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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY

Investment Company Act file number

811-05652

 

 

 

Dreyfus 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)

 

 

 

 

 

Bennett A. MacDougall, Esq.

200 Park Avenue

New York, New York  10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code: 

(212) 922-6400

 

 

Date of fiscal year end:

 

  09/30

 

Date of reporting period:

  06/30/17

 

             

 


 

FORM N-Q

Item 1.                         Schedule of Investments.

 


 

STATEMENT OF INVESTMENTS
Dreyfus Municipal Income, Inc.
June 30, 2017 (Unaudited)

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9%  Rate (%)  Date  Amount ($)   Value ($) 
Alabama - 3.3%           
Jefferson County,           
Sewer Revenue Warrants  0/7.75  10/1/46  4,000,000 a  3,292,720 
Lower Alabama Gas District,           
Gas Project Revenue  5.00  9/1/46  2,500,000   3,051,250 
          6,343,970 
Arizona - 8.3%           
La Paz County Industrial Development           
Authority,           
Education Facility LR (Charter Schools           
Solutions-Harmony Public Schools           
Project)  5.00  2/15/46  1,500,000 b  1,567,680 
Pima County Industrial Development           
Authority,           
Education Revenue (American Charter           
Schools Foundation Project)  5.63  7/1/38  200,000   200,026 
Pinal County Electrical District Number 4,           
Electric System Revenue (Prerefunded)  6.00  12/1/18  1,300,000 c  1,391,754 
Salt Verde Financial Corporation,           
Senior Gas Revenue  5.00  12/1/37  2,190,000   2,616,437 
Tender Option Bond Trust Receipts (Series           
2016-XM0447),           
(Salt River Project Agricultural           
Improvement and Power District, Salt           
River Project Electric System Revenue)           
Recourse  5.00  1/1/38  9,998,763 b,d  10,206,013 
          15,981,910 
California - 22.0%           
California,           
GO (Various Purpose)  5.75  4/1/31  3,950,000   4,270,463 
California,           
GO (Various Purpose)  6.00  3/1/33  1,250,000   1,407,563 
California,           
GO (Various Purpose)  6.50  4/1/33  3,000,000   3,283,470 
California,           
GO (Various Purpose)  6.00  11/1/35  2,500,000   2,784,375 
Sacramento County,           
Airport System Subordinate and           
Passenger Facility Charges Grant           
Revenue  6.00  7/1/35  2,250,000   2,357,212 
Santa Ana Community Redevelopment           
Agency,           
Tax Allocation Revenue (Merged Project           
Area)  6.75  9/1/28  3,000,000   3,496,290 
Tender Option Bond Trust Receipts (Series           
2016-XM0371),           
(Los Angeles Department of Airports,           
Senior Revenue (Los Angeles           
International Airport)) Non-recourse  5.25  5/15/18  10,000,000 b,d  11,157,300 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($) 
California - 22.0% (continued)           
Tender Option Bond Trust Receipts (Series           
2016-XM0387),           
(Los Angeles Department of Airports,           
Senior Revenue (Los Angeles           
International Airport)) Non-recourse  5.00  5/15/21  4,000,000 b,d  4,487,360 
Tender Option Bond Trust Receipts (Series           
2016-XM0390),           
(The Regents of the University of           
California, General Revenue) Non-           
recourse  5.00  5/15/21  3,750,000 b,d  4,341,300 
Tobacco Securitization Authority of           
Southern California,           
Tobacco Settlement Asset-Backed Bonds           
(San Diego County Tobacco Asset           
Securitization Corporation)  5.00  6/1/37  3,500,000   3,500,210 
Tuolumne Wind Project Authority,           
Revenue (Tuolumne Company Project)           
(Prerefunded)  5.88  1/1/19  1,500,000 c  1,610,445 
          42,695,988 
Colorado - 7.5%           
Colorado Educational and Cultural Facilities           
Authority,           
Charter School Revenue (American           
Academy Project) (Prerefunded)  8.00  12/1/18  1,500,000 c  1,675,350 
Colorado High Performance Transportation           
Enterprise,           
Revenue (C-470 Express Lanes)  5.00  12/31/51  1,500,000   1,647,270 
E-470 Public Highway Authority,           
Senior Revenue  5.25  9/1/25  1,000,000   1,090,490 
E-470 Public Highway Authority,           
Senior Revenue  5.38  9/1/26  1,000,000   1,089,860 
Tender Option Bond Trust Receipts (Series           
2016-XM0385),           
(Board of Governors of the Colorado           
State University, System Enterprise           
Revenue) Non-recourse  5.00  3/1/20  2,550,000 b,d  2,861,508 
Tender Option Bond Trust Receipts (Series           
2016-XM0433),           
(Colorado Springs, Utilities System           
Improvement Revenue) Recourse  5.00  11/15/43  4,000,000 b,d  4,616,400 
University of Colorado Regents,           
University Enterprise Revenue           
(Prerefunded)  5.38  6/1/19  1,500,000 c  1,622,040 
          14,602,918 
Connecticut - 1.5%           
Connecticut Health and Educational           
Facilities Authority,           
Revenue (Trinity Health Credit Group)  5.00  12/1/45  2,500,000   2,844,650 
District of Columbia - 4.1%           
Tender Option Bond Trust Receipts (Series           
2016-XM0437),           
(District of Columbia, Income Tax           
Secured Revenue) Recourse  5.00  12/1/35  6,999,163 b,d  8,006,603 

 


 

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($) 
Florida - 7.0%           
Davie,           
Educational Facilities Revenue (Nova           
Southeastern University Project)  5.63  4/1/43  1,000,000   1,133,180 
Greater Orlando Aviation Authority,           
Airport Facilities Revenue  6.25  10/1/20  3,980,000   4,403,671 
Halifax Hospital Medical Center,           
HR  4.00  6/1/41  1,000,000   1,023,170 
Mid-Bay Bridge Authority,           
Springing Lien Revenue (Prerefunded)  7.25  10/1/21  2,500,000 c  3,105,200 
Saint Johns County Industrial Development           
Authority,           
Revenue (Presbyterian Retirement           
Communities Project) (Prerefunded)  5.88  8/1/20  2,500,000 c  2,847,175 
South Lake County Hospital District,           
Revenue (South Lake Hospital, Inc.)  6.25  4/1/39  1,000,000   1,072,630 
          13,585,026 
Georgia - 2.6%           
Atlanta,           
Water and Wastewater Revenue           
(Prerefunded)  6.00  11/1/19  3,000,000 c  3,337,800 
Atlanta Development Authority,           
Senior Lien Revenue (New Downtown           
Atlanta Stadium Project)  5.25  7/1/40  1,500,000   1,745,490 
          5,083,290 
Hawaii - 1.3%           
Hawaii Department of Budget and Finance,           
Special Purpose Revenue (Hawaiian           
Electric Company, Inc. and Subsidiary           
Projects)  6.50  7/1/39  2,400,000   2,590,560 
Illinois - 13.8%           
Chicago,           
General Airport Third Lien Revenue           
(Chicago O'Hare International Airport)  5.63  1/1/35  1,000,000   1,128,920 
Chicago,           
GO (Project and Refunding Series)  6.00  1/1/38  2,000,000   2,059,820 
Chicago,           
Second Lien Wastewater Transmission           
Revenue  5.00  1/1/39  1,100,000   1,186,955 
Chicago,           
Second Lien Water Revenue  5.00  11/1/28  1,000,000   1,120,980 
Chicago Transit Authority,           
Second Lien Sales Tax Receipts Revenue  5.00  12/1/46  2,000,000   2,158,880 
Metropolitan Pier and Exposition Authority,           
Dedicated Tax Revenue (Capital           
Appreciation-McCormick Place           
Expansion Project) (Insured; MBIA           
Insurance Corporation)  0.00  12/15/36  2,500,000 e  983,025 
Metropolitan Pier and Exposition Authority,           
Revenue (McCormick Place Expansion           
Project)  5.00  12/15/28  1,500,000   1,519,005 
Metropolitan Pier and Exposition Authority,           
Revenue (McCormick Place Expansion           
Project)  5.00  6/15/53  2,500,000   2,357,100 
Railsplitter Tobacco Settlement Authority,           
Tobacco Settlement Revenue  6.00  6/1/28  2,000,000   2,283,120 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($) 
Illinois - 13.8% (continued)           
Tender Option Bond Trust Receipts (Series           
2016-XM0378),           
(Greater Chicago Metropolitan Water           
Reclamation District, GO Capital           
Improvement Bonds) Non-recourse  5.00  12/1/19  2,500,000 b,d  2,788,475 
Tender Option Bond Trust Receipts (Series           
2017-XM0492),           
(Illinois Finance Authority, Revenue (The           
University of Chicago)) Non-recourse  5.00  10/1/40  7,000,000 b,d  7,950,670 
University of Illinois Board of Trustees,           
Auxiliary Facilities System Revenue  5.13  4/1/36  1,000,000   1,083,720 
          26,620,670 
Iowa - .8%           
Iowa Student Loan Liquidity Corporation,           
Student Loan Revenue  5.75  12/1/28  1,520,000   1,621,992 
Louisiana - 1.0%           
Louisiana Public Facilities Authority,           
Revenue (CHRISTUS Health Obligated           
Group)  6.13  7/1/29  1,000,000   1,093,520 
Louisiana Public Facilities Authority,           
Revenue (Entergy Louisiana, LLC           
Project)  3.50  6/1/30  800,000   805,984 
          1,899,504 
Maine - .7%           
Maine Health and Higher Educational           
Facilities Authority,           
Revenue (Maine General Medical Center           
Issue)  7.50  7/1/32  1,250,000   1,426,475 
Maryland - 4.0%           
Maryland Economic Development           
Corporation,           
EDR (Transportation Facilities Project)  5.75  6/1/35  1,000,000   1,075,570 
Maryland Economic Development           
Corporation,           
PCR (Potomac Electric Project)  6.20  9/1/22  2,500,000   2,710,450 
Maryland Health and Higher Educational           
Facilities Authority,           
Revenue (Adventist HealthCare Issue)  5.50  1/1/46  1,500,000   1,708,215 
Tender Option Bond Trust Receipts (Series           
2016-XM0391),           
(Mayor and City Council of Baltimore,           
Project Revenue (Water Projects)) Non-           
recourse  5.00  7/1/21  2,000,000 b,d  2,252,330 
          7,746,565 
Massachusetts - 5.2%           
Massachusetts Development Finance           
Agency,           
Revenue (Tufts Medical Center Issue)  7.25  1/1/32  1,500,000   1,751,265 
Massachusetts Educational Financing           
Authority,           
Education Loan Revenue (Issue K)  5.25  7/1/29  1,660,000   1,817,418 
Massachusetts Health and Educational           
Facilities Authority,           
Revenue (Suffolk University Issue)  6.25  7/1/30  705,000   769,952 

 


 

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($) 
Massachusetts - 5.2% (continued)           
Massachusetts Health and Educational           
Facilities Authority,           
Revenue (Suffolk University Issue)           
(Prerefunded)  6.25  7/1/19  1,295,000 c  1,425,665 
Tender Option Bond Trust Receipts (Series           
2016-XM0386),           
(University of Massachusetts Building           
Authority, Project and Refunding           
Revenue) Non-recourse  5.00  5/1/21  3,698,335 b,d  4,197,372 
          9,961,672 
Michigan - 5.0%           
Detroit,           
Water Supply System Senior Lien           
Revenue  5.00  7/1/31  1,500,000   1,617,060 
Detroit,           
Water Supply System Senior Lien           
Revenue  5.00  7/1/36  3,000,000   3,220,050 
Michigan Finance Authority,           
Local Government Loan Program           
Revenue (Detroit Water and Sewerage           
Department, Water Supply System           
Revenue Senior Lien Local Project           
Bonds) (Insured; National Public Finance           
Guarantee Corp.)  5.00  7/1/36  500,000   553,420 
Michigan Strategic Fund,           
SWDR (Genesee Power Station Project)  7.50  1/1/21  1,600,000   1,571,216 
Royal Oak Hospital Finance Authority,           
HR (William Beaumont Hospital           
Obligated Group) (Prerefunded)  8.00  9/1/18  2,500,000 c  2,704,225 
          9,665,971 
Minnesota - 2.3%           
Minneapolis,           
Health Care System Revenue (Fairview           
Health Services) (Prerefunded)  6.75  11/15/18  3,000,000 c  3,235,140 
Saint Paul Housing and Redevelopment           
Authority,           
Hospital Facility Revenue (HealthEast           
Care System Project)  5.00  11/15/44  1,200,000   1,289,052 
          4,524,192 
Mississippi - 2.3%           
Mississippi Business Finance Corporation,           
PCR (System Energy Resources, Inc.           
Project)  5.88  4/1/22  2,200,000   2,221,252 
Warren County,           
Gulf Opportunity Zone Revenue           
(International Paper Company Project)  5.38  12/1/35  2,000,000   2,212,900 
          4,434,152 
Missouri - 1.1%           
Missouri Health and Educational Facilities           
Authority,           
Revenue (Lutheran Senior Services           
Projects)  5.00  2/1/46  2,000,000   2,141,060 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($) 
Nebraska - .6%           
Douglas County Hospital Authority,           
Revenue (Childrens Hospital Obligation           
Group)  5.00  11/15/36  1,000,000   1,154,090 
New Jersey - 5.0%           
New Jersey Economic Development           
Authority,           
Revenue  5.25  6/15/27  1,000,000   1,074,150 
New Jersey Economic Development           
Authority,           
School Facilities Construction Revenue  5.25  6/15/40  1,250,000   1,305,300 
New Jersey Economic Development           
Authority,           
Water Facilities Revenue (New Jersey -           
American Water Company, Inc. Project)  5.70  10/1/39  2,000,000   2,163,380 
New Jersey Higher Education Student           
Assistance Authority,           
Student Loan Revenue (Insured; Assured           
Guaranty Corp.)  6.13  6/1/30  1,610,000   1,659,958 
New Jersey Transportation Trust Fund           
Authority,           
Transportation Program Revenue  5.25  6/15/33  1,000,000   1,053,100 
Tobacco Settlement Financing Corporation           
of New Jersey,           
Tobacco Settlement Asset-Backed Bonds  5.00  6/1/29  2,500,000   2,506,300 
          9,762,188 
New Mexico - 1.7%           
Farmington,           
PCR (Public Service Company of New           
Mexico San Juan Project)  5.90  6/1/40  3,000,000   3,299,700 
New York - 13.0%           
New York City Educational Construction           
Fund,           
Revenue  6.50  4/1/28  1,500,000   1,769,340 
New York City Industrial Development           
Agency,           
PILOT Revenue (Yankee Stadium           
Project) (Insured; Assured Guaranty           
Corp.)  7.00  3/1/49  1,435,000   1,572,559 
New York Convention Center Development           
Corporation,           
Senior Lien Revenue (Hotel Unit Fee           
Secured)  0.00  11/15/47  5,600,000 e  1,689,128 
New York Transportation Development           
Corporation,           
Special Facility Revenue (LaGuardia           
Airport Terminal B Redevelopment           
Project)  5.00  7/1/46  1,500,000   1,631,865 
Port Authority of New York and New Jersey,           
Special Project Bonds (JFK International           
Air Terminal LLC Project)  6.00  12/1/36  1,500,000   1,690,860 
Tender Option Bond Trust Receipts (Series           
2016-XM0436),           
(New York City Municipal Water Finance           
Authority, Water and Sewer System           
Second General Resolution Revenue)           
Recourse  5.00  6/15/44  7,400,000 b,d  8,289,924 

 


 

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($) 
New York - 13.0% (continued)           
Tender Option Bond Trust Receipts (Series           
2016-XM0439),           
(New York City Transitional Finance           
Authority, Future Tax Secured Revenue)           
Recourse  5.00  5/1/30  7,996,798 b,d  8,576,717 
          25,220,393 
North Carolina - 2.9%           
Tender Option Bond Trust Receipts (Series           
2016-XM0444),           
(North Carolina Medical Care           
Commission, Health Care Facilities           
Revenue (Duke University Health           
System)) Recourse  5.00  6/1/42  5,000,000 b,d  5,554,600 
Ohio - 1.7%           
Butler County,           
Hospital Facilities Revenue (UC Health)  5.50  11/1/40  1,050,000   1,163,694 
Butler County,           
Hospital Facilities Revenue (UC Health)           
(Prerefunded)  5.50  11/1/20  450,000 c  511,974 
Cuyahoga County Hospital,           
Revenue (The Metrohealth System)  5.00  2/15/57  1,000,000   1,048,990 
Ohio Air Quality Development Authority,           
Air Quality Revenue (Ohio Valley Electric           
Corporation Project)  5.63  10/1/19  600,000   622,968 
          3,347,626 
Pennsylvania - 3.9%           
Clairton Municipal Authority,           
Sewer Revenue  5.00  12/1/42  1,000,000   1,089,400 
Montgomery County Industrial           
Development Authority,           
Retirement Community Revenue (Adult           
Communities Total Services, Inc.           
Retirement - Life Communities, Inc.           
Obligated Group)  5.00  11/15/36  1,000,000   1,105,490 
Pennsylvania Turnpike Commission,           
Turnpike Revenue  5.00  12/1/46  1,000,000   1,121,370 
Philadelphia,           
GO (Prerefunded)  6.50  8/1/20  1,750,000 c  2,033,535 
Tender Option Bond Trust Receipts (Series           
2016-XM0373),           
(Geisinger Authority, Health System           
Revenue (Geisinger Health System))           
Non-recourse  5.13  6/1/35  2,000,000 b,d  2,171,420 
          7,521,215 
South Carolina - 6.9%           
South Carolina Public Service Authority,           
Revenue Obligations (Santee Cooper)           
(Prerefunded)  5.50  1/1/19  2,760,000 c  2,945,224 
Tender Option Bond Trust Receipts (Series           
2016-XM0384),           
(South Carolina Public Service Authority,           
Revenue Obligations (Santee Cooper))           
Non-recourse  5.13  6/1/37  4,800,000 b,d  5,234,736 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal Investments -  Coupon  Maturity  Principal    
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($) 
South Carolina - 6.9% (continued)           
Tobacco Settlement Revenue Management           
Authority of South Carolina,           
Tobacco Settlement Asset-Backed Bonds           
(Escrowed to Maturity)  6.38  5/15/30  3,750,000   5,158,425 
          13,338,385 
Tennessee - 1.2%           
Tender Option Bond Trust Receipts (Series           
2016-XM0388),           
(Metropolitan Government of Nashville           
and Davidson County, Water and Sewer           
Revenue) Non-recourse  5.00  7/1/21  2,000,000 b,d  2,283,080 
Texas - 12.0%           
Clifton Higher Education Finance           
Corporation,           
Revenue (Uplift Education)  4.25  12/1/34  1,000,000   1,014,460 
Harris County-Houston Sports Authority,           
Senior Lien Revenue (Insured; Assured           
Guaranty Municipal Corp.)  0.00  11/15/52  4,000,000 e  783,280 
Houston,           
Airport System Subordinate Lien           
Revenue  5.00  7/1/25  1,300,000   1,439,269 
La Vernia Higher Education Finance           
Corporation,           
Education Revenue (Knowledge is Power           
Program, Inc.) (Prerefunded)  6.25  8/15/19  2,250,000 c  2,489,040 
North Texas Education Finance Corporation,           
Education Revenue (Uplift Education)  5.13  12/1/42  2,000,000   2,110,000 
North Texas Tollway Authority,           
First Tier System Revenue (Insured;           
Assured Guaranty Corp.)  5.75  1/1/40  235,000   240,128 
Tender Option Bond Trust Receipts (Series           
2016-XM0377),           
(San Antonio, Electric and Gas Systems           
Junior Lien Revenue) Non-recourse  5.00  2/1/21  6,300,000 b,d  7,158,501 
Tender Option Bond Trust Receipts (Series           
2016-XM0443),           
(Texas A&M University System Board of           
Regents, Financing System Revenue)           
Recourse  5.00  5/15/39  5,000,000 b,d  5,545,050 
Texas Private Activity Bond Surface           
Transportation Corporation,           
Senior Lien Revenue (Blueridge           
Transportation Group, LLC State           
Highway 288 Toll Lanes Project)  5.00  12/31/50  1,200,000   1,313,340 
Texas Private Activity Bond Surface           
Transportation Corporation,           
Senior Lien Revenue (Blueridge           
Transportation Group, LLC State           
Highway 288 Toll Lanes Project)  5.00  12/31/55  1,000,000   1,090,870 
          23,183,938 
Washington - 4.1%           
Tender Option Bond Trust Receipts (Series           
2017-XF2423),           
(King County, Server Revenue) Recourse  5.00  1/1/29  2,999,037 d,f  3,363,882 

 


 

Long-Term Municipal Investments -  Coupon  Maturity  Principal      
149.9% (continued)  Rate (%)  Date  Amount ($)   Value ($)  
Washington - 4.1% (continued)             
Washington Health Care Facilities Authority,             
Mortgage Revenue (Highline Medical             
Center) (Collateralized; FHA)             
(Prerefunded)  6.25  8/1/18  2,890,000 c  3,050,164  
Washington Health Care Facilities Authority,             
Revenue (Catholic Health Initiatives)  6.38  10/1/36  1,500,000   1,584,960  
          7,999,006  
West Virginia - .5%             
The County Commission of Harrison County,             
SWDR (Allegheny Energy Supply             
Company, LLC Harrison Station Project)  5.50  10/15/37  1,000,000   1,004,270  
Wisconsin - .2%             
Public Finance Authority of Wisconsin,             
Lease Development Revenue (KU             
Campus Development Corporation -             
Central District Development Project)  5.00  3/1/46  275,000   309,546  
Wyoming - .9%             
Wyoming Municipal Power Agency,             
Power Supply System Revenue             
(Prerefunded)  5.50  1/1/18  1,750,000 c  1,790,285  
U.S. Related - 1.5%             
Guam,             
LOR (Section 30) (Prerefunded)  5.75  12/1/19  1,500,000 c  1,666,380  
Puerto Rico Commonwealth,             
Public Improvement GO (Insured;             
Assured Guaranty Municipal Corp.)  5.00  7/1/35  1,250,000   1,305,013  
          2,971,393  
 
Total Investments (cost $266,398,309)      149.9 %  290,516,883  
Liabilities, Less Cash and Receivables      (24.1 %)  (46,766,200 ) 
Preferred Stock, at redemption value      (25.8 %)  (50,000,000 ) 
Net Assets Applicable to Common Shareholders    100.0 %  193,750,683  

 

a Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. 
b Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in 
transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2017, these securities amounted to 
$109,247,039, or 56.39% of net assets applicable to Common Shareholders. 
c These securities are prerefunded; the date shown represents the prerefunded date. 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 Collateral for floating rate borrowings. 
e Security issued with a zero coupon. Income is recognized through the accretion of discount. 
f Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in 
transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2017, these securities were valued at 
$3,363,882 or 1.74% of net assets. 

 


 

STATEMENT OF INVESTMENTS
Dreyfus Municipal Income, Inc.
June 30, 2017 (Unaudited)

The following is a summary of the inputs used as of June 30, 2017 in valuing the fund’s investments:

        Level 3 -     
  Level 1 -  Level 2 - Other   Significant     
  Unadjusted Quoted  Significant   Unobservable     
  Prices Observable Inputs    Inputs  Total  
Assets ($)             
Investments in Securities:             
Municipal Bonds  -  290,516,883   -  290,516,883  
Liabilities ($)             
Floating Rate Notes††  -  (51,742,096 )  -  (51,742,096 ) 

 

  See Statement of Investments for additional detailed categorizations. 
††  Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. 

 


 

NOTES

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the fund's Board Members (the “Board”) 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


 

NOTES

fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.

The Service is engaged under the general supervision of the Board.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

Inverse Floater Securities: The fund participates in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred to a trust (the “Inverse Floater Trust”). The Inverse Floater Trust typically issues two variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals (“Trust Certificates”). A residual interest tax-exempt security is also created by the Inverse Floater Trust, which is transferred to the fund, and is paid interest based on the remaining cash flows of the Inverse Floater Trust, after payment of interest on the other securities and various expenses of the Inverse Floater Trust. An inverse floater security may be collapsed without the consent of the fund due to certain termination events such as bankruptcy, default or other credit event.

The fund accounts for the transfer of bonds to the Inverse Floater Trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the Trust Certificates reflected as fund liabilities in the Statement of Assets and Liabilities.

The fund may invest in inverse floater securities on either a non-recourse or recourse basis. These securities are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to a termination event. When the fund invests in inverse floater securities on a non-recourse basis, the Liquidity


 

NOTES

Provider is required to make a payment under the liquidity facility due to a termination event to the holders of the Trust Certificates. When this occurs, the Liquidity Provider typically liquidates all or a portion of the municipal securities held in the Inverse Floater Trust. A liquidation shortfall occurs if the Trust Certificates exceed the proceeds of the sale of the bonds in the Inverse Floater Trust (“Liquidation Shortfall”). When a fund invests in inverse floater securities on a recourse basis, the fund typically enters into a reimbursement agreement with the Liquidity Provider where the fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a fund investing in a recourse inverse floater security bears the risk of loss with respect to any Liquidation Shortfall.

At June 30, 2017, accumulated net unrealized appreciation on investments was $24,118,573, consisting of $24,433,791 gross unrealized appreciation and $315,218 gross unrealized depreciation.

At June 30, 2017, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the SEC on Form N-CSR.


 

 

Item 2.             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-Q 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-Q 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 quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. 

Item 3.             Exhibits.

(a)        Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.


 

FORM N-Q

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Municipal Income, Inc.

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak

            President

 

Date:    August 16, 2017

 

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/ Bradley J. Skapyak

            Bradley J. Skapyak

            President

 

Date:    August 16, 2017

 

By:       /s/ James Windels

            James Windels

            Treasurer

 

Date:    August 16, 2017

 

EXHIBIT INDEX

(a)        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)