-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MkSDMBo/AWa+1Oflj41iUxDMAhF6n+WHBoDcrmihzFdgGX/85SqI5l6wD4Q6Oa6z +tr2Y+dEk3o8PYPGZHg3Rg== 0000881512-99-000002.txt : 19990302 0000881512-99-000002.hdr.sgml : 19990302 ACCESSION NUMBER: 0000881512-99-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000881512 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133641181 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06489 FILM NUMBER: 99553179 BUSINESS ADDRESS: STREET 1: 200 PARK AVE STREET 2: DREYFUS CORP CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129666130 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS FLORIDA INSURED MUNICIPAL BOND FUND DATE OF NAME CHANGE: 19600201 N-30D 1 ANNUAL REPORT YEAR 2000 ISSUES (UNAUDITED) The fund could be adversely affected if the computer systems used by The Dreyfus Corporation and the fund' s other service providers do not properly process and calculate date-related information from and after January 1, 2000. The Dreyfus Corporation is working to avoid Year 2000-related problems in its systems and to obtain assurances from other service providers that they are taking similar steps. In addition, issuers of securities in which the fund invests may be adversely affected by Year 2000-related problems. This could have an impact on the value of the fund's investments and its share price. DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to provide you with this report on the Dreyfus Florida Intermediate Municipal Bond Fund for the 12-month period ended December 31, 1998. Your Fund produced a total return, including share price changes and dividend income generated, of 4.98%*, and a tax-free distribution rate per share of 4.38%.** ECONOMIC REVIEW During 1998, the main regions of the world had very different economic fundamentals. The U.S. entered the year with a strong economy near full employment, with unemployment only slightly above 4%. The tight labor market led the Federal Reserve Board to contemplate a rise in interest rates early in the year, but world economic weakness generated powerful enough disinflationary forces that the Fed acted instead to ease credit beginning in September. After many years of subpar economic growth, continental Europe moved into a sustained economic expansion. The overall European economy benefited as interest rates in peripheral countries such as Spain and Italy fell, approaching the lower levels established by Germany, on the eve of currency unification. Unlike the U.S., Europe has substantial excess capacity of productive plant and labor. In Asia, weak economies were pervasive as a result of a financial crisis. The Latin American economies weakened in turn as the financial stresses spread throughout that region. On balance, there was a substantial weakening of the world economy over the course of 1998, moderated mainly by the American consumer's role as "spender of last resort." A main influence on the U.S. economy during the year was the foreign financial crisis and consequent cooling of the world economy. The positive effects hit first. Actual inflation and expected inflation dropped, causing a decline in long-term Treasury bond yields and mortgage rates. This caused a boom in housing. The fall in inflation left more of the growth in consumer income with which to buy goods and services. Thus, consumers benefited from a combination of good growth in income after inflation, a strong labor market, and increases in the prices of assets they owned, including bonds, stocks and real estate. In a sense, 1998 was a year of disinflationary boom in the U.S., as above-trend economic growth coincided with negligible inflation. The negative effect of Asian weakness was felt in the industrial sector more than in the consumer sector. Corporate profits weakened, especially in sectors affected by the Asian crisis such as world-traded commodities (oil, metals and paper) and exports. Evidence of a weaker world economy accumulated during 1998 as the financial stresses continued. A worsened financial crisis occurred between the Russian default in mid-August and the fallout from the Long Term Capital Management hedge fund crisis through early October. However, energetic steps were taken to stabilize the Japanese banks, design a support package for Brazil, ease monetary policy, and help overinvested financial institutions rebuild their cash reserves. Indications of a calming of financial fears were evident in the final months of the year. In any case, there appears to have been a shift in the priorities of key policymakers from fighting potential inflation to restimulating future world economic growth. The global economy survived a triple financial crisis in 1998 from Japan, emerging market countries and overextended financial institutions. Excess capacity persists in many worldwide industries after years of high capital spending followed by the onset of a worldwide weakening in demand. Fortunately, the U.S. has led the world in making the transition from the old manufacturing industries to the new growth industries, such as biotechnology, software, computer hardware and the Internet. This contributed to the favorable combination of low unemployment and low inflation in the U.S., and may yet lead toward more efficient allocation of capital elsewhere in the world. As 1998 ended, interest rates set by central banks remained in a downtrend in most parts of the world, including Europe and the U.S. A similar trend had even begun in many emerging countries, as the stresses of financial crisis relaxed. MARKET ENVIRONMENT In calendar year 1998, municipal prices moved upward on a nearly uninterrupted track from month to month. The environment for fixed-income securities was constructive generally, and that was reflected in municipal prices. The positive atmosphere was largely attributable to continued low inflation and low interest rates contained within a strong U.S. economy. Other factors at work included the emphatic movement toward lower rates created by the flight-to-quality buying of U.S. Treasury securities which began with the unfolding global currency and economic crises. Municipal interest rates trended downward along with Treasuries' , although not to the same extent. During the year, buyers of municipals were given comfort from a credit standpoint by the continued strength of the U.S. economy, whose fiscal benefits extended to the treasuries of states, cities, and beyond. A good measure of the willingness of investors to buy municipals, and the ease with which municipalities felt new debt could be sold even in a lower interest rate environment, can be seen in the near record-breaking volume of new bonds issued during the year. A total of $284 billion in bonds was issued in 1998, just $8 billion less than in the record-breaking year of 1993. The issuance of new bonds is not usually evenly dispersed across the country, and in 1998 it was often difficult to locate desirable paper to purchase in several states. That sizeable new issue calendar, combined with global events and the effects of a dramatic stock market, occasionally made for volatile trading sessions. As Treasury prices escalated in the face of global turmoil, municipal yields vis-a-vis Treasury yields became increasingly attractive. Historically, when long-term municipals yielded 80% to 85% of the yields available on Treasuries with comparable maturities, they were considered to be good values. For much of 1998, the ratio hovered near 100%, and even today is at 95%. The environment for municipal bonds still appears to be positive: the dollar value of new issues in 1999 will likely be less than in 1998, while the continued favorable comparison of municipal yields vis-a-vis Treasury yields, combined with the built-in tax advantages of municipal bonds, should continue to command buyers' attention. PORTFOLIO OVERVIEW In 1998, the Dreyfus Florida Intermediate Municipal Bond Fund took a more aggressive investment approach with the portfolio. The Fund focused on extending its average maturity to approximately eight years to obtain additional yield, yet maintain neutral duration relative to its Lehman Brothers Index benchmark. It was an appropriate approach given the unclear direction of the municipal bond market, which see-sawed between periods of declines and periods of price appreciation. An additional tactic which we employed to manage market volatility focused on identifying relative value within the secondary market. For example, from time to time we bought discount bonds with slightly longer maturities to balance the higher income-producing premium bonds already held in the portfolio. This proved to be difficult to accomplish when there was a limited availability in the marketplace of longer-maturity, liquid, discount bonds with good structural characteristics. On the occasions when desirable bonds were found, the portfolio sold current coupon bonds with short call features at a profit to provide funds for reinvestment. Going forward, we will continue to manage the portfolio utilizing a constructive approach to obtain value. The Fund is currently well balanced across the intermediate coupon range. It is entirely possible that the market may again see periods of volatility, although currently we are without any concrete signs alluding to the market's direction. Recently, municipal bond yields have fluctuated in a narrow trading range between 5.05% and 5.25%, but we believe the inherent strength of the portfolio will continue to benefit from the demand for Florida securities, which are well sought-after by national funds, as well as other Florida bond funds. Our primary tasks, which will guide our portfolio management decisions, are to earn a high level of current income to the extent it is consistent with the preservation of capital, while at the same time maintaining the Fund's high credit quality. Included in this report is a series of detailed statements outlining the portfolio' s holdings and financial condition. We hope that you find them informative. Please know that we greatly appreciate your continued confidence in the Fund and The Dreyfus Corporation. Very truly yours, [Richard J. Moynihan signature] Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation January 15, 1999 New York, N.Y. *Total return includes reinvestment of dividends and any capital gains paid. Income may be subject to state and local income taxes for non-Florida residents **Distribution rate per share is based upon dividends per share paid from net investment income during the period, divided by the net asset value per share at the end of the period, adjusted for any capital gain distributions. Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders. DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND DECEMBER 31, 1998 - ----------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX Dollars $16,674 Lehman Brothers 10-Year Municipal Bond Index* $15,431 Dreyfus Florida Intermediate Municipal Bond Fund *Source: Lehman Brothers Average Annual Total Returns - ----------------------------------------------------------------------------- One Year Ended Five Years Ended From Inception (1/21/92) December 31, 1998 December 31, 1998 to December 31, 1998 ___________________ ___________________ ________________________ 4.98% 4.57% 6.44% - ------------------------
Past performance is not predictive of future performance. The above graph compares a $10,000 investment made in Dreyfus Florida Intermediate Municipal Bond Fund on 1/21/92 (Inception Date) to a $10,000 investment made in the Lehman Brothers 10-Year Municipal Bond Index on that date. For comparative purposes, the value of the Index on 1/31/92 is used as the beginning value on 1/21/92. All dividends and capital gain distributions are reinvested. The Fund invests primarily in Florida municipal securities and maintains a portfolio with a weighted-average maturity ranging between 3 and 10 years. The Fund's performance shown in the line graph takes into account fees and expenses. The Lehman Brothers 10-Year Municipal Bond Index is not limited to investments principally in Florida municipal obligations and does not take into account charges, fees and other expenses. The Lehman Brothers 10-Year Municipal Bond Index, unlike the Fund, is an unmanaged total return performance benchmark for the investment-grade, geographically unrestricted 10-year tax exempt bond market, consisting of municipal bonds with maturities of 9-12 years. These factors, coupled with the potentially longer maturity of the Index, can contribute to the Index potentially outperforming or underperforming the Fund. Further information relating to Fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS DECEMBER 31, 1998 Principal Long-Term Municipal Investments--96.7% Amount Value - ------------------------------------------------------- ____________ _____________ Florida--92.4% Alachua County Health Facilities Authority, Health Facilities Revenue: Refunding (Santa Fe Health Systems Project) 6.875%, 11/15/2002 (Prerefunded 11/15/2000) (a) . . . . . . . . . . . . . . . . . . $ 2,385,000 $ 2,544,437 (Shands Teaching Hospital) 5.20%, 12/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . 1,700,000 1,839,349 Bay County, Refunding: PCR (International Paper Co. Project) 5.10%, 9/1/2012 . . . . . . . . . . . . . . . . . 2,500,000 2,579,950 RRR: 6.10%, 7/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,095,000 2,261,573 6.20%, 7/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,371,400 Boynton Beach, Utility Systems Revenue 5.375%, 11/1/2008 (Insured; FGIC) . . . . . . . . . 1,000,000 1,099,040 Brevard County Health Facilities Authority, Revenue, Refunding: (Holmes Regional Medical Center Project) 5.30%, 10/1/2007 (Insured; MBIA) . . . . . . . 3,000,000 3,246,180 (Wuesthoff Memorial Hospital) 6.90%, 4/1/2002 . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,742,275 Brevard County Housing Finance Authority, MFHR, Refunding (Windover Oaks) 6.90%, 2/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,278,080 Broward County, Refunding: 6.125%, 1/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,950,000 2,112,825 Airport Systems Revenue 5.375%, 10/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . 8,100,000 8,573,283 Broward County School Board, COP 6.10%, 7/1/2002 (Insured; AMBAC). . . . . . . . . . . . . 2,000,000 2,159,020 Broward County School District, Refunding: 5.80%, 2/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,128,140 5.30%, 2/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,346,600 6%, 2/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,244,860 Celebration Community Development District, Special Assessment 5.60%, 5/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,040,000 5,453,230 Charlotte County, Utility Revenue, Refunding 5.40%, 10/1/2008 (Insured; FGIC). . . . . . . 1,210,000 1,331,121 Collier County, Capital Improvement Revenue, Refunding: 5.75%, 10/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,985,000 2,193,346 5.85%, 10/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,105,000 2,330,909 Coral Springs, Water and Sewer Revenue, Refunding 5.50%, 9/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,425,000 1,528,569 Dade County: Aviation Revenue: 6%, 10/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,177,480 6.15%, 10/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,180,060 (Miami International Airport): 5%, 10/1/2005 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,075,000 1,130,180 Refunding: 5.75%, 10/1/2005 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,190,260 5.375%, 10/1/2010 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,071,440 Refunding 5.80%, 10/1/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . 510,000 559,123 Public Facilities Revenue, Refunding (Jackson Memorial Hospital) 5.20%, 6/1/2004 (Insured; MBIA) . . . . . . . . . . . . 2,035,000 2,161,658 (Seaport) 5.90%, 10/1/2002 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 2,470,000 2,635,218 DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- ____________ _____________ Florida (continued) Dade County (continued): Special Obligation Revenue, Refunding: (Solid Waste System) 6%, 10/1/2006 (Insured; AMBAC) . . . . . . . . . . . . . . . . $ 2,565,000 $ 2,871,133 Zero Coupon, 10/1/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . 6,825,000 3,990,509 Zero Coupon, 10/1/2015 (Insured; AMBAC, Prerefunded 10/1/2008) (a) . . . . . . . . 9,605,000 4,294,299 Zero Coupon, 10/1/2021 (Insured; AMBAC, Prerefunded 10/1/2008) (a) . . . . . . . . 14,465,000 4,373,927 Zero Coupon, 10/1/2025 (Insured; AMBAC, Prerefunded 10/1/2008) (a) . . . . . . . . 9,805,000 2,299,959 Zero Coupon, 10/1/2030 (Insured; AMBAC, Prerefunded 10/1/2008) (a) . . . . . . . . 14,755,000 2,493,152 Zero Coupon, 10/1/2032 (Insured; AMBAC, Prerefunded 10/1/2008) (a) . . . . . . . . 6,000,000 891,180 Water and Sewer Systems Revenue 6.25%, 10/1/2011 (Insured; FGIC) . . . . . . . . . . . 2,115,000 2,495,362 Dade County Housing Finance Authority, MFMR (Golden Lakes Apartments Project) 6%, 11/1/2032 . . . . . . . . . . . . . . . . . . . . 1,000,000 1,054,520 Daytona Beach, Water and Sewer Revenue, Refunding 5.75%, 11/15/2008 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,270,000 2,463,699 Deerfield Beach, Water and Sewer Improvement Revenue, Refunding 6.125%, 10/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,180,000 1,300,820 Delray Beach, Water and Sewer Revenue, Refunding 5.25%, 10/1/2009 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,711,075 Duval County School District, Refunding: 5.90%, 8/1/2002 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500,000 4,786,965 6.25%, 8/1/2005 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400,000 2,596,992 First Florida Governmental Financing Commission, Revenue: 6.30%, 7/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,085,680 Refunding 6%, 7/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,272,670 Florida, Gas Utility Revenue (Gas Project) 5%, 12/1/2008 (Insured; FSA). . . . . . . . . . 3,000,000 3,209,760 Florida Board of Education, Capital Outlay: 5.50%, 1/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,400,000 1,527,568 (Public Education): 5.50%, 6/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,725,000 6,225,880 Refunding: 4.90%, 6/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,255,700 5%, 6/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,665,300 Florida Department of Transportation (Right of Way) 5.75%, 7/1/2005. . . . . . . . . . . . 2,375,000 2,625,847 Florida Division of Bond Finance Department, General Services Revenues (Department of Environmental-Preservation 2000): 5.25%, 7/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,300,000 4,604,096 5%, 7/1/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,250,700 Florida Municipal Power Agency, Revenue: (All-Requirements Power Supply Project) 5.90%, 10/1/2002 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,078,230 Refunding (Saint Lucie Project) 5.40%, 10/1/2005 (Insured; FGIC) . . . . . . . . . . . 3,500,000 3,730,440 Florida Sunshine Skyway, Revenue, Refunding 6.20%, 7/1/2002. . . . . . . . . . . . . . . . 1,315,000 1,404,657 DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- ____________ _____________ Florida (continued) Fort Myers, Improvement Revenue (Special Assessment - Geo Area 24) 7.05%, 7/1/2005 (Prerefunded 7/1/2003) (a) . . . . . $ 905,000 $ 1,024,931 Greater Orlando Aviation Authority, Orlando Airport Facilities Revenue: 6.25%, 10/1/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600,000 5,029,318 Refunding 6.10%, 10/1/2002 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,169,480 Halifax Hospital Medical Center, HR, Refunding 5%, 10/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750,000 1,841,665 Hernando County School District, Refunding: 6.10%, 8/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,191,240 5.50%, 9/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,580,000 1,715,864 Hialeah Gardens, IDR, Refunding (Waterford Convalescent) 7.875%, 12/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 965,000 1,049,370 Hillsborough County, Utility Revenue, Zero Coupon, 8/1/2006 (Insured; MBIA). . . . . . . . 5,000,000 3,659,050 Hillsborough County Hospital Authority, HR, Refunding (Tampa General Hospital Project) 6.125%, 10/1/2002 (Insured; FSA) . . . . . . . . . . . 3,350,000 3,628,753 Hillsborough County Port District, Special Revenue, Refunding (Tampa Port Authority) 5.75%, 6/1/2013 (Insured; FSA) . . . . . . . . . . . . . . . . . 500,000 540,275 Indian Trace Community Development District, Refunding (Water Management-Special Benefit) 5.375%, 5/1/2005 (Insured; MBIA) . . . . . . . . . . 2,265,000 2,447,853 Jacksonville: District Water and Sewer Revenue 5%, 10/1/2020 (Insured; MBIA, Prerefunded 10/1/2008) (a) . . . . . . . . . . . . . 3,000,000 3,215,010 Excise Taxes, Revenue, Refunding: 4.875%, 10/1/2007 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,650,525 6.50%, 10/1/2008 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,111,210 Jacksonville Beach, Utilities Revenue, Refunding 5.125%, 10/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,589,940 Jacksonville Electric Authority, Revenue, Refunding Electric Systems 5.40%, 10/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250,000 2,384,392 Kissimmee Utility Authority, Electric System Improvement Revenue, Refunding 5%, 10/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,109,080 Lake County, Resource Recovery Industrial Development Revenue, Refunding (NRG/Recovery Group) 5.85%, 10/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,246,780 Lake Worth, Refunding 5.80%, 10/1/2005 (Insured; AMBAC). . . . . . . . . . . . . . . . . . 1,000,000 1,111,740 Lakeland, Electric and Water Revenue, Refunding 5.90%, 10/1/2007 . . . . . . . . . . . . . 2,385,000 2,704,924 Miami, Refunding 5.80%, 12/1/2005 (Insured; FGIC). . . . . . . . . . . . . . . . . . . . . 1,340,000 1,485,028 Miami Beach, Water and Sewer Revenue 5.10%, 9/1/2005 (Insured; FSA). . . . . . . . . . . . 1,500,000 1,604,880 Miami Beach Health Facilities Authority, HR, Refunding (Mount Sinai Medical Center Project) 5.70%, 11/15/2003 (Insured; FSA) . . . . . . . . . 1,500,000 1,628,730 Miami-Dade County, School Board COP, Refunding 5.25%, 8/1/2008 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,701,775 DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- ____________ _____________ Florida (continued) Nassau County, PCR, Refunding (ITT Rayonier, Inc. Project) 5.90%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,075,000 $ 1,162,129 Ocean Highway and Port Authority, Revenue 6.25%, 12/1/2002 (LOC; ABN Amro Bank) . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,772,230 Orange County Health Facilities Authority, HR, Refunding (Orlando Regional Healthcare) 5.50%, 11/1/2003 (Insured; MBIA) . . . . . . . . . . . . 2,000,000 2,147,360 Orlando, Capital Improvement Special Revenue 5.50%, 10/1/2003 (Prerefunded 10/1/2001) (a) . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,137,240 Orlando Utilities Commission, Water and Electric Revenue, Refunding: 5.60%, 10/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,804,200 5.75%, 10/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,217,600 5.80%, 10/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,930,000 6,634,899 5.80%, 10/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,175,000 1,325,153 Osceola County, Revenue: Gas Tax Improvement, Refunding: 5.50%, 4/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,365,000 1,459,335 5.65%, 4/1/2004 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,445,000 1,565,340 Transportation (Osceola Parkway Project) 5.90%, 4/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000 1,406,483 Osceola County Industrial Development Authority, Revenue (Community Provider Pooled Loan Program) 8%, 7/1/2004 . . . . . . . . . . . . . . . . . 3,460,000 3,757,422 Palm Beach County, Revenue: Criminal Justice Facilities, Refunding 5.375%, 6/1/2010 (Insured; FGIC) . . . . . . . . 1,825,000 2,004,105 Water and Sewer 5%, 10/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . 7,320,000 7,667,993 Palm Beach County Housing Finance Authority, MFHR (Windsor Park Apartments Project) 5.85%, 12/1/2033 . . . . . . . . . . . . . . . . . . 1,500,000 1,564,680 Palm Beach County School District, Refunding 6%, 8/1/2006 (Insured; AMBAC) . . . . . . . . 1,000,000 1,080,360 Palm Beach County Solid Waste Authority, Revenue, Refunding 5.50%, 10/1/2006 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,276,240 Pasco County, Water and Sewer Revenue, Refunding: 5.50%, 10/1/2002 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,661,025 5.40%, 10/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,607,700 Polk County, Capital Improvement Revenue, Refunding 6%, 12/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,900,000 2,061,158 Punta Gorda, Utilities Revenue, Refunding 5.50%, 1/1/2002 (Insured; AMBAC) . . . . . . . . 1,315,000 1,386,786 Reedy Creek Improvement District, Utilities Revenue 6.30%, 10/1/2003 (Insured; MBIA, Prerefunded 10/1/2001) (a) . . . . . . . . . . . . . . 1,000,000 1,080,870 Saint John's County, Water and Sewer Revenue, Refunding 5%, 6/1/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,020,000 1,087,391 Saint John's County Industrial Development Authority, HR (Flager Hospital Project) 5.80%, 8/1/2003 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,061,250 DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- ____________ _____________ Florida (continued) Saint Lucie County School District, Refunding 5.90%, 7/1/2002 (Insured; AMBAC) . . . . . . $ 1,780,000 $ 1,910,652 Saint Petersburg, Public Improvement Revenue, Refunding 6%, 2/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,604,160 Sarasota County, Refunding: 6.25%, 10/1/2004 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,505,000 1,630,141 Utilities Systems Revenue 5.60%, 10/1/2004 (Insured; FGIC) . . . . . . . . . . . . . . 2,345,000 2,524,111 Seminole County School District, Refunding 6%, 8/1/2003 (Insured; MBIA). . . . . . . . . . 2,500,000 2,731,075 Sunrise, Revenue: Public Facilities: 6.20%, 10/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,197,920 6.50%, 10/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,111,210 Utility System, Refunding 5.20%, 10/1/2005 (Insured; AMBAC) . . . . . . . . . . . . . . 1,395,000 1,496,082 Tallahassee, Health Facilities Revenue, Refunding (Tallahassee Memorial Regional Medical Center) 5.50%, 12/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,064,100 Tampa, Revenue: (Aquarium, Inc. Project) 7.25%, 5/1/2005 (Prerefunded 5/1/2002) (a) . . . . . . . . . . 1,200,000 1,349,232 Health Systems (Catholic Health East) 5%, 11/15/2009 (Insured; MBIA) . . . . . . . . . 1,000,000 1,059,700 Refunding (Alleghany Health Systems - Saint Mary's) 5.75%, 12/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,750,000 2,989,168 Water and Sewer 6.30%, 10/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,590,000 1,739,063 Tampa Bay, Water Utility Systems Revenue, Refunding 5.125%, 10/1/2015 (Insured; FGIC). . . 3,205,000 3,309,130 Volusia County, Sales Tax Improvement Revenue, Refunding 6.40%, 10/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,174,060 Volusia County Educational Facility Authority, Revenue (Embry-Riddle Aeronautical University): 5.875%, 10/15/2002 (Insured; College Construction Loan Insurance Association) . . . 1,145,000 1,231,173 6.10%, 10/15/2003 (Insured; College Construction Loan Insurance Association) . . . 1,000,000 1,097,170 Volusia County Special Assessment (Bethune Beach Wastewater Project) 6.875%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795,000 858,791 U.S. Related--4.3% Puerto Rico Commonwealth, Refunding 5.20%, 7/1/2003 (Insured; FSA) . . . . . . . . . . . . 5,000,000 5,311,500 Puerto Rico Commonwealth Highway and Transportation Authority: Highway Revenue 5.50%, 7/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . 2,500,000 2,769,800 Transportation Revenue 5.25%, 7/1/2012 (Insured; MBIA) . . . . . . . . . . . . . . . . 2,440,000 2,617,730 Virgin Islands Public Finance Authority, Revenue, Refunding 6%, 10/1/2004. . . . . . . . . 3,000,000 3,147,270 Virgin Islands Water and Power Authority, Water Systems Revenue 7.20%, 1/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 416,744 _____________ TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $299,483,275). . . . . . . . . . . . . . . . . $318,140,470 _____________ DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 Principal Short-Term Municipal Investments--1.5% Amount Value - ------------------------------------------------------- ____________ _____________ Florida: Broward County, IDR, VRDN (Rex Three, Inc. Project) 3.70% (b). . . . . . . . . . . . . . . $ 2,815,000 $ 2,815,000 Dade County Health Facilities Authority, HR,VRDN (Miami Children's Hospital Project) 4% (b) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000 Jacksonville, PCR, Refunding, VRDN (Florida Power and Light Company Project) 4% (b) . . . . . . . . . . . . . . . . . . . 100,000 100,000 _____________ TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $4,915,000) . . . . . . . . . . . . . . . . . $ 4,915,000 _____________ TOTAL INVESTMENTS (cost $304,398,275). . . . . . . . . . . . . . . . . . . . . . . . . . . 98.2% $323,055,470 _______ _____________ CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8% $ 6,033,745 _______ _____________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $329,089,215 _______ _____________ Summary of Abbreviations - ----------------------------------------------------------------------------- AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance COP Certificate of Participation Insurance Corporation FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue FSA Financial Security Assurance MFMR Multi-Family Mortgage Revenue HR Hospital Revenue PCR Pollution Control Revenue IDR Industrial Development Revenue RRR Resources Recovery Revenue LOC Letter of Credit VRDN Variable Rate Demand Notes Summary of Combined Ratings (Unaudited) - ----------------------------------------------------------------------------- Fitch or Moody's or Standard & Poor's Percentage of Value _____ ________ __________________ ____________________ AAA Aaa AAA 69.9% AA Aa AA 19.5 A A A 3.2 BBB Baa BBB 2.6 F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 1.5 Not Rated (c) Not Rated (c) Not Rated (c) 3.3 _______ 100.0% _______ Notes to Statement of Investments: - ----------------------------------------------------------------------------- (a) Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date. (b) Securities payable on demand. Variable interest rate--subject to periodic change. (c) Securities which, while not rated by Fitch, Moody's and Standard & Poor's have been determined by the Manager to be of comparable quality to those rated securities in which the Fund may invest. (d) At December 31, 1998, 27.5% of the Fund's net assets are insured by MBIA. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998 Cost Value ____________ ____________ ASSETS: Investments in securities--See Statement of Investments . . $304,398,275 $323,055,470 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,669,152 Interest receivable . . . . . . . . . . . . . . . . . . . 4,499,130 Receivable for shares of Beneficial Interest subscribed . . 103,876 Prepaid expenses . . . . . . . . . . . . . . . . . . . . 27,240 _____________ 329,354,868 _____________ LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 187,164 Accrued expenses . . . . . . . . . . . . . . . . . . . . 78,489 _____________ 265,653 _____________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $329,089,215 _____________ REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $310,410,655 Accumulated net realized gain (loss) on investments . . . 21,365 Accumulated net unrealized appreciation (depreciation) on investments--Note 4 . . . . . . . . . . . . . . . . 18,657,195 _____________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $329,089,215 _____________ SHARES OUTSTANDING (UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . 24,217,010 NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $13.59 _______ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998 INVESTMENT INCOME INCOME Interest Income . . . . . . . . . . . . . . . . . $17,227,774 EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 1,978,648 Shareholder servicing costs--Note 3(b) . . . . . 522,754 Professional fees . . . . . . . . . . . . . . . . 42,551 Trustees' fees and expenses--Note 3(c) . . . . . 36,854 Custodian fees . . . . . . . . . . . . . . . . . 31,712 Prospectus and shareholders' reports . . . . . . 24,041 Registration fees . . . . . . . . . . . . . . . . 12,605 Loan commitment fees--Note 2 . . . . . . . . . . 1,146 Miscellaneous . . . . . . . . . . . . . . . . . . 26,594 ____________ Total Expenses . . . . . . . . . . . . . . . . 2,676,905 ____________ INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,550,869 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4: Net realized gain (loss) on investments . . . . . $ 2,698,862 Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . . (1,349,171) ____________ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 1,349,691 ____________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $15,900,560 ____________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS Year Ended Year Ended December 31, 1998 December 31, 1997 _________________ _________________ OPERATIONS: Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,550,869 $ 15,775,429 Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 2,698,862 2,005,445 Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (1,349,171) 3,874,947 _____________ _____________ Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 15,900,560 21,655,821 _____________ _____________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,499,533) (15,826,765) Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . (2,678,501) (1,112,980) _____________ _____________ Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,178,034) (16,939,745) _____________ _____________ BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 40,889,385 41,255,788 Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,540,231 11,285,112 Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (74,027,049) (93,192,124) _____________ _____________ Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . (21,597,433) (40,651,224) _____________ _____________ Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . (22,874,907) (35,935,148) NET ASSETS: Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,964,122 387,899,270 _____________ _____________ End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $329,089,215 $351,964,122 _____________ _____________ Shares Shares _____________ _____________ CAPITAL SHARE TRANSACTIONS: Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,999,101 3,057,168 Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . 846,706 837,346 Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,430,622) (6,936,815) _____________ _____________ Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . (1,584,815) (3,042,301) _____________ _____________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. Year Ended December 31, ____________________________________________________________ PER SHARE DATA: 1998 1997 1996 1995 1994 _______ _______ _______ _______ _______ Net asset value, beginning of period . . . . . . $13.64 $13.45 $13.62 $12.52 $13.85 _______ _______ _______ _______ _______ Investment Operations: Investment income--net . . . . . . . . . . . . . .60 .60 .61 .62 .66 Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .06 .23 (.17) 1.10 (1.33) _______ _______ _______ _______ _______ TOTAL FROM INVESTMENT OPERATIONS . . . . . . . . .66 .83 .44 1.72 (.67) _______ _______ _______ _______ _______ Distributions: Dividends from investment income--net . . . . . . (.60) (.60) (.61) (.62) (.65) Dividends from net realized gain on investments . (.11) (.04) -- -- -- Dividends in excess of net realized gain on investments -- -- -- -- (.01) _______ _______ _______ _______ _______ TOTAL DISTRIBUTIONS . . . . . . . . . . . . . . . (.71) (.64) (.61) (.62) (.66) _______ _______ _______ _______ _______ Net asset value, end of period . . . . . . . . . $13.59 $13.64 $13.45 $13.62 $12.52 _______ _______ _______ _______ _______ TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . 4.98% 6.35% 3.35% 13.98% (4.92%) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets . . . . . . .81% .80% .80% .69% .48% Ratio of net investment income to average net assets . . . . . . . . . . . . . 4.41% 4.43% 4.53% 4.70% 5.01% Decrease reflected in above expense ratios due to undertakings by the Manager . . . . . . -- -- -- .08% .32% Portfolio Turnover Rate . . . . . . . . . . . . 32.49% 19.68% 19.14% 25.00% 18.76% Net Assets, end of period (000's Omitted) . . . $329,089 $351,964 $387,899 $428,896 $409,361 SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS NOTE 1--SIGNIFICANT ACCOUNTING POLICIES: Dreyfus Florida Intermediate Municipal Bond Fund (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a non-diversified open-end management investment company. The Fund's investment objective is to provide investors with as high a level of current income exempt from Federal income tax as is consistent with the preservation of capital. The Dreyfus Corporation (the "Manager") serves as the Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. is the distributor of Fund's shares, which are sold to the public without a sales charge. The Fund' s financial statements are prepared in accordance with generally accepted accounting principles which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (A) PORTFOLIO VALUATION: Investments in securities are valued each business day by an independent pricing service ("Service") approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. (B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Under the terms of the custody agreement, the Fund received net earnings credits of $13,924 during the period ended December 31, 1998 based on available cash balances left on deposit. Income earned under this arrangement is included in interest income. The Fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the Fund. (C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain are normally declared and paid annually, but the Fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the Fund not to distribute such gain. (D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all Federal income and excise taxes. DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 2--BANK LINE OF CREDIT: The Fund participates with other Dreyfus-managed Funds in a $600 million redemption credit facility (" Facility" ) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the Fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the Fund at rates based on prevailing market rates in effect at the time of borrowings. During the period ended December 31, 1998, the Fund did not borrow under the Facility. NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES: (A) Pursuant to a management agreement ("Agreement") with the Manager, the management fee is computed at the annual rate of .60 of 1% of the value of the Fund's average daily net assets and is payable monthly. (B) Under the Fund's Shareholder Services Plan, the Fund reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed an annual rate of .25 of 1% of the value of the Fund's average daily net assets for certain allocated expenses of providing personal services and/or maintaining shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the Fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended December 31, 1998, the Fund was charged an aggregate of $314,866 pursuant to the Shareholder Services Plan. The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the Fund. During the period ended December 31, 1998, the Fund was charged $124,734 pursuant to the transfer agency agreement. (C) Each trustee who is not an "affiliated person" as defined in the Act receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per meeting. The Chairman of the Board receives an additional 25% of such compensation. (D) A 1% redemption fee is charged and retained by the Fund on shares redeemed within fifteen days following the date of issuance, including redemptions made through the use of the Fund Exchange privilege. During the period ended December 31, 1998, redemption fees retained by the Fund amounted to $293. NOTE 4--SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 1998 amounted to $104,430,771 and $115,775,001, respectively. At December 31, 1998, accumulated net unrealized appreciation on investments was $18,657,195 consisting of $18,950,427 gross unrealized appreciation and $293,232 gross unrealized depreciation. At December 31, 1998, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS SHAREHOLDERS AND BOARD OF TRUSTEES DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND We have audited the accompanying statement of assets and liabilities of Dreyfus Florida Intermediate Municipal Bond Fund, including the statement of investments, as of December 31, 1998, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 1998 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Florida Intermediate Municipal Bond Fund at December 31, 1998, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with generally accepted accounting principles. New York, New York February 1, 1999 DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- IMPORTANT TAX INFORMATION (UNAUDITED) In accordance with Federal tax law, the Fund hereby makes the following designations regarding its fiscal year ended December 31, 1998: --all the dividends paid from investment income-net are "exempt-interest dividends" (not subject to regular Federal income tax and, for residents of Florida, not subject to taxation by Florida), and --the Fund hereby designates $.1137 per share as a long-term capital gain distribution of the $.1138 per share paid on December 9, 1998 and also designates $.0002 per share as a long-term capital gain distribution paid on July 7, 1998. As required by Federal tax law rules, shareholders will receive notification of their portion of the Fund's taxable ordinary dividends and capital gains distributions paid for the 1998 calendar year on Form 1099-DIV which will be mailed by January 31, 1999. [reg.tm logo] (reg.tm) DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND 200 Park Avenue New York, NY 10166 MANAGER The Dreyfus Corporation 200 Park Avenue New York, NY 10166 CUSTODIAN The Bank of New York 90 Washington Street New York, NY 10286 TRANSFER AGENT & DIVIDEND DISBURSING AGENT Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Printed in U.S.A. 740AR9812 Florida Intermediate Municipal Bond Fund Annual Report December 31, 1998 EX-99 2 GRAPH IN THE PRESIDENT'S LETTER OF THE ANNUAL REP. COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX EXHIBIT A: LEHMAN BROTHERS PERIOD 10-YEAR DREYFUS FLORIDA MUNICIPAL INTERMEDIATE BOND INDEX * MUNICIPAL BOND FUND 1/21/92 10,000 10,000 12/31/92 10,869 10,935 12/31/93 12,257 12,339 12/31/94 11,672 11,732 12/31/95 13,676 13,373 12/31/96 14,297 13,821 12/31/97 15,618 14,699 12/31/98 16,674 15,431 *Source: Lehman Brothers -----END PRIVACY-ENHANCED MESSAGE-----