N-Q 1 d65875dnq.htm BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST

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 811-10331

Name of Fund: BlackRock California Municipal Income Trust (BFZ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock California

            Municipal Income Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2016

Date of reporting period: 10/31/2015

Item 1 – Schedule of Investments

Schedule of Investments October 31, 2015 (Unaudited)

   

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

California — 93.8%

                 

Corporate — 0.7%

  

  

City of Chula Vista California, Refunding RB, San Diego Gas & Electric:

     

Series A, 5.88%, 2/15/34

    $ 685      $ 784,277   

Series D, 5.88%, 1/01/34

      2,500        2,862,325   
    

 

 

  
               3,646,602   

County/City/Special District/School District — 32.2%

  

Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30

      8,425        9,660,021   

California Pollution Control Financing Authority, Refunding RB, Weast Management Inc., Series B, 3.13%, 11/01/40 (a)(b)

      4,025        4,014,696   

Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/19 (c)

      3,000        3,476,400   

City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:

     

6.13%, 5/01/31

      500        595,195   

6.50%, 5/01/36

      1,210        1,467,101   

6.50%, 5/01/42

      2,225        2,677,387   

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35

      2,000        2,289,920   

County of Orange California Water District, COP, Refunding, 5.25%, 8/15/34

      2,000        2,285,480   

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A:

     

6.00%, 3/01/36

      2,880        3,470,774   

5.50%, 3/01/41

      5,270        6,156,888   

County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36

      20,000        21,786,000   

Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33

      2,500        2,813,125   

Grossmont California Healthcare District, GO, Election of 2006, Series B (c):

     

6.00%, 7/15/21

      3,235        4,065,327   

6.13%, 7/15/21

      2,000        2,527,060   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

County/City/Special District/School District (continued)

  

Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33

    $ 4,145      $ 4,842,065   

Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 2/01/19 (c)

      6,355        7,305,644   

Los Angeles California Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30

      5,065        5,702,633   

Modesto Irrigation District, COP, Capital Improvments, Series A, 5.75%, 10/01/29

      3,035        3,434,588   

Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33

      6,000        6,851,820   

Oakland Unified School District/Alameda County, GO, Series A, 5.00%, 8/01/40

      1,900        2,087,511   

Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39

      2,000        2,283,500   

Pittsburg Unified School District, GO, Election of 2006, Series B (AGM), 5.50%, 8/01/34

      2,000        2,226,040   

Sacramento Area Flood Control Agency, Special Assessment Bonds, Consolidated Capital Assessment District, 5.25%, 10/01/32

      4,865        5,687,477   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

      1,500        1,712,310   

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

      5,520        6,195,924   

San Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 6/01/32

      3,375        3,856,916   

San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41

      3,060        3,646,143   

Santa Ana Unified School District, GO, Election of 2008, Series A:

     

5.50%, 8/01/30

      6,525        7,281,313   

5.13%, 8/01/33

      10,000        11,009,200   
 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015    1

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

County/City/Special District/School District (continued)

  

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38

    $ 2,250      $ 2,577,938   

Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/19 (c)

      4,000        4,748,840   

Tustin California School District, GO, Election of 2008, Series B, 5.25%, 8/01/31

      3,445        4,040,744   

Union City Community Redevelopment Agency, Community Redevelopment Project , Series A, 5.00%, 10/01/36 (a)

      1,000        1,134,250   

West Contra Costa California Unified School District, GO, Series A:

     

Election of 2010 (AGM), 5.25%, 8/01/32

      4,945        5,838,413   

Election of 2012, 5.50%, 8/01/39

      2,500        2,880,775   
    

 

 

  
               162,629,418   

Education — 2.1%

  

California Educational Facilities Authority, Refunding RB, San Francisco University, 6.13%, 10/01/36

      6,280        7,655,571   

California Municipal Finance Authority, RB, Emerson College, 5.75%, 1/01/33

      2,500        2,873,850   
    

 

 

  
        10,529,421   

Health — 12.7%

  

ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B, 6.25%, 8/01/39

      4,975        5,778,662   

California Health Facilities Financing Authority, RB:

     

Adventist Health System West, Series A, 5.75%, 9/01/39

      6,710        7,658,458   

Children’s Hospital, Series A, 5.25%, 11/01/41

      8,500        9,474,270   

St. Joseph Health System, Series A, 5.75%, 7/01/39

      375        426,930   

Sutter Health, Series A, 5.25%, 11/15/46

      5,195        5,376,773   

Sutter Health, Series B, 6.00%, 8/15/42

      6,015        7,108,948   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Health (continued)

  

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A:

   

6.00%, 7/01/34

    $ 4,505      $ 5,161,739   

6.00%, 7/01/39

      5,550        6,335,713   

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series B, 5.25%, 3/01/45

      2,000        2,026,160   

California Statewide Communities Development Authority, Refunding RB:

     

Catholic Healthcare West, Series B, 5.50%, 7/01/30

      2,900        3,094,474   

Catholic Healthcare West, Series E, 5.50%, 7/01/31

      5,065        5,404,659   

Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41

      4,000        4,420,800   

Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38

      1,625        1,920,523   
    

 

 

  
        64,188,109   

Housing — 0.5%

  

Orange County Community Facilities District, Special Tax Bonds, Series A, 5.25%, 8/15/45

      2,500        2,725,575   

State — 10.7%

  

State of California, GO, Refunding:

   

4.00%, 12/01/40

      2,750        2,806,705   

AMT, 4.00%, 12/01/32

      3,975        3,977,902   

State of California, GO, Various Purposes:

   

6.00%, 3/01/33

      2,000        2,396,900   

6.00%, 4/01/38

      15,875        18,484,056   

State of California Public Works Board, LRB:

   

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

      9,000        10,637,460   

Various Capital Projects, Series I, 5.50%, 11/01/33

      4,940        5,953,194   

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

      5,025        6,045,929   
 

 

                
2    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

State (continued)

     

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33

    $ 3,335      $ 3,895,981   
    

 

 

  
               54,198,127   

Tobacco — 0.7%

     

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior, Series A-1,
5.75%, 6/01/47

      4,000        3,664,120   

Transportation — 11.5%

     

City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39

      6,750        7,815,420   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A:

     

5.00%, 5/15/34

      6,650        7,490,294   

5.00%, 5/15/40

      4,760        5,383,560   

City of San Jose California, ARB, AMT, Series A (AMBAC), 5.00%, 3/01/37

      4,000        4,163,320   

City of San Jose California, Refunding ARB, Series A-1, AMT:

     

5.75%, 3/01/34

      3,820        4,422,032   

6.25%, 3/01/34

      2,650        3,122,442   

County of Orange California, ARB, Series B,
5.75%, 7/01/34

      8,000        8,627,520   

County of Sacramento California, ARB:

     

PFC/Grant, Sub-Series D,
6.00%, 7/01/35

      3,000        3,350,670   

Senior Series B,
5.75%, 7/01/39

      1,850        2,053,667   

Senior Series B, AMT (AGM),
5.25%, 7/01/33

      2,055        2,230,250   

Los Angeles Harbor Department, RB, Series B,
5.25%, 8/01/34

      5,580        6,308,525   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Transportation (continued)

     

Port of Los Angeles California Harbor Department, Refunding RB, Series A, AMT, 5.00%, 8/01/44

    $ 2,795      $ 3,084,199   
    

 

 

  
               58,051,899   

Utilities — 22.7%

     

Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A,
5.38%, 10/01/36

      7,690        9,017,678   

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series D,
5.88%, 1/01/34

      6,555        7,505,016   

City of Los Angeles California Department of Water & Power, RB:

     

Power System, Sub-Series A-1,
5.25%, 7/01/38

      9,000        9,893,520   

Series A, 5.38%, 7/01/34

      3,250        3,635,093   

City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39

      4,000        4,580,080   

City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 6/01/39

      2,000        2,229,220   

City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36

      5,625        6,762,712   

City of San Francisco California Public Utilities Commission Water Revenue, RB:

     

Series A, 5.00%, 11/01/35

      10,625        11,991,481   

Sub-Series A, 5.00%, 11/01/37

      5,000        5,791,200   

County of Riverside California Public Financing Authority, RB, Capital Facility Project,
5.25%, 11/01/45

      8,990        10,382,012   

Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.25%, 9/01/31

      4,320        5,126,285   

Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41

      2,425        2,887,278   

East Bay California Municipal Utility District Water System Revenue, Refunding RB, Series A,
5.00%, 6/01/36

      6,745        7,739,280   
 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015    3

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Utilities (continued)

     

El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM),
5.25%, 3/01/39

    $ 10,000      $ 11,497,000   

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34

      11,020        12,491,060   

Vista Joint Powers Financing Authority, Refunding RB, Lease Revenue, 5.00%, 5/01/30

      2,500        2,875,075   
    

 

 

  
               114,403,990   
Total Municipal Bonds in California              474,037,261   
    

Multi-State — 0.5%

                 

Housing — 0.5%

  

  

Centerline Equity Issuer Trust (d)(e):

     

Series A-4-2, 6.00%, 5/15/19

      1,000        1,131,660   

Series B-3-2, 6.30%, 5/15/19

      1,000        1,140,680   
Total Municipal Bonds in Multi-State              2,272,340   
Total Municipal Bonds – 94.3%              476,309,601   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)		  

California — 68.3%

  

County/City/Special District/School District — 26.0%

  

California Health Facilities Financing Authority, RB, Sutter Health, Series A, 5.00%, 8/15/52

      9,695        10,595,742   

Los Angeles Community College District California, GO, Election of 2008, Series A:

     

Election of 2001 (AGM), 5.00%, 8/01/17 (c)

      8,000        8,629,040   

Series C, 5.25%, 8/01/39 (g)

      12,900        14,969,095   

Los Angeles Community College District California, GO, Refunding, , 6.00%, 8/01/19 (c)

      20,131        23,883,643   

Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34

      5,000        5,633,000   
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)		   

Par  

(000)

     Value  

California (continued)

                 

County/City/Special District/School District (continued)

  

Palomar California Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/44

    $ 15,140      $ 17,270,652   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

      10,484        11,968,394   

San Joaquin California Delta Community College District, GO, Election of 2004, Series C,
5.00%, 8/01/39

      14,505        16,400,871   

San Jose Unified School District Santa Clara County California, GO:

     

Election of 2002, Series D, 5.00%, 8/01/32

      14,625        16,051,641   

Series C, 4.00%, 8/01/39

      6,100        6,272,264   
    

 

 

  
               131,674,342   

Education — 18.1%

  

California Educational Facilities Authority, RB, University of Southern California, Series B,
5.25%, 10/01/39 (g)

      10,395        11,536,579   

Grossmont Union High School District, GO, Election of 2004, 5.00%, 8/01/33

      13,095        14,227,687   

University of California, RB:

     

Series AM, 5.25%, 5/15/44

      5,000        5,780,900   

Series O, 5.75%, 5/15/19 (c)

      12,300        14,355,740   

University of California, Refunding RB:

     

Series A, 5.00%, 11/01/43

      11,791        13,487,012   

Series AI, 5.00%, 5/15/38

      14,225        16,081,017   

Series I, 5.00%, 5/15/40

      14,065        16,070,184   
    

 

 

  
               91,539,119   

Health — 4.2%

  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A,
5.00%, 4/01/42

      18,960        20,960,659   

Utilities — 20.0%

  

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37

      15,998        17,054,424   
 

 

                
4    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)		   

Par  

(000)

     Value  

California (continued)

                 

Utilities (continued)

     

County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/17 (c)

    $ 14,700      $ 15,549,366   

County of Orange California Water District, COP, Refunding, 5.00%, 8/15/39

      10,480        11,813,161   

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33

      18,002        19,712,395   

Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37

      11,180        11,914,638   

San Diego County Water Authority Financing Corp., COP, Refunding, Series A:

      1,670        1,854,206   

5.00%, 5/01/18 (c)

     

5.00%, 5/01/33

      8,370        9,099,534   

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/39

      12,457        14,121,055   
    

 

 

  
               101,118,779   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 68.3%		              345,292,899   
Total Long-Term Investments
(Cost — $752,817,546) — 162.6%		              821,602,500   
Short-Term Securities      
Shares		     Value  

BIF California Municipal Money Fund, 0.00% (h)(i)

      2,624,506      $ 2,624,506   
Total Short-Term Securities
(Cost — $2,624,506) — 0.5%		              2,624,506   
Total Investments (Cost — $755,442,052*) — 163.1%        824,227,006   
Other Assets Less Liabilities — 2.5%        12,715,311   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (31.7)%

   

     (160,151,791 ) 
VMTP Shares, at Liquidation Value — (33.9)%        (171,300,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 505,490,526   
    

 

 

  

 

*   As of period end, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 595,686,385   
 

 

 

  

Gross unrealized appreciation

   $ 70,221,183   

Gross unrealized depreciation

     (1,809,244 ) 
 

 

 

  

Net unrealized appreciation

   $ 68,411,939   
 

 

 

  
 
Notes to Schedule of Investments

 

(a)   When-issued security.

 

(b)   Variable rate security. Rate shown is as of period end.

 

(c)   U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

(d)   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(e)   Represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

(f)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing.

 

(g)   All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust or in the event of a default on the security. In the case of a shortfall or default, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to August 1, 2018, is $14,013,480.

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015    5

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

 

(h)   During the period ended October 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at July 31,
2015		       

Net

Activity

        Shares Held
at October 31,
2015		        Income  

BIF California Municipal Money Fund

        6,380,903           (3,756,397 )         2,624,506           —   

 

(i)   Represents the current yield as of period end.

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
COP    Certificates of Participation
GO    General Obligation Bonds
LRB    Lease Revenue Bonds
M/F    Multi-Family
RB    Revenue Bonds

 

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

 

Contracts
Short		     Issue      Expiration      Notional
Value		      Unrealized
Appreciation		       
  (45 )    5-Year U.S. Treasury Note      December 2015      $5,389,805      $ 56,602     
  (37 )    10-Year U.S. Treasury Note      December 2015      $4,724,437        63,143     
  (16 )    Long U.S. Treasury Bond      December 2015      $2,503,000        43,716     
  (3 )    U.S. Ultra Bond      December 2015      $479,250        9,734       
  Total                     $ 173,195     
                

 

 

 

                
6    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Fair Value Hierarchy as of Period End

 

•  

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  •  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The 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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as level 3.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its annual report.

As of period end, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —         $ 821,602,500         —      $ 821,602,500   

Short-Term Securities

   $ 2,624,506           —         —        2,624,506   
 

 

 

  

Total

   $ 2,624,506         $ 821,602,500         —      $ 824,227,006   
 

 

 

  

1    See above Schedule of Investments for values in each sector.

       

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1             

Assets:

                 

Interest rate contracts

   $ 173,195           —         —      $ 173,195   

1    Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

       

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015    7

Schedule of Investments (concluded)

   

BlackRock California Municipal Income Trust (BFZ)

 

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1     Level 2     Level 3   Total  

Assets:

        

Cash pledged for financial futures contracts

   $ 158,000        —      —   $ 158,000   

Liabilities:

        

TOB Trust Certificates

     —      $ (160,128,682 )    —     (160,128,682 ) 

VMTP Shares

     —        (171,300,000 )    —     (171,300,000 ) 
 

 

 

  

Total

   $ 158,000      $ (331,428,682 )    —   $ (331,270,682 ) 
 

 

 

  

During the period ended October 31, 2015, there were no transfers between levels.

 

                
8    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2015   

Item 2 – Controls and Procedures

 

2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

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.

BlackRock California Municipal Income Trust

 

By:  

/s/ John M. Perlowski

  
  John M. Perlowski  
  Chief Executive Officer (principal executive officer) of BlackRock California Municipal Income Trust

Date: December 22, 2015

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/ John M. Perlowski

  
  John M. Perlowski  
  Chief Executive Officer (principal executive officer) of BlackRock California Municipal Income Trust

Date: December 22, 2015

 

By:  

/s/ Neal J. Andrews

  
  Neal J. Andrews  
  Chief Financial Officer (principal financial officer) of BlackRock California Municipal Income Trust

Date: December 22, 2015