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 |
811-05652 |
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BNY Mellon Municipal Income, Inc. |
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(Exact name of Registrant as specified in charter) |
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c/o BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, New York 10286 |
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(Address of principal executive offices) (Zip code) |
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Deirdre Cunnane, Esq.
240 Greenwich Street
New York, New York 10286 |
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(Name and address of agent for service) |
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Registrant's telephone number, including area code: |
(212) 922-6400 |
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Date of fiscal year end:
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09/30 |
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Date of reporting period: |
03/31/25
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FORM N-CSR
| Item 1. | Reports to Stockholders. |
BNY Mellon Municipal Income, Inc.
BNY Mellon Municipal Income, Inc.
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Protecting Your Privacy
Our Pledge to You
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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.
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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.
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THE FUND COLLECTS INFORMATION IN ORDER TO SERVICE
AND ADMINISTER YOUR ACCOUNT. The fund collects a variety of
nonpublic personal information, which may include:
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●Information we receive from you, such as your name, address, and
social security number.
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●Information about your transactions with us, such as the purchase or
sale of fund shares.
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●Information we receive from agents and service providers, such as proxy
voting information.
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THE FUND DOES NOT SHARE NONPUBLIC PERSONAL
INFORMATION WITH ANYONE, EXCEPT AS PERMITTED BY
LAW.
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Thank you for this opportunity to serve you.
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The views expressed in this report reflect those of the portfolio manager(s) only through the end of the period covered and do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf
of any fund in the BNY Mellon Family of Funds.
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
Contents
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DISCUSSION OF FUND PERFORMANCE (Unaudited)
How did the Fund perform last six months?
For the 6-month period ended March 31, 2025, BNY Mellon Municipal Income, Inc. (the
“fund”) produced a total return of -5.13% on a net-asset-value basis and -0.22% on a market
basis.1 Over the same period, the fund provided aggregate income dividends of $.114 per share,
which reflects a distribution rate of 1.59%.2 In comparison, the Bloomberg U.S. Municipal Bond Index (the “Index”), the fund’s benchmark, posted a total return of -1.44% for the same period.3
1
Total return includes reinvestment of dividends and any capital gains paid, based
upon net asset value per share or market price per share, as applicable. Past performance is no guarantee of
future results. Market price per share, net asset value per share and investment return fluctuate.
2
Distribution rate per share is based upon dividends per share paid from undistributed
net investment income during the period, divided by the market price per share at the end of the
period, adjusted for any capital gain distributions.
3
Source: Lipper, Inc. — The Bloomberg U.S. Municipal Bond Index covers the U.S. dollar-denominated long-term tax-exempt bond market. Unlike a fund, the Index is not subject to fees
and other expenses. Investors cannot invest directly in any Index.
STATEMENT OF INVESTMENTS
March 31, 2025 (Unaudited)
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Long-Term Municipal Investments — 133.6%
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Black Belt Energy Gas District,
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Black Belt Energy Gas District,
Revenue Bonds, Refunding
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Jefferson County, Revenue Bonds,
Refunding
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Jefferson County, Revenue Bonds,
Refunding
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Mobile County Industrial
Development Authority,
Revenue Bonds (Calvert LLC
Project) Ser. B
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Northern Tobacco Securitization
Corp., Revenue Bonds,
Refunding, Ser. A
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Arizona Industrial Development
Authority, Revenue Bonds
(Sustainable Bond) (Equitable
School Revolving Fund
Obligated Group) Ser. A
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Glendale Industrial Development
Authority, Revenue Bonds,
Refunding (Sun Health Services
Obligated Group) Ser. A
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La Paz County Industrial
Development Authority,
Revenue Bonds (Harmony
Public Schools) Ser. A(b)
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Salt Verde Financial Corp.,
Revenue Bonds
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Golden State Tobacco
Securitization Corp., Revenue
Bonds, Refunding (Tobacco
Settlement Asset) Ser. B
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Long-Term Municipal Investments — 133.6% (continued)
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California — 8.3% (continued)
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San Diego County Regional
Airport Authority, Revenue
Bonds, Ser. B
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Tender Option Bond Trust
Receipts (Series 2023-
XM1114), (Long Beach Bond
Finance Authority, Revenue
Bonds) Non-Recourse,
Underlying Coupon Rate
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Tender Option Bond Trust
Receipts (Series 2022-XF3024),
(San Francisco City & County,
Revenue Bonds, Refunding, Ser.
A) Recourse, Underlying
Coupon Rate 5.00%(b),(c),(d)
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Colorado High Performance
Transportation Enterprise,
Revenue Bonds (C-470 Express
Lanes System)
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Tender Option Bond Trust
Receipts (Series 2020-
XM0829), (Colorado Health
Facilities Authority, Revenue
Bonds, Refunding
(CommonSpirit Health
Obligated Group) Ser. A1)
Recourse, Underlying Coupon
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Tender Option Bond Trust
Receipts (Series 2023-
XM1124), (Colorado Health
Facilities Authority, Revenue
Bonds (Adventist Health
System/Sunbelt Obligated
Group) Ser. A) Recourse,
Underlying Coupon Rate
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Long-Term Municipal Investments — 133.6% (continued)
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Delaware Economic Development
Authority, Revenue Bonds
(ACTS Retirement-Life
Communities Obligated Group)
Ser. B
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Atlantic Beach, Revenue Bonds
(Fleet Landing Project) Ser. A
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Collier County Industrial
Development Authority,
Revenue Bonds (NCH
Healthcare System) (Insured;
Assured Guaranty Municipal
Corp.) Ser. A
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Florida Housing Finance Corp.,
Revenue Bonds (Insured;
GNMA, FNMA, FHLMC) Ser. 1
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Greater Orlando Aviation
Authority, Revenue Bonds, Ser.
A
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Hillsborough County Port District,
Revenue Bonds (Tampa Port
Authority Project) Ser. B
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Palm Beach County Health
Facilities Authority, Revenue
Bonds, Refunding (Lifespace
Communities Obligated Group)
Ser. C
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Tender Option Bond Trust
Receipts (Series 2023-
XM1122), (Miami-Dade FL
County Water & Sewer System,
Revenue Bonds, Refunding, Ser.
B) Recourse, Underlying
Coupon Rate 4.00%(b),(c),(d)
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Georgia Municipal Electric
Authority, Revenue Bonds
(Plant Vogtle Units
3&4 Project) Ser. A
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Long-Term Municipal Investments — 133.6% (continued)
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Georgia — 5.5% (continued)
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Main Street Natural Gas, Inc.,
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Tender Option Bond Trust
Receipts (Series 2020-
XM0825), (Brookhaven
Development Authority,
Revenue Bonds (Children’s
Healthcare of Atlanta) Ser. A)
Recourse, Underlying Coupon
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Tender Option Bond Trust
Receipts (Series 2023-XF3183),
(Municipal Electric Authority of
Georgia, Revenue Bonds (Plant
Vogtle Units 3&4 Project) Ser.
A) Recourse, Underlying
Coupon Rate 5.00%(b),(c),(d)
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The Atlanta Development
Authority, Revenue Bonds, Ser.
A1
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Chicago, GO, Refunding, Ser. A
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Chicago Midway International
Airport, Revenue Bonds,
Refunding, Ser. C
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Chicago O’Hare International
Airport, Revenue Bonds, Ser. A
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Chicago Park District, GO,
Refunding, Ser. A
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Illinois, GO, Refunding, Ser. A
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Illinois Finance Authority,
Revenue Bonds, Refunding
(Rosalind Franklin University
of Medical & Science)
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Metropolitan Pier & Exposition
Authority, Revenue Bonds
(McCormick Place Expansion
Project)
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Long-Term Municipal Investments — 133.6% (continued)
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Illinois — 11.8% (continued)
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Metropolitan Pier & Exposition
Authority, Revenue Bonds
(McCormick Place Project)
(Insured; National Public
Finance Guarantee Corp.) Ser.
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Tender Option Bond Trust
Receipts (Series 2023-XF1623),
(Regional Transportation
Authority Illinois, Revenue
Bonds, Ser. B) Non-Recourse,
Underlying Coupon Rate
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Tender Option Bond Trust
Receipts (Series 2024-XF3244),
(Chicago O’Hare International
Airport, Revenue Bonds,
Refunding) Recourse,
Underlying Coupon Rate
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Indianapolis Local Public
Improvement Bond Bank,
Revenue Bonds (City Moral
Obligation) (Insured; Build
America Mutual) Ser. F1
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Iowa Finance Authority, Revenue
Bonds, Refunding (Iowa
Fertilizer Co. Project)(f)
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Kentucky Public Energy
Authority, Revenue Bonds, Ser.
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Louisiana Public Facilities
Authority, Revenue Bonds (I-
10 Calcasieu River Bridge
Public-Private Partnership
Project)
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Long-Term Municipal Investments — 133.6% (continued)
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Louisiana — 5.6% (continued)
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New Orleans Aviation Board,
Revenue Bonds (General
Airport-N Terminal Project)
Ser. A
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Tender Option Bond Trust
Receipts (Series 2018-XF2584),
(Louisiana Public Facilities
Authority, Revenue Bonds
(Franciscan Missionaries of Our
Lady Health System Project))
Non-Recourse, Underlying
Coupon Rate 5.00%(b),(c),(d)
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Maryland Economic Development
Corp., Revenue Bonds (College
Park Leonardtown Project)
(Insured; Assured Guaranty
Municipal Corp.)
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Maryland Economic Development
Corp., Revenue Bonds
(Sustainable Bond) (Purple
Line Transit Partners) Ser. B
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Maryland Health & Higher
Educational Facilities
Authority, Revenue Bonds
(Adventist Healthcare
Obligated Group) Ser. A
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Tender Option Bond Trust
Receipts (Series 2024-XF1758),
(Maryland Stadium Authority,
Revenue Bonds) Non-Recourse,
Underlying Coupon Rate
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Massachusetts Development
Finance Agency, Revenue
Bonds, Ser. T
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Long-Term Municipal Investments — 133.6% (continued)
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Detroit Downtown Development
Authority, Tax Allocation
Bonds, Refunding (Catalyst
Development Project)
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Michigan Finance Authority,
Revenue Bonds, Refunding, Ser.
A
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Duluth Economic Development
Authority, Revenue Bonds,
Refunding (Essentia Health
Obligated Group) Ser. A
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Minnesota Agricultural &
Economic Development Board,
Revenue Bonds
(HealthPartners Obligated
Group)
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Missouri Health & Educational
Facilities Authority, Revenue
Bonds (Lutheran Senior
Services Projects) Ser. A
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Tender Option Bond Trust
Receipts (Series 2023-
XM1116), (Jackson County
Missouri Special Obligation,
Revenue Bonds, Refunding, Ser.
A) Non-Recourse, Underlying
Coupon Rate 4.25%(b),(c),(d)
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Clark County School District, GO
(Insured; Assured Guaranty
Municipal Corp.) Ser. A
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Long-Term Municipal Investments — 133.6% (continued)
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Nevada — 2.4% (continued)
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Reno, Revenue Bonds, Refunding
(Insured; Assured Guaranty
Municipal Corp.)
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Reno, Revenue Bonds, Refunding
(Reno Transportation Rail
Access Project) (Insured;
Assured Guaranty Municipal
Corp.)
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New Hampshire Business Finance
Authority, Revenue Bonds
(University of Nevada Reno
Project) (Insured; Build
America Mutual) Ser. A
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New Jersey Transportation Trust
Fund Authority, Revenue
Bonds
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New Jersey Transportation Trust
Fund Authority, Revenue
Bonds, Refunding, Ser. AA
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South Jersey Port Corp., Revenue
Bonds, Ser. B
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Tobacco Settlement Financing
Corp., Revenue Bonds,
Refunding, Ser. A
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New Mexico Mortgage Finance
Authority, Revenue Bonds
(Insured; GNMA, FNMA,
FHLMC) Ser. E
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New York Convention Center
Development Corp., Revenue
Bonds (Hotel Unit Fee)
(Insured; Assured Guaranty
Municipal Corp.) Ser. B(e)
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New York State Housing Finance
Agency, Revenue Bonds
(Sustainable Bonds) Ser. B1
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Long-Term Municipal Investments — 133.6% (continued)
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New York — 7.9% (continued)
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New York Transportation
Development Corp., Revenue
Bonds (JFK International
Airport Terminal)
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New York Transportation
Development Corp., Revenue
Bonds (LaGuardia Airport
Terminal B Redevelopment
Project) Ser. A
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New York Transportation
Development Corp., Revenue
Bonds (Sustainable Bond) (JFK
International Airport Terminal
One Project) (Insured; Assured
Guaranty Municipal Corp.)
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Tender Option Bond Trust
Receipts (Series 2022-
XM1004), (Metropolitan
Transportation Authority,
Revenue Bonds, Refunding
(Sustainable Bond) (Insured;
Assured Guaranty Municipal
Corp.) Ser. C) Non-Recourse,
Underlying Coupon Rate
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Tender Option Bond Trust
Receipts (Series 2024-
XM1174), (New York State
Transportation Development
Corp., Revenue Bonds
(Sustainable Bond) (JFK
International Airport Terminal
One Project) (Insured; Assured
Guaranty Municipal Corp.))
Recourse, Underlying Coupon
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Long-Term Municipal Investments — 133.6% (continued)
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New York — 7.9% (continued)
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Tender Option Bond Trust
Receipts (Series 2024-
XM1181), (Triborough New
York Bridge & Tunnel
Authority, Revenue Bonds, Ser.
A1) Non-Recourse, Underlying
Coupon Rate 4.13%(b),(c),(d)
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Tender Option Bond Trust
Receipts (Series 2024-
XM1194), (New York
Transportation Development
Corp., Revenue Bonds,
Refunding (Sustainable Bond)
(JFK International Airport
Terminal Six Redevelopment
Project) (Insured; Assured
Guaranty Municipal Corp.))
Recourse, Underlying Coupon
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North Carolina Medical Care
Commission, Revenue Bonds
(Carolina Meadows Obligated
Group)
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Cuyahoga County, Revenue
Bonds, Refunding (The
MetroHealth System)
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Port of Greater Cincinnati
Development Authority,
Revenue Bonds, Refunding
(Duke Energy Co.) (Insured;
Assured Guaranty Municipal
Corp.) Ser. B
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Tender Option Bond Trust
Receipts (Series 2024-XF1711),
(University of Cincinnati Ohio
Receipt, Revenue Bonds, Ser. A)
Non-Recourse, Underlying
Coupon Rate 5.00%(b),(c),(d)
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Long-Term Municipal Investments — 133.6% (continued)
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Tender Option Bond Trust
Receipts (Series 2024-
XM1163), (Oklahoma City
Water Utilities Trust, Revenue
Bonds, Refunding) Non-
Recourse, Underlying Coupon
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Allentown School District, GO,
Refunding (Insured; Build
America Mutual) Ser. B
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Clairton Municipal Authority,
Revenue Bonds, Refunding, Ser.
B
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Montgomery County Industrial
Development Authority,
Revenue Bonds, Refunding
(ACTS Retirement-Life
Communities Obligated Group)
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Pennsylvania Economic
Development Financing
Authority, Revenue Bonds (The
Penndot Major Bridges)
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Pennsylvania Turnpike
Commission, Revenue Bonds,
Ser. A
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Pennsylvania Turnpike
Commission, Revenue Bonds,
Ser. A1
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Tender Option Bond Trust
Receipts (Series 2023-XF1525),
(Pennsylvania Economic
Development Financing
Authority UPMC, Revenue
Bonds, Ser. A) Recourse,
Underlying Coupon Rate
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
|
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Long-Term Municipal Investments — 133.6% (continued)
|
Pennsylvania — 7.8% (continued)
|
Tender Option Bond Trust
Receipts (Series 2023-
XM1133), (Philadelphia Water
& Wastewater, Revenue Bonds,
Refunding (Insured; Assured
Guaranty Municipal Corp.) Ser.
B) Non-Recourse, Underlying
Coupon Rate 5.50%(b),(c),(d)
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Tender Option Bond Trust
Receipts (Series 2024-XF1750),
(Philadelphia Gas Works,
Revenue Bonds, Refunding
(Insured; Assured Guaranty
Corp.) Ser. A) Non-Recourse,
Underlying Coupon Rate
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Rhode Island Health &
Educational Building Corp.,
Revenue Bonds (Lifespan
Obligated Group)
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Tender Option Bond Trust
Receipts (Series 2023-
XM1117), (Rhode Island
Infrastructure Bank State
Revolving Fund, Revenue
Bonds, Ser. A) Non-Recourse,
Underlying Coupon Rate
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South Carolina Jobs-Economic
Development Authority,
Revenue Bonds, Refunding
(Bon Secours Mercy Health)
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South Carolina Public Service
Authority, Revenue Bonds,
Refunding (Santee Cooper) Ser.
A
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Long-Term Municipal Investments — 133.6% (continued)
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South Carolina — 7.2% (continued)
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Tender Option Bond Trust
Receipts (Series 2024-
XM1175), (South Carolina
Public Service Authority,
Revenue Bonds, Refunding
(Insured; Assured Guaranty
Municipal Corp.) Ser. B) Non-
Recourse, Underlying Coupon
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Tobacco Settlement Revenue
Management Authority,
Revenue Bonds, Ser. B
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Tender Option Bond Trust
Receipts (Series 2022-XF1409),
(South Dakota Health &
Educational Facilities
Authority, Revenue Bonds,
Refunding (Avera Health
Obligated Group)) Non-
Recourse, Underlying Coupon
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Clifton Higher Education Finance
Corp., Revenue Bonds (IDEA
Public Schools) Ser. A
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Clifton Higher Education Finance
Corp., Revenue Bonds (Uplift
Education) Ser. A
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Clifton Higher Education Finance
Corp., Revenue Bonds,
Refunding (International
Leadership of Texas) (Insured;
Permanent School Fund
Guarantee Program) Ser. A
|
|
|
|
|
|
Harris County-Houston Sports
Authority, Revenue Bonds,
Refunding (Insured; Assured
Guaranty Municipal Corp.) Ser.
|
|
|
|
|
|
STATEMENT OF INVESTMENTS (Unaudited) (continued)
|
|
|
|
|
|
Long-Term Municipal Investments — 133.6% (continued)
|
Texas — 10.7% (continued)
|
Houston Airport System, Revenue
Bonds, Refunding (Insured;
Assured Guaranty Municipal
Corp.) Ser. A
|
|
|
|
|
|
Houston Airport System, Revenue
Bonds, Refunding, Ser. A
|
|
|
|
|
|
Lamar Consolidated Independent
School District, GO
|
|
|
|
|
|
New Hope Cultural Education
Facilities Finance Corp.,
Revenue Bonds, Refunding
(Westminister Project)
|
|
|
|
|
|
Tender Option Bond Trust
Receipts (Series 2023-
XM1125), (Medina Valley
Independent School District,
GO (Insured; Permanent School
Fund Guarantee Program))
Non-Recourse, Underlying
Coupon Rate 4.00%(b),(c),(d)
|
|
|
|
|
|
Tender Option Bond Trust
Receipts (Series 2024-
XM1164), (Texas University
System, Revenue Bonds,
Refunding) Non-Recourse,
Underlying Coupon Rate
|
|
|
|
|
|
Texas Municipal Gas Acquisition
& Supply Corp. IV, Revenue
|
|
|
|
|
|
Waxahachie Independent School
District, GO (Insured;
Permanent School Fund
Guarantee Program)
|
|
|
|
|
|
|
|
|
|
|
|
|
Salt Lake City Airport, Revenue
Bonds, Ser. A
|
|
|
|
|
|
Utah Infrastructure Agency,
Revenue Bonds, Refunding, Ser.
A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Municipal Investments — 133.6% (continued)
|
|
Tender Option Bond Trust
Receipts (Series 2024-
XM1176), (Virginia State
Housing Development
Authority, Revenue Bonds, Ser.
A) Recourse, Underlying
Coupon Rate 4.80%(b),(c),(d)
|
|
|
|
|
|
Virginia Small Business Financing
Authority, Revenue Bonds
(Transform 66 P3 Project)
|
|
|
|
|
|
Williamsburg Economic
Development Authority,
Revenue Bonds (William &
Mary Project) (Insured;
Assured Guaranty Municipal
Corp.) Ser. A
|
|
|
|
|
|
|
|
|
|
|
|
|
Tender Option Bond Trust
Receipts (Series 2024-XF1730),
(Port of Seattle Washington,
Revenue Bonds, Refunding, Ser.
B) Non-Recourse, Underlying
Coupon Rate 5.25%(b),(c),(d)
|
|
|
|
|
|
Washington Housing Finance
Commission, Revenue Bonds,
Refunding (Seattle Academy of
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Finance Authority,
Revenue Bonds (EMU Campus
Living) (Insured; Build America
Mutual) Ser. A1
|
|
|
|
|
|
Public Finance Authority,
Revenue Bonds (EMU Campus
Living) (Insured; Build America
Mutual) Ser. A1
|
|
|
|
|
|
STATEMENT OF INVESTMENTS (Unaudited) (continued)
|
|
|
|
|
|
Long-Term Municipal Investments — 133.6% (continued)
|
Wisconsin — 3.2% (continued)
|
Public Finance Authority,
Revenue Bonds, Ser. 1
|
|
|
|
|
|
Wisconsin Health & Educational
Facilities Authority, Revenue
Bonds (Bellin Memorial
Hospital Obligated Group)
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments (cost $203,891,324)
|
|
|
|
Liabilities, Less Cash and Receivables
|
|
|
|
Net Assets Applicable to Common Stockholders
|
|
|
FHLMC—Federal Home Loan Mortgage Corporation
|
FNMA—Federal National Mortgage Association
|
GNMA—Government National Mortgage Association
|
|
|
These securities have a put feature; the date shown represents the put date and the
bond holder can take a
specific action to retain the bond after the put date.
|
|
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
March 31, 2025, these securities amounted to $76,891,853 or 50.5% of net assets applicable
to Common
Stockholders.
|
|
The Variable Rate is determined by the Remarketing Agent in its sole discretion based
on prevailing market
conditions and may, but need not, be established by reference to one or more financial
indices.
|
|
Collateral for floating rate borrowings. The coupon rate given represents the current
interest rate for the
inverse floating rate security.
|
|
Security issued with a zero coupon. Income is recognized through the accretion of
discount.
|
|
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.
|
See notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2025 (Unaudited)
|
|
|
|
|
|
Investments in securities—See Statement of Investments
|
|
|
|
|
|
|
|
|
Receivable for investment securities sold
|
|
|
|
|
|
|
|
|
|
|
|
Due to BNY Mellon Investment Adviser, Inc. and
affiliates—Note 2(b)
|
|
|
Payable for inverse floater notes issued—Note 3
|
|
|
VMTP Shares at liquidation value—Note 1 ($30,225,000 face
amount, report net of unamortized VMTP Shares deferred
offering cost of $121,779)—Note 1(g)
|
|
|
Interest and expense payable related to inverse floater notes
issued—Note 3
|
|
|
Reorganization expense payable—Note 4
|
|
|
|
|
|
|
|
|
Net Assets Applicable to Common Stockholders ($)
|
|
|
Composition of Net Assets ($):
|
|
|
Common Stock, par value, $.001 per share
(20,757,267 shares issued and outstanding)
|
|
|
|
|
|
Total distributable earnings (loss)
|
|
|
Net Assets Applicable to Common Stockholders ($)
|
|
|
|
|
|
(110 million shares authorized)
|
|
|
Net Asset Value Per Share of Common Stock ($)
|
|
|
See notes to financial statements.
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2025 (Unaudited)
|
|
|
|
|
|
|
|
|
|
Interest and expense related to inverse floater
notes issued—Note 3
|
|
VMTP Shares interest expense and amortization of
offering costs—Note 1(g)
|
|
Reorganization expense—Note 4
|
|
|
|
Directors’ fees and expenses—Note 2(c)
|
|
|
|
|
|
Chief Compliance Officer fees—Note 2(b)
|
|
Shareholder servicing costs
|
|
Redemption and Paying Agent fees—Note 2(b)
|
|
|
|
|
|
|
|
Less—reduction in fees due to earnings credits—Note 2(b)
|
|
|
|
|
|
Realized and Unrealized Gain (Loss) on Investments—Note 3 ($):
|
|
Net realized gain (loss) on investments
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
|
Net (Decrease) in Net Assets Applicable to Common Stockholders
Resulting from Operations
|
|
See notes to financial statements.
STATEMENT OF CASH FLOWS
Six Months Ended March 31, 2025 (Unaudited)
|
|
|
Cash Flows from Operating Activities ($):
|
|
|
Purchases of long term portfolio securities
|
|
|
Proceeds from sales of long term portfolio securities
|
|
|
|
|
|
Interest and expense related to inverse floater notes issued
|
|
|
VMTP Shares interest expense and amortization of offering
costs paid
|
|
|
Expenses paid to BNY Mellon Investment Adviser, Inc. and
affiliates
|
|
|
|
|
|
Net Cash Provided (or Used) in Operating Activities
|
|
|
Cash Flows From Financing Activities ($):
|
|
|
Dividends paid to Common Stockholders
|
|
|
Increase in payable for inverse floater notes issued
|
|
|
Net Cash Provided (or Used) in Financing Activities
|
|
|
Net Increase (Decrease) in Cash
|
|
|
Cash at beginning of period
|
|
|
|
|
|
Reconciliation of Net Increase (Decrease) in Net Assets
Applicable to Common Stockholders Resulting from
Operations to Net Cash Provided by (or Used) in
Operating Activities ($):
|
|
|
Net (Decrease) in Net Assets Resulting From Operations
|
|
|
Adjustments to Reconcile Net Increase (Decrease) in Net
Assets Applicable to Common Stockholders Resulting
from Operations to Net Cash Provided (or Used) in
Operating Activities ($):
|
|
|
Decrease in investments in securities at cost
|
|
|
Decrease in interest receivable
|
|
|
Increase in receivable for investment securities sold
|
|
|
Decrease in unamortized VMTP Shares offering costs
|
|
|
Increase in prepaid expenses
|
|
|
Increase in Due to BNY Mellon Investment Adviser, Inc. and
affiliates
|
|
|
Decrease in interest and expense payable related to inverse
floater notes issued
|
|
|
Decrease in Directors’ fees and expenses payable
|
|
|
Increase in Reorganization expense payable
|
|
|
Increase in other accrued expenses
|
|
|
Net change in unrealized (appreciation) depreciation on
investments
|
|
|
Net Cash Provided (or Used) in Operating Activities
|
|
|
See notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
|
Six Months Ended
March 31, 2025 (Unaudited)
|
Year Ended
September 30, 2024
|
|
|
|
|
|
|
|
Net realized gain (loss) on
investments
|
|
|
Net change in unrealized appreciation
(depreciation) on investments
|
|
|
Net Increase (Decrease) in Net
Assets Applicable to Common
Stockholders Resulting from
Operations
|
|
|
|
|
|
Distributions to stockholders
|
|
|
Distributions to Common
Stockholders
|
|
|
Total Increase (Decrease) in Net
Assets Applicable to Common
Stockholders
|
|
|
Net Assets Applicable to Common
Stockholders ($):
|
|
|
|
|
|
|
|
|
See notes to financial statements.
The following table describes the performance for the fiscal periods indicated. Market
price total return is calculated assuming an initial investment made at the market price
at the beginning of the period, reinvestment of all dividends and distributions at market
price during the period, and sale at the market price on the last day of the period.
|
Six Months Ended
March 31, 2025
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value,
beginning of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and
unrealized gain
(loss) on
investments
|
|
|
|
|
|
|
Dividends to Preferred
Stockholders from
net investment
income
|
|
|
|
|
|
|
Total from Investment
Operations
|
|
|
|
|
|
|
Distributions to
Common
Stockholders:
|
|
|
|
|
|
|
Dividends from net
investment income
|
|
|
|
|
|
|
Net asset value, end of
period
|
|
|
|
|
|
|
Market value, end of
period
|
|
|
|
|
|
|
Market Price Total
Return (%)
|
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS (continued)
|
Six Months Ended
March 31, 2025
(Unaudited)
|
|
|
|
|
|
|
|
Ratios/Supplemental Data (%):
|
|
|
|
|
|
Ratio of total expenses
to average net
assets
|
|
|
|
|
|
|
Ratio of net expenses
to average net
assets
|
|
|
|
|
|
|
Ratio of interest and
expense related to
inverse floater
notes issued, and
VMTP Shares
interest expense to
average net assets
|
|
|
|
|
|
|
Ratio of net
investment income
to average net
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Coverage of
VMTP Shares and
Preferred Stock, end
of period
|
|
|
|
|
|
|
Net Assets,
applicable to
Common
Stockholders, end
of period ($ x
1,000)
|
|
|
|
|
|
|
VMTP Shares and
Preferred Stock
Outstanding, end
of period ($ x
1,000)
|
|
|
|
|
|
|
Floating Rate Notes
Outstanding, end
of period ($ x
1,000)
|
|
|
|
|
|
|
|
The ratios based on total average net assets including dividends to Preferred Stockholders
are as
follows: total expense ratio of 2.13%, a net expense ratio of 2.13%, an interest expense
related to floating
rate notes issued ratio of 1.20% and a net investment income of 3.29%.
|
|
The ratios based on total average net assets including dividends to Preferred Stockholders
are as
follows: total expense ratio of 1.26%, a net expense ratio of 1.26%, an interest expense
related to floating
rate notes issued ratio of .36% and a net investment income of 3.66%.
|
|
The ratios based on total average net assets including dividends to Preferred Stockholders
are as
follows: total expense ratio of 1.08%, a net expense ratio of 1.08%, an interest expense
related to floating
rate notes issued ratio of .22% and a net investment income of 3.78%.
|
|
The ratios based on total average net assets including dividends to Preferred Stockholders
are as
follows: total expense ratio of 1.44%, a net expense ratio of 1.44%, an interest expense
related to floating
rate notes issued ratio of .58% and a net investment income of 4.12%.
|
|
Based on average common shares outstanding.
|
|
Amount represents less than $.01 per share.
|
|
|
|
|
|
Amount inclusive of VMTP Shares amortization of offering cost.
|
|
Amount inclusive of reductions in fees due to earnings credits.
|
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
BNY Mellon Municipal Income, Inc. (the “fund”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), is a diversified closed-end management investment company. The fund’s investment objective is to maximize current income exempt from federal income tax to the extent consistent with the preservation
of capital. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY”), serves as the fund’s investment adviser. Insight North America LLC (the “Sub-Adviser”), an indirect wholly-owned subsidiary of BNY and an affiliate of the Adviser, serves as the fund’s sub-adviser. The fund’s common stock (“Common Stock”) trades on the New York Stock Exchange (the “NYSE”) under the ticker symbol DMF.
The fund has outstanding 1,209 shares of Variable Rate MuniFund Term Preferred Shares
(“VMTP Shares”). The fund is subject to certain restrictions relating to the VMTP Shares. Failure to comply with these restrictions could preclude the fund from declaring any
distributions to shareholders of the fund’s Common Stock (“Common Stockholders”) or repurchasing shares of Common Stock and/or could trigger the mandatory redemption
of VMTP Shares at their liquidation value (i.e., $25,000 per share). Thus, redemptions
of VMTP Shares may be deemed to be outside of the control of the fund.
The VMTP Shares have a mandatory redemption date of July 14, 2053, and are subject
to an initial early redemption date of July 13, 2026, subject to the option of the holders
to retain the VMTP Shares. VMTP Shares that are neither retained by the holder nor successfully remarketed by the early redemption date will be redeemed by the fund.
The holders of VMTP Shares, voting as a separate class, have the right to elect at
least two directors. The holders of VMTP Shares will vote as a separate class on certain other
matters, as required by law. The fund’s Board of Directors (the “Board”) has designated Nathan Leventhal and Benaree Pratt Wiley as directors to be elected by the holders
of VMTP Shares.
Dividends on VMTP Shares are normally declared daily and paid monthly. The Dividend
Rate on the VMTP Shares is, except as otherwise provided, equal to the rate per annum
that results from the sum of (1) the Index Rate plus (2) the Applicable Spread as
determined for the VMTP Shares on the Rate Determination Date immediately preceding
such Subsequent Rate Period plus (3) the Failed Remarketing Spread (all defined terms
as defined in the fund’s articles supplementary).
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 is an investment company and applies the accounting and reporting guidance of
the FASB ASC Topic 946 Financial Services-Investment Companies. 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 fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate
recognizing any loss related to these arrangements.
(a) 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:
The Board has designated the Adviser as the fund’s valuation designee to make all fair value determinations with respect to the fund’s portfolio investments, subject to the Board’s oversight and pursuant to Rule 2a-5 under the Act.
Investments in municipal securities are valued each business day by an independent
pricing service (the “Service”) approved by 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
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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). Municipal 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. The Service
is engaged under the general oversight of the Board. All of the preceding securities
are generally categorized within Level 2 of the fair value 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, 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 securities where observable inputs are limited, assumptions about market activity
and risk are used and such securities are generally categorized within Level 3 of the
fair value hierarchy.
The following is a summary of the inputs used as of March 31, 2025 in valuing the fund’s investments:
|
Level 1 -
Unadjusted
Quoted Prices
|
Level 2- Other
Significant
Observable Inputs
|
Level 3-
Significant
Unobservable
Inputs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Statement of Investments for additional detailed categorizations, if any.
|
|
Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for financial
reporting purposes.
|
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are
recorded on the identified cost basis. Interest income, adjusted for accretion of discount and
amortization of premium on investments, is earned from settlement date and is 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.
(c) Market Risk: The value of the securities in which the fund invests may be affected by political, regulatory, economic and social developments, and developments that impact
specific economic sectors, industries or segments of the market. The value of a security
may also decline due to general market conditions that are not specifically related
to a particular company or industry, such as real or perceived adverse economic conditions,
changes in the general outlook for corporate earnings, changes in interest or currency
rates, changes to inflation, adverse changes to credit markets or adverse investor sentiment
generally.
The Additional Information section within the annual report dated September 30, 2024 provides more details about the fund’s principal risk factors.
(d) Dividends and distributions to Common Stockholders: Dividends and
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
distributions are recorded on the ex-dividend date. Dividends from net investment
income are normally declared and paid monthly. Dividends from net realized capital gains,
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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains.
Income and capital gain distributions are determined in accordance with income tax regulations,
which may differ from GAAP.
Common Stockholders will have their distributions reinvested in additional shares
of the fund, unless such Common Stockholders elect to receive cash, at the lower of the market
price or net asset value per share (but not less than 95% of the market price). 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, Computershare Inc., the transfer agent for the fund’s Common Stock, will buy fund shares in the open market and reinvest those shares accordingly.
On March 28, 2025, the Board declared a cash dividend of $.019 per share from undistributed net investment income, payable on April 30, 2025 to Common Stockholders of record as of the close of business on April 14, 2025. The ex-dividend
date was April 14, 2025.
(e) Dividends to holders of VMTP Shares: The Dividend Rate on the VMTP Shares is, except as otherwise provided, equal to the rate per annum that results from the sum
of (1) the Index Rate plus (2) the Applicable Spread as determined for the VMTP Shares
on the Rate Determination Date immediately preceding such Subsequent Rate Period plus
(3) the Failed Remarketing Spread. The Applicable Rate of the VMTP Shares was equal
to the sum of .95% per annum plus the Securities Industry and Financial Markets Association Municipal Swap Index rate of 2.87% on March 31, 2025. The dividend rate
as of March 31, 2025 for the VMTP Shares was 3.82% (all terms as defined in the fund’s articles supplementary).
(f) 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 taxable income and
net realized capital gain sufficient to relieve it from substantially all federal income
and excise taxes.
As of and during the period ended March 31, 2025, the fund did not have any liabilities
for any uncertain tax positions. The fund recognizes interest and penalties, if any,
related to uncertain tax positions as income tax expense in the Statement of Operations. During
the period ended March 31, 2025, the fund did not incur any interest or penalties.
Each tax year in the three-year period ended September 30, 2024 remains subject to
examination by the Internal Revenue Service and state taxing authorities.
The fund is permitted to carry forward capital losses for an unlimited period. Furthermore, capital loss carryovers retain their character as either short-term or
long-term capital losses.
The fund has an unused capital loss carryover of $26,223,695 available for federal
income tax purposes to be applied against future net realized capital gains, if any, realized
subsequent to September 30, 2024. The fund has $10,322,932 of short-term capital losses
and $15,900,763 of long-term capital losses which can be carried forward for an unlimited
period.
The tax character of distributions paid to Common Stockholders during the fiscal year
ended September 30, 2024 were as follows: tax-exempt income $4,068,424. The tax character of current year distributions will be determined at the end of the current
fiscal year.
(g) VMTP Shares: The fund’s VMTP Shares aggregate liquidation preference is shown as a liability since they have a stated mandatory redemption date of July 14, 2053. Dividends
paid on VMTP Shares are treated as interest expense and recorded on the accrual basis.
Costs directly related to the issuance of the VMTP Shares are considered debt issuance
costs which have been deferred and are being amortized into expense over 36 months
from July 12, 2023. See Note 5 - Subsequent Event for additional information.
During the period ended March 31, 2025, total interest expenses and amortized offering
costs with respect to VMTP Shares amounted to $632,019 inclusive of $584,386 of interest expense and $47,633 amortized deferred cost fees. These fees are included
in VMTP Shares interest expense and amortization of offering costs in the Statement of
Operations.
The average amount of borrowings outstanding for the VMTP Shares during the period
ended March 31, 2025 was approximately $30,225,000, with a related weighted average
annualized interest rate of 3.88%.
(h) Operating segment reporting: In this reporting period, the fund adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements
to Reportable Segment Disclosures (“ASU 2023-07”). Adoption of the new standard impacted financial statement disclosures only and did not affect the fund’s financial position or the results of its operations. The ASU 2023-07 is effective for public
entities for fiscal years beginning after December 15, 2023, and requires retrospective application
for all prior periods presented within the financial statements.
Since its commencement, the fund operates and is managed as a single reportable segment
deriving returns in the form of dividends, interest and/or gains from the investments
made in pursuit of its single stated investment objective as outlined in the fund’s prospectus. The accounting policies of the fund are consistent with those described in these Notes
to Financial Statements. The chief operating decision maker (“CODM”) is represented by
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
BNY Investments, the management of the Adviser, comprising Senior Management and Directors. The CODM considers net increase in net assets resulting from operations
in deciding whether to purchase additional investments or to make distributions to fund shareholders. Detailed financial information for the fund is disclosed within
these financial statements with total assets and liabilities disclosed on the Statement
of Assets and Liabilities, investments held on the Statement of Investments, results of operations
and significant segment expenses on the Statement of Operations and other information
about the fund’s performance, including total return, portfolio turnover and ratios within the Financial Highlights.
NOTE 2—Management Fee, Sub-Advisory Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement (the “Agreement”) with the Adviser, the management fee is computed at the annual rate of .70% of the value of the fund’s average weekly net assets (including net assets representing VMTP Shares outstanding) and
is payable monthly. The Agreement provides that if in any full fiscal year the aggregate
expenses of the fund (excluding 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 Adviser, or the Adviser
will bear, the amount of such excess to the extent required by law. During the period
ended March 31, 2025, there was no expense reimbursement pursuant to the Agreement.
Pursuant to a sub-investment advisory agreement between the Adviser and the Sub-Adviser, the Adviser pays the Sub-Adviser a monthly fee at an annual rate of .336% of the
value of the fund’s average weekly net assets (including net assets representing VMTP Shares outstanding).
(b) The fund has an arrangement with The Bank of New York Mellon (the “Custodian”), a subsidiary of BNY and an affiliate of the Adviser, whereby the fund may receive
earnings credits when positive cash balances are maintained, which are used to offset Custodian
fees. For financial reporting purposes, the fund includes custody net earning credits
as an expense offset in the Statement of Operations.
The fund compensates the Custodian, under a custody agreement, for providing custodial
services for the fund. These fees are determined based on net assets, geographic region
and transaction activity. During the period ended March 31, 2025, the fund was charged
$2,151 pursuant to the custody agreement. These fees were partially offset by earnings
credits of $1,549.
The fund compensates The Bank of New York Mellon under a Redemption and Paying Agent Agreement for providing certain transfer agency and payment services with respect
to the VMTP Shares. During the period ended March 31, 2025, the fund was charged
$5,000 for the services provided by the Redemption and Paying Agent (the “Redemption and Payment Agent”).
During the period ended March 31, 2025, the fund was charged $8,981 for services performed by the fund’s Chief Compliance Officer and his staff. These fees are included in Chief Compliance Officer fees in the Statement of Operations.
The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: Management fee of $110,163, Custodian
fees of $1,675, Redemption and Paying Agent fees of $2,500 and Chief Compliance Officer fees of $5,022.
During the period ended March 31, 2025, the fund received $344 related to short-swing
profits pursuant to Section 16(b) under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). This amount is included in interest income in the Statement of Operations.
(c) Each board member of the fund also serves as a board member of other funds in the
BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 3—Securities Transactions:
The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities and secured borrowings of inverse floater
securities, during the period ended March 31, 2025, amounted to $11,352,742 and $40,120,868, respectively.
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 Trust 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.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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
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.
The average amount of borrowings outstanding under the inverse floater structure during
the period ended March 31, 2025, was approximately $53,035,440, with a related weighted average annualized interest rate of 3.35%.
At March 31, 2025, accumulated net unrealized depreciation on investments was $506,542, consisting of $3,570,191 gross unrealized appreciation and $4,076,733 gross
unrealized depreciation.
At March 31, 2025, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement
of Investments).
NOTE 4—Plan of Reorganization:
At a meeting on March 7, 2025, the Board of the fund, a registered closed-end fund,
approved the reorganization of the fund with and into BNY Mellon AMT-Free Municipal
Bond Fund (the “Acquiring Fund”), a series of BNY Mellon Municipal Funds, Inc., a registered open-end fund. The proposed reorganization of the fund is subject to certain
conditions, including approval by the fund’s Common Stockholders at a special meeting of Common Stockholders scheduled to be held on or about June 2, 2025. The fund’s shares of common stock are listed on the NYSE under the symbol “DMF”. If fund Common Stockholders approve the reorganization, the fund’s shares of common stock would stop trading on, and would be delisted from, the NYSE on or about June 18, 2025, and the
reorganization of the fund would occur on or about June 20, 2025. Common Stockholders of record as of the close of business on April 9, 2025 will be entitled
to receive notice of and to vote at the special meeting of Common Stockholders.
NOTE 5—Subsequent Event:
On April 2, 2025, the fund redeemed all 1,209 issued and outstanding shares of the fund’s VMTP Shares of which the amortization of offering costs was fully amortized. The redemption price of the VMTP shares was the $25,000 liquidation preference per share,
plus an additional amount representing the final accumulated dividend amount owed.
The fund expected to finance the redemption with the proceeds from sales of portfolio
securities.
OFFICERS AND DIRECTORS
BNY Mellon Municipal Income, Inc.
240 Greenwich Street
New York, NY 10286
Directors
Joseph S. DiMartino, Chairman
† Elected by VMTP Shares Holders
†† Advisory Board Member
Vice President and Secretary
Vice Presidents and Assistant Secretaries
Vice Presidents
BNY Mellon Investment Adviser, Inc.
Insight North America LLC
The Bank of New York Mellon
Stradley Ronon Stevens & Young, LLP
Transfer Agent, Registrar and Dividend Disbursing Agent
Computershare Inc. (Common Stock)
The Bank of New York Mellon (VMTP Shares)
Initial SEC Effective Date
The fund’s net asset value per share appears in the following publications: Barron’s, Closed-End Bond Funds section under the heading “Municipal Bond Funds” every Monday; The Wall Street Journal, Mutual Funds section under the heading “Closed-End Bond Funds” every Monday.
Notice is hereby given in accordance with Section 23(c) of the Act that the fund may
purchase shares of its beneficial interest in the open market when it can do so at prices below the then
current net asset value per share.
BNY Mellon Municipal Income, Inc.
240 Greenwich Street
New York, NY 10286
BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, NY 10286
Insight North America LLC
200 Park Avenue, 7th Floor
New York, NY 10166
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Transfer Agent & Registrar (Common Stock)
Computershare Inc.
480 Washington Boulevard
Jersey City, NJ 07310
Dividend Disbursing Agent (Common Stock)
Computershare Inc.
P.O. Box 30170
College Station, TX 77842
Ticker Symbol: DMF
For more information about the fund, visit https://bny.com/investments/closed-end funds. Here you will find the fund’s most recently available quarterly fact sheets and other information about the fund. The information posted on the fund’s website is subject to change without notice.
The fund files its complete schedule of portfolio holdings with the SEC for the first
and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.
A description of the policies and procedures that the fund uses to determine how to
vote proxies relating to portfolio securities and information regarding how the fund voted
these proxies for the most recent six-month period ended March 31 is available at www.bny.com/investments and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.
Not applicable.
| Item 3. | Audit Committee Financial Expert. |
Not applicable.
| Item 4. | Principal Accountant Fees and Services. |
Not applicable.
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Not applicable.
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
Not applicable.
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
Not applicable.
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Not applicable.
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Not applicable.
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
Not applicable.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
| Item 13. | Portfolio Managers for Closed-End Management Investment Companies. |
Not applicable.
| Item 14. | Purchases of Equity Securities By Closed-End Management Investment Companies and Affiliated Purchasers.
|
Not applicable.
| Item 15. | Submission of Matters to a Vote of Security Holders. |
There have been no materials changes to the procedures
applicable to Item 15.
| Item 16. | 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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal
control over financial reporting. |
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
| Item 18. | Recovery of Erroneously Awarded Compensation. |
Not applicable.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(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.
BNY Mellon Municipal Income, Inc.
By: /s/ David J. DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: May 20, 2025
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/ David J. DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: May 20, 2025
By: /s/ James Windels
James Windels
Treasurer (Principal Financial Officer)
Date: May 20, 2025
EXHIBIT INDEX
(a)(2) Certifications of principal executive
and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
(b) Certification
of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)
[EX-99.CERT]—Exhibit (a)(2)
SECTION 302 CERTIFICATION
I, David J. DiPetrillo, certify that:
1.
I have reviewed this report on Form N-CSR of BNY Mellon Municipal Income, Inc.;
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements,
and other financial information included in this report, fairly present in all material respects the financial condition, results of operations,
changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant
as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s)
and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment
Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
for the registrant and have:
(a) Designed such disclosure controls and
procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b) Designed such internal control over
financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
(c) Evaluated the effectiveness of the
registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change
in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s)
and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing
the equivalent functions):
(a) All significant deficiencies and material
weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material,
that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
By: /s/ David J.
DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: May 20, 2025
SECTION 302 CERTIFICATION
I, James Windels, certify that:
1.
I have reviewed this report on Form N-CSR of BNY Mellon Municipal Income,
Inc.;
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements,
and other financial information included in this report, fairly present in all material respects the financial condition, results of operations,
changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant
as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s)
and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment
Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
for the registrant and have:
(a) Designed such disclosure controls and
procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b) Designed such internal control over
financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
(c) Evaluated the effectiveness of the
registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change
in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s)
and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing
the equivalent functions):
(a) All significant deficiencies and material
weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material,
that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
By: /s/ James Windels
James Windels
Treasurer (Principal Financial Officer)
Date: May 20, 2025
[EX-99.906CERT]
Exhibit (b)
SECTION 906 CERTIFICATIONS
In connection with this report on Form
N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned
hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) the
Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and
(2) the
information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the
Registrant.
By: /s/ David J.
DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: May 20, 2025
By: /s/ James Windels
James Windels
Treasurer (Principal Financial Officer)
Date: May 20, 2025
This certificate is furnished pursuant to the requirements of Form N-CSR and
shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability
of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities
Exchange Act of 1934.
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