N-Q 1 d386082dnq.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: 07/31/2017

Date of reporting period: 4/30/2017

Item 1 – Schedule of Investments

Schedule of Investments April 30, 2017 (Unaudited)

   

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

California — 91.5%

                 
County/City/Special District/School District — 23.6%  

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

    $ 8,425     $ 9,164,125  

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

     

6.13%, 5/01/31

      500       574,080  

6.50%, 5/01/36

      1,210       1,407,581  

6.50%, 5/01/42

      2,225       2,586,474  

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 2/01/19 (a)

      2,000       2,174,740  

County of Orange California Water District, COP, Refunding, 5.25%, 8/15/19 (a)

      2,000       2,191,820  

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

      8,990       10,338,770  

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

     

5.50%, 3/01/21

      5,270       6,091,804  

6.00%, 3/01/21

      2,880       3,382,877  

County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/18 (a)

      20,000       20,928,200  

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

      2,500       2,708,725  

Evergreen School District, GO, Election of 2014, 4.00%, 8/01/41

      5,365       5,497,623  

Foothill-De Anza Community College District, GO, Refunding, 4.00%, 8/01/40

      6,000       6,283,620  

Los Angeles Unified School District, GO, Election of 2008, Series A, 4.00%, 7/01/40

      8,500       8,726,440  

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

      3,035       3,277,921  

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

      1,315       1,436,335  

Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/19 (a)

      2,000       2,217,800  
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

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

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

    $ 3,375     $ 3,865,354  

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

      3,060       3,542,011  

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

      4,000       4,444,480  

Turlock Irrigation District, Refunding RB, 1st Priority, 5.00%, 1/01/33

      500       585,245  

Tustin California School District, GO, Election of 2008, Series B, 5.25%, 8/01/21 (a)

      3,445       4,006,328  

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

     

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

      4,960       5,618,539  

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

      2,500       2,922,425  
    

 

 

  
        113,973,317  
Education — 5.2%             

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

      6,280       7,384,087  

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

      2,500       2,801,175  

California State University, Refunding RB, Systemwide, Series A:

     

5.00%, 11/01/33

      4,640       5,447,777  

5.00%, 11/01/41

      3,225       3,687,046  

University of California, Refunding RB, Series AR, 5.00%, 5/15/41

      5,000       5,723,200  
    

 

 

  
        25,043,285  
Health — 11.3%             

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

      4,975       5,484,788  
 

 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    APRIL 30, 2017    1

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds    Par
(000)		     Value  

California (continued)

                 
Health (continued)             

California Health Facilities Financing Authority, RB:

     

Adventist Health System West, Series A, 5.75%, 9/01/19 (a)

    $ 6,710     $ 7,442,396  

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

      8,500       9,437,125  

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

      6,015       6,836,589  

California Health Facilities Financing Authority, Refunding RB, Series A (a):

     

Catholic Healthcare West, 6.00%, 7/01/19

      5,550       6,145,459  

Dignity Health, 6.00%, 7/01/19

      4,520       5,004,951  

California Statewide Communities Development Authority, Refunding RB:

     

Catholic Healthcare West, Series B, 5.50%, 7/01/17 (a)

      2,880       2,903,069  

Catholic Healthcare West, Series E, 5.50%, 7/01/17 (a)

      5,065       5,105,571  

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

      4,000       4,438,480  

Washington Township Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/38

      1,625       1,912,463  
    

 

 

  
        54,710,891  
State — 9.2%             

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

      2,500       2,737,125  

State of California, GO, Various Purposes, 6.00%, 4/01/38

      14,000       15,320,760  

State of California Public Works Board, LRB:

     

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

      9,000       9,892,710  

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

      4,940       5,880,576  

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/19 (a)

      5,025       5,684,330  
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

    $ 4,335     $ 5,085,475  
    

 

 

  
        44,600,976  
Tobacco — 6.1%             

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed:

     

Senior, Series A-1, 5.75%, 6/01/47

      24,640       24,696,426  

Senior, Series A-1, 5.75%, 6/01/47

      1,535       1,541,846  

Series A, 5.00%, 6/01/40

      3,020       3,350,207  
    

 

 

  
        29,588,479  
Transportation — 17.0%             

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

      6,750       7,402,455  

City & County of San Francisco California Airports Commission, Refunding RB, San Francisco International Airport, Series B, AMT, 5.00%, 5/01/46

      5,000       5,542,600  

City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport Series A, AMT, 5.00%, 5/15/42

      8,980       10,009,377  

City of Los Angeles California Department of Airports, RB, Series B, AMT, 5.00%, 5/15/34

      3,425       3,880,011  

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

     

5.00%, 5/15/34

      6,650       7,160,122  

5.00%, 5/15/40

      4,760       5,251,898  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC:

     

Series A-1, AMT 5.75%, 3/01/34

      3,875       4,392,041  

Series A-1, AMT 6.25%, 3/01/34

      2,650       3,083,116  

Series B, 5.00%, 3/01/35

      1,685       1,940,800  
 

 

 

                
2    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds    Par
(000)		     Value  

California (continued)

                 
Transportation (continued)             

County of Los Angeles Metropolitan Transportation Authority, Refunding RB, Series A, 5.00%, 7/01/39

    $ 1,275     $ 1,495,907  

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

      8,000       8,066,640  

County of Sacramento California, Refunding ARB, Senior Series A, 5.00%, 7/01/41

      12,500       13,970,375  

County of Sacramento California, ARB:

     

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

      3,000       3,163,290  

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

      1,850       1,945,534  

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

      4,135       4,537,666  
    

 

 

  
        81,841,832  
Utilities — 19.1%             

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

      7,690       8,673,551  

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

      6,555       7,134,396  

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

     

Series A, 5.00%, 7/01/46

      1,000       1,141,060  

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

      9,000       9,452,700  

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

     

Series A, 5.25%, 7/01/39

      4,000       4,528,160  

Water System, Series A, 5.00%, 7/01/46

      1,000       1,139,430  

Water System, Series B, 5.00%, 7/01/37

      1,680       1,933,512  

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

      2,000       2,148,220  
Municipal Bonds    Par
(000)		     Value  

California (continued)

                 
Utilities (continued)             

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

    $ 5,625     $ 6,584,681  

City of San Francisco California Public Utilities Commission Water Revenue, RB, Sub-Series A, 5.00%, 11/01/37

      5,000       5,672,400  

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

      4,320       4,982,645  

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

      2,425       2,804,197  

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

      5,745       6,358,451  

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

      10,000       11,475,200  

Los Angeles Department of Water, Refunding RB, Series B, 5.00%, 7/01/38

      2,000       2,300,160  

Los Angeles Department of Water & Power, RB, Series B:

     

5.00%, 7/01/37

      1,000       1,147,610  

5.00%, 7/01/45

      1,000       1,141,880  

Los Angeles Department of Water & Power System Revenue, RB, Series B, 5.00%, 7/01/38

      8,010       9,185,788  

Metropolitan Water District of Southern California, Refunding RB, Series A, 5.00%, 7/01/32

      2,500       2,963,200  

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/19 (a)

      1,250       1,357,588  
    

 

 

  
        92,124,829  
Total Municipal Bonds in California       441,883,609  
    

Multi-State — 0.5%

                 
Housing — 0.5%             

Centerline Equity Issuer Trust (b)(c):

     

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

      1,000       1,079,000  
 

 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    APRIL 30, 2017    3

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds    Par
(000)		     Value  

Multi-State (continued)

                 
Housing (continued)             

Centerline Equity Issuer Trust (b)(c) (continued):

     

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

    $ 1,000     $ 1,084,880  
Total Municipal Bonds in Multi-State       2,163,880  
    

Puerto Rico — 1.2%

                 
Tobacco — 1.2%             

Children’s Trust Fund, Refunding RB, Tobacco Settlement, Asset-Backed Bonds:

     

5.50%, 5/15/39

      2,910       2,914,365  

5.63%, 5/15/43

      2,765       2,766,576  
Total Municipal Bonds in Puerto Rico       5,680,941  
Total Municipal Bonds - 93.2%       449,728,430  
    
   
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)		             

California — 75.2%

                 
County/City/Special District/School District — 26.9%  

California Health Facilities Financing Authority, RB, Sutter Health, Series A, 5.00%, 11/15/41

      11,620       12,952,349  

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

     

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

      8,000       8,087,520  

Series C, 5.25%, 8/01/20 (e)

      12,902       14,590,113  

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

      20,131       22,368,108  

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

      5,000       5,393,750  

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

      15,140       17,162,099  

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/19 (a)

      10,484       11,469,212  

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

      14,505       16,283,267  
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)		    Par
(000)		     Value  

California (continued)

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

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

     

Election of 2002, Series D,
5.00%, 8/01/18 (a)

    $ 14,625     $ 15,391,901  

Series C, 4.00%, 8/01/39

      6,100       6,270,068  
    

 

 

  
               129,968,387  
Education — 17.3%  

Grossmont Union High School District, GO, Election of 2004, 5.00%, 8/01/18 (a)

      13,095       13,783,335  

University of California, RB:

     

5.75%, 5/15/34 (b)(f)

      12,303       13,478,123  

Series AM, 5.25%, 5/15/44

      5,000       5,792,300  

University of California, Refunding RB:

     

5.00%, 5/15/38

      4,250       4,886,353  

Series A, 5.00%, 11/01/43

      11,792       13,436,821  

Series AI, 5.00%, 5/15/38

      14,225       16,192,011  

Series I, 5.00%, 5/15/40

      14,065       15,965,855  
    

 

 

  
        83,534,798  
Health — 8.9%  

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

      9,695       10,486,956  

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

      18,960       20,701,855  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series L, 5.00%, 5/15/47

      10,290       11,578,926  
    

 

 

  
               42,767,737  
State — 3.7%  

State of California, GO, Refunding, Various Purposes, 5.00%, 9/01/35

      10,115       11,671,889  

State of California, GO, Refunding, 4.00%, 9/01/37

      6,090       6,301,140  
    

 

 

  
               17,973,029  
Transportation — 5.6%  

City of Los Angeles California Department of Airports, RB, Series D, AMT, 5.00%, 5/15/41

      18,632       20,604,594  
 

 

 

                
4    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

    Par
(000)		     Value  
California (continued)               
Transportation (continued)             

County of San Diego Regional Transportation Commission, Refunding RB, Series A, 5.00%, 4/01/48

    $ 5,740     $ 6,594,169  
    

 

 

  
               27,198,763  
Utilities — 12.8%  

County of Orange California Water District, COP, Refunding, 5.00%, 8/15/19 (a)

      10,480       11,425,820  

County of San Diego California Water Authority Financing Corp., COP, Refunding, Series A (AGM) (a):

     

5.00%, 5/01/18

      1,670       1,740,173  

5.00%, 5/01/18

      8,370       8,721,707  

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/18 (a)

      18,002       18,875,741  

Los Angeles Department of Water, Refunding RB, Series A, 5.00%, 7/01/46

      6,412       7,306,195  

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/19 (a)

      12,460       13,532,432  
    

 

 

  
               61,602,068  

Total Municipal Bonds Transferred to

Tender Option Bond Trusts - 75.2%

 

 

     363,044,782  

Total Long-Term Investments

(Cost — $774,514,170) — 168.4%

 

 

     812,773,212  
Short-Term Securities   

Shares

     Value  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.70% (g)(h)

      1,134,188     $ 1,134,415  
Total Short-Term Securities
(Cost — $1,134,415) — 0.2%		       1,134,415  

Total Investments

(Cost — $775,648,585*) — 168.6%

 

 

     813,907,627  

Other Assets Less Liabilities — 2.2%

 

     10,416,583  

Liability for TOB Trust Certificates, Including
Interest Expense and Fees Payable — (35.3)%

 

     (170,277,107 ) 

VMTP Shares, at Liquidation Value — (35.5)%

 

     (171,300,000 ) 
    

 

 

  

Net Assets Applicable to Common Shares — 100.0%

 

   $ 482,747,103  
    

 

 

  

 

*   As of April 30, 2017, gross unrealized appreciation and depreciation based on cost for U.S. federal income tax purposes were as follows:

 

Tax cost

    $ 603,956,243  
  

 

 

  

Gross unrealized appreciation

    $ 42,310,175  

Gross unrealized depreciation

      (2,221,823 ) 
  

 

 

  

Net unrealized appreciation

    $ 40,088,352  
  

 

 

  
 
Notes to Schedule of Investments

 

(a)   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.

 

(b)   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.

 

(c)   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.

 

(d)   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.

 

(e)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on August 1, 2018, is $6,798,086.

 

(f)   Variable rate security. Rate as of period end.

 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    APRIL 30, 2017    5

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

(g)   During the period ended April 30, 2017, 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,

2016

        Net
Activity		       

Shares Held

at April 30,

2017

        Value
at April 30,
2017		        Income        Net Realized
Gain1		        Change in
Unrealized
Appreciation
(Depreciation)		  
BlackRock Liquidity Funds, MuniCash, Institutional Class     3,771,908          (2,637,720 )         1,134,188        $ 1,134,415        $ 1,505        $ 2,449          —  

 

1    Includes net capital gain distributions.

 

(h)   Current yield as of period end.

For Trust compliance purposes, the Trust’s sector classifications refer to 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 adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

      

Contracts

Short

     Issue   Expiration  

Notional

Value

   Unrealized
Depreciation		  
  (67 )    5-Year U.S. Treasury Note   June 2017   $  7,933,219   $ (29,658 ) 
  (189 )    10-Year U.S. Treasury Note   June 2017   $23,760,844     (172,007 ) 
  (120 )    Long U.S. Treasury Bond   June 2017   $18,356,250     (189,076 ) 
  (28 )    Ultra U.S. Treasury Bond   June 2017   $  4,562,250     (56,334 ) 
 

Total

   $ (447,075 ) 
       

 

 

  

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
COP    Certificates of Participation
GO    General Obligation Bonds
LRB    Lease Revenue Bonds
RB    Revenue Bonds

 

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 the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

 

 

                
6    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    APRIL 30, 2017   

Schedule of Investments (concluded)

   

BlackRock California Municipal Income Trust (BFZ)

 

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. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by private companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

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 semi-annual report.

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 Investments 1

     —      $ 812,773,212        —      $ 812,773,212  

Short-Term Securities

   $ 1,134,415        —        —        1,134,415  
 

 

 

  

Total

   $ 1,134,415      $ 812,773,212        —      $ 813,907,627  
 

 

 

  
                                 
Derivative Financial Instruments 2           

Liabilities:

           

Interest rate contracts

   $ (447,075 )       —        —      $ (447,075 ) 

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

     

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

     

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  

Liabilities:

           

TOB Trust Certificates

     —      $ (169,863,032 )       —      $ (169,863,032 ) 

VMTP Shares at Liquidation Value

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

 

 

  

Total

     —      $ (341,163,032 )       —      $ (341,163,032 ) 
 

 

 

  

During the period ended April 30, 2017, there were no transfers between levels.

 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    APRIL 30, 2017    7

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: June 22, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

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

Date: June 22, 2017

 

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

Date: June 22, 2017