,932 34 58 16 24
Shares
redeemed (64,974) (91,985) (331) (571) (236) (390)
Increase
(decrease)
in shares
outstanding 5,306 35,350 337 790 222 418
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Funds
Unaudited April 30, 1996
Notes to Financial Statements
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 Market
Fund (the Money Market Fund), 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 and commenced operations on October
29, 1993.
Valuation
Debt securities are generally traded in the over-the-counter market. Except
for securities held by the Money Market Fund, investments in securities 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. Securities held
by the Money Market Fund 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.
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.
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 six months ended April 30, 1996, were as follows:
Intermediate Income
Fund Fund
Purchases $ 12,802,000 $ 6,240,000
Sales 9,618,000 4,223,000
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 Market 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. 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 April 30, 1996, the aggregate cost of investments for the Money Market,
Intermediate, and Income funds for federal income tax and financial reporting
purposes was $82,249,000, $25,015,000, and $12,931,000, respectively. For the
Money Market Fund, amortized cost is equivalent to value; and for the
Intermediate and Income funds, net unrealized gain (loss) on investments was
as follows:
Intermediate Income
Fund Fund
Appreciated investments $ 560,000 $ 308,000
Depreciated investments (70,000) (154,000)
Net unrealized gain (loss) $ 490,000 $ 154,000
Note 4 - Related Party Transactions
The investment management and administrative agreement between each fund and
T. Rowe Price Associates, Inc. provides for an all-inclusive annual fee, of
which $13,000 was payable at April 30, 1996 by the Money Market Fund. The fee,
computed daily and paid monthly, is equal to 0.45% of average daily net assets
for the Money Market 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.
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.
T. Rowe Price Investment Services, Inc., Distributor REPTSMUNI 4/30/96
Chart 1 - 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, 4/30/95 to
4/30/96.
Chart 2 - Quality Diversification - Pie chart showing 45% AA; 19% A; 20% BBB;
15% BB; 1% AAA.
Charts 3, 4, and 5 - Three line graphs showing growth of $10,000 in the three
funds and in their respective benchmarks from 10/29/93 through 4/30/96.
