Semiannual Report
Summit Municipal Funds
April 30, 2000
T. Rowe Price
Report Highlights
Summit Municipal Funds
o Despite three more Federal Reserve rate hikes, tax-free bond funds posted
modest gains during the six months ended April 30.
o All three Summit funds outperformed their Lipper categories, aided by
below-average expenses and portfolio management.
o The Summit Municipal Money Market Fund benefited from rising short-term
rates.
o Tax-exempt bond yields are attractive compared with Treasury bond yields,
even for investors in lower tax brackets.
o We expect the U.S. economy to eventually slow, at which time municipal
bonds-given current yield levels-could deliver strong total returns.
UPDATES AVAILABLE
For updates on T. Rowe Price funds following the end of each calendar quarter,
please see our Web site at www.troweprice.com.
Fellow Shareholders
Despite a persistently strong economy and three more rate hikes by the Federal
Reserve, higher-quality long-term bond prices firmed and yields were more stable
during the six months ended April 30. Long-term yields peaked in mid-January
after rising steadily for more than a year. Money market and some
intermediate-term yields, however, continued to rise in line with Fed policy. As
a result, the Summit bond funds provided higher income and modest total returns,
while the money fund's yield rose sharply.
MARKET ENVIRONMENT
Data released in the six months ended April 30 revealed astonishing
strength in the U.S. economy. GDP grew at a 6.9% rate in the fourth quarter
of 1999, and first-quarter GDP growth slowed only slightly, to 5.4%. Taken
together, in the last three calendar quarters the U.S. economy registered
its fastest nine-month growth spurt in 15 years. The Fed's tightening
program (begun June 30) and higher market interest rates apparently did
little to slow economic growth and defuse potential inflationary pressures.
Signs of rising wages and prices began to appear with economic reports
released in March and April.
Despite these developments, bond yields actually fell (and prices rose)
from late January to early April, aided by the Treasury Department's plans
to buy back long-term bonds and by reduced federal borrowing due to the
budget surplus. After peaking at about 6.75%, long-term Treasury yields
plunged well below 6% before returning to that level at the end of the
period. In fact, in the first three months of the year, 30-year Treasuries
posted their best quarterly returns in a decade as investors began to fear
a potential shortage. With short-term rates rising and long-term rates
falling, the Treasury yield curve became inverted-that is, yields on
long-term issues fell below those of short- and intermediate-term
securities. (The yield curve is a line plotting the yields on bonds from
short to long maturities.)
Tax-exempt bonds followed the Treasury market, but in a more muted fashion.
Municipal bond yields rose steadily through year-end and well into January,
when long-term bonds recovered. Tax-free yields then fell 30 to 40 basis
points through mid-April (100 basis points equal one percentage point). At
the same time, short-term rates rose in response to the Fed rate hikes. As
a result, the municipal yield curve flattened but did not invert. The
Lehman Municipal Bond Index rose 2.92% in the first quarter, its best
performance since the summer of 1998. So far in 2000, the municipal market
benefited from relatively light new issuance, down nearly 30% through April
from the same period last year. At the same time, bond-fund demand was weak
as investors directed cash to money market funds and the stock market.
Lower-quality bonds also suffered as investors demanded more yield to
compensate for higher risk. This is ultimately a healthy development after
a period of very narrow yield spreads because the market appears to be
pricing risk more ration-ally. (A yield spread is the yield advantage of
lower-quality bonds over higher-quality issues, and is a measure of both
risk and opportunity.)
By the end of the six-month period, rates were moving higher again. The
euphoria in the Treasury market subsided during tax season amid concerns
about more aggressive Fed tightening. Municipal note and bond yields also
began to rise again, but to a lesser degree.
SUMMIT MUNICIPAL MONEY MARKET FUND
Your fund returned 1.69% and 3.17%, respectively, for the 6- and 12-month
periods ended April 30, as shown in the table. Both results exceeded those
of the Lipper Tax-Exempt Money Market Funds Average, aided by portfolio
management and lower-than-average expenses. The Summit Municipal Money
Market Fund's performance has consistently ranked in the top 25% of its
peer group. For the 12 months ended April 30, the Summit Municipal Money
Market Fund's performance ranked 15th out of 138 tax-exempt money market
funds, according to Lipper Inc. For the five-year period ended April 30,
the fund's performance ranked 11th out of 114 funds.
Performance Comparison
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Periods Ended 4/30/00 6 Months 12 Months
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Summit Municipal Money
Market Fund 1.69% 3.17%
Lipper Tax-Exempt
Money Market Funds Average 1.54 2.91
The Fed increased its key federal funds target rate three times by a total
of 75 basis points in the six months under review. During that period,
short-term municipal yields (3- to 12-month maturities) rose only 40 basis
points. The more subdued rise in municipal note yields was largely the
result of a substantial decline in issuance. The surging economy and
increase in local tax revenues drastically reduced municipalities'
short-term borrowing needs at a time when demand for such securities was
rising.
Throughout the past six months, we maintained a weighted average maturity
somewhat longer than that of our peers. As of April 30, the fund's average
maturity was 51 days, compared with 56 days on October 31. The average
maturity of competing funds fell to 37 from 52 days. Our more aggressive
posture allowed us to take advantage of higher yields in the 6- to 12-month
maturity range. For example, the average yield of a one-year security was
50 basis points more than that of a very short-term variable rate demand
note. That yield advantage was more than twice as great as it had been in
the previous six-month period. Over the near term, we expect to shorten
maturities because of the potential for more severe rate hikes by the Fed.
Additionally, a sharp increase in one- to seven-day variable rate note
yields at the end of April has created opportunities to invest in the
shortest end of the yield curve and boost yield. This recent spike in
variable rate yields is reflected in the fund's seven-day yield, which rose
to 4.15% on April 30 from 3.10% six months ago, as shown in the table on
page 8. That is equivalent to a 6.48% pretax yield for investors in the 36%
federal income tax bracket.
SUMMIT MUNICIPAL INTERMEDIATE FUND
While absolute returns were modest for the recent period and negative for
the 12 months, the Summit Municipal Intermediate Fund outperformed the
Lipper Intermediate Municipal Debt Funds Average for both periods ended
April 30, as shown in the table. The favorable results versus competitors
were aided by our portfolio management, our focus on yield, and our
below-average expense ratio (which placed the fund in the lowest expense
quartile of the Lipper Intermediate Municipal Debt Funds Average).* Despite
the improved tone of the long-term bond market, intermediate-term bond
prices were flat to negative as interest rates on these maturities were
unchanged to higher. The fund's share price declined from $10.12 on October
31 to $10.07. Our modest return during the period was provided entirely by
income. Dividends per share for the past six months increased to $0.24 from
$0.23 in the prior six months, as shown in the table on page 8. Our
dividend yield for the most recent period rose to 4.79% from 4.59%. That is
equivalent to a pretax yield of 7.48% for an investor in the 36% federal
income tax bracket.
Performance Comparison
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Periods Ended 4/30/00 6 Months 12 Months
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Summit Municipal
Intermediate Fund 1.88% -0.83%
Lipper Intermediate Municipal
Debt Funds Average 1.65 -1.17
The fund's duration posture remained at the short, or more defensive, end
of our range for much of the period. (Duration measures a bond fund's
sensitivity to interest rates. For example, a fund with a duration of five
years will rise about 5% in price in response to a one-percentage- point
decline in rates and fall 5% in response to a one-percentage-point increase
in rates.) More recently, we increased duration slightly to a more neutral
posture (to 5.5 years as of April 30 from 5.4 years six months ago) to take
advantage of the highest yields in the tax-free intermediate market since
1995. We accomplished this by selling some short-intermediate term issues
and buying bonds in the 10- to 15-year maturity range.
Since the fund's inception in 1993, we have tended to overweight higher
yielding sectors of the market, believing that above-average income, over
time, will enhance performance more than changes in principal value. As
rising rates caused declining bond prices over the past year, we took tax
losses on some higher-quality bonds and reinvested the proceeds at higher
yields, modestly increasing our position in low investment-grade bonds
(such as those rated A or BBB). This tax-loss swapping helped us increase
shareholder income. As these lower-rated bonds underperformed, especially
late last year and early this year, we purchased more to capture their
growing yield advantages. Our purchases were focused in hospital and
industrial development revenue bonds, while sales were concentrated in the
state general obligation sector. Our approach remains balanced and
diversified. While our positions in lower-quality bonds have recently
detracted from performance, we expect that longer term their higher income
will benefit shareholders and the fund.
* For the 12 months ended April 30, the Summit Municipal Intermediate
Fund's expenses totaled 0.50%, compared with an average of 0.93% for the
Lipper Intermediate Municipal Debt Funds Average. Based on total expenses,
the fund ranked 116th out of 129 intermediate municipal debt funds (which
means 115 comparable funds had higher expenses), according to Lipper.
While Fed rate hikes create a challenging environment for bond investors,
they do have a silver lining-higher bond yields. Going forward, we will
continue to focus on extending duration to lock in these higher yields.
Summit Municipal Income Fund
The Summit Municipal Income Fund returned 2.42% in the six months ended
April 30, exceeding the return of the Lipper General Municipal Debt Funds
Average, as shown in the table. Likewise, the fund's loss in the difficult
bond market of the past 12 months was more limited than that of the peer
group average. Our investment strategy and lower-than-average expense ratio
aided results in both periods. The fund's net asset value dropped slightly
over the past six months, to $9.86 from $9.88 on October 31, so performance
derived exclusively from coupon income. Dividends per share rose in the
period, to $0.26 from $0.25 six months ago. As a result, the six-month
dividend yield increased to 5.26% from 5.03% last fall, equivalent to a
taxable yield of 8.22% for an investor in the 36% tax bracket.
Performance Comparison
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Periods Ended 4/30/00 6 Months 12 Months
--------------------------------------------------------------------------------
Summit Municipal
Income Fund 2.42% -2.67%
Lipper General Municipal
Debt Funds Average 2.05 -3.31
With interest rates on the rise over the past year, the fund's duration
posture was defensive at 7.6 years as of October 31. (Duration is a measure
of a bond fund's sensitivity to interest rates. For example, a fund with a
duration of eight years would fall or rise about 8% in price in response to
a one percentage-point rise or fall in interest rates. A bond's duration is
typically much shorter than its stated maturity.) Our strategy was to
extend duration during market weakness toward the end of 1999 and to take
advantage of higher market yields throughout 2000. We increased the fund's
duration to 8.4 years, as shown in the table on page 9, by selling bonds in
the 10- to 15-year maturity range and buying those in the 20-year range.
This move boosted performance as long-term bonds performed well after
mid-January.
Quality Diversification
--------------------------------------------------------------------------------
AA A BBB AAA BB B and Below
43 18 15 12 10 2
Based on net assets as of 4/30/00.
In terms of credit strategy, we increased holdings of housing bonds, which
offer good yields and reduced price volatility. Exposure to the public
power revenue sector was increased, based on our credit research, as we
expect certain bonds in the sector that are now out of favor to outperform
going forward. Average credit quality was unchanged from six months ago at
A+. Despite some deterioration in the high-yield market, we maintained a
27% exposure to bonds rated BBB or lower. Hospital bonds rebounded after
underperforming last year. The fund's largest sector weightings were
hospital bonds and housing bonds at 12% each.
Going forward, we expect to maintain a neutral duration posture until the
Fed appears to be nearing the end of its rate hike program and the economy
shows signs of slowing growth. In the meantime, we will focus on taking
steps to improve shareholder income, including selling bonds at losses and
reinvesting the proceeds in new issues with higher coupons. These losses
may be used to offset future realized capital gains, helping to make the
fund more tax-efficient.
OUTLOOK
Economic growth does not yet show signs of slowing to a pace the Federal
Reserve would prefer. First-quarter GDP growth and subsequent reports for
the month of April point to continued strong consumer demand and
ever-tightening labor markets. Cost pressures have been mounting, and the
Fed is concerned that they will be reflected in higher inflation. As a
result, the central bank has begun taking more aggressive steps, beginning
with its half-point rate hike on May 16 (which followed four quarter-point
hikes). In anticipation, long-term bond yields began trending up again in
mid-April. As long as accelerating inflation remains a threat, the Fed is
likely to follow its latest rate hike with even more, probably of the same
magnitude (a half percentage point), in the months ahead.
The Fed's drive to rein in the economy may continue to put downward
pressure on municipal bond prices in the near term, but the tightening
cycle should be over by year-end and perhaps as soon as early autumn. Once
signs of slower growth are evident, the bond markets should turn more
positive. Tax-free bonds are entering a typically strong seasonal demand
period, which, combined with light supply, may offset some of the effects
of the Fed's tightening. Yields on municipal bonds are attractive compared
with Treasury bond yields, and should be appealing even to investors in
lower tax brackets.
Respectfully submitted,
Mary J. Miller
Director, Municipal Bond Department
May 19, 2000
T. Rowe Price Summit Municipal Funds
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Portfolio Highlights
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KEY STATISTICS
10/31/99 4/30/00
Summit Municipal Money Market Fund
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Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months 0.014 0.017
For 12 months 0.029 0.031
Dividend Yield (7-Day Compound) * 3.10% 4.15%
Weighted Average Maturity (days) 56 51
Weighted Average Quality ** First Tier First Tier
Summit Municipal Intermediate Fund
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Price Per Share $ 10.12 $ 10.07
Dividends Per Share
For 6 months 0.23 0.24
For 12 months 0.46 0.47
Dividend Yield *
For 6 months 4.59% 4.79%
For 12 months 4.70 4.75
30-Day Standardized Yield 4.67 4.95
Weighted Average Effective Maturity (years) 6.9 7.1
Weighted Average Effective Duration (years) 5.4 5.5
Weighted Average Quality *** A+ A+
(continued on next page)
T. Rowe Price Summit Municipal Funds
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Portfolio Highlights
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KEY STATISTICS
10/31/99 4/30/00
Summit Municipal Income Fund
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Price Per Share $ 9.88 $ 9.86
Dividends Per Share
For 6 months 0.25 0.26
For 12 months 0.49 0.50
Dividend Yield *
For 6 months 5.03% 5.26%
For 12 months 5.10 5.21
30-Day Standardized Yield 5.07 5.38
Weighted Average Maturity (years) 13.9 15.8
Weighted Average Effective Duration (years) 7.6 8.4
Weighted Average Quality *** A+ A+
* Dividends earned and reinvested for the periods indicated are annualized
and divided by the fund's net asset value per share at the end of the
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
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Portfolio Highlights
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SECTOR DIVERSIFICATION
Percent of Percent of
Net Assets Net Assets
10/31/99 4/30/00
Summit Municipal Money Market Fund
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Air and Sea Transportation Revenue 21% 23%
Educational Revenue 18 15
Industrial and Pollution Control Revenue 18 13
Housing Finance Revenue 7 11
Prerefunded Bonds 5 10
General Obligation - State 8 9
Electric Revenue 7 5
General Obligation - Local 7 4
Lease Revenue -- 4
Escrowed to Maturity 2 2
All Other 7 2
Other Assets Less Liabilities -- 2
Total 100% 100%
(continued on next page)
T. Rowe Price Summit Municipal Funds
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Portfolio Highlights
SECTOR DIVERSIFICATION
Percent of Percent of
Net Assets Net Assets
10/31/99 4/30/00
Summit Municipal Intermediate Fund
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Hospital Revenue 11% 14%
General Obligation - Local 12 12
Electric Revenue 9 11
Solid Waste Revenue 9 8
Industrial and Pollution Control Revenue 6 8
General Obligation - State 9 6
Air and Sea Transportation Revenue 7 6
Dedicated Tax Revenue 4 6
Lease Revenue 5 5
Nuclear Revenue 4 4
Housing Finance Revenue 4 4
Life Care/Nursing Home Revenue 5 4
Water and Sewer Revenue 4 4
Escrowed to Maturity 3 3
Prerefunded Bonds 3 3
All Other 6 2
Other Assets Less Liabilities -1 --
Total 100% 100%
(continued on next page)
T. Rowe Price Summit Municipal Funds
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Portfolio Highlights
SECTOR DIVERSIFICATION
Percent of Percent of
Net Assets Net Assets
10/31/99 4/30/00
Summit Municipal Income Fund
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Housing Finance Revenue 7% 12%
Hospital Revenue 12 12
Nuclear Revenue 5 9
Air and Sea Transportation Revenue 6 8
Dedicated Tax Revenue 3 7
Lease Revenue 9 7
Industrial and Pollution Control Revenue 11 7
General Obligation - Local 8 7
Solid Waste Revenue 9 5
Life Care/Nursing Home Revenue 7 5
Water and Sewer Revenue 5 5
Escrowed to Maturity 3 4
Educational Revenue 5 3
Ground Transportation Revenue 6 3
Prerefunded Bonds 3 3
General Obligation - State 3 2
All other 2 2
Other Assets Less Liabilities -4 -1
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Total 100% 100%
T. Rowe Price Summit Municipal Funds
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Performance Comparison
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These charts show the value of a hypothetical $25,000 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 benchmarks, which may
include a broad-based market index and a peer group average or index.
Market indexes do not include expenses, which are deducted from fund
returns as well as mutual fund averages and indexes.
SUMMIT MUNICIPAL MONEY MARKET FUND
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Summit
Summit Municipal
Municipal Money
Money Market Market
Funds Average Fund
10/29/93 2,5000 2,5000
4/30/94 2,5235 2,5253
4/95 2,5948 2,6033
4/96 2,6783 2,6930
4/97 2,7573 2,7798
4/98 2,8435 2,8743
4/99 2,9223 2,9625
4/30/00 3,0078 3,0564
SUMMIT MUNICIPAL INTERMEDIATE FUND
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Lehman Lipper Summit
7-Year Intermediate Municipal
Municipal Municipal Debt Intermediate
Bond Index Funds Average Fund
10/29/93 2,5000 2,5000 2,5000
4/30/94 2,4460 2,4061 2,4828
4/95 2,5892 2,5399 2,6319
4/96 2,7855 2,7109 2,8285
4/97 2,9344 2,8565 2,9963
4/98 3,1644 3,0694 3,2345
4/99 3,3793 3,2531 3,4466
4/30/00 3,3782 3,2198 3,4179
SUMMIT MUNICIPAL INCOME FUND
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Lehman Summit
Municipal Lipper General Municipal
Bond Municipal Debt Income
Index Funds Average Fund
10/29/93 2,5000 2,5000 2,5000
4/30/94 2,4117 2,3850 2,4120
4/95 2,5721 2,5253 2,5735
4/96 2,7765 2,6975 2,7798
4/97 2,9360 2,8690 3,0130
4/98 3,2360 3,1323 3,3450
4/99 3,4608 3,3173 3,5693
4/30/00 3,4290 3,2058 3,4739
Average Annual Compound Total Return
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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 4/30/00 1 Year 3 Years 5 Years Inception Date
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Summit Municipal Money
Market Fund 3.17% 3.21% 3.26% 3.14% 10/29/93
Summit Municipal
Intermediate Fund -0.83 4.49 5.37 4.93 10/29/93
Summit Municipal Income Fund -2.67 4.86 6.18 5.19 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, as
their principal value will fluctuate.
Investments in the money fund are not insured or guaranteed by the FDIC or any
other government agency. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
fund.
T. Rowe Price Summit Municipal Money Market Fund
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Unaudited
Financial Highlights For a share outstanding throughout each period
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6 Months Year
Ended Ended
4/30/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
NET ASSET VALUE
Beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Investment
activities
Net investment
income (loss) 0.017 0.029 0.032 0.033 0 .032 0.035
Distributions
Net investment
income (0.017) (0.029) (0.032) (0.033) (0.032) (0.035)
NET ASSET VALUE
End of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
-----------------------------------------------------------
Ratios/
Supplemental Data
Total return (diamond) 1.69% 2.90% 3.27% 3.37% 3.28% 3.53%
Ratio of total
expenses to
average net assets 0.45%! 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of net
investment income
(loss) to average
net assets 3.37%! 2.87% 3.23% 3.31% 3.23% 3.48%
Net assets,
end of period
(in thousands) $204,266 $185,305 $170,924 $ 140,557 $96,264 $77,958
(diamond) Total return reflects the rate that an investor would have
earned on an investment in the fund during each period, assuming
reinvestment of all distributions.
! Annualized
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Intermediate Fund
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Unaudited
Financial Highlights For a share outstanding throughout each period
--------------------------------------------------------------------------------
6 Months Year
Ended Ended
4/30/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
NET ASSET VALUE
Beginning of period $10.12 $10.70 $10.51 $10.22 $10.17 $9.59
Investment
activities
Net investment
income (loss) 0.24 0.46 0.48 0.49 0.48 0.48
Net realized
and unrealized
gain (loss) (0.05) (0.56) 0.23 0.29 0.05 0.58
Total from
investment
activities 0.19 (0.10) 0.71 0.78 0.53 1.06
Distributions
Net investment
income (0.24) (0.46) (0.48) (0.49) (0.48) (0.48)
Net realized
gain - (0.02) (0.04) - - -
Total
distributions (0.24) (0.48) (0.52) (0.49) (0.48) (0.48)
NET ASSET VALUE
End of period $10.07 $10.12 $10.70 $10.51 $10.22 $10.17
-----------------------------------------------------------
Ratios/
Supplemental Data
Total return(diamond) 1.88% (0.96)% 6.89% 7.78% 5.39% 11.39%
Ratio of total
expenses to
average net assets 0.50%! 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net
investment income
(loss) to average
net assets 4.72%! 4.43% 4.51% 4.67% 4.77% 4.93%
Portfolio
turnover rate 45.0%! 38.5% 22.2% 53.8% 72.9% 86.1%
Net assets,
end of period
(in thousands) $79,723 $83,794 $75,928 $46,906 $29,175 $22,145
(diamond) Total return reflects the rate that an investor would have
earned on an investment in the fund during each period, assuming
reinvestment of all distributions.
! Annualized
T. Rowe Price Summit Municipal Income Fund
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Unaudited
Financial Highlights For a share outstanding throughout each period
--------------------------------------------------------------------------------
6 Months Year
Ended Ended
4/30/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
NET ASSET VALUE
Beginning of period $9.88 $10.79 $10.44 $9.97 $9.84 $9.08
Investment activities
Net investment
income (loss) 0.26 0.49 0.51 0.55 0.54 0.54
Net realized
and unrealized
gain (loss) (0.02) (0.86) 0.35 0.47 0.13 0.76
Total from
investment
activities 0.24 (0.37) 0.86 1.02 0.67 1.30
Distributions
Net investment
income (0.26) (0.49) (0.51) (0.55) (0.54) (0.54)
Net realized
gains - (0.05) - - - -
Total
distributions (0.26) (0.54) (0.51) (0.55) (0.54) (0.54)
NET ASSET VALUE
End of period $9.86 $9.88 $10.79 $10.44 $9.97 $9.84
-----------------------------------------------------------
Ratios/
Supplemental Data
Total return (diamond) 2.42% (3.58)% 8.44% 10.54% 7.04% 14.68%
Ratio of total
expenses to
average net assets 0.50%! 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net
investment income
loss) to average
net assets 5.21%! 4.71% 4.82% 5.38% 5.51% 5.68%
Portfolio
turnover rate 60.6%! 79.7% 48.1% 35.7% 56.7% 73.7%
Net assets,
end of period
(in thousands) $68,960 $72,558 $65,958 $29,102 $15,909 $11,108
(diamond) Total return reflects the rate that an investor would have
earned on an investment in the fund during each period, assuming
reinvestment of all distributions.
! Annualized
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Money Market Fund
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Unaudited April 30, 2000
Statement of Net Assets Par Value
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In thousands
ALABAMA 0.5%
Alabama, GO, 5.50%, 10/1/00 $ 810 $ 814
Huntsville, GO, 5.15%, 8/1/00 250 251
Total Alabama (Cost $1,065) 1,065
ARIZONA 0.1%
Salt River Agricultural Improvement and Power Dist.
Electric System
6.50%, 1/1/22 (FSA Insured)
(Prerefunded 1/1/01!) 100 103
Total Arizona (Cost $103) 103
ARKANSAS 0.6%
Arkansas Dev. Fin. Auth., Single Family Mortgage
4.30%, 3/1/01 * 1,300 1,300
Total Arkansas (Cost $1,300) 1,300
CONNECTICUT 0.6%
Connecticut
Special Tax Refund, 5.50%, 10/1/00 225 226
Unemployment Compensation
5.50%, 5/15/00 (AMBAC Insured) 60 60
Connecticut, GO
4.50%, 5/15/00 200 200
5.50%, 10/15/00 200 201
6.30%, 8/1/00 100 101
Connecticut HEFA, Yale-New Haven Hosp.
7.10%, 7/1/25 (MBIA Insured)
(Prerefunded 7/1/00!) 105 108
Connecticut Special Tax Obligation, 4.625%, 9/1/00 250 250
Total Connecticut (Cost $1,146) 1,146
DELAWARE 0.6%
Delaware, GO
5.00%, 7/1/00 $ 250 $ 250
6.85%, 5/1/00 1,000 1,000
Total Delaware (Cost $1,250) 1,250
DISTRICT OF COLUMBIA 2.5%
Dist. of Columbia
6.60%, 6/1/03 (Prerefunded 6/1/00!) 395 404
7.20%, 6/1/01 (FSA Insured)
(Prerefunded 6/1/00!) 300 307
Dist. of Columbia, GO
5.30%, 6/1/00 (Escrowed to Maturity) 25 25
6.70%, 6/1/04 (Prerefunded 6/1/00!) 245 250
Metropolitan Washington Airports Auth. TECP
4.75%, 5/25/00 1,600 1,600
5.25%, 10/1/00 * 2,445 2,456
Total District of Columbia (Cost $5,042) 5,042
FLORIDA 1.1%
Dade County Water and Sewer, Water and Sewer Systems
5.00%, 10/1/00 (FGIC Insured) 325 326
Florida Board of Ed., GO
Public Ed. Capital Outlay
7.25%, 6/1/23 (Prerefunded 6/1/00!) 900 920
Florida DOT, Turnpike Auth.
9.50%, 7/1/00 (AMBAC Insured) 455 459
Hillsborough County, Capital Improvement
5.00%, 8/1/00 (FGIC Insured)
(Escrowed to Maturity) 500 501
Jacksonville Electric Auth., Bulk Power Supply
6.75%, 10/1/21 (Prerefunded 10/1/00!) 40 41
Orlando and Orange County Expressway Auth.
4.70%, 7/1/00 (FGIC Insured) 100 100
Total Florida (Cost $2,347) 2,347
GEORGIA 3.8%
Georgia, GO, 4.375%, 7/1/00 $250 $250
Metropolitan Atlanta Rapid Transit Auth.
4.90%, 7/1/00 (AMBAC Insured) 800 801
Savannah Economic Dev. Auth.
Home Depot
VRDN (Currently 5.15%) * 2,250 2,250
VRDN (Currently 5.20%) * 4,400 4,400
Total Georgia (Cost $7,701) 7,701
HAWAII 0.0%
Honolulu, GO, 6.90%, 6/1/00 (Escrowed to Maturity) 50 50
Total Hawaii (Cost $50) 50
ILLINOIS 8.9%
Chicago Gas Supply, VRDN (Currently 5.08%) * 2,500 2,500
Illinois
5.75%, 6/15/00 (Escrowed to Maturity) 100 100
Sales Tax, 5.30%, 6/15/00 500 501
Illinois HDA, 3.65%, 7/27/00 * 1,000 1,000
Illinois Student Assistance Commission, Student Loan
VRDN (Currently 5.10%) * 5,500 5,500
VRDN (Currently 5.10%) * (MBIA Insured) 2,700 2,700
Lake County, PCR, W.W. Grainger,
VRDN (Currently 5.10%) * 1,500 1 ,500
Will County, Exxon Mobil
VRDN (Currently 6.10%) 4,400 4,400
Total Illinois (Cost $18,201) 18,201
INDIANA 8.3%
Gibson County PCR, Toyota Motor Credit
VRDN (Currently 5.10%) * 7,000 7,000
Indiana Univ., 6.90%, 8/1/03 (Prerefunded 08/01/00!) 350 360
Indianapolis Airport Auth., TECP,
Gas Utility, 4.10%, 8/14/00 3,000 3 ,000
Indianapolis Local Public Improvement Bond Bank
7.40%, 7/1/20 (Prerefunded 7/1/00!) 60 61
Petersburg, Solid Waste Disposal
Indianapolis Power and Light
VRDN (Currently 5.15%) * $ 300 $ 300
VRDN (Currently 5.25%) * 6,300 6,300
Total Indiana (Cost $17,021) 17,021
KANSAS 0.4%
Wichita, GO, Temporary Improvement, 4.747%, 4/26/01 900 903
Total Kansas (Cost $903) 903
KENTUCKY 1.4%
Kentucky Turnpike Auth.
Economic Dev.
7.25%, 5/15/10 (Prerefunded 5/15/00!) 335 340
7.25%, 5/15/20 (Prerefunded 5/15/00!) 1,000 1,017
Revitalization Project
7.25%, 5/15/02 (Prerefunded 05/15/00!) 500 508
Louisville and Jefferson County Sewer Dist.
Metropolitan Sewer Dist.
7.35%, 5/1/19 (FGIC Insured)
(Prerefunded 5/1/00!) 1,000 1,020
Total Kentucky (Cost $2,885) 2,885
LOUISIANA 4.4%
Lake Charles Louisiana Harbor and Dist., Conoco
VRDN (Currently 5.10%) * 2,000 2,000
Louisiana, GO
6.00%, 8/1/00 (FGIC Insured) 850 854
7.125%, 9/1/10 (Prerefunded 9/1/00!) 760 782
New Orleans Aviation Board
VRDN (Currently 5.10%) (MBIA Insured) * 5,340 5,340
Total Louisiana (Cost $8,976) 8,976
MAINE 0.1%
Maine, GO, 7.50%, 12/15/00 100 102
Total Maine (Cost $102) 102
MARYLAND 7.0%
Anne Arundel County, GO
4.625%, 7/15/00 $ 25 $ 25
Consolidated General Improvement, 4.625%, 7/15/00 50 50
Consolidated Solid Waste Project, 4.625%, 7/15/00 30 30
Baltimore City
Wastewater
6.50%, 7/1/20 (MBIA Insured)
(Prerefunded 7/1/00!) 100 100
Water Projects
6.50%, 7/1/20 (MBIA Insured)
(Prerefunded 7/1/00!) 75 76
Baltimore Convention Center
5.00%, 9/1/00 (FGIC Insured)
(Escrowed to Maturity) 150 150
Carroll County, 7.25%, 10/1/15 (Prerefunded 10/1/00!) 300 309
Howard County, GO
Consolidated Public Improvement
5.00%, 5/15/00 35 35
6.90%, 5/15/07 (Prerefunded 5/15/00!) 300 300
Metropolitan Dist.
5.00%, 2/15/01 45 45
7.125%, 5/15/02 (Prerefunded 5/15/00!) 165 167
7.15%, 5/15/20 (Prerefunded 5/15/00!) 500 506
Maryland, GO
5.40%, 10/15/00 15 15
6.50%, 7/1/00 165 166
7.00%, 10/15/03 (Prerefunded 10/15/00!) 200 205
State & Local Fac
4.10%, 8/1/00 110 110
4.875%, 6/1/00 100 100
4.90%, 2/1/01 100 100
5.00%, 10/15/00 425 426
Maryland DOT
6.20%, 9/1/02 (Prerefunded 9/1/00!) 50 51
6.30%, 9/1/04 (Prerefunded 09/1/00!) 400 409
Maryland HHEFA
7.00%, 7/1/19 (AMBAC Insured)
(Prerefunded 07/01/00!) $ 245 $ 251
Johns Hopkins Hosp.
7.00%, 7/1/23 (Prerefunded 7/1/00!) 280 287
Maryland National Capital Park and Planning Commission
Prince Georges County
6.90%, 7/1/07 (Prerefunded 7/1/00!) 300 307
Maryland Stadium Auth., VRDN (Currently 5.10%) * 7,300 7,300
Montgomery County, GO
9.75%, 6/1/00 500 503
Consolidated Public Improvement
5.20%, 7/1/00 285 285
8.60%, 5/1/00 175 175
Prince Georges Solid Waste Management
6.75%, 6/30/02 (Prerefunded 6/30/00!) 250 256
Univ. of Maryland
4.00%, 10/1/00 525 525
Equipment, 5.50%, 12/1/00 115 116
Washington Suburban Sanitation Dist., GO
6.90%, 8/1/06 (Prerefunded 8/1/00!) 250 256
Administration Building Construction
6.90%, 6/1/01 (Prerefunded 6/1/00!) 25 26
General Construction, 6.75%, 6/1/00 600 601
Water Supply, 5.50%, 6/1/00 20 20
Total Maryland (Cost $14,283) 14,283
MASSACHUSETTS 1.1%
Massachusetts, GO
5.25%, 9/1/00 500 502
6.20%, 8/1/00 50 50
9.25%, 7/1/00 1,000 1,009
Consolidated Loan
6.375%, 7/1/00 100 100
6.90%, 10/1/00 (MBIA Insured) 200 202
7.50%, 12/1/07 (MBIA Insured)
(Prerefunded 12/1/00!) 375 389
Total Massachusetts (Cost $2,252) 2,252
MICHIGAN 4.9%
Michigan State Hosp. Fin. Auth.
6.625%, 6/1/10 (Prerefunded 6/1/00!) $ 65 $ 65
Michigan State Housing Dev. Auth.
Single Family Mortgage, 3.95%, 12/1/00 * 2,000 2,000
Wayne/Charter County Airport, Detroit Metropolitan Airport
VRDN (Currently 5.10%) * 8,020 8,020
Total Michigan (Cost $10,085) 10,085
MINNESOTA 1.1%
Minneapolis-St. Paul Housing & Redev. Auth., Health One
8.00%, 8/15/14 (Prerefunded 8/15/00!) 50 51
Minnesota, GO
4.90%, 8/1/00 100 100
5.20%, 8/1/00 225 226
Various Purpose
4.50%, 6/1/00 1,000 1,000
6.40%, 8/1/00 500 503
State Infrastructure Dev.
7.00%, 8/1/06 (Prerefunded 8/1/00!) 295 297
Total Minnesota (Cost $2,177) 2,177
NEVADA 9.0%
Clark County, GO, Airport Systems, 5.10%, 7/1/00 * 300 301
Clark County Airport
VRDN (Currently 5.05%) * 270 270
VRDN (Currently 5.10%) * 6,000 6,000
Nevada, Municipal Bond Bank
5.30%, 12/1/00 (Escrowed to Maturity) 300 302
7.00%, 7/1/00 (Escrowed to Maturity) 1,660 1,666
Nevada Housing Division, Multi Unit Housing
Silverado, VRDN (Currently 5.10%) * 5,500 5,500
Apache Project, VRDN (Currently 5.10%) 4,400 4,400
Total Nevada (Cost $18,439) 18,439
NEW JERSEY 0.5%
Middlesex County Utilities Auth., Sewer
6.50%, 3/15/11 (FGIC Insured)
(Prerefunded 3/15/01!) $ 50 $ 52
Monmouth County, GO, General Improvement,
4.50%, 8/1/00 300 300
New Jersey Transportation Auth., Trust Fund
Transportation Systems
4.50%, 6/15/00 100 100
4.50%, 6/15/00 (Escrowed to Maturity) 135 135
Ocean County, GO, General Improvement, 7.00%, 8/15/00 500 504
Total New Jersey (Cost $1,091) 1,091
NEW MEXICO 0.8%
New Mexico, GO, Capital Projects, 4.60%, 8/1/00 1,600 1,602
Total New Mexico (Cost $1,602) 1,602
NEW YORK 0.6%
Dormitory Auth. of the State of New York, State Univ.
7.375%, 5/15/14 (Prerefunded 5/15/00!) 525 536
New York City, GO, 6.00%, 8/1/00 (Escrowed to Maturity) 475 477
New York City Municipal Water Fin. Auth.
Water and Sewer Systems
7.50%, 6/15/19 (Prerefunded 6/15/00!) 150 153
Total New York (Cost $1,166) 1,166
NORTH CAROLINA 5.4%
Charlotte, Water & Sewer
6.50%, 2/1/09 (Prerefunded 2/1/01!) 50 52
Charlotte, GO, Public Improvement
6.50%, 2/1/08 (Prerefunded 2/1/01!) 100 103
Charlotte Airport
VRDN (Currently 5.10%) * 7,070 7,070
VRDN (Currently 5.15%) 3,000 3,000
Fayetteville, 6.60%, 6/1/04 (Prerefunded 6/1/00!) 590 603
Greensboro, GO, Public Improvement
6.80%, 5/1/04 (Prerefunded 5/1/00!) $ 100 $ 102
North Carolina, GO, 4.50%, 6/1/00 125 125
Total North Carolina (Cost $11,055) 11,055
OHIO 0.1%
Ohio, GO, Infrastructure Improvement, 4.20%, 8/1/00 50 50
Ohio Building Auth., Correctional Fac., 5.00%, 10/1/00 150 151
Total Ohio (Cost $201) 201
OREGON 1.5%
Oregon Housing and Community Services Dept.
Single Family Mortgage
3.48%, 6/29/00 * 1,500 1,500
4.30%, 3/29/01 * 1,540 1,540
Total Oregon (Cost $3,040) 3,040
PENNSYLVANIA 2.9%
Berks County
7.25%, 11/15/20 (FGIC Insured)
(Prerefunded 11/15/00!) 50 52
Pennsylvania, 7.00%, 5/1/03 (Prerefunded 5/1/00!) 15 15
Pennsylvania Higher Ed. Fac. Auth., Student Loan
VRDN (Currently 5.10%) * 5,100 5,100
Pennsylvania Intergovernmental Cooperative Auth.
Philadelphia Funding
6.00%, 6/15/00 (FGIC Insured)
(Escrowed to Maturity) 500 501
Pennsylvania Turnpike Commission
7.10%, 12/1/03 (FGIC Insured)
(Prerefunded 12/1/00!) 300 311
Total Pennsylvania (Cost $5,979) 5,979
SOUTH CAROLINA 0.3%
Greenville Hosp. Fac.,
7.00%, 5/1/17 (Prerefunded 5/1/00!) $ 100 $ 102
South Carolina Jobs Economic Dev.
First Mortgage Lowman Home Trinity
6.70%, 9/1/20 (Prerefunded 9/1/00!) 500 519
Total South Carolina (Cost $621) 621
SOUTH DAKOTA 1.2%
South Dakota Housing Dev. Agency
VRDN (Currently 5.30%) * 105 105
Homeownership Mortgage, 4.20%, 2/1/01 * 2,410 2,410
Total South Dakota (Cost $2,515) 2,515
TENNESSEE 0.9%
Metropolitan Gov't. Nashville and Davidson
Tennessee Electric, 5.20%, 5/15/00 300 300
Shelby County, GO
4.30%, 7/17/00 1,000 1,000
5.20%, 3/1/01 450 453
Total Tennessee (Cost $1,753) 1,753
TEXAS 7.8%
Austin Utility Systems
9.50%, 5/15/15 (Prerefunded 5/15/00!) 100 100
10.75%, 5/15/15 (Prerefunded 5/15/00!) 280 281
Bexar County Health Fac. Dev. Hosp.
Baptist Memorial Hosp.
7.50%, 8/15/10 (MBIA Insured)
(Prerefunded 8/15/00!) 320 329
Colorado River Municipal Water Dist., Water Systems
8.50%, 1/1/03 (Prerefunded 1/1/01!) 1,000 1,028
Harris County, Toll Road, 5.90%, 8/15/00 450 452
Harris County, GO
Certificates Obligation
5.10%, 10/1/00 (Escrowed to Maturity) 100 101
Harris County, GO, Toll Road, 6.40%, 8/1/00 $50 $50
Harris County Flood Control Dist., GO, 5.50%, 10/1/00 150 151
Panhandle Plains Higher Ed. Auth.
VRDN (Currently 5.10%) * 3,200 3,200
Student Loan, VRDN (Currently 5.10%) * 1,000 1,000
Plano, 7.30%, 9/1/10 (Prerefunded 9/1/00!) 125 126
San Antonio Electric and Gas
5.20%, 2/1/01 335 337
South Texas Higher Ed. Auth.
VRDN (Currently 5.10%) (MBIA Insured) * 3,200 3,200
Sallie Mae
VRDN (Currently 5.10%)
(MBIA Insured) * 1,500 1,500
Texas, GO
VRDN (Currently 5.10%) * 1,000 1,000
Public Fin. Auth., Texas Park & Wildlife
5.375%, 10/1/00 350 352
5.50%, 10/1/00 635 638
TRAN, 4.50%, 8/31/00 2,000 2,005
Total Texas (Cost $15,850) 15,850
UTAH 8.9%
Intermountain Power Agency
10.00%, 7/1/12 (Prerefunded 7/1/00!) 125 128
Salt Lake City, Airport, VRDN (Currently 5.15%) * 5,400 5,400
Salt Lake County, Kennecott/RTZ , Solid Waste Disposal
VRDN (Currently 5.10%) * 4,400 4,400
Utah, GO, 4.70%, 7/1/00 200 200
Utah State Board of Regents, VRDN (Currently 5.10%) * 8,000 8,000
Total Utah (Cost $18,128) 18,128
VIRGINIA 1.9%
Capital Region Airport Commission, Richmond Int'l. Airport
VRDN (Currently 5.15%)
(AMBAC Insured) * 2,000 2,000
Fairfax County, GO, 4.70%, 6/1/00 250 250
Norfolk, GO, Capital Improvement
5.25%, 6/1/00 (FGIC Insured) 250 250
Richmond, Public Improvement
6.25%, 1/21/01 (Prerefunded 1/15/01!) $ 200 $ 207
Richmond, GO, Public Improvement
4.50%, 1/15/01 175 175
6.40%, 1/15/05 (Prerefunded 1/15/01!) 35 36
Roanoke IDA, Roanoke Memorial Hosp
7.40%, 7/1/05 (Prerefunded 7/1/00!) 25 26
7.50%, 7/1/20 (Prerefunded 7/1/00!) 600 615
Virginia, GO, 5.40%, 6/1/00 100 100
Virginia HDA, Multi Housing, 5.45%, 5/1/01 * 200 202
Total Virginia (Cost $3,861) 3,861
WASHINGTON 6.5%
Port of Seattle
5.00%, 9/1/00 (FGIC Insured) * 2,030 2,035
6.00%, 11/1/00 (FGIC Insured) * 1,325 1,338
Seattle Municipal Water
6.75%, 5/1/20 (Prerefunded 5/1/00!) 1,000 1,020
Tacoma Electric Systems, 5.45%, 1/1/01 (AMBAC Insured) 250 252
Washington, GO
4.50%, 8/1/00 225 226
5.00%, 5/1/00 200 200
5.50%, 9/1/00 250 251
6.10%, 6/1/00 150 150
6.10%, 9/1/00 250 252
Dept. of General Administration, COP, 4.75%, 7/1/00 265 265
Motor Vehicle Fuel, 4.70%, 9/1/00 200 200
Various Purpose, 4.25%, 1/1/01 1,000 1,000
Washington Housing Fin. Commission
Single Family
3.85%, 10/10/00 * 1,000 1,000
4.40%, 4/1/01 1,000 1,000
Washington Public Power Supply Systems
5.10%, 7/1/00 100 100
7.00%, 7/1/12 (FGIC Insured)
(Prerefunded 7/1/00!) 985 1,009
7.50%, 7/1/03 (Prerefunded 7/1/00!) 50 51
8.00%, 7/1/17 (Prerefunded 7/1/00!) 100 103
Nuclear Systems
5.45%, 7/1/00 $ 500 $ 501
7.00%, 7/1/11 (Prerefunded 7/1/00!) 70 72
7.00%, 7/1/11 (FGIC Insured)
(Prerefunded 7/1/00!) 820 841
7.00%, 7/1/12 (Prerefunded 7/1/00!) 485 497
7.00%, 7/1/12 (MBIA Insured)
(Prerefunded 7/1/00!) 45 46
7.10%, 7/1/00 100 101
7.25%, 7/1/00 300 302
7.25%, 7/1/03 (Prerefunded 7/1/00!) 50 51
7.375%, 7/1/12 (MBIA Insured)
(Prerefunded 7/1/00!) 55 56
7.50%, 7/1/18 (MBIA Insured)
(Prerefunded 7/1/00!) 35 36
7.50%, 7/1/18 (FGIC Insured)
(Prerefunded 7/1/00!) 215 220
7.60%, 7/1/04 (Prerefunded 7/1/00!) 170 174
Total Washington (Cost $13,349) 13,349
WEST VIRGINIA 0.4%
West Virginia Housing Dev. Fund, 4.40%, 5/1/00 * 755 755
Total West Virginia (Cost $755) 755
WISCONSIN 1.7%
Milwaukee, GO, 5.00%, 11/15/00 1,000 1,005
Milwaukee Metropolitan Sewage Dist., GO, 7.00%, 9/1/00 300 302
Wisconsin, GO
5.30%, 5/1/00 100 100
6.20%, 5/1/02 (Prerefunded 5/1/00!) 100 101
TECP, 3.95%, 5/31/00 2,000 2,000
Total Wisconsin (Cost $3,508) 3,508
Total Investments in Securities
97.8% of Net Assets (Cost $199,802) $199,802
Other Assets Less Liabilities 4,464
NET ASSETS $204,266
----------
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $(6)
Paid-in-capital applicable to 204,268,004 shares of $0.0001 par
value capital stock outstanding; 4,000,000,000 shares
of the Corporation authorized 204,272
NET ASSETS $204,266
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
FSA Financial Security Assurance Corp.
GO General Obligation
HDA Housing Development Authority
HEFA Health & Educational Facility Authority
HHEFA Health & Higher Educational Facility Authority
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Intermediate Fund
--------------------------------------------------------------------------------
Unaudited April 30, 2000
Statement of Net Assets Par Value
--------------------------------------------------------------------------------
In thousands
ALASKA 0.6%
Alaska HFC, 5.75%, 12/1/11 * $ 500 $ 499
Total Alaska (Cost $498) 499
CALIFORNIA 2.0%
California Pollution Control Fin. Auth.,
PCR, USA Waste Services
5.00%, 6/1/08 300 265
California Public Works Board, Dept. of Corrections
6.00%, 11/1/05 (MBIA Insured) 250 265
Foothill / Eastern Transportation Corridor Agency
Toll Road
Zero Coupon, 1/1/05 (Escrowed to Maturity) 350 278
Zero Coupon, 1/15/17 (MBIA Insured) 500 185
Southern California Public Power Auth.
6.02%, 7/1/17 (FGIC Insured)
(Escrowed to Maturity) 600 571
Total California (Cost $1,626) 1,564
COLORADO 0.9%
Denver City and County Airport
6.75%, 11/15/22 (MBIA Insured)
(Prerefunded 11/15/02!) * 105 111
6.75%, 11/15/22 (MBIA Insured) * 395 416
E-470 Public Highway Auth.
Zero Coupon, 8/31/26
(Prerefunded 8/31/05!) 1,000 158
Total Colorado (Cost $671) 685
CONNECTICUT 1.0%
Connecticut Dev. Auth., Mystic Marinelife Aquarium
6.875%, 12/1/17 150 148
Mashantucket Western Pequot Tribe
5.60%, 9/1/09 200 194
5.70%, 9/1/12 500 477
Total Connecticut (Cost $850) 819
DISTRICT OF COLUMBIA 0.7%
Washington D.C. Metropolitan Airport Auth.
6.625%, 10/1/12 (MBIA Insured) * $ 500 $ 525
Total District of Columbia (Cost $526) 525
FLORIDA 8.5%
Dade County, Resource Recovery Fac.
6.00%, 10/1/06 (AMBAC Insured) * 500 521
Dade County School Board, COP
5.60%, 8/1/26 (Prerefunded 8/1/06!) 1,280 1,328
5.75%, 5/1/08 (MBIA Insured) 365 378
Dade County School Dist., GO
6.00%, 7/15/04 (MBIA Insured) 1,700 1,768
Escambia County, PCR, Champion Int'l., 6.90%, 8/1/22 * 1,250 1,270
Florida Division of Bond Fin.
Dept. of Environmental Preservation
6.00%, 7/1/06 (MBIA Insured) 500 525
Indian Trace Community Dev. Dist., Water Management
5.50%, 5/1/07 (MBIA Insured) 500 512
Leesburg Hosp., Regional Medical Center, 5.20%, 7/1/02 500 498
Total Florida (Cost $6,851) 6,800
GEORGIA 1.2%
Coweta County Residential Care Fac. for the Elderly Auth.
Wesley Woods of Newnan-Peachtree City
7.625%, 10/1/06 400 414
Municipal Electric Auth. of Georgia, Zero Coupon, 1/1/09 570 336
Savannah Economic Dev. Auth.
College of Art & Design, 6.80%, 10/1/19 200 200
Total Georgia (Cost $947) 950
HAWAII 6.2%
Hawaii Airports System, 6.70%, 7/1/05 (MBIA Insured) * 500 519
Hawaii Dept. of Budget and Fin.
Hawaiian Electric, 4.95%, 4/1/12 (MBIA Insured) 3,000 2,867
Wilcox Memorial Hosp., 5.50%, 7/1/09 1,690 1,588
Total Hawaii (Cost $5,286) 4,974
ILLINOIS 6.8%
Chicago, GO, 5.75%, 1/1/05 (AMBAC Insured) $660 $676
Chicago Board of Ed., GO
Zero Coupon, 12/1/12 (FGIC Insured) 1,200 581
Illinois HFA
Edward Obligated Group
5.00%, 2/15/09 (AMBAC Insured) 500 482
Glen Oaks Medical Center
9.50%, 11/15/15 (Escrowed to Maturity) 70 73
Hinsdale Hosp.
7.00%, 11/15/19 (Escrowed to Maturity) 260 282
Metropolitan Pier & Expo Auth. McCormick Place
5.375%, 12/15/17 (FGIC Insured) 1,000 958
Southwestern Dev. Auth., Environmental Improvement
Shell Oil, VRDN (Currently 6.20%) * 800 800
Will County Environmental, Exxon Mobil
VRDN (Currently 6.25%) 1,600 1,600
Total Illinois (Cost $5,528) 5,452
INDIANA 1.5%
Goshen, Greencroft Obligation Group, 5.20%, 8/15/06 750 698
St. Joseph County Economic Dev.
Madison Center
5.10%, 2/15/05 260 251
5.25%, 2/15/07 295 283
Total Indiana (Cost $1,301) 1,232
IOWA 0.3%
Iowa HFA, Wesley Retirement, 6.25%, 2/1/12 250 232
Total Iowa (Cost $250) 232
KENTUCKY 3.1%
Kenton County Airport Board, Delta Airlines,
7.50%, 2/1/12 * 2,000 2,055
Kentucky Property and Buildings Commission,
6.40%, 11/1/01 390 399
Total Kentucky (Cost $2,526) 2,454
MARYLAND 7.7%
Maryland Energy Fin. Admin.
Wheelabrator Technologies
5.85%, 12/1/05 * $ 1,510 $ 1,525
6.30%, 12/1/10 * 250 257
Maryland HHEFA
Good Samaritan Hosp.
5.50%, 7/1/05 (Escrowed to Maturity) 700 714
Montgomery County, GO
Consolidated Public Improvement
5.10%, 4/1/05 1,200 1,207
Northeast Maryland Waste Disposal Auth.
Baltimore Resco Retrofit, 5.00%, 1/1/12 * 700 574
Montgomery County Resources
6.20%, 7/1/10 * 750 765
6.30%, 7/1/16 (MBIA Insured) * 500 512
7.10%, 1/1/03 (MBIA Insured) 550 578
Total Maryland (Cost $6,206) 6,132
MASSACHUSETTS 2.3%
Massachusetts, GO
5.25%, 8/1/15 625 600
6.30%, 11/1/05 (FGIC Insured) 250 264
Massachusetts Port Auth.
7.375%, 7/1/10 (FGIC Insured) * 100 102
7.375%, 7/1/10 (FGIC Insured)
(Prerefunded 7/1/00!) * 35 36
Massachusetts Water Pollution, 6.00%, 8/1/15 800 827
Total Massachusetts (Cost $1,819) 1,829
MICHIGAN 6.6%
Garden City HFA, Garden City Hosp., 5.375%, 9/1/03 1,465 1,420
Greater Detroit Resource Recovery Auth.
6.25%, 12/13/05 (AMBAC Insured) 1,000 1,055
Michigan HFA, Mercy Health, 5.00%, 8/15/12 1,395 1,302
Michigan State Hosp. Fin. Auth., Ascension Health
5.30%, 11/15/06 $ 1,000 $ 991
Wayne County (Charter) Airport
5.25%, 12/1/12 (MBIA Insured) * 500 480
Total Michigan (Cost $5,370) 5,248
MISSOURI 0.5%
Good Shepherd Nursing Home Dist.
Nursing Home Fac., 5.45%, 8/15/08 420 386
Total Missouri (Cost $420) 386
NEVADA 1.1%
Clark County Airport, Las Vegas McCarran Int'l.
5.00%, 7/1/16 (MBIA Insured) 1,000 915
Total Nevada (Cost $894) 915
NEW HAMPSHIRE 0.5%
New Hampshire Housing Fin. Auth.
Single Family
5.90%, 1/1/01 * 105 106
5.90%, 7/1/01 * 105 106
6.00%, 7/1/02 * 110 111
6.10%, 1/1/03 * 110 112
Total New Hampshire (Cost $430) 435
NEW JERSEY 3.2%
New Jersey Ed. Fac. Auth., Georgian Court College
5.00%, 7/1/04 475 465
New Jersey Transportation Trust Fund Auth.
Transportation Systems
5.625%, 6/15/14 1,000 1,023
5.75%, 6/15/11 1,000 1,042
Total New Jersey (Cost $2,536) 2,530
NEW YORK 11.4%
New York Dormitory Auth.
City Univ.
5.50%, 7/1/03 $ 1,000 $ 1,010
6.875%, 7/1/14 (MBIA Insured)
(Prerefunded 7/1/04!) 350 380
Mental Health Services Fac., 6.00%, 2/15/06 1,500 1,540
Mount Sinai Health, 6.00%, 7/1/07 1,000 1,009
Nyack Hosp., 6.00%, 7/1/06 250 247
State Univ. Ed. Fac., 7.40%, 5/15/01 150 153
Nassau County IDA, Hofstra Univ.
6.70%, 1/1/09 (Prerefunded 1/1/05!) 250 270
New York City, GO
5.25%, 8/1/03 1,000 1,005
7.00%, 8/1/04 1,000 1,068
New York State Environmental Fac., PCR
Water Revolving Fund, 6.875%, 6/15/10 50 52
New York State Housing Fin. Agency
Service Contract Obligation
5.85%, 9/15/09 300 307
New York State Mortgage Agency, Homeowner Mortgage
5.80%, 10/1/06 * 500 507
Port Auth. of New York and New Jersey
5.875%, 9/15/15 (FGIC Insured) * 1,000 1,014
6.50%, 10/1/01 * 500 507
Total New York (Cost $9,042) 9,069
NORTH CAROLINA 0.9%
North Carolina Eastern Municipal Power Agency
6.70%, 1/1/19 700 707
Total North Carolina (Cost $700) 707
OHIO 1.6%
Fairfield Economic Dev. Auth., Beverly Enterprises
8.50%, 1/1/03 130 133
Ohio Housing Fin. Agency, Residential, 5.025%, 3/1/21 * 1,130 1,106
Total Ohio (Cost $1,264) 1,239
PENNSYLVANIA 3.5%
Beaver County IDA, PCR, Toledo Edison, 4.85%, 6/1/04 $500 $473
Pennsylvania, GO, 5.375%, 11/15/03 (FGIC Insured) 500 507
Pennsylvania Intergovernmental Cooperative Auth., Special Tax
7.00%, 6/15/04 (FGIC Insured)
(Escrowed to Maturity) 400 429
Philadelphia Auth. for Ind. Dev., Pauls Run
5.85%, 5/15/13 500 440
Philadelphia HHEFA, Childrens Hosp., 5.25%, 2/15/06 1,000 982
Total Pennsylvania (Cost $2,920) 2,831
SOUTH CAROLINA 8.2%
Berkeley County, Amoco Chemical, VRDN (Currently 6.20%) * 300 300
Charleston County Resource Recovery, Foster Wheeler
5.10%, 1/1/08 (AMBAC Insured) * 1,700 1,656
South Carolina, GO, School Fac., 5.75%, 1/1/08 3,000 3,130
South Carolina Public Service Auth.
6.25%, 1/1/05 (MBIA Insured) 1,350 1,414
Total South Carolina (Cost $6,534) 6,500
TENNESSEE 1.2%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA Insured) * 200 212
Tennessee Housing Dev. Agency
4.95%, 7/1/10 * 420 405
5.05%, 7/1/11 * 355 342
Total Tennessee (Cost $981) 959
TEXAS 5.8%
Abilene Health Fac. Dev., Sears Methodist Retirement System
5.40%, 11/15/09 700 631
Austin Airport, 5.75%, 11/15/08 (MBIA Insured) * 500 511
Brazos Higher Ed. Auth., Student Loan, 5.95%, 6/1/02 * 470 475
Harris County Health Fac. Dev.
Texas Childrens Hosp., 5.375%, 10/1/12 800 780
Houston, Water and Sewer, 7.00%, 12/1/03 (AMBAC Insured) 270 287
Lower Colorado River Auth., 5.75%, 5/15/11 (FSA Insured $1,370 $1,402
Tarrant County Health Fac. Dev., Texas Health Resources
5.75%, 2/15/10 (MBIA Insured) 500 512
Total Texas (Cost $4,681) 4,598
VIRGINIA 3.6%
Bedford County IDA, Georgia-Pacific, 4.60%, 8/1/04 320 313
Fairfax County Economic Dev. Auth.
Greenspring Retirement Community, 7.25%, 10/1/19 300 283
Southeastern Public Service Auth.
Solid Waste Systems, 5.875%, 7/1/08 * 500 495
Virginia Public School Auth., GO, School Financing
5.00%, 1/1/04 1,300 1,303
Virginia Transportation Board
Northern Virginia Transportation Dist.
5.80%, 5/15/04 500 514
Total Virginia (Cost $2,933) 2,908
WASHINGTON 1.3%
Washington Health Care Fac. Auth.
Virginia Mason Medical Center
6.00%, 8/15/08 (MBIA Insured) 500 520
Washington Public Power Supply System
Nuclear Project, 6.30%, 7/1/01 (FSA Insured) 500 508
Total Washington (Cost $1,043) 1,028
WEST VIRGINIA 5.4%
Putnam County, PCR, Appalachian Power, 6.60%, 7/1/19 3,950 3,965
West Virginia, GO, Zero Coupon, 11/1/12 (FGIC Insured) 700 348
Total West Virginia (Cost $4,550) 4,313
WISCONSIN 2.1%
Milwaukee Metropolitan Sewage Dist., GO, 6.25%, 10/1/05 1,600 1,685
Total Wisconsin (Cost $1,688) 1,685
Total Investments in Securities
99.7% of Net Assets (Cost $80,871) $79,498
Other Assets Less Liabilities 225
NET ASSETS $79,723
----------
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ (1,126)
Net unrealized gain (loss) (1,373)
Paid-in-capital applicable to 7,917,142 shares of $0.0001 par
value capital stock outstanding; 4,000,000,000 shares
of the Corporation authorized 82,222
NET ASSETS $79,723
----------
NET ASSET VALUE PER SHARE $10.07
----------
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Corp.
GO General Obligation
HFA Health Facility Authority
HFC Housing Finance Corp.
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, 2000
Statement of Net Assets Par Value
--------------------------------------------------------------------------------
In thousands
ALABAMA 0.3%
Baldwin County Eastern Shore Health Care Auth.
Thomas Hosp., 6.75%, 4/1/21 $ 200 $ 184
Total Alabama (Cost $196) 184
ALASKA 3.1%
Alaska HFC, 5.75%, 12/1/11 * 1,150 1,149
Alaska Student Loan, 5.10%, 7/1/10 (AMBAC Insured) * 1,000 959
Total Alaska (Cost $2,142) 2,108
CALIFORNIA 5.3%
California Pollution Control Fin. Auth., PCR
USA Waste Services, 5.00%, 6/1/18 300 265
Chula Vista, Sub-Gateway Town Center, 7.50%, 1/1/32 * 500 460
Foothill / Eastern Transportation Corridor Agency
Toll Road
Zero Coupon, 1/1/07 (Escrowed to Maturity) 1,000 812
Zero Coupon, 1/15/17 (MBIA Insured) 500 185
Zero Coupon, 1/1/26 (Escrowed to Maturity) 500 108
Los Angeles Regional Airports, LAX Airport Improvement
5.65%, 8/1/17 * 965 848
Placentia PFA, Special Tax, 6.60%, 9/1/15 100 101
Pomona Unified School Dist., GO
6.15%, 8/1/15 (MBIA Insured) 145 156
Poway Community Fac. Dist., 6.75%, 8/15/15 425 439
Santa Ana Housing Auth., Villa Del Sol Apartments
5.65%, 11/1/21 * 300 304
Total California (Cost $3,878) 3,678
COLORADO 0.4%
E-470 Public Highway Auth.
Zero Coupon, 8/31/26
(Prerefunded 8/31/05!) 2,000 315
Total Colorado (Cost $304) 315
CONNECTICUT 0.7%
Connecticut Dev. Auth., Mystic Marinelife Aquarium
7.00%, 12/1/27 $ 200 $ 197
Mashantucket, Western Pequot Tribe, 5.75%, 9/1/27 300 268
Total Connecticut (Cost $491) 465
FLORIDA 0.8%
Tampa Solid Waste Systems, McKay Bay Refuse to Energy
5.25%, 10/1/12 * 610 590
Total Florida (Cost $634) 590
GEORGIA 5.9%
Athens-Clarke Residential Care Fac. Auth.
Wesley Woods of Athens, 6.375%, 10/1/27 200 173
Atlanta Airport
5.50%, 1/1/26 (FGIC Insured) 1,000 949
6.25%, 1/1/14 (FGIC Insured) * 1,000 1,038
Atlanta Water and Wastewater, 5.50%, 11/1/13 500 506
Coweta County Residential Care Fac. for the Elderly Auth.
Wesley Woods of Newnan-Peachtree City
8.20%, 10/1/16 215 229
Georgia Housing Fin. Auth., Single Family,
6.45%, 12/1/27 * 210 212
Municipal Electric Auth. of Georgia
Zero Coupon, 1/1/09 1,000 589
5.70%, 1/1/19 (MBIA Insured) 170 171
Rockdale County Dev. Auth.,
Solid Waste Disposal, Visy Paper
7.50%, 1/1/26 * 225 229
Total Georgia (Cost $4,169) 4,096
IDAHO 0.1%
Idaho Housing Agency, Single Family
6.60%, 7/1/27 (FHA Guaranteed) * 85 86
Total Idaho (Cost $85) 86
ILLINOIS 8.8%
Chicago, GO, 6.75%, 1/1/35 (FGIC Insured) $500 $539
Chicago Board of Ed., GO
School Reform Board
Zero Coupon, 12/1/15 (AMBAC Insured) 1,000 402
5.25%, 12/1/17 1,000 950
5.75%, 12/1/20 (AMBAC Insured) 300 294
DuPage County, Windsor Park Manor, 7.20%, 12/1/14 200 198
Illinois HFA
Community Hosp. of Ottawa, 6.85%, 8/15/24 200 199
Glen Oaks Medical Center
7.00%, 11/15/19 (Escrowed to Maturity) 145 158
9.50%, 11/15/15 (Escrowed to Maturity) 70 73
Highland Park Hosp., 5.75%, 10/1/17 (MBIA Insured) 140 137
Holy Cross Hosp., 6.70%, 3/1/14 300 300
Riverside Health Systems, 6.00%, 11/15/18 750 696
Will County Environmental, Exxon Mobil
VRDN (Currently 6.25%) 2,100 2,100
Total Illinois (Cost $6,230) 6,046
INDIANA 1.3%
Indiana HFFA, Deaconess Hosp., 5.75%, 3/1/19 1,000 901
Total Indiana (Cost $1,021) 901
IOWA 1.6%
Iowa Fin. Auth., Single Family Mortgage, 5.70%, 1/1/27 1,000 947
Iowa HFA, Wesley Retirement, 6.25%, 2/1/12 160 148
Total Iowa (Cost $1,107) 1,095
KANSAS 0.4%
City of Olathe, Aberdeen Village, 8.00%, 5/15/30 250 247
Total Kansas (Cost $243) 247
KENTUCKY 0.1%
Kenton County Airport Board, Delta Airlines,
7.50%, 2/1/20 * 100 103
Total Kentucky (Cost $100) 103
LOUISIANA 2.1%
New Orleans, GO, 5.50%, 12/1/21 (FGIC Insured) $1,000 $961
St. Charles Parish, PCR, 4.85%, 6/1/30 500 491
Total Louisiana (Cost $1,443) 1,452
MAINE 1.5%
Maine Housing Auth., 6.40%, 11/15/19 * 1,000 1,016
Total Maine (Cost $1,000) 1,016
MARYLAND 3.4%
Maryland CDA, Single Family, 7.25%, 4/1/19 * 140 143
Maryland Economic Dev., 5.50%, 7/15/09 445 421
Maryland Energy Fin. Admin., Wheelabrator Technologies
6.45%, 12/1/16 * 500 502
Maryland Health and Higher Ed. Fac.
Univ. of Maryland Medical System, 6.625%, 7/1/20 500 499
Northeast Maryland Waste Disposal Auth.
Baltimore Resco Retrofit, 5.00%, 1/1/12 * 300 246
Montgomery County Resources, 6.20%, 7/1/10 * 500 510
Total Maryland (Cost $2,378) 2,321
MASSACHUSETTS 2.1%
Massachusetts HEFA, Melrose Wakefield Healthcare
5.375%, 7/1/05 (Escrowed to Maturity) 350 355
Massachusetts Water Pollution, 6.00%, 8/1/18 1,050 1,101
Total Massachusetts (Cost $1,415) 1,456
MICHIGAN 2.7%
Michigan Hosp. Fin. Auth., Ascension Health Credit
5.22%, 11/15/05 1,000 990
Michigan Strategic Fund, WMX Technologies
6.00%, 12/1/13 * 1,000 902
Total Michigan (Cost $2,042) 1,892
MINNESOTA 0.3%
Minneapolis, Walker Methodist, 5.875%, 11/15/18 $250 $209
Total Minnesota (Cost $246) 209
MISSISSIPPI 0.8%
Mississippi Business Fin., Systems Energy Resources
5.875%, 4/1/22 500 432
Warren County, PCR, Mississippi Power and Light
7.00%, 4/1/22 100 103
Total Mississippi (Cost $596) 535
MISSOURI 1.4%
Missouri High Ed. Student Loan, Railroad,
5.85%, 7/15/10 * 1,000 1,001
Total Missouri (Cost $1,000) 1,001
NEVADA 2.0%
Clark County Airport
McCarran Int'l. Airport
5.00%, 7/1/16 (MBIA Insured) 1,000 915
6.00%, 7/1/17 (MBIA Insured) * 250 251
Clark County, IDR, Southwest Gas, 6.50%, 12/1/33 * 200 191
Total Nevada (Cost $1,324) 1,357
NEW HAMPSHIRE 1.0%
New Hampshire HHEFA, Wentworth Douglass Hosp.
5.375%, 1/1/15 (MBIA Insured) 500 488
New Hampshire Housing Fin. Auth., Single Family
6.85%, 7/1/14 * 170 174
Total New Hampshire (Cost $668) 662
NEW JERSEY 5.9%
New Jersey Economic Dev. Auth.
Continental Airlines, 6.25%, 9/15/19 (FSA Insured) * 1,000 928
The Evergreens, 6.00%, 10/1/17 130 111
Transportation Project, 5.75%, 5/1/10 (FSA Insured) 1,000 1,042
New Jersey HFFA, Irvington General Hosp.
5.875%, 8/1/06 (FHA Guaranteed)
(Prerefunded 8/1/04!) $ 150 $ 157
New Jersey Housing and Mortgage Fin. Agency
6.35%, 10/1/27 (MBIA Insured) * 250 253
New Jersey Sports & Exposition Auth., Monmouth Park
8.00%, 1/1/25 (Prerefunded 1/1/05!) 100 114
New Jersey Transportation Trust Fund Auth.
Transportation Systems, 5.75%, 6/15/15 500 516
New Jersey Turnpike Auth.,
10.375%, 1/1/03 (Escrowed to Maturity) 440 479
New Jersey Wastewater Treatment Trust
6.375%, 4/1/11 (Prerefunded 4/1/04!) 200 213
Rutgers, State Univ., 6.35%, 5/1/06 250 261
Total New Jersey (Cost $4,101) 4,074
NEW MEXICO 2.4%
Bernalillo County, Gross Tax Receipts, 5.25%, 10/1/26 1,250 1,131
New Mexico Mortgage Fin. Auth., Single Family Mortgage
6.30%, 9/1/27 500 505
Total New Mexico (Cost $1,601) 1,636
NEW YORK 11.2%
Dormitory Auth. of the State of New York
Mount Sinai Health, 6.50%, 7/1/25 525 516
Nyack Hosp., 6.00%, 7/1/06 250 247
Nassau County IDA, Hofstra Univ.
6.80%, 1/1/11 (Prerefunded 1/1/05!) 290 315
New York City, GO, 6.25%, 8/1/09 350 369
New York City Health & Hosp., Health System Bonds
5.25%, 2/15/17 (AMBAC Insured) 730 655
New York State Energy Research and Dev. Auth., PCR
New York Electric and Gas
6.15%, 7/1/26 (MBIA Insured) * 200 200
New York State Environmental Fac., PCR
State Water Revolving Fund, 6.90%, 11/15/15 200 216
New York State Mortgage Agency
Homeowner Mortgage
5.85%, 10/1/18 * $ 1,000 $ 987
6.625%, 4/1/25 * 85 87
New York State Urban Dev., 5.375%, 7/1/22 1,000 928
Port Auth. of New York and New Jersey
5.875%, 9/15/15 (FGIC Insured) * 1,000 1,014
6.50%, 10/1/01 * 200 203
Suffolk County, GO, Public Improvement
5.25%, 10/15/15 (FGIC Insured) 1,000 958
Triborough Bridge and Tunnel Auth., General Purpose
5.90%, 1/1/08 1,000 1,043
Total New York (Cost $7,723) 7,738
NORTH CAROLINA 2.6%
North Carolina Eastern Municipal Power Agency
5.90%, 1/1/03 500 503
6.70%, 1/1/19 700 707
North Carolina Medical Care Commission Hosp.
Firsthealth of the Carolinas, 4.75%, 10/1/26 750 597
Total North Carolina (Cost $1,899) 1,807
OHIO 3.4%
Akron, Municipal Baseball Stadium, COP
Zero Coupon, 12/1/16 300 272
Fairfield Economic Dev. Auth., Beverly Enterprises
8.50%, 1/1/03 55 56
Franklin County Health Care Fac., Ohio Presbyterian
5.35%, 7/1/09 500 459
Ohio Building Auth., Adult Correctional Fac.,
5.50%, 10/1/11 1,000 1,014
Ohio Air Quality Dev. Auth., PCR, Cleveland Electric
6.00%, 8/1/20 500 454
Ohio Water Dev. Auth., PCR, Toledo Edison,
8.00%, 10/1/23 * 100 106
Total Ohio (Cost $2,451) 2,361
OKLAHOMA 0.2%
Tulsa Municipal Airport, American Airlines,
7.375%, 12/1/20 * $ 150 $ 152
Total Oklahoma (Cost $148) 152
OREGON 1.4%
Port of Portland, Portland Int'l. Airport
5.50%, 7/1/14 (AMBAC Insured) * 1,000 985
Total Oregon (Cost $986) 985
PENNSYLVANIA 2.8%
Beaver County IDA, PCR, Cleveland Electric,
7.625%, 5/1/25 100 105
Bucks County IDA, Chandler Hall, 6.10%, 5/1/14 500 447
Erie County IDA, Beverly Enterprises, 6.625%, 5/1/02 50 50
Montgomery County Ed. & Health, Faulkeways at Gwynedd
6.75%, 11/15/24 400 380
Pennsylvania Economic Dev. Fin. Auth., National Gypsum
6.25%, 11/1/27 * 500 455
Philadelphia Airport Auth.,
6.10%, 6/15/25 (AMBAC Insured) * 75 75
Southeastern Pennsylvania Transportation Auth.
4.75%, 3/1/24 (FGIC Insured) 500 415
Total Pennsylvania (Cost $2,046) 1,927
PUERTO RICO 0.4%
Puerto Rico Highway and Transportation Auth.
5.50%, 7/1/15 250 248
Total Puerto Rico (Cost $236) 248
SOUTH CAROLINA 2.3%
Connector 2000 Assoc., Greenville Toll Road
Zero Coupon, 1/1/12 1,000 411
South Carolina Public Service Auth.
5.875%, 1/1/23 (FGIC Insured) 1,000 992
Santee Cooper, 6.25%, 1/1/22 (AMBAC Insured) 200 205
Total South Carolina (Cost $1,777) 1,608
SOUTH DAKOTA 0.3%
South Dakota HDA, Homeownership, 6.65%, 5/1/14 $185 $190
Total South Dakota (Cost $185) 190
TENNESSEE 0.4%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA Insured) * 100 106
Metropolitan Gov't. of Nashville & Davidson Counties
Mur-Ci Homes, 7.75%, 12/1/26 200 187
Total Tennessee (Cost $298) 293
TEXAS 7.8%
Abilene Health Fac. Dev., Sears Methodist Retirement
5.90%, 11/15/25 250 203
Amarillo Health Fac. Dev., Sears Panhandle Retirement
7.75%, 8/15/26 (Prerefunded 8/15/06!) 200 231
Harris County, Toll Road
6.375%, 8/15/24 (MBIA Insured)
(Prerefunded 8/15/04!) 250 267
Harris County Health Fac. Dev., Texas Childrens Hosp.
5.375%, 10/1/12 800 780
Matagorda County Navigation Dist., Reliant Energy
5.20%, 5/1/29 1,000 985
San Antonio Water, Refunding, 5.875%, 5/15/18 1,000 1,008
Texas, GO
TRAN, 4.50%, 8/31/00 1,000 1,000
Veterans Housing Assistance, 6.25%, 12/1/15 30 30
Tomball Hosp. Auth., Tomball Regional Hosp.,
6.00%, 7/1/19 500 438
Tyler Health Fac. Dev., Mother Frances Hosp.,
5.625%, 7/1/13 500 435
Total Texas (Cost $5,481) 5,377
UTAH 1.0%
Carbon County, Solid Waste Disposal, Laidlaw Environmental
7.45%, 7/1/17 (MBIA Insured) * 200 180
Intermountain Power Agency, Power Supply
5.75%, 7/1/16 (MBIA Insured) $ 500 $ 501
Total Utah (Cost $690) 681
VIRGINIA 7.6%
Fairfax County Economic Dev. Auth.
Greenspring Retirement Community, 7.25%, 10/1/19 200 189
Fairfax County Water Auth.
5.80%, 1/1/16, (Escrowed to Maturity) 860 874
Greater Richmond Convention Center Auth.
Convention Center Expansion, 6.125%, 6/15/29 1,250 1,252
Peninsula Port Auth., Riverside Health
6.625%, 7/1/18 (Prerefunded 7/1/02!) 200 211
Pocahontas Parkway Assoc., Toll Road,
Zero Coupon, 8/15/15 1,500 525
Prince William County Service Auth., Water & Sewer Systems
6.00%, 7/1/29 (FGIC Insured)
(Prerefunded 7/1/01!) 85 86
Riverside, Regional Jail,
5.875%, 7/1/14 (MBIA Insured) 1,000 1,021
Virginia HDA, 6.50%, 5/1/13 * 100 104
Virginia Transportation Board
Northern Virginia Transportation Dist.
5.50%, 5/15/22 1,000 963
Total Virginia (Cost $5,339) 5,225
WASHINGTON 1.4%
Chelan County Public Utility
Columbia River-Rock Hydroelectric
Zero Coupon, 6/1/18 (MBIA Insured) 585 199
Tacoma, Solid Waste Utilities
5.50%, 12/1/17, (AMBAC Insured) 800 778
Total Washington (Cost $996) 977
WEST VIRGINIA 1.4%
West Virginia Building Commission, Regional Jail
5.375%, 7/1/18 (AMBAC Insured) 500 482
5.375%, 7/1/21 (AMBAC Insured) 500 473
Total West Virginia (Cost $1,047) 955
WISCONSIN 2.0%
Oconto Falls CDA, Oconto Falls Tissue, 7.75%, 12/1/22 * $200 $194
Wisconsin HEFA
Childrens Hosp., 5.625%, 2/15/15 (AMBAC Insured) 500 498
National Regency of New Berlin, 8.00%, 8/15/25 200 208
Wisconsin Housing and Economic Dev. Auth.
Homeownership
6.20%, 3/1/27 * 200 199
6.45%, 9/1/27 * 250 252
Total Wisconsin (Cost $1,366) 1,351
Total Investments in Securities
100.6% of Net Assets (Cost $71,082) $69,400
Other Assets Less Liabilities (440)
NET ASSETS $68,960
----------
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ (2,513)
Net unrealized gain (loss) (1,682)
Paid-in-capital applicable to 6,996,307 shares of $0.0001 par
value capital stock outstanding; 4,000,000,000 shares
of the Corporation authorized 73,155
NET ASSETS $68,960
----------
NET ASSET VALUE PER SHARE $9.86
----------
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
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
HFC Housing Finance Corp.
HFFA Health Facility Financing Authority
HHEFA Health & Higher Educational Facility Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
PFA Public Facility Authority
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
T. Rowe Price Summit Municipal Funds
--------------------------------------------------------------------------------
Unaudited
Statement of Operations
--------------------------------------------------------------------------------
In thousands
Money Market Intermediate Income
Fund Fund Fund
6 Months 6 Months 6 Months
Ended Ended Ended
4/30/00 4/30/00 4/30/00
Investment Income (Loss)
Interest Income $ 3,804 $ 2,117 $ 2,012
Expenses
Investment management
and administrative 446 202 175
Net investment income (loss) 3,358 1,915 1,837
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities - (462) (1,014)
Futures - - (28)
Net realized gain (loss) - (462) (1,042)
Change in net unrealized gain or loss
Securities - 45 767
Futures - - 15
Change in net unrealized gain or loss - 45 782
Net realized and unrealized gain (loss) - (417) (260)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $3,358 $1,498 $1,577
------------------------------------
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Funds
--------------------------------------------------------------------------------
Unaudited
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
In thousands Money Market Fund Intermediate Fund Income Fund
6 Months Year 6 Months Year 6 Months Year
Ended Ended Ended Ended Ended Ended
4/30/00 10/31/99 4/30/00 10/31/99 4/30/00 10/31/99
Increase (Decrease)
in Net Assets
Operations
Net investment
income (loss) $3,358 $5,106 $1,915 $3,861 $1,837 $3,601
Net realized
gain (loss) - (6) (462) (633) (1,042) (1,414)
Change in net
unrealized
gain or loss - - 45 (4,251) 782 (4,963)
Increase
(decrease)
in net assets
from operations 3,358 5,100 1,498 (1,023) 1,577 (2,776)
Distributions to
shareholders
Net investment
income (3,358) (5,106) (1,915) (3,861) (1,837) (3,601)
Net realized gain - - - (146) - (325)
Decrease in
net assets
from distributions (3,358) (5,106) (1,915) (4,007) (1,837) (3,926)
Capital share
transactions *
Shares sold 125,905 182,876 17,997 35,959 13,103 42,172
Distributions
reinvested 3,152 4,814 1,154 2,565 1,042 2,589
Shares redeemed (110,096) (173,303) (22,805) (25,628) (17,483) (31,459)
Increase (decrease)
in net assets
from capital
share transactions 18,961 14,387 (3,654) 12,896 (3,338) 13,302
Net Assets
Increase (decrease)
during period 18,961 14,381 (4,071) 7,866 (3,598) 6,600
Beginning of period 185,305 170,924 83,794 75,928 72,558 65,958
End of period $204,266 $185,305 $79,723 $ 83,794 $68,960 $72,558
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*Share information
Shares sold 125,905 182,876 1,785 3,400 1,327 3,993
Distributions
reinvested 3,152 4,814 114 244 106 247
Shares redeemed (110,096) (173,303) (2,259) (2,461) (1,777) (3,016)
Increase
(decrease)
in shares
outstanding 18,961 14,387 (360) 1,183 (344) 1,224
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Municipal Funds
--------------------------------------------------------------------------------
Unaudited April 30, 2000
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 as a diversified, open-end
man-agement investment company. 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)
are the three portfolios established by the corporation and commenced
operations on October 29, 1993. The Money Market Fund seeks preservation of
capital and liquidity and, consistent with these, the highest possible
current income exempt from federal income taxes by investing in
high-quality municipal securities. The Intermediate Fund seeks the highest
level of income exempt from federal income taxes consistent with moderate
price fluctuation by investing primarily in investment-grade tax-exempt
securities. The Income Fund seeks a high level of income exempt from
federal income taxes by investing primarily in long-term, investment-grade
tax-exempt bonds.
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 Fund, investments in
securities with original maturities of one year or more are stated at fair
value as furnished by dealers who make markets in such securities or by an
independent pricing service, which considers yield or price of bonds of
comparable quality, coupon, maturity, and type, as well as prices quoted by
dealers who make markets in such securities. Securities held by the Money
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
Consistent with their investment objectives, the Intermediate and Income
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.
Noninvestment-Grade Debt Securities At April 30, 2000, the Income Fund held
investments in noninvestment-grade debt securities, commonly referred to as
"high-yield" or "junk" bonds. A real or perceived economic downturn or
higher interest rates could adversely affect the liquidity or value, or
both, of such securities because such events could lessen the ability of
issuers to make principal and interest payments.
Other Purchases and sales of portfolio securities, other than short-term
securities, for the six months ended April 30, 2000, were as follows:
--------------------------------------------------------------------------
Intermediate Income
Fund Fund
Purchases $17,610,000 $21,812,000
Sales 21,330,000 19,922,000
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. As of October 31, 1999, the Money Fund had capital loss
carryforwards for federal income tax purposes of $6,000, all of which
expires in 2007, the Intermediate Fund had capital loss carryforwards for
federal income tax purposes of $663,000, all of which expires in 2007; the
Income Fund had capital loss carryforwards of $1,484,000, all of which
expires in 2007.
At April 30, 2000, the costs of investments for the Money Market,
Intermediate, and Income Funds for federal income tax purposes was
substantially the same as for financial reporting and totaled $199,802,000,
$80,871,000, and $71,082,000, respectively. For the Money 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 $412,000 $599,000
Depreciated investments (1,785,000) (2,281,000)
Net unrealized gain (loss) $(1,373,000) $(1,682,000)
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 $105,000, $47,000, and $43,000 were
payable at April 30, 2000, by the Money Market, Intermediate, and Income
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
For fund and account information
or to conduct transactions,
24 hours, 7 days a week
By touch-tone telephone
Tele*Access 1-800-638-2587
By Account Access on the Internet
www.troweprice.com/access
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132
To open a brokerage account
or obtain information, call:
1-800-638-5660
Internet address:
www.troweprice.com
Plan Account Lines for retirement
plan participants:
The appropriate 800 number appears
on your retirement account statement.
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
copy of the prospectus appropriate
to the fund or funds covered in this
report.
Walk-In Investor Centers:
For directions, call 1-800-225-5132
or visit our Web site
Baltimore Area
Downtown
101 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
Wellesley
Colorado Springs
4410 ArrowsWest Drive
Los Angeles Area
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
Tampa
4200 West Cypress Street
10th Floor
Washington, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Invest with Confidence (registered trademark)
T. Rowe Price Investment Services, Inc., Distributor. C10-051 4/30/00
