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 811-5653
DREYFUS CALIFORNIA MUNICIPAL INCOME, 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 (212) 922-6000
area code:
Date of fiscal year 9/30
end:
Date of reporting 9/30/03
period:
-2-
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus
California Municipal
Income, Inc.
ANNUAL REPORT September 30, 2003
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
PROTECTING YOUR PRIVACY
OUR PLEDGE TO YOU
THE FUND IS COMMITTED TO YOUR PRIVACY. On this page, you will find the Fund's
policies and practices for collecting, disclosing, and safeguarding "nonpublic
personal information," which may include financial or other customer
information. These policies apply to individuals who purchase Fund shares for
personal, family, or household purposes, or have done so in the past. This
notification replaces all previous statements of the Fund's consumer privacy
policy, and may be amended at any time. We'll keep you informed of changes as
required by law.
YOUR ACCOUNT IS PROVIDED IN A SECURE ENVIRONMENT. The Fund maintains physical,
electronic and procedural safeguards that comply with federal regulations to
guard nonpublic personal information. The Fund's agents and service providers
have limited access to customer information based on their role in servicing
your account.
THE FUND COLLECTS INFORMATION IN ORDER TO SERVICE AND ADMINISTER YOUR ACCOUNT.
The Fund collects a variety of nonpublic personal information, which may
include:
*Information we receive from you, such as your name, address, and social
security number.
* Information about your transactions with us, such as the purchase or sale
of Fund shares.
*Information we receive from agents and service providers, such as proxy
voting information.
THE FUND DOES NOT SHARE NONPUBLIC PERSONAL INFORMATION WITH ANYONE, EXCEPT AS
PERMITTED BY LAW.
THANK YOU FOR THIS OPPORTUNITY TO SERVE YOU.
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 Selected Information
7 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
20 Report of Independent Auditors
21 Additional Information
23 Important Tax Information
24 Proxy Results
25 Board Members Information
27 Officers of the Fund
29 Officers and Directors
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus California
Municipal Income, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This annual report for Dreyfus California Municipal Income, Inc. covers the
12-month period from October 1, 2002, through September 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, Joseph Darcy.
After a prolonged period of sluggish growth, the U.S. economy has shown signs of
sustainable improvement. However, investor uncertainty regarding the strength of
the recovery has produced heightened volatility in the tax-exempt fixed-income
market. After most areas of the municipal bond market experienced sharp declines
during the summer, prices generally bounced back in September.
Despite recent reductions in federal tax rates, we believe that municipal bonds
may become more attractive to certain investors if states and municipalities
continue to raise taxes to balance their budgets. As always, we encourage you to
talk with your financial advisor about ways to enjoy the benefits of tax-exempt
municipal bonds as market conditions evolve.
Thank you for your continued confidence and support.
Sincerely,
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
October 15, 2003
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus California Municipal Income, Inc. perform during the period?
For the 12-month period ended September 30, 2003, the fund achieved a total
return of 3.74%.(1) Over the same period, the fund provided income dividends of
$0.4560 per share, which is equal to a distribution rate of 5.52%.(2)
The fund was primarily influenced by falling interest rates early in the
reporting period, heightened market volatility late in the reporting period and
the effects of California's fiscal and political crises, which resulted in the
recall of Governor Gray Davis just after the reporting period' s end.
What is the fund's investment approach?
The fund seeks to maximize current income exempt from federal and California
personal income taxes to the extent consistent with the preservation of capital.
During periods of normal market conditions, the fund invests 100% of the value
of its net assets in California municipal obligations. The fund invests in
municipal obligations which, at the time of purchase, are rated investment-grade
or the unrated equivalent as determined by Dreyfus in the case of bonds, and
rated in the two highest rating categories or the unrated equivalent as
determined by Dreyfus in the case of short-term obligations having, or deemed to
have, maturities of less than one year.
We have constructed a portfolio by looking for income opportunities through
analysis of each bond's structure, including paying close attention to a bond's
yield, maturity and early redemption features.
Over time, many of the fund's relatively higher-yielding bonds mature or are
redeemed by their issuers, and we generally attempt to replace them with
securities at then-prevailing yields, which may be lower The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
than the rates of the securities which mature or are redeemed. When we believe
that an opportunity presents itself, we seek to upgrade the portfolio's
investments with bonds that, in our opinion, have better structural or income
characteristics than existing holdings. When such opportunities arise, we
usually will look to sell bonds that are close to redemption or maturity
What other factors influenced the fund's performance?
Persistent economic weakness during much of the reporting period generally was
beneficial for high-quality municipal bonds. As corporate scandals, a declining
stock market and the war in Iraq took their toll, the Federal Reserve Board
reduced short-term interest rates in November 2002 and June 2003 in an attempt
to ignite renewed economic growth. As a result, the federal funds rate ended the
reporting period at 1%, a 45-year low. Longer-term bond yields also declined,
producing attractive levels of capital appreciation. However, signs of greater
economic strength in July caused bond prices to fall sharply, erasing most of
the reporting period' s previous gains, before rising again in August and
September.
California' s municipal bond market also was adversely affected by fiscal and
political turmoil. Earlier in the reporting period, the state faced a $36
billion budget deficit. Although negotiations led to a budget balanced through
modest spending cuts, one-time revenue sources and deficit financing, some of
those measures were subsequently challenged in court. In addition, Governor
Davis' s administration was threatened by a recall election, which was held just
after the reporting period's end. The atmosphere of uncertainty caused by these
fiscal and political difficulties hurt prices of the state's municipal bonds.
California bonds, which historically have traded at a premium to bonds of other
states, often traded at a discount to the national market during the reporting
period.
Finally, the fund benefited from its non-leveraged investment strategy. Unlike
many closed-end California municipal bond funds, the fund
does not borrow to buy additional securities. Because leverage tends to magnify
gains and losses, the fund's non-leveraged posture helped preserve more of its
assets when municipal bond prices fell sharply in July.
What is the fund's current strategy?
We have attempted to maintain a relatively defensive posture in an effort to
manage volatility, preserve capital and maintain attractive levels of income.
When making new purchases, this approach generally has led us to avoid
California' s unsecured general obligation bonds during those times when, in our
judgment, their value failed to adequately reflect prevailing uncertainties.
Instead we have focused on income-oriented, intermediate-term bonds issued by
highly-rated localities, such as school districts, and securities backed by
revenues from essential-services facilities, such as water and sewer plants.
This focus on quality helped the fund avoid weakness among lower-rated bonds as
California' s fiscal pressures intensified.
At the same time, we have attempted to take advantage of the market's day-to-day
volatility by buying certain securities when their prices fell to levels we
considered attractive and selling them when their prices rose. In addition, in
an effort to reduce its sensitivity to interest-rate volatility we recently
reduced the fund' s average duration to the neutral range. In our view, these
relatively conservative strategies are prudent in light of California' s
unsettled fiscal situation.
October 15, 2003
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
BASED UPON NET ASSET VALUE PER SHARE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. MARKET PRICE PER SHARE, NET ASSET VALUE PER SHARE AND INVESTMENT
RETURNS FLUCTUATE. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR
NON-CALIFORNIA 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) DISTRIBUTION RATE PER SHARE IS BASED UPON DIVIDENDS PER SHARE PAID FROM NET
INVESTMENT INCOME DURING THE PERIOD, DIVIDED BY THE MARKET PRICE PER SHARE AT
THE END OF THE PERIOD.
The Fund
SELECTED INFORMATION
September 30, 2003 (Unaudited)
Market Price per share September 30, 2003 $8.26
Shares Outstanding September 30, 2003 4,572,972
American Stock Exchange Ticker Symbol DCG
MARKET PRICE (AMERICAN STOCK EXCHANGE)
Fiscal Year Ended September 30, 2003
-----------------------------------------------------------------------------------------------------
QUARTER QUARTER QUARTER QUARTER
ENDED ENDED ENDED ENDED
DECEMBER 31, 2002 MARCH 31, 2003 JUNE 30, 2003 SEPTEMBER 30, 2003
-----------------------------------------------------------------------------------------------------------
High $8.36 $8.05 $8.45 $8.44
Low 7.91 7.74 7.95 7.81
Close 8.14 7.94 8.40 8.26
PERCENTAGE GAIN (LOSS) based on change in Market Price*
October 21, 1988 (commencement of operations)
through September 30, 2003 105.74%
October 1, 1993 through September 30, 2003 48.29
October 1, 1998 through September 30, 2003 5.38
October 1, 2002 through September 30, 2003 5.09
January 1, 2003 through September 30, 2003 5.81
April 1, 2003 through September 30, 2003 6.93
July 1, 2003 through September 30, 2003 (0.28)
NET ASSET VALUE PER SHARE
October 21, 1988 (commencement of operations) $9.22
September 30, 2002 9.08
December 31, 2002 8.94
March 31, 2003 8.95
June 30, 2003 9.02
September 30, 2003 8.91
PERCENTAGE GAIN based on change in Net Asset Value*
October 21, 1988 (commencement of operations)
through September 30, 2003 140.72%
October 1, 1993 through September 30, 2003 62.29
October 1, 1998 through September 30, 2003 21.44
October 1, 2002 through September 30, 2003 3.74
January 1, 2003 through September 30, 2003 3.92
April 1, 2003 through September 30, 2003 2.33
July 1, 2003 through September 30, 2003 0.17
* WITH DIVIDENDS REINVESTED.
STATEMENT OF INVESTMENTS
September 30, 2003
Principal
LONG-TERM MUNICIPAL INVESTMENTS--90.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--77.6%
ABAG Financial Authority For Nonprofit Corps.:
MFHR (Central Park Apartments) 5.60%, 7/1/2038 815,000 830,363
Revenue (Sansum-Santa Barbara) 5.50%, 4/1/2021 2,000,000 2,104,640
California:
9.57%, 12/1/2018 375,000 (a,b) 385,564
5%, 2/1/2032 1,000,000 966,850
California Health Facilities Financing Authority,
Revenue:
Health Facilities Financing
(Cedars-Sinai Medical Center) 6.125%, 12/1/2030 1,000,000 1,067,750
(Sutter Health) 6.25%, 8/15/2035 750,000 810,585
California Pollution Control Finance Authority:
PCR 10.39%, 6/1/2014 1,000,000 (a,b) 1,384,280
SWDR:
(Browning Ferris Industries):
5.80%, 12/1/2016 2,000,000 1,867,120
6.75%, 9/1/2019 600,000 593,052
(Keller Canyon Landfill Co. Project)
6.875%, 11/1/2027 1,000,000 988,900
California Statewide Communities Development
Authority, COP (Catholic Healthcare) 6.50%, 7/1/2020 500,000 540,250
Capistrano Unified School District, Special Tax
(Community Facilities District Number 98-2-Ladera)
5.75%, 9/1/2029 1,000,000 999,280
Central California Joint Powers Health Financing
Authority, COP (Community Hospitals of
Central California) 6%, 2/1/2030 1,000,000 1,029,280
Contra Costa Water District, Water Revenue
5%, 10/1/2019 (Insured; FSA) 1,000,000 1,062,690
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project)
6.80%, 5/1/2014 (Prerefunded 5/1/2004) 500,000 (c) 527,030
Escondido Improvement Bond, Act of 1915
(Reassessment District Number 98)
5.70%, 9/2/2026 440,000 445,509
Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue 5.75%, 1/15/2040 500,000 508,355
Long Beach Special Tax Community
Facilities District Number 5 (Towne Center)
6.875%, 10/1/2025 500,000 525,940
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Palmdale Civic Authority, Revenue
(Merged Redevelopment Project Areas):
6.60%, 9/1/2034 (Prerefunded 9/1/2004) 590,000 (c) 631,978
6.60%, 9/1/2034 410,000 424,608
Pomona, COP, General Fund Lease Financing
5.50%, 6/1/2028 (Insured; AMBAC) 1,000,000 1,087,120
Redwood Empire Financing Authority, COP
6.40%, 12/1/2023 2,750,000 2,842,098
Sacramento City Financing Authority, Revenue
9.678%, 12/1/2014 570,000 (a,b) 712,346
Sacramento County, Community Facilities
District Number 1, Special Tax 5.70%, 12/1/2020 740,000 744,558
Sacramento County Housing Authority, MFHR
(Cottage Estate Apartments) 6%, 2/1/2033 1,000,000 1,050,240
Sacramento Municipal Utility District, Electric Revenue
10.015%, 11/15/2015 (Insured; MBIA) 1,000,000 (a,b) 1,051,700
San Diego County, COP:
5.70%, 2/1/2028 1,000,000 909,450
(Burnham Institute) 6.25%, 9/1/2029 1,000,000 1,036,710
South Placer Authority, Wastewater Revenue
5.25%, 11/1/2027 (Insured; FGIC)
(Prerefunded 11/1/2010) 1,000,000 (c) 1,166,780
Torrance Redevelopment Agency,
Tax Allocation Revenue 5.625%, 9/1/2028 500,000 496,990
Turlock Health Facility, COP
(Emanuel Medical Center) 5.75%, 10/15/2023 2,500,000 2,517,350
Valley Health System, HR
(Improvement Project) 6.50%, 5/15/2025 500,000 326,015
U.S. RELATED--13.1%
Commonwealth of Puerto Rico Highway and Transportation
Authority, Transportation Revenue 8.74%, 7/1/2038 1,000,000 (a,b) 1,033,650
Commonwealth of Puerto Rico Infrastructure Financing
Authority, Special Tax Revenue 8.615%, 7/1/2015 1,000,000 (a,b) 1,183,740
Guam Power Authority, Revenue
6.75%, 10/1/2024 (Prerefunded 10/1/2004) 1,000,000 (c) 1,077,190
Virgin Islands Public Finance Authority, Revenue
Subordinated Lien-Fund Loan Notes 6%, 10/1/2022 2,000,000 2,026,760
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $35,422,817) 36,956,721
Principal
SHORT-TERM MUNICIPAL INVESTMENTS--7.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA;
California Department of Water Resources,
Power Supply Revenue, VRDN 1.15% (LOC;
Westdeutsche Landesbank, Bayerische Landesbank) 400,000 (d) 400,000
Irvine Improvement Bond Act 1915, Limited
Obligation, VRDN (Assessment District No. 87-8)
1.20% (LOC; Kredietbank N.V.) 500,000 (d) 500,000
Metropolitan Water District, Southern California
Waterworks, Revenue, VRDN 1.20% 2,200,000 (d) 2,200,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $3,100,000) 3,100,000
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TOTAL INVESTMENTS (cost $38,522,817) 98.3% 40,056,721
CASH AND RECEIVABLES (NET) 1.7% 703,537
NET ASSETS 100.0% 40,760,258
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
FGIC Financial Guaranty
Insurance Company
FSA Financial Security Assurance
HR Hospital Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
Insurance Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 28.0
A A A 11.8
BBB Baa BBB 28.5
BB Ba BB 10.9
F1 MIG1/P1 SP1/A1 7.7
Not Rated (e) Not Rated (e) Not Rated( e) 13.1
100.0
(A) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE PERIODICALLY.
(B) 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 A QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30,
2003, THESE SECURITIES AMOUNTED TO $5,751,280 OR 14.1% OF NET ASSETS.
(C) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(D) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 38,522,817 40,056,721
Cash 87,488
Interest receivable 698,877
Prepaid expenses 1,503
40,844,589
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 27,619
Accrued expenses 56,712
84,331
--------------------------------------------------------------------------------
NET ASSETS ($) 40,760,258
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 42,312,598
Accumulated undistributed investment income--net 114,219
Accumulated net realized gain (loss) on investments (3,200,463)
Accumulated net unrealized appreciation
(depreciation) on investments 1,533,904
--------------------------------------------------------------------------------
NET ASSETS ($) 40,760,258
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized) 4,572,972
--------------------------------------------------------------------------------
NET ASSET VALUE per share ($) 8.91
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended September 30, 2003
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 2,355,718
EXPENSES:
Management fee--Note 3(a) 284,879
Auditing fees 34,829
Shareholder servicing costs--Note 3(b) 24,822
Legal fees 21,259
Shareholders' reports 17,481
Registration fees 3,873
Custodian fees--Note 3(b) 3,504
Directors' fees and expenses--Note 3(c) 3,116
Miscellaneous 12,638
TOTAL EXPENSES 406,401
INVESTMENT INCOME--NET 1,949,317
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (1,415,857)
Net unrealized appreciation (depreciation) on investments 770,436
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (645,421)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,303,896
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
----------------------------------
2003 2002
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 1,949,317 2,207,729
Net realized gain (loss) on investments (1,415,857) 65,428
Net unrealized appreciation
(depreciation) on investments 770,436 (715,270)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,303,896 1,557,887
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (2,085,275) (2,085,275)
TOTAL INCREASE (DECREASE) IN NET ASSETS (781,379) (527,388)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 41,541,637 42,069,025
END OF PERIOD 40,760,258 41,541,637
Undistributed investment income--net 114,219 254,533
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements and market price data for the fund's shares.
Year Ended September 30,
-------------------------------------------------------------------
2003 2002(a) 2001 2000 1999
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.08 9.20 8.88 8.98 9.77
Investment Operations:
Investment income--net .43(b) .48(b) .49 .48 .48
Net realized and unrealized
gain (loss) on investments (.14) (.14) .30 (.06) (.71)
Total from Investment Operations .29 .34 .79 .42 (.23)
Distributions:
Dividends from investment income--net (.46) (.46) (.47) (.52) (.56)
Net asset value, end of period 8.91 9.08 9.20 8.88 8.98
Market value, end of period 8.26 8.31 8.30 8 1/4 9 5/8
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TOTAL RETURN (%)(C) 5.09 5.64 6.31 (8.70) (2.21)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.00 .98 .95 1.07 1.02
Ratio of net investment income
to average net assets 4.79 5.35 5.36 5.54 5.09
Portfolio Turnover Rate 17.50 10.23 4.26 20.44 25.65
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Net Assets, end of period ($ x 1,000) 40,760 41,542 42,069 40,617 41,031
(A) AS REQUIRED, EFFECTIVE OCTOBER 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 SEPTEMBER 30, 2002
WAS TO INCREASE NET INVESTMENT INCOME PER SHARE AND DECREASE NET REALIZED AND
UNREALIZED GAIN (LOSS) ON INVESTMENTS PER SHARE BY LESS THAN $.01 AND INCREASE
THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS FROM 5.34% TO 5.35%.
PER SHARE DATA AND RATIOS/ SUPPLEMENTAL DATA FOR PERIODS PRIOR TO OCTOBER 1,
2001 HAVE NOT BEEN RESTATED TO REFLECT THIS CHANGE IN PRESENTATION.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) CALCULATED BASED ON MARKET VALUE.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus California Municipal Income, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a non-diversified
closed-end management investment company. The fund's investment objective is to
maximize current income exempt from federal and California personal income taxes
to the extent consistent with the preservation of capital. The Dreyfus
Corporation (the "Manager") serves as the fund's investment adviser. The Manager
is a wholly-owned subsidiary of Mellon Bank, N.A. ("Mellon"), which is a
wholly-owned subsidiary of Mellon Financial Corporation. The fund's shares trade
on the American Stock Exchange under the ticker symbol DCG.
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 municipal debt securities (excluding
options and financial futures on municipal and U.S. Treasury securities) are
valued on the last business day of each week and month 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.
Options and financial futures on municipal and U.S. Treasury securities are
valued at the last sales price on the securities exchange on which such
securities are primarily traded or at the last sales price on the national
securities market on the last business day of each week and month.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 investments, is earned from
settlement date and recognized on the accrual basis. Securities purchased or
sold on a when-issued or delayed-delivery basis may be settled a month or more
after the trade date.
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: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net are declared and 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, it is the policy of the fund not to distribute such gain.
Income and capital gain distributions are determined in accordance with income
tax regulations, which may differ from accounting principles generally accepted
in the United States.
For shareholders who elect to receive their distributions in additional shares
of the fund, in lieu of cash, such distributions will be reinvested at the lower
of the market price or net asset value per share (but not less than 95% of the
market price) as defined in the dividend reinvestment plan.
On September 30, 2003, the Board of Directors declared a cash dividend of $.038
per share from investment income-net, payable on October 29, 2003 to
shareholders of record as of the close of business on October 15, 2003.
(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 September 30, 2003, the components of accumulated earnings on a tax basis
were as follows: undistributed ordinary income $20,309, accumulated capital
losses $1,804,915 and unrealized appreciation $1,541,497. In addition, the fund
had $1,415,856 of capital losses realized after October 31, 2002, which were
deferred for tax purposes to the first day of the following fiscal year.
The accumulated capital loss carryover is available to be applied against future
net securities profits, if any, realized subsequent to September 30, 2003. If
not applied, $274,359 of the carryover expires in fiscal 2004, $1,222,300
expires in fiscal 2005 and $308,256 expires in fiscal 2009.
The tax character of distributions paid to shareholders during the fiscal
periods ended September 30, 2003 and September 30, 2002, were as follows: tax
exempt income $2,085,275 and $2,085,275, respectively.
During the period ended September 30, 2003, as a result of permanent book to tax
differences, the fund decreased accumulated undistributed investment income-net
by $4,356, increased net realized gain (loss) on investments by $20,309 and
decreased paid-in capital by $15,953. Net assets were not affected by this
reclassification
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes. Interest is charged to the fund based on prevailing market rates in
effect at the time of borrowings. During the period ended September 30, 2003,
the fund did not borrow under the line of credit.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 .70 of 1% of the value of the
fund' s average weekly net assets and is payable monthly. The Agreement provides
that if in any full year the aggregate expenses of the fund, exclusive of taxes,
interest on borrowings, brokerage fees and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the fund, the fund may
deduct from payments to be made to the Manager, or the Manager will bear, the
amount of such excess to the extent required by state law. During the period
ended September 30, 2003, there was no expense reimbursement pursuant to the
Agreement.
(b) The fund compensates Mellon under a transfer agency agreement for providing
personnel and facilities to perform transfer agency services for the fund.
During the period ended September 30, 2003, the fund was charged $25,025
pursuant to the transfer agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended September 30, 2003, the fund was
charged $3,504 pursuant to the custody agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Through December 31, 2002,
each Board member who is not an "affiliated person" as defined in the Act
received an annual fee of $45,000, an attendance fee of $5,000 for each
in-person meeting and $500 for telephone meetings. Effective January 1, 2003,
the number of funds in the Fund Group comprising the fund increased and the
annual fee was increased to $60,000 while the attendance fee was increased to
$7,500 for each in-person meeting. As a result of this change in the
compensation arrangement aggregate fees paid to each Board member for the period
ended September 30, 2003 were $172 as compared to $1,19
(normally the fees would have been $198 except for two fund specific telephone
meetings) for the period ended September 30, 2002. The Chairman of the Board
receives an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status. These fees are allocated among the funds in the Fund
Group in proportion to each fund's relative net assets.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2003, amounted to
$6,599,774 and $7,804,540, respectively.
At September 30, 2003, the cost of investments for federal income tax purposes
was $38,515,224; accordingly, accumulated net unrealized appreciation on
investments was $1,541,497, consisting of $1,978,702 gross unrealized
appreciation and $437,205 gross unrealized depreciation.
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus California Municipal Income, Inc.
We have audited the accompanying statement of assets and liabilities of Dreyfus
California Municipal Income, Inc., including the statement of investments, as of
September 30, 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
verification by examination of securities held by the custodian as of September
30, 2003, and confirmation of securities not held by the custodian by
correspondence with 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 California Municipal Income, Inc. at September 30, 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.
New York, New York
November 7, 2003
ADDITIONAL INFORMATION (Unaudited)
Dividend Reinvestment Plan
Under the fund' s Dividend Reinvestment Plan (the "Plan"), a holder of Common
Stock (" Common Shareholder" ) who has fund shares registered in his name will
have all dividends and distributions reinvested automatically by Mellon, as Plan
agent (the "Agent"), in additional shares of the fund at the lower of prevailing
market price or net asset value (but not less than 95% of market value at the
time of valuation) unless such shareholder elects to receive cash as provided
below. If market price is equal to or exceeds net asset value, shares will be
issued at net asset value. If net asset value exceeds market price or if a cash
dividend only is declared, the Agent, as agent for the Plan participants, will
buy fund shares in the open market. A Plan participant is not relieved of any
income tax that may be payable on such dividends or distributions.
A Common Shareholder who owns fund shares registered in nominee name through his
broker/dealer (i.e., in "street name") may not participate in the Plan, but may
elect to have cash dividends and distributions reinvested by his broker/dealer
in additional shares of the fund if such service is provided by the
broker/dealer; otherwise such dividends and distributions will be treated like
any other cash dividend or distribution.
A Common Shareholder who has fund shares registered in his name may elect to
withdraw from the Plan at any time for a $5.00 fee and thereby elect to receive
cash in lieu of shares of the fund. Changes in elections must be in writing,
sent to Mellon Bank, c/o ChaseMellon Shareholder Services, Shareholder
Investment Plan, P.O. Box 3338, South Hackensack, New Jersey 07606, should
include the shareholder's name and address as they appear on the Agent's records
and will be effective only if received more than ten business days prior to the
record date for any distribution.
The Agent maintains all shareholder accounts in the Plan and furnishes written
confirmations of all transactions in the account. Shares in the account of each
Plan participant will be held by the Agent in non-certificated form in the name
of the participant, and each such participant's proxy will include those shares
purchased pursuant to the Plan.
The Fund
ADDITIONAL INFORMATION (Unaudited) (CONTINUED)
The fund pays the Agent's fee for reinvestment of dividends and distributions.
Plan participants pay a pro rata share of brokerage commissions incurred with
respect to the Agent's open market purchases in connection with the reinvestment
of dividends or distributions.
The fund reserves the right to amend or terminate the Plan as applied to any
dividend or distribution paid subsequent to notice of the change sent to Plan
participants at least 90 days before the record date for such dividend or
distribution. The Plan also may be amended or terminated by the Agent on at
least 90 days' written notice to Plan participants.
Managed Dividend Policy
The fund' s dividend policy is to distribute substantially all of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more consistent yield to the current trading price of shares
of Common Stock of the fund, the fund may at times pay out less than the entire
amount of net investment income earned in any particular month and may at times
in any month pay out such accumulated but undistributed income in addition to
net investment income earned in that month. As a result, the dividends paid by
the fund for any particular month may be more or less than the amount of net
investment income earned by the fund during such month. The fund's current
accumulated but undistributed net investment income, if any, is disclosed in the
Statement of Assets and Liabilities, which comprises part of the Financial
Information included in this report.
Supplemental Information
During the period ended September 30, 2003, shareholders approved changes in the
fund' s fundamental investment policies to permit the fund to invest in other
investment companies. Otherwise, during the period, there were: (i) no material
changes in the fund's investment objective or policies, (ii) no changes in the
fund's charter or by-laws that would delay or prevent a change of control of the
fund, (iii) no material changes in the principal risk factors associated with
investment in the fund, and (iv) no change in the person primarily responsible
for the day-to-day management of the fund's portfolio.
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund hereby designates all the dividends
paid from investment income-net during its fiscal year ended September 30, 2003
as "exempt-interest dividends" (not generally subject to regular federal income
tax and, for individuals who are California residents, California personal
income taxes).
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 gain
distributions (if any) paid for the 2003 calendar year on Form 1099-DIV which
will be mailed by January 31, 2004.
The Fund
PROXY RESULTS (Uaudited)
Shareholders voted on the following proposals presented at the annual
stockholders' meeting held on May 23, 2003 as follows:
Shares
---------------------------------------------------
For Authority Withheld
--------------------------------------------------
To elect three Class I Directors:((+))
Clifford L. Alexander, Jr. 2,740,184 112,925
Lucy Wilson Benson 2,742,188 110,921
David W. Burke 2,742,548 110,561
((+)) THE TERMS OF THESE CLASS I DIRECTORS EXPIRE IN 2006.
Shares
-----------------------------------------------------------------------
For Against Abstained
-----------------------------------------------------------------------
To approve changes to the fundamental
investment policies and investment
restrictions to expand the ability to
invest in other investment companies 1,993,718 168,884 128,178
BOARD MEMBERS INFORMATION (Unaudited)
JOSEPH S. DIMARTINO (60)
CHAIRMAN OF THE BOARD (1995)
Current term expires in 2005
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, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 191
--------------
CLIFFORD L. ALEXANDER, JR. (70)
BOARD MEMBER (2003)
Current term expires in 2006
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President of Alexander & Associates, Inc., a management consulting firm
(January 1981-present)
* Chairman of the Board of Moody's Corporation (October 2000-October 2003)
* Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet
Corporation (October 1999-September 2000)
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Wyeth (formerly, American Home Products Corporation), a global leader in
pharmaceuticals, consumer healthcare products and animal health products,
Director
* Mutual of America Life Insurance Company, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 70
--------------
LUCY WILSON BENSON (76)
BOARD MEMBER (1998)
Current term expires in 2006
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President of Benson and Associates, consultants to business and government
(1980-present)
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* The International Executive Services Corps., Director
* Citizens Network for Foreign Affairs, Vice Chairperson
* Council on Foreign Relations, Member
* Lafayette College Board of Trustees, Vice Chairperson
* Atlantic Council of the U.S., Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 44
The Fund
BOARD MEMBERS INFORMATION (Unaudited) (CONTINUED)
DAVID W. BURKE (67)
BOARD MEMBER (1994)
Current term expires in 2006
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
--------------
WHITNEY I. GERARD (68)
BOARD MEMBER (1994)
Current term expires in 2004
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Partner of Chadbourne & Parke LLP
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 16
--------------
ARTHUR A. HARTMAN (77)
BOARD MEMBER (1989)
Current term expires in 2004
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia
Fund
* Advisory Council Member to Barings-Vostok
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* APCO Associates, Inc., Senior Consultant
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 16
--------------
GEORGE L. PERRY (69)
BOARD MEMBER (1989)
Current term expires in 2005
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Economist and Senior Fellow at Brookings Institution
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* State Farm Mutual Automobile Association, Director
* State Farm Life Insurance Company, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 16
--------------
THE ADDRESS OF EACH BOARD MEMBER IS C/O THE DREYFUS CORPORATION, 200 PARK
AVENUE, NEW YORK, NY 10166
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 188
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 58 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 188 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 50 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.
A. PAUL DISDIER, EXECUTIVE VICE PRESIDENT SINCE NOVEMBER 2000.
Executive Vice President of the Fund, Director of Dreyfus Municipal
Securities, and an officer of 3 investment companies (comprised of 3 portfolios)
managed by the Manager. He is 48 years old and has been an employee of the
Manager since February 1988.
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 204 portfolios) managed by
the Manager. He is 57 years old and has been an employee of the Manager since
June 1977.
MICHAEL A. ROSENBERG, SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 93 investment
companies (comprised of 197 portfolios) managed by the Manager. He is 43 years
old and has been an employee of the Manager since October 1991.
ROBERT R. MULLERY, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 26 investment
companies (comprised of 61 portfolios) managed by the Manager. He is 51 years
old and has been an employee of the Manager since May 1986.
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 204 portfolios) managed by the
Manager. He is 54 years old and has been an employee of the Manager since July
1980.
JEFF PRUSNOFSKY, ASSISTANT SECRETARY SINCE APRIL 2000.
Associate General Counsel of the Manager, and an officer of 24 investment
companies (comprised of 84 portfolios) managed by the Manager. He is 38 years
old and has been an employee of the Manager since October 1990.
The Fund
OFFICERS OF THE FUND (Unaudited) (CONTINUED)
JAMES WINDELS, TREASURER SINCE NOVEMBER 2001.
Director - Mutual Fund Accounting of the Manager, and an officer of 96
investment companies (comprised of 204 portfolios) managed by the Manager. He is
45 years old and has been an employee of the Manager since April 1985.
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 204 portfolios) managed by the Manager. He is 49 years
old and has been an employee of the Manager since June 1993.
OFFICERS AND DIRECTORS
Dreyfus California Municipal Income, Inc.
200 Park Avenue
New York, NY 10166
DIRECTORS
Joseph S. DiMartino, Chairman
Clifford L. Alexander Jr.
Lucy Wilson Benson
David W. Burke
Whitney I. Gerard
Arthur A. Hartman
George L. Perry
OFFICERS
President
Stephen E. Canter
Vice President
Mark N. Jacobs
Executive Vice Presidents
Stephen R. Byers
A. Paul Disdier
Secretary
Michael A. Rosenberg
Assistant Secretaries
Robert R. Mullery
Steven F. Newman
Jeff Prusnofsky
Treasurer
James Windels
Assistant Treasurers
Gregory S. Gruber
Kenneth J. Sandgren
PORTFOLIO MANAGERS
Joseph P. Darcy
PORTFOLIO MANAGERS (CONTINUED)
A. Paul Disdier
Douglas J. Gaylor
Joseph A. Irace
Colleen A. Meehan
W. Michael Petty
Scott Sprauer
Bill Vasiliou
James Welch
Monica S. Wieboldt
INVESTMENT ADVISER
The Dreyfus Corporation
CUSTODIAN
Mellon Bank, N.A.
COUNSEL
Stroock & Stroock & Lavan LLP
TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND REGISTRAR
Mellon Bank, N.A.
STOCK EXCHANGE LISTING
AMEX Symbol: DCG
INITIAL SEC EFFECTIVE DATE
10/21/88
THE NET ASSET VALUE APPEARS IN THE FOLLOWING PUBLICATIONS: BARRON'S, CLOSED-END
BOND FUNDS SECTION UNDER THE HEADING "MUNICIPAL BOND FUNDS" EVERY MONDAY; WALL
STREET JOURNAL, MUTUAL FUNDS SECTION UNDER THE HEADING "CLOSED-END BOND FUNDS"
EVERY MONDAY; NEW YORK TIMES, BUSINESS SECTION UNDER THE HEADING "CLOSED-END
BOND FUNDS--NATIONAL MUNICIPAL BOND FUNDS" EVERY SUNDAY.
NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH SECTION 23(C) OF THE INVESTMENT
COMPANY ACT OF 1940, AS AMENDED, THAT THE FUND MAY PURCHASE SHARES OF ITS COMMON
STOCK IN THE OPEN MARKET WHEN IT CAN DO SO AT PRICES BELOW THE THEN CURRENT NET
ASSET VALUE PER SHARE.
The Fund
For More Information
Dreyfus California Municipal Income, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent and Registrar
Mellon Bank, N.A.
85 Challenger Road
Ridgefield Park, NJ 07660
(c) 2003 Dreyfus Service Corporation 426AR0903
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer, principal financial officer, principal
accounting officer or
controller, or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board has determined that Joseph DiMartino, a member of
the Audit Committee of the Board, is an audit committee financial expert as
defined by the Securities and Exchange Commission (the "SEC"). Joseph DiMartino
is "independent" as defined by the SEC for purposes of audit committee financial
expert determinations.
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) Code of ethics referred to in Item 2.
(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 CALIFORNIA MUNICIPAL INCOME, INC.
By: /s/Stephen E. Canter
____________________
Stephen E. Canter
President
Date: November 21, 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: November 21, 2003
By: /s/James Windels
_______________________
James Windels
Chief Financial Officer
Date: November 21, 2003
EXHIBIT INDEX
(a)(1) Code of ethics referred to in Item 2.
(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)