lp1-424.htm - Generated by SEC Publisher for SEC Filing




Washington, D.C.  20549



Investment Company Act file number





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)






John Pak, 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:




Date of reporting period:









Item 1.                         Schedule of Investments.




Dreyfus Municipal Income, Inc.

December 31, 2013 (Unaudited)

Long-Term Municipal  Coupon  Maturity  Principal    
Investments--154.2%  Rate (%)  Date  Amount ($)   Value ($) 
Barclays Capital Municipal Trust           
Receipts (Series 21 W) (Salt           
River Project Agricultural           
Improvement and Power           
District, Salt River Project           
Electric System Revenue)  5.00  1/1/38  9,998,763 a,b  10,336,613 
Glendale Western Loop 101 Public           
Facilities Corporation, Third           
Lien Excise Tax Revenue           
(Prerefunded)  7.00  1/1/14  2,000,000 c  2,000,000 
Pima County Industrial Development           
Authority, Education Revenue           
(American Charter Schools           
Foundation Project)  5.63  7/1/38  2,000,000 d  1,569,360 
Pima County Industrial Development           
Authority, IDR (Tucson           
Electric Power Company Project)  5.75  9/1/29  1,000,000   1,016,370 
Pinal County Electrical District           
Number 4, Electric System           
Revenue  6.00  12/1/38  2,300,000   2,350,324 
Salt Verde Financial Corporation,           
Senior Gas Revenue  5.00  12/1/37  490,000   470,640 
GO (Various Purpose)  5.75  4/1/31  3,950,000   4,388,648 
GO (Various Purpose)  6.00  3/1/33  1,250,000   1,436,113 
GO (Various Purpose)  6.50  4/1/33  3,000,000   3,547,920 
GO (Various Purpose)  6.00  11/1/35  2,500,000   2,852,525 
California Municipal Finance           
Authority, Revenue           
(Southwestern Law School)  6.50  11/1/41  750,000 d  825,173 
Chula Vista,           
IDR (San Diego Gas and           
Electric Company)  5.88  2/15/34  2,000,000   2,215,740 
JPMorgan Chase Putters/Drivers           
Trust (Series 3869) (Los           
Angeles Department of           
Airports, Senior Revenue (Los           
Angeles International Airport))  5.25  5/15/18  10,000,000 a,b  10,696,500 
JPMorgan Chase Putters/Drivers           
Trust (Series 4414) (Los           
Angeles Department of           
Airports, Senior Revenue (Los           
Angeles International Airport))  5.00  5/15/21  4,000,000 a,b  4,023,560 


JPMorgan Chase Putters/Drivers           
Trust (Series 4421) (The           
Regents of the University of           
California, General Revenue)  5.00  5/15/21  3,750,000 a,b,d  3,941,700 
Sacramento County,           
Airport System Subordinate and           
Passenger Facility Charges           
Grant Revenue  6.00  7/1/35  2,250,000   2,499,660 
Santa Ana Community Redevelopment           
Agency, Tax Allocation Revenue           
(Merged Project Area)  6.75  9/1/28  3,000,000   3,438,030 
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   2,494,905 
Tuolumne Wind Project Authority,           
Revenue (Tuolumne Company           
Project)  5.88  1/1/29  1,500,000   1,689,210 
Colorado Educational and Cultural           
Facilities Authority, Charter           
School Revenue (American           
Academy Project)  8.00  12/1/40  1,500,000 d  1,687,350 
E-470 Public Highway Authority,           
Senior Revenue  5.25  9/1/25  1,000,000   1,026,210 
E-470 Public Highway Authority,           
Senior Revenue  5.38  9/1/26  1,000,000   1,023,530 
JPMorgan Chase Putters/Drivers           
Trust (Series 4386) (Board of           
Governors of the Colorado           
State University, System           
Enterprise Revenue)  5.00  3/1/20  2,550,000 a,b,d   2,643,228 
RIB Floater Trust (Barclays Bank           
PLC) (Series 25 U-1) (Colorado           
Springs, Utilities System           
Improvement Revenue)  5.00  11/15/43  4,000,000 a,b  4,157,800 
University of Colorado Regents,           
University Enterprise Revenue  5.38  6/1/38  1,500,000 d  1,641,510 
District of Columbia--4.0%           
RIB Floater Trust (Barclays Bank           
PLC) (Series 15 U) (District           
of Columbia, Income Tax           
Secured Revenue)  5.00  12/1/35  6,999,163 a,b  7,395,783 
Greater Orlando Aviation           
Authority, Airport Facilities           
Revenue  6.25  10/1/20  3,980,000   4,701,415 
Mid-Bay Bridge Authority,           
Springing Lien Revenue  7.25  10/1/34  2,500,000   2,752,050 
Palm Beach County Health           
Facilities Authority, Revenue           
(The Waterford Project)  5.88  11/15/37  2,400,000   2,372,496 
Saint Johns County Industrial           
Development Authority, Revenue           


(Presbyterian Retirement           
Communities Project)  5.88  8/1/40  2,500,000   2,550,375 
South Lake County Hospital           
District, Revenue (South Lake           
Hospital, Inc.)  6.25  4/1/39  1,000,000   1,055,820 
Water and Wastewater Revenue  6.00  11/1/28  3,000,000   3,441,030 
Hawaii Department of Budget and           
Finance, Special Purpose           
Revenue (Hawaiian Electric           
Company, Inc. and Subsidiary           
Projects)  6.50  7/1/39  2,400,000   2,580,792 
General Airport Third Lien           
Revenue (Chicago O'Hare           
International Airport)  5.63  1/1/35  1,000,000   1,032,960 
GO  5.00  1/1/24  1,000,000   1,038,730 
GO  5.00  8/1/24  1,000,000   1,047,390 
JPMorgan Chase Putters/Drivers           
Trust (Series 4360) (Greater           
Chicago Metropolitan Water           
Reclamation District, GO           
Capital Improvement Bonds)  5.00  12/1/19  2,500,000 a,b  2,612,875 
Railsplitter Tobacco Settlement           
Authority, Tobacco Settlement           
Revenue  6.00  6/1/28  2,000,000   2,178,120 
University of Illinois Board of           
Trustees, Auxiliary Facilities           
System Revenue  5.13  4/1/36  1,000,000 d  1,022,080 
Iowa Student Loan Liquidity           
Corporation, Student Loan           
Revenue  5.75  12/1/28  2,480,000 d  2,527,988 
Louisiana Public Facilities           
Authority, Revenue (CHRISTUS           
Health Obligated Group)  6.13  7/1/29  1,000,000   1,075,130 
Maine Health and Higher           
Educational Facilities           
Authority, Revenue           
(MaineGeneral Medical Center           
Issue)  7.50  7/1/32  1,250,000   1,371,400 
JPMorgan Chase Putters/Drivers           
Trust (Series 4422) (Mayor and           
City Council of Baltimore,           
Project Revenue (Water           
Projects))  5.00  7/1/21  2,000,000 a,b  2,080,640 
Maryland Economic Development           


Corporation, EDR           
(Transportation Facilities           
Project)  5.75  6/1/35  1,000,000   1,009,170 
Maryland Economic Development           
Corporation, PCR (Potomac           
Electric Project)  6.20  9/1/22  2,500,000   2,928,650 
Barclays Capital Municipal Trust           
Receipts (Series 15 W)           
(Massachusetts Health and           
Educational Facilities           
Authority, Revenue           
(Massachusetts Institute of           
Technology Issue))  5.00  7/1/38  10,000,000   a,b,d 10,473,600 
JPMorgan Chase Putters/Drivers           
Trust (Series 4395)           
(University of Massachusetts           
Building Authority, Project           
and Refunding Revenue)  5.00  5/1/21  3,698,335 a,b,d   3,849,221 
Massachusetts Development Finance           
Agency, Revenue (Tufts Medical           
Center Issue)  7.25  1/1/32  1,500,000   1,721,595 
Massachusetts Educational           
Financing Authority, Education           
Loan Revenue (Issue K)  5.25  7/1/29  2,500,000 d  2,410,125 
Massachusetts Health and           
Educational Facilities           
Authority, Revenue (Suffolk           
University Issue)  6.25  7/1/30  2,000,000 d  2,180,040 
Sewage Disposal System Senior           
Lien Revenue (Insured; Assured           
Guaranty Municipal Corp.)  7.50  7/1/33  2,140,000   2,276,489 
Water Supply System Senior           
Lien Revenue  5.00  7/1/31  1,500,000   1,363,035 
Water Supply System Senior           
Lien Revenue  5.00  7/1/36  3,000,000   2,662,650 
Michigan Hospital Finance           
Authority, HR (Henry Ford           
Health System)  5.00  11/15/38  1,515,000   1,439,462 
Michigan Strategic Fund,           
SWDR (Genesee Power Station           
Project)  7.50  1/1/21  3,385,000   3,118,905 
Royal Oak Hospital Finance           
Authority, HR (William           
Beaumont Hospital Obligated           
Group)  8.00  9/1/29  2,500,000   2,968,075 
Wayne County Airport Authority,           
Airport Revenue (Detroit           
Metropolitan Wayne County           
Airport) (Insured; National           
Public Finance Guarantee Corp.)  5.00  12/1/34  1,000,000   950,180 


Health Care System Revenue           
(Fairview Health Services)  6.75  11/15/32  3,000,000   3,436,920 
Minnesota Agricultural and           
Economic Development Board,           
Health Care System Revenue           
(Fairview Health Care Systems)  6.38  11/15/29  80,000   80,275 
Mississippi Business Finance           
Corporation, PCR (System           
Energy Resources, Inc. Project)  5.88  4/1/22  3,500,000   3,485,615 
Warren County,           
Gulf Opportunity Zone Revenue           
(International Paper Company           
Project)  5.38  12/1/35  2,000,000   1,933,700 
New Jersey--4.6%           
New Jersey Economic Development           
Authority, Water Facilities           
Revenue (New Jersey - American           
Water Company, Inc. Project)  5.70  10/1/39  2,000,000   2,103,700 
New Jersey Higher Education           
Student Assistance Authority,           
Senior Student Loan Revenue  5.00  12/1/18  1,500,000 d  1,664,595 
New Jersey Higher Education           
Student Assistance Authority,           
Student Loan Revenue (Insured;           
Assured Guaranty Corp.)  6.13  6/1/30  2,500,000 d  2,619,175 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  5.00  6/1/29  2,500,000   1,970,025 
New Mexico--1.7%           
PCR (Public Service Company of           
New Mexico San Juan Project)  5.90  6/1/40  3,000,000   3,064,800 
New York--11.6%           
Barclays Capital Municipal Trust           
Receipts (Series 11 B) (New           
York City Transitional Finance           
Authority, Future Tax Secured           
Revenue)  5.00  5/1/30  7,996,797 a,b  8,706,637 
New York City Educational           
Construction Fund, Revenue  6.50  4/1/28  1,500,000 d  1,802,025 
New York City Industrial           
Development Agency, PILOT           
Revenue (Yankee Stadium           
Project) (Insured; Assured           
Guaranty Corp.)  7.00  3/1/49  1,435,000   1,632,743 
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   1,604,805 
RIB Floater Trust (Barclays Bank           
PLC) (Series 16 U) (New York           
City Municipal Water Finance           
Authority, Water and Sewer           


System Second General           
Resolution Revenue  5.00  6/15/44  7,400,000 a,b  7,580,338 
North Carolina--2.8%           
Barclays Capital Municipal Trust           
Receipts (Series 31 W) (North           
Carolina Medical Care           
Commission, Health Care           
Facilities Revenue (Duke           
University Health System))  5.00  6/1/42  5,000,000 a,b  5,043,450 
Butler County,           
Hospital Facilities Revenue           
(UC Health)  5.50  11/1/40  1,500,000   1,508,775 
Ohio Air Quality Development           
Authority, Air Quality Revenue           
(Ohio Valley Electric           
Corporation Project)  5.63  10/1/19  600,000   651,042 
Toledo-Lucas County Port           
Authority, Special Assessment           
Revenue (Crocker Park Public           
Improvement Project)  5.38  12/1/35  2,000,000   1,916,720 
Clairton Municipal Authority,           
Sewer Revenue  5.00  12/1/42  1,000,000   902,630 
JPMorgan Chase Putters/Drivers           
Trust (Series 3916) (Geisinger           
Authority, Health System           
Revenue (Geisinger Health           
System))  5.13  6/1/35  2,000,000 a,b  2,021,420 
GO  6.50  8/1/41  1,750,000   1,917,177 
Rhode Island--1.1%           
Tobacco Settlement Financing           
Corporation of Rhode Island,           
Tobacco Settlement           
Asset-Backed Bonds  6.13  6/1/32  2,000,000   1,965,240 
South Carolina--7.0%           
JPMorgan Chase Putters/Drivers           
Trust (Series 4379) (South           
Carolina Public Service           
Authority, Revenue Obligations           
(Santee Cooper))  5.13  6/1/37  4,800,000 a,b  4,839,936 
South Carolina Public Service           
Authority, Revenue Obligations           
(Santee Cooper)  5.50  1/1/38  3,000,000   3,212,490 
Tobacco Settlement Revenue           
Management Authority of South           
Carolina, Tobacco Settlement           
Asset-Backed Bonds (Escrowed           
to Maturity)  6.38  5/15/30  3,750,000   4,728,900 
JPMorgan Chase Putters/Drivers           
Trust (Series 4416)           
(Metropolitan Government of           
Nashville and Davidson County,           
Water and Sewer Revenue)  5.00  7/1/21  2,000,000 a,b  2,095,520 


Barclays Capital Municipal Trust           
Receipts (Series 39 W) (Texas           
A&M University System Board of           
Regents, Financing System           
Revenue)  5.00  5/15/39  5,000,000  a,b,d 5,183,700 
Airport System Subordinate           
Lien Revenue  5.00  7/1/25  1,300,000   1,380,509 
JPMorgan Chase Putters/Drivers           
Trust (Series 4356) (San           
Antonio, Electric and Gas           
Systems Junior Lien Revenue)  5.00  2/1/21  6,300,000 a,b  6,485,157 
La Vernia Higher Education Finance           
Corporation, Education Revenue           
(Knowledge is Power Program,           
Inc.)  6.25  8/15/39  2,250,000 d  2,383,178 
Lubbock Educational Facilities           
Authority, Improvement Revenue           
(Lubbock Christian University)  5.25  11/1/37  1,500,000 d  1,486,800 
North Texas Education Finance           
Corporation, Education Revenue           
(Uplift Education)  5.13  12/1/42  2,000,000 d  1,832,580 
North Texas Tollway Authority,           
First Tier System Revenue           
(Insured; Assured Guaranty           
Corp.)  5.75  1/1/40  1,685,000   1,788,341 
North Texas Tollway Authority,           
Second Tier System Revenue  5.75  1/1/38  4,000,000   4,182,680 
Washington County Industrial           
Development Authority, HR           
(Mountain States Health           
Alliance)  7.25  7/1/19  1,555,000   1,728,693 
Barclays Capital Municipal Trust           
Receipts (Series 27 B) (King           
County, Sewer Revenue)  5.00  1/1/29  2,999,037 a,b  3,247,137 
Washington Health Care Facilities           
Authority, Mortgage Revenue           
(Highline Medical Center)           
(Collateralized; FHA)           
(Prerefunded)  6.25  8/1/18  2,990,000 c  3,642,418 
Washington Health Care Facilities           
Authority, Revenue (Catholic           
Health Initiatives)  6.38  10/1/36  1,500,000   1,674,075 
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   962,080 
Wyoming Municipal Power Agency,           
Power Supply System Revenue  5.50  1/1/38  2,000,000   2,135,320 
U.S. Related--8.6%           


LOR (Section 30)  5.75  12/1/34  1,500,000   1,552,275  
Puerto Rico Aqueduct and Sewer             
Authority, Senior Lien Revenue  5.13  7/1/37  1,550,000   958,644  
Puerto Rico Commonwealth,             
Public Improvement GO  5.50  7/1/32  1,000,000   668,730  
Puerto Rico Commonwealth,             
Public Improvement GO  6.00  7/1/39  1,300,000   885,989  
Puerto Rico Commonwealth,             
Public Improvement GO  6.50  7/1/40  1,000,000   701,860  
Puerto Rico Electric Power             
Authority, Power Revenue  5.00  7/1/37  1,945,000   1,192,363  
Puerto Rico Electric Power             
Authority, Power Revenue  5.50  7/1/38  5,400,000   3,438,720  
Puerto Rico Electric Power             
Authority, Power Revenue  5.25  7/1/40  1,500,000   937,695  
Puerto Rico Electric Power             
Authority, Power Revenue  5.00  7/1/42  950,000   573,049  
Puerto Rico Sales Tax Financing             
Corporation, Sales Tax Revenue             
(First Subordinate Series)  5.38  8/1/39  1,000,000   697,090  
Puerto Rico Sales Tax Financing             
Corporation, Sales Tax Revenue             
(First Subordinate Series)  6.00  8/1/42  5,500,000   4,110,370  
Total Investments (cost $276,902,830)      154.2 %  282,478,996  
Liabilities, Less Cash and Receivables      (19.1 %)  (35,011,970 ) 
Preferred Stock, at redemption value      (35.1 %)  (64,300,000 ) 
Net Assets Applicable to Common Shareholders      100.0 %  183,167,026  


a Collateral for floating rate borrowings. 
b Securities 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 December 31, 2013, these
securities were valued at $107,414,815 or 58.6% 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 At December 31, 2013, the fund had $51,743,428 or 28.2% of net assets applicable to Common Shareholders invested in 
securities whose payment of principal and interest is dependent upon revenues generated from education.


At December 31, 2013, net unrealized appreciation on investments was $5,576,166 of which $13,996,975 related to appreciated investment securities and $8,420,809 related to depreciated investment securities. At December 31, 2013, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes.

Summary of Abbreviations     
ABAG  Association of Bay Area Governments  ACA  American Capital Access 
AGC  ACE Guaranty Corporation  AGIC  Asset Guaranty Insurance Company 
AMBAC  American Municipal Bond Assurance Corporation  ARRN  Adjustable Rate Receipt Notes 
BAN  Bond Anticipation Notes  BPA  Bond Purchase Agreement 


CIFG  CDC Ixis Financial Guaranty  COP  Certificate of Participation 
CP  Commercial Paper  DRIVERS  Derivative Inverse Tax-Exempt Receipts 
EDR  Economic Development Revenue  EIR  Environmental Improvement Revenue 
FGIC  Financial Guaranty Insurance Company  FHA  Federal Housing Administration 
FHLB  Federal Home Loan Bank  FHLMC  Federal Home Loan Mortgage Corporation 
FNMA  Federal National Mortgage Association  GAN  Grant Anticipation Notes 
GIC  Guaranteed Investment Contract  GNMA  Government National Mortgage Association 
GO  General Obligation  HR  Hospital Revenue 
IDB  Industrial Development Board  IDC  Industrial Development Corporation 
IDR  Industrial Development Revenue  LIFERS  Long Inverse Floating Exempt Receipts 
LOC  Letter of Credit  LOR  Limited Obligation Revenue 
LR  Lease Revenue  MERLOTS  Municipal Exempt Receipts Liquidity Option 
MFHR  Multi-Family Housing Revenue  MFMR  Multi-Family Mortgage Revenue 
PCR  Pollution Control Revenue  P-FLOATS  Puttable Floating Option Tax-Exempt Receipts 
PILOT  Payment in Lieu of Taxes  PUTTERS  Puttable Tax-Exempt Receipts 
RAC  Revenue Anticipation Certificates  RAN  Revenue Anticipation Notes 
RAW  Revenue Anticipation Warrants  RIB  Residual Interest Bonds 
ROCS  Reset Option Certificates  RRR  Resources Recovery Revenue 
SAAN  State Aid Anticipation Notes  SBPA  Standby Bond Purchase Agreement 
SFHR  Single Family Housing Revenue  SFMR  Single Family Mortgage Revenue 
SONYMA  State of New York Mortgage Agency  SPEARS  Short Puttable Exempt Adjustable Receipts 
SWDR  Solid Waste Disposal Revenue  TAN  Tax Anticipation Notes 
TAW  Tax Anticipation Warrants  TRAN  Tax and Revenue Anticipation Notes 
XLCA  XL Capital Assurance     


The following is a summary of the inputs used as of December 31, 2013 in valuing the fund's investments:

      Level 3 -   
  Level 1 -  Level 2 - Other  Significant   
  Unadjusted Quoted  Significant  Unobservable   
Assets ($)  Prices  Observable Inputs  Inputs  Total 
Investments in Securities:         
Municipal Bonds+  -  282,478,996  -  282,478,996 


+ See Statement of Investments for additional detailed categorizations. 


The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 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.

Portfolio valuation: 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 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 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 preceding securities are categorized as Level 2 in the hierarchy.

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 (for example, a foreign exchange or market), 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 of Directors. 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 as Level 2 or 3 depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the Securities and Exchange Commission 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.






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




February 21, 2014


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




February 21, 2014


By: /s/ James Windels

James Windels




February 21, 2014



(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)