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 811-3726
DREYFUS NEW YORK TAX EXEMPT BOND 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: May 31, 2003
Date of reporting period: May 31, 2003
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus
New York Tax Exempt
Bond Fund, Inc.
ANNUAL REPORT May 31, 2003
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
- --------------------------------------------------
2 Letter from the Chairman
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
18 Financial Highlights
19 Notes to Financial Statements
23 Report of Independent Auditors
24 Important Tax Information
25 Board Members Information
27 Officers of the Fund
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus New York Tax Exempt Bond Fund, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This annual report for Dreyfus New York Tax Exempt Bond Fund, Inc. covers the
12-month period from June 1, 2002, through May 31, 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, Joseph Darcy.
We have recently seen some signs of stability in the U.S. financial markets.
Perhaps most important, the war in Iraq wound down quickly, without disrupting
oil supplies or major incidents of terrorism. Many stock market indices have
posted encouraging gains since the start of 2003, although it is uncertain
whether such gains will continue. At the same time, an estimated $350 billion in
federal tax cuts were signed into law on May 28, and the evidence to date
suggests that any adverse impact on municipal bond yields should be minimal.
Indeed, rising state and local taxes may make municipal bonds more valuable for
investors seeking tax-exempt income.
Of course, problems and concerns remain. In the U.S. economy, unemployment has
risen to multiyear highs, and corporations remain reluctant to spend. Positive
factors appear to outweigh negative ones, however, and we believe that the U.S.
economy is on the path to recovery.
What are the implications for your investments? We believe that municipal bonds
may benefit as state and local tax rates rise, making tax-exempt yields more
attractive compared to taxable yields for many investors. At the same time,
because of ongoing fiscal pressures affecting many states and municipalities,
diversification remains important. As for stocks, we currently believe that
selectivity among individual companies can be a key factor in the equity
markets. However, no one can say for certain what direction the markets will
take over time. Your financial advisor can help you to ensure that your
portfolio reflects your investment needs, long-term 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
June 16, 2003
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus New York Tax Exempt Bond Fund, Inc. perform relative to its
benchmark?
For the 12-month period ended May 31, 2003, the fund achieved a total return of
9.56% .(1) In comparison, the Lehman Brothers Municipal Bond Index, the fund's
benchmark, achieved a total return of 10.36% for the same period.(2) In
addition, the fund is reported in the Lipper New York Municipal Debt Funds
category. Over the reporting period, the average total return for all funds
reported in this Lipper category was 9.19% .(3) The fund's benchmark is a
broad-based measure of overall municipal bond performance. There are no
broad-based municipal bond market indices reflective of the performance of bonds
issued by a single state. For this reason, we have also provided the fund's
Lipper category average return for comparative purposes.
New York's municipal bond market was primarily influenced by declining interest
rates and robust investor demand for high-quality municipal bonds. The fund
produced a lower return than that of its benchmark, because the Index contains
bonds from many states, not just New York, and does not reflect fees and
expenses. However, the fund produced a slightly higher return than its Lipper
category average, which we attribute to our focus on high-quality securities.
What is the fund's investment approach?
The fund seeks as high a level of current income exempt from federal, New York
state and New York city income taxes as is consistent with the preservation of
capital. To pursue this goal, the fund normally invests substantially all of its
assets in municipal bonds that provide income exempt from federal, New York
state and New York city personal income taxes. When the fund manager believes
that acceptable New York municipal obligations are unavailable for investment,
the fund may invest temporarily in municipal obligations that pay income subject
to New York state and New York city income taxes, but not federal income tax.
The dollar-weighted average maturity of the fund's portfolio normally exceeds
ten years, but the fund may invest without regard to maturity. The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
The fund will invest at least 80% of its assets in investment-grade municipal
bonds or the unrated equivalent as determined by Dreyfus.
The portfolio manager may buy and sell bonds based on credit quality, market
outlook and yield potential. In selecting municipal bonds for investment, the
portfolio manager may assess the current interest-rate environment and the
municipal bond' s potential volatility in different rate environments. The
portfolio manager focuses on bonds with the potential to offer attractive
current income, typically looking for bonds that can provide consistently
attractive current yields or that are trading at competitive market prices. A
portion of the fund' s assets may be allocated to "discount" bonds, which are
bonds that sell at a price below their face value, or to "premium" bonds, which
are bonds that sell at a price above their face value. The fund's allocation
either to discount bonds or to premium bonds will change along with the
portfolio manager' s changing views of the current interest-rate and market
environment. The portfolio manager also may look to select bonds that are most
likely to obtain attractive prices when sold.
What other factors influenced the fund's performance?
Much of the reporting period was difficult for New York's bond market. Because
the U.S. economy grew only modestly, the state received less revenue from income
taxes, sales taxes and capital gains taxes than it had projected. The state
balanced its fiscal 2003 budget through spending cutbacks and increased
borrowing. The state' s fiscal 2004 budget, which was passed despite Governor
Pataki' s objections, included tax hikes for both New York state and New York
City residents. While one of the major credit-rating agencies upgraded its
outlook for New York City, another agency downgraded the state's credit rating
because of ongoing fiscal concerns.
The state and city' s fiscal problems and the increase in the supply of newly
issued bonds contributed to heightened market volatility throughout the
reporting period. The effects of New York's budget problems might have been more
severe had it not been for generally favorable market conditions on the national
level. The Federal Reserve Board's attempts to stimulate renewed economic growth
included a reduction of short-term interest rates in November 2002, which drove
bond yields lower and prices higher, contributing positively to the fund's total
return.
Because of mounting fiscal pressures, we intensified the fund's focus on what we
believe are better quality securities. We shifted assets away from the state's
uninsured general obligation bonds, and we have favored insured bonds and
securities from highly rated local government entities, including
revenue-producing environmental plants, transportation facilities and dormitory
authorities backed by private universities.(4) However, we maintained a cautious
approach to bonds issued by New York City.
The fund began the reporting period with a relatively short average duration,
which was largely the result of certain yield enhancement strategies. Over time,
we gradually extended the fund's average duration to a range that is modestly
shorter than that of the fund's Lipper category average.
What is the fund's current strategy?
We have continued to maintain a relatively conservative investment posture, and
we continue to monitor New York' s fiscal condition. When purchasing new
securities to complement the fund's core holdings, we generally have focused on
high-quality, income-oriented bonds in the 25- to 30-year maturity range. We
have also attempted to reduce the number of holdings in the fund by
consolidating positions into larger blocks of securities from some of the
market's more well-known, liquid issuers.
June 16, 2003
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-NEW YORK RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL
ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE
FULLY TAXABLE.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
IS A WIDELY ACCEPTED, UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE
LONG-TERM, INVESTMENT-GRADE, TAX-EXEMPT BOND MARKET. INDEX RETURNS DO NOT
REFLECT FEES AND EXPENSES ASSOCIATED WITH OPERATING A MUTUAL FUND.
(3) SOURCE: LIPPER INC. -- CATEGORY AVERAGE RETURNS REFLECT THE FEES AND
EXPENSES OF THE FUNDS COMPRISING THE AVERAGE.
(4) INSURANCE ON INDIVIDUAL BONDS 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
FUND PERFORMANCE
Dreyfus Lehman
New York Brothers
Tax Exempt Municipal
PERIOD Bond Bond
Fund, Inc. Index *
5/31/93 10,000 10,000
5/31/94 10,142 10,247
5/31/95 10,907 11,181
5/31/96 11,108 11,691
5/31/97 12,011 12,660
5/31/98 13,135 13,847
5/31/99 13,722 14,494
5/31/00 13,387 14,369
5/31/01 14,992 16,113
5/31/02 15,838 17,161
5/31/03 17,351 18,941
Comparison of change in value of $10,000 investment in Dreyfus New York Tax
Exempt Bond Fund, Inc. and the Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 5/31/03
1 Year 5 Years 10 Years
- ------------------------------------------------------------------------
FUND 9.56% 5.73% 5.67%
((+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE FUND'S PERFORMANCE
SHOWN IN THE GRAPH AND TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS NEW YORK TAX
EXEMPT BOND FUND, INC. ON 5/31/93 TO A $10,000 INVESTMENT MADE IN THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX (THE "INDEX") ON THAT DATE. ALL DIVIDENDS AND
CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THE FUND INVESTS PRIMARILY IN NEW YORK MUNICIPAL SECURITIES AND ITS PERFORMANCE
SHOWN IN THE LINE GRAPH ABOVE TAKES INTO ACCOUNT FEES AND EXPENSES. THE INDEX IS
NOT LIMITED TO INVESTMENTS PRINCIPALLY IN NEW YORK MUNICIPAL OBLIGATIONS AND
DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. THE INDEX, UNLIKE
THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE LONG-TERM,
INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED TAX-EXEMPT BOND MARKET, CALCULATED
BY USING MUNICIPAL BONDS SELECTED TO BE REPRESENTATIVE OF THE MUNICIPAL MARKET
OVERALL. THESE FACTORS CAN CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR
UNDERPERFORMING THE FUND. FURTHER INFORMATION RELATING TO FUND PERFORMANCE,
INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL
HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
May 31, 2003
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.0% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK--93.7%
Erie County Industrial Development Agency, Life Care
Community Revenue (Episcopal Church Home)
5.875%, 2/1/2018 11,000,000 11,032,010
Huntington Housing Authority, Senior Housing Facility
Revenue (Gurwin Jewish Senior Residences)
6%, 5/1/2039 3,750,000 3,320,400
Long Island Power Authority, Electric Power and Light
System Revenue:
5.25%, 12/1/2014 (Insured; FSA) 16,000,000 19,127,200
5.25%, 12/1/2026 (Insured; MBIA) 15,000,000 16,087,500
5.375%, 5/1/2033 8,000,000 8,339,920
Metropolitan Transportation Authority, Revenue:
5.125%, 11/15/2031 13,100,000 13,792,859
Commuter Facilities 6%, 7/1/2016
(Insured; FGIC) (Prerefunded 7/1/2008) 9,000,000 (a) 10,710,990
Service Contract 5.125%, 1/1/2029 20,975,000 22,143,307
Municipal Assistance Corporation for City of New York,
Revenue:
6%, 7/1/2005 9,500,000 10,452,090
6.25%, 7/1/2008 14,455,000 17,041,722
New York City:
6.50%, 3/15/2005 13,770,000 14,930,536
5.75%, 2/1/2007 (Insured; AMBAC) 305,000 339,636
10.03%, 2/1/2007 6,000,000 (b,c) 7,362,780
6.25%, 2/15/2007 5,000 5,411
6.25%, 2/15/2007 (Prerefunded 2/15/2005) 5,370,000 (a) 5,894,703
5.75%, 8/15/2008 5,000 5,116
5.75%, 8/15/2008 (Prerefunded 8/15/2003) 4,995,000 (a) 5,118,826
5.375%, 8/1/2009 (Insured; FGIC) 7,000,000 7,936,880
6.25%, 8/1/2009 (Prerefunded 8/1/2004) 8,660,000 (a) 9,312,098
6.25%, 8/1/2010 (Prerefunded 8/1/2004) 9,400,000 (a) 10,107,820
5.80%, 8/1/2011 18,775,000 19,169,838
5.75%, 8/15/2011 (Prerefunded 8/15/2003) 1,120,000 (a) 1,147,765
6.375%, 8/15/2012 (Prerefunded 8/15/2005) 9,975,000 (a) 11,214,893
5.875%, 8/1/2024 (Insured; MBIA) 13,700,000 15,323,450
New York City Industrial Development Agency:
IDR:
(Brooklyn Navy Yard Cogen Partners):
6.20%, 10/1/2022 13,925,000 13,881,554
5.65%, 10/1/2028 12,500,000 11,611,000
(Field Hotel Association LP) 6%, 11/1/2028 13,525,000 (f) 8,155,575
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue:
5.625%, 6/15/2011 14,590,000 15,428,633
5.625%, 6/15/2011 (Prerefunded 6/15/2004) 210,000 (a) 222,071
5.625%, 6/15/2019 (Insured; MBIA) 16,085,000 17,835,048
5.75%, 6/15/2029 (Insured; MBIA) 13,000,000 14,734,720
5.50%, 6/15/2033 8,890,000 9,875,368
5%, 6/15/2034 14,425,000 15,084,222
5.125%, 6/15/2034 6,475,000 6,835,334
New York City Transitional Finance Authority,
Future Tax Secured Revenue:
6%, 8/15/2016 (Insured; FGIC)
(Prerefunded 8/15/2009) 5,000,000 (a) 6,105,850
5.75%, 8/15/2019 5,000,000 6,033,950
5.50%, 5/1/2025 4,800,000 5,332,704
5.50%, 5/1/2025
(Prerefunded 5/1/2009) 3,710,000 (a) 4,397,871
5%, 2/1/2027 15,775,000 16,519,264
State of New York:
5.70%, 8/15/2011 4,500,000 4,925,025
5.80%, 10/1/2013 4,715,000 5,312,438
5.875%, 3/15/2014 3,000,000 3,285,030
5.50%, 7/15/2016 10,165,000 11,531,074
New York State Dormitory Authority, Revenues:
10.122%, 5/15/2011 9,950,000 (b,c) 13,822,540
(City University Systems):
5.25%, 7/1/2008 (Insured; FGIC) 200,000 229,352
8.431%, 7/1/2008 (Insured; FGIC) 4,900,000 (b,c) 6,330,604
8.631%, 7/1/2008 (Insured; FGIC) 3,950,000 (b,c) 5,088,548
5.35%, 7/1/2009 (Insured; FGIC) 200,000 228,964
5.50%, 7/1/2016 (Insured; AMBAC) 23,000,000 25,590,490
5.625%, 7/1/2016 (Insured; FGIC) 9,120,000 11,167,440
5.50%, 7/1/2019 (Insured; FSA) 10,000,000 11,378,800
(Columbia University):
5.125%, 7/1/2018 4,450,000 5,029,657
5%, 7/1/2022 2,895,000 3,142,001
5%, 7/1/2023 4,720,000 5,090,142
(Fordham University)
5%, 7/1/2027 (Insured; FGIC) 5,100,000 5,364,027
Health, Hospital and Nursing Home:
(Lenox Hill Hospital Obligated Group)
5.50%, 7/1/2030 4,000,000 4,213,080
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenues (continued):
Health, Hospital and Nursing Home (continued):
(Memorial Sloan Kettering Cancer Center):
5.75%, 7/1/2020 (Insured; MBIA) 3,000,000 3,668,340
5%, 7/1/2034 24,595,000 25,679,639
(Menorah Campus)
6.10%, 2/1/2037 (Insured; FHA) 8,300,000 9,443,740
(Miriam Osborne Memorial Home)
6.875%, 7/1/2025 (Insured; ACA) 6,105,000 6,951,214
(North Shore University Hospital at Forest Hills)
5.50%, 11/1/2013 (Insured; MBIA) 2,625,000 3,149,843
(New York University):
5.75%, 7/1/2027 (Insured; MBIA) 34,625,000 42,706,129
5%, 7/1/2031 (Insured; AMBAC) 5,000,000 5,226,300
5.50%, 7/1/2040 (Insured; AMBAC) 8,000,000 9,790,320
(Rockefeller University) 5%, 7/1/2032 18,480,000 19,522,087
(School District Financing Program):
5.375%, 10/1/2022 (Insured; MBIA) 35,000,000 38,904,250
5.25%, 10/1/2023 (Insured; MBIA) 10,000,000 10,912,400
State Personal Income Tax
5.375%, 3/15/2020 5,000,000 5,619,000
(State University Dormitory Facilities)
5%, 7/1/2032 9,820,000 10,245,795
(State University Educational Facilities):
5.875%, 5/15/2011 100,000 119,577
7.50%, 5/15/2011 2,570,000 3,210,907
7.50%, 5/15/2011
(Prerefunded 5/15/2011) 1,180,000 (a) 1,541,045
5.50%, 5/15/2013 (Insured; MBIA) 100,000 119,838
5.50%, 5/15/2013 (Insured; FGIC) 35,000 41,735
9.589%, 5/15/2013 (Insured; FGIC) 5,000,000 (b,c) 6,924,500
9.589%, 5/15/2013 (Insured; MBIA) 6,450,000 (b,c) 9,009,167
Series B 5.75%, 5/15/2016 (Insured; FSA) 2,000,000 2,418,880
Series C 5.75%, 5/15/2016 (Insured; FSA) 4,000,000 4,942,920
5.50%, 7/1/2026 (Insured; FGIC) 10,000,000 11,100,200
New York State Energy Research
and Development Authority:
Electric Facilities Revenue
(Consolidated Edison Co. Project)
7.125%, 12/1/2029 13,000,000 14,146,080
PCR (Central Hudson Gas)
5.45%, 8/1/2027 (Insured; AMBAC) 9,000,000 9,711,090
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Environmental Facilities Corp., State
Water and Drinking Revolving Funds (New York
City Municipal Water Project):
5.25%, 6/15/2019 11,205,000 12,579,517
5.25%, 6/15/2020 13,745,000 15,307,806
5.125%, 6/15/2023 14,685,000 15,852,751
5.125%, 6/15/2027 10,000,000 10,670,400
New York State Housing Finance Agency, Revenue:
Health Facilities 6%, 5/1/2008 10,000 11,104
Housing Projects 6.10%, 11/1/2015 (Insured; FSA) 12,835,000 14,164,706
Multi-Family Housing Secured Mortgage
10.372%, 5/1/2008 (Guaranteed; SONYMA) 4,995,000 (b,c) 6,093,800
State Personal Income Tax (Economic
Development and Housing) 5.125%, 9/15/2028 12,425,000 13,142,668
New York State Local Government Assistance Corp.:
5%, 4/1/2021 (Insured; MBIA) 10,000,000 11,259,100
6%, 4/1/2024 (Prerefunded 4/1/2005) 6,905,000 7,658,266
New York State Medical Care Facilities
Finance Agency, Revenue:
FHA Insured Mortgage:
(Montefiore Medical Center)
5.75%, 2/15/2015 (Insured; AMBAC) 6,750,000 7,303,905
(New York Hospital) 6.50%, 8/15/2029
(Insured; AMBAC) (Prerefunded 2/15/2005) 12,000,000 (a) 13,334,400
Hospital and Nursing Home FHA Insured Mortgage:
6.125%, 2/15/2015 (Insured; FHA) 10,785,000 11,726,099
6.125%, 2/15/2015
(Insured; FHA) (Prerefunded 2/15/2003) 2,480,000 (a) 2,806,269
Mental Health Services 6%, 2/15/2025
(Insured; MBIA) (Prerefunded 2/15/2005) 8,710,000 (a) 9,605,040
New York State Mortgage Agency,
Homeowner Mortgage, Revenue:
5.10%, 10/1/2007 150,000 165,213
5.40%, 10/1/2010 160,000 173,786
9.34%, 10/1/2010 1,380,000 (b,c) 1,617,802
5.55%, 10/1/2012 190,000 204,600
9.64%, 10/1/2012 2,405,000 (b,c) 2,774,600
5.85%, 4/1/2017 2,620,000 2,831,303
6%, 4/1/2017 6,000,000 6,452,040
6%, 10/1/2022 5,000,000 5,337,750
6.20%, 10/1/2026 100,000 110,521
10.94%, 10/1/2026 14,000,000 (b,c) 16,945,880
5.80%, 10/1/2028 8,920,000 9,891,120
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Mortgage Agency,
Homeowner Mortgage, Revenue (continued):
5.85%, 10/1/2028 9,845,000 10,454,110
5.40%, 4/1/2029 9,995,000 10,412,491
5.875%, 4/1/2030 7,000,000 7,543,480
New York State Power Authority,
Revenue and General Purpose:
5.50%, 11/15/2016 5,000,000 5,424,400
5.50%, 11/15/2017 3,500,000 3,793,440
5%, 11/15/2019 10,000,000 10,916,700
5%, 11/15/2020 10,000,000 10,842,400
New York State Thruway Authority,
Service Contract Revenue:
(Highway and Bridge Trust Fund):
5%, 4/1/2019 (Insured; AMBAC) 13,195,000 14,388,884
5%, 4/1/2020 (Insured; AMBAC) 10,000,000 10,834,500
(Local Highway and Bridge):
5.50%, 4/1/2004 8,000,000 8,293,760
5%, 4/1/2006 250,000 274,238
8.385%, 4/1/2006 10,660,000 (b,c) 12,717,593
5.25%, 4/1/2010 8,550,000 9,736,227
5.25%, 4/1/2010 (Prerefunded 4/1/2007) 1,450,000 (a) 1,664,875
6%, 4/1/2011 2,200,000 2,546,742
6%, 4/1/2011 (Prerefunded 4/1/2007) 2,800,000 (a) 3,292,520
6%, 4/1/2012 2,395,000 2,772,476
6%, 4/1/2012 (Prerefunded 4/1/2007) 3,800,000 (a) 4,468,420
5.75%, 4/1/2013
(Insured; MBIA) (Prerefunded 4/1/2004) 5,185,000 (a) 5,492,989
5.75%, 4/1/2016 (Insured; MBIA)
(Prerefunded 4/1/2006) 32,950,000 (a) 37,609,460
State Personal Income Tax (Transportation)
5.125%, 3/15/2021 10,000,000 10,845,700
New York State Urban Development Corp.:
Correctional Capital Facilities:
5.625%, 1/1/2017 (Insured; FSA) 5,865,000 6,617,362
5.25%, 1/1/2030 (Insured; FSA) 5,000,000 5,837,450
Local or Guaranteed Housing
5.50%, 7/1/2016 (Insured; FHA) 13,250,000 14,742,348
State Facilities
5.70%, 4/1/2020 (Insured; MBIA) 20,000,000 24,398,200
Niagara County Industrial Development Agency, SWDR
5.55%, 11/15/2024 2,500,000 2,647,975
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Orange County Industrial Development Agency,
Life Care Community Revenue
(Glen Arden Inc. Project) 5.70%, 1/1/2028 4,600,000 3,907,516
Port Authority of New York and New Jersey:
(Consolidated Bond 85th Series)
5.375%, 3/1/2028 15,625,000 17,889,219
(Consolidated Bond 93rd Series)
6.125%, 6/1/2094 15,000,000 18,004,950
(Consolidated Bond 99th Series)
6%, 11/1/2013 (Insured; FGIC) 5,810,000 6,274,858
(Consolidated Bond 121st Series)
5.375%, 10/15/2035 (Insured; MBIA) 14,950,000 16,367,111
(Consolidated Bond 125th Series)
5%, 10/15/2019 (Insured; FSA) 13,150,000 14,490,906
Special Obligation Revenue
(JFK International Air Terminal-6):
6.25%, 12/1/2013 (Insured; MBIA) 6,000,000 7,260,360
6.25%, 12/1/2014 (Insured; MBIA) 10,000,000 12,104,600
Scotia Housing Authority, Housing Revenue
(Coburg Village Inc. Project):
6.10%, 7/1/2018 1,400,000 (d) 907,200
6.15%, 7/1/2028 3,880,000 (d) 2,514,240
6.20%, 7/1/2038 13,000,000 (d) 8,424,000
Suffolk County Industrial Development Agency:
IDR (Nissequogue Cogen Partners Facility)
5.30%, 1/1/2013 2,250,000 2,184,120
Solid Waste Disposal Facilities Revenue,
(Ogden Martin Systems):
5.75%, 10/1/2006 (Insured; AMBAC) 25,000 28,300
9.94%, 10/1/2006 (Insured; AMBAC) 4,925,000 (b,c) 6,225,249
Tompkins County Industrial Development Agency,
Civic Facility Revenue (Ithacare Center Project)
6.20%, 2/1/2037 (Insured; FHA) 6,000,000 6,854,520
Triborough Bridge and Tunnel Authority,
General Purpose Revenues:
5.375%, 1/1/2019 7,500,000 8,967,975
5.50%, 1/1/2024 18,635,000 20,485,269
5.50%, 1/1/2030 10,540,000 12,606,683
Watervliet Housing Authority, Residential Housing
Revenue (Beltrone Living Center Project):
6%, 6/1/2028 1,800,000 1,630,008
6.125%, 6/1/2038 6,800,000 6,115,444
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Yonkers Industrial Development Agency, Civic Facilities
Revenue (Saint Joseph's Hospital):
6.15%, Series A 3/1/2015 1,000,000 816,690
6.15%, Series C 3/1/2015 3,500,000 2,858,415
U.S. RELATED--4.3%
Commonwealth of Puerto Rico,
Public Improvement:
5.50%, 7/1/2010 (Insured; FSA) 500,000 593,455
9.099%, 7/1/2010 (Insured; FSA) 4,800,000 (b,c) 6,594,288
6%, 7/1/2015 (Insured; MBIA) 3,000,000 3,776,160
9.573%, 7/1/2015 (Insured; FSA) 5,000,000 (b,c) 7,094,400
6%, 7/1/2026 5,000,000 5,887,900
Puerto Rico Highway and Transportation Authority,
Highway Revenue 6%, 7/1/2022 9,500,000 10,962,715
Puerto Rico Infrastructure Financing Authority,
Special Obligation:
5.50%, 10/1/2032 10,000,000 11,331,300
5.50%, 10/1/2040 5,000,000 5,668,800
Puerto Rico Public Buildings Authority, Revenue
(Government Facilities)
5.25%, 7/1/2014 (Insured; FGIC) 10,000,000 11,854,100
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,325,780,066) 1,446,075,059
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--1.5%
- --------------------------------------------------------------------------------
New York City Transitional Finance Authority, VRDN:
1.30% 12,000,000 (e) 12,000,000
Future Tax Secured Revenue 1.35% 3,900,000 (e) 3,900,000
New York City Recovery
1.35% (SBPA; Bank of New York) 4,000,000 (e) 4,000,000
Port Authority of New York
and New Jersey, VRDN
Special Obligation Revenue
(Versatile Structure) 1.33% 2,000,000 (e) 2,000,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $21,900,000) 21,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $1,347,680,066) 99.5% 1,467,975,059
CASH AND RECEIVABLES (NET) .5% 7,941,798
NET ASSETS 100.0% 1,475,916,857
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
ACA American Capital Access MBIA Municipal Bond Investors Assurance
Insurance Corporation
AMBAC American Municipal Bond
Assurance Corporation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance SBPA Standby Bond Purchase Agreement
Company
SONYMA State of New York
FHA Federal Housing Administration Mortgage Agency
FSA Financial Security Assurance SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 55.6
AA Aa AA 28.1
A A A 6.7
BBB Baa BBB 1.9
F1 MIG1/P1 SP1/A1 1.2
Not Rated (g) Not Rated (g) Not Rated( g) 6.5
100.0
(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) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(C) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT MAY 31, 2003, THESE
SECURITIES AMOUNTED TO $108,601,751 OR 7.4% OF NET ASSETS.
(D) NON INCOME PRODUCING SECURITY; INTEREST PAYMENTS IN DEFAULT.
(E) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(F) THE FUND DID NOT RECEIVE THE FULL AMOUNT OF THE INTEREST DUE AT THE LAST
PAYMENT DATE.
(G) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2003
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 1,347,680,066 1,467,975,05
Interest receivable 21,301,147
Receivable for shares of Common Stock subscribed 6,019
Prepaid expenses 31,488
1,489,313,713
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 608,914
Cash overdraft due to Custodian 412,529
Payable for investment securities purchased 11,925,100
Payable for shares of Common Stock redeemed 289,822
Accrued expenses 160,491
13,396,856
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,475,916,857
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,349,493,255
Accumulated undistributed investment income--net 171,979
Accumulated net realized gain (loss) on investments 5,956,630
Accumulated net unrealized appreciation
(depreciation) on investments 120,294,993
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,475,916,857
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized) 94,808,383
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 15.57
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended May 31, 2003
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 76,822,514
EXPENSES:
Management fee--Note 3(a) 8,781,801
Shareholder servicing costs--Note 3(b) 1,326,465
Custodian fees 91,119
Professional fees 69,170
Directors' fees and expenses--Note 3(c) 57,015
Registration fees 27,212
Prospectus and shareholders' reports 26,377
Loan commitment fees--Note 2 20,316
Miscellaneous 50,476
TOTAL EXPENSES 10,449,951
INVESTMENT INCOME--NET 66,372,563
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 13,594,708
Net unrealized appreciation (depreciation) on investments 53,696,300
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 67,291,008
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 133,663,571
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended May 31,
-----------------------------------
2003 2002
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 66,372,563 70,624,615
Net realized gain (loss) on investments 13,594,708 12,631,027
Net unrealized appreciation
(depreciation) on investments 53,696,300 (2,249,288)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 133,663,571 81,006,354
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (66,134,988) (70,550,752)
Net realized gain on investments (14,931,558) (4,154,863)
TOTAL DIVIDENDS (81,066,546) (74,705,615)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 195,712,798 235,348,612
Dividends reinvested 58,417,647 52,996,525
Cost of shares redeemed (292,533,515) (281,969,751)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (38,403,070) 6,375,386
TOTAL INCREASE (DECREASE) IN NET ASSETS 14,193,955 12,676,125
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 1,461,722,902 1,449,046,777
END OF PERIOD 1,475,916,857 1,461,722,902
Undistributed investment income--net 171,979 --
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 12,854,928 15,626,658
Shares issued for dividends reinvested 3,833,192 3,515,949
Shares redeemed (19,177,788) (18,727,854)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,489,668) 414,753
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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.
Year Ended May 31,
----------------------------------------------------------------------------
2003 2002(a) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 15.02 14.96 14.03 15.27 15.47
Investment Operations:
Investment income--net .69(b) .72(b) .72 .72 .74
Net realized and unrealized
gain (loss) on investments .71 .11 .93 (1.10) (.06)
Total from Investment Operations 1.40 .83 1.65 (.38) .68
Distributions:
Dividends from
investment income--net (.69) (.73) (.72) (.73) (.74)
Dividends from net realized
gain on investments (.16) (.04) (.00)(c) (.13) (.14)
Total Distributions (.85) (.77) (.72) (.86) (.88)
Net asset value, end of period 15.57 15.02 14.96 14.03 15.27
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 9.56 5.64 11.99 (2.44) 4.47
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .71 .70 .73 .75 .75
Ratio of net investment income
to average net assets 4.53 4.82 4.91 5.02 4.77
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- -- .04 .05 .01
Portfolio Turnover Rate 29.28 19.47 17.57 37.67 20.77
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 1,475,917 1,461,723 1,449,047 1,387,952 1,602,113
(A) AS REQUIRED, EFFECTIVE JUNE 1, 2001, THE FUND HAS ADOPTED THE PROVISIONS OF
THE AICPA AUDIT AND ACCOUNTING GUIDE FOR INVESTMENT COMPANIES AND BEGAN
AMORTIZING DISCOUNT OR PREMIUM ON A SCIENTIFIC BASIS FOR DEBT SECURITIES ON A
DAILY BASIS. THE EFFECT OF THIS CHANGE FOR THE PERIOD ENDED MAY 31, 2002 WAS TO
INCREASE NET INVESTMENT INCOME PER SHARE AND DECREASE NET REALIZED AND
UNREALIZED GAIN (LOSS) ON INVESTMENTS BY LESS THAN $.01 AND INCREASE THE RATIO
OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS FROM 4.81% TO 4.82%. PER SHARE
DATA AND RATIOS/SUPPLEMENTAL DATA FOR PERIODS PRIOR TO JUNE 1, 2001 HAVE NOT
BEEN RESTATED TO REFLECT THIS CHANGE IN PRESENTATION.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus New York Tax Exempt Bond Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940 (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, New York
state and New York city personal income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation ("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.
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 each business day
by an independent pricing service (the "Service") approved by the Board of
Directors. 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 discount and premium on invest The Fun
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ments, 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 $32,203 during the period
ended May 31, 2003 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, 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.
At May 31, 2003, the components of accumulated earnings on a tax basis were as
follows: undistributed ordinary income $3,251,097, undistributed capital gains
$3,513,538 and unrealized appreciation $119,545,527.
The tax character of distributions paid to shareholders during the fiscal years
ended May 31, 2003 and May 31, 2002 were as follows: tax exempt income
$66,134,988 and $70,550,752, ordinary income
$412,111 and $174,920 and long-term capital gains $14,519,447 and $3,979,943,
respectively.
During the period ended May 31, 2003, as a result of permanent book to tax
differences, the fund decreased accumulated undistributed investment income-net
by $65,596, increased accumulated net realized gain (loss) on investments by
$145,486 and decreased paid-in capital by $79,890. Net assets were not affected
by this reclassification.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "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 based on prevailing market rates
in effect at the time of borrowings. During the period ended May 31, 2003, 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. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, interest on borrowings, brokerage commissions, commitment fees and
extraordinary expenses, exceed 11_2% of the value of the fund's average daily
net assets, the fund may deduct from payments to be made to the Manager, or the
Manager will bear such excess expense. During the period ended May 31, 2003,
there was no expense reimbursement pursuant to the Agreement.
(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 The Fun
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 May 31, 2003, the fund was
charged $844,651 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 May 31, 2003, the fund was charged $374,885 pursuant to the transfer
agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A .10% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. During the period ended May
31, 2003, redemption fees charged and retained by the fund amounted to $20,003.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended May 31, 2003, amounted to
$412,516,234 and $440,974,040, respectively.
At May 31, 2003, the cost of investments for federal income tax purposes was
$1,348,429,532; accordingly, accumulated net unrealized appreciation on
investments was $119,545,527, consisting of $136,135,272 gross unrealized
appreciation and $16,589,745 gross unrealized depreciation
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus New York Tax Exempt Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of Dreyfus
New York Tax Exempt Bond Fund, Inc., including the statement of investments, as
of May 31, 2003, 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 auditing standards generally accepted
in the United States. 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 May 31, 2003 by correspondence with the
custodian and others. 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 New York Tax Exempt Bond Fund, Inc. at May 31, 2003, 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 accounting principles generally accepted
in the United States.
ERNST & YOUNG LLP
New York, New York
July 7, 2003
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended May 31, 2003:
- -- all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular federal income tax, and for individuals who
are New York residents, New York state and New York city personal income taxes),
and
- -- the fund hereby designates $.1517 per share as a long-term capital gain
distribution of the $.1560 per share paid on December 6, 2002.
As required by federal tax law rules, shareholders will receive notification of
their portion of the fund' s taxable ordinary dividends (if any) and capital
gains distributions (if any) paid for the 2003 calendar year on Form 1099-DIV
which will be mailed by January 31, 2004.
BOARD MEMBERS INFORMATION (Unaudited)
JOSEPH S. DIMARTINO (59)
CHAIRMAN OF THE BOARD (1995)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* The Muscular Dystrophy Association, Director
* Levcor International, Inc., an apparel fabric processor, Director
* Century Business Services, Inc., a provider of outsourcing functions for small
and medium size companies, Director
* The Newark Group, a provider of a national market of paper recovery
facilities, paperboard mills and paperboard converting plants, Directo
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 191
--------------
DAVID W. BURKE (67)
BOARD MEMBER (1994)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* John F. Kennedy Library Foundation, Director
* U.S.S. Constitution Museum, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 87
--------------
SAMUEL CHASE (71)
BOARD MEMBER (1983)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
GORDON J. DAVIS (61)
BOARD MEMBER (1995)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Partner in the law firm of LeBoeuf, Lamb, Greene & MacRae LLP
* Presidient, Lincoln Center for the Performing Arts, Inc. (2001)
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Consolidated Edison, Inc., a utility company, Director
* Phoenix Companies, Inc., a life insurance company, Director
* Board Member/Trustee for several not-for-profit groups
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 26
The Fund
BOARD MEMBERS INFORMATION (Unaudited) (CONTINUED)
JONI EVANS (61)
BOARD MEMBER (1983)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Senior Vice President of the William Morris Agency
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
ARNOLD S. HIATT (76)
BOARD MEMBER (1983)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Chairman of The Stride Rite Charitable Foundation
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Isabella Stewart Gardner Museum, Trustee
* John Merck Fund, a charitable trust, Trustee
* Business for Social Responsibility, Chairman
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
BURTON N. WALLACK (52)
BOARD MEMBER (1991)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President and co-owner of Wallack Management Company, a real estate management
company
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
ONCE ELECTED ALL BOARD MEMBERS SERVE FOR AN INDEFINITE TERM. ADDITIONAL
INFORMATION ABOUT THE BOARD MEMBERS, INCLUDING THEIR ADDRESS IS AVAILABLE IN THE
FUND'S STATEMENT OF ADDITIONAL INFORMATION WHICH CAN BE OBTAINED FROM DREYFUS
FREE OF CHARGE BY CALLING THIS TOLL FREE NUMBER: 1-800-554-4611.
OFFICERS OF THE FUND (Unaudited)
STEPHEN E. CANTER, PRESIDENT SINCE MARCH 2000.
Chairman of the Board, Chief Executive Officer and Chief Operating Officer
of the Manager, and an officer of 95 investment companies (comprised of 190
portfolios) managed by the Manager. Mr. Canter also is a Board member and, where
applicable, an Executive Committee Member of the other investment management
subsidiaries of Mellon Financial Corporation, each of which is an affiliate of
the Manager. He is 57 years old and has been an employee of the Manager since
May 1995.
STEPHEN R. BYERS, EXECUTIVE VICE PRESIDENT SINCE NOVEMBER 2002.
Chief Investment Officer, Vice Chairman and a Director of the Manager, and
an officer of 95 investment companies (comprised of 190 portfolios) managed by
the Manager. Mr. Byers also is an Officer, Director or an Executive Committee
Member of certain other investment management subsidiaries of Mellon Financial
Corporation, each of which is an affiliate of the Manager. He is 49 years old
and has been an employee of the Manager since January 2000. Prior to joining the
Manager, he served as an Executive Vice President-Capital Markets, Chief
Financial Officer and Treasurer at Gruntal & Co., L.L.C.
MARK N. JACOBS, VICE PRESIDENT SINCE MARCH 2000.
Executive Vice President, Secretary and General Counsel of the Manager, and
an officer of 96 investment companies (comprised of 206 portfolios) managed by
the Manager. He is 57 years old and has been an employee of the Manager since
June 1977.
JOHN B. HAMMALIAN, SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 37 investment
companies (comprised of 46 portfolios) managed by the Manager. He is 39 years
old and has been an employee of the Manager since February 1991.
STEVEN F. NEWMAN, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel and Assistant Secretary of the Manager, and an
officer of 96 investment companies (comprised of 206 portfolios) managed by the
Manager. He is 53 years old and has been an employee of the Manager since July
1980.
MICHAEL A. ROSENBERG, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 93 investment
companies (comprised of 199 portfolios) managed by the Manager. He is 43 years
old and has been an employee of the Manager since October 1991.
JAMES WINDELS, TREASURER SINCE NOVEMBER 2001.
Director - Mutual Fund Accounting of the Manager, and an officer of 96
investment companies (comprised of 206 portfolios) managed by the Manager. He is
44 years old and has been an employee of the Manager since April 1985.
The Fund
OFFICERS OF THE FUND (Unaudited) (CONTINUED)
GREGORY S. GRUBER, ASSISTANT TREASURER SINCE MARCH 2000.
Senior Accounting Manager - Municipal Bond Funds of the Manager, and an
officer of 29 investment companies (comprised of 58 portfolios) managed by the
Manager. He is 44 years old and has been an employee of the Manager since August
1981.
KENNETH J. SANDGREN, ASSISTANT TREASURER SINCE NOVEMBER 2001.
Mutual Funds Tax Director of the Manager, and an officer of 96 investment
companies (comprised of 206 portfolios) managed by the Manager. He is 48 years
old and has been an employee of the Manager since June 1993.
WILLIAM GERMENIS, ANTI-MONEY LAUNDERING COMPLIANCE OFFICER SINCE OCTOBER 2002.
Vice President and Anti-Money Laundering Compliance Officer of the
Distributor, and the Anti-Money Laundering Compliance Officer of 91 investment
companies (comprised of 201 portfolios) managed by the Manager. He is 32 years
old and has been an employee of the Distributor since October 1998. Prior to
joining the Distributor, he was a Vice President of Compliance Data Center, Inc
For More Information
Dreyfus New York Tax Exempt Bond 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) 2003 Dreyfus Service Corporation 980AR0503
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. [RESERVED]
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) Based on an evaluation of the Disclosure Controls and Procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940, the
"Disclosure Controls") as of a date within 90 days prior to the filing date
(the "Filing Date") of this Form N-CSR (the "Report"), the Disclosure
Controls are effectively designed to ensure that information required to be
disclosed by the Registrant in the Report is recorded, processed, summarized
and reported by the Filing Date, including ensuring that information required
to be disclosed in the Report is accumulated and communicated to the
Registrant's management, including the Registrant's principal executive
officer and principal financial officer, as appropriate to allow timely
decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
or in other factors that could significantly affect these controls subsequent
to the date of their evaluation, and there were no corrective actions with
regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b)(1) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2 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.
[NAME OF FUND]
By: /s/Stephen E. Canter
---------------------
Stephen E. Canter
President
Date: July 30, 2003
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: July 30, 2003
By: /S/ JAMES WINDELS
James Windels
Chief Financial Officer
Date: July 30, 2003
EXHIBIT INDEX
(b)(1) Certifications of principal executive officer and
principal financial officer as required by Rule 30a-2 under the
Investment Company Act of 1940.
(b)(2) Certification of principal executive officer and
principal financial officer as required by Section 906 of the
Sarbanes-Oxley Act of 2002.