UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-2946
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
(Exact name of Registrant as specified in charter)
c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices) (Zip code)
Mark N. Jacobs, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 922-6000
Date of fiscal year end: 5/31
Date of reporting period: 11/30/03
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus
Municipal Money
Market Fund, Inc.
SEMIANNUAL REPORT November 30, 2003
YOU, YOUR ADVISOR AND
DREYFUS
A MELLON FINANCIAL COMPANY (SM)
The views expressed in this report reflect those of the portfolio manager only
through the end of the period covered and do not necessarily represent the views
of Dreyfus or any other person in the Dreyfus organization. Any such views are
subject to change at any time based upon market or other conditions and Dreyfus
disclaims any responsibility to update such views. These views may not be relied
on as investment advice and, because investment decisions for a Dreyfus fund are
based on numerous factors, may not be relied on as an indication of trading
intent on behalf of any Dreyfus fund.
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
16 Statement of Assets and Liabilities
17 Statement of Operations
18 Statement of Changes in Net Assets
19 Financial Highlights
20 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Municipal
Money Market Fund, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus Municipal Money Market Fund, Inc. covers the
six-month period from June 1, 2003, through November 30, 2003. Inside, you'll
find valuable information about how the fund was managed during the reporting
period, including a discussion with the fund's portfolio manager, Colleen
Meehan.
Recent reports of marked improvement in the growth of U.S. Gross Domestic
Product suggest to us that the economy has started to turn the corner. Tax cuts
and low mortgage rates have put cash in consumers' pockets, and corporations
have begun to increase spending and investment. As a result, after several years
of falling interest rates, longer-term bond yields have begun to creep upward.
However, the Federal Reserve Board has repeatedly affirmed its commitment to low
short-term interest rates, and yields of tax-exempt money market instruments
have remained near historical lows.
Of course, we have seen upturns before, only to be disappointed when growth
proved unsustainable over the longer term. However, based on recent data, we are
cautiously optimistic about the current economic environment. As always, we urge
you to speak regularly with your financial advisor, who may be in the best
position to suggest the Dreyfus funds designed to meet your current needs,
future goals and attitudes toward risk.
Thank you for your continued confidence and support.
Sincerely,
/S/STEPHEN E. CANTER
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
December 15, 2003
DISCUSSION OF FUND PERFORMANCE
Colleen Meehan, Portfolio Manager
How did Dreyfus Municipal Money Market Fund, Inc. perform during the period?
For the six-month period ended November 30, 2003, the fund produced a 0.47%
annualized yield. Taking into account the effects of compounding, the fund
produced an annualized effective yield of 0.47%.(1)
The fund's performance was primarily the result of declining short-term interest
rates, including a late-June reduction in the federal funds rate to 1%, a
45-year low. However, a rising supply of tax-exempt money market instruments
kept yields high relative to historical norms measured against comparable
taxable money market securities.
What is the fund's investment approach?
The fund seeks as high a level of current income exempt from federal income tax
as is consistent with the preservation of capital and the maintenance of
liquidity.
In pursuing this objective, we employ two primary strategies. First, we normally
attempt to add value by constructing a diverse portfolio consisting
substantially of high-quality, tax-exempt money market instruments from issuers
throughout the United States and its territories that provide income exempt from
federal personal income tax. Second, we actively manage the fund's average
maturity in anticipation of what we believe are supply-and-demand changes in the
short-term municipal marketplace and interest-rate cycles while anticipating
liquidity needs.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the fund, which could enable us to take advantage of
opportunities when short-term supply increases. Generally, yields tend to rise
when there is an increase in new-issue supply competing for investor interest.
New securities, which generally are issued with maturities in the one-year
range, may in turn lengthen the fund's average maturity. If we anticipate
limited new-issue supply,
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
we may then look to extend the fund's average maturity to maintain then-current
yields for as long as we believe practical. At other times, we try to maintain
an average maturity that reflects our view of short-term interest-rate trends
and future supply-and-demand considerations.
What other factors influenced the fund's performance?
Despite early signs of stronger economic growth, yields of tax-exempt money
market funds continued to fall through the spring of 2003 as investors
anticipated further interest-rate reductions. Indeed, in late June the Federal
Reserve Board (the "Fed") reduced short-term interest rates to 1% and indicated
that it intended to keep interest rates low for the foreseeable future to help
stimulate a more robust economic recovery and guard against potential
deflationary pressures. As a result, yields of high-quality, tax-exempt
securities with maturities ranging from overnight to one year fell below 1%.
When new evidence of a sustainable economic recovery began to emerge in the
summer, longer-term bond prices fell. In fact, the U.S. Commerce Department
later estimated that the economy grew at a robust 8.2% annualized rate during
the third quarter of 2003. Nonetheless, money market securities remained
anchored by the 1% federal funds rate and the Fed's repeated affirmation of its
accommodative monetary policy, and tax-exempt yields remained relatively stable
during the reporting period.
In addition, the economy's recent strength has not yet translated into better
fiscal conditions for most states and local governments, and tax receipts have
continued to fall short of projections. Many states and municipalities have
issued short-term debt securities to bridge their budget gaps, and the rising
supply of newly issued instruments has helped make yields of tax-exempt money
market securities more attractive relative to their taxable counterparts. At
times during the reporting period, tax-exempt money market securities provided
100% of the yield of comparable taxable money market securities.
For much of the reporting period, we maintained the fund's weighted average
maturity in a range we considered to be longer than average. To capture
incrementally higher yields, we purchased insured municipal bonds, notes and
commercial paper with maturities between three and nine months.(2) These
securities complemented the fund's holdings of variable-rate demand notes
(VRDNs), on which yields are reset daily or weekly.
What is the fund's current strategy?
We recently reduced the fund's weighted average maturity to position the fund
for seasonal factors that typically affect tax-exempt money market instruments
at year-end. In addition, because yield differences between very short-term
instruments and one-year notes recently have been narrow compared to historical
norms, it has made little sense to us to extend the fund's weighted average
maturity. Of course, we are prepared to adjust our strategies as economic and
market conditions evolve.
December 15, 2003
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
YIELDS FLUCTUATE. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES, AND SOME
INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR
CERTAIN INVESTORS. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED
BY THE FDIC OR THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE
VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY
BY INVESTING IN THE FUND.
(2) INSURANCE ON INDIVIDUAL PORTFOLIO SECURITIES EXTENDS TO THE REPAYMENT OF
PRINCIPAL AND THE PAYMENT OF INTEREST IN THE EVENT OF DEFAULT. IT DOES NOT
EXTEND TO THE MARKET VALUE OF THE PORTFOLIO SECURITIES OR THE VALUE OF THE
FUND'S SHARES.
The Fund
STATEMENT OF INVESTMENTS
November 30, 2003 (Unaudited)
Principal
TAX EXEMPT INVESTMENTS--99.2% Amount ($) Value ($)
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ARIZONA--2.3%
Arizona Health Facilities Authority, Health Care Facilities
Revenue, VRDN (The Terraces Project)
1.10% (LOC; Lloyds TSB Bank PLC) 7,510,000 (a) 7,510,000
Maricopa County Industrial Development Authority, MFHR
(San Clemente Apartments Project)
1.16%, 4/15/2004 (GIC; Transamerica Finance) 6,000,000 6,000,000
Phoenix Industrial Development Authority, MFHR
(Garfield Papago Center Apartments Project)
1.15%, 4/15/2004 8,600,000 (b) 8,600,000
ARKANSAS--.6%
Pulaski County Public Facilities Board, MFHR, VRDN
(Chapelridge Project) 1.25% (LOC; Regions Bank) 5,650,000 (a) 5,650,000
CALIFORNIA--4.2%
State of California, GO Notes, RAW 2%, 6/16/2004
(Liquidity Facility: Lehman Brothers Holdings, Merrill
Lynch and Societe Generale) 40,000,000 40,189,460
COLORADO--4.6%
Colorado Housing and Finance Authority, Revenue:
(Single Family Housing-Class I-IV)
1.18%, 11/1/2004 5,000,000 5,000,000
VRDN (Multifamily Housing-Class I-IV)
1.07% (GIC; CDC Funding Corp. and
Liquidity Facility; FHLB) 10,640,000 (a) 10,640,000
City and County of Denver, Airport Revenue, Refunding
VRDN 1.20% (Insured; MBIA and
Liquidity Facility; Bank One) 10,000,000 (a) 10,000,000
Mountain Village Housing Authority, Housing Facilities
Revenue, VRDN (Village Court Apartments Project)
1.27% (LOC; U.S. Bank NA) 7,690,000 (a) 7,690,000
Southern Ute Indian Tribe of the Southern Ute Indian
Reservation, Industrial Revenue 1.10%, 2/3/2004 10,000,000 10,000,000
DELAWARE--4.3%
Delaware Economic Development Authority, VRDN:
IDR, Refunding (Delaware Clean Power Project)
1.17% (LOC; Motiva Enterprises) 30,000,000 (a) 30,000,000
MFHR (School House Project)
1.15% (LOC; HSBC Bank USA) 6,900,000 (a) 6,900,000
Sussex County, IDR, VRDN
(Pats Inc. Project) 1.35% (LOC; Allfirst Bank) 4,370,000 (a) 4,370,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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DISTRICT OF COLUMBIA--1.9%
District of Columbia, Enterprise Zone Revenue, VRDN
(Trigen-PepCo Energy Services)
1.20% (LOC; Allfirst Bank) 13,055,000 (a) 13,055,000
Metropolitan Washington Airport Authority
Transportation Revenue, CP 1.10% 12/10/2003
(Liquidity Facility; WestLB AG) 5,000,000 5,000,000
FLORIDA--4.9%
Broward County Housing Finance Authority, SFMR, VRDN
Merlots Program 1.25% (Liquidity Facility; Wachovia
Bank and LOC: FNMA and GNMA) 2,970,000 (a) 2,970,000
Capital Projects Finance Authority, Continuing Care
Retirement Revenue, VRDN
(Glenridge On Palmer Ranch)
1.10% (LOC; Bank of Scotland) 13,000,000 (a) 13,000,000
County of Palm Beach, Health Care Facilities Revenue
VRDN (Morse Obligation Group)
1.12% (LOC; Key Bank) 7,940,000 (a) 7,940,000
Sunshine State Governmental Financing Commission
Revenue, CP:
1%, 1/13/2004 (LOC; Landesbank
Hessen-Thuringen Girozentrale) 10,000,000 10,000,000
1.08%, 1/14/2004 (LOC; HSH Nordbank) 6,000,000 6,000,000
Tampa Bay Water Utility System, Water Revenue, VRDN
Merlots Program 1.20% (Insured; FGIC and
Liquidity Facility; Wachovia Bank) 6,975,000 (a) 6,975,000
GEORGIA--4.2%
Cobb County, GO Notes, Refunding 3%, 1/1/2004 3,600,000 3,605,859
Conyers Housing Authority, MFHR, VRDN
1.18% (LOC; Amsouth Bank) 4,000,000 (a) 4,000,000
De Kalb County Housing Authority, MFHR, VRDN
(Forest Columbia Apartments Project)
1.25% (LOC; First Tennessee Bank) 8,500,000 (a) 8,500,000
Gwinnett County Development Authority, IDR, VRDN
(Suzanna's Kitchen Inc. Project)
1.21% (LOC; Wachovia Bank) 6,600,000 (a) 6,600,000
Savannah Economic Development Authority
Industrial Revenue, VRDN
(Home Depot Project) 1.20% 17,000,000 (a) 17,000,000
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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ILLINOIS--10.6%
City of Chicago
Sales Tax Revenue, VRDN, Merlots Program 1.20%
(Insured; FGIC and Liquidity Facility; Wachovia Bank) 10,000,000 (a) 10,000,000
State of Illinois, GO Notes, VRDN
Merlots Program 1.20% (Insured; MBIA and
Liquidity Facility; Wachovia Bank) 9,990,000 (a) 9,990,000
Illinois Educational Facilities Authority
College and University Revenue
VRDN (St. Xavier University Project)
1.11% (LOC; ABN-AMRO) 8,600,000 (a) 8,600,000
Illinois Health Facilities Authority
Healthcare Facilities Revenues:
(Evanston Health Corp.):
.87%, 12/11/2003 15,000,000 15,000,000
1%, 3/25/2004 10,000,000 10,000,000
1.08%, 5/17/2004 5,000,000 5,000,000
VRDN (Helping Hand Rehabilitation Center)
1.12% (LOC; Fifth Third Bank) 3,045,000 (a) 3,045,000
Lake County, MFHR, VRDN
(Grand Oaks Apartments Project)
1.17% (Insured; FNMA and Liquidity Facility; FNMA) 9,000,000 (a) 9,000,000
Lombard, MFHR, Refunding, VRDN
(Clover Creek Apartments Project)
1.13% (Insured; FNMA and Liquidity Facility; FNMA) 10,055,000 (a) 10,055,000
Regional Transportation Authority, GO Notes, VRDN
Merlots Program 1.20% (Insured; MBIA and
Liquidity Facility; Wachovia Bank) 10,190,000 (a) 10,190,000
Roaring Fork Municipal Products, Housing Revenue, VRDN
1.30% (Liquidity Facility; The Bank of New York and
LOC: FHLMC, FNMA and GNMA) 6,095,000 (a) 6,095,000
University of Illinois, University Revenue, VRDN
Merlots Program 1.20% (Insured; MBIA and
Liquidity Facility; Wachovia Bank) 3,500,000 (a) 3,500,000
INDIANA--2.0%
Indiana Health Facility Financing Authority
Health Care Facilities Revenue:
(Ascension Health Credit) 1.15%, 3/2/2004 6,000,000 6,000,000
VRDN (Clark Memorial Hospital Project)
1.25% (LOC; Bank One) 9,720,000 (a) 9,720,000
City of Shelbyville, EDR, VRDN
(K-T Corp. Project) 1.25% (LOC; PNC Bank) 2,990,000 (a) 2,990,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA--.2%
Iowa Higher Education Loan Authority
College and University Revenue, RAN
(Palmer University) 2%, 5/24/2004 1,625,000 1,628,053
KANSAS--1.2%
Kansas Development Finance Authority, MFHR, Refunding
VRDN (Chesapeake Apartments Project)
1.13% (LOC; FHLB) 5,500,000 (a) 5,500,000
Wyandotte County-Kansas City Unified Government
GO Notes 1.04%, 2/1/2004 5,623,089 5,623,089
KENTUCKY--1.6%
Kentucky Rural Water Finance Corporation
Utilities Revenue, VRDN, Flexible Term Program
1.15% (Liquidity Facility; PNC Bank) 8,780,000 (a) 8,780,000
Somerset, Industrial Building Revenue, VRDN
(Wonderfuel LLC Project) 1.25% (LOC; Bank of America) 6,720,000 (a) 6,720,000
LOUISIANA--2.1%
Louisiana Public Facilities Authority, HR, VRDN
1.15% (LOC; Bank One) 15,000,000 (a) 15,000,000
Quachita Parish Industrial Development Board
IDR, VRDN (Garret Manufacturing LLC Project)
1.30% (LOC; Regions Bank) 4,755,000 (a) 4,755,000
MARYLAND--.9%
County of Baltimore, Revenue, Refunding, VRDN
(Shade Tree Trace) 1.22% (LOC; Allfirst Bank) 6,040,000 (a) 6,040,000
Maryland Economic Development Corporation, Revenue
VRDN (Todd/Allan Printing Facility)
1.35% (LOC; Allfirst Bank) 2,125,000 (a) 2,125,000
MASSACHUSETTS--2.0%
Mendon Upton Regional School District, GO Notes
BAN 1.50%, 4/30/2004 8,000,000 8,016,071
Old Rochester Regional School District, GO Notes, BAN
1.75%, 2/19/2004 11,000,000 11,013,815
MICHIGAN--2.8%
Birmingham Economic Development Corporation, LOR
VRDN (Brown St. Association Project)
1.40% (LOC; ABN-AMRO) 1,750,000 (a) 1,750,000
City of Detroit, Sewer Disposal Revenue, VRDN
Merlots Program 1.20% (Insured; FGIC and
Liquidity Facility; Wachovia Bank) 4,685,000 (a) 4,685,000
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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MICHIGAN (CONTINUED)
Detroit Downtown Development Authority, LR, Refunding
VRDN (Millender Center Project)
1.15% (LOC; HSBC Bank USA) 7,000,000 (a) 7,000,000
Lake St. Clair Shores Drain District, GO Notes, VRDN
1.22% (Liquidity Facility; Comerica Bank) 1,990,000 (a) 1,990,000
Michigan Hospital Finance Authority, Health Care Facilities
Revenue, VRDN, Hospital Equipment Loan Program
1.18% (LOC; ABN-AMRO) 10,000,000 (a) 10,000,000
Michigan Housing Development Authority
LOR, Refunding, VRDN (Harbortown Limited Dividend)
1.245% (LOC; Deutsche Bank) 1,000,000 (a) 1,000,000
MINNESOTA--1.1%
Dakota County Development Agency, SFMR, Refunding
1.05% 8/1/2004 (Insured; AMBAC) 10,000,000 10,000,000
MISSISSIPPI--1.9%
Mississippi Business Finance Corporation, College and
University Revenue, VRDN (Belhaven College Project)
1.20% (LOC; First Tennessee Bank) 9,820,000 (a) 9,820,000
University Educational Building Corporation
College and University Revenue, VRDN
(Campus Improvements Project) 1.17%
(Insured; MBIA and Liquidity Facility; Amsouth Bank) 7,820,000 (a) 7,820,000
NEBRASKA--2.8%
Nebhelp Incorporated, College and University Revenue
VRDN, Multiple Mode Student Loan
1.15% (Insured; MBIA and Liquidity Facility;
Lloyds TSB Bank PLC) 26,480,000 (a) 26,480,000
NEVADA--1.1%
Clark County School District, GO Notes, VRDN
Merlots Program 1.20% (Insured; FSA and
Liquidity Facility; Wachovia Bank) 9,990,000 (a) 9,990,000
NEW HAMPSHIRE--2.7%
New Hampshire Business Finance Authority, IDR, VRDN
(Keeney Manufacturing Co. Project)
1.20% (LOC; Fleet National Bank ) 5,100,000 (a) 5,100,000
New Hampshire Health and Education Facilities Authority
Health Care Facilities Revenue, VRDN:
(Catholic Medical Center)
1.12% (LOC; Citizens Bank of Massachusetts) 9,905,000 (a) 9,905,000
(Huntington At Nashua)
1.20% (LOC; Comerica Bank) 10,000,000 (a) 10,000,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW MEXICO--.2%
New Mexico Mortgage Finance Authority, Revenue, VRDN
1.22% (Insured; AIG Funding Inc. and
Liquidity Facility; Merrill Lynch) 2,365,000 (a) 2,365,000
NEW YORK--3.1%
Village of Freeport, GO Notes, BAN
2%, 1/22/2004 5,000,000 5,005,981
Johnson City Central School District, GO Notes, BAN
1.50%, 6/17/2004 4,000,000 4,007,444
New York City Municipal Water Finance Authority
Water and Sewer Revenue, CP
.95%, 12/10/2003
(LOC: Bayerische Landesbank and WestLB AG) 15,000,000 15,000,000
New York Mortgage Agency
Revenue, 1.125%, 4/2/2004 5,000,000 5,000,000
OHIO--3.2%
County of Hamilton, Healthcare Facilities Revenue, VRDN
(Twin Towers and Twin Lakes) 1.13%
(LOC; U.S. Bank NA) 14,000,000 (a) 14,000,000
Lake County, Hospital Facilities Revenue, VRDN
(Lake Hospital Systems Inc.)
1.21% (Insured; Radian Bank and Liquidity
Facility; Fleet National Bank) 12,000,000 (a) 12,000,000
Lorain County, Independent Living Facilities Revenue
VRDN (Elyria United Methodist Project)
1.12% (LOC; Bank One) 4,640,000 (a) 4,640,000
OREGON--.6%
Oregon State Housing and Community Services Department
SFMR 1.35%, 12/23/2003 6,200,000 6,200,000
PENNSYLVANIA--12.5%
Bucks County Industrial Development Authority
Healthcare Facilities Revenue, VRDN
(Pennswood Village Project) 1.12%
(LOC; Fleet National Bank) 7,000,000 (a) 7,000,000
Emmaus General Authority, Revenue, VRDN:
1.13%, Series F-19 (LOC; Depfa Bank PLC) 4,300,000 (a) 4,300,000
1.13%, Sub-Series G-18 (LOC; Depfa Bank PLC) 5,000,000 (a) 5,000,000
Franklin County Industrial Development Authority
Industrial Revenue, VRDN (Menno Haven Project)
1.20% (Insured; Radian Bank and Liquidity Facility;
Fleet National Bank) 13,200,000 (a) 13,200,000
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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PENNSYLVANIA (CONTINUED)
Lancaster County Hospital Authority, Senior Living
Facilities Revenue, VRDN:
(Luthercare Project) 1.22% (LOC; Allfirst Bank) 17,695,000 (a) 17,695,000
(QuarryVille Presbyterian) 1.15% (LOC; Allfirst Bank) 7,700,000 (a) 7,700,000
(Willow Valley Retirement Project)
1.20% (Insured; Radian Bank and Liquidity Facility;
Fleet National Bank) 10,000,000 (a) 10,000,000
Montgomery County Higher Education and Health
Authority, Revenue, VRDN
(Pennsylvania Higher Education and Health):
1.16% (LOC; Allfirst Bank) 8,455,000 (a) 8,455,000
1.20% (LOC; M&T Bank) 12,415,000 (a) 12,415,000
State of Pennsylvania, GO Notes, VRDN, Merlots Program
1.20% (Insured; MBIA and Liquidity Facility;
Wachovia Bank) 5,875,000 (a) 5,875,000
Philadelphia Authority for Industrial Development
Industrial Revenue, VRDN (30th Street Station Project)
1.10% (Insured; MBIA and Liquidity Facility;
The Bank of New York) 8,600,000 (a) 8,600,000
Philadelphia Gas Works, Electric Revenue, CP
1.12%, 12/5/2003 (LOC; JPMorgan Chase Bank) 15,100,000 15,100,000
Philadelphia Hospitals and Higher Education Facilities
Authority, Healthcare Facilities Revenue, VRDN
(Children's Hospital Project) 1.10%
(LOC: JPMorgan Chase Bank and WestLB AG) 3,400,000 (a) 3,400,000
RHODE ISLAND--.5%
Rhode Island Housing and Mortgage Finance Corporation
Revenue 4%, 12/22/2003 5,000,000 5,008,423
SOUTH CAROLINA--1.6%
South Carolina Association of Governmental Organizations
COP 1.50%, 4/14/2004 15,000,000 15,024,662
TENNESSEE--3.2%
Blount County Public Building Authority, Revenue, VRDN
(Local Government Public Improvement) 1.13%
(Insured; AMBAC and Liquidity Facility; Regions Bank) 2,520,000 (a) 2,520,000
Knoxville Utilities Board, Water Revenue, VRDN 1.07%
(Insured; FSA and Liquidity Facility; SunTrust Bank) 11,500,000 11,500,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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TENNESSEE (CONTINUED)
Metropolitan Government Nashville and Davidson County
Health and Educational Facility Board, College and
University Revenue, VRDN (Vanderbilt University)
1.06% (Liquidity Facility: Bayerische Landesbank
and Landesbank Hessen-Thuringen Girozentrale) 16,555,000 (a) 16,555,000
TEXAS--8.9%
City of Austin, Water and Wastewater Systems Revenue
VRDN, Merlots Program 1.20% (Insured; FSA and
Liquidity Facility; Wachovia Bank) 6,415,000 (a) 6,415,000
Dallas Fort-Worth International Airport Facilities
Improvement Co., Airport Revenue, VRDN, Merlots
Program 1.25%, (Insured; FSA and Liquidity Facility;
Wachovia Bank) 3,540,000 (a) 3,540,000
City of Denton, Utility System Revenue
Refunding and Improvement
5.625%, 12/1/2003 (Insured; FSA) 3,545,000 3,545,000
Greater Texas Student Loan Corporation
Student Loan Revenue, VRDN 1.14%
(LOC; Student Loan Marketing Corp.) 10,000,000 (a) 10,000,000
Harris County Health Facilities Development Authority
HR, VRDN (Texas Children's Hospital)
1.12% (Insured; MBIA and Liquidity Facility;
JPMorgan Chase Bank) 7,500,000 (a) 7,500,000
Port of Port Arthur Navigation District, Environmental
Facilities Revenue, Refunding, VRDN
(Motiva Enterprises Project) 1.20% 5,000,000 (a) 5,000,000
City of Richardson, GO Notes 1%, 6/15/2004
(Liquidity Facility; Bank of America) 5,000,000 5,000,000
City of San Antonio, Water and Sewer Revenue
VRDN, Merlots Program 1.20%
(Liquidity Facility; Wachovia Bank) 6,000,000 (a) 6,000,000
State of Texas:
GO Notes, Refunding (College Student Loan)
.95% 7/1/2004 (Liquidity Facility; Landesbank
Hessen-Thuringen Girozentrale) 20,000,000 20,000,000
Revenue, TRAN 2%, 8/31/2004 17,000,000 17,109,070
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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UTAH--.8%
Intermountain Power Agency, GO Notes, CP
1.10%, 12/8/2003 (Liquidity Facility:
Bank of America and Scotia Bank) 7,200,000 7,200,000
WASHINGTON--1.8%
Pierce County Economic Development Corporation
Industrial Revenue, VRDN (Seatac Packaging Project)
1.20% (LOC; HSBC Bank USA) 5,300,000 (a) 5,300,000
State of Washington, GO Notes, VRDN, Merlots Program
1.20% (Insured: FGIC and MBIA and
Liquidity Facility; Wachovia Bank) 5,010,000 (a) 5,010,000
Washington Housing Finance Commission, MFHR, VRDN
(Holly Village Senior Living) 1.15%
(Insured; FNMA and Liquidity Facility; FNMA) 6,600,000 (a) 6,600,000
WYOMING--2.8%
Campbell County, IDR
(Two Elk Power Generation Station Project)
1.40%, 12/3/2003 (GIC; Bayerische Landesbank) 27,000,000 27,000,000
TOTAL INVESTMENTS (cost $939,906,927) 99.2% 939,906,927
CASH AND RECEIVABLES (NET) .8% 7,401,953
NET ASSETS 100.0% 947,308,880
Summary of Abbreviations
AMBAC American Municipal Bond GO General Obligation
Assurance Corporation HR Hospital Revenue
BAN Bond Anticipation Notes IDR Industrial Development Revenue
CP Commercial Paper LOC Letter of Credit
EDR Economic Development Revenue LOR Limited Obligation Revenue
FGIC Financial Guaranty Insurance LR Lease Revenue
Company MBIA Municipal Bond Investors
FHLB Federal Home Loan Bank Assurance Insurance
FHLMC Federal Home Loan Mortgage Corporation
Corporation MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage RAN Revenue Anticipation Notes
Association RAW Revenue Anticipation Warrants
FSA Financial Security Assurance RAW Revenue Anticipation Warrants
GIC Guaranteed Investment Contract SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage TRAN Tax and Revenue Anticipation
Association Notes
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
F1+, F1 VMIG1, MIG1, P1 SP1+, SP1, A1+, A1 91.7
AAA, AA, A (c) Aaa, Aaa, A (c) AAA, AA, A (c) 4.5
Not Rated (d) Not Rated (d) Not Rated (d) 3.8
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(B) 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.
(C) NOTES WHICH ARE NOT F, MIG AND SP RATED ARE REPRESENTED BY BOND RATINGS OF
THE ISSUERS.
(D) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 939,906,927 939,906,927
Cash 5,152,148
Interest receivable 2,684,286
Prepaid expenses 28,813
947,772,174
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 422,320
Payable for shares of Common Stock redeemed 19,600
Accrued expenses 21,374
463,294
- --------------------------------------------------------------------------------
NET ASSETS ($) 947,308,880
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 947,150,340
Accumulated net realized gain (loss) on investments 158,540
- --------------------------------------------------------------------------------
NET ASSETS ($) 947,308,880
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(5 billion shares of $.001 par value Common Stock authorized) 948,926,518
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS..
STATEMENT OF OPERATIONS
Six Months Ended November 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 5,040,244
EXPENSES:
Management fee--Note 2(a) 2,373,662
Shareholder servicing costs--Note 2(b) 279,954
Custodian fees 44,057
Director's fees and expenses--Note 2(c) 31,065
Professional fees 27,262
Registration fees 19,225
Prospectus and shareholders' reports 1,324
Miscellaneous 12,846
TOTAL EXPENSES 2,789,395
INVESTMENT INCOME--NET, REPRESENTING NET INCREASE
IN NET ASSETS RESULTING FROM OPERATIONS 2,250,849
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
November 30, 2003 Year Ended
(Unaudited) May 31, 2003
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 2,250,849 7,790,449
Net realized gain (loss) from investments -- 248,020
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,250,849 8,038,469
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (2,250,849) (7,790,449)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share)
Net proceeds from shares sold 915,952,614 1,613,536,986
Dividends reinvested 984,304 3,531,255
Cost of shares redeemed (874,391,552) (1,737,858,623)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS 42,545,366 (120,790,382)
TOTAL INCREASE (DECREASE) IN NET ASSETS 42,545,366 (120,542,362)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 904,763,514 1,025,305,876
END OF PERIOD 947,308,880 904,763,514
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Six Months Ended Year Ended May 31,
November 30, 2003 ---------------------------------------------------------------------
(Unaudited) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .002 .008 .015 .034 .030 .027
Distributions:
Dividends from
investment income--net (.002) (.008) (.015) (.034) (.030) (.027)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .48(a) .84 1.51 3.46 3.05 2.78
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .59(a) .59 .58 .59 .62 .63
Ratio of net investment income
to average net assets .47(a) .83 1.50 3.39 3.00 2.73
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 947,309 904,764 1,025,306 920,718 829,854 901,128
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Municipal Money Market Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
maximize current income exempt from federal income tax to the extent consistent
with the preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation (the "Manager") serves as the fund's investment adviser. The Manager
is a wholly-owned subsidiary of Mellon Bank, N.A., which is a wholly-owned
subsidiary of Mellon Financial Corporation. Dreyfus Service Corporation (the
"Distributor"), a wholly-owned subsidiary of the Manager, is the distributor of
the fund's shares, which are sold to the public without a sales charge.
It is the fund's policy to maintain a continuous net asset value per share of
$1.00; the fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the fund will be able to maintain a stable net asset value per share of
$1.00.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, 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 at amortized cost
in accordance with Rule 2A-7 of the Act, which has been determined by the fund's
Board of Directors to represent the fair value of the fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Interest income, adjusted for amortization of
discount and premium on investments, is earned from settlement date and
recognized on the accrual basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Cost of investments
represent amortized cost. Under the terms of the
custody agreement, the fund received net earnings credits of $41,980 during the
period ended November 30, 2003 based on available cash balances left on deposit.
Income earned under this arrangement is included in interest income.
(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, if any, 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.
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2003 was all tax exempt income. The tax character of current year
distributions will be determined at the end of the current fiscal year.
At November 30, 2003, 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).
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .50 of 1% of the value of the fund's average
daily net assets and is payable monthly.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(B) Under the Shareholder Services Plan, the fund reimburses the Distributor 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 November 30, 2003, the fund was charged $147,732
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 November 30, 2003, the fund was charged $74,490 pursuant to the transfer
agency agreement.
(C) Each Board member also serves as a Board member of other funds within the
Dreyfus complex. Annual retainer fees and attendance fees are allocated to each
fund based on net assets.
NOTES
For More Information
Dreyfus
Municipal Money
Market Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to info@dreyfus.com
ON THE INTERNET Information
can be viewed online or
downloaded from:
http://www.dreyfus.com
(c) 2004 Dreyfus Service Corporation 910SA1103
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Registrant's principal executive and principal financial officers
have concluded, based on their evaluation of the Registrant's disclosure
controls and procedures as of a date within 90 days of the filing date of this
report, that the Registrant's disclosure controls and procedures are reasonably
designed to ensure that information required to be disclosed by the Registrant
on Form N-CSR is recorded, processed, summarized and reported within the
required time periods and that information required to be disclosed by the
Registrant in the reports that it files or submits on Form N-CSR is accumulated
and communicated to the Registrant's management, including its principal
executive and principal financial officers, as appropriate to allow timely
decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over
financial reporting that occurred during the Registrant's most recently ended
fiscal half-year that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(b) Certification of principal executive and principal financial officers
as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
By: /S/STEPHEN E. CANTER
Stephen E. Canter
President
Date: January 23, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /S/STEPHEN E. CANTER
Stephen E. Canter
Chief Executive Officer
Date: January 23, 2004
By: /S/JAMES WINDELS
James Windels
Chief Financial Officer
Date: January 23, 2004
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of
1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial
officers as required by Rule 30a-2(b) under the Investment Company Act of
1940. (EX-99.906CERT)