N-Q 1 d19152nq.htm

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-5976

Seligman Select Municipal Fund, Inc.
(Exact name of Registrant as specified in charter)

100 Park Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)

Lawrence P. Vogel
100 Park Avenue
New York, New York 10017
(Name and address of agent for service)

Registrant’s telephone number, including area code: 212) 850-1864


Date of fiscal year end: 12/31

Date of reporting period: 3/31/06

ITEM 1. SCHEDULE OF INVESTMENTS.

 
Schedule of Investments (unaudited) March 31, 2006

State#
Face
Amount
   
Municipal Bonds
   
Ratings†
   
Value
Alabama — 10.3%
        $ 10,000,00        
Jefferson County, AL Sewer Rev. (Capital Improvement Warrants), 5.125% due 2/1/2039Æ
           Aaa            $   10,470,400   
 
           5,000,000        
McIntosh, AL Industrial Development Board Environmental Facilities Rev. (CIBA Specialty Chemicals), 5.375% due 6/1/2028
           A3               5,088,150   
Alaska — 5.1%
           4,145,000        
Alaska Energy Authority Power Rev. (Bradley Lake Hydroelectric Project), 6% due 7/1/2020
           Aaa               4,841,277   
 
           2,395,000        
Alaska Energy Authority Power Rev. (Bradley Lake Hydroelectric Project), 6% due 7/1/2021
           Aaa               2,808,473   
California — 15.6%
           9,130,000        
California Pollution Control Financing Authority Sewage and Solid Waste Disposal Facilities Rev. (Anheuser-Busch Project), 5.75% due 12/1/2030*
           A1               9,324,834   
 
           4,100,000        
Foothill/Eastern Transportation Corridor Agency,
CA Toll Road Rev., 5.75% due 1/15/2040
           Baa3               4,212,873   
 
           4,000,000        
San Diego, CA Public Facilities Financing Authority Sewer Rev. Series 1999-A, 5% due 5/15/2029
           Aaa               4,099,320   
 
           5,700,000        
San Diego, CA Public Facilities Financing Authority Sewer Rev. Series 1999-B, 5% due 5/15/2029
           Aaa               5,841,531   
Colorado — 3.8%
           5,590,000        
Colorado Regional Transportation District Sales Tax Rev., 5% due 11/1/2024
           Aaa               5,822,376   
Florida — 5.1%
           2,440,000        
Orange County, FL School Board (Certificates of Participation), 5% due 8/1/2025
           Aaa               2,539,552   
 
           5,000,000        
Reedy Creek, FL Improvement District GOs,
5% due 6/1/2025
           Aaa               5,231,700   
Illinois — 6.7%
           4,700,000        
Chicago, IL GOs, 5.50% due 1/1/2040Æ
           Aaa               5,069,796   
 
           2,800,000        
Chicago, IL GOs, 5.50% due 1/1/2040
           Aaa               2,988,720   
 
           2,000,000        
Illinois State Build Illinois Bonds (Sales Tax Rev.),
5% due 6/15/2028
           Aaa               2,083,740   
Louisiana — 6.1%
           5,855,000        
Louisiana Public Facilities Authority Hospital Rev. (Southern Baptist Hospitals, Inc. Project),
8% due 5/15/2012††
           AAA†               6,564,685   
 
           2,500,000        
Shreveport, LA GOs, 5% due 5/1/2018
           Aaa               2,622,675   
Massachusetts — 12.4%
           2,500,000        
Commonwealth of Massachusetts GOs, 5% due 3/1/2024
           Aaa               2,611,425   
 
           4,000,000        
Massachusetts Development Finance Agency Rev. (WGBH Educational Foundation), 5.75% due 1/1/2042
           Aaa               4,819,080   
 
           1,750,000        
Massachusetts Port Authority Rev., 5% due 7/1/2025
           Aaa               1,823,570   
 
           6,000,000        
Massachusetts State School Building Authority Dedicated Sales Tax Rev., 5% due 8/15/2023
           Aaa               6,297,240   
 
           3,000,000        
Massachusetts State Water Resources Authority Rev., 5.25% due 8/1/2024
           Aaa               3,261,810   
Michigan — 4.8%
           5,000,000        
Detroit, MI Sewage Disposal System Rev., 5% due 7/1/2030
           Aaa               5,190,950   
 
           2,000,000        
Kalamazoo, MI Hospital Finance Authority Rev. (Bronson Methodist Hospital), 5.50% due 5/15/2028Æ
           Aaa               2,092,500   
Minnesota — 1.8%
           2,500,000        
Minnesota Agricultural and Economic Development Board Rev. (The Evangelical Lutheran Good Samaritan Society Project), 6.625% due 8/1/2025
           A3               2,726,350   
 
_______________
See footnotes on page 6.

4


 
Schedule of Investments (unaudited) March 31, 2006

State#
Face
Amount
   
Municipal Bonds
   
Ratings†
   
Value
Missouri — 2.1%
        $ 1,550,000        
Metropolitan St. Louis, MO Sewer District Wastewater System Rev., 5% due 5/1/2024
           Aaa            $   1,620,137   
 
           1,620,000        
Missouri State Housing Development Commission Single Family Mortgage Rev. (Homeownership Loan Program), 5.5% due 3/1/2033*
           AAA†               1,631,939   
New Jersey — 5.5%
           8,000,000        
New Jersey Economic Development Authority Water Facilities Rev. (New Jersey American Water Co., Inc.), 5.375% due 5/l/2032*
           Aaa               8,326,800   
New York — 16.8%
           5,000,000        
Long Island, NY Power Authority Electric System General Rev., 5.25% due 12/1/2020
           Aaa               5,430,500   
 
           5,000,000        
Metropolitan Transportation Authority, NY (Transportation Rev.), 5% due 11/15/2027
           Aaa               5,229,050   
 
           6,000,000        
New York City, NY GOs, 5% due 8/1/2017
           Aaa               6,364,260   
 
           8,000,000        
New York City, NY Municipal Water Finance Authority Water & Sewer System Rev., 5% due 6/15/2027
           Aaa               8,353,440   
New York and New Jersey — 4.5%
           6,500,000        
Port Authority of New York and New Jersey Rev. (JFK International Air Terminal LLC Project),
5.75% due 12/1/2022*
           Aaa               6,820,320   
Ohio — 2.9%
           105,000        
Cleveland, OH Waterworks Improvement First Mortgage Rev., 5.75% due 1/1/2021
           Aaa               107,270   
 
           3,890,000        
Ohio Water Development Authority Rev. (Drinking Water Assistance Fund), 5.25% due 12/1/2021
           Aaa               4,312,571   
Pennsylvania — 2.9%
           3,000,000        
Delaware County, PA Industrial Development Authority Water Facilities Rev. (Philadelphia Suburban Water), 5.35% due 10/1/2031*
           Aaa               3,127,410   
 
           1,250,000        
Pennsylvania State University Rev., 5% due 9/1/2024
           Aa2               1,311,200   
South Carolina — 8.7%
           2,500,000        
Columbia SC, Waterworks and Sewer System Rev., 5% due 2/1/2026
           Aaa               2,617,975   
 
           5,000,000        
South Carolina State Ports Authority Rev.,
5.3% due 7/1/2026*
           Aaa               5,153,400   
 
           5,000,000        
South Carolina State Public Service Authority Rev., 5.25% due 1/1/2021
           Aaa               5,403,701   
Texas — 13.4%
           5,000,000        
Dallas-Fort Worth, TX International Airports Rev., 5.75% due 11/1/2030*
           Aaa               5,275,550   
 
           3,000,000        
Houston, TX Airport System Rev., 5.625% due 7/1/2030*
           Aaa               3,162,210   
 
           4,000,000        
Houston, TX Higher Education Finance Corporation Rev. (Rice University Project), 5.375% due 11/15/2029Æ
           Aaa               4,260,040   
 
           7,500,000        
Matagorda County, TX Navigation District No. 1 Pollution Control Rev. (Central Power and Light Co. Project), 6.125% due 5/1/2030*
           Aaa               7,664,175   
Washington — 6.8%
           4,795,000        
Chelan County, WA Public Utility District No. 1 Rev. (Chelan Hydro Consolidated System), 6.25% due 7/1/2017*
           Aaa               5,029,763   
 
           5,000,000        
Chelan County, WA Public Utility District No. 1 Rev. (Chelan Hydro Consolidated System), 6.35% due 7/1/2028*
           Aaa               5,254,350   
Total Municipal Bonds — 135.3%
     204,889,088   
 
_______________
See footnotes on page 6.
                                                       
 

5


 
Schedule of Investments (unaudited) March 31, 2006

State#
Face
Amount
   
Short-Term Holdings
   
Ratings†
   
Value
Florida — 2.7%
        $ 4,100,000        
Sarasota County, FL Public Hospital Board Rev. (Sarasota Memorial Hospital Project), VRDN, due 7/1/2037
           VMIG 1            $   4,100,000   
Illinois — 5.6%
           8,500,000        
Illinois Health Facilities Authority Rev. (University of Chicago Hospital), VRDN, due 8/15/2026
           VMIG 1               8,500,000   
Massachusetts — 0.8%
           1,200,000        
Massachusetts Health & Educational Facilities Authority Rev. (Capital Assets Program), VRDN, due 1/1/2035
           VMIG 1               1,200,000   
North Carolina — 2.5%
           3,800,000        
Charlotte-Mecklenburg, Hospital Authority, NC, Health Care System Rev., VRDN, due 1/15/2026
           VMIG 1               3,800,000   
New York — 0.7%
           1,100,000        
New York City, NY Municipal Water Finance Authority, Water & Sewer System Rev., VRDN, due 6/15/2023
           VMIG 1               1,100,000   
Pennsylvania — 0.4%
           600,000        
Philadelphia, PA Authority for Industrial Development Revenue Bonds (Regional Performing Arts Center Project), VRDN, due 6/1/2025
           VMIG 1               600,000   
South Carolina — 2.4%
           3,620,000        
Spartanburg County, SC Health Services District, Inc. Hospital Rev., VRDN, due 4/15/2023
           A–1+ ‡              3,620,000   
Total Short-Term Holdings — 15.1%
     22,920,000   
Total Investments — 150.4%
     227,809,088   
Other Assets Less Liabilities — (0.9)%
     (1,328,275 )  
Preferred Shares Subject to Mandatory Redemption — (49.5)%
     (75,000,000 )  
Net Assets — 100.0%
  $ 151,480,813   
 
#
   The percentage shown for each state represents the total market value of bonds held of issuers in that state, measured as a percent of net assets, which does not include the net assets attributable to Preferred Stock of the Fund.
 
†
   Credit ratings are primarily those issued by Moody’s Investors Service, Inc. (“Moody’s”). Where Moody’s ratings have not been assigned, ratings from Standard & Poor’s Corporation (“S&P”) were used (indicated by the symbol ‡). Pre-refunded and escrowed-to-maturity securities that have been rerated as AAA by S&P but have not been rerated by Moody’s have been reported as AAA.
 
Æ
   Pre-refunded security. Such securities that will be paid off within one year are classified as short-term holdings.
 
††
   Escrowed-to-maturity security.
 
*
   Interest income earned from this security is subject to the federal alternative minimum tax.
 
VRDN —
  Variable rate demand notes purchased by the Fund may be put back to the designated remarketing agent for the issue at par on any day, for settlement within seven days, and accordingly, are treated as short-term holdings. These notes bear interest at a rate that resets daily or weekly. At March 31, 2006, the interest rates paid on these notes ranged from 3.13% to 3.18%.

The cost of investments for federal income tax purposes was $221,183,900. The tax basis gross unrealized appreciation and depreciation of portfolio securities were $7,500,490 and $875,302, respectively.

Security Valuation — Traded securities are valued at the last sales price on the primary market on which they are traded. Securities for which there is no last sales price are valued by independent pricing services based on bid prices, which consider such factors as transactions in bonds, quotations from bond dealers, market transactions in comparable securities, and various relationships between securities, or are valued by J. & W. Seligman & Co. Incorporated, the Fund’s investment manager, based on quotations provided by primary market makers in such securities. Securities for which market quotations are not readily available (or are otherwise no longer valid or reliable) are valued at fair value determined in accordance with procedures approved by the Board of Directors. This can occur in the event of, among other things, natural disasters, acts of terrorism, market disruptions, intra-day trading halts, and extreme market volatility. The determination of fair value involves subjective judgments. As a result, using fair value to price a security may result in a price materially different from the prices used by other mutual funds to determine net asset value or the price that may be realized upon the actual sale of the security. Short-term holdings maturing in more than 60 days are valued at market value. Short-term holdings maturing in 60 days or less are valued at amortized cost.

6

ITEM 2. CONTROLS AND PROCEDURES.
     a.       The registrant's principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-Q is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms and that such material information is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.
     
     b.   The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.
     (a)       Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) 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.

SELIGMAN SELECT MUNICIPAL FUND, INC.
By:   /S/ BRIAN T. ZINO
Brian T. Zino
President and Chief Executive Officer
         
Date:   May 25, 2006

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 in the capacities and on the dates indicated.

By:   /S/ BRIAN T. ZINO
Brian T. Zino
President and Chief Executive Officer
         
Date:   May 25, 2006

By:   /S/ LAWRENCE P. VOGEL
Lawrence P. Vogel
Vice President, Treasurer and Chief Financial Officer
         
Date:   May 25, 2006

SELIGMAN SELECT MUNICIPAL FUND, INC.

EXHIBIT INDEX

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