<PAGE>
T. Rowe Price
--------------------------------------------------------------------------------
Annual Report
Summit Municipal Funds
--------------------------------------------------------------------------------
October 31, 2000
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REPORT HIGHLIGHTS
-----------------
SUMMIT MUNICIPAL FUNDS
----------------------
* With the Federal Reserve on hold since a half-point rate hike in May,
tax-free bond funds posted healthy gains during the past six and 12
months.
* All three Summit funds had solid returns and outperformed their Lipper
categories, aided by portfolio strategy and below-average expenses.
* The Summit Municipal Money Market Fund benefited from the higher
short-term rates established early in 2000.
* The U.S. economy is clearly slowing but has a strong chance to avoid
recession. This scenario would be favorable for tax-exempt bonds.
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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
-------------------
With the U.S. economy slowing and the Federal Reserve on hold since May,
high-quality bond prices continued to rise during the past six months,
contributing to solid total returns for tax-exempt bond funds for the year ended
October 31. Money market returns benefited from the higher level of short-term
rates compared with a year ago. Each of the Summit Funds outperformed its Lipper
peer group average over both periods.
================================================================================
<PAGE>
MARKET ENVIRONMENT
------------------
The U.S. economy is clearly headed for a landing -- the big question now is
whether it will be hard or soft. (In the desired "soft landing" scenario, the
economy slows down, thus reducing inflationary pressures, but does not go into
recession.) Third-quarter GDP came in at a weaker-than-expected 2.7%, and
indicators from manufacturing activity to consumer confidence slackened. The
deceleration appeared to have entered a self-feeding process, and it was mainly
the lagging economic indicators, such as the unemployment rate and wage growth,
that showed continued signs of excessive strength. Leading price and labor
market indicators pointed to further moderation and eventual easing of labor
market strains.
Municipal Bond and Note Yields chart, Line graph showing 30-year AAA GO,
5-year AAA GO, and 1-year Moody's Investment Grade 1 Note yields from 10/31/99
to 10/31/00.
30-Year AAA 5-Year AAA 1-Year Moody's
General Obligation General Obligation Investment Grade 1 Note
------------------ ------------------ -----------------------
10/31/93 5.89 4.58 3.95
5.87 4.53 3.95
5.93 4.68 4.10
1/00 6.03 4.90 4.10
5.90 4.94 4.20
5.69 4.82 4.30
4/00 5.80 4.96 4.35
5.91 5.04 4.70
5.72 4.74 4.35
7/00 5.60 4.58 4.30
5.50 4.43 4.30
5.61 4.53 4.35
10/31/00 5.52 4.48 4.40
Municipal bonds performed well during the past six months due not only to
the slowing economy but also to strong demand, limited supply, weakness in the
stock market, and increased risk aversion among investors. The record economic
expansion has left municipal coffers flush and reduced the need for local
government borrowing. At the same time, investor demand -- particularly for
individual bonds -- has flourished. Investor interest in tax-exempt bond funds
also turned positive, reversing the trend of negative cash flows from late last
year and early 2000. The market also benefited from the healthy credit status of
many medium- to high-quality municipal issuers. Lower-quality bonds did not fare
as well, as concerns about a slower economy's impact on weaker credits kept many
of these bonds from rallying.
As shown in the chart on page 1, municipal bond yields declined during the
period after peaking in May, when the Federal Reserve last raised the federal
funds target rate. Short- and intermediate-term interest rates fell the most as
the Fed moved to the sidelines and the economy slowed a bit. Money market rates,
however, remained elevated as the federal funds target rate settled at 6.50%.
<PAGE>
SUMMIT MUNICIPAL MONEY MARKET FUND
----------------------------------
PERFORMANCE COMPARISON
----------------------
Periods Ended 10/31/00 6 Months 12 Months
---------------------- -------- ---------
Summit Municipal Money
Market Fund 1.99% 3.71%
Lipper Tax-Exempt Money
Market Funds Average 1.85 3.41
The Summit Municipal Money Market Fund outperformed the Lipper Tax-Exempt
Money Market Funds Average in both the 6- and 12-month periods ended October 31,
as shown in the table. Results were aided by significantly lower-than-average
expenses. During the past six months, the fund's weighted average maturity was
reduced from 51 days to 40 days. At the beginning of the period, our weighted
average maturity was 14 days longer than that of the peer group average, but as
of October 31 it was three days shorter.
Early in the period, the longer maturity posture enabled us to take
advantage of higher yields in the 6- to 12-month maturity range. However, with
high volatility in daily and weekly interest rates, very short-term yields ended
the period nearly as high as one-year yields. We expect to keep our maturities
close to the peer group average in the near term as long as daily and weekly
instruments continue to provide such attractive yields with virtually no
interest rate risk. Six- and 12-month yields were stable throughout the period
because of solid demand and municipalities' reduced short-term borrowing needs.
The fund's seven-day yield was 4.02%, as shown in the table on page 7, up
strongly from 3.10% a year ago and equivalent to a taxable yield of 6.28% for
investors in the 36% federal income tax bracket. Dividends per share during the
past six months increased to $0.020 from $0.017 in the previous period.
SUMMIT MUNICIPAL INTERMEDIATE FUND
----------------------------------
PERFORMANCE COMPARISON
----------------------
Periods Ended 10/31/00 6 Months 12 Months
---------------------- -------- ---------
Summit Municipal
Intermediate Fund 4.74% 6.70%
Lipper Intermediate Municipal
Debt Funds Average 4.47 6.21
The Summit Municipal Intermediate Fund delivered strong results during the
past six and 12 months, as shown in the table. The fund outperformed the Lipper
Intermediate Municipal Debt Funds Average for both periods, aided by our
portfolio strategy, our focus on yield, and our below-average expense ratio.
Returns reflected appreciation as well as income, as the fund's share price
rose to $10.30 from $10.07 on April 30. Dividends per share during the period
were steady at $0.24, as shown in the table on page 7. Our 30-day dividend yield
at period end was 4.67%, equivalent to a pretax yield of 7.30% for an investor
in the 36% federal income tax bracket.
<PAGE>
Our management style since the inception of the fund has been to focus on
buying and holding securities with a higher yield than alternatives with similar
degrees of interest rate risk. For instance, we like longer-maturity,
high-coupon bonds that are callable. (A callable bond is one that the issuer has
the right to pay off early, and investors are compensated for this with a
somewhat higher yield.) The fund also focuses on cheaper (that is, higher
yielding) sectors, such as health care, solid waste, and industrial development
bonds, where we can use our internal credit research to select bonds with stable
to improving credit outlooks. Finally, we invest in the lower tiers of the
investment-grade category, looking for bonds that are rated A or BBB that our
credit analysts find attractive. Over time, this combination -- together with
our below-average expenses -- should enhance the fund's yield. Lower-rated
investment-grade bonds should also exhibit less interest rate volatility than
high-grade bonds.
The fund's duration declined to 5.2 years from 5.5 years six months ago.
(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.) The fund's interest rate sensitivity
was reduced toward the end of the period because we anticipated an increase in
bond issuance in November. We expect to purchase some of those newly issued
bonds and thereby extend duration back out to 5.5 years. Credit quality rose to
AA- from A+. This is a marginal upgrade that might appear to contradict our
long-term strategy of overweighting higher-yielding sectors. However, the record
economic expansion has caused an upgrade in the overall quality of the municipal
bond market, leaving fewer BBB rated bonds to purchase.
SUMMIT MUNICIPAL INCOME FUND
----------------------------
PERFORMANCE COMPARISON
----------------------
Periods Ended 10/31/00 6 Months 12 Months
---------------------- -------- ---------
Summit Municipal
Income Fund 5.47% 8.03%
Lipper General Municipal
Debt Funds Average 5.15 7.36
Your fund posted strong returns over the past six and 12 months, as shown
in the table, exceeding the performance of the average competing fund (measured
by the Lipper General Municipal Debt Funds Average) in both periods. Returns
reflected appreciation in the share price to $10.13 from $9.86 over the past six
months, while dividends remained steady during the period at $0.26 per share. As
a result, the fund's 30-day dividend yield declined slightly, from 5.29% to
5.19%, equivalent to a taxable yield of 8.11% for an investor in the 36% tax
bracket.
<PAGE>
Robust demand and a continued reduction in supply contributed to solid
returns in the municipal bond market. Fund results were aided by our longer
duration posture, since bonds with maturities of 20 years or longer were the
best performers. (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.) We
took steps to increase the fund's exposure to longer-term bonds, lengthening the
fund's weighted average maturity to 16.4 years from 15.8. Duration declined to
8.1 years (still relatively long) from 8.4 years during the period, since more
of our holdings began trading to their call dates as rates declined.
There were no significant shifts in sector diversification. Our focus was
to maintain a weighted average credit quality of A+, particularly as below
investment-grade securities underperformed the general market. In our new
purchases, we emphasized bonds priced at a discount to their face value, which
allow for greater appreciation when interest rates decline. In addition, we made
a conscious effort to keep cash reserves to a minimum during the past six months
given our positive view of the market. Looking forward, we expect new municipal
borrowing to be light while demand remains strong, which should be good for bond
prices. Therefore, we will continue to focus on more interest-sensitive bonds.
OUTLOOK
-------
The economy's gentle rate of descent suggests that a fabled soft landing
may be in store. However, the future course depends on whether one of the two
typical recession culprits emerges. The first risk factor would be an external
shock, such as continued upward pressure on energy prices, more financial
dislocations in Asia, or perhaps a policy mistake by the European Central Bank
(ECB). If the ECB keeps monetary policy too tight in an effort to defend the
weak euro, growth in Europe could suffer and hurt U.S. exports.
*******************************
. . . Inflation readings
are broadly favorable, and
a soft landing remains the
most sensible expectation
for now.
*******************************
The second risk to the economy would be a potential miscalculation by the
Federal Reserve. Leading price and labor market indicators are pointing to
further moderation and eventual relaxation of labor market strains. If the Fed
fails to ease until the unemployment rate begins to rise and wage pressures
start to subside, downside economic momentum may be difficult to reverse.
Nevertheless, inflation readings are broadly favorable, and a soft landing
remains the most sensible expectation for now.
<PAGE>
Market participants seem to expect a Fed rate cut in the months ahead,
judging by the declining two-year Treasury note yield. Our forecast for the
economy and interest rates paints a positive backdrop for municipal bonds, whose
credit ratings should remain healthy given our expectation of moderate economic
growth. Municipal bonds continue to provide an attractive option for taxable
investors as the economy downshifts and lower-risk investments come back into
favor.
Respectfully submitted,
/s/
Mary J. Miller
Director, Municipal Bond Department
November 21, 2000
================================================================================
T. Rowe Price Summit Municipal Funds
------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
KEY STATISTICS
-------------- 4/30/00 10/31/00
------- --------
SUMMIT MUNICIPAL MONEY MARKET FUND
----------------------------------
Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months 0.017 0.020
For 12 months 0.031 0.036
Dividend Yield (7-Day Compound) * 4.15% 4.02%
Weighted Average Maturity (days) 51 40
Weighted Average Quality ** First Tier First Tier
SUMMIT MUNICIPAL INTERMEDIATE FUND
----------------------------------
Price Per Share $ 10.07 $ 10.30
Dividends Per Share
For 6 months 0.24 0.24
For 12 months 0.47 0.48
30-Day Dividend Yield * 4.80 4.67
30-Day Standardized Yield to Maturity 4.95 4.65
Weighted Average Effective Maturity (years) 7.1 6.7
Weighted Average Effective Duration (years) 5.5 5.2
Weighted Average Quality *** A+ AA-
<PAGE>
SUMMIT MUNICIPAL INCOME FUND
----------------------------
Price Per Share $ 9.86 $ 10.13
Dividends Per Share
For 6 months 0.26 0.26
For 12 months 0.50 0.52
30-Day Dividend Yield * 5.29 5.19
30-Day Standardized Yield to Maturity 5.38 5.24
Weighted Average Maturity (years) 15.8 16.4
Weighted Average Effective Duration (years) 8.4 8.1
Weighted Average Quality *** A+ A+
* Dividends earned for the last 30 days of each period indicated (seven
days for the money fund) 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 estab-lished by national rating agencies
or, if unrated, are deemed of comparable quality by T. Rowe Price.
*** Based on T. Rowe Price research.
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T. Rowe Price Summit Municipal Funds
------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
SECTOR DIVERSIFICATION
---------------------- Percent of Percent of
Net Assets Net Assets
4/30/00 10/31/00
------- --------
SUMMIT MUNICIPAL MONEY MARKET FUND
----------------------------------
Air and Sea Transportation Revenue 23% 24%
Industrial and Pollution Control Revenue 13 22
Housing Finance Revenue 11 15
Educational Revenue 15 9
General Obligation - State 9 7
Lease Revenue 4 4
Nuclear Revenue 1 3
Prerefunded Bonds 10 3
General Obligation - Local 4 2
All Other 8 3
Other Assets Less Liabilities 2 8
------- --------
Total 100% 100%
(continued on next page)
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<PAGE>
T. Rowe Price Summit Municipal Funds
------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
SECTOR DIVERSIFICATION
---------------------- Percent of Percent of
Net Assets Net Assets
4/30/00 10/31/00
------- --------
SUMMIT MUNICIPAL INTERMEDIATE FUND
----------------------------------
General Obligation - Local 12% 14%
Hospital Revenue 14 12
Solid Waste Revenue 8 8
Dedicated Tax Revenue 6 7
General Obligation - State 6 7
Water and Sewer Revenue 4 6
Electric Revenue 11 6
Air and Sea Transportation Revenue 6 6
Lease Revenue 5 5
Housing Finance Revenue 4 4
Educational Revenue 1 4
Nuclear Revenue 4 4
Life Care/Nursing Home Revenue 4 4
Industrial and Pollution Control Revenue 8 4
Escrowed to Maturity 3 3
Prerefunded Bonds 3 3
All Others 1 1
Other Assets Less Liabilities - 2
------- --------
Total 100% 100%
(continued on next page)
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T. Rowe Price Summit Municipal Funds
------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
SECTOR DIVERSIFICATION
---------------------- Percent of Percent of
Net Assets Net Assets
4/30/00 10/31/00
------- --------
SUMMIT MUNICIPAL INCOME FUND
----------------------------
Housing Finance Revenue 12% 13%
Hospital Revenue 12 10
Dedicated Tax Revenue 7 9
Air and Sea Transportation Revenue 8 8
General Obligation - Local 7 8
Nuclear Revenue 9 7
Lease Revenue 7 6
Water and Sewer Revenue 5 6
Life Care/Nursing Home Revenue 5 5
<PAGE>
Industrial and Pollution Control Revenue 7 5
Solid Waste Revenue 5 4
Educational Revenue 3 4
Prerefunded Bonds 3 3
Escrowed to Maturity 4 3
Ground Transportation Revenue 3 3
Electric Revenue 1 2
General Obligation - State 2 2
All Other 1 -
Other Assets Less Liabilities -1 2
------- --------
Total 100% 100%
================================================================================
T. Rowe Price Summit Municipal Funds
------------------------------------
PERFORMANCE COMPARISON
----------------------
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
----------------------------------
Lipper Tax-Exempt Summit Municipal
Money Market Money Market
Date Funds Average Fund
---------- ----------------- -----------------
10/29/1993 25,000 25,000
10/94 25,538 25,588
10/95 26,385 26,491
10/96 27,183 27,361
10/97 28,020 28,284
10/98 28,868 29,210
10/99 29,628 30,056
10/00 30,645 31,171
SUMMIT MUNICIPAL INTERMEDIATE FUND
----------------------------------
Lehman 7-Year Lipper Intermediate Summit Municipal
Municipal Municipal Debt Intermediate
Date Bond Index Funds Average Fund
---------- ----------------- ----------------- ----------------
10/29/1993 25,000 25,000 25,000
10/94 24,526 24,080 25,045
10/95 27,555 26,849 27,899
10/96 28,837 28,115 29,403
10/97 30,979 30,095 31,691
10/98 32,269 32,153 33,875
10/99 33,271 31,706 33,550
10/00 35,542 33,722 35,798
<PAGE>
SUMMIT MUNICIPAL INTERMEDIATE FUND
----------------------------------
Lehman Lipper General Summit
Municipal Bond Municipal Debt Municipal
Date Index Funds Average Income Fund
---------- ----------------- ----------------- ----------------
10/29/1993 25,000 25,000 25,000
10/94 23,910 23,550 23,905
10/95 27,458 26,765 27,416
10/96 29,025 28,195 29,345
10/97 31,490 30,553 32,438
10/98 34,013 32,765 35,177
10/99 33,411 31,425 33,917
10/00 36,255 33,733 36,640
AVERAGE ANNUAL COMPOUND TOTAL RETURN
------------------------------------
This table shows how each fund would have performed each year if its actual
(or cumulative)returns for the periods shown had been earned at a constant rate.
Since Inception
Periods Ended 10/31/00 1 Year 3 Years 5 Years Inception Date
---------------------- ------ ------- ------- --------- ---------
Summit Municipal Money
Market Fund 3.71% 3.29% 3.31% 3.20% 10/29/93
Summit Municipal
Intermediate Fund 6.70 4.15 5.11 5.26 10/29/93
Summit Municipal
Income Fund 8.03 4.14 5.97 5.61 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
money 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
------------------------------------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------
Year
Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment
income (loss) 0.037 0.029 0.032 0.033 0.032
Distributions
Net investment income (0.037) (0.029) (0.032) (0.033) (0.032)
------------------------------------------------------
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------------------------------------------------
<PAGE>
RATIOS/SUPPLEMENTAL DATA
------------------------
Total return* 3.71% 2.90% 3.27% 3.37% 3.28%
------------------------------------------------------
Ratio of total expenses
to average net assets 0.45% 0.45% 0.45% 0.45% 0.45%
------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 3.66% 2.87% 3.23% 3.31% 3.23%
------------------------------------------------------
Net assets, end of period
(in thousands) $ 213,002 $ 185,305 $ 170,924 $ 140,557 $ 96,264
------------------------------------------------------
* 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.
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
Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 10.12 $ 10.70 $ 10.51 $ 10.22 $ 10.17
------------------------------------------------------
Investment activities
Net investment
income (loss) 0.48 0.46 0.48 0.49 0.48
Net realized and
unrealized gain (loss) 0.18 (0.56) 0.23 0.29 0.05
------------------------------------------------------
Total from
investment activities 0.66 (0.10) 0.71 0.78 0.53
------------------------------------------------------
Distributions
Net investment income (0.48) (0.46) (0.48) (0.49) (0.48)
Net realized gain - (0.02) (0.04) - -
------------------------------------------------------
Total distributions (0.48) (0.48) (0.52) (0.49) (0.48)
------------------------------------------------------
NET ASSET VALUE
End of period $ 10.30 $ 10.12 $ 10.70 $ 10.51 $ 10.22
------------------------------------------------------
<PAGE>
RATIOS/SUPPLEMENTAL DATA
------------------------
Total return* 6.70% (0.96)% 6.89% 7.78% 5.39%
------------------------------------------------------
Ratio of total expenses
to average net assets 0.50% 0.50% 0.50% 0.50% 0.50%
------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 4.73% 4.43% 4.51% 4.67% 4.77%
------------------------------------------------------
Portfolio turnover rate 41.3% 38.5% 22.2% 53.8% 72.9%
------------------------------------------------------
Net assets, end of period
(in thousands) $ 79,407 $ 83,794 $ 75,928 $ 46,906 $ 29,175
------------------------------------------------------
* 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.
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
Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 9.88 $ 10.79 $ 10.44 $ 9.97 $ 9.84
------------------------------------------------------
Investment activities
Net investment
income (loss) 0.52 0.49 0.51 0.55 0.54
Net realized and
unrealized gain (loss) 0.25 (0.86) 0.35 0.47 0.13
------------------------------------------------------
Total from
investment activities 0.77 (0.37) 0.86 1.02 0.67
------------------------------------------------------
Distributions
Net investment income (0.52) (0.49) (0.51) (0.55) (0.54)
Net realized gain - (0.05) - - -
------------------------------------------------------
Total distributions (0.52) (0.54) (0.51) (0.55) (0.54)
------------------------------------------------------
NET ASSET VALUE
End of period $ 10.13 $ 9.88 $ 10.79 $ 10.44 $ 9.97
------------------------------------------------------
<PAGE>
RATIOS/SUPPLEMENTAL DATA
------------------------
Total return* 8.03% (3.58)% 8.44% 10.54% 7.04%
------------------------------------------------------
Ratio of total expenses
to average net assets 0.50% 0.50% 0.50% 0.50% 0.50%
------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 5.23% 4.71% 4.82% 5.38% 5.51%
------------------------------------------------------
Portfolio turnover rate 55.8% 79.7% 48.1% 35.7% 56.7%
------------------------------------------------------
Net assets, end of period
(in thousands) $ 69,227 $ 72,558 $ 65,958 $ 29,102 $ 15,909
------------------------------------------------------
* 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.
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Summit Municipal Money Market Fund
------------------------------------------------
PORTFOLIO OF INVESTMENTS October 31, 2000
------------------------
In thousands Par Value
------------ --- -----
ARIZONA 0.1%
Salt River Agricultural Improvement
& Power, Electric System
6.50%, 1/1/22 (Prerefunded 1/1/01+) $ 100 $ 102
--------------------------------------------------------------------------------
Total Arizona (Cost $102) 102
------------
COLORADO 1.4%
Student Obligation Bond Auth.
VRDN (Currently 4.40%)(AMBAC Insured) * 3,000 3,000
--------------------------------------------------------------------------------
Total Colorado (Cost $3,000) 3,000
------------
DISTRICT OF COLUMBIA 3.5%
District of Columbia, GO, 5.50%, 6/1/01
(Escrowed to Maturity) 495 497
--------------------------------------------------------------------------------
Metropolitan Washington Airport Auth., BAN, TECP
4.35%, 11/7-12/7/00 7,000 7,000
--------------------------------------------------------------------------------
Total District of Columbia (Cost $7,497) 7,497
------------
FLORIDA 0.1%
Florida Board of Ed., GO, Public Ed.
6.70%, 6/1/22 (Prerefunded 6/1/01+) 100 102
--------------------------------------------------------------------------------
Total Florida (Cost $102) 102
------------
<PAGE>
GEORGIA 5.0%
Atlanta Airport Fac.
7.15%, 1/1/03 (FGIC Insured)
(Prerefunded 1/1/01+) * 1,000 1,024
--------------------------------------------------------------------------------
Clayton County Dev. Auth., Delta Airlines
VRDN (Currently 4.25%) * 1,000 1,000
--------------------------------------------------------------------------
VRDN (Currently 4.35%) * 1,800 1,800
--------------------------------------------------------------------------------
Georgia, GO, 6.00%, 12/1/00 200 201
--------------------------------------------------------------------------------
Savannah Economic Dev. Auth.
Home Depot
VRDN (Currently 4.45%) * 2,250 2,250
--------------------------------------------------------------------------
VRDN (Currently 4.50%) * 4,400 4,400
--------------------------------------------------------------------------------
Total Georgia (Cost $10,675) 10,675
------------
HAWAII 0.2%
Honolulu, GO, 6.60%, 8/1/04 (Prerefunded 8/1/01+) $ 500 $ 513
--------------------------------------------------------------------------------
Total Hawaii (Cost $513) 513
------------
ILLINOIS 12.0%
Chicago Gas Supply, VRDN (Currently 4.37%) * 2,500 2,500
--------------------------------------------------------------------------------
Chicago Int'l. Airport, VRDN (Currently 4.15%) * 3,018 3,018
--------------------------------------------------------------------------------
Chicago O' Hare Int'l. Airport, TECP,
VRDN (Currently 4.60%) * 6,800 6,800
--------------------------------------------------------------------------------
Illinois, GO, 5.50%, 8/1/01 250 252
--------------------------------------------------------------------------------
Illinois Student Assistance Commission
VRDN (Currently 4.40%)
(MBIA Insured) * 4,000 4,000
--------------------------------------------------------------------------------
Lake County, PCR, W.W. Grainger,
VRDN (Currently 4.55%) * 1,500 1,500
--------------------------------------------------------------------------------
Madison County Enviromental Improvement
Shell Oil, VRDN (Currently 4.75%) * 2,800 2,800
--------------------------------------------------------------------------------
Southwestern Illinois Dev. Auth.
Shell Oil, VRDN (Currently 4.75%) * 4,800 4,800
--------------------------------------------------------------------------------
Total Illinois (Cost $25,670) 25,670
------------
<PAGE>
INDIANA 5.6%
Gibson County PCR, Toyota Motor Credit
VRDN (Currently 4.40%) * 9,000 9,000
--------------------------------------------------------------------------------
Indianapolis Airport Auth.,
Gas Utility, TECP, 4.30%, 11/10/00 3,000 3,000
--------------------------------------------------------------------------------
Total Indiana (Cost $12,000) 12,000
------------
KANSAS 0.7%
Wichita, GO
5.10%, 12/1/00 630 630
--------------------------------------------------------------------------
Temporary Improvement, 4.747%, 4/26/01 900 901
--------------------------------------------------------------------------------
Total Kansas (Cost $1,532) 1,531
------------
KENTUCKY 1.2%
Kentucky Housing, 4.40%, 12/01/00 * 2,500 2,500
--------------------------------------------------------------------------------
Total Kentucky (Cost $2,500) 2,500
------------
LOUISIANA 4.2%
Lake Charles Harbor & Terminal, Conoco
VRDN (Currently 4.35%) * $ 2,500 $ 2,500
--------------------------------------------------------------------------------
New Orleans Aviation Board
VRDN (Currently 4.40%)
(MBIA Insured) * 5,140 5,140
--------------------------------------------------------------------------------
Plaquemines Parish, British Petroleum
VRDN (Currently 4.75%) * 1,400 1,400
--------------------------------------------------------------------------------
Total Louisiana (Cost $9,040) 9,040
------------
MAINE 0.1%
Maine, GO, 7.50%, 12/15/00 100 100
--------------------------------------------------------------------------------
Total Maine (Cost $100) 100
------------
MARYLAND 4.1%
Howard County, GO, Metropolitan Dist., 5.00%, 2/15/01 45 45
--------------------------------------------------------------------------------
Maryland, GO, State and Local Fac., 4.90%, 2/1/01 100 100
--------------------------------------------------------------------------------
Maryland HHEFA
Baltimore City General Hosp.
6.90%, 7/1/13 (AMBAC Insured)
(Prerefunded 7/1/01+) 65 67
--------------------------------------------------------------------------------
Maryland Stadium Auth., VRDN (Currently 4.40%) * 8,000 8,000
--------------------------------------------------------------------------------
Univ. of Maryland Equipment, 5.50%, 12/1/00 115 115
--------------------------------------------------------------------------------
Washington Suburban Sanitary Dist., GO,
Refunding Water Supply., 6.00%, 11/1/00 400 400
--------------------------------------------------------------------------------
Total Maryland (Cost $8,727) 8,727
------------
<PAGE>
MASSACHUSETTS 0.3%
Massachusetts, GO
6.00%, 6/1/11 (FGIC Insured)
(Prerefunded 6/1/01+) 250 252
--------------------------------------------------------------------------
7.50%, 12/1/07 (MBIA Insured)
(Prerefunded 12/1/00+) 450 460
--------------------------------------------------------------------------------
Total Massachusetts (Cost $712) 712
------------
MICHIGAN 1.3%
Michigan State HDA
VRDN (Currently 4.35%)
(MBIA Insured) * $ 2,000 $ 2,000
--------------------------------------------------------------------------
3.95%, 12/1/00 * 770 770
--------------------------------------------------------------------------------
Total Michigan (Cost $2,770) 2,770
------------
MINNESOTA 1.5%
City of Rochester, 4.25 - 4.30%, 12/7/00 2,900 2,900
--------------------------------------------------------------------------------
Minnesota Public Fac. Auth., PCR, 6.15%, 3/1/01 200 201
--------------------------------------------------------------------------------
Total Minnesota (Cost $201) 3,101
------------
NEVADA 8.8%
Clark County Airport
VRDN (Currently 4.35%) * 7,700 7,700
--------------------------------------------------------------------------
VRDN (Currently 4.60%)
(MBIA Insured) * 240 240
--------------------------------------------------------------------------------
Nevada, GO, 5.90%, 5/1/01 500 504
--------------------------------------------------------------------------------
Nevada, Municipal Bond Bank
5.30%, 12/1/00 (Escrowed to Maturity) 300 300
--------------------------------------------------------------------------------
Nevada Housing Division, Multi Unit Housing
VRDN (Currently 4.45%)
(FNMA Guaranteed) * 9,900 9,900
--------------------------------------------------------------------------------
Total Nevada (Cost $18,644) 18,644
------------
NEW JERSEY 2.7%
Middlesex County Utilities Auth., Sewer
6.50%, 3/15/11 (FGIC Insured)
(Prerefunded 3/15/01+) 50 51
--------------------------------------------------------------------------------
New Jersey, GO
TECP, 4.25%, 11/6/00 5,000 5,000
-----------------------------------------------------------------------------
6.25%, 9/15/01 500 508
--------------------------------------------------------------------------------
Transportation Trust Fund Auth., 5.00%, 6/15/01 200 201
--------------------------------------------------------------------------------
Total New Jersey (Cost $5,760) 5,760
------------
<PAGE>
NORTH CAROLINA 1.5%
Charlotte, VRDN (Currently 4.45%)
(MBIA Insured) $ 3,000 $ 3,000
--------------------------------------------------------------------------
Charlotte, GO, Public Improvement, 6.50%, 2/1/08
(MBIA Insured) (Prerefunded 2/1/01+) 100 103
--------------------------------------------------------------------------
Water & Sewer, 6.50%, 2/1/09
(Prerefunded 2/1/01+) 50 51
--------------------------------------------------------------------------------
Total North Carolina (Cost $3,154) 3,154
------------
NORTH DAKOTA 0.1%
Univ. of North Dakota, 10.60%,
4/1/06 (Prerefunded 4/1/01+) 150 154
--------------------------------------------------------------------------------
Total North Dakota (Cost $154) 154
------------
OREGON 0.7%
Oregon Housing & Community Services Dept.
Single Family Mortgage, 4.30%, 3/29/01 * 1,540 1,540
--------------------------------------------------------------------------------
Total Oregon (Cost $1,540) 1,540
------------
PENNSYLVANIA 4.0%
Berks County, GO
7.25%, 11/15/20 (FGIC Insured)
(Prerefunded 11/15/00+) 50 51
--------------------------------------------------------------------------------
Pennsylvania Higher Ed. Assistance Agency, Student Loan
VRDN (Currently 4.40%)
(AMBAC Insured) * 8,300 8,300
--------------------------------------------------------------------------------
Pennsylvania Turnpike Commission
7.10%, 12/1/03 (FGIC Insured)
(Prerefunded 12/1/00+) 300 307
--------------------------------------------------------------------------------
Total Pennsylvania (Cost $8,658) 8,658
------------
SOUTH CAROLINA 1.8%
Berkeley County, PCR, Amoco Chemical
VRDN (Currently 4.60%) 1,000 1,000
--------------------------------------------------------------------------------
South Carolina Jobs Economic Dev. Auth.
Charleston Advanced Polymer Project
5.25%, 3/1/01 * $ 2,685 $ 2,685
--------------------------------------------------------------------------------
South Carolina Public Service Auth., Santee Cooper
6.00%, 7/1/31 (Prerefunded 7/1/01+) 235 237
--------------------------------------------------------------------------------
Total South Carolina (Cost $3,922) 3,922
------------
<PAGE>
SOUTH DAKOTA 3.5%
South Dakota Housing Dev. Agency
4.20%, 2/1/01 * 2,410 2,410
--------------------------------------------------------------------------
4.40%, 11/8/01 * 2,000 2,000
--------------------------------------------------------------------------
4.60%, 6/28/01 * 3,105 3,105
--------------------------------------------------------------------------------
Total South Dakota (Cost $7,515) 7,515
------------
TENNESSEE 1.8%
Memphis, GO, 5.50%, 7/1/01 * 1,170 1,178
--------------------------------------------------------------------------------
Tennessee Housing Dev. Agency, 4.75%, 3/15/01 * 2,600 2,600
--------------------------------------------------------------------------------
Total Tennessee (Cost $3,778) 3,778
------------
TEXAS 9.8%
Colorado River Municipal Water Dist., Water Systems
8.50%, 1/1/03 (AMBAC Insured)
(Prerefunded 1/1/01+) 1,000 1,007
--------------------------------------------------------------------------------
Gulf Coast Waste Disposal Auth., Amoco Oil
VRDN (Currently 4.75%) * 3,040 3,040
--------------------------------------------------------------------------------
Houston Airport
5.25%, 7/1/01 (FGIC Insured) * 2,350 2,361
--------------------------------------------------------------------------------
TECP, 4.30%, 12/7/00 * 5,000 5,000
--------------------------------------------------------------------------------
San Antonio Electric & Gas, 5.20%, 2/1/01 335 336
--------------------------------------------------------------------------------
South Texas Higher Ed. Auth.
VRDN (Currently 4.35%)
(MBIA Insured) * 1,000 1,000
--------------------------------------------------------------------------------
Texas, GO, Veteran's Land, VRDN (Currently 4.40%) * 1,000 1,000
--------------------------------------------------------------------------------
Trinity River Auth., PCR, VRDN (Currently 4.40%) 6,600 6,600
--------------------------------------------------------------------------------
Univ. of Texas Permanent Univ. Fund
6.60%, 7/1/04 (Prerefunded 7/1/01+) $ 485 $ 501
--------------------------------------------------------------------------------
Total Texas (Cost $20,845) 20,845
------------
UTAH 4.2%
Salt Lake City, Airport, VRDN (Currently 4.35%) * 1,000 1,000
--------------------------------------------------------------------------------
Salt Lake County Solid Waste, Kennecott Utah Copper
VRDN (Currently 4.60%) * 4,400 4,400
--------------------------------------------------------------------------------
Utah State Board of Regents, Student Loan
VRDN (Currently 4.40%)
(AMBAC Insured) * 3,500 3,500
--------------------------------------------------------------------------------
Total Utah (Cost $8,900) 8,900
------------
<PAGE>
VIRGINIA 4.8%
Capital Region Airport Commission, Richmond Int'l. Airport
VRDN (Currently 4.50%)
(AMBAC Insured) * 5,600 5,600
--------------------------------------------------------------------------------
Richmond, GO
Public Improvement
4.50%, 1/15/01 175 175
--------------------------------------------------------------------------
6.25%, 1/15/21
(Prerefunded 1/15/01+) 200 205
--------------------------------------------------------------------------
6.40%, 1/15/05
(Prerefunded 1/15/01+) 35 36
--------------------------------------------------------------------------------
Virginia HDA
4.25%, 12/7/00 (FHA Guaranteed) * 2,900 2,900
--------------------------------------------------------------------------
5.45%, 5/1/01 * 200 201
--------------------------------------------------------------------------
5.75%, 1/1/01 * 1,000 1,002
--------------------------------------------------------------------------------
Total Virginia (Cost $10,118) 10,119
------------
WASHINGTON 3.1%
Port of Seattle, 6.00%, 11/1/00 (FGIC Insured) * $ 1,325 $ 1,325
--------------------------------------------------------------------------------
Tacoma Electric Systems, 5.45%, 1/1/01 (AMBAC Insured) 250 250
--------------------------------------------------------------------------------
Washington, GO
4.25%, 1/1/01 1,000 1,000
--------------------------------------------------------------------------
5.60%, 9/1/01 200 202
--------------------------------------------------------------------------
6.20%, 9/1/01 3,000 3,045
--------------------------------------------------------------------------------
Washington State Housing Fin. Commission
Single Family, 4.40%, 4/1/01 685 685
--------------------------------------------------------------------------------
Total Washington (Cost $6,507) 6,507
------------
WISCONSIN 1.4%
Milwaukee, GO, 5.00%, 11/15/00 1,000 1,000
--------------------------------------------------------------------------------
Wisconsin, GO, TECP, 4.40%, 1/17/01 2,000 2,000
--------------------------------------------------------------------------------
Total Wisconsin (Cost $3,000) 3,000
------------
WYOMING 2.4%
Lincoln County, PCR, Exxon, VRDN (Currently 4.65%) * 5,200 5,200
--------------------------------------------------------------------------------
Total Wyoming (Cost $5,200) 5,200
------------
<PAGE>
TOTAL INVESTMENT IN SECURITIES
91.9% of Net Assets (Cost $195,736) $ 195,736
Other Assets Less Liabilities 17,266
------------
NET ASSETS $ 213,002
------------
* Interest subject to alternative minimum tax
+ Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BAN Bond Anticipation Note
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FNMA Federal National Mortgage Assoc.
GO General Obligation
HDA Housing Development Authority
HHEFA Health & Higher Educational Facility Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
TECP Tax-Exempt Commercial Paper
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Summit Municipal Money Market Fund
------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
-----------------------------------
In thousands
ASSETS
------
Investments in securities, at value (cost $195,736) $ 195,736
Receivable for investment securities sold 17,888
Other assets 1,844
------------
Total assets 215,46
------------
LIABILITIES
-----------
Total liabilities 2,466
------------
NET ASSETS $ 213,002
------------
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ (6)
Paid-in-capital applicable to 213,003,786 shares of
$0.0001 par value capital stock outstanding;
4,000,000,000 shares of the Corporation authorized 213,008
------------
NET ASSETS $ 213,002
------------
NET ASSET VALUE PER SHARE $ 1.00
------------
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Summit Municipal Intermediate Fund
------------------------------------------------
STATEMENT OF NET ASSETS October 31, 2000
-----------------------
In thousands Par Value
------------ --- -----
ALASKA 0.6%
Alaska HFC, 5.75%, 12/1/11 * $ 500 $ 513
--------------------------------------------------------------------------------
Total Alaska (Cost $498) 513
------------
ARIZONA 2.0%
Arizona Transportation Board
Maricopa County Regional Area Road Fund
5.50%, 7/1/04 1,000 1,034
--------------------------------------------------------------------------------
Salt River Agricultural Improvement
& Power, 6.50%, 1/1/04 500 529
--------------------------------------------------------------------------------
Total Arizona (Cost $1,556) 1,563
------------
CALIFORNI 1.7%
California Public Works Board, Dept. of Corrections
6.00%, 11/1/05 (MBIA Insured) 250 270
--------------------------------------------------------------------------------
Foothill/Eastern Transportation Corridor Agency
Toll Road
Zero Coupon
1/1/05 (Escrowed to Maturity) 350 292
--------------------------------------------------------------------------
Zero Coupon, 1/15/17 (MBIA Insured) 500 201
--------------------------------------------------------------------------------
Southern California Public Power Auth.
5.96%, 7/1/17 (FGIC Insured)
(Escrowed to Maturity) 600 608
--------------------------------------------------------------------------------
Total California (Cost $1,341) 1,371
------------
COLORADO 0.9%
Denver City & County Airport
6.75%, 11/15/22 (MBIA Insured)
(Prerefunded 11/15/02+) * 105 111
--------------------------------------------------------------------------
6.75%, 11/15/22 (MBIA Insured) * 395 415
--------------------------------------------------------------------------------
E-470 Public Highway Auth.
Zero Coupon, 8/31/26
(Prerefunded 8/31/05+) 1,000 166
--------------------------------------------------------------------------------
Total Colorado (Cost $675) 692
------------
<PAGE>
CONNECTICUT 2.2%
Connecticut, GO, 5.25%, 6/15/13 (FGIC Insured) $ 1,000 $ 1,022
--------------------------------------------------------------------------------
Mashantucket Western Pequot Tribe, (144a)
5.60%, 9/1/09 200 199
--------------------------------------------------------------------------
5.70%, 9/1/12 500 491
--------------------------------------------------------------------------------
Total Connecticut (Cost $1,710) 1,712
------------
DISTRICT OF COLUMBIA 1.9%
Metropolitan Washington Airport Auth.
6.625%, 10/1/12 (MBIA Insured) * 500 525
--------------------------------------------------------------------------------
District of Columbia, GO, 5.20%,
6/1/04 (AMBAC Insured) 1,000 1,018
--------------------------------------------------------------------------------
Total District of Columbia (Cost $1,539) 1,543
------------
FLORIDA 6.1%
Dade County, Resource Recovery Fac.
6.00%, 10/1/06 (AMBAC Insured) * 500 531
--------------------------------------------------------------------------------
Dade County School Board
5.60%, 8/1/26 (AMBAC Insured)
(Prerefunded 8/1/06+) 1,280 1,356
--------------------------------------------------------------------------
COP, 5.75%, 5/1/08 (MBIA Insured) 365 383
--------------------------------------------------------------------------------
Dade County School Dist., GO,
6.00%, 7/15/04 (MBIA Insured) 1,000 1,050
--------------------------------------------------------------------------------
Florida Division of Bond Fin.
Dept. of Environmental Preservation
6.00%, 7/1/06 (MBIA Insured) 500 535
--------------------------------------------------------------------------------
Indian Trace Community Dev. Dist., Water Management
5.50%, 5/1/07 (MBIA Insured) 500 524
--------------------------------------------------------------------------------
Leesburg Hosp., Regional Medical Center, 5.20%, 7/1/02 500 502
--------------------------------------------------------------------------------
Total Florida (Cost $4,755) 4,881
------------
GEORGIA 3.3%
Coweta County Residential Care Fac. for the Elderly Auth.
Wesley Woods of Newnan-Peachtree City
7.625%, 10/1/06 400 414
--------------------------------------------------------------------------------
Private Colleges & Univ. Auth.,
Emory Univ., 5.75%, 11/1/18 1,955 2,026
--------------------------------------------------------------------------------
Savannah Economic Dev. Auth., College of Art & Design
6.80%, 10/1/19 $ 200 $ 205
--------------------------------------------------------------------------------
Total Georgia (Cost $2,601) 2,645
------------
<PAGE>
HAWAII 2.7%
Hawaii, Airport, 6.70%, 7/1/05 (MBIA Insured) * 500 516
--------------------------------------------------------------------------------
Hawaii Dept. of Budget and Fin.
Wilcox Memorial Hosp., 5.50%, 7/1/09 1,690 1,610
--------------------------------------------------------------------------------
Total Hawaii (Cost $2,258) 2,126
------------
ILLINOIS 4.0%
Chicago, GO, 5.75%, 1/1/05 (AMBAC Insured) 660 688
--------------------------------------------------------------------------------
Chicago Board of Ed., GO,
Zero Coupon, 12/1/12 (FGIC Insured) 1,200 620
--------------------------------------------------------------------------------
Illinois HFA
Edward Obligated Group
5.00%, 2/15/09 (AMBAC Insured) 500 502
--------------------------------------------------------------------------
Glen Oaks Medical Center
9.50%, 11/15/15 (Escrowed to Maturity) 65 67
--------------------------------------------------------------------------
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) 1,000 993
--------------------------------------------------------------------------------
Total Illinois (Cost $3,137) 3,152
------------
INDIANA 1.6%
Goshen, Greencroft Obligation Group, 5.20%, 8/15/06 750 704
--------------------------------------------------------------------------------
St. Joseph County Economic Dev.
Madison Center
5.10%, 2/15/05 260 256
--------------------------------------------------------------------------
5.25%, 2/15/07 295 289
--------------------------------------------------------------------------------
Total Indiana (Cost $1,301) 1,249
------------
IOWA 0.3%
Iowa HFA, Wesley Retirement, 6.25%, 2/1/12 250 233
--------------------------------------------------------------------------------
Total Iowa (Cost $250) 233
------------
KENTUCKY 1.8%
Kenton County Airport Board, Delta Airlines
7.50%, 2/1/12 * $ 1,000 $ 1,035
--------------------------------------------------------------------------------
Kentucky Property & Buildings Commission
6.40%, 11/1/01 390 397
--------------------------------------------------------------------------------
Total Kentucky (Cost $1,447) 1,432
------------
<PAGE>
LOUISIANA 1.3%
Plaquemines Parish, British Petroleum Amoco
VRDN (Currently 4.75%) * 1,000 1,000
--------------------------------------------------------------------------------
Total Louisiana (Cost $1,000) 1,000
------------
MARYLAND 6.3%
Maryland Energy Fin. Admin.
Wheelabrator Technologies
5.85%, 12/1/05 * 1,510 1,555
--------------------------------------------------------------------------
6.30%, 12/1/10 * 250 262
--------------------------------------------------------------------------------
Maryland HHEFA, Good Samaritan Hosp.
5.50%, 7/1/05 (Escrowed to Maturity) 700 727
--------------------------------------------------------------------------------
Northeast Maryland Waste Disposal Auth.
IDR, Baltimore Resco Retrofit, 5.00%, 1/1/12 * 700 607
--------------------------------------------------------------------------------
Montgomery County Resources
6.20%, 7/1/10 * 750 782
--------------------------------------------------------------------------
6.30%, 7/1/16 (MBIA Insured) * 500 519
--------------------------------------------------------------------------
7.10%, 1/1/03 (MBIA Insured) 550 579
--------------------------------------------------------------------------------
Total Maryland (Cost $4,936) 5,031
------------
MASSACHUSETTS 1.4%
Massachusetts, GO, 6.30%, 11/1/05 (FGIC Insured) 250 268
--------------------------------------------------------------------------------
Massachusetts Water Pollution, 6.00%, 8/1/15 800 853
--------------------------------------------------------------------------------
Total Massachusetts (Cost $1,062) 1,121
------------
MICHIGAN 6.4%
Garden City HFA, Garden City Hosp., 5.375%, 9/1/03 1,125 1,079
--------------------------------------------------------------------------------
Greater Detroit Resource Recovery Auth.
6.25%, 12/13/05 (AMBAC Insured) 1,000 1,072
--------------------------------------------------------------------------------
Michigan HFA, Mercy Health, 5.00%, 8/15/12 $ 1,395 $ 1,394
--------------------------------------------------------------------------------
Michigan Hosp. Fin. Auth., Ascension Health
5.30%, 11/15/33 1,000 997
--------------------------------------------------------------------------------
Michigan Municipal Bond Auth.
Clean Water Revolving Fund, 5.50%, 10/1/04 500 517
--------------------------------------------------------------------------------
Total Michigan (Cost $5,037) 5,059
------------
<PAGE>
MISSOURI 0.9%
Good Shepherd Nursing Home Dist.
Nursing Home Fac., 5.45%, 8/15/08 395 365
--------------------------------------------------------------------------------
St. Louis Airport, 6.25%, 1/1/03 350 355
--------------------------------------------------------------------------------
Total Missouri (Cost $748) 720
------------
NEVADA 1.2%
Clark County Airport, Las Vegas/McCarran Int'l. Airport
5.00%, 7/1/16 (MBIA Insured) 1,000 960
--------------------------------------------------------------------------------
Total Nevada (Cost $894) 960
------------
NEW HAMPSHIRE 0.5%
New Hampshire Housing Fin. Auth.
Single Family
5.90%, 1/1/01 * 100 100
--------------------------------------------------------------------------
5.90%, 7/1/01 * 100 101
--------------------------------------------------------------------------
6.00%, 7/1/02 * 105 107
--------------------------------------------------------------------------
6.10%, 1/1/03 * 105 107
--------------------------------------------------------------------------------
Total New Hampshire (Cost $410) 415
------------
NEW JERSEY 5.4%
New Jersey Economic Dev. Auth., Winchester Gardens
8.625%, 11/1/25 210 222
--------------------------------------------------------------------------------
New Jersey Ed. Fac. Auth., Georgian Court College
5.00%, 7/1/04 475 473
--------------------------------------------------------------------------------
New Jersey Transportation Trust Fund Auth.
Transportation Systems
5.625%, 6/15/14 1,000 1,055
--------------------------------------------------------------------------
5.75%, 6/15/11 1,000 1,074
--------------------------------------------------------------------------------
Port Auth. of New York & New Jersey
5.875%, 9/15/15 (FGIC Insured) * $ 1,000 $ 1,037
--------------------------------------------------------------------------
6.50%, 10/1/01 * 400 405
--------------------------------------------------------------------------------
Total New Jersey (Cost $4,163) 4,266
------------
NEW YORK 8.4%
Dormitory Auth. of the State of New York
City Univ.
5.50%, 7/1/03 1,000 1,023
--------------------------------------------------------------------------
6.875%, 7/1/14 (MBIA Insured)
(Prerefunded 7/1/04+) 350 385
--------------------------------------------------------------------------
<PAGE>
Mental Health Services Fac., 6.00%, 2/15/06 1,500 1,590
-----------------------------------------------------------------------------
Nyack Hosp., 6.00%, 7/1/06 250 249
-----------------------------------------------------------------------------
State Univ. Ed. Fac., GO, 7.40%, 5/15/01 150 153
--------------------------------------------------------------------------------
Nassau County IDA, Hofstra Univ.
6.70%, 1/1/09 (Prerefunded 1/1/05+) 250 275
--------------------------------------------------------------------------------
New York City, GO
5.25%, 8/1/03 1,000 1,019
--------------------------------------------------------------------------
7.00%, 8/1/04 1,000 1,081
--------------------------------------------------------------------------------
New York State Environmental Fac.
Water Revolving Fund, 6.875%, 6/15/10 50 52
--------------------------------------------------------------------------------
New York State Housing Fin. Agency
Service Contract Obligation
5.85%, 9/15/09 300 316
--------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner Mortgage
5.80%, 10/1/06 * 500 510
--------------------------------------------------------------------------------
Total New York (Cost $6,500) 6,653
------------
NORTH CAROLINA 0.9%
North Carolina Eastern Municipal
Power Agency, 6.70%, 1/1/19 700 728
--------------------------------------------------------------------------------
Total North Carolina (Cost $700) 728
------------
OHIO 1.5%
Fairfield Economic Dev. Auth., Beverly Enterprises
8.50%, 1/1/03 130 133
--------------------------------------------------------------------------------
Ohio Housing Fin. Agency,
Residential, 5.025%, 3/1/21 * 1,030 1,021
--------------------------------------------------------------------------------
Total Ohio (Cost $1,164) 1,154
------------
PENNSYLVANIA 5.5%
Allegheny County Sanitary Auth. Sewer
5.75%, 12/1/16 (MBIA Insured) $ 1,410 $ 1,475
--------------------------------------------------------------------------------
Beaver County IDA, PCR, Toledo Edison, 4.85%, 6/1/30 500 487
--------------------------------------------------------------------------------
Pennsylvania, GO, 5.375%, 11/15/03 (FGIC Insured) 500 514
--------------------------------------------------------------------------------
Pennsylvania Intergovernmental Cooperative Auth.
7.00%, 6/15/04 (FGIC Insured)
(Escrowed to Maturity) 400 433
--------------------------------------------------------------------------------
<PAGE>
Philadelphia Auth. for Ind. Dev.,
Pauls Run, 5.85%, 5/15/13 500 442
--------------------------------------------------------------------------------
Philadelphia HHEFA, Childrens Hosp., 5.25%, 2/15/06 1,000 1,003
--------------------------------------------------------------------------------
Total Pennsylvania (Cost $4,364) 4,354
------------
SOUTH CAROLINA 8.6%
Berkeley County, PCR, Amoco Chemical
VRDN (Currently 4.75%) * 500 500
--------------------------------------------------------------------------------
Charleston County Resource Recovery, Foster Wheeler
5.10%, 1/1/08 (AMBAC Insured) * 1,700 1,715
--------------------------------------------------------------------------------
South Carolina, GO, School Fac., 5.75%, 1/1/08 3,000 3,203
--------------------------------------------------------------------------------
South Carolina Public Service Auth.
6.25%, 1/1/05 (MBIA Insured) 1,350 1,432
--------------------------------------------------------------------------------
Total South Carolina (Cost $6,721) 6,850
------------
TENNESSEE 1.2%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA Insured) * 200 219
--------------------------------------------------------------------------------
Tennessee Housing Dev. Agency
4.95%, 7/1/10 * 420 417
--------------------------------------------------------------------------
5.05%, 7/1/11 * 355 353
--------------------------------------------------------------------------------
Total Tennessee (Cost $981) 989
------------
TEXAS 7.7%
Abilene Health Fac. Dev.,
Sears Methodist Retirement System
5.40%, 11/15/09 700 636
--------------------------------------------------------------------------------
Austin Airport, 5.75%, 11/15/08 (MBIA Insured) * 500 522
--------------------------------------------------------------------------------
Brazos Higher Ed. Auth., Student Loan, 5.95%, 6/1/02 * 470 473
--------------------------------------------------------------------------------
Dallas-Fort Worth Int'l. Airport Fac., 6.05%, 5/1/29 * 250 252
--------------------------------------------------------------------------------
Harris County Health Fac. Dev., Texas Childrens Hosp.
5.375%, 10/1/12 $ 800 $ 806
--------------------------------------------------------------------------------
Houston, Water & Sewer, 7.00%, 12/1/03 (AMBAC Insured) 270 289
--------------------------------------------------------------------------------
<PAGE>
Lower Colorado River Auth.,
5.75%, 5/15/11 (FSA Insured) 1,370 1,455
--------------------------------------------------------------------------------
North East Independent School Dist., GO, 6.00%, 2/1/16 1,100 1,160
--------------------------------------------------------------------------------
Tarrant County Health Fac. Dev., Texas Health Resources
5.75%, 2/15/10 (MBIA Insured) 500 510
--------------------------------------------------------------------------------
Total Texas (Cost $6,072) 6,103
------------
VIRGINIA 3.2%
Bedford County IDA, PCR, Georgia-Pacific, 4.60%, 8/1/04 200 198
--------------------------------------------------------------------------------
Southeastern Public Service Auth., Solid Waste Systems
5.875%, 7/1/08 * 500 503
--------------------------------------------------------------------------------
Virginia Public School Auth.,
School Financing, GO, 5.00%, 1/1/04 1,300 1,320
--------------------------------------------------------------------------------
Virginia Transportation Board
Northern Virginia Transportation Dist.
5.80%, 5/15/04 500 521
--------------------------------------------------------------------------------
Total Virginia (Cost $2,522) 2,542
------------
WASHINGTON 2.6%
King County, GO, 5.25%, 12/1/07 1,500 1,553
--------------------------------------------------------------------------------
Washington Health Care Fac. Auth.
Virginia Mason Medical Center
6.00%, 8/15/08 (MBIA Insured) 500 534
--------------------------------------------------------------------------------
Total Washington (Cost $2,082) 2,087
------------
WEST VIRGINIA 4.2%
Putnam County, PCR, Appalachian Power, 6.60%, 7/1/19 3,000 3,046
--------------------------------------------------------------------------------
West Virginia, GO, Zero Coupon, 11/1/12 (FGIC Insured) 600 321
--------------------------------------------------------------------------------
Total West Virginia (Cost $3,474) 3,367
------------
WISCONSIN 2.2%
Milwaukee Metropolitan
Sewage Dist., GO, 6.25%, 10/1/05 1,600 1,713
--------------------------------------------------------------------------------
Total Wisconsin (Cost $1,681) 1,713
------------
TOTAL INVESTMENTS IN SECURITIES
98.5% of Net Assets (Cost $77,579) $ 78,224
Other Assets Less Liabilities 1,183
------------
<PAGE>
NET ASSETS $ 79,407
------------
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ (1,511)
Net unrealized gain (loss) 645
Paid-in-capital applicable to 7,711,796 shares of $0.0001 par
value capital stock outstanding; 4,000,000,000 shares
of the Corporation authorized 80,273
------------
NET ASSETS $ 79,407
------------
NET ASSET VALUE PER SHARE $ 10.30
------------
* Interest subject to alternative minimum tax
+ Used in determining portfolio maturity
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers - total of such securities at period-end amounts to
0.9% of net assets.
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
IDR Industrial Development Revenue
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
------------------------------------------
Statement of Net Assets October 31, 2000
-----------------------
In thousands Par Value
------------ --- -----
ALABAMA 0.7%
Baldwin County Eastern Shore Health Care Auth.
Thomas Hosp., 6.75%, 4/1/21 $ 200 $ 187
--------------------------------------------------------------------------------
Decatur Ind. Dev. Board
Solid Waste Disposal, Amoco Chemical
VRDN (Currently 4.75%) * 300 300
--------------------------------------------------------------------------------
Total Alabama (Cost $496) 487
------------
<PAGE>
ALASKA 3.1%
Alaska HFC, 5.75%, 12/1/11 * 1,150 1,180
--------------------------------------------------------------------------------
Alaska Student Loan Corp.
5.10%, 7/1/10 (AMBAC Insured) * 1,000 991
--------------------------------------------------------------------------------
Total Alaska (Cost $2,142) 2,171
------------
ARIZONA 2.4%
Phoenix, GO, 5.875%, 7/1/18 575 602
--------------------------------------------------------------------------------
Phoenix Civic Improvement Corp.
6.25%, 7/1/17 (FGIC Insured) 1,000 1,087
--------------------------------------------------------------------------------
Total Arizona (Cost $1,619) 1,689
------------
CALIFORNIA 3.8%
Chula Vista, Sub-Gateway Town Center, 7.50%, 1/1/32 * 500 468
--------------------------------------------------------------------------------
Foothill / Eastern Transportation Corridor Agency
Toll Road
Zero Coupon, 1/15/17 (MBIA Insured) 500 201
--------------------------------------------------------------------------
Zero Coupon, 1/1/26
(Escrowed to Maturity) 500 122
--------------------------------------------------------------------------------
Los Angeles Regional Airports
LAX Airport Improvement, IDR, 5.65%, 8/1/17 * 965 833
--------------------------------------------------------------------------------
Placentia PFA, Special Tax, 6.60%, 9/1/15 100 102
--------------------------------------------------------------------------------
Pomona Unified School Dist., GO
6.15%, 8/1/15 (MBIA Insured) 145 162
--------------------------------------------------------------------------------
Poway Community Fac. Dist., 6.75%, 8/15/15 425 454
--------------------------------------------------------------------------------
Santa Ana Housing Auth., Villa Del Sol Apartments
5.65%, 11/1/21
(FNMA Guaranteed) * $ 300 $ 306
--------------------------------------------------------------------------------
Total California (Cost $2,745) 2,648
------------
COLORADO 0.5%
Arapahoe County Colorado Capital Improvement
Zero Coupon, 8/31/26
(Prerefunded 8/31/05+) 2,000 331
--------------------------------------------------------------------------------
Total Colorado (Cost $314) 331
------------
CONNECTICUT 0.8%
Mashantucket Western Pequot Tribe, (144a)
5.70%, 9/1/12 250 246
--------------------------------------------------------------------------------
5.75%, 9/1/27 300 275
--------------------------------------------------------------------------------
Total Connecticut (Cost $535) 521
------------
<PAGE>
DISTRICT OF COLUMBIA 1.5%
District of Columbia, GO, 6.00%, 6/1/17 (MBIA Insured) 1,000 1,064
--------------------------------------------------------------------------------
Total District of Columbia (Cost $1,020) 1,064
------------
GEORGIA 2.9%
Athens-Clarke Residential Care Fac. for the Elderly Auth.
Wesley Woods of Athens, 6.375%, 10/1/27 200 174
--------------------------------------------------------------------------------
Atlanta Airport, 6.25%, 1/1/14 (FGIC Insured) * 1,000 1,080
--------------------------------------------------------------------------------
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 * 210 214
--------------------------------------------------------------------------------
Municipal Electric Auth. of Georgia
5.70%, 1/1/19 (MBIA Insured) 100 103
--------------------------------------------------------------------------------
Rockdale County Dev. Auth., Solid Waste Disposal
Visy Paper, 7.50%, 1/1/26 * 225 230
--------------------------------------------------------------------------------
Total Georgia (Cost $2,000) 2,030
------------
IDAHO 0.1%
Idaho Housing Agency, Single Family
6.60%, 7/1/27 (FHA Guaranteed) * $ 85 $ 87
--------------------------------------------------------------------------------
Total Idaho (Cost $85) 87
------------
ILLINOIS 6.0%
Chicago, GO, 6.75%, 1/1/35 (FGIC Insured) 500 558
--------------------------------------------------------------------------------
Chicago Board of Ed., GO
School Reform Board
Zero Coupon, 12/1/15 (AMBAC Insured) 1,000 436
--------------------------------------------------------------------------
5.25%, 12/1/17 (FGIC Insured) 1,000 990
--------------------------------------------------------------------------------
DuPage County, Windsor Park Manor, 7.20%, 12/1/14 200 199
--------------------------------------------------------------------------------
Illinois HFA
Community Hosp. of Ottawa, 6.85%, 8/15/24 200 200
--------------------------------------------------------------------------------
Glen Oaks Medical Center
7.00%, 11/15/19
(Escrowed to Maturity) 145 157
--------------------------------------------------------------------------
9.50%, 11/15/15
(Escrowed to Maturity) 65 67
--------------------------------------------------------------------------
<PAGE>
Highland Park Hosp.
5.75%, 10/1/17 (MBIA Insured) 140 142
--------------------------------------------------------------------------
Holy Cross Hosp., 6.70%, 3/1/14 300 255
-----------------------------------------------------------------------------
Riverside Health Systems, 6.00%, 11/15/18 365 349
--------------------------------------------------------------------------------
Will County Environmental, Exxon Mobil
VRDN (Currently 4.70%) 800 800
--------------------------------------------------------------------------------
Total Illinois (Cost $4,239) 4,153
------------
IOWA 1.6%
Iowa Fin. Auth., Single Family Mortgage, 5.70%, 1/1/27 990 973
--------------------------------------------------------------------------------
Iowa HFA, Wesley Retirement, 6.25%, 2/1/12 160 149
--------------------------------------------------------------------------------
Total Iowa (Cost $1,098) 1,122
------------
KANSAS 0.4%
City of Olathe, Aberdeen Village, 8.00%, 5/15/30 250 251
--------------------------------------------------------------------------------
Total Kansas (Cost $243) 251
------------
KENTUCKY 1.2%
Kenton County Airport Board, Delta Airlines
7.50%, 2/1/20 * $ 100 $ 103
--------------------------------------------------------------------------------
Kentucky Economic Dev. Fin. Auth.
Norton Healthcare
Zero Coupon, 10/1/13 (MBIA Insured) 1,500 736
--------------------------------------------------------------------------------
Total Kentucky (Cost $823) 839
------------
LOUISIANA 2.2%
New Orleans, GO, 5.50%, 12/1/21 (FGIC Insured) 1,000 999
--------------------------------------------------------------------------------
St. Charles Parish, PCR, 4.85%, 6/1/02 500 496
--------------------------------------------------------------------------------
Total Louisiana (Cost $1,442) 1,495
------------
MAINE 1.5%
Maine Housing Auth., 6.40%, 11/15/19 * 1,000 1,044
--------------------------------------------------------------------------------
Total Maine (Cost $1,000) 1,044
------------
MARYLAND 3.8%
Maryland CDA, Single Family, 7.25%, 4/1/19 * 140 144
--------------------------------------------------------------------------------
Maryland Economic Dev., 5.50%, 7/15/09 445 434
--------------------------------------------------------------------------------
Maryland Energy Fin. Admin.,
Wheelabrator Technologies 6.45%, 12/1/16 * 500 511
--------------------------------------------------------------------------------
<PAGE>
Maryland HHEFA, Univ. of Maryland Medical System
6.625%, 7/1/20 700 721
--------------------------------------------------------------------------------
Northeast Maryland Waste Disposal Auth.
IDR, Baltimore Resco Retrofit, 5.00%, 1/1/12 * 300 260
--------------------------------------------------------------------------------
Montgomery County Resources, 6.20%, 7/1/10 * 500 522
--------------------------------------------------------------------------------
Total Maryland (Cost $2,570) 2,592
------------
MASSACHUSETTS 3.5%
Massachusetts Bay Transportation Auth., 5.25%, 7/1/30 1,000 948
--------------------------------------------------------------------------------
Massachusetts HEFA, Melrose Wakefield Healthcare
5.375%, 7/1/05 (Escrowed to Maturity) 350 363
--------------------------------------------------------------------------------
Massachusetts Water Pollution, 6.00%, 8/1/18 1,050 1,134
--------------------------------------------------------------------------------
Total Massachusetts (Cost $2,356) 2,445
------------
MICHIGAN 2.1%
Michigan Hosp. Fin. Auth., Mercy Health, 5.50%, 8/15/20 $ 500 $ 484
--------------------------------------------------------------------------------
Michigan Strategic Fund, IDR, WMX Technologies
6.00%, 12/1/13 * 1,000 940
--------------------------------------------------------------------------------
Total Michigan (Cost $1,515) 1,424
------------
MINNESOTA 0.3%
Minneapolis, Walker Methodist, 5.875%, 11/15/18 250 221
--------------------------------------------------------------------------------
Total Minnesota (Cost $247) 221
------------
MISSISSIPPI 0.8%
Mississippi Business Fin., PCR, Systems Energy Resources
5.875%, 4/1/22 500 459
--------------------------------------------------------------------------------
Warren County, PCR, Mississippi Power and Light
7.00%, 4/1/22 100 103
--------------------------------------------------------------------------------
Total Mississippi (Cost $597) 562
------------
MISSOURI 1.5%
Missouri Higher Ed. Loan Auth.,
Student Loan, 5.85%, 7/15/10 * 1,000 1,034
--------------------------------------------------------------------------------
Total Missouri (Cost $1,000) 1,034
------------
<PAGE>
NEVADA 2.0%
Clark County Airport
Las Vegas/ McCarran Int'l. Airport
5.00%, 7/1/16 (MBIA Insured) 1,000 960
--------------------------------------------------------------------------
6.00%, 7/1/17 (MBIA Insured) * 250 256
--------------------------------------------------------------------------------
Clark County, IDR, Southwest Gas, 6.50%, 12/1/33 * 200 194
--------------------------------------------------------------------------------
Total Nevada (Cost $1,325) 1,410
------------
NEW HAMPSHIRE 1.0%
New Hampshire HHEFA, Wentworth Douglass Hosp.
5.375%, 1/1/15 (MBIA Insured) 500 505
--------------------------------------------------------------------------------
New Hampshire Housing Fin. Auth., Single Family
6.85%, 7/1/14 * $ 165 $ 169
--------------------------------------------------------------------------------
Total New Hampshire (Cost $663) 674
------------
NEW JERSEY 5.9%
New Jersey Economic Dev. Auth.
Evergreens, 6.00%, 10/1/17 130 112
--------------------------------------------------------------------------------
Transportation Project, GO
5.75%, 5/1/10 (FSA Insured) 1,000 1,076
--------------------------------------------------------------------------
Winchester Gardens, 8.625%, 11/1/25 210 221
--------------------------------------------------------------------------------
New Jersey HFFA, Irvington General Hosp.
5.875%, 8/1/06 (FHA Guaranteed)
(Prerefunded 8/1/04+) 140 149
--------------------------------------------------------------------------------
New Jersey Housing and Mortgage Fin. Agency
6.35%, 10/1/27 (MBIA Insured) * 250 258
--------------------------------------------------------------------------------
New Jersey Sports & Exposition Auth., Monmouth Park
8.00%, 1/1/25 (Prerefunded 1/1/05+) 100 115
--------------------------------------------------------------------------------
New Jersey Transportation Trust Fund Auth.
Transportation Systems, 5.75%, 6/15/15 500 533
--------------------------------------------------------------------------------
New Jersey Turnpike Auth.
10.375%, 1/1/03 (Escrowed to Maturity) 440 470
--------------------------------------------------------------------------------
Port Auth. of New York & New Jersey
5.875%, 9/15/15 (FGIC Insured) * 1,000 1,037
--------------------------------------------------------------------------
6.50%, 10/1/01 * 100 101
--------------------------------------------------------------------------------
Total New Jersey (Cost $3,979) 4,072
------------
<PAGE>
NEW MEXICO 2.1%
Bernalillo County, Gross Tax Receipts, 5.25%, 10/1/26 1,000 951
--------------------------------------------------------------------------------
New Mexico Mortgage Fin. Auth., Single Family Mortgage
6.30%, 9/1/27 500 515
--------------------------------------------------------------------------------
Total New Mexico (Cost $1,381) 1,466
------------
NEW YORK 10.7%
Dormitory Auth. of the State of New York
Nyack Hosp., 6.00%, 7/1/06 $ 250 $ 249
--------------------------------------------------------------------------------
Rockefeller Univ., 5.00%, 7/1/28 750 693
--------------------------------------------------------------------------------
Univ. Ed. Fac., 5.25%, 5/15/15 (AMBAC Insured) 500 507
--------------------------------------------------------------------------------
Nassau County IDA, Hofstra Univ.
6.80%, 1/1/11 (Prerefunded 1/1/05+) 290 320
--------------------------------------------------------------------------------
New York Dormitory Auth.,
Mount Sinai Health, 6.50%, 7/1/25 275 284
--------------------------------------------------------------------------------
New York City, GO, 6.25%, 8/1/09 350 377
--------------------------------------------------------------------------------
New York City Municipal Water Fin. Auth., 6.00%, 6/15/33 400 416
--------------------------------------------------------------------------------
New York State Dormitory Auth.
Mental Health Services Fac. Improvement
5.25%, 8/15/30 (FSA Insured) 1,250 1,183
--------------------------------------------------------------------------------
New York State Environmental Fac., PCR
State Water Revolving Fund, 6.90%, 11/15/15 200 218
--------------------------------------------------------------------------------
New York State Mortgage Agency
Homeowner Mortgage
5.85%, 10/1/18 * 1,000 1,013
--------------------------------------------------------------------------
6.625%, 9/13/05 * 75 78
--------------------------------------------------------------------------------
New York State Urban Dev., 5.375%, 7/1/22 1,000 977
--------------------------------------------------------------------------------
Triborough Bridge and Tunnel Auth., 5.90%, 1/1/08 1,000 1,071
--------------------------------------------------------------------------------
Total New York (Cost $7,146) 7,386
------------
NORTH CAROLINA 2.7%
North Carolina Eastern
Municipal Power Agency, 6.70%, 1/1/19 700 728
--------------------------------------------------------------------------------
North Carolina Medical Care Commission Hosp.
Firsthealth of the Carolinas, 4.75%, 10/1/26 750 638
--------------------------------------------------------------------------------
<PAGE>
North Carolina Municipal Power Agency, Catawba Electric
5.90%, 1/1/03 500 508
--------------------------------------------------------------------------------
Total North Carolina (Cost $1,898) 1,874
------------
OHIO 4.9%
Akron, Municipal Baseball Stadium,
COP, Zero Coupon, 12/1/16 300 297
--------------------------------------------------------------------------------
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 $ 463
--------------------------------------------------------------------------------
Hamilton County, Sales Tax,
5.25%, 12/1/32 (AMBAC Insured) 1,000 947
--------------------------------------------------------------------------------
Ohio Building Auth.,
Adult Correctional Fac., 5.50%, 10/1/11 1,000 1,047
--------------------------------------------------------------------------------
Ohio Air Quality Dev. Auth., PCR, Cleveland Electric
6.00%, 8/1/20 500 470
--------------------------------------------------------------------------------
Ohio Water Dev. Auth.,
PCR, Toledo Edison, 8.00%, 10/1/23 * 100 106
--------------------------------------------------------------------------------
Total Ohio (Cost $3,405) 3,386
------------
OKLAHOMA 0.2%
Tulsa Municipal Airport, IDR, American Airlines
7.375%, 12/1/20 * 150 153
--------------------------------------------------------------------------------
Total Oklahoma (Cost $148) 153
------------
OREGON 2.6%
Port of Portland, Portland Int'l. Airport
5.50%, 7/1/14 (AMBAC Insured) * 1,000 1,010
--------------------------------------------------------------------------------
Portland Sewer Systems, 5.75%, 8/1/20 (FGIC Insured) 750 771
--------------------------------------------------------------------------------
Total Oregon (Cost $1,756) 1,781
------------
PENNSYLVANIA 2.1%
Beaver County IDA, PCR,
Cleveland Electric, 7.625%, 5/1/25 100 106
--------------------------------------------------------------------------------
Bucks County IDA, Chandler Hall, 6.10%, 5/1/14 500 450
--------------------------------------------------------------------------------
Erie County IDA, Beverly Enterprises, 6.625%, 5/1/02 50 50
--------------------------------------------------------------------------------
<PAGE>
Montgomery County Ed. & Health, Faulkeways at Gwynedd
6.75%, 11/15/24 400 395
--------------------------------------------------------------------------------
Southeastern Pennsylvania Transportation Auth.
4.75%, 3/1/24 (FGIC Insured) 500 436
--------------------------------------------------------------------------------
Total Pennsylvania (Cost $1,474) 1,437
------------
PUERTO RICO 1.1%
Puerto Rico Highway &
Transportation Auth., 5.50%, 7/1/15 250 261
--------------------------------------------------------------------------------
Puerto Rico Ind. Tourist, Ed., Medical &
Environmental Fac. Cogen Fac., 6.625%, 6/1/26 * 500 518
--------------------------------------------------------------------------------
Total Puerto Rico (Cost $735) 779
------------
SOUTH CAROLINA 1.8%
Connector 2000 Assoc., Greenville Toll Road
Zero Coupon, 1/1/12 $ 1,000 $ 436
--------------------------------------------------------------------------------
Oconee County PCR, Duke Energy
VRDN (Currently 4.80%) * 600 600
--------------------------------------------------------------------------------
South Carolina Public Service Auth., Santee Cooper
6.25%, 1/1/22 (AMBAC Insured) 200 210
--------------------------------------------------------------------------------
Total South Carolina (Cost $1,344) 1,246
------------
SOUTH DAKOTA 0.3%
South Dakota HDA, 6.65%, 5/1/14 185 191
--------------------------------------------------------------------------------
Total South Dakota (Cost $185) 191
------------
TENNESSEE 0.4%
Memphis-Shelby County Airport Auth.
6.25%, 2/15/11 (MBIA Insured) * 100 109
--------------------------------------------------------------------------------
Metropolitan Gov't. of Nashville & Davidson Counties
Mur-Ci Homes, 7.75%, 12/1/26 200 188
--------------------------------------------------------------------------------
Total Tennessee (Cost $298) 297
------------
TEXAS 6.6%
Abilene Health Fac. Dev., Sears Methodist Retirement
5.90%, 11/15/25 250 205
--------------------------------------------------------------------------------
Amarillo Health Fac. Dev., Sears Panhandle Retirement
7.75%, 8/15/26 (Prerefunded 8/15/06+) 200 234
--------------------------------------------------------------------------------
Harris County, Toll Road
6.375%, 8/15/24 (MBIA Insured)
(Prerefunded 8/15/04+) 250 270
--------------------------------------------------------------------------------
<PAGE>
Harris County Health Fac. Dev., Texas Childrens Hosp.
5.375%, 10/1/12 800 806
--------------------------------------------------------------------------------
Houston, 6.40%, 6/1/27 250 255
--------------------------------------------------------------------------------
Matagorda County Navigation Dist.,
Reliant Energy, 5.20%, 11/1/02 1,000 996
--------------------------------------------------------------------------------
Texas, GO, Veterans Housing Assistance, 6.25%, 12/1/15 $ 15 $ 15
--------------------------------------------------------------------------------
Tomball Hosp. Auth.,
Tomball Regional Hosp., 6.00%, 7/1/19 500 433
--------------------------------------------------------------------------------
Tyler Health Fac. Dev.,
Mother Frances Hosp., 5.625%, 7/1/13 500 439
--------------------------------------------------------------------------------
West Side Calhoun County Navigation Dist., BP Chemicals
VRDN (Currently 4.75%) * 900 900
--------------------------------------------------------------------------------
Total Texas (Cost $4,607) 4,553
------------
UTAH 1.0%
Carbon County, PCR, Solid Waste Disposal
Laidlaw Environmental 7.45%, 7/1/17 * 200 194
--------------------------------------------------------------------------------
Intermountain Power Agency, 5.75%, 7/1/16 (MBIA Insured) 500 514
--------------------------------------------------------------------------------
Total Utah (Cost $690) 708
------------
VIRGINIA 8.1%
District of Columbia Airports Auth., 5.00%, 10/1/27 * 1,000 894
--------------------------------------------------------------------------------
Fairfax County Water Auth.
5.80%, 1/1/16 (Escrowed to Maturity) 860 904
--------------------------------------------------------------------------------
Greater Richmond Convention Center Auth.
Convention Center Expansion, 6.125%, 6/15/29 1,250 1,300
--------------------------------------------------------------------------------
Peninsula Port Auth., Riverside Health
6.625%, 7/1/18 (Prerefunded 7/1/02+) 200 210
--------------------------------------------------------------------------------
Prince William County Service Auth., Water & Sewer Systems
6.00%, 7/1/29 (FGIC Insured)
(Prerefunded 7/1/01+) 85 86
--------------------------------------------------------------------------------
Riverside Regional Jail Auth.
5.875%, 7/1/14
(MBIA Insured) (Prerefunded 7/1/05+) 545 584
--------------------------------------------------------------------------
5.875%, 7/1/14 (MBIA Insured) 455 474
--------------------------------------------------------------------------------
<PAGE>
Virginia HDA
6.10%, 7/1/12 * 1,000 1,046
--------------------------------------------------------------------------
6.50%, 5/1/13 * 100 105
--------------------------------------------------------------------------------
Total Virginia (Cost $5,423) 5,603
------------
WASHINGTON 1.5%
Chelan County Public Utility Dist.
Columbia River-Rock Hydroelectric
Zero Coupon, 6/1/18 (MBIA Insured) $ 585 $ 218
--------------------------------------------------------------------------------
Tacoma, Solid Waste Utilities
5.50%, 12/1/17 (AMBAC Insured) 800 803
--------------------------------------------------------------------------------
Total Washington (Cost $1,002) 1,021
------------
WEST VIRGINIA 0.7%
West Virginia Building Commission
Regional Jail, 5.375%, 7/1/21 (AMBAC Insured) 500 494
--------------------------------------------------------------------------------
Total West Virginia (Cost $525) 494
------------
WISCONSIN 1.7%
Oconto Falls CDA, Oconto Falls Tissue, 7.75%, 12/1/22 * 200 190
--------------------------------------------------------------------------------
Wisconsin HEFA
Childrens Hosp. of Wisconsin
5.625%, 2/15/15 (AMBAC Insured) 500 515
--------------------------------------------------------------------------
National Regency of New Berlin, 8.00%, 8/15/25 200 208
--------------------------------------------------------------------------------
Wisconsin Housing & Economic Dev. Auth.
Homeownership, 6.45%, 9/1/27 (FHAGuaranteed) * 250 255
--------------------------------------------------------------------------------
Total Wisconsin (Cost $1,166) 1,168
------------
TOTAL INVESTMENTS IN SECURITIES
98.1% of Net Assets (Cost $67,236) $ 67,909
Other Assets Less Liabilities 1,318
------------
NET ASSETS $ 69,227
------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 1
Accumulated net realized gain/loss - net of distributions (3,122)
Net unrealized gain (loss) 673
Paid-in-capital applicable to 6,832,602 shares of $0.0001 par
value capital stock outstanding; 4,000,000,000 shares
of the corporation authorized 71,675
------------
<PAGE>
NET ASSETS $ 69,227
------------
NET ASSET VALUE PER SHARE $ 10.13
------------
* Interest subject to alternative minimum tax
+ Used in determining portfolio maturity
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers - total of such securities at period-end amounts to
0.8% of net assets.
AMBAC AMBAC Indemnity Corp.
CDA Community Development Administration
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
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
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Summit Municipal Funds
------------------------------------
STATEMENT OF OPERATIONS In thousands
-----------------------
MONEY MARKET INTERMEDIATE INCOME
FUND FUND FUND
------------ ------------ ------------
Year Year Year
Ended Ended Ended
10/31/00 10/31/00 10/31/00
------------ ------------ ------------
INVESTMENT INCOME (LOSS)
Interest income $ 8,475 $ 4,122 $ 3,954
Expenses
Investment management
and administrative 916 394 344
----------------------------------------
Net investment income (loss) 7,559 3,728 3,610
----------------------------------------
<PAGE>
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss)
Securities - (822) (1,592)
Futures - (25) (58)
----------------------------------------
Net realized gain (loss) - (847) (1,650)
----------------------------------------
Change in net unrealized gain or loss
Securities - 2,063 3,122
Futures - - 15
----------------------------------------
Change in net unrealized gain or loss - 2,063 3,137
----------------------------------------
Net realized and unrealized gain (loss) - 1,216 1,487
----------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 7,559 $ 4,944 $ 5,097
----------------------------------------
The accompanying notes are an integral part of these financial statements.
================================================================================
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
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
-------- -------- -------- -------- -------- --------
INCREASE (DECREASE)
IN NET ASSETS
Operations
Net investment
income (loss) $ 7,559 $ 5,106 $ 3,728 $ 3,861 $ 3,610 $ 3,601
Net realized gain (loss) - (6) (847) (633) (1,650) (1,414)
Change in net unrealized
gain or loss - - 2,063 (4,251) 3,137 (4,963)
-----------------------------------------------------
Increase (decrease) in
net assets from operations 7,559 5,100 4,944 (1,023) 5,097 (2,776)
-----------------------------------------------------
Distributions to shareholders
Net investment income (7,559) (5,106 (3,728) (3,861) (3,610) (3,601)
Net realized gain - - - (146) - (325)
-----------------------------------------------------
Decrease in net assets
from distributions (7,559) (5,106) (3,728) (4,007) (3,610) (3,926)
-----------------------------------------------------
<PAGE>
Capital share transactions *
Shares sold 218,269 182,876 28,679 35,959 21,852 42,172
Distributions reinvested 7,092 4,814 2,314 2,565 2,132 2,589
Shares redeemed (197,664)(173,303) (36,596) (25,628) (28,802) (31,459)
-----------------------------------------------------
Increase (decrease) in
net assets from capital
share transactions 27,697 14,387 (5,603) 12,896 (4,818) 13,302
-----------------------------------------------------
NET ASSETS
Increase (decrease)
during period 27,697 14,381 (4,387) 7,866 (3,331) 6,600
Beginning of period 185,305 170,924 83,794 75,928 72,558 65,958
-----------------------------------------------------
END OF PERIOD $213,002 $185,305 $79,407 $83,794 $69,227 $72,558
-----------------------------------------------------
*Share information
Shares sold 218,269 182,876 2,830 3,400 2,207 3,993
Distributions reinvested 7,092 4,814 228 244 215 247
Shares redeemed (197,664 (173,303) (3,623) (2,461) (2,929) (3,016)
-----------------------------------------------------
Increase (decrease)
in shares outstanding 27,697 14,387 (565) 1,183 (507) 1,224
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Summit Municipal Funds
------------------------------------
NOTES TO FINANCIAL STATEMENTS October 31, 2000
-----------------------------
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 management
investment company. The Summit Municipal Money Market Fund (the Money Fund), the
Summit Municipal Intermediate Fund (the Intermediate Fund), and the Summit
Municipal Income Fund (the Income Fund), are three portfolios established by the
corporation and commenced operations on October 29, 1993. The Money Fund seeks
preservation of capital and liquidity and, consistent with these, the highest
possible current income exempt from federal income taxes. The Intermediate Fund
seeks the highest level of income exempt from federal income taxes consistent
with moderate price fluctuation. The Income Fund seeks a high level of income
exempt from federal income taxes.
The accompanying financial statements were prepared in accordance with
generally accepted accounting principles, which require the use of estimates
made by fund management.
<PAGE>
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 Intermediate and Income Funds with
original maturities less than one year are stated at fair value, which is
determined by using a matrix system that establishes a value for each security
based on money market yields. Securities held by the Money Fund 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 net investment income and realized gains determined in
accordance with generally accepted accounting principles.
NOTE 2 - INVESTMENT TRANSACTIONS
--------------------------------
Consistent with their investment objectives, the funds engage in the
following practices to manage exposure to certain risks or enhance performance.
The investment objective, policies, program, and risk factors of each fund are
described more fully in each fund's prospectus and Statement of Additional
Information.
NONINVESTMENT-GRADE DEBT SECURITIES At October 31, 2000, approximately 10%
of the Income Fund's net assets were invested 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 year ended October 31, 2000, were as follows:
********************************************************************
INTERMEDIATE INCOME
FUND FUND
------------ ------------
Purchases $ 28,675,000 $ 36,357,000
Sales 34,038,000 37,312,000
********************************************************************
<PAGE>
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, 2000, the Money Fund has $7,000 of capital loss
carryforwards, all of which expires in 2007. As of October 31, 2000, the
Intermediate Fund has $1,487,000 of capital loss carryforwards, of which
$663,000 expires in 2007, and $824,000 expires in 2008. As of October 31, 2000,
the Income Fund has $3,114,000 of capital loss carryforwards, of which
$1,484,000 expires in 2007, and $1,630,000 expires in 2008. Each fund intends to
retain gains realized in future periods that may be offset by available capital
loss carryforwards
In order for the Income 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, 2000. The results
of operations and net assets were not affected by the increases/(decreases) to
these accounts.
********************************************************************
Undistributed net investment income $ 1,000
Undistributed net realized gain (1,000)
********************************************************************
At October 31, 2000, the costs of investments for the Money, Intermediate,
and Income Funds for federal income tax purposes were substantially the same as
for financial reporting and totaled $195,736,000, $77,579,000, and $67,236,000,
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 $ 1,341,000 $ 1,745,000
Depreciated investments (696,000) (1,072,000)
Net unrealized gain (loss) $ 645,000 $ 673,000
********************************************************************
NOTE 4 - RELATED PARTY TRANSACTIONS
Each fund is managed by T. Rowe Price Associates, Inc. (the manager or
Price Associates). The investment management and administrative agreement
between each fund and the manager provides for an all-inclusive annual fee, of
which $61,000, $16,000, and $14,000 were payable at October 31, 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 F und 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.
================================================================================
<PAGE>
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 THE SUMMIT MUNICIPAL MONEY MARKET FUND, THE SUMMIT MUNICIPAL
INTERMEDIATE FUND, AND THE SUMMIT MUNICIPAL INCOME FUND
In our opinion, the accompanying statements of assets and
liabilities, including the portffolio investements (Summit
Municipal Money Market Fund), and the statement of net assets
(Summit Municipal Intermediate Fund and Summit Municipal Income
Fund), and the related statements of operations and of changes in
net assets and the financial highlights present fairly, in all
material respects, the financial position of Summit Municipal
Money Market Fund, the Summit Municipal Intermediate Fund, and
the Summit Municipal Income Fund (comprising T. Rowe Price Summit
Municipal Funds, Inc., hereafter referred to as the "Funds") at
October 31, 2000, and the results of each of their operations,
the changes in each of their net assets and the financial
highlights for each of the fiscal periods presented, in
conformity with accounting principles generally accepted in the
United States of America. These financial statements and
financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards
generally accepted in the United States of America, which require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31,
2000 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 17, 2000
================================================================================
<PAGE>
T. Rowe Price Summit Municipal Funds
------------------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 10/31/00
-----------------------------------------------------------
We are providing this information as required by the Internal Revenue Code.
The amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The Summit Money, Intermediate and Income Funds' distributions to
shareholders included $7,347,000, $3,760,000 and $3,624,000, respectively,
which qualified as exempt-interest dividends.
================================================================================
T. Rowe Price Shareholder Services
----------------------------------
INVESTMENT SERVICES AND INFORMATION
-----------------------------------
KNOWLEDGEABLE SERVICE REPRESENTATIVES
BY PHONE SHAREHOLDER SERVICE REPRESENTATIVES ARE AVAILABLE FROM 8
A.m. to 10 p.m. ET Monday through Friday and from 8:30 a.m. to 5
p.m. ET on weekends. Call 1-800-225-5132 to speak directly with a
representative who will be able to assist you with your accounts.
IN PERSON Visit one of our investor center locations to meet with
a representative who will be able to assist you with your
accounts. You can also drop off applications or obtain
prospectuses and other literature at these centers.
AUTOMATED 24-HOUR SERVICES
TELE*ACCESS(REGISTRATION MARK) Call 1-800-638-2587 to obtain
information such as account balance, date and amount of your last
transaction, latest dividend payment, fund prices, and yields.
Additionally, you have the ability to request prospectuses,
statements, and account and tax forms; to reorder checks; and to
initiate purchase, redemption, and exchange orders for
identically registered accounts.
INTERNET. T. ROWE PRICE WEB SITE: WWW.TROWEPRICE.COM All the
information and services available on Tele*Access are available
on our Web site, including transactions in your fund and
brokerage accounts (with preauthorized access).
ACCOUNT SERVICES
CHECKING Write checks for $500 or more on any money market and
most bond fund accounts (except the High Yield and Emerging
Markets Bond Funds).
AUTOMATIC INVESTING Build your account over time by investing
directly from your bank account or paycheck with Automatic Asset
Builder. Additionally, Automatic Exchange enables you to set up
systematic investments from one fund account into another, such
as from a money fund into a stock fund. A $50 minimum makes it
easy to get started.
<PAGE>
AUTOMATIC WITHDRAWAL If you need money from your fund account on
a regular basis, you can establish scheduled, automatic
redemptions.
DIVIDEND AND CAPITAL GAINS PAYMENT OPTIONS Reinvest all or some
of your distributions, or take them in cash. We give you maximum
flexibility and convenience.
BROKERAGE SERVICES*
INVESTMENTS AVAILABLE You can trade stocks, bonds, options,
precious metals, and other securities at a savings over
full-service commission rates.**
TO OPEN AN ACCOUNT Call a shareholder service representative for
more information.
INVESTMENT INFORMATION
COMBINED STATEMENT A comprehensive overview of your T. Rowe Price
accounts is provided. The summary page gives you earnings by tax
category, provides total portfolio value, and lists your
investments by type. Detail pages itemize account transactions.
SHAREHOLDER REPORTS Portfolio managers review the performance of
the funds in plain language and discuss T. Rowe Price's economic
outlook.
T. ROWE PRICE REPORt This is a quarterly newsletter with relevant
articles on market trends, personal financial planning, and T.
Rowe Price's economic perspective.
PERFORMANCE UPDATE This quarterly report reviews recent market
developments and provides comprehensive performance information
for every T. Rowe Price fund.
INSIGHTS These are reports on mutual fund tax issues, investment
strategies, investment fundamentals, and financial markets.
DETAILED INVESTMENT GUIDES Our Asset Mix Worksheet, College
Planning Kit, Diversifying Overseas: A Guide to International
Investing, Retirees Financial Guide, and Retirement Planning Kit
(also available on disk or CD-ROM for PC use) can help you
determine and reach your investment goals.
* T. Rowe Price Brokerage is a division of T. Rowe Price
Investment Services, Inc., Member NASD/SIPC.
** Based on a July 2000 survey for representative-assisted
stock trades. Services vary by firm, and commissions may
vary depending on size of order.
===========================================================================
<PAGE>
T. Rowe Price Mutual Funds
--------------------------
STOCK FUNDS
-----------
DOMESTIC
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Developing Technologies
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market 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
Tax-Efficient Growth
Total Equity Market Index
Value
INTERNATIONAL/GLOBAL
Emerging Europe & Mediterranean
Emerging Markets Stock
European Stock
Global Stock
Global Technology
International Discovery*
International Growth & Income
International Stock Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
----------
DOMESTIC TAXABLE
Corporate Income
GNMA
High Yield
New Income
<PAGE>
Short-Term Bond
Spectrum Income
Summit GNMA
U.S. Treasury Intermediate
U.S. Treasury Long-Term
DOMESTIC TAX-FREE
California Tax-Free Bond
Florida Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term Tax-Free Bond
aryland 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 Intermediate Bond
Tax-Free Short-Intermediate
Virginia Tax-Free Bond
INTERNATIONAL/GLOBAL
Emerging Markets 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
<PAGE>
T. ROWE PRICE NO-LOAD VARIABLE ANNUITY
--------------------------------------
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New American Growth Portfolio
Personal Strategy Balanced
Portfolio
Prime Reserve Portfolio
* Closed to new investors.
+ Investments in the funds are not insured or guaranteed by the FDIC or
any other government agency. Although the funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in the funds.
Please call for a prospectus, which contains complete information,
including fees and expenses. Read it carefully before investing.
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 Advisory Services and Retirement Resources
--------------------------------------------------------
ADVISORY SERVICES, RETIREMENT RESOURCES
T. Rowe Price is your full-service retirement specialist. We have
developed unique advisory services that can help you meet the
most difficult retirement challenges. Our broad array of
retirement plans is suitable for individuals, the self-employed,
small businesses, corporations, and nonprofit organizations. We
also provide recordkeeping, communications, and investment
management services, and our educational materials, self-help
planning guides, and software tools are recognized as among the
industry's best. For information or to request literature, call
us at 1-800-638-5660, or visit our Web site at www.troweprice.com.
ADVISORY SERVICES
-----------------
T. ROWE PRICE RETIREMENT INCOME MANAGERsm helps retirees or those
within two years of retirement determine how much income they can
take in retirement. The program uses extensive statistical
analysis and the input of financial planning professionals to
suggest an income plan that best meets your objectives.
<PAGE>
T. ROWE PRICE ROLLOVER INVESTMENT SERVICe offers asset allocation
advice to those planning a major change in their qualified
retirement plans, such as a 401(k) rollover from a previous
employer or an IRA transfer.
RETIREMENT RESOURCES AT T. ROWE PRICE
-------------------------------------
Traditional, Roth, and Rollover IRAs
SEP-IRA and SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase
Pension and Profit Sharing Plans)
401(k) and 403(b)
457 Deferred Compensation
PLANNING AND INFORMATIONAL GUIDES
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
INSIGHTS REPORTS
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
SOFTWARE PACKAGES
T. Rowe Price Retirement Planning
AnalyzerTM CD-ROM or diskette $19.95.
To order, please call 1-800-541-5760.
Also available on the Internet for $ 9.95.
T. Rowe Price Variable Annuity AnalyzerTM
CD-ROM or diskette, free. To order,
please call 1-800-469-5304.
T. ROWE PRICE IMMEDIATE VARIABLE
ANNUITY (INCOME ACCOUNT)
INVESTMENT KITS
We will be happy to send you one of our
easy-to-follow investment kits when you
are ready to invest in any T. Rowe Price
retirement vehicle, including IRAs,
qualified plans, small-business plans,
or our no-load variable annuities.
===========================================================================
<PAGE>
T. Rowe Price Insights Reports
------------------------------
THE FUNDAMENTALS OF INVESTING
Whether you are unsure how to get started or are saving for a
specific goal, such as retirement or college, the T. Rowe Price
Insights series can help you make informed investment decisions.
These reports, written in plain English about fundamental
investment topics, can be useful at every stage of your
investment journey. They cover a range of topics, from the basic,
such as getting started with mutual funds, to the more advanced,
such as managing risk through diversification or buying
individual securities through a broker. To request one or more
Insights, call us at 1-800-638-5660.
INSIGHTS REPORT
---------------
GENERAL INFORMATION
The ABCs of Giving
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
INVESTMENT STRATEGIES
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
Managing Risk Through Diversification
The Power of Compounding
Value Investing
TYPES OF SECURITIES
The Basics of International Stock
Investing The Basics of Tax-Free Investing
The Fundamentals of Fixed-Income Investing
Global Bond Investing
Investing in Common Stocks
Investing in Emerging Growth Stocks
Investing in Financial Services Stocks
Investing in Health Care Stocks
<PAGE>
Investing in High-Yield Municipal Bonds
Investing in Money Market Securities
Investing in Mortgage-Backed Securities
Investing in Natural Resource Stocks
Investing in Science and Technology Stocks
Investing in Small-Company Stocks
Understanding Derivatives
Understanding High-Yield "Junk" Bonds
BROKERAGE INSIGHTS
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
===========================================================================
T. Rowe Price Brokerage
-----------------------
BROKERAGE SERVICES
T. Rowe Price Brokerage is a division of T.Rowe Price Investment Services,
Inc., Member NASD/SIPC.
T. Rowe Price Brokerage provides high-quality services and financial tools
you can use to manage your investments effectively and conveniently. We
also offer commission savings over full-service brokerages on a number of
transactions.*
INTERNET AND AUTOMATED SERVICES You can enter trades, access
quotes, and review account information 24 hours a day, seven days
a week, by telephone or computer. We offer a flat-rate commission
of $24.95 on stock trades placed through our Internet-Trader
service.**
RESEARCH SERVICES To help you make informed investment decisions,
we offer access to several sources of data. You can research your
investments using our Online Research & News Service, provided by
Thomson Investors Network, which includes company profiles,
intraday and 12-month interactive charting, and analysts' ratings
and earnings estimates. Using our Research On Call service, you
can request reports from Standard & Poor's, Vicker's, Lipper, and
other well-known research providers to be delivered by fax or by
mail.
<PAGE>
DIVIDEND REINVESTMENT SERVICE This service helps keep more of
your money working for you. Cash dividends (of $10 or greater)
from your eligible securities will be invested automatically in
additional shares of the same company, free of charge. Most
stocks listed on national securities exchanges or Nasdaq are
eligible for this service.
* Based on a July 2000 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending
on size of order.
** $24.95 per trade for up to 1,000 shares plus an additional $.02
for each share over 1,000 shares. Visit our Web site for a
complete commission schedule or call for rates on
representative-assisted and other non-Internet trades.
===========================================================================
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
FOR THE HEARING IMPAIRED, CALL:
1-800-367-0763
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
<PAGE>
This report is authorized for distribution
only to shareholders and to others who
have received a 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 - new address
105 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
2260 Briargate Parkway
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
SAN FRANCISCO AREA
1990 North California Boulevard
Suite 100
Walnut Creek
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. C09-050 10/31/00
