Annual Report
Summit
Municipal
Funds
October 31, 1997
T. Rowe Price
Report Highlights
Summit Municipal Funds
o Bond prices appreciated during the past year, with much of
the gain occurring in the last six months.
o Despite the strong economy, the Fed has held off tightening
monetary policy since its rate hike in March.
o Yield spreads between higher- and lower-rated municipals
narrowed, benefiting many of the holdings in fund
portfolios.
o All three funds exceeded the average performance of similar
funds for the last 6- and 12-month periods. For the past 12
months, the Summit Municipal Money Market Fund, Summit
Municipal Intermediate Fund, and Summit Municipal Income
Fund returned 3.37%, 7.78%, and 10.54%, respectively.
o We believe the relative attractiveness of municipal versus
taxable securities, reduced supply, and investor demand
will favor municipal bonds in the coming months.
Fellow Shareholders
Over the 12 months ended October 31, 1997, bond prices
appreciated. Much of the gain occurred during the last six
months as inflation remained subdued despite strong economic
growth. Foreign and domestic financial markets recently
experienced considerable turmoil, spurred primarily by currency
crises in several Southeast Asian countries. However, the
domestic bond market benefited from the overseas disturbance as
global investors found a safe haven in U.S. Treasury bonds.
MARKET ENVIRONMENT
Gross domestic product, a key measure of the country's economic
health, registered four consecutive quarters of more than 3%
annualized growth through September 30, including two quarters
that exceeded 4%. Despite robust growth in the second and third
quarters, the Federal Reserve opted not to raise short-term
interest rates as it did in March, primarily because of
decelerating inflation. However, the Federal Reserve's Board of
Governors remains somewhat skeptical that the factors
restraining inflation are long-lasting.
Chart 1 - Municipal Bond and Note Yields
Treasury bonds were increasingly volatile, particularly in the
third quarter when various economic reports caused wide price
swings. Interest rates trended lower overall as the 30-year
Treasury bond yield, which began the fund's fiscal year at
6.70%, peaked at 7.17% in April before ending at 6.15%, its low
for the year. The intermediate- and short-term sectors followed
similar patterns, although yields on notes recently rose a bit
from their lowest levels of the past 12 months.
Municipal bond yields also declined from year-ago levels, with
most of the change occurring in the last six months. The
tax-exempt market benefited from subdued inflation's positive
impact on all fixed income investments. However, municipal
performance was not as strong as that of Treasuries due to
increased supply of new issues, including refundings, as rates
moved lower. To date, new issue supply is 18% higher than a year
ago with no slowdown expected before year-end. By contrast, the
gross quarterly issuance of Treasury notes and bonds declined by
more than 20% since the third quarter of 1996, which helped
propel Treasury yields lower.
Also contributing to the municipal market's lagging performance
was the perception that long-term yields may have reached a
resistance level as they approached 5%. During the fiscal year,
yields on long-term AAA bonds fell to a low of 5.15% before
ending a bit higher at 5.23%, down from 5.50% a year earlier.
The five-year AAA yield fell 25 basis points (a quarter of one
percent) to 4.15%, while the one-year note yield remained fairly
flat throughout the year and ended the period at 3.80%. The net
result was a flatter yield curve, with 143 basis points
separating one-year and 30-year maturities compared with 180 a
year ago.
Yield spreads between higher- and lower-quality bonds narrowed
throughout the period. Investors have been willing to buy
lower-quality, higher-yielding bonds in the belief that their
yield spreads would narrow versus high-quality bonds due to
credit quality upgrades as a result of the strong economy.
According to Standard & Poor's, bond rating upgrades exceeded
downgrades by a substantial margin. All tax-exempt sectors
continued to benefit from an expanding national economy, as well
as from better tax revenue flows to state and local governments.
SUMMIT MUNICIPAL MONEY MARKET FUND
Performance Comparison
Periods Ended 10/31/97 6 Months 12 Months
_____________________________________________________________
Municipal Money
Market Fund 1.75% 3.37%
Lipper Tax-Exempt Money
Market Funds Average 1.57 3.04
Our investment strategy helped your fund outperform its peer
group average for both the 6- and 12-month periods ended October
31, 1997, as shown in the table. One reason for the relatively
strong performance was the Summit Municipal Money Market Fund's
weighted average maturity, which was 68 days at fiscal year-end,
significantly longer than the peer group average of 49 days.
Throughout the entire year we maintained a longer-than-average
maturity to take advantage of a positively sloped money market
yield curve. The spread between overnight and one-year
maturities averaged approximately 30 basis points over the past
12 months and 20 basis points over the past six.
The fund continued to invest heavily in securities subject to
the alternative minimum tax (AMT), with 66% of the portfolio
invested in this sector at fiscal year-end, up slightly from 63%
over the past six months. AMT securities generally provide an
additional yield of 10 to 15 basis points, and since the average
of all funds in our competitive peer group had only 16%
committed to this sector, your fund enjoyed a yield advantage.
The portfolio's heavy concentration in daily and weekly variable
rate notes and near absence of commercial paper also had a
positive effect on the fund compared with the competition. Due
to supply pressure, variable rate notes offered good value in
the shortest part of the yield curve. Conversely, commercial
paper, which typically matures in 30 to 120 days, offered lower
returns during the past year than both variable rate notes and
longer-maturity notes.
Tax-exempt money market yields were generally docile over the
past fiscal year, considering the changing expectations for
economic growth, inflation, and Federal Reserve policy. For
example, one-year municipal notes ended at 3.80%, down from
3.95% at the close of the six-month period on April 30 and up
from 3.70% at fiscal year-end 1996. Even though the Fed nudged
the federal funds rate 25 basis points higher last March, only
35 basis points separated the high and low yield of the one-year
note over the past 12 months. Yields on shorter maturities, such
as one to 120 days, traded in a wider range since they are most
affected by supply and demand considerations.
SUMMIT MUNICIPAL INTERMEDIATE FUND
Performance Comparison
Periods Ended 10/31/97 6 Months 12 Months
_________________________________________________________
Municipal Intermediate
Fund 5.77% 7.78%
Lipper Intermediate
Municipal Debt
Funds Average 5.00 6.62
Our investment strategy over the past six months was little
changed from the first six months of the fiscal year, and it
enabled your fund to surpass the average returns of its peers
for both periods shown. We continued to direct new cash into
lower-rated bonds with prospects of credit upgrades, and into
callable bonds offering good yields and the potential for
appreciation due to refundings. The biggest change was a slight
extension of the fund's weighted average maturity and duration
because of the attractiveness of municipal yields relative to
their taxable counterparts, a strategy that contributed to solid
performance over the 6- and 12-month periods. A fund with a
longer duration will appreciate more in price when rates
decline. For example, a bond fund with a duration of five years
will rise or fall about 5% in price in response to a
one-percentage-point fall or rise in interest rates.
As mentioned, the yield differential between lower-rated and AAA
bonds narrowed further over the last six months. For example,
the spread between New York State lease-backed debt and
high-grade debt was cut in half as investors anticipated a
rating upgrade due to increased tax collections resulting from
the prolonged economic expansion. As it turned out, the bonds
were upgraded at the end of August, increasing the value of the
fund's New York State holdings.
Since the fund's inception, we have overweighted longer-term
callable bonds because we believe they offer relatively high
yield for the amount of risk assumed. They also have the
potential for price appreciation in the event they are refunded
to their call dates. The refunding increases the credit quality
of the bonds since their principal is guaranteed at the first
call date. In the last six months, approximately 2% of the
portfolio was refunded this way.
SUMMIT MUNICIPAL INCOME FUND
Performance Comparison
Periods Ended 10/31/97 6 Months 12 Months
____________________________________________________
Municipal Income Fund 7.66% 10.54%
Lipper General Municipal
Debt Funds Average 6.35 8.12
The combined strategies of investing a portion of fund assets in
medium- and below-investment-grade bonds and carrying a
longer-than-average maturity and duration, coupled with a low
expense ratio, again produced superior results relative to our
peer group average for the 6- and 12-month periods ended October
31. As shown in the table, your fund posted solid returns of
7.66% and 10.54% for the respective periods. A bond fund with a
longer duration will appreciate more in price when interest
rates fall. (For an explanation of how duration works, see the
review of the Summit Municipal Intermediate Fund.)
As in the past, our primary investment focus was on identifying
bond sectors and individual issuers (municipalities, government
agencies, or other tax-exempt entities) with attractive credit
outlooks and reasonable valuations. We continued to hold about
29% of portfolio assets in medium- (BBB) and lower-quality
securities, which resulted in the fund carrying an average
credit rating of A. This strategy enabled the fund to produce a
higher yield than our peers and to benefit from above-average
price appreciation, as the yield spread between lower- and
higher-quality bonds narrowed.
Chart 2 - Quality Diversification
In addition, over the last six months we lengthened the weighted
average maturity and duration of the fund, assuming a modestly
aggressive posture. This maturity and duration strategy also led
to significant price appreciation as interest rates generally
declined since April.
OUTLOOK
Several factors appear favorable for the municipal bond market
in the coming months. Municipal yields are at their most
attractive levels relative to taxable yields in the past 12
months, the result of increased seasonal new issuance and
reduced demand. Both factors should begin to reverse in December
as issuance slows and cash flow from coupon payments and
maturing bonds generate seasonal demand. Improving supply and
demand characteristics could cause municipal bonds to outperform
their taxable counterparts over the next six months.
The contradictory environment of above-trend economic growth and
declining inflation, perhaps even deflation, still poses a
dilemma for fixed income investors. Classic economic theory
suggests that inflation must follow extended periods of strong
growth such as the U.S. economy has enjoyed, leading to higher
bond yields. However, there is an equally compelling case for
lower bond yields, not seen since the 1950s. This argument holds
that excess labor in the global economy will keep a lid on
inflationary wage pressures; productivity will continue to
increase due to enhancements in technology; and the demographics
of an aging population will spur investments in fixed income.
These trends, combined with a nearly balanced budget and global
demand for U.S. Treasuries, could presage even lower interest
rates down the road.
We believe that the outlook for the municipal fixed income
market is favorable as long as inflation remains subdued.
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
November 18, 1997
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Key statistics
4/30/97 10/31/97
Summit Municipal Money Market Fund
______________________________________________________________
Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months 0.016 0.017
For 12 months 0.032 0.033
Dividend Yield (7-Day Compound) * 3.89% 3.46%
Weighted Average Maturity (days) 48 68
Weighted Average Quality ** First Tier First Tier
Summit Municipal Intermediate Fund
_____________________________________________________________
Price Per Share $ 10.17 $10.51
Dividends Per Share
For 6 months 0.24 0.24
For 12 months 0.48 0.49
Dividend Yield *
For 6 months 4.88% 4.61%
For 12 months 4.93 4.79
Weighted Average Maturity (years) 7.9 8.9
Weighted Average Effective
Duration (years) 4.9 5.6
Weighted Average Quality *** AA- A+
(continued on next page)
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Key statistics
4/30/97 10/31/97
Summit Municipal Income Fund
_____________________________________________________________
Price Per Share $ 9.96 $10.44
Dividends Per Share
For 6 months 0.28 0.28
For 12 months 0.55 0.55
Dividend Yield *
For 6 months 5.62% 5.34%
For 12 months 5.69 5.55
Weighted Average Maturity (years) 19.37 19.30
Weighted Average Effective
Duration (years) 8.18 8.40
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
4/30/97 10/31/97
Summit Municipal Money Market Fund
___________________________________________________________
Air and Sea Transportation
Revenue 14% 26%
Industrial and Pollution
Control Revenue 20 18
General Obligation - State 15 11
Educational Revenue 7 8
Escrowed to Maturity 8 7
General Obligation - Local 6 7
Prerefunded Bonds 6 6
Electric Revenue 6 6
Housing Finance Revenue 9 4
Water and Sewer Revenue 1 3
Dedicated Tax Revenue 1 2
All Other 8 2
Other Assets Less Liabilities -1 -
___________________________________________________________
Total 100% 100%
(continued on next page)
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
4/30/97 10/31/97
Summit Municipal Intermediate Fund
__________________________________________________________
Hospital Revenue 7% 15%
Solid Waste Revenue 9 11
Air and Sea Transportation Revenue 10 11
Nuclear Revenue 7 11
General Obligation - Local 4 10
Lease Revenue 9 8
Miscellaneous 1 7
Prerefunded Bonds 6 7
Housing Finance Revenue 5 4
General Obligation - State 12 4
Educational Revenue 2 4
Dedicated Tax Revenue 4 3
Industrial and Pollution
Control Revenue 8 2
Life Care and Nursing Home Revenue 2 2
All Other 13 6
Other Assets Less Liabilities 1 -5
___________________________________________________________
Total 100% 100%
(continued on next page)
T. Rowe Price Summit Municipal Funds
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
4/30/97 10/31/97
Summit Municipal Income Fund
____________________________________________________________
Hospital Revenue 21% 17%
Nuclear Revenue 6 14
Housing Finance Revenue 15 12
Industrial and Pollution
Control Revenue 10 8
Life Care and Nursing Home Revenue 6 7
General Obligation - Local 6 7
Educational Revenue 3 6
Water and Sewer Revenue 5 5
Solid Waste Revenue 5 5
Other Revenue 2 4
Electric Revenue 5 4
Lease Revenue 6 4
Air and Sea Transportation Revenue 5 3
Ground Transportation Revenue 2 3
Dedicated Tax Revenue 3 2
General Obligation - State 3 2
Prerefunded Bonds - 2
All Other - 2
Other Assets Less Liabilities -3 -7
____________________________________________________________
Total 100% 100%
T. Rowe Price Summit Municipal Funds
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.
Performance Comparison
Summit Municipal Money Market Fund
Lipper Tax-Exempt Summit Municipal
Money Market Money Market
Funds Average Fund
10/29/93 $ 10,000 $ 10,000
10/94 10,212 10,235
10/95 10,549 10,597
10/96 10,865 10,944
10/97 11,196 11,314
Summit Municipal Intermediate Fund
Lipper Summit
Lehman 7-Year Intermediate Municipal
Municipal Bond Municipal Debt Intermediate
Index Funds Average Fund
10/29/93 $ 10,000 $ 10,000 $ 10,000
10/94 9,810 9,750 10,018
10/95 11,022 10,854 11,160
10/96 11,535 11,341 11,761
10/97 12,392 12,121 12,676
Summit Municipal Income Fund
Lipper General Summit
Lehman Municipal Municipal Debt Municipal
Bond Index Funds Average Income Fund
10/29/93 $ 10,000 $ 10,000 $ 10,000
10/94 9,564 9,405 9,562
10/95 10,983 10,696 10,966
10/96 11,610 11,259 11,738
10/97 12,596 12,186 12,975
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.
Periods Ended Since Inception
10/31/97 1 Year 3 Years Inception Date
______________________________________________________________
Summit Municipal
Money Market
Fund 3.37% 3.40% 3.13% 10/29/93
Summit Municipal
Intermediate Fund 7.78 8.16 6.10 10/29/93
Summit Municipal
Income Fund 10.54 10.71 6.72 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 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
Financial Highlights
For a share outstanding throughout each period
Year 10/29/93
Ended through
10/31/9710/31/96 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 0.033 0.032 0.035 0.023
Distributions
Net investment
income (0.033) (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 3.37% 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 3.31%3.23% 3.48%2.56%!
Net assets, end of
period (in
thousands) $140,557 $96,264 $ 77,958 $42,592
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Intermediate Fund
Financial Highlights
For a share outstanding throughout each period
Year 10/29/93
Ended through
10/31/9710/31/96 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 0.49 0.48 0.48 0.43
Net realized and
unrealized gain
(loss) 0.29 0.05 0.58 (0.41)
Total from
investment
activities 0.78 0.53 1.06 0.02
Distributions
Net investment
income (0.49) (0.48) (0.48)(0.43)
NET ASSET VALUE
End of period $ 10.51 $ 10.22 $ 10.17 $ 9.59
___________________________________
Ratios/Supplemental Data
Total return 7.78% 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 4.67%4.77% 4.93% 4.50%!
Portfolio turnover
rate 53.8%72.9% 86.1% 157.5%!
Net assets, end of
period (in
thousands) $ 46,906 $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
Financial Highlights
For a share outstanding throughout each period
Year 10/29/93
Ended through
10/31/9710/31/96 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 0.55 0.54 0.54 0.50
Net realized and
unrealized gain
(loss) 0.47 0.13 0.76 (0.92)
Total from
investment
activities 1.02 0.67 1.30 (0.42)
Distributions
Net investment
income (0.55) (0.54) (0.54) (0.50)
NET ASSET VALUE
End of period $ 10.44 $ 9.97 $ 9.84 $ 9.08
Ratios/Supplemental Data
Total return 10.54% 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 5.38% 5.51% 5.68% 5.23%!
Portfolio turnover
rate 35.7% 56.7% 73.7% 161.1%!
Net assets, end of
period (in
thousands) $ 29,102 $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
October 31, 1997
Statement of Net Assets
Par Value
In thousands
ALABAMA 0.5%
Decatur IDB, Solid Waste Disposal,
Amoco Chemical
VRDN (Currently 4.25%) * $ 700 $ 700
Total Alabama (Cost $700) 700
ALASKA 0.5%
Alaska Housing Fin., 3.95%, 12/1/97 685 685
Total Alaska (Cost $685) 685
ARIZONA 0.0%
Salt River, Agricultural Improvement
and Power Dist.
7.875%, 1/1/28 (Prerefunded
1/1/98!) 70 72
Total Arizona (Cost $72) 72
CALIFORNIA 2.1%
California, RAN, 4.50%, 6/30/98 2,000 2,008
Riverside County, GO, TRAN, 4.50%,
6/30/98 1,000 1,004
Total California (Cost $3,012) 3,012
CONNECTICUT 0.1%
Connecticut, Transportation
Infrastructure
7.20%, 2/15/04 (Prerefunded
2/15/98!) 150 154
Total Connecticut (Cost $154) 154
DELAWARE 0.6%
Delaware Transportation Auth.
7.75%, 7/1/08 (Prerefunded
7/1/98!) 750 780
Total Delaware (Cost $780) 780
FLORIDA 1.9%
Dade County School District, GO
6.40%, 8/1/98 (MBIA Insured) 250 254
Florida Board of Ed., GO, Capital Outlay
6.60%, 6/1/98 250 254
Florida Board of Ed., Public Ed.
7.875%, 6/1/98 (MBIA Insured) $ 25 $ 26
Hillsborough County IDA, PCR, Tampa
Electric
VRDN (Currently 4.25%) * 1,200 1,200
Jacksonville HFA, Baptist
Medical Center
VRDN (Currently 4.15%) (MBIA
Insured) 500 500
Jacksonville Transportation Auth.
9.00%, 1/1/02 (Prerefunded
1/1/98!) 375 386
Total Florida (Cost $2,620) 2,620
GEORGIA 4.2%
Fulton County, GO, 4.25%, 1/1/98 155 155
Georgia, GO, 7.25%, 7/1/98 250 255
Metropolitan Atlanta Rapid Transit
Auth., Sales Tax
8.00%, 7/1/18 (FGIC Insured)
(Prerefunded 7/1/98!) 1,000 1,047
Municipal Electric Auth. of
Georgia, Power
7.90%, 1/1/01 (Prerefunded
1/1/98!) 50 51
Savannah Economic Dev. Auth.,
Home Depot
VRDN (Currently 3.75%) * 4,400 4,400
Total Georgia (Cost $5,908) 5,908
HAWAII 1.5%
Hawaii, GO, 7.10%, 6/1/09
(Prerefunded 6/1/98!) 2,000 2,065
Honolulu City and County
6.20%, 12/1/97 (Escrowed to
Maturity) 100 100
Total Hawaii (Cost $2,165) 2,165
ILLINOIS 2.8%
Chicago, GO, 4.50%, 1/1/98 (AMBAC
Insured) 515 515
Illinois Student Assistance Commission,
Student Loan
VRDN (Currently 3.70%) 900 900
Lake County Water and Sewer, W. W.
Grainger
VRDN (Currently 3.90%) * 1,500 1,500
Southwestern Illinois Dev. Auth.,
Environmental Improvement
Shell Oil, VRDN (Currently
4.25%) * $ 975 $ 975
Total Illinois (Cost $3,890) 3,890
INDIANA 3.6%
Petersburg
Solid Waste Disposal, Indianapolis
Power and Light
VRDN (Currently 3.75%) * 5,000 5,000
Total Indiana (Cost $5,000) 5,000
KENTUCKY 1.4%
Carroll County, Solid Waste Disposal
Fac., Kentucky Utilities
VRDN (Currently 4.25%) * 1,900 1,900
Total Kentucky (Cost $1,900) 1,900
LOUISIANA 8.7%
New Orleans Aviation Board
VRDN (Currently 3.75%) (MBIA
Insured) * 5,510 5,510
Parish of Jefferson, GO, Drainage
Improvement
6.15%, 9/1/98 600 610
Plaquemines Parish, British Petroleum
VRDN (Currently 4.25%) * 3,500 3,500
Saint Charles Parish, PCR, Shell Oil
VRDN (Currently 4.25%) * 2,600 2,600
Total Louisiana (Cost $12,220) 12,220
MAINE 2.8%
Maine Ed. Loan Marketing
VRDN (Currently 3.70%) (AMBAC
Insured) * 4,000 4,000
Total Maine (Cost $4,000) 4,000
MARYLAND 2.4%
Carroll County, GO, County Commissioners
Consolidated Public Improvement
5.90%, 11/1/97 50 50
Howard County, GO, Consolidated Public
Improvement
5.00%, 2/15/98 $ 200 $ 201
Maryland DOT, 6.40%, 7/15/98 1,925 1,959
Montgomery County, 7.10%, 10/1/04
(Prerefunded 10/1/98!) 500 524
Saint Mary's County, GO, 7.00%,
3/1/98 (MBIA Insured) 185 187
Univ. of Maryland, Auxiliary Fac.
and Tuition
4.50%, 4/1/98 290 291
Washington Suburban Sanitary
Dist., GO
7.50%, 12/1/09 (Prerefunded
12/1/97!) 100 102
Total Maryland (Cost $3,314) 3,314
MASSACHUSETTS 0.1%
Boston, GO, 6.75%, 2/1/98
(AMBAC Insured) 100 101
Total Massachusetts (Cost $101) 101
MICHIGAN 4.9%
Detroit City School Dist., GO, RAN,
4.50%, 5/1/98 1,000 1,003
Univ. of Michigan Hosp., VRDN
(Currently 4.25%) 900 900
Wayne/Charter County Airport
Detroit Metropolitan Airport
VRDN (Currently 3.65%) * 5,000 5,000
Total Michigan (Cost $6,903) 6,903
MISSISSIPPI 1.6%
Jackson County Industrial Sewage
Fac., Chevron
VRDN (Currently 4.25%) * 2,300 2,300
Total Mississippi (Cost $2,300) 2,300
NEVADA 0.3%
Clark County School Dist., GO,
Computer Equipment
5.50%, 6/15/98 (FGIC Insured) 475 480
Total Nevada (Cost $480) 480
NEW JERSEY 0.3%
New Jersey, GO, 6.00%, 1/15/98 $ 100 $ 100
New Jersey Health Care Fac. Fin. Auth.
Atlantic City Medical Center
7.60%, 8/1/98 (Prerefunded
2/1/98!) 160 165
New Jersey Transportation Trust
Fund Auth.
5.00%, 12/15/97 (Escrowed to
Maturity) 100 100
Total New Jersey (Cost $365) 365
NEW YORK 3.6%
Commack Union Free School Dist., TAN,
4.25%, 6/29/98 2,000 2,004
Manhasset Union Free School Dist.,
GO, TAN
4.25%, 6/30/98 1,000 1,003
New York City Municipal Water Fin.
Auth.
VRDN (Currently 3.75%) 2,000 2,000
Total New York (Cost $5,007) 5,007
NORTH CAROLINA 4.5%
Charlotte Airport, VRDN (Currently
3.70%) * 6,100 6,100
North Carolina Eastern Municipal
Power Agency
7.625%, 1/1/14 (AMBAC Insured)
(Prerefunded 1/1/98!) 120 123
7.875%, 1/1/19 (Prerefunded
1/1/98!) 100 103
Total North Carolina (Cost $6,326) 6,326
OHIO 1.4%
Ohio, GO, 4.50%, 2/1/98 1,275 1,277
Ohio Water Dev. Auth., 7.00%, 12/1/14
(Prerefunded 6/1/98!) 650 661
Total Ohio (Cost $1,938) 1,938
PENNSYLVANIA 4.2%
Pennsylvania, GO, 4.75%,
6/15/98 (MBIA Insured) $ 300 $ 301
Pennsylvania Higher Ed. Fac. Auth.,
Student Loan
VRDN (Currently 3.70%) * 5,200 5,200
Pennsylvania Intergovernmental
Cooperative Auth.
Philadelphia Funding
5.00%, 6/15/98 (FGIC Insured) 450 453
Total Pennsylvania (Cost $5,954) 5,954
SOUTH CAROLINA 2.4%
South Carolina, GO
Capital Improvements, 5.00%, 7/1/98 2,180 2,197
Clemson Univ., 5.25%, 6/1/98 410 413
Spartanburg County School District,
3.80%, 3/1/98 800 800
Total South Carolina (Cost $3,410) 3,410
SOUTH DAKOTA 2.6%
South Dakota HDA
VRDN (Currently 3.85%) * 2,700 2,700
Homeownership Mortgage, 3.75%,
11/13/97 1,000 1,000
Total South Dakota (Cost $3,700) 3,700
TENNESSEE 1.1%
Knoxville, GO, 4.25%, 5/1/98 540 541
Tennessee HDA, Homeownership, 3.75%,
2/19/98 * 1,000 1,000
Total Tennessee (Cost $1,541) 1,541
TEXAS 11.6%
Austin Utilities, 6.10%, 4/1/98
(Escrowed to Maturity) 50 51
Corpus Christi, 7.60%, 11/1/99
(Prerefunded 11/1/97!) 195 195
Gulf Coast IDA, Marine Terminal,
Amoco Oil
VRDN (Currently 4.25%) * 200 200
Gulf Coast Waste Disposal Auth., PCR,
Amoco Oil
VRDN (Currently 4.25%) * 3,400 3,400
Houston Airport, TECP, 3.80%,
1/23/98 * $ 3,000 $ 3,000
Houston Water and Sewer
VRDN (Currently 3.80%) 2,000 2,000
8.00%, 12/1/07 (Prerefunded
12/1/97!) 100 102
San Antonio Electric and Gas,
5.00%, 2/1/98 350 351
Texas, GO, TRAN, 4.75%, 8/31/98 7,000 7,053
Total Texas (Cost $16,352) 16,352
UTAH 6.0%
Salt Lake City, Airport, VRDN
(Currently 3.70%) 2,000 2,000
Salt Lake County, Kennecott / RTZ Corp.
Solid Waste Disposal
VRDN (Currently 3.80%) * 5,400 5,400
Utah Board of Regents, Student Loan
VRDN (Currently 3.70%) (AMBAC
Insured) * 1,000 1,000
Total Utah (Cost $8,400) 8,400
VERMONT 0.0%
Vermont, GO, 6.90%, 10/1/98 20 21
Total Vermont (Cost $21) 21
VIRGINIA 15.2%
Alexandria IDA, Ogden Martin, VRDN
(Currently 4.10%) * 1,400 1,400
Capital Region Airport Commission,
Richmond Int'l. Airport
VRDN (Currently 3.70%) (AMBAC
Insured) * 2,700 2,700
Hampton IDA, Sentara Health,
5.00%, 11/1/97 400 400
Harrisonburg Redev. and Housing Auth.
Mallside Forest Apartments
5.00%, 11/14/97 (Escrowed to
Maturity) * 5,000 5,000
Metropolitan Washington DC Airport Auth.
Virginia General Airport
VRDN (Currently 3.65%) * 3,700 3,700
Richmond Public Utilities
8.00%, 1/15/18 (Prerefunded
1/15/98!) 75 77
Richmond Redev. and Housing Auth.,
Richmeade
4.50%, 11/27/97 (Escrowed to
Maturity) * $ 4,550 $ 4,550
Virginia Port Auth., Port Fac.
VRDN (Currently 3.85%) (MBIA
Insured) * 3,000 3,000
Virginia Transportation Board
7.80%, 3/1/16 (Prerefunded
3/1/98!) 500 516
Total Virginia (Cost $21,343) 21,343
WASHINGTON 6.7%
Port of Seattle, VRDN (Currently
3.70%) * 6,000 6,000
Washington, GO
7.00%, 9/1/98 1,000 1,025
7.75%, 6/1/04 (Prerefunded
6/1/98!) 500 511
8.00%, 9/1/98 750 775
Motor Vehicle Fuel Tax, 6.50%,
7/1/98 225 229
Washington Public Power Supply
Nuclear Project
5.10%, 7/1/98 300 302
6.90%, 7/1/98 600 611
Total Washington (Cost $9,453) 9,453
WISCONSIN 0.5%
New Berlin, GO, 5.40%, 12/1/97 50 50
Wisconsin, 6.70%, 5/1/10 (Prerefunded
5/1/98!) 575 588
Total Wisconsin (Cost $638) 638
Total Investments in Securities
100.1% of Net Assets (Cost $140,652) $ 140,652
Other Assets Less Liabilities (95)
NET ASSETS $ 140,557
___________
Net Assets Consist of:
Paid-in-capital applicable to 140,557,375
shares of $0.0001 par value capital
stock outstanding; 1,000,000,000 shares
of the Corporation authorized $ 140,557
NET ASSETS $ 140,557
___________
NET ASSET VALUE PER SHARE $ 1.00
___________
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
DOT Department of Transportation
FGIC Financial Guaranty Insurance Company
GO General Obligation
HFA Health Facility Authority
IDA Industrial Development Authority
IDB Industrial Development Bond
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
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
October 31, 1997
Statement of Net Assets
Par Value
In thousands
ALABAMA 1.1%
Birmingham Airport Auth., 7.35%,
7/1/04 (AMBAC Insured) * $ 500 $ 538
Total Alabama (Cost $523) 538
CALIFORNIA 3.4%
California State Public Works Board,
Dept. of Corrections
6.00%, 11/1/05 (MBIA Insured) 250 275
Foothill / Eastern Transportation
Corridor Agency, Toll Road
Zero Coupon, 1/1/05 350 245
Los Angeles Unified School Dist., GO
6.00%, 7/1/10 (FGIC Insured) 500 556
San Joaquin Hills Transportation
Corridor Agency, Toll Road
Zero Coupon, 1/15/10 1,000 540
Total California (Cost $1,549) 1,616
COLORADO 1.5%
Denver City and County Airport
6.75%, 11/15/22 (MBIA Insured)
(Prerefunded 8/31/05!) * 120 135
6.75%, 11/15/22 (MBIA Insured) * 380 418
E-470 Public Highway Auth.
Zero Coupon, 8/31/26 (Prerefunded
8/31/05!) 1,000 147
Total Colorado (Cost $657) 700
CONNECTICUT 1.9%
Connecticut Dev. Auth., Mystic Marinelife
Aquarium
6.875%, 12/1/17 150 158
Mashantucket Western Pequot Tribe
5.60%, 9/1/09 200 204
5.70%, 9/1/12 500 509
Total Connecticut (Cost $851) 871
DISTRICT OF COLUMBIA 1.2%
Washington D.C. Metropolitan
Airport Auth.
6.625%, 10/1/12 (MBIA Insured) * 500 548
Total District of Columbia
(Cost $540) 548
FLORIDA 9.8%
Dade County, Resource Recovery Fac.
6.00%, 10/1/06 (AMBAC Insured) * $ 500 $ 548
Dade County School Board, COP
5.75%, 5/1/08 (MBIA Insured) 365 390
Dade County School Dist., GO
6.00%, 7/15/04 (MBIA Insured) 1,700 1,854
Florida Division of Bond Fin.
Dept. of Environmental Preservation
6.00%, 7/1/06 (MBIA Insured) 500 553
Hillsborough County IDA, PCR, Tampa
Electric
VRDN (Currently 4.25%) * 200 200
Indian Trace Community Dev. Dist.,
Water Management
5.50%, 5/1/07 (MBIA Insured) 500 535
Leesburg, Leesburg Regional Medical
Center, 5.20%, 7/1/02 500 515
Total Florida (Cost $4,402) 4,595
GEORGIA 3.3%
Coweta County Residential Care Fac. for
the Elderly Auth. Wesley Woods of
Newnan-Peachtree City
7.625%, 10/1/06 400 441
Municipal Electric Auth. of Georgia
6.00%, 1/1/07 (AMBAC Insured) 1,000 1,095
Total Georgia (Cost $1,477) 1,536
HAWAII 1.2%
Hawaii, Airport, 6.70%, 7/1/05 (MBIA
Insured) * 500 545
Total Hawaii (Cost $534) 545
ILLINOIS 6.0%
Chicago, GO, 5.75%, 1/1/05 (AMBAC
Insured) 660 707
Chicago-O'Hare Int'l. Airport
Int'l. Terminal
7.50%, 1/1/05 (Prerefunded
1/1/00!) * 50 54
7.50%, 1/1/05 (MBIA Insured)
(Prerefunded 1/1/00!) * 80 87
Chicago-O'Hare Int'l. Airport
Int'l. Terminal
7.50%, 1/1/05 * $ 110 $ 118
7.50%, 1/1/05 (MBIA Insured) * 170 184
Illinois HFA
Edward Obligation Group
5.00%, 2/15/09 (AMBAC Insured) 500 500
Glen Oaks Medical Center
9.50%, 11/15/15 (Escrowed to
Maturity) 75 88
Hinsdale Hosp.
7.00%, 11/15/19 (Escrowed to
Maturity) 260 302
Southwestern Illinois Dev. Auth.
Solid Waste Disposal, Shell Oil,
Wood River
VRDN (Currently 4.25%) * 800 800
Total Illinois (Cost $2,763) 2,840
IOWA 0.5%
Iowa Fin. Auth., Wesley Retirement,
6.25%, 2/1/12 250 250
Total Iowa (Cost $250) 250
KENTUCKY 2.8%
Carroll County, Solid Waste Disposal
Fac., Kentucky Utilities
VRDN (Currently 4.25%) * 100 100
Jefferson County, Alliance Health
5.125%, 10/1/17 (MBIA Insured) 800 781
Kentucky Property and Buildings
Commission
6.40%, 11/1/01 390 421
Total Kentucky (Cost $1,289) 1,302
LOUISIANA 0.4%
Plaquemines Parish, British Petroleum
VRDN (Currently 4.25%) * 100 100
Saint Charles Parish, PCR, Shell Oil
VRDN (Currently 4.25%) * 100 100
Total Louisiana (Cost $200) 200
MARYLAND 10.4%
Maryland Energy Fin. Administration
Wheelabrator Water Technologies
5.85%, 12/1/05 * $ 1,510 $ 1,601
Maryland HHEFA
Good Samaritan Hosp., 5.50%, 7/1/05 1,000 1,052
Univ. of Maryland Medical System
6.50%, 7/1/21 (FGIC Insured)
(Prerefunded 7/1/01!) 250 270
Northeast Maryland Waste Disposal Auth.
Montgomery County Resources
6.20%, 7/1/10 * 750 794
6.30%, 7/1/16 (MBIA Insured) * 500 537
7.10%, 1/1/03 (MBIA Insured) 550 617
Total Maryland (Cost $4,704) 4,871
MASSACHUSETTS 0.9%
Massachusetts, GO, 6.30%, 11/1/05 (FGIC
Insured) 250 278
Massachusetts Port Auth., 7.375%, 7/1/10
(FGIC Insured) * 135 147
Total Massachusetts (Cost $393) 425
MICHIGAN 5.2%
Greater Detroit Resource Recovery Auth.
6.25%, 12/13/05 (AMBAC Insured) 1,000 1,109
Michigan Hosp. Fin. Auth., Mercy
Health, 5.00%, 8/15/12 1,395 1,355
Total Michigan (Cost $2,409) 2,464
MISSISSIPPI 1.8%
Claiborne County, PCR, Systems Energy
Resources
9.875%, 12/1/14 300 325
Mississippi Business Fin., Solid Waste
Disposal
VRDN (Currently 3.75%) * 500 500
Total Mississippi (Cost $821) 825
NEW HAMPSHIRE 1.1%
New Hampshire Housing Fin. Auth.
Single Family
5.90%, 1/1/01 * $ 115 $ 119
5.90%, 7/1/01 * 115 119
6.00%, 7/1/02 * 125 129
6.10%, 1/1/03 * 130 135
Total New Hampshire (Cost $485) 502
NEW YORK 15.2%
Dormitory Auth. of the State of New York
City Univ., 6.875%, 7/1/14 (MBIA
Insured) 350 406
Mental Health Services Fac.,
6.00%, 2/15/06 1,500 1,620
Nyack Hosp., 6.00%, 7/1/06 250 265
State Univ. Ed. Fac.
5.00%, 5/15/12 1,000 975
7.40%, 5/15/01 150 163
Nassau County IDA, Hofstra Univ.,
6.70%, 1/1/09 250 282
New York City, GO, 5.00%, 11/15/08 ** 1,500 1,484
New York State Environmental Fac.
Corp., PCR
Water Revolving Fund
6.875%, 6/15/10 (Prerefunded
6/15/01!) 500 553
New York State Housing Fin. Agency
Service Contract Obligation, 5.85%,
9/15/09 300 316
New York State Mortgage Agency
Homeownership Mortgage,
5.80%, 10/1/06 * 500 524
Port Auth. of New York and New Jersey,
6.50%, 10/1/01 * 500 532
Total New York (Cost $6,820) 7,120
OHIO 0.6%
Fairfield Economic Dev. Auth., Beverly
Enterprises
8.50%, 1/1/03 250 273
Total Ohio (Cost $266) 273
PENNSYLVANIA 6.5%
Pennsylvania, GO
5.125%, 9/15/03 (AMBAC Insured) $ 1,000 $ 1,040
5.375%, 11/15/03 (FGIC Insured) 500 527
Pennsylvania Intergovernmental
Cooperative Auth.
Special Tax
7.00%, 6/15/04 (FGIC Insured)
(Escrowed to Maturity) 400 458
Philadelphia HHEFA, Childrens Hosp.,
5.25%, 2/15/06 1,000 1,035
Total Pennsylvania (Cost $2,982) 3,060
SOUTH CAROLINA 7.9%
South Carolina Public Service Auth.
6.25%, 1/1/05 (MBIA Insured) 1,350 1,489
6.50%, 7/1/24 (AMBAC Insured)
(Prerefunded 7/01/02!) 495 550
Santee Cooper, 5.75%, 1/1/22 (MBIA
Insured) 1,600 1,648
Total South Carolina (Cost $3,583) 3,687
TENNESSEE 0.5%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA Insured) * ** 200 222
Total Tennessee (Cost $209) 222
TEXAS 5.8%
Austin Airport, 5.75%, 11/15/08 (MBIA
Insured) * 500 537
Brazos Higher Ed. Auth., Student Loan,
5.95%, 6/1/02 * 500 523
Harris County, Toll Road
6.50%, 8/15/17 (AMBAC Insured)
(Prerefunded 8/15/02!) 750 834
Houston, Water and Sewer
7.00%, 12/1/03 (AMBAC Insured) 270 307
Tarrant County Health Fac. Dev., Texas
Health Resources
5.75%, 2/15/10 (MBIA Insured) 500 539
Total Texas (Cost $2,590) 2,740
VIRGINIA 8.6%
Alexandria IDA, Ogden Martin, VRDN
(Currently 4.10%) * $ 100 $ 100
Leesburg, Utilities
6.10%, 7/1/07 (MBIA Insured)
(Prerefunded 7/1/02!) 500 547
Virginia HDA
5.75%, 7/1/99 * 500 511
6.125%, 1/1/99 * 50 51
6.50%, 7/1/03 * 250 268
Virginia Port Auth., Port Fac.
VRDN (Currently 3.85%) (MBIA
Insured) * 2,000 2,000
Virginia Transportation Board
Northern Virginia Transportation Dist.
5.80%, 5/15/04 500 538
Total Virginia (Cost $3,936) 4,015
WASHINGTON 3.5%
Washington Health Care Fac. Auth.
Virginia Mason Medical Center
6.00%, 8/15/08 (MBIA Insured) 1,000 1,102
Washington Public Power Supply, 6.30%,
7/1/01
(FSA Insured) 500 534
Total Washington (Cost $1,608) 1,636
WEST VIRGINIA 4.0%
West Virginia Building Commission,
Lottery
5.00%, 7/1/04 (MBIA Insured) 1,850 1,902
Total West Virginia (Cost $1,868) 1,902
Total Investments in Securities
105.1% of Net Assets (Cost $47,709) $ 49,283
Other Assets Less Liabilities (2,377
)
NET ASSETS $ 46,906
___________
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 1
Accumulated net realized gain/loss -
net of distributions 158
Net unrealized gain (loss) 1,574
Paid-in-capital applicable to 4,464,107
shares of $0.0001 par value capital
stock outstanding; 1,000,000,000 shares
of the Corporation authorized 45,173
NET ASSETS $ 46,906
___________
NET ASSET VALUE PER SHARE $ 10.51
___________
* Interest subject to alternative minimum tax
** When-issued security
! 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
October 31, 1997
Statement of Net Assets
Par Value
In thousands
ALABAMA 2.0%
Baldwin County, Eastern Shore
Health Care Auth.
Thomas Hosp., 6.75%, 4/1/21 $ 200 $ 217
Jefferson County, Sewer, 5.625%,
2/1/22 (FGIC Insured) 250 256
Mobile IDB, Mobile Energy, 6.95%,
1/1/20 100 109
Total Alabama (Cost $542) 582
ALASKA 0.8%
Alaska Housing Fin., General Mortgage
Zero Coupon, 12/1/17
(MBIA Insured) 750 229
Total Alaska (Cost $222) 229
CALIFORNIA 5.9%
Foothill / Eastern Transportation
Corridor Agency
Toll Road, Zero Coupon, 1/1/26 500 101
Long Beach, Harbor, 5.25%, 5/15/25
(MBIA Insured) * 250 242
Los Angeles County Public Works
Fin. Auth.
Multiple Capital Fac.
5.125%, 12/1/17 (AMBAC Insured) 200 198
Rowland Heights, 5.50%, 10/1/18 (FSA
Insured) 145 150
Los Angeles Dept. of Water and Power,
Electric Plant
5.25%, 11/15/26 (MBIA Insured) 300 294
Placentia PFA, Special Tax,
6.60%, 9/1/15 100 103
Pomona Unified School Dist., GO
6.15%, 8/1/15 (MBIA Insured) 145 163
Saddleback Valley Unified School
Dist. PFA
Special Tax, Capital Appreciation
Zero Coupon, 9/1/18 (FSA Insured) 500 164
Santa Ana Housing Auth., Villa Del
Sol Apartments
5.65%, 11/1/21 * 300 313
Total California (Cost $1,623) 1,728
COLORADO 2.9%
E-470 Public Highway Auth.
Zero Coupon, 9/1/21 (MBIA Insured) 2,000 554
E-470 Public Highway Auth.
Zero Coupon, 8/31/26
(Prerefunded 8/31/05!) $ 2,000 $ 293
Total Colorado (Cost $807) 847
CONNECTICUT 1.8%
Connecticut Dev. Auth., Mystic
Marinelife Aquarium
7.00%, 12/1/27 200 210
Mashantucket Western Pequot Tribe,
5.75%, 9/1/27 300 303
Total Connecticut (Cost $490) 513
DELAWARE 1.1%
Delaware Economic Dev. Auth.
Peninsula United Methodist Homes,
6.30%, 5/1/22 300 308
Total Delaware (Cost $295) 308
DISTRICT OF COLUMBIA 0.4%
Washington D.C. Metropolitan Airport Auth.
8.10%, 10/1/08 (BIGI Insured) * 100 105
Total District of Columbia (Cost $104) 105
GEORGIA 4.8%
Athens Clarke Residential Care Fac. for
the Elderly Auth.
Wesley Woods of Athens, 6.375%,
10/1/27 200 201
Coweta County Residential Care Fac.
for the Elderly Auth.
Wesley Woods of Newnan-Peachtree City
8.20%, 10/1/16 215 248
Georgia Housing Fin. Auth.,
Single Family,
6.45%, 12/1/27 * 250 265
Municipal Electric Auth. of Georgia
Zero Coupon, 1/1/09 500 268
5.70%, 1/1/19 (MBIA Insured) 170 180
Rockdale County Dev. Auth., Solid
Waste Disposal
Visy Paper, 7.50%, 1/1/26 * 225 243
Total Georgia (Cost $1,326) 1,405
IDAHO 0.4%
Idaho Housing Agency, Single Family
6.60%, 7/1/27 (FHA Guaranteed) * $ 100 $ 106
Total Idaho (Cost $100) 106
ILLINOIS 9.8%
Chicago, GO, 5.50%, 1/1/18 (AMBAC
Insured) 250 255
Chicago - O'Hare Int'l. Airport,
Int'l. Terminal
7.50%, 1/1/17 (MBIA Insured) * 85 92
Chicago Board Of Ed., GO, Chicago School
Reform Board
5.75%, 12/1/20 (AMBAC Insured) 300 310
Illinois HFA
Community Hosp. of Ottawa,
6.85%, 8/15/24 200 216
Glen Oaks Medical Center
7.00%, 11/15/19 (Escrowed to Maturity) 145 168
9.50%, 11/15/15 (Escrowed to
Maturity) 75 88
Highland Park Hosp.
5.75%, 10/1/17 (MBIA Insured) 140 144
Holy Cross Hosp., 6.70%, 3/1/14 300 320
Loyola Univ. Health Systems
6.00%, 7/1/12 (MBIA Insured) 225 245
Southwestern Illinois Dev. Auth.,
Solid Waste Disposal
Shell Oil, Wood River, VRDN
(Currently 4.25%) * 800 800
Village of Carol Stream, DuPage County,
Windsor Park Manor
7.20%, 12/1/14 200 210
Total Illinois (Cost $2,724) 2,848
INDIANA 1.7%
Indiana State Office Building
Commission, Correctional Fac.
5.50%, 7/1/20 (AMBAC Insured) 500 502
Total Indiana (Cost $473) 502
IOWA 0.5%
Iowa Fin. Auth., Wesley Retirement,
6.25%, 2/1/12 160 160
Total Iowa (Cost $160) 160
KENTUCKY 1.2%
Jefferson County, Alliance Health
5.125%, 10/1/27 (MBIA Insured) $ 250 $ 239
Kenton County Airport Board, Delta
Airlines
7.50%, 2/1/20 * 100 110
Total Kentucky (Cost $338) 349
LOUISIANA 2.1%
Parish of Jefferson, GO, Drainage
Improvement
6.15%, 9/1/05 300 306
Plaquemines Parish, British Petroleum
VRDN (Currently 4.25%) * 300 300
Total Louisiana (Cost $605) 606
MARYLAND 5.1%
Maryland CDA
Single Family
7.25%, 4/1/19 * 140 150
7.375%, 4/1/26 * 90 93
Maryland Energy Fin. Administration
Wheelabrator Water Technologies
6.45%, 12/1/16 100 109
Maryland HHEFA, Johns Hopkins Univ.,
5.25%, 7/1/17 600 594
Northeast Maryland Waste Disposal Auth.
Montgomery County Resources, 6.20%,
7/1/10 * 500 529
Total Maryland (Cost $1,440) 1,475
MASSACHUSETTS 2.3%
Massachusetts HEFA, Melrose Wakefield
Healthcare
5.375%, 7/1/05 350 357
Massachusetts Port Auth.,
7.125%, 7/1/12 110 111
Massachusetts Turnpike Auth.
Metropolitan Highway Systems
Zero Coupon, 1/1/21 (MBIA
Insured) 750 218
Total Massachusetts (Cost $670) 686
MICHIGAN 0.7%
Dickinson County Economic Dev., Champion
Int'l
5.85%, 10/1/18 $ 200 $ 205
Total Michigan (Cost $200) 205
MISSISSIPPI 1.6%
Claiborne County, PCR, Systems Energy
Resources
7.30%, 5/1/25 150 159
Mississippi Hosp. Equipment and
Fac. Auth. Rush Medical Foundation,
6.00%, 1/1/22 200 201
Warren County, PCR, Mississippi Power
and Light
7.00%, 4/1/22 100 110
Total Mississippi (Cost $448) 470
NEVADA 1.6%
Clark County Airport Fac., McCarren
Int'l. Airport
6.00%, 7/1/17 (MBIA Insured) * 250 262
Clark County, IDR, Southwest Gas, 6.50%,
12/1/33 * 200 213
Total Nevada (Cost $430) 475
NEW HAMPSHIRE 2.5%
New Hampshire HHEFA, Wentworth Douglass
Hosp.
5.375%, 1/1/15 (MBIA Insured) 500 510
New Hampshire Housing Fin. Auth.,
Single Family
6.85%, 7/1/14 * 200 213
Total New Hampshire (Cost $698) 723
NEW JERSEY 7.5%
New Jersey Economic Dev. Auth., Evergreens,
6.00%, 10/1/17 130 131
New Jersey HFFA
Columbus Hosp., 7.50%, 7/1/21 350 376
Irvington General Hosp.
5.875%, 8/1/06 (FHA Guaranteed) 190 204
Kennedy Health, 5.00%, 7/1/12 500 486
Raritan Bay Medical Center,
7.25%, 7/1/27 100 107
New Jersey Housing and Mortgage Fin.
Agency
6.35%, 10/1/27 (MBIA Insured) * $ 250 $ 263
New Jersey Sports and Exposition Auth.,
Monmouth Park
8.00%, 1/1/25 100 112
New Jersey Wastewater Treatment Trust,
6.375%, 4/1/11 200 219
Rutgers, The State Univ.,
6.35%, 5/1/06 250 274
Total New Jersey (Cost $2,052) 2,172
NEW MEXICO 1.3%
Farmington, PCR
Public Service Co. of New Mexico
6.30%, 12/1/16 200 211
6.375%, 4/1/22 150 159
Total New Mexico (Cost $350) 370
NEW YORK 14.7%
Dormitory Auth. of the State of New York
Champlain Valley Physicians,
5.00%, 7/1/17 300 288
Nyack Hosp., 6.00%, 7/1/06 250 265
Erie County Water Auth.
Zero Coupon, 12/1/17 (AMBAC
Insured) 550 131
Nassau County IDA, Hofstra Univ.,
6.80%, 1/1/11 290 327
New York City, GO
5.25%, 8/1/21 500 473
6.25%, 8/1/09 350 379
New York City Municipal Water Fin. Auth.
Water and Sewer
5.00%, 6/15/17 (FGIC Insured) 100 97
5.25%, 6/15/29 300 291
6.00%, 6/15/09 200 219
New York State Energy Research and Dev.
Auth., PCR
New York Electric and Gas
6.15%, 7/1/26 (MBIA Insured) * 200 211
Rochester Gas and Electric, 5.95%,
9/1/33 * 500 512
New York State Environmental Fac., PCR
State Water Revolving Fund, 6.90%,
11/15/15 200 229
New York State Mortgage Agency
Homeowner Mortgage
6.45%, 10/1/17 $ 100 $ 107
6.625%, 4/1/25 * 100 108
7.50%, 4/1/26 * 250 272
New York State Urban Dev., State Fac.,
5.60%, 4/1/15 150 154
Port Auth. of New York and New Jersey,
6.50%, 10/1/01 * 200 213
Total New York (Cost $4,041) 4,276
NORTH CAROLINA 0.5%
Univ. of North Carolina, Zero
Coupon, 8/1/19 500 158
Total North Carolina (Cost $154) 158
OHIO 6.0%
Akron, Municipal Baseball Stadium, COP
Zero Coupon, 12/1/16 300 253
Dayton Special Fac., Emery Air
Freight, 6.05%, 10/1/09 250 266
Fairfield Economic Dev. Auth.,
Beverly Enterprises
8.50%, 1/1/03 100 109
Ohio Air Quality Dev. Auth., PCR,
Cleveland Electric
6.00%, 8/1/20 500 510
Ohio Housing Finance Agency,
Residential Mortgage
5.75%, 9/1/28 * 500 505
Ohio Water Dev. Auth., PCR, Toledo
Edison, 8.00%, 10/1/23 * 100 114
Total Ohio (Cost $1,684) 1,757
OKLAHOMA 0.6%
Tulsa Municipal Airport, American
Airlines, 7.375%, 12/1/20 * 150 163
Total Oklahoma (Cost $148) 163
PENNSYLVANIA 1.9%
Erie County IDA, Beverly Enterprises,
6.625%, 5/1/02 100 101
Philadelphia Airport Auth., 6.10%,
6/15/25 (AMBAC Insured) * 75 79
Philadelphia IDA, Girard Estate,
5.00%, 5/15/27 400 377
Total Pennsylvania (Cost $546) 557
PUERTO RICO 0.9%
Puerto Rico Highway and
Transportation Auth.
5.50%, 7/1/15 $ 250 $ 256
Total Puerto Rico (Cost $236) 256
SOUTH CAROLINA 0.7%
South Carolina Public Service
Auth., Santee Cooper
6.25%, 1/1/22 (AMBAC Insured) 200 217
Total South Carolina (Cost $202) 217
SOUTH DAKOTA 0.7%
South Dakota HDA, Homeownership,
6.65%, 5/1/14 185 198
Total South Dakota (Cost $185) 198
TENNESSEE 1.6%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA Insured) * 100 111
Metropolitan Gov't. of Nashville and
Davidson Counties
Mur-Ci Homes, 7.75%, 12/1/26 200 206
Tennessee Housing Dev. Agency,
Homeownership
Zero Coupon, 7/1/17 * 445 145
Total Tennessee (Cost $441) 462
TEXAS 5.6%
Amarillo Health Fac., Sears Panhandle
Retirement
7.75%, 8/15/26 200 215
Harris County, Toll Road
6.375%, 8/15/24 (MBIA Insured)
(Prerefunded 8/15/04!) 250 282
Texas, GO, Veterans Housing
Assistance, 6.25%, 12/1/15 125 129
Trinity River Auth., PCR, Texas
Utilities Electric
VRDN (Currently 4.25%) (AMBAC
Insured) * 1,000 1,000
Total Texas (Cost $1,557) 1,626
UTAH 4.1%
Carbon County, Solid Waste Disposal,
Laidlaw Environmental
7.45%, 7/1/17 (MBIA Insured) $ 200 $ 218
Intermountain Power Agency
5.00%, 7/1/23 500 467
5.75%, 7/1/16 (MBIA Insured) 500 521
Total Utah (Cost $1,157) 1,206
VIRGINIA 3.7%
Alexandria IDA, Ogden Martin,
VRDN (Currently 4.10%) * 100 100
Henrico County IDA, Bon Secours
Health
6.25%, 8/15/20 (MBIA Insured) 200 226
Newport News Redev. and Housing
Auth., 5.85%, 12/20/30 100 103
Peninsula Port Auth., Riverside
Health, 6.625%, 7/1/18 200 217
Virginia Ed. Loan Auth., Student Loan
5.55%, 9/1/10 (Prerefunded
3/1/06!) * 55 58
Virginia HDA
6.50%, 5/1/13 * 100 106
6.60%, 7/1/20 * 250 263
Total Virginia (Cost $1,019) 1,073
WASHINGTON 3.2%
Chelan County Public Utility Dist. No. 1
Columbia River-Rock Hydroelectric
Zero Coupon, 6/1/18
(MBIA Insured) 585 193
Tacoma, Solid Waste Utilities
5.50%, 12/1/17 (AMBAC Insured) 300 304
Washington Health Care Fac. Auth.
Virginia Mason Medical Center
6.00%, 8/15/08 (MBIA Insured) 400 441
Total Washington (Cost $895) 938
WISCONSIN 4.1%
Wisconsin HEFA
National Regency of New Berlin,
8.00%, 8/15/25 200 216
Wisconsin HEFA
Sinai Samaritan Medical Center
5.875%, 8/15/26 (MBIA Insured) $ 200 $ 206
Waukesha Memorial Hosp.
5.25%, 8/15/19 (AMBAC Insured) 300 292
Wisconsin Housing and Economic Dev. Auth.
Homeownership
6.20%, 3/1/27 * 200 207
6.45%, 9/1/27 * 250 264
Total Wisconsin (Cost $1,112) 1,185
WYOMING 0.7%
Wyoming CDA, 5.85%, 6/1/28 * 200 203
Total Wyoming (Cost $201) 203
Total Investments in Securities
107.0% of Net Assets (Cost $29,675) $ 31,139
Other Assets Less Liabilities (2,037)
NET ASSETS $ 29,102
_________
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 1
Accumulated net realized gain/loss -
net of distributions (58)
Net unrealized gain (loss) 1,464
Paid-in-capital applicable to 2,787,312
shares of $0.0001 par value capital
stock outstanding; 1,000,000,000 shares
of the Corporation authorized 27,695
NET ASSETS $ 29,102
_________
NET ASSET VALUE PER SHARE $ 10.44
_________
* Interest subject to alternative minimum tax
! 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
HHEFA Health & Higher Educational Facility 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
VRDN Variable Rate Demand Note
T. Rowe Price Summit Municipal Funds
Statement of Operations
In thousands
Money Inter-
Market mediate Income
Fund Fund Fund
Year Year Year
Ended Ended Ended
10/31/97 10/31/9710/31/97
Investment Income
Income
Interest income $ 4,345 $ 1,911 $ 1,213
Expenses
Investment management and
administrative 520 185 103
Net investment income 3,825 1,726 1,110
Realized and Unrealized
Gain (Loss)
Net realized gain (loss)
Securities - 317 218
Futures - 13 (66)
Net realized gain (loss) - 330 152
Change in net unrealized gain
or loss
Securities - 780 869
Futures - - 15
Change in net unrealized
gain or loss - 780 884
Net realized and unrealized
gain (loss) - 1,110 1,036
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 3,825 $ 2,836 $ 2,146
___________________________
The accompanying notes are an integral part of these financial statements.
<TABLE>
<CAPTION>
T. Rowe Price Summit Municipal Funds
Statement of Changes in Net Assets
In thousands
Money Market Fund Intermediate Fund Income Fund
Year Year Year
Ended Ended Ended
10/31/97 10/31/9610/31/9710/31/9610/31/9710/31/96
<C> <C> <C> <C> <C> <C>
Increase (Decrease)
in Net Assets
Operations
Net investment
income $ 3,825 $ 2,721 $ 1,726 $ 1,219 $ 1,110 $ 749
Net realized
gain (loss) - 1 330 160 152 101
Change in net
unrealized
gain or loss - (12) 780 (32) 884 90
Increase (decrease) in
net assets from
operations 3,825 2,710 2,836 1,347 2,146 940
Distributions to
shareholders
Net investment
income (3,825) (2,721) (1,726) (1,219) (1,110) (749)
Capital share
transactions*
Shares sold 166,033 126,457 23,381 12,096 17,972 8,604
Distributions
reinvested 3,552 2,457 1,184 765 581 351
Shares redeemed (125,292) (110,597) (7,944) (5,959) (6,396) (4,345)
Increase (decrease)
in net assets from
capital share
transactions 44,293 18,317 16,621 6,902 12,157 4,610
Net Assets
Increase (decrease)
during period 44,293 18,306 17,731 7,030 13,193 4,801
Beginning of period 96,264 77,958 29,175 22,145 15,909 11,108
End of period $ 140,557 $ 96,264 $ 46,906 $ 29,175 $ 29,102 $ 15,909
___________________________________________________________________________
*Share information
Shares sold 166,033 126,457 2,265 1,188 1,766 872
Distributions
reinvested 3,552 2,457 115 76 57 36
Shares redeemed (125,292) (110,597) (770) (587) (631) (442)
Increase (decrease)
in shares
outstanding 44,293 18,317 1,610 677 1,192 466
</TABLE>
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Funds
October 31, 1997
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 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.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
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 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.
Note 2 - Investment Transactions
Purchases and sales of portfolio securities, other than short-term
securities, for the year ended October 31, 1997, were as follows:
Intermediate Income
Fund Fund
__________________________________________________________
Purchases $ 34,831,000 $ 19,067,000
Sales 18,626,000 7,171,000
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. Capital loss carryforwards utilized by the Intermediate Fund in
1997 amounted to $169,000. The Income Fund has unused realized capital loss
carryforwards for federal income tax purposes of $31,000, of which $21,000
expires in 2002, and $10,000 in 2003. Capital loss carryforwards utilized by
the Income Fund in 1997 amounted to $193,000. Each fund intends to retain
gains realized in future periods that may be offset by available capital loss
carryforwards.
In order for each fund's capital accounts and distributions to shareholders
to reflect the tax character of certain transactions, the following
reclassifications were made during the year ended October 31, 1997. The
results of operations and net assets were not affected by the
increases/(decreases) to these accounts.
Intermediate Income
Fund Fund
__________________________________________________________
Undistributed net
investment income $ 1,000 $ 1,000
Undistributed net realized
gain (3,000)(2,000)
Paid-in-capital 2,000 1,000
For federal income tax purposes, the Money Market, Intermediate, and Income
Funds paid exempt-interest dividends of $3,689,000, $1,667,000, and
$1,058,000, respectively, during each fund's tax year ended October 31, 1997,
representing 100% of each fund's total income distributions paid. These
amounts may differ from amounts reported in the accompanying financial
statements due to differences in financial statement and federal income tax
reporting requirements.
At October 31, 1997, the aggregate costs of investments for the Money Market,
Intermediate, and Income Funds for federal income tax and financial reporting
purposes were $140,652,000, $47,709,000, and $29,675,000, 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 $ 1,574,000 $ 1,465,000
Depreciated investments - (1,000)
Net unrealized gain (loss)$ 1,574,000 $ 1,464,000
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 $37,000 and $7,000 were payable at October 31, 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 Summit Municipal Funds
Report of Independent Accountants
To the Board of Directors of T. Rowe Price
Summit Municipal Funds, Inc. and Shareholders of the
T. Rowe Price Summit Municipal Money Market Fund,
T. Rowe Price Summit Municipal Intermediate Fund and
T. Rowe Price Summit Municipal Income Fund
We have audited the accompanying statements of net assets of T. Rowe Price
Summit Municipal Funds, Inc. (which includes T. Rowe Price Summit Municipal
Money Market Fund, T. Rowe Price Summit Municipal Intermediate Fund and T.
Rowe Price Summit Municipal Income Fund), as of October 31, 1997, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the three years in the period then ended
and the period from October 29, 1993 (commencement of operations) to October
31, 1994. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
investments owned as of October 31, 1997, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights, referred
to above, present fairly, in all material respects, the financial position
of T. Rowe Price Summit Municipal Funds, Inc., as of October 31, 1997, the
results of their operations, the changes in their net assets, and their
financial highlights for the respective periods stated in the first
paragraph, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND, L.L.P.
Baltimore, Maryland
November 21, 1997
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.
T. Rowe Price Mutual Funds
Stock Funds
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications*
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons**
Real Estate
Science & Technology
Small-Cap Stock***
Small-Cap Value**
Spectrum Growth
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International
Bond Funds
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Insured
Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured
Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Government Bond
International Bond
Money Market Funds
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
Blended Asset Funds
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. Rowe Price No-Load
Variable Annuity
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Formerly the closed-end New Age Media Fund; converted to open-end
status on 7/28/97.
** Closed to new investors.
*** Formerly the OTC Fund.
Please call for a prospectus. Read it carefully before you invest or send
money.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued
by First Security Benefit Life Insurance Company of New York, White Plains,
NY. T. Rowe Price refers to the underlying portfolios' investment managers
and the distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price
Insurance Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The
Security Benefit Group of Companies and the T. Rowe Price companies are not
affiliated. The variable annuity may not be available in all states. The
contract has limitations. Call a representative for costs and complete
details of the coverage.
T. Rowe Price Discount Brokerage
Discount Brokerage
A Division of T. Rowe Price Investment Services, Inc., Member NASD/SIPC
This low-cost service gives you the opportunity to easily consolidate all
your investments with one company. Through T. Rowe Price Discount Brokerage,
you can buy and sell individual securities-stocks, bonds, options, and
others-at considerable commission savings over full-service brokers.* We also
provide a wide range of services, including:
Automated Telephone and Computer Services You can enter trades, access
quotes, and review account information 24 hours a day, seven days a week. Any
trades executed through these programs save you an additional 10% on
commissions.**
Investor Information A variety of informative reports, such as our Brokerage
Insights series, S&P Market Month newsletter, and select stock reports, can
help you better evaluate economic trends and investment opportunities.
Dividend Reinvestment Service Virtually all stocks held in customer accounts
are eligible for this service, free of charge.
* Based on a February 1997 telephone survey that compared our
commission rates on stock transactions of various sizes with those
of other full-service and discount brokerages. Commission rates
will vary based on size and nature of trades. Services vary by
firm. For additional information concerning our commission rates
and services, call 1-800-638-5660.
** Discount applies to our current commission schedule; subject to our
$35 minimum commission.
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.
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4200 West Cypress St.
10th Floor
Tampa, FL 33607
Invest With Confidence(registered trademark)
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor.
C09-050 10/31/97
Chart 1 - Municipal Bond and Note Yields - Municipal Bond and Note Yields
chart showing yields on 30- year AAA GO, five-year AAA GO, and one-year
Moody's Investment Grade 1 Note, 10/31/96 to 10/31/97
Chart 2 - Quality Diversification - pie chart showing AAA 5%, AA 39%, A 27%,
BBB 15%, BB 10%, B and Below 4%
Chart 3 - Performance Comparison - Summit Municipal Money Market Fund - A
line chart showing the cumulative growth of $10,000 invested in the ummit
Municipal Money Market Fund from inception compared with $10,000 invested in
a broad-based index or average over the same period.
Chart 4 - Performance Comparison - Summit Municipal Intermediate Fund - A
line chart showing the cumulative growth of $10,000 invested in the Summit
Municipal Intermediate Fund from inceptioncompared with $10,000 invested in
a broad-based index or average over the same period.
Chart 5 - Performance Comparison - Summit Municipal Income Fund - A line
chart showing the cumulative growth of $10,000 invested in the Summit
Municipal Income Fund from inception compared with $10,000 invested in a
broad-based index or average over the same period.
