Semiannual Report
Summit
Municipal
Funds
April 30, 1997
T. Rowe Price
Report Highlights
o Strong economic growth and rising interest rates led to
modest returns for tax-exempt securities.
o A tighter monetary policy in March resulted in a flattening
of the yield curve, as yields on shorter-term securities
rose more than those on long-term bonds.
o The municipal market was also affected by increased
issuance of general obligation bonds and a decrease of
similar size in the issuance of lower-quality revenue
bonds.
o All three Summit Municipal Funds turned in performances
exceeding their peer group averages for the six-month
period ended April 30, 1997.
o We believe interest rates in the near term will remain
within their ranges of the past year and expect long-term
municipal bonds to continue to generate moderate returns.
Fellow Shareholders
Your funds registered positive returns during the past six
months, despite rising interest rates from a strengthening
economy. Municipal returns generally exceeded those of their
taxable counterparts as yields rose less in the tax-exempt
sector of the fixed income market. All three funds outperformed
their respective peer groups during the 6- and 12-month periods.
MARKET ENVIRONMENT
Over the last six months, the economy developed considerable
momentum. Consumer sentiment reached unusually high levels, and
household spending on durable goods surged. Final demand pushed
GDP to an annualized rate of 3.8% in the fourth quarter and 5.6%
in the first quarter of 1997, roughly double the trend rate of
economic growth since the current expansion began in 1991.
Evidence of strong growth caused the Federal Reserve Board to
tighten monetary policy in late March by raising the target for
the federal funds rate from 5.25% to 5.50%.
The Treasury market reacted in textbook fashion with a
flattening of the yield curve. A flattening occurs when the
difference between long-term and short-term yields narrows. For
instance, at the beginning of the period investors earned an
additional 60 basis points by extending maturities from five to
30 years. This spread declined to 30 basis points by the end of
April (100 basis points equal one percent). As shorter-maturity
bond yields are pushed up by the Fed, long-term bond yields rise
less because investors believe the Fed will ultimately slow the
economy enough to keep inflation in check and cause rates to
fall.
Chart 1 - Municipal Bond and Note Yields chart.
The municipal yield curve also flattened, as can be seen in the chart on page
1. The one-year note yield rose 25 basis points from 3.7 to 3.95%, while the
30-year general obligation bond yield moved up only 10 basis points. The
worst-performing part of the municipal market was the five-year sector, where
the yield increased 40 basis points.
Standard & Poor's upgraded credit ratings on more than three times as many
issues as it downgraded.
In addition to the Fed tightening, the municipal curve was influenced by the
type and structure of new issues that came to market. While overall issuance
was down moderately in the first four months of the year, the total number
included a 14% increase in general obligation bonds and a 15% reduction in
revenue bonds. New issues of general obligation bonds are typically
structured with level debt, meaning the same number of bonds mature each
year. Revenue bonds typically have ascending amounts maturing each year, with
the majority of the bonds issued in 20- and 30-year "term" maturities. The
heavy issuance of general obligations put supply pressure on the five-year
sector of the market, while the lack of revenue bond issuance caused the long
end of the municipal market to outperform Treasury bonds.
Supply also influenced credit spreads during the last six months. The lack
of higher-yielding revenue bonds caused yield differentials between lower-
and higher-quality debt to narrow. Spreads have also been influenced by the
length of the current economic expansion. Last year, Standard & Poor's
upgraded credit ratings on more than three times as many issues as it
downgraded. During the first quarter of the year, we saw some weaker credits
in the airline industry strengthen, and New York City, a major municipal bond
issuer, announced a revenue surplus for the current fiscal year - its first
in several years.
Summit Municipal Money Market Fund
The overall investment strategy discussed below helped your fund outperform
its peer group average during both the 6- and 12-month periods ended April
30.
Performance Comparison
Periods Ended 4/30/97 6 Months 12 Months
________________________________________________________
Municipal Money Market Fund 1.59% 3.22%
Lipper Tax-Exempt Money
Market Funds Average 1.44 2.93
Despite a vigilant Fed with a bias toward curbing future inflation, yields
in the short-term tax-exempt market rose in a calm and measured fashion in
recent months. Strong cash flows into money funds, coupled with modest new
issue supply, supported the market and helped temper volatility.
On April 30, 1997, yields on 30-day to one-year securities were 20 to 30
basis points higher than at the end of the fiscal year in October. However,
the average yields over the period were only slightly changed from the prior
six months. Similarly, the yield spread between the shortest and longest
maturities in this market remained relatively constant over the past 12
months.
Underscoring the relative stability of the tax-exempt money market sector was
the yield relationship between short-term tax-exempt and taxable securities,
which averaged between 63% and 67% over the past six months compared to 64%
and 69% during the previous six-month period. The lower percentage
relationship illustrates that tax-exempt securities outperformed their
taxable counterparts.
Your fund ended the period with a weighted average maturity of 48 days, close
to the 51 days of a year ago but down significantly from 78 days at fiscal
year-end. Our maturity posture was seven days longer than that of our peer
group average compared with 24 days longer at the end of last October. This
shift in strategy was a direct result of our outlook for Federal Reserve
policy. During the latter part of 1996, we felt reasonably confident that the
Federal Reserve was in a wait-and-see mode and took advantage of the
positively shaped yield curve by extending maturities to pick up additional
return. Six months later, following a 25-basis-point tightening in March,
tighter labor markets, explosive first quarter growth, and ample hints from
Chairman Greenspan about possible tightening, we are less willing to deviate
far from our peers.
Aside from maturity strategy, the fund continued to maintain a high level of
holdings subject to the alternative minimum tax, which generally provide an
additional 10 to 15 basis points more in yield; our current exposure is 63%
of net assets, up from 53% a year ago. Finally, we focused on fine-tuning our
variable rate note positions more frequently, as their yields vacillated in
a very broad range over the past year. Our exposure to variable rate notes
wavered between 42% and 64% of the portfolio, increasing when yields were
high and decreasing when strong demand drove yields lower.
Summit Municipal Intermediate Fund
The combination of strategies detailed below, plus your fund's relatively low
expense ratio, enabled us to surpass the average returns of our peer group
during the latest 6- and 12-month periods.
Performance Comparison
Periods Ended 4/30/97 6 Months 12 Months
________________________________________________________
Municipal Intermediate Fund 1.91% 5.93%
Lipper Intermediate Municipal
Debt Funds Average 1.55 4.97
During the last six months, we reduced your fund's exposure to changes in
interest rates. By shortening fund duration (a measure of a bond or bond
fund's sensitivity to changes in rates) from a slightly long 5.7 years to a
defensive 4.9 years, we positioned the fund so that its share price will
change less as rates move up or down. We took this step to reduce market risk
at a time when yields had moved to relatively low levels and economic growth
was rapidly expanding.
In January we reduced our holdings of 5- to 10-year maturities and held on
to bonds maturing in 15 years. This type of strategy is advantageous when the
yield curve is flattening, since short-term rates tend to rise more than
long-term rates. Recently, we began to reverse this structure, selling
15-year bonds and increasing our holdings of five-year securities because of
their relative attractiveness.
The most significant changes in credit allocations included an increase in
our holdings of general obligation bonds, where increased supply led to
higher yields in this sector. We also raised the fund's exposure slightly to
hospital, lease, and life care revenue bonds. The net result of our purchases
left the portfolio's overall credit quality unchanged.
Summit Municipal Income Fund
Our investment strategies described in detail below, combined with the
benefits of our fundamental research and relatively low expense ratio,
produced superior results relative to our peer group for both the 6- and
12-month periods ended April 30.
Performance Comparison
Periods Ended 4/30/97 6 Months 12 Months
_______________________________________________________
Municipal Income Fund 2.68% 8.39%
Lipper General Municipal
Debt Funds Average 1.68 6.13
Over the year, our primary investment focus has been on identifying sectors
and individual securities with attractive credit outlooks and reasonable
valuations. We maintained the average quality of the fund at an A rating and
held approximately 30% of fund assets in the medium- (BBB) and lower-quality
sectors of the market. This credit strategy enabled the fund to benefit from
narrowing credit spreads, as the prices of medium- and lower-quality bonds
performed better than their higher-quality counterparts. Also, the overall
impact of using lower-rated bonds in combination with high-quality securities
was an improvement in the risk/return relationship of the entire pool of
assets.
Additionally, we increased the fund's holdings of higher-coupon housing bonds
late last year in an effort to improve yield and reduce price fluctuation.
These bonds don't move up or down in value as much as the general bond market
when interest rates fluctuate, and they were particularly beneficial to fund
performance when interest rates rose from December 1996 through March 1997.
In a similar fashion, over the last six months we generally kept the weighted
average maturity and duration of the fund in a range designed to perform well
in a stable to modestly higher interest rate environment. Only recently did
we move to longer maturities as interest rates moved up again.
Chart 2 - A pie chart showing diversification of assets by credit quality as
of 4/30/97.
OUTLOOK
Tight credit spreads have not caused us to liquidate our positions in
lower-rated securities. Rather, we are maintaining our holdings of seasoned
issues that we believe have stable to improving credit trends and are being
extremely selective on new project financings.
In general, we expect issuance to pick up in coming months due to seasonal
borrowing patterns, the relatively strong financial condition of municipal
issuers, and reasonable borrowing costs. New issuance of revenue bonds with
long maturities should increase relative to the above-average issuance of
general obligation securities with shorter maturities that we saw during the
first four months of 1997.
The economy is now in its sixth year of expansion, and while it has exhibited
few signs of inflationary pressure, surging growth prompted the Federal
Reserve to initiate a preemptive tightening in monetary policy. We cannot
rule out further tightening at this time, but the combination of a balanced
budget agreement, continuing low inflation, and preliminary signs of slowing
growth lead us to believe that rates in the near term should remain within
the range established during the past year. As a result, we would expect each
fund's return generally to reflect its average coupon.
As always, we appreciate your confidence in T. Rowe Price.
Respectfully submitted,
William T. Reynolds
Director, Fixed Income Division
Mary J. Miller
Director, Municipal Bond Department
May 20, 1997
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Key statistics
10/31/96 4/30/97
Summit Municipal Money Market Fund
__________________________________________________________
Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months 0.016 0.016
For 12 months 0.032 0.032
Dividend Yield (7-Day
Compound) * 3.29% 3.89%
Weighted Average Maturity
(days) 78 48
Weighted Average Quality ** First Tier First Tier
Summit Municipal Intermediate Fund
____________________________________________________________
Price Per Share $ 10.22 $ 10.17
Dividends Per Share
For 6 months 0.24 0.24
For 12 months 0.48 0.48
Dividend Yield *
For 6 months 4.82% 4.88%
For 12 months 4.87 4.93
Weighted Average Maturity
(years) 9.1 7.9
Weighted Average Effective
Duration (years) 5.7 4.9
Weighted Average Quality *** AA- AA-
T. Rowe Price Summit Municipal Funds
Key statistics
10/31/96 4/30/97
Summit Municipal Income Fund
_________________________________________________________
Price Per Share $ 9.97 $ 9.96
Dividends Per Share
For 6 months 0.27 0.28
For 12 months 0.54 0.55
Dividend Yield *
For 6 months 5.60% 5.62%
For 12 months 5.63 5.69
Weighted Average Maturity
(years) 20.69 19.37
Weighted Average Effective
Duration (years) 8.09 8.18
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.
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
10/31/96 4/30/97
Summit Municipal Money Market Fund
__________________________________________________________
Industrial and Pollution
Control Revenue 16% 20%
General Obligation - State 9 15
Air and Sea Transportation
Revenue 18 14
Housing Finance Revenue 8 9
Escrowed - 8
Educational Revenue 7 7
General Obligation - Local 10 6
Electric Revenue 12 6
Prerefunded Bonds 4 6
Other Revenue 4 3
Lease Revenue 3 3
All Other 9 4
Other Assets Less Liabilities - -1
_________________________________________________________
Total 100% 100%
Summit Municipal Intermediate Fund
_________________________________________________________
General Obligation - State 8% 12%
Air and Sea Transportation Revenue14 10
Lease Revenue 6 9
Solid Waste Revenue 12 9
Industrial and Pollution
Control Revenue 1 8
Water and Sewer Revenue 5 8
Nuclear Revenue 12 7
Hospital Revenue 7 7
Prerefunded Bonds 5 6
Housing Finance Revenue 10 5
Dedicated Tax Revenue 5 4
General Obligation - Local 3 4
Electric Revenue 1 3
Educational Revenue 4 2
Life Care and Nursing Home
Revenue 1 2
All Other 6 3
Other Assets Less
Liabilities - 1
_________________________________________________________
Total 100% 100%
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
10/31/96 4/30/97
Summit Municipal Income Fund
________________________________________________________
Hospital Revenue 23% 21%
Housing Finance Revenue 18 15
Industrial and Pollution
Control Revenue 10 10
Life Care and Nursing
Home Revenue 5 6
General Obligation - Local 7 6
Nuclear Revenue 7 6
Lease Revenue 2 6
Electric Revenue 2 5
Solid Waste Revenue 3 5
Air and Sea Transportation
Revenue 7 5
Water and Sewer Revenue 6 5
Dedicated Tax Revenue 2 3
General Obligation - State 2 3
Educational Revenue 4 3
Ground Transportation Revenue 4 2
Other Revenue 2 2
Other Assets Less Liabilities -4 -3
_________________________________________________________
Total 100% 100%
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 - SumMuni Money Market Fund
Chart 4 - SumMuni Intermediate Fund
Chart 5 - SumMuni Income Fund
Average Annual Compound Total Return
This table shows how each fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Since Inception
Periods Ended
4/30/97 1 Year 3 Years Inception Date
_________________________________________________________
Summit Municipal
Money Market
Fund 3.22% 3.25% 3.08% 10/29/93
Summit Municipal
Intermediate
Fund 5.93 6.47 5.31 10/29/93
Summit Municipal
Income Fund 8.39 7.70 5.48 10/29/93
Investment return represents past performance and will vary. Shares of the
bond funds may be worth more or less at redemption than at original purchase.
The Money Market Fund's $1.00 share price is not guaranteed, nor is the fund
insured by the U.S. government.
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 to
4/30/97 10/31/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment
income 0.016 0.032 0.035 0.023
Distributions
Net investment
income (0.016) (0.032) (0.035) (0.023)
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
Ratios/Supplemental Data
Total return 1.59% 3.28% 3.53% 2.35%
Ratio of expenses
to average
net assets 0.45%! 0.45% 0.45% 0.45%!
Ratio of net
investment
income to
average net
assets 3.19%! 3.23% 3.48% 2.56%!
Net assets, end
of period(in
thousands) $ 111,744 $ 96,264 $ 77,958 $ 42,592
! Annualized.
The accompanying notes are an integral part of these financial statements.
Summit Municipal Intermediate Fund
Unaudited
For a share outstanding throughout each period
Financial Highlights
6 Months Year 10/29/93
Ended Ended to
4/30/97 10/31/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 10.22 $ 10.17 $ 9.59 $ 10.00
Investment activities
Net investment
income 0.24 0.48 0.48 0.43
Net realized and
unrealized
gain (loss) (0.05) 0.05 0.58 (0.41)
Total from
investment
activities 0.19 0.53 1.06 0.02
Distributions
Net investment
income (0.24) (0.48) (0.48) (0.43)
NET ASSET VALUE
End of period $ 10.17 $ 10.22 $ 10.17 $ 9.59
Ratios/Supplemental Data
Total return 1.91% 5.39% 11.39% 0.18%
Ratio of expenses
to average net
assets 0.50%! 0.50% 0.50% 0.50%!
Ratio of net
investment
income to average
net assets 4.81%! 4.77% 4.93% 4.50%!
Portfolio turnover
rate 50.7%! 72.9% 86.1% 157.5%!
Net assets, end of
period(in
thousands) $ 37,012 $ 29,175 $ 22,145 $ 13,309
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Income Fund
Unaudited
For a share outstanding throughout each period
Financial Highlights
6 Months Year 10/29/93
Ended Ended to
4/30/97 10/31/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 9.97 $ 9.84 $ 9.08 $ 10.00
Investment activities
Net investment
income 0.28 0.54 0.54 0.50
Net realized and
unrealized
gain (loss) (0.01) 0.13 0.76 (0.92)
Total from
investment
activities 0.27 0.67 1.30 (0.42)
Distributions
Net investment
income (0.28) (0.54) (0.54) (0.50)
NET ASSET VALUE
End of period $ 9.96 $ 9.97 $ 9.84 $ 9.08
Ratios/Supplemental Data
Total return 2.68% 7.04% 14.68% (4.38)%
Ratio of expenses
to average
net assets 0.50%! 0.50% 0.50% 0.50%!
Ratio of net
investment
income to average
net assets 5.55%! 5.51% 5.68% 5.23%!
Portfolio turnover
rate 42.3%! 56.7% 73.7% 161.1%!
Net assets, end
of period(in
thousands) $ 20,062 $ 15,909 $ 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, 1997
Statement of Net Assets
Par Value
In thousands
ALASKA 3.1%
Alaska Industrial Dev.
and Export Auth.
Healy Clean Coal
VRDN (Currently 4.55%) * $ 3,500 $ 3,500
Total Alaska (Cost $3,500) 3,500
ARIZONA 0.5%
Arizona Transportation
Board
Maricopa County
Regional Area Road Fund
6.80%, 7/1/97
(MBIA Insured) 500 503
Salt River, Agricultural
Improvement and Power Dist.
7.875%, 1/1/28
(Prerefunded 1/1/98!) 70 73
Total Arizona (Cost $576) 576
CALIFORNIA 7.9%
California, GO, RAN, 4.50%,
6/30/97 3,700 3,704
Oakland
COP, VRDN (Currently 4.15%) 3,100 3,100
GO, TRAN, 4.75%, 6/30/97 1,000 1,002
San Luis Obispo County, GO,
TRAN, 4.50%, 7/8/97 1,000 1,001
Total California (Cost $8,807) 8,807
COLORADO 0.7%
Colorado, GO, TRAN, 4.50%, 6/27/97 750 751
Total Colorado (Cost $751) 751
CONNECTICUT 0.1%
Connecticut, Transportation
Infrastructure
7.20%, 2/15/04
Prerefunded 2/15/98!) 150 157
Total Connecticut (Cost $157) 157
DELAWARE 0.1%
Delaware, Capital Appreciation,
GO, 6.80%, 5/1/97 $ 150 $ 150
Total Delaware (Cost $150) 150
DISTRICT OF COLUMBIA 0.2%
Metropolitan Washington D.C.
Airport Auth.
5.40%, 10/1/97
(MBIA Insured) * 200 201
Total District of Columbia
(Cost $201) 201
FLORIDA 2.1%
Broward County
Environmentally Sensitive
Lands
6.90%, 7/1/09
(Prerefunded 7/1/97!) 50 51
Water and Sewer, 7.50%, 10/1/18
(AMBAC Insured)
(Prerefunded 10/1/97!) 200 207
Dade County, Water and Sewer
4.50%, 10/1/97 (FGIC Insured) 500 502
Florida Board of Ed.
Capital Outlay, Public Ed.
5.50%, 6/1/97 (Escrowed
to Maturity) 25 25
6.00%, 5/1/97 (Escrowed
to Maturity) 100 100
7.00%, 6/1/97 (Escrowed
to Maturity) 165 166
GO, 5.125%, 6/1/97 200 200
Greater Orlando Aviation Auth.,
Orlando Airport Fac.
7.30%, 10/1/97 (AMBAC
Insured) * 175 177
Jacksonville Electric Auth.
3.90%, 10/1/97 400 400
St. John River Power Park
4.00%, 10/1/97 250 251
9.60%, 10/1/97 220 225
Orlando Utilities Commission
Water and Electric
9.30%, 10/1/97
(Escrowed to Maturity) 25 26
Total Florida (Cost $2,330) 2,330
GEORGIA 5.1%
Cobb and Marietta Counties,
Water
9.20%, 5/1/97 (Escrowed
to Maturity) $ 50 $ 50
Cobb County, GO, 4.25%, 1/1/98 475 477
Dalton Dev. Auth., Hamilton
Health Care
3.65%, 8/15/97 (MBIA Insured) 375 375
Georgia, GO, 6.75%, 9/1/97 300 303
Georgia Municipal Electric Auth.,
Power
7.90%, 1/1/01 (Prerefunded
1/1/98!) 50 52
Savannah Economic Dev. Auth.,
Home Depot
VRDN (Currently 4.70%) * 4,400 4,400
Total Georgia (Cost $5,657) 5,657
HAWAII 0.1%
Honolulu City and County
6.20%, 12/1/97
(Escrowed to Maturity) 100 101
Total Hawaii (Cost $101) 101
IDAHO 0.9%
Idaho, GO, TAN, 4.50%, 6/30/97 1,000 1,001
Total Idaho (Cost $1,001) 1,001
ILLINOIS 5.2%
Illinois, GO, 4.20%, 6/1/97 500 500
Illinois Student Assistance
Commission
Student Loan, VRDN
(Currently 4.60%) 1,000 1,000
Lake County Water and Sewer,
W. W. Grainger, Inc.
VRDN (Currently 4.80%) * 1,500 1,500
Southwestern Illinois Dev. Auth.
Environmental Improvement,
Shell Oil
VRDN (Currently 4.10%)* 1,100 1,100
Solid Waste Disposal, Shell
Oil, Wood River
VRDN (Currently 4.10%) * 1,700 1,700
Total Illinois (Cost $5,800) 5,800
INDIANA 4.5%
Petersburg, Solid Waste Disposal
Indianapolis Power and Light
VRDN (Currently 4.70%) * $ 5,000 $ 5,000
Total Indiana (Cost $5,000) 5,000
KANSAS 2.0%
Butler County, Solid Waste
Disposal Fac., Texaco
VRDN (Currently 4.15%) * 900 900
Wyandotte County Capital
Improvement Corp.
Criminal Justice Complex, COP
7.875%, 9/1/07
(Prerefunded 9/1/97!) 1,300 1,344
Total Kansas (Cost $2,244) 2,244
KENTUCKY 0.8%
Carroll County, Solid Waste
Disposal Fac.
Kentucky Utilities
VRDN (Currently 4.15%) * 200 200
Jefferson County, PCR,
Louisville Gas and Electric
TECP, 3.50%, 5/23/97 350 350
Kentucky Turnpike Auth.,
Resource Recovery
13.125%, 7/1/09
(Prerefunded 7/1/97!) 405 411
Total Kentucky (Cost $961) 961
LOUISIANA 2.6%
Lake Charles Harbor and Terminal
Dist., PCR, Conoco
VRDN (Currently 4.15%) * 400 400
Louisiana Recovery Dist., Sales Tax
3.90%, 7/1/97 (FGIC Insured)
(Escrowed to Maturity) 150 150
New Orleans Int'l. Airport
8.875%, 8/1/17 (FGIC Insured)
(Prerefunded 8/1/97!) * 500 516
Plaquemines Parish, The British
Petroleum Co.
VRDN (Currently 4.15%) * $ 1,500 $ 1,500
Saint Charles Parish, PCR,
Shell Oil
VRDN (Currently 4.10%) * 300 300
Total Louisiana (Cost $2,866) 2,866
MARYLAND 1.8%
Anne Arundel County, GO,
6.40%, 6/1/97 100 100
Carroll County, County
Commissioners
Consolidated Public
Improvement, GO
5.90%, 11/1/97 50 51
Howard County, GO, 5.30%, 8/15/97 60 60
Maryland, GO
3.50%, 8/1/97 300 300
5.80%, 7/15/97 100 100
6.50%, 10/15/97 10 10
Maryland DOT
4.50%, 7/15/97 50 50
6.40%, 7/15/97 350 352
7.00%, 7/1/01
(Prerefunded 7/1/97!) 50 51
Maryland HHEFA
Howard County General Hosp.
7.00%, 7/1/17 (Prerefunded
7/1/97!) 35 36
Memorial Hosp. of Cumberland
9.25%, 7/1/17 (Prerefunded
7/1/97!) 50 51
Montgomery County, GO
7.20%, 7/1/05 (Prerefunded
7/1/97!) 15 15
Prince Georges County, GO
6.90%, 9/1/99 (Prerefunded
9/1/97!) 250 258
Washington Suburban Sanitary
Dist., GO
5.50%, 6/1/97 450 451
7.50%, 12/1/09
(Prerefunded 12/1/97!) 100 104
Total Maryland (Cost $1,989) 1,989
MASSACHUSETTS 0.1%
Boston, GO, 6.75%, 2/1/98
(AMBAC Insured) $ 100 $ 102
Total Massachusetts (Cost $102) 102
MICHIGAN 5.0%
Detroit School Dist., Wayne
County School Aid
GO, RAN, 4.50%, 5/1/97 2,000 2,000
Michigan, GO, TAN, 4.50%, 9/30/97 1,000 1,004
Univ. of Michigan, Medical
Service Plan
VRDN (Currently 4.00%) 100 100
Wayne/Charter County Airport
Detroit Metropolitan Airport
VRDN (Currently 4.50%) * 2,500 2,500
Total Michigan (Cost $5,604) 5,604
MINNESOTA 0.2%
Minnesota, GO
6.50%, 8/1/97 40 40
6.60%, 8/1/97 140 141
Total Minnesota (Cost $181) 181
MISSISSIPPI 1.4%
Jackson County Industrial Sewage
Fac., Chevron
VRDN (Currently 4.10%) * 1,000 1,000
Mississippi, GO, 4.50%, 12/1/97 590 593
Total Mississippi (Cost $1,593) 1,593
MISSOURI 0.1%
Missouri, Fourth State Building,
GO, 6.00%, 8/1/97 150 151
Total Missouri (Cost $151) 151
MONTANA 0.1%
Montana Highway Dept.
7.20%, 7/1/05 (Prerefunded
7/1/97!) 100 103
Total Montana (Cost $103) 103
NEW HAMPSHIRE 0.7%
New Hampshire HHEFA, Dartmouth
College
3.75%, 6/1/97 $ 765 $ 765
Total New Hampshire (Cost $765) 765
NEW JERSEY 0.6%
New Jersey Health Care Fac.
Fin. Auth.
Atlantic City Medical
Center
7.60%, 8/1/98
(Prerefunded 2/1/98!) 160 167
St. Peter's Medical Center
6.30%, 7/1/18 (Prerefunded
7/1/97!) 70 70
New Jersey Transportation Trust
Fund Auth.
3.70%, 6/15/97
(Escrowed to Maturity) 300 300
5.00%, 12/15/97
(Escrowed to Maturity) 100 101
Total New Jersey (Cost $638) 638
NEW MEXICO 4.7%
Albuquerque, Airport, VRDN
(Currently 4.50%) * 5,300 5,300
Total New Mexico (Cost $5,300) 5,300
NORTH CAROLINA 0.9%
Charlotte, Water and Sewer
6.75%, 6/1/97 (Escrowed
to Maturity) 100 100
North Carolina, GO, 6.25%,
5/1/97 100 100
North Carolina Medical Care
Commission
Carolina Medicorp.
7.875%, 5/1/15
(Prerefunded 5/1/97!) 115 118
North Carolina Municipal
Power Agency
Catawba Electric
7.875%, 1/1/19 (Prerefunded
1/1/98!) 100 105
7.625%, 1/1/14 (AMBAC Insured)
(Prerefunded 1/1/98!) 120 125
Winston Salem, GO, 6.50%, 6/1/97 $ 500 $ 501
Total North Carolina (Cost $1,049) 1,049
OHIO 3.3%
Cleveland State Univ., 3.90%,
6/1/97
(AMBAC Insured) 165 165
Cleveland Water Works, First
Mortgage
4.40%, 1/1/98 (MBIA Insured) 500 502
Ohio Housing Fin. Agency, 4.00%,
8/13/97 * 3,000 3,000
Total Ohio (Cost $3,667) 3,667
OKLAHOMA 0.2%
Grand River Dam Auth.
6.60%, 6/1/99 (Prerefunded
6/1/97!) 100 102
7.00%, 6/1/10 (Prerefunded
6/1/97!) 120 123
Total Oklahoma (Cost $225) 225
PENNSYLVANIA 5.4%
Pennsylvania, GO, TAN, 4.50%,
6/30/97 1,000 1,001
Pennsylvania Higher Ed. Fac.
Auth.
Student Loan
VRDN (Currently 4.60%) * 5,000 5,000
Total Pennsylvania (Cost $6,001) 6,001
SOUTH DAKOTA 2.8%
South Dakota HDA
Homeownership Mortgage
3.75%, 11/13/97 1,000 1,000
4.25%, 5/1/97 * 1,750 1,750
4.90%, 5/1/97 400 400
Total South Dakota (Cost $3,150) 3,150
TENNESSEE 2.7%
Tennessee HDA
Homeownership
3.75%, 2/19/98 * $ 1,000 $ 1,000
3.85%, 5/29/97 * 2,000 2,000
Total Tennessee (Cost $3,000) 3,000
TEXAS 14.5%
Corpus Christi, 7.60%, 11/1/99
(Prerefunded 11/1/97!) 195 199
Gulf Coast Waste Disposal Auth.
Environmental Fac., Amoco Oil
VRDN (Currently 4.10%) 5,000 5,000
Harris County, Toll Road
8.70%, 8/15/17
(Prerefunded 8/15/97!) 410 428
Houston, Water and Sewer
8.00%, 12/1/07
(Prerefunded 12/1/97!) 100 104
Houston Airport, TECP
3.45 - 3.625%, 5/22 - 6/9/97 * 4,000 4,000
Matagorda County, Houston Lighting
and Power
VRDN (Currently 3.90%)
(AMBAC Insured) 1,300 1,300
Texas, GO
6.00%, 10/1/97 100 101
TRAN, 4.75%, 8/29/97 4,850 4,865
Texas PFA, GO, 5.00%, 10/1/97 100 100
Univ. of Texas, Permanent Univ.
Fund, 6.70%, 7/1/97 100 101
Total Texas (Cost $16,198) 16,198
UTAH 5.7%
Intermountain Power Agency
8.625%, 7/1/21 (Prerefunded
7/1/97!) 465 478
Salt Lake County
Kennecott / RTZ Corp., Solid
Waste Disposal
VRDN (Currently 4.65%) * 4,900 4,900
Utah Board of Regents, Student Loan
VRDN (Currently 4.60%)
(AMBAC Insured) * $ 1,000 $ 1,000
Total Utah (Cost $6,378) 6,378
VIRGINIA 12.8%
Capital Region Airport Commission
Richmond Int'l. Airport
VRDN (Currently 4.60%)
(AMBAC Insured) * 3,000 3,000
Chesterfield County, GO, 5.05%,
1/1/98 640 646
Hampton IDA, Sentara Health,
5.00%, 11/1/97 400 403
Harrisonburg Redev. and Housing Auth.
Mallside Forest Apartments
4.625%, 7/17/97
(Escrowed to Maturity) * 5,000 5,000
Norfolk, GO, 6.55%, 6/1/98
(Prerefunded 6/1/97!) 100 102
Richmond Public Utilities
8.00%, 1/15/18
(Prerefunded 1/15/98!) 75 78
Richmond Redev. and Housing Auth., Richmeade
4.625%, 5/29/97
(Escrowed to Maturity) * 4,550 4,550
Virginia HDA
5.60%, 7/1/97 * 250 251
Commonwealth Mortgage, 3.80%, 7/1/97 250 250
Total Virginia (Cost $14,280) 14,280
WASHINGTON 1.9%
Seattle, Sewer, 7.375%, 1/1/30
(AMBAC Insured)
(Prerefunded 1/1/98!) 315 329
Washington, GO
3.90%, 8/1/97 350 350
4.00%, 7/1/97 90 90
5.50%, 7/1/97 225 226
8.70%, 10/1/00
(Prerefunded 10/1/97!) 335 342
Motor Vehicle Fuel Tax
3.90%, 9/1/97 $ 250 $ 250
8.40%, 9/1/97 550 558
Total Washington (Cost $2,145) 2,145
WISCONSIN 0.7%
New Berlin, GO, 5.40%, 12/1/97 50 50
Wisconsin, GO
4.55%, 5/1/97 100 100
5.00%, 5/1/97 125 125
5.75%, 5/1/97 500 500
Total Wisconsin (Cost $775) 775
Total Investments in Securities
101.5% of Net Assets (Cost
$113,396) $113,396
Other Assets Less Liabilities (1,652)
NET ASSETS $111,744
_________
Net Assets Consist of:
Paid-in-capital applicable to
111,743,157 shares of
$0.0001 par value capital
stock outstanding;
1,000,000,000 shares of
the Corporation authorized 111,744
NET ASSETS $111,744
_________
NET ASSET VALUE PER SHARE $ 1.00
_________
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
COP Certificates of Participation
DOT Department of Transportation
FGIC Financial Guaranty Insurance Company
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
PFA Public Facility Authority
RAN Revenue Anticipation Note
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
T. Rowe Price Summit Municipal Intermediate Fund
Unaudited
April 30, 1997
Statement of Net Assets
Par Value
In thousands
ALABAMA 1.5%
Birmingham Airport Auth.,
7.35%, 7/1/04 (AMBAC
Insured) * $ 500 $ 540
Total Alabama (Cost $526) 540
CALIFORNIA 4.2%
California Public Works Board,
Dept. of Corrections
6.00%, 11/1/05
(MBIA Insured) 250 267
Foothill / Eastern Transportation
Corridor Agency
Toll Road, Zero Coupon,
1/1/05 350 228
Pomona Unified School Dist., GO
6.15%, 8/1/15 (MBIA Insured) 700 745
Upland, San Antonio Community
Hosp., COP, 5.75%, 1/1/07 300 304
Total California (Cost $1,498) 1,544
COLORADO 1.4%
Denver City and County Airport
6.75%, 11/15/22
(MBIA Insured) * 500 534
Total Colorado (Cost $529) 534
DISTRICT OF COLUMBIA 1.4%
Washington D.C. Metropolitan
Airport Auth.
6.625%, 10/1/12
(MBIA Insured) * 500 533
Total District of Columbia
(Cost $543) 533
FLORIDA 6.6%
Dade County, Resource Recovery Fac.
6.00%, 10/1/06 (AMBAC
Insured) * 500 527
Dade County School Board, COP
5.75%, 5/1/08 (MBIA Insured) 365 375
Florida Division of Bond Fin.
Dept. of Environmental
Preservation
6.00%, 7/1/06 (MBIA Insured) 500 533
Indian Trace Community Dev. Dist.
Water Management
5.50%, 5/1/07 (MBIA
Insured) $ 500 $ 513
Leesburg, Leesburg Regional
Medical Center, 5.20%, 7/1/02 500 500
Total Florida (Cost $2,406) 2,448
GEORGIA 1.1%
Coweta County Residential Care
Fac. for the Elderly Auth.
Wesley Woods of Newnan-Peachtree
City
7.625%, 10/1/06 400 403
Total Georgia (Cost $400) 403
HAWAII 2.3%
Hawaii
Airport
7.50%, 7/1/20 (FGIC Insured) * 300 326
6.70%, 7/1/05 (MBIA Insured) * 500 541
Total Hawaii (Cost $845) 867
ILLINOIS 4.0%
Chicago, GO, 5.75%, 1/1/05
(AMBAC Insured) 660 685
Chicago-O'Hare Int'l. Airport
Int'l. Terminal
7.50%, 1/1/05 (MBIA Insured)
(Prerefunded 1/1/00!) * 130 141
7.50%, 1/1/05 (MBIA Insured) * 280 302
Illinois HFA
Glen Oaks Medical Center
9.50%, 11/15/15 75 84
Hinsdale Hosp., 7.00%, 11/15/19 260 272
Total Illinois (Cost $1,472) 1,484
KANSAS 0.3%
Butler County, Solid Waste Disposal
Fac., Texaco
VRDN (Currently 4.15%) * 100 100
Total Kansas (Cost $100) 100
KENTUCKY 3.8%
Carroll County, Solid Waste Disposal Fac.
Kentucky Utilities
VRDN (Currently 4.15%) * $ 1,000 $ 1,000
Kentucky Property and Buildings
Commission,
6.40%, 11/1/01 390 415
Total Kentucky (Cost $1,416) 1,415
LOUISIANA 10.1%
Louisiana, GO, 6.50%, 4/15/06 (FGIC
Insured) 1,325 1,452
Plaquemines Parish, The British
Petroleum Co.
VRDN (Currently 4.15%) * 400 400
Saint Charles Parish, PCR, Shell Oil
VRDN (Currently 4.10%) * 1,900 1,900
Total Louisiana (Cost $3,754) 3,752
MARYLAND 9.3%
Maryland Energy Fin. Administration
Wheelabrator Water Technologies
5.85%, 12/1/05 * 1,000 1,018
Maryland HHEFA
Good Samaritan Hosp., 5.50%,
7/1/05 1,000 1,014
Univ. of Maryland Medical System
6.50%, 7/1/21 (FGIC Insured)
(Prerefunded 7/1/01!) 750 800
Northeast Maryland Waste Disposal
Auth.
Southwest Resource Recovery Fac.
7.10%, 1/1/03 (MBIA Insured) 550 603
Total Maryland (Cost $3,395) 3,435
MASSACHUSETTS 1.1%
Massachusetts, GO, 6.30%, 11/1/05
(FGIC Insured) 250 271
Massachusetts Port Auth., 7.375%,
7/1/10 (FGIC Insured) * 135 146
Total Massachusetts (Cost $394) 417
MICHIGAN 2.9%
Greater Detroit Resource
Recovery Auth.
6.25%, 12/13/05 (AMBAC
Insured) $ 1,000 $ 1,076
Total Michigan (Cost $1,069) 1,076
MISSISSIPPI 0.9%
Claiborne County, PCR, Systems
Energy Resources
9.875%, 12/1/14 300 328
Total Mississippi (Cost $326) 328
NEW HAMPSHIRE 1.4%
New Hampshire Housing Fin. Auth.
Single Family
5.90%, 1/1/01 * 115 118
5.90%, 7/1/01 * 115 118
6.00%, 7/1/02 * 125 129
6.10%, 1/1/03 * 130 134
Total New Hampshire (Cost $485) 499
NEW YORK 12.1%
Dormitory Auth. of the State of New York
City Univ., 6.875%, 7/1/14
(MBIA Insured) 350 385
Mental Health Services Fac.,
6.00%, 2/15/06 1,500 1,544
Nyack Hosp., 6.00%, 7/1/06 250 250
State Univ. Ed. Fac., 7.40%,
5/15/01 150 161
Nassau County IDA, Hofstra Univ.,
6.70%, 1/1/09 250 275
New York State Environmental Fac.
Corp., PCR
Water Revolving Fund, 6.875%,
6/15/10 500 539
New York State Housing Fin. Agency
Service Contract Obligation,
5.85%, 9/15/09 300 299
New York State Mortgage Agency
Homeownership Mortgage, 5.80%,
10/1/06 * 500 511
Port Auth. of New York and New
Jersey
6.50%, 10/1/01 * 500 515
Total New York (Cost $4,381) 4,479
OHIO 0.7%
Fairfield Economic Dev. Auth.,
Beverly Enterprises
8.50%, 1/1/03 $ 250 $ 270
Total Ohio (Cost $268) 270
PENNSYLVANIA 5.3%
Pennsylvania, GO
5.125%, 9/15/03
(AMBAC Insured) 1,000 1,009
5.375%, 11/15/03
(FGIC Insured) 500 511
Pennsylvania Intergovernmental
Cooperative Auth.
Special Tax, 7.00%, 6/15/04
(FGIC Insured)
(Escrowed to Maturity) 400 448
Total Pennsylvania (Cost $1,964) 1,968
PUERTO RICO 2.8%
Puerto Rico Commonwealth, GO
5.50%, 7/1/06 (MBIA Insured) 1,000 1,031
Total Puerto Rico (Cost $1,022) 1,031
SOUTH CAROLINA 6.5%
Orangeburg County, South Carolina
Electric and Gas
VRDN (Currently 4.05%) * 400 400
South Carolina Public Service Auth.
6.50%, 7/1/24 (AMBAC Insured)
(Prerefunded 7/01/02!) 495 540
6.25%, 1/1/05 (MBIA Insured) 1,350 1,455
Total South Carolina (Cost $2,358) 2,395
TENNESSEE 0.6%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA Insured) * 200 206
Total Tennessee (Cost $209) 206
TEXAS 7.4%
Austin Airport, 5.75%, 11/15/08
(MBIA Insured) * $ 500 $ 512
Brazos Higher Ed. Auth., Student
Loan, 5.95%, 6/1/02 * 500 520
Gulf Coast IDA, Marine Terminal,
Amoco Oil
VRDN (Currently 4.10%) * 300 300
Gulf Coast Waste Disposal Auth.,
PCR, Amoco Oil
VRDN (Currently 4.10%) * 300 300
Harris County, Toll Road
6.50%, 8/15/17 (AMBAC Insured)
(Prerefunded 8/15/02!) 750 819
Houston, Water and Sewer
7.00%, 12/1/03
(AMBAC Insured) 270 300
Total Texas (Cost $2,665) 2,751
VIRGINIA 9.8%
Alexandria IDA, Ogden Martin
VRDN (Currently 4.15%) * 200 200
Leesburg, Utility Systems, 6.10%,
7/1/07 (MBIA Insured) 500 528
Upper Occoquan Sewage Auth.
6.00%, 7/1/06 (MBIA Insured) 1,445 1,538
Virginia HDA
5.75%, 7/1/99 * 500 511
6.125%, 1/1/99 * 50 51
6.50%, 7/1/03 * 250 262
Virginia Transportation Board
Northern Virginia Transportation
Dist.
5.80%, 5/15/04 500 523
Total Virginia (Cost $3,565) 3,613
WASHINGTON 1.4%
Washington Public Power Supply
System
6.30%, 7/1/01 (FSA Insured) 500 525
Total Washington (Cost $522) 525
Total Investments in Securities
98.9% of Net Assets (Cost
$36,112) $36,613
Other Assets Less Liabilities 399
NET ASSETS $37,012
________
Net Assets Consist of:
Accumulated net realized gain/
loss - net of distributions (88)
Net unrealized gain (loss) 501
Paid-in-capital applicable
to 3,641,058 shares of
$0.0001 par value capital
stock outstanding;
1,000,000,000 shares of the
Corporation authorized 36,599
NET ASSETS $37,012
________
NET ASSET VALUE PER SHARE $ 10.17
________
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Corp.
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.
T. Rowe Price Summit Municipal Income Fund
Unaudited
April 30, 1997
Statement of Net Assets
Par Value
In thousands
ALABAMA 2.7%
Baldwin County, Eastern Shore
Health Care Auth.
Thomas Hosp., 6.75%, 4/1/21 $ 200 $ 206
Jefferson County, Sewer, 5.625%,
2/1/22
(FGIC Insured) 250 242
Mobile IDB, Mobile Energy, 6.95%,
1/1/20 100 106
Total Alabama (Cost $542) 554
ALASKA 1.1%
Alaska Housing Fin. Corp., Capital
Appreciation
General Mortgage
Zero Coupon, 12/1/17
(MBIA Insured) 750 214
Total Alaska (Cost $215) 214
CALIFORNIA 8.1%
California, GO, 5.25%, 10/1/18
(FGIC Insured) 500 472
Foothill / Eastern Transportation
Corridor Agency
Toll Road, Zero Coupon, 1/1/26 500 80
Long Beach Harbor, 5.25%, 5/15/25
(MBIA Insured) * 250 228
Los Angeles County, Public Works
Fin. Auth.
5.50%, 10/1/18 (FSA Insured) 145 142
Placentia PFA, Special Tax,
6.60%, 9/1/15 100 99
Pomona Unified School Dist., GO
6.15%, 8/1/15 (MBIA Insured) 145 154
Saddleback Valley Unified School
Dist., PFA
Special Tax, Capital Appreciation
Zero Coupon, 9/1/18
(FSA Insured) 500 143
Santa Ana Housing Auth., Villa Del
Sol Apartments
5.65%, 11/1/21 * 300 305
Total California (Cost $1,609) 1,623
DISTRICT OF COLUMBIA 0.5%
Washington D.C. Metropolitan
Airport Auth.
8.10%, 10/1/08 (BIGI Insured) * 100 107
Total District of Columbia (Cost
$105) 107
GEORGIA 3.5%
Coweta County Residential Care Fac.
for the Elderly Auth.
Wesley Woods of Newnan-Peachtree
City
8.20%, 10/1/16 $ 215 $ 217
Georgia Housing Fin. Auth.,
Single Family
6.45%, 12/1/27 * 250 256
Rockdale County Dev. Auth., Solid
Waste Disposal
Visy Paper, 7.50%, 1/1/26 * 225 232
Total Georgia (Cost $690) 705
IDAHO 0.5%
Idaho Housing Agency, Single Family
6.60%, 7/1/27 (FHA Guaranteed) * 100 103
Total Idaho (Cost $100) 103
ILLINOIS 8.6%
Chicago, GO, 5.50%, 1/1/18 (AMBAC
Insured) 250 241
Chicago - O'Hare Int'l. Airport,
Int'l. Terminal
7.50%, 1/1/17 (MBIA Insured) * 85 92
Chicago Board of Ed., Chicago
School Reform Board
GO, 5.75%, 12/1/20 (AMBAC
Insured) 300 294
Illinois HFA
Community Hosp. of Ottawa, 6.85%,
8/15/24 200 208
Glen Oaks Medical Center
7.00%, 11/15/19 145 151
9.50%, 11/15/15 75 85
Highland Park Hosp.
5.75%, 10/1/17 (MBIA Insured) 140 137
Holy Cross Hosp., 6.70%, 3/1/14 300 309
Village of Carol Stream, DuPage County
Windsor Park Manor, 7.20%, 12/1/14 200 200
Total Illinois (Cost $1,684) 1,717
INDIANA 2.3%
Indiana State Office Building Commission
Correctional Fac.
5.50%, 7/1/20 (AMBAC
Insured) $ 500 $ 473
Total Indiana (Cost $473) 473
KENTUCKY 1.5%
Carroll County, Solid Waste Disposal Fac.
Kentucky Utilities
VRDN (Currently 4.15%) * 200 200
Kenton County Airport Board,
Delta Airlines
7.50%, 2/1/20 * 100 107
Total Kentucky (Cost $300) 307
LOUISIANA 5.0%
Lake Charles Harbor and Terminal
Dist., PCR
Conoco, VRDN (Currently
4.15%) * 900 900
Saint Charles Parish, PCR, Shell Oil
VRDN (Currently 4.10%) * 100 100
Total Louisiana (Cost $1,000) 1,000
MARYLAND 1.7%
Maryland CDA
Single Family
7.25%, 4/1/19 * 140 147
7.375%, 4/1/26 * 90 93
Maryland Energy Fin. Administration
Wheelabrator Water Technologies
6.45%, 12/1/16 100 104
Total Maryland (Cost $333) 344
MASSACHUSETTS 2.3%
Massachusetts HEFA
Melrose Wakefield Healthcare
5.375%, 7/1/05 $ 350 $ 343
Massachusetts Port Auth., 7.125%,
7/1/12 110 111
Total Massachusetts (Cost $459) 454
MICHIGAN 1.9%
Michigan Hosp. Fin. Auth., Henry
Ford Hosp.
5.25%, 11/15/20 300 278
Univ. of Michigan, Medical Service
Plan
VRDN (Currently 4.00%) 100 100
Total Michigan (Cost $383) 378
MISSISSIPPI 2.8%
Claiborne County, PCR, Systems
Energy Resources
7.30%, 5/1/25 150 157
Jackson County Industrial Sewage Fac.
Chevron USA, VRDN (Currently
4.10%) 300 300
Warren County, PCR, Mississippi
Power and Light
7.00%, 4/1/22 100 106
Total Mississippi (Cost $550) 563
NEVADA 2.3%
Clark County Airport Fac.,
McCarren Int'l. Airport
6.00%, 7/1/17 (MBIA Insured) * 250 253
Clark County, IDR, Southwest Gas
6.50%, 12/1/33 * 200 201
Total Nevada (Cost $429) 454
NEW HAMPSHIRE 1.0%
New Hampshire Housing Fin. Auth.
Single Family, 6.85%, 7/1/14 * $ 200 $ 208
Total New Hampshire (Cost $200) 208
NEW JERSEY 8.1%
New Jersey HFFA
Columbus Hosp., 7.50%, 7/1/21 350 369
Irvington General Hosp.
5.875%, 8/1/06 (FHA Guaranteed) 200 205
Raritan Bay Medical Center,
7.25%, 7/1/27 200 208
New Jersey Housing and Mortgage
Fin. Agency
Home Buyer, 6.35%, 10/1/27
(MBIA Insured) * 250 255
New Jersey Sports and Exposition Auth.
Monmouth Park, 8.00%, 1/1/25 100 110
New Jersey Wastewater Treatment
Trust, 6.375%, 4/1/11 200 213
Rutgers, The State Univ., 6.35%,
5/1/06 250 268
Total New Jersey (Cost $1,552) 1,628
NEW MEXICO 1.7%
Farmington, PCR
Public Service Co. of New Mexico
6.30%, 12/1/16 200 198
6.375%, 4/1/22 150 149
Total New Mexico (Cost $350) 347
NEW YORK 15.9%
Dormitory Auth. of the State of New York
Mental Health Services Fac.
5.50%, 8/15/17 300 281
Nyack Hosp., 6.00%, 7/1/06 250 250
Erie County Water Auth.
Zero Coupon, 12/1/17
(AMBAC Insured) 550 126
Metropolitan Transportation Auth.,
Commuter Fac.
5.625%, 7/1/27 (MBIA Insured) $ 115 $ 112
Nassau County IDA, Hofstra Univ.,
6.80%, 1/1/11 290 318
New York City, GO
5.875%, 8/1/24 200 191
6.25%, 8/1/09 350 359
New York City Municipal Water
Fin. Auth.
Water and Sewer
6.00%, 6/15/09 200 212
5.00%, 6/15/17 (FGIC Insured) 100 90
New York State Energy Research
and Dev. Auth.
PCR, New York Electric and Gas
6.15%, 7/1/26 (MBIA
Insured) * 200 202
New York State Environmental Fac.
Corp.
PCR, State Water Revolving Fund
6.90%, 11/15/15 200 225
New York State Mortgage Agency
Homeowner Mortgage
6.45%, 10/1/17 100 105
6.625%, 4/1/25 * 100 103
7.50%, 4/1/26 * 250 268
New York State Urban Dev. Corp.,
State Fac., 5.60%, 4/1/15 150 145
Port Auth. of New York and New Jersey
6.50%, 10/1/01 * 200 206
Total New York (Cost $3,079) 3,193
OHIO 3.5%
Akron, Municipal Baseball Stadium,
COP, STEP
Zero Coupon, 12/1/16 300 227
Dayton Special Fac., Emery
Air Freight
6.05%, 10/1/09 250 254
Fairfield Economic Dev. Auth.,
Beverly Enterprises
8.50%, 1/1/03 100 108
Ohio Water Dev. Auth., PCR,
Toledo Edison
8.00%, 10/1/23 * 100 108
Total Ohio (Cost $677) 697
OKLAHOMA 0.8%
Tulsa Municipal Airport, American
Airlines
7.375%, 12/1/20 * $ 150 $ 159
Total Oklahoma (Cost $148) 159
PENNSYLVANIA 0.9%
Erie County IDA, Beverly Enterprises
6.625%, 5/1/02 100 101
Philadelphia Airport Auth., 6.10%,
6/15/25
(AMBAC Insured) * 75 75
Total Pennsylvania (Cost $170) 176
PUERTO RICO 1.2%
Puerto Rico Highway and
Transportation Auth.
5.50%, 7/1/15 250 244
Total Puerto Rico (Cost $236) 244
SOUTH CAROLINA 1.0%
South Carolina Public Service Auth.
6.25%, 1/1/22 (AMBAC Insured) 200 207
Total South Carolina (Cost $202) 207
SOUTH DAKOTA 1.0%
South Dakota HDA, Homeownership,
6.65%, 5/1/14 185 193
Total South Dakota (Cost $185) 193
TENNESSEE 1.5%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA
Insured) * ** 100 103
Metropolitan Gov't. of Nashville
and Davidson Counties
Health and Ed. Fac. Board,
Mur-Ci Homes
7.75%, 12/1/26 200 195
Total Tennessee (Cost $299) 298
TEXAS 3.0%
Amarillo Health Fac. Corp., Sears
Panhandle Retirement
7.75%, 8/15/26 $ 200 $ 201
Harris County, Toll Road
6.375%, 8/15/24 (MBIA Insured) 250 262
Texas, Veterans Housing Assistance,
GO, 6.25%, 12/1/15 130 132
Total Texas (Cost $562) 595
UTAH 3.5%
Intermountain Power Agency
Power Supply
5.75%, 7/1/16 (MBIA Insured) 500 497
5.75%, 7/1/19 (MBIA Insured) 200 197
Total Utah (Cost $679) 694
VIRGINIA 7.5%
Alexandria IDA, Ogden Martin
VRDN (Currently 4.15%) * 200 200
Fredericksburg IDA, Medicorp Health
5.25%, 6/15/23 (AMBAC Insured) 500 463
Henrico County IDA, Bon Secours Health
6.25%, 8/15/20 (MBIA Insured) 200 216
Peninsula Port Auth., Riverside Health
6.625%, 7/1/18 200 210
Virginia Ed. Loan Auth., Student Loan
5.55%, 9/1/10
(Prerefunded 3/1/06!) * 55 56
Virginia HDA
6.50%, 5/1/13 * 100 104
6.60%, 7/1/20 * 250 257
Total Virginia (Cost $1,489) 1,506
WASHINGTON 2.3%
Chelan County Public Utility Dist. No. 1
Columbia River-Rock Hydroelectric
Zero Coupon, 6/1/18
(MBIA Insured) $ 585 $ 167
Tacoma, Solid Waste Utilities
5.50%, 12/1/17 (AMBAC Insured) 300 291
Total Washington (Cost $454) 458
WISCONSIN 5.6%
Wisconsin HEFA
National Regency of New Berlin,
8.00%, 8/15/25
200 205
Sinai Samaritan Medical Center
5.875%, 8/15/26 (MBIA Insured) 200 198
Waukesha Memorial Hosp.
5.25%, 8/15/19 (AMBAC Insured) 300 276
Wisconsin Housing and Economic Dev. Auth.
Homeownership
6.20%, 3/1/27 * 200 201
6.45%, 9/1/27 * 250 255
Total Wisconsin (Cost $1,112) 1,135
Total Investments in Securities
103.3% of Net Assets (Cost
$20,266) $20,734
Futures Contracts
In thousands
Contract Unrealized
Expiration Value Gain (Loss)
___________ _________ ___________
Short, 6 Muni-
cipal Bond
Index contracts,
$600,000 of
Municipal bonds
pledged as
initial margin 6/97 $ (686,250) $ (8)
Net payments
(receipts) of
variation
margin to date 6
Variation margin
receivable
(payable) on open
futures contracts (2)
Other Assets Less Liabilities (670)
NET ASSETS $20,062
_______
Net Assets Consist of:
Accumulated net realized
gain/loss - net of
distributions (108)
Net unrealized gain (loss) 460
Paid-in-capital applicable to
2,013,447 shares of
$0.0001 par value capital
stock outstanding;
1,000,000,000 shares of the
Corporation authorized 19,710
NET ASSETS $20,062
________
NET ASSETS Value per share $ 9.96
________
* Interest subject to alternative minimum tax
** When-issued security
! Used in determining portfolio maturity
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
FSA Financial Security Assurance Corp.
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 Bond
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
PFA Public Facility Authority
STEP Stepped coupon bond for which the interest rate will adjust on
specified future date(s)
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
Inter-
Money mediate Income
Market Fund Fund Fund
6 Months 6 Months 6 Months
Ended Ended Ended
4/30/97 4/30/97 4/30/97
Investment Income
Income
Interest income $ 1,897 $ 849 $ 517
Expenses
Investment management
and administrative 234 80 43
Net investment income 1,663 769 474
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities - 82 112
Futures - (1) (12)
Net realized gain (loss) - 81 100
Change in net unrealized
gain or loss
Securities - (293) (127)
Futures - - 7
Change in net unrealized
gain or loss - (293) (120)
Net realized and unrealized
gain (loss) - (212) (20)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,663 $ 557 $ 454
____________________________
Statement of Changes in Net Assets
In thousands
Money Market Intermediate
Fund Fund
6 Months Year 6 Months Year
Ended Ended Ended Ended
4/30/97 10/31/96 4/30/97 10/31/96
Increase (Decrease) in Net Assets
Operations
Net investment
income $ 1,663 $ 2,721 $ 769 $ 1,219
Net realized
gain (loss) - 1 81 160
Change in net
unrealized
gain or loss - (12) (293) (32)
Increase (decrease)
in net assets
from operations 1,663 2,710 557 1,347
Distributions to
shareholders
Net investment
income (1,663) (2,721) (769) (1,219)
Capital share
transactions*
Shares sold 80,121 126,457 11,262 12,096
Distributions
reinvested 1,519 2,457 515 765
Shares redeemed (66,160) (110,597) (3,728) (5,959)
Increase (decrease)
in net assets
from capital
share
transactions 15,480 18,317 8,049 6,902
Net Assets
Increase (decrease)
during period 15,480 18,306 7,837 7,030
Beginning of
period 96,264 77,958 29,175 22,145
End of period $ 111,744 $ 96,264 $ 37,012 $ 29,175
________________________________________
*Share information
Shares sold 80,121 126,457 1,100 1,188
Distributions
reinvested 1,519 2,457 50 76
Shares redeemed (66,160) (110,597) (364) (587)
Increase (decrease)
in shares
outstanding 15,480 18,317 786 677
Income Fund
6 Months Year
Ended Ended
4/30/97 10/31/96
Increase (Decrease) in Net Assets
Operations
Net investment income $ 474 $ 749
Net realized gain (loss) 100 101
Change in net unrealized
gain or loss (120) 90
Increase (decrease) in
net assets from operations 454 940
Distributions to shareholders
Net investment income (474) (749)
Capital share transactions*
Shares sold 6,355 8,604
Distributions reinvested 242 351
Shares redeemed (2,424) (4,345)
Increase (decrease) in
net assets from capital
share transactions 4,173 4,610
Net Assets
Increase (decrease)
during period 4,153 4,801
Beginning of period 15,909 11,108
End of period $ 20,062 $ 15,909
__________________
*Share information
Shares sold 637 872
Distributions reinvested 24 36
Shares redeemed (243) (442)
Increase (decrease)
in shares outstanding 418 466
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Funds
Unaudited
April 30, 1997
T. Rowe Price Summit Municipal Funds
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), 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 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.
Financial futures contracts are valued at closing settlement prices.
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 that 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. Payments ("variation margin") made or
received by each fund to settle the daily fluctuations in the value of
futures contracts are recorded as unrealized gains or losses until the
contracts are closed. Unrealized gains and losses on futures contracts are
included in Change in net unrealized gain or loss in the accompanying
financial statements.
Note 2 - Investment Transactions
Consistent with their investment objectives, the funds engage in the
following practices to manage exposure to certain risks or enhance
performance. The investment objective, policies, program, and risk factors
of each fund are described more fully in each fund's prospectus and Statement
of Additional Information.
Futures Contracts At April 30, 1997, the Income Fund was a party to futures
contracts, which provide for the future sale by one party and purchase by
another of a specified amount of a specific financial instrument at an agreed
upon price, date, time, and place. Risks arise from possible illiquidity of
the futures market and from movements in security values and interest rates.
Other Purchases and sales of portfolio securities, other than short-term
securities, for the six months ended April 30, 1997, were as follows:
Intermediate Income
Fund Fund
Purchases$ 11,732,000 $ 6,577,000
Sales 7,644,000 3,541,000
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 Intermediate Fund has unused realized capital loss
carryforwards for federal income tax purposes of $169,000, which expires in
2002. The Income Fund has unused realized capital loss carryforwards for
federal income tax purposes of $224,000, of which $213,000 expires 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, 1997, the aggregate costs of investments for the Money Market,
Intermediate, and Income Funds for federal income tax and financial reporting
purposes were $113,396,000, $36,112,000, and $20,266,000, 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 $ 559,000 $ 511,000
Depreciated investments (58,000) (43,000)
Net unrealized gain (loss) $ 501,000 $ 468,000
___________________________
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 $21,000 and $1,000 were payable at April 30, 1997 by the
Money Market and Intermediate Funds, respectively. 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.
T. Rowe Price Shareholder Services
Investment Services And Information
Knowledgeable Service Representatives
By Phone 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
Account Services
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your distributions.
Automated 24-Hour Services Including Tele*Access(registered trademark) and
T. Rowe Price OnLine.
Discount Brokerage*
Individual Investments Stocks, bonds, options, precious metals,and other
securities at a savings over regular commission rates.
Investment Information
Combined Statement Overview of your T. Rowe Price accounts.
Shareholder Reports Fund managers' reviews of their strategies and results.
T. Rowe Price Report Quarterly investment newsletter discussing markets and
financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
*A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(registered trademark):
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
T. Rowe Price Associates
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.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
T. Rowe Price Investment Services, Inc., Distributor.
CO9-051 4/30/97
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, 4/30/96
to 4/30/97
Chart 2 - Quality Diversification pie chart for SumMuni Income showing AAA
2%, AA 51%, A 16%, BBB 19%, BB 9%, B and Below 3%
Chart 3 - SumMuni Money Market Fund SEC chart showing the cumulative growth
of $10,000 invested in the Fund over the past 10 years (or from inception for
funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.
Chart 4 - SumMuni Intermediate Fund SEC chart showing the cumulative growth
of $10,000 invested in the Fund over the past 10 years (or from inception for
funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.
Chart 5 - SumMuni Income Fund SEC chart showing the cumulative growth of
$10,000 invested in the Fund over the past 10 years (or from inception for
funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.
