N-Q 1 fctftnq.txt FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-04356 --------- FRANKLIN CALIFORNIA TAX-FREE TRUST ---------------------------------- (Exact name of registrant as specified in charter) ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 ----------------------------------------------- (Address of principal executive offices) (Zip code) CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 ------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 650 312-2000 ------------ Date of fiscal year end: 6/30 ---- Date of reporting period: 3/31/06 ------- ITEM 1. SCHEDULE OF INVESTMENTS. Franklin California Tax-Free Trust QUARTERLY STATEMENTS OF INVESTMENTS MARCH 31, 2006 -------------------------------------------------------------------------------- CONTENTS Franklin California Insured Tax-Free Income Fund .......................... 3 Franklin California Intermediate-Term Tax-Free Income Fund ................ 15 Franklin California Limited-Term Tax-Free Income Fund ..................... 24 Franklin California Tax-Exempt Money Fund ................................. 26 Notes to Statements of Investments ........................................ 31 [LOGO](R) FRANKLIN TEMPLETON INVESTMENTS FRANKLIN o Templeton o Mutual Series Quarterly Statements of Investments | 1 This page intentionally left blank. Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.4% BONDS 98.4% CALIFORNIA 98.4% ABAG Finance Authority for Nonprofit Corps. COP, Lincoln Child Center Inc., California Mortgage Insured, 6.125%, 11/01/24 ................... $ 2,055,000 $ 2,174,704 Lytton Gardens Inc., California Mortgage Insured, 6.00%, 2/15/30 ........................... 3,500,000 3,670,835 Odd Fellows Home, California Mortgage Insured, 6.00%, 8/15/24 .............................. 5,000,000 5,196,550 ABAG Finance Authority for Nonprofit Corps. Revenue, Poway Retirement Housing Foundation Housing Inc. Project, Series A, California Mortgage Insured, 5.375%, 11/15/25 ................................................................. 5,145,000 5,385,117 Sansum-Santa Barbara, Refunding, Series A, California Mortgage Insured, 5.60%, 4/01/26 ................................................................................... 2,750,000 2,867,673 Acalanes UHSD, GO, Capital Appreciation, Election of 2002, Series A, FGIC Insured, zero cpn., 8/01/25 ........................................................................... 9,045,000 3,350,449 Alameda Corridor Transportation Authority Revenue, AMBAC Insured, zero cpn. to 10/01/12, 5.25% thereafter, 10/01/21 ................................................................. 64,660,000 49,413,819 5.45% thereafter, 10/01/25 ................................................................. 25,000,000 19,044,250 Alameda Power and Telecommunication Electric System Revenue COP, MBIA Insured, 5.75%, 7/01/30 ............................................................................... 3,305,000 3,599,343 Alhambra City Elementary School District GO, Capital Appreciation, Election of 1999, Series B, FGIC Insured, zero cpn., 9/01/27 ......... 3,035,000 1,101,826 Series A, FSA Insured, Pre-Refunded, 5.60%, 9/01/24 ........................................ 2,065,000 2,217,913 Antelope Valley UHSD, GO, Series A, MBIA Insured, 5.00%, 2/01/27 ............................... 5,000,000 5,204,800 Arcata Joint Powers Financing Authority Wastewater Revenue, FSA Insured, 5.80%, 12/01/22 ....... 1,080,000 1,140,858 Atascadero CDA, Tax Allocation, Redevelopment Project, XLCA Insured, 5.00%, 9/01/34 ............ 4,315,000 4,438,754 Baldwin Park RDA, Tax Allocation, Refunding, FSA Insured, 5.70%, 9/01/25 ....................... 4,000,000 4,399,000 Beaumont USD, COP, Refunding, Series A, FSA Insured, 5.80%, 1/01/21 ............................ 1,500,000 1,554,660 Brea Olinda USD, GO, Series A, FGIC Insured, 5.60%, 8/01/20 .................................... 1,000,000 1,074,580 Brentwood Infrastructure Financing Authority Infrastructure Revenue, Refunding, Series A, FSA Insured, 5.00%, 9/02/32 .................................................................. 3,800,000 3,902,486 Cabrillo Community College District GO, Series C, AMBAC Insured, Pre-Refunded, 5.375%, 5/01/26 ...................................................................................... 5,400,000 5,859,756 Calexico USD, CFD No. 1 Special Tax, AMBAC Insured, Pre-Refunded, 5.60%, 9/01/17 ............... 2,930,000 3,071,460 California Community College Financing Authority Lease Revenue, Grossmont Palomar and Shasta, Series A, MBIA Insured, 5.125%, 4/01/31 .............................................. 3,030,000 3,170,501 California Educational Facilities Authority Revenue, Pomona College, Series B, Pre-Refunded, 5.50%, 7/01/29 ..................................... 4,455,000 4,758,074 Stanford University, Refunding, Series M, 5.25%, 12/01/26 .................................. 6,450,000 6,686,392 Stanford University, Refunding, Series O, 5.125%, 1/01/31 .................................. 24,705,000 25,506,183 Stanford University, Series N, 5.35%, 6/01/27 .............................................. 21,250,000 21,993,112 Stanford University, Series N, 5.20%, 12/01/27 ............................................. 6,000,000 6,195,480 Student Loan Program, Series A, MBIA Insured, 6.00%, 3/01/16 ............................... 245,000 253,274 University of Southern California, Series C, Pre-Refunded, 5.125%, 10/01/28 ................ 3,845,000 3,974,230 California Health Facilities Financing Authority Revenue, Catholic Healthcare West, 2005, Refunding, Series A, 5.00%, 7/01/28 ........................ 12,995,000 12,570,583 Catholic Healthcare West, 2005, Series A, Pre-Refunded, 5.00%, 7/01/28 ..................... 2,005,000 2,086,784 Catholic Healthcare West, Refunding, ACA Insured, 5.00%, 7/01/28 ........................... 10,000,000 10,018,100 Catholic Healthcare West, Refunding, Series A, MBIA Insured, 6.00%, 7/01/17 ................ 3,970,000 4,071,434 Catholic Healthcare West, Series A, MBIA Insured, Pre-Refunded, 6.00%, 7/01/17 ............. 1,030,000 1,056,904 Community Health Facilities, Series A, California Mortgage Insured, 5.80%, 8/01/25 ......... 1,160,000 1,222,965
Quarterly Statements of Investments | 3 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) California Health Facilities Financing Authority Revenue, (continued) Kaiser Permanente, Series A, ETM, 5.40%, 5/01/28 ........................................... $15,400,000 $ 15,751,428 Kaiser Permanente, Series B, ETM, 5.00%, 10/01/18 .......................................... 5,000,000 5,172,250 Kaiser Permanente, Series B, ETM, 5.00%, 10/01/20 .......................................... 4,000,000 4,128,160 Marshall Hospital, Series A, California Mortgage Insured, 5.30%, 11/01/28 .................. 3,325,000 3,405,199 Northern California Presbyterian, 5.40%, 7/01/28 ........................................... 5,000,000 5,039,350 Orange County Health Facility, Series A, California Mortgage Insured, 6.20%, 11/01/24 ...... 3,435,000 3,638,970 Senior Living, Aldersly, Series A, California Mortgage Insured, 5.25%, 3/01/32 ............. 2,000,000 2,057,020 Sutter Health, Refunding, Series A, MBIA Insured, 5.00%, 8/15/19 ........................... 1,700,000 1,762,849 Sutter Health, Refunding, Series A, MBIA Insured, 5.00%, 8/15/38 ........................... 4,000,000 4,080,760 The Help Group, California Mortgage Insured, 5.40%, 8/01/22 ................................ 5,000,000 5,181,900 True to Life Children's Services, Series A, California Mortgage Insured, 5.625%, 9/01/25 ... 1,250,000 1,314,388 UCSF-Stanford Health Care, Series A, FSA Insured, 5.00%, 11/15/28 .......................... 9,530,000 9,754,241 California HFAR, Home Mortgage, Series N, AMBAC Insured, zero cpn. to 2/01/10, 6.30% thereafter, 8/01/31 .................................................................... 240,000 190,925 California Infrastructure and Economic Development Bank Revenue, Bay Area Toll Bridges, first lien, Series A, AMBAC Insured, 5.00%, 7/01/33 .......................................... 8,460,000 8,755,254 California PCFA, PCR, Southern California Edison Co., Series C, MBIA Insured, 5.55%, 9/01/31 ...................................................................................... 4,800,000 5,023,296 California Public School District Financing Authority Lease Revenue, Southern Kern USD, Series B, FSA Insured, ETM, 5.90%, 9/01/26 ................................................... 1,615,000 1,885,448 California State Department of Water Resources Central Valley Project Revenue, Water System, Series Q, MBIA Insured, 5.375%, 12/01/27 ........................................................................... 365,000 374,610 Pre-Refunded, 5.375%, 12/01/27 ............................................................. 635,000 652,558 California State Department of Water Resources Water Revenue, Central Valley Project, Refunding, Series AD, FSA Insured, 5.00%, 12/01/26 ................. 2,170,000 2,272,120 Series W, FSA Insured, 5.125%, 12/01/29 .................................................... 5,000,000 5,187,050 California State GO, 5.00%, 10/01/27 ............................................................................ 30,790,000 31,631,799 AMBAC Insured, 6.30%, 9/01/06 .............................................................. 9,000,000 9,104,400 FGIC Insured, 5.375%, 6/01/26 .............................................................. 1,610,000 1,630,399 FGIC Insured, Pre-Refunded, 5.375%, 6/01/26 ................................................ 3,390,000 3,434,307 FSA Insured, Pre-Refunded, 5.50%, 9/01/29 .................................................. 34,500,000 36,945,015 MBIA Insured, 6.00%, 8/01/16 ............................................................... 210,000 211,716 MBIA Insured, 6.00%, 10/01/21 .............................................................. 65,000 65,812 Refunding, 5.125%, 6/01/31 ................................................................. 25,000,000 25,745,000 Refunding, MBIA Insured, 5.00%, 8/01/29 .................................................... 20,250,000 20,794,522 California State Local Government Finance Authority Revenue, Marin Valley Mobile, Senior Series A, FSA Insured, 5.80%, 10/01/20 ....................................................... 4,275,000 4,496,958 California State Public Works Board Lease Revenue, Department of Mental Health Hospital, Series A, AMBAC Insured, 5.00%, 12/01/21 ................................................................................... 4,100,000 4,258,178 12/01/26 ................................................................................... 5,675,000 5,830,779 California State University Foundation Revenue, Monterey Bay, MBIA Insured, Pre-Refunded, 5.35%, 6/01/31 ............................................................................... 2,000,000 2,161,300
4 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) California State University of Los Angeles Auxiliary Services Inc. Revenue, MBIA Insured, Pre-Refunded, 5.125%, 6/01/33 ................................................................ $ 3,200,000 $ 3,424,512 California State University Revenue and Colleges Revenue, Systemwide, Series A, AMBAC Insured, 5.00%, 11/01/33 ..................................................................... 22,000,000 22,656,920 California State University Revenue, Systemwide, Series C, MBIA Insured, 5.00%, 11/01/28 ..................................................................................... 23,215,000 24,200,709 California Statewide CDA, COP, California Mortgage Insured, 5.75%, 8/01/21 ........................................... 9,585,000 10,187,226 COP, Children's Hospital, Los Angeles, 5.25%, 8/15/29 ...................................... 12,250,000 12,536,160 COP, FSA Insured, 5.50%, 8/15/31 ........................................................... 7,000,000 7,458,640 COP, Kaiser Permanente, ETM, 5.30%, 12/01/15 ............................................... 9,700,000 9,938,911 COP, MBIA Insured, 5.00%, 4/01/18 .......................................................... 3,000,000 3,097,320 MFHR, Silver Ridge Apartments, Mandatory Put 8/01/21, Series H, FNMA Insured, 5.80%, 8/01/33 ................................................................................... 2,785,000 2,946,697 California Statewide CDA Revenue, Brentwood School, Series A, FSA Insured, 5.25%, 10/01/29 ................................... 7,625,000 7,922,070 COP, John Muir/Mt. Diablo Health System, MBIA Insured, 5.125%, 8/15/22 ..................... 5,000,000 5,179,800 Hospital Monterey Peninsula, Series B, FSA Insured, 5.25%, 6/01/23 ......................... 2,000,000 2,132,340 Refunding, California Mortgage Insured, 5.00%, 8/01/21 ..................................... 2,035,000 2,104,170 California Statewide CDA Water and Wastewater Revenue, Pooled Financing Program, Series A, FSA Insured, 5.00%, 10/01/32 ..................................................... 9,320,000 9,574,436 Series B, FSA Insured, 5.65%, 10/01/26 ..................................................... 3,420,000 3,694,250 Series B, FSA Insured, 5.75%, 10/01/29 ..................................................... 1,465,000 1,567,242 Cambria Community Services District Water and Wastewater Revenue, Refunding, Series A, MBIA Insured, 6.00%, 5/01/15 ................................................................. 1,330,000 1,345,827 Campbell USD, GO, FSA Insured, 5.00%, 8/01/27 .................................................. 7,150,000 7,406,041 Castaic Lake Water Agency Revenue COP, Series A, MBIA Insured, 5.00%, 8/01/29 .................. 8,000,000 8,214,720 Chaffey Community College District GO, Refunding, Series A, FSA Insured, 5.00%, 7/01/27 ........................................... 270,000 281,121 Series A, FSA Insured, Pre-Refunded, 5.00%, 7/01/27 ........................................ 5,480,000 5,901,083 Charter Oak USD, GO, Election of 2000, Series D, FGIC Insured, 5.00%, 8/01/30 .................. 3,115,000 3,260,626 Chico PFAR, Merged Redevelopment Project Area, MBIA Insured, 5.125%, 4/01/24 ................... 2,790,000 2,939,823 Chino Basin Regional Financing Authority Revenue, Municipal Water District, Sewer System Project, Refunding, AMBAC Insured, 6.00%, 8/01/16 ............................................ 2,000,000 2,017,640 Chula Vista Elementary School District GO, Election of 1998, Series F, MBIA Insured, 5.00%, 8/01/28 ...................................................................................... 2,685,000 2,796,078 Clovis PFAR, 2001 Corp. Yard Project, AMBAC Insured, 5.00%, 3/01/27 ............................ 3,265,000 3,367,488 Coachella Valley USD, GO, Election, Series A, FGIC Insured, 5.00%, 8/01/27 .................................................................................... 3,650,000 3,818,630 8/01/28 .................................................................................... 3,850,000 4,024,867 Compton USD, GO, Election of 2002, Series B, MBIA Insured, 5.00%, 6/01/29 ...................... 2,000,000 2,078,600 Corona-Norco USD, Capital Appreciation, GO, Series B, FSA Insured, zero cpn., 9/01/23 ........................ 2,320,000 1,038,803 Capital Appreciation, GO, Series B, FSA Insured, zero cpn., 9/01/24 ........................ 2,620,000 1,114,181 Capital Appreciation, GO, Series B, FSA Insured, zero cpn., 3/01/25 ........................ 1,400,000 578,480 Capital Appreciation, GO, Series C, FGIC Insured, zero cpn., 9/01/25 ....................... 4,655,000 1,878,991
Quarterly Statements of Investments | 5 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Corona-Norco USD, (continued) Capital Appreciation, GO, Series C, FGIC Insured, zero cpn., 9/01/26 ....................... $ 6,080,000 $ 2,328,154 COP, Refunding, FSA Insured, 5.125%, 4/15/25 ............................................... 5,355,000 5,526,735 COP, Refunding, FSA Insured, 5.125%, 4/15/29 ............................................... 2,540,000 2,614,803 Coronado CDA, Tax Allocation, Community Development Project, MBIA Insured, 5.375%, 9/01/26 ...................................................................................... 2,700,000 2,897,262 Cucamonga County Water District COP, FGIC Insured, 5.00%, 9/01/29 .............................. 5,070,000 5,218,044 Culver City USD, GO, MBIA Insured, Pre-Refunded, 5.125%, 8/01/37 ............................................................................ 650,000 669,032 5.20%, 8/01/38 ............................................................................. 3,285,000 3,397,676 Delano USD, COP, Refinancing Project, MBIA Insured, 5.125%, 1/01/22 ............................ 1,620,000 1,781,368 East Bay MUD Water System Revenue, Refunding, MBIA Insured, 5.00%, 6/01/26 ..................... 14,000,000 14,434,980 El Monte City School District GO, Election of 2004, Series A, FGIC Insured, 5.00%, 5/01/30 ...................................................................................... 4,500,000 4,689,765 El Monte Water Authority Revenue, Water System Project, AMBAC Insured, 5.60%, 9/01/34 ...................................................................................... 1,800,000 1,937,844 Escondido Joint Powers Financing Authority Lease Revenue, AMBAC Insured, 5.125%, 9/01/30 ...................................................................................... 3,770,000 3,888,906 Escondido USD, GO, Series A, FSA Insured, 5.00%, 8/01/26 ....................................... 11,665,000 12,099,055 Eureka USD, GO, FSA Insured, 5.00%, 8/01/25 .................................................... 4,145,000 4,325,349 Fairfield Suisun USD, GO, Election of 2002, MBIA Insured, 5.00%, 8/01/25 ............................................. 4,185,000 4,372,990 MBIA Insured, 5.00%, 8/01/27 ............................................................... 12,000,000 12,491,520 Florin Resource Conservation District COP, Elk Grove Water Service, Refunding, Series A, MBIA Insured, 5.00%, 3/01/33 ................................................................. 5,000,000 5,148,450 Folsom COP, Central Business District Fire Station, MBIA Insured, 5.125%, 10/01/26 ............. 2,030,000 2,126,993 Foothill/Eastern Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, MBIA Insured, zero cpn., 1/15/17 .......................... 20,000,000 11,650,600 Capital Appreciation, Refunding, MBIA Insured, zero cpn., 1/15/18 .......................... 25,000,000 13,714,000 Capital Appreciation, Refunding, MBIA Insured, zero cpn., 1/15/19 .......................... 5,970,000 3,086,251 senior lien, Refunding, Series A, MBIA Insured, 5.00%, 1/01/35 ............................. 66,735,000 67,820,778 Fremont UHSD Santa Clara County GO, Series C, FSA Insured, Pre-Refunded, 5.00%, 9/01/26 ...................................................................................... 10,000,000 10,705,600 Fresno USD, GO, Refunding, Series B, MBIA Insured, 5.00%, 2/01/21 ..................................................... 2,860,000 3,087,399 Series C, MBIA Insured, 5.90%, 2/01/20 ..................................................... 2,065,000 2,420,634 Series C, MBIA Insured, 5.90%, 8/01/22 ..................................................... 3,000,000 3,558,630 Fullerton School District GO, Capital Appreciation, Series A, FGIC Insured, zero cpn., 8/01/23 ...................................................................................... 3,030,000 1,361,955 Fullerton University Foundation Auxiliary Organization Revenue, Series A, MBIA Insured, 5.75%, 7/01/25 .................................................................................... 1,250,000 1,368,038 7/01/30 .................................................................................... 1,000,000 1,091,120 Gilroy USD, GO, Election of 2002, FGIC Insured, 5.00%, 8/01/30 ................................. 8,650,000 9,022,642 Glendale USD, GO, Series C, FSA Insured, 5.50%, 9/01/24 ........................................ 2,750,000 2,921,188 Glendora PFAR, Tax Allocation, Project No. 1, Refunding, Series A, MBIA Insured, 5.00%, 9/01/24 ...................................................................................... 5,000,000 5,226,250
6 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Grant Joint UHSD, GO, FSA Insured, Pre-Refunded, 5.00%, 8/01/26 ................................ $ 5,235,000 $ 5,641,393 Grossmont UHSD, COP, FSA Insured, Pre-Refunded, 5.75%, 9/01/26 ............................................. 2,250,000 2,408,760 GO, Capital Appreciation, Election of 2004, FSA Insured, zero cpn., 8/01/24 ................ 5,110,000 2,181,510 Hemet USD, COP, Nutrition Center Project, FSA Insured, Pre-Refunded, 5.875%, 4/01/27 ........... 1,250,000 1,303,388 Hollister RDA Tax Allocation, Community Development Project, Refunding, AMBAC Insured, 5.125%, 10/01/32 ............................................................................. 19,815,000 20,800,400 Huntington Beach City and School District COP, MBIA Insured, 5.25%, 7/01/29 .................... 1,795,000 1,893,438 Jefferson San Mateo County UHSD, GO, Refunding, Series A, MBIA Insured, 6.45%, 8/01/25 .................................................................................... 3,045,000 3,868,459 8/01/29 .................................................................................... 3,075,000 3,973,423 Jurupa Community Services District Special Tax, CFD No. 2, Series A, AMBAC Insured, 5.00%, 9/01/32 ...................................................................................... 7,000,000 7,188,720 Jurupa USD, COP, FSA Insured, 5.625%, 9/01/24 .................................................. 1,600,000 1,735,024 Kern Community College District COP, Refunding, MBIA Insured, 5.00%, 1/01/25 ................... 7,800,000 7,995,936 Kern County High School District GO, FSA Insured, ETM, 6.625%, 8/01/14 .................................................................................... 1,535,000 1,832,130 8/01/15 .................................................................................... 1,400,000 1,689,590 Lancaster Financing Authority Tax Allocation Revenue, Subordinated, Redevelopment Projects No. 5 and 6, Series B, FGIC Insured, 5.00%, 2/01/35 .......................................... 5,775,000 5,955,584 Lancaster School District GO, Capital Appreciation, Election of 1999, MBIA Insured, zero cpn., 8/01/25 .................................................................................... 5,495,000 2,226,739 7/01/26 .................................................................................... 5,965,000 2,302,132 Lodi COP, Wastewater Treatment Project, Refunding, AMBAC Insured, 6.70%, 8/01/26 ............... 8,800,000 9,065,496 Lodi Electric Systems Revenue COP, Series A, MBIA Insured, Pre-Refunded, 5.50%, 1/15/32 ........ 4,000,000 4,242,840 Lodi USD, GO, MBIA Insured, 5.00%, 8/01/23 ..................................................... 2,150,000 2,237,247 Long Beach Bond Finance Authority Lease Revenue, Aquarium of The South Pacific, Refunding, AMBAC Insured, 5.00%, 11/01/19 ................... 4,000,000 4,189,000 Aquarium of The South Pacific, Refunding, AMBAC Insured, 5.00%, 11/01/26 ................... 11,000,000 11,391,820 Aquarium of The South Pacific, Refunding, AMBAC Insured, 5.25%, 11/01/30 ................... 2,000,000 2,104,200 Public Safety Facilities Projects, AMBAC Insured, 5.00%, 11/01/26 .......................... 6,780,000 7,001,977 Public Safety Facilities Projects, AMBAC Insured, 5.00%, 11/01/31 .......................... 10,500,000 10,801,455 Long Beach Bond Finance Authority Tax Allocation Revenue, North Long Beach Redevelopment Projects, Series A, AMBAC Insured, 5.00%, 8/01/25 .................................................................................... 13,550,000 13,993,627 8/01/31 .................................................................................... 12,000,000 12,332,880 Long Beach University School District GO, Election of 1999, Series C, MBIA Insured, 5.125%, 8/01/31 ...................................................................................... 13,870,000 14,393,731 Los Angeles Community College District GO, Series A, MBIA Insured, Pre-Refunded, 5.00%, 6/01/26 ....................................... 4,000,000 4,254,880 Series B, FSA Insured, 5.00%, 8/01/27 ...................................................... 4,000,000 4,163,840 Los Angeles COP, Municipal Improvement Corp., Municipal Improvement Corp. of Los Angeles AW, AMBAC Insured, 5.00%, 6/01/27 ................................................................... 5,895,000 6,113,410 Real Property Program, MBIA Insured, 5.00%, 2/01/27 ........................................ 9,890,000 10,196,392
Quarterly Statements of Investments | 7 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Los Angeles County COP, Antelope Valley Courthouse, Series A, AMBAC Insured, 5.25%, 11/01/27 ................................................................................... $ 2,500,000 $ 2,614,450 11/01/33 ................................................................................... 2,500,000 2,613,375 Los Angeles County MTA, Sales Tax Revenue, Proposition A, first tier, Senior Series A, MBIA Insured, Pre-Refunded, 5.25%, 7/01/27 ........................................................ 27,870,000 28,738,987 Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Projects, District No. 14, Sub Series B, FGIC Insured, 5.00%, 10/01/29 .......................................... 6,460,000 6,722,405 Los Angeles Harbor Department Revenue, Series B, MBIA Insured, 6.20%, 8/01/25 .................. 2,500,000 2,546,325 Los Angeles Mortgage Revenue, Refunding, Series I, MBIA Insured, 6.50%, 7/01/22 ................ 790,000 791,485 Los Angeles Wastewater System Revenue, Refunding, MBIA Insured, 5.00%, 6/01/26 ................. 10,000,000 10,383,000 Los Angeles Water and Power Revenue, Power System, Refunding, Series A, MBIA Insured, 5.00%, 7/01/24 ............................................................................... 12,000,000 12,320,040 Lynwood PFA Tax Allocation, Project Area A, Refunding, Series A, FSA Insured, 5.85%, 9/01/18 ...................................................................................... 1,765,000 1,907,965 Lynwood PFA Water Revenue, Water System Improvement Project, MBIA Insured, 5.85%, 6/01/22 ............................................................................. 665,000 712,075 5.90%, 6/01/29 ............................................................................. 3,105,000 3,320,735 Marin Municipal Water District COP, Financing Project, AMBAC Insured, 5.00%, 7/01/29 ........... 1,200,000 1,243,356 Mendocino County COP, Public Facilities Corp., MBIA Insured, 5.25%, 6/01/30 .................... 2,680,000 2,838,629 Menlo Park CDA Tax Allocation, Las Pulgas Community Development Project, Refunding, AMBAC Insured, 5.375%, 6/01/22 ............................................................... 10,000,000 10,225,300 Merced Irrigation District Electricity System Revenue, Refunding, XLCA Insured, 5.00%, 9/01/26 ...................................................................................... 10,000,000 10,408,800 Metropolitan Water District Southern California Waterworks Revenue, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/30 ....................................... 6,525,000 6,753,179 Series C, MBIA Insured, Pre-Refunded, 5.00%, 7/01/27 ....................................... 2,500,000 2,527,900 Millbrae COP, Police Department Expansion, AMBAC Insured, 5.875%, 3/01/24 ...................... 1,025,000 1,107,226 Modesto Irrigation District COP, Capital Improvements, Series A, FSA Insured, 5.00%, 7/01/26 .................................................................................... 5,000,000 5,158,050 7/01/31 .................................................................................... 8,285,000 8,517,229 Modesto Wastewater Treatment Facility Revenue, MBIA Insured, Pre-Refunded, 5.75%, 11/01/22 ..................................................................................... 14,375,000 15,012,531 Montebello Community RDA Tax Allocation, Housing, Series A, FSA Insured, 5.45%, 9/01/19 ............................................. 1,100,000 1,149,775 Montebello Hills Redevelopment Project, Refunding, MBIA Insured, 5.60%, 3/01/19 ............ 2,460,000 2,505,239 Montebello COP, Capital Improvement Project, Refunding, FSA Insured, 5.375%, 11/01/26 ..................................................................................... 8,715,000 9,367,753 Moreno Valley USD, GO, Election of 2004, Series A, FSA Insured, 5.00%, 8/01/26 ................. 4,000,000 4,174,000 Morgan Hill USD, GO, FGIC Insured, 5.50%, 8/01/25 .............................................. 3,840,000 4,130,342 Mount Diablo USD, CFD No. 1 Special Tax, Refunding, AMBAC Insured, 5.75%, 8/01/15 ............................ 1,000,000 1,017,110 CFD No. 1 Special Tax, Refunding, AMBAC Insured, 5.75%, 8/01/16 ............................ 2,270,000 2,308,840 CFD No. 1 Special Tax, Refunding, AMBAC Insured, 5.375%, 8/01/19 ........................... 7,290,000 7,404,890 GO, Election of 2002, FGIC Insured, 5.00%, 7/01/25 ......................................... 6,025,000 6,284,557 Murrieta Valley USD, COP, MBIA Insured, 5.00%, 8/01/27 ......................................... 2,380,000 2,469,916 Natomas USD, GO, FSA Insured, 5.00%, 9/01/26 ................................................... 2,535,000 2,643,168
8 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Nevada Irrigation District Revenue COP, Cascade Bench Flume Project, MBIA Insured, 5.50%, 1/01/17 ...................................................................................... $ 4,600,000 $ 4,757,642 Nevada Joint UHSD, GO, Election of 2002, Series B, FSA Insured, 5.00%, 8/01/30 .................................... 5,125,000 5,345,785 Series A, FSA Insured, 5.00%, 8/01/26 ...................................................... 1,295,000 1,343,187 Newark USD, GO, Capital Appreciation, Series B, FGIC Insured, zero cpn., 8/01/24 ................................................. 9,905,000 3,599,576 Series C, FSA Insured, zero cpn., 8/01/22 .................................................. 2,165,000 939,935 Series C, FSA Insured, zero cpn., 8/01/23 .................................................. 2,465,000 1,003,354 Series C, FSA Insured, zero cpn., 8/01/24 .................................................. 2,560,000 982,221 Series C, FSA Insured, zero cpn., 8/01/25 .................................................. 2,705,000 978,290 Norco RDA Tax Allocation, Redevelopment Project Area No. 1, MBIA Insured, 5.625%, 3/01/30 ...................................................................................... 1,000,000 1,076,070 North City West School Facilities Financing Authority Special Tax, Refunding, Series B, FSA Insured, 5.75%, 9/01/15 ............................................................................. 1,260,000 1,296,868 6.00%, 9/01/19 ............................................................................. 2,500,000 2,575,650 Northern California Public Power Agency Revenue, AMBAC Insured, Pre-Refunded, 7.50%, 7/01/23 ...................................................................................... 3,200,000 4,274,336 Oakland Revenue, 1800 Harrison Foundation, Series A, AMBAC Insured, Pre-Refunded, 6.00%, 1/01/29 ............................................................................... 10,000,000 10,824,600 Oceanside COP, AMBAC Insured, 5.20%, 4/01/23 ................................................... 2,500,000 2,636,125 Orange County Sanitation Districts COP, FGIC Insured, 5.00%, 2/01/33 ........................... 8,000,000 8,256,720 Orinda COP, City Offices, AMBAC Insured, 5.00%, 7/01/30 ........................................ 2,155,000 2,222,408 Palm Springs Financing Authority Lease Revenue, Convention Center Project, Refunding, Series A, MBIA Insured, 5.00%, 11/01/25 ...................................................... 2,295,000 2,380,328 Parlier USD, GO, Series B, AMBAC Insured, 6.00%, 6/01/16 ....................................... 1,130,000 1,157,177 Pasadena Area Community College District GO, Election of 2002, Series A, FGIC Insured, 5.00%, 6/01/28 ............................................................................... 4,000,000 4,158,160 Pasadena USD, GO, Series B, FGIC Insured, Pre-Refunded, 5.25%, 7/01/24 ......................... 1,000,000 1,060,450 Patterson Joint USD, Capital Appreciation, GO, Series A, FGIC Insured, zero cpn., 8/01/22 .................................................................................... 1,900,000 898,662 8/01/23 .................................................................................... 1,985,000 892,238 8/01/24 .................................................................................... 2,075,000 885,838 8/01/25 .................................................................................... 2,170,000 879,349 8/01/26 .................................................................................... 2,265,000 870,734 Peralta Community College District GO, Election of 2000, Series B, MBIA Insured, 5.25%, 8/01/32 ...................................................................................... 8,450,000 8,932,833 Perris CFD Special Tax, No. 93-1, Series A, AMBAC Insured, 5.125%, 8/15/23 ..................... 4,000,000 4,226,640 Placer County COP, Administrative and Emergency Services, MBIA Insured, 5.65%, 6/01/24 ...................................................................................... 4,000,000 4,168,560 Plumas County COP, Capital Improvement Program, Series A, AMBAC Insured, 5.00%, 6/01/33 ...................................................................................... 3,280,000 3,397,522 Pomona PFA Lease Revenue, Series AN, AMBAC Insured, 5.00%, 10/01/30 ................................................................................... 5,190,000 5,356,184 10/01/35 ................................................................................... 6,635,000 6,801,273
Quarterly Statements of Investments | 9 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Porterville COP, Sewer System Refining Project, Refunding, AMBAC Insured, 5.25%, 10/01/23 ..................................................................................... $ 3,000,000 $ 3,124,890 Poway RDA, Tax Allocation, Paguay Redevelopment Project, AMBAC Insured, 5.00%, 12/15/25 ............................... 9,195,000 9,484,459 Refunding, MBIA Insured, 5.75%, 6/15/33 .................................................... 11,475,000 12,542,404 Rancho Cucamonga RDA, Tax Allocation, Rancho Redevelopment Project, Housing Set Aside, MBIA Insured, 5.25%, 9/01/26 ............................................ 2,000,000 2,052,060 Refunding, FSA Insured, 5.25%, 9/01/20 ..................................................... 2,500,000 2,627,675 Redding Joint Powers Financing Authority Lease Revenue, Civic Center Project, Series A, MBIA Insured, 5.75%, 3/01/19 ............................................................................. 3,090,000 3,182,669 5.25%, 3/01/26 ............................................................................. 75,000 76,918 Redwood City School District GO, FGIC Insured, 5.00%, 7/15/27 .................................. 3,000,000 3,107,580 Rescue USD, GO, Election of 1998, MBIA Insured, 5.00%, 9/01/30 ................................. 7,015,000 7,319,591 Ripon RDA, Tax Allocation, Community Redevelopment Project, MBIA Insured, 5.85%, 11/01/30 ..................................................................................... 3,975,000 4,402,114 Riverside County COP, Historic Courthouse, MBIA Insured, Pre-Refunded, 5.875%, 11/01/27 ..................................................................................... 3,000,000 3,162,900 a Roseville Financing Authority Revenue, senior lien, Series A, AMBAC Insured, 5.00%, 9/01/25 ...................................................................................... 3,100,000 3,222,295 Rowland USD, GO, Series A, FSA Insured, Pre-Refunded, 5.25%, 9/01/25 ........................... 5,685,000 6,109,954 Sacramento Area Flood Control Agency Special Assessment, Capital AD No. 2, FGIC Insured, Pre-Refunded, 5.80%, 11/01/16 .............................. 1,000,000 1,033,370 Operation and Maintenance, FGIC Insured, 5.80%, 11/01/16 ................................... 1,475,000 1,524,221 Operation and Maintenance, FGIC Insured, 5.90%, 11/01/25 ................................... 2,690,000 2,781,272 Sacramento City Financing Authority Revenue, Capital Improvement, Series A, AMBAC Insured, 5.00%, 12/01/26 .............................. 8,395,000 8,935,050 Capital Improvement, Series A, AMBAC Insured, 5.00%, 12/01/32 .............................. 21,500,000 22,883,095 City Hall and Redevelopment Projects, Series A, FSA Insured, Pre-Refunded, 5.00%, 12/01/28 .................................................................................. 10,000,000 10,729,700 Sacramento County Airport System Revenue, Series A, MBIA Insured, 6.00%, 7/01/17 ............... 5,920,000 6,064,389 Sacramento County Sanitation District Financing Authority Revenue, Sacramento Regional County Sanitation, Series A, AMBAC Insured, 5.00%, 12/01/35 .................................. 10,000,000 10,361,900 Salida Area Public Facilities Financing Agency CFD, Special Tax, No. 1988-1, FSA Insured, 5.75%, 9/01/30 ............................................................................... 3,435,000 3,750,883 Salida USD, COP, Financing Project, AMBAC Insured, 5.375%, 5/01/26 ............................. 1,645,000 1,647,484 San Bernardino County COP, 1997 Public Improvement Financing Project, MBIA Insured, 5.25%, 10/01/25 .............................................................................. 7,000,000 7,277,900 San Bernardino County SFMR, Capital Appreciation, Series A, GNMA Secured, ETM, zero cpn., 5/01/22 ...................................................................................... 28,405,000 11,871,586 San Buenaventura Public Facilities Financing Authority Lease Revenue, Refunding, FSA Insured, 5.75%, 6/01/14 ...................................................................... 2,250,000 2,280,870 San Carlos School District GO, MBIA Insured, Pre-Refunded, 5.50%, 10/01/24 ..................... 2,110,000 2,281,227 San Diego Public Facilities Financing Authority Sewer Revenue, Series B, FGIC Insured, 5.25%, 5/15/27 ............................................................................... 2,950,000 3,024,281
10 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) San Francisco BART District Sales Tax Revenue, 5.00%, 7/01/28 ............................................................................. $ 2,795,000 $ 2,861,577 FGIC Insured, Pre-Refunded, 5.50%, 7/01/26 ................................................. 6,500,000 6,942,195 FGIC Insured, Pre-Refunded, 5.50%, 7/01/34 ................................................. 12,000,000 12,816,360 Pre-Refunded, 5.00%, 7/01/28 ............................................................... 5,205,000 5,423,037 San Francisco City and County Airports Commission International Airport Revenue, Refunding, Second Series 28A, MBIA Insured, 5.125%, 5/01/24 .................................................................................... 9,745,000 10,128,076 5/01/27 .................................................................................... 16,575,000 17,128,439 San Francisco City and County Public Utilities Commission Water Revenue, Refunding, Series A, FSA Insured, 5.00%, 11/01/31 ....................................................... 3,885,000 4,030,066 San Francisco Community College District GO, Series A, FGIC Insured, 5.00%, 6/15/26 ............ 6,000,000 6,235,800 San Francisco State University Foundation Inc. Auxiliary Organization Housing Revenue, MBIA Insured, 5.00%, 9/01/31 ................................................................. 13,415,000 13,791,693 San Gabriel USD, GO, Capital Appreciation, Series A, FSA Insured, zero cpn., 8/01/26 .................................................................................... 3,530,000 1,357,038 2/01/27 .................................................................................... 1,850,000 690,420 San Joaquin Delta Community College District GO, Election of 2004, Series A, FSA Insured, 5.00%, 8/01/29 ............................................................................... 5,050,000 5,251,899 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 1/15/26 ................ 13,155,000 5,188,332 Refunding, Series A, MBIA Insured, 5.375%, 1/15/29 ......................................... 18,075,000 18,645,266 Refunding, Series A, MBIA Insured, 5.25%, 1/15/30 .......................................... 11,860,000 12,215,563 senior lien, MBIA Insured, 5.00%, 1/01/33 .................................................. 10,035,000 10,068,918 San Jose Financing Authority Lease Revenue, Civic Center Project, Series B, AMBAC Insured, 5.00%, 6/01/27 ............................................................................... 10,000,000 10,276,500 San Jose MFHR, Sixth and Martha Family Apartments, FNMA Insured, 5.875%, 3/01/33 ............... 3,500,000 3,644,690 San Juan USD, GO, Election of 1998, Series A, MBIA Insured, 5.00%, 8/01/28 ..................... 5,115,000 5,321,288 San Leandro COP, Library and Fire Stations Financing, AMBAC Insured, 5.75%, 11/01/29 ........... 5,000,000 5,390,850 San Marcos Public Facilities Authority Revenue, Senior Tax Increment Project Area 3, Series A, MBIA Insured, Pre-Refunded, 5.75%, 10/01/29 ............................................................................ 5,340,000 5,900,593 5.80%, 10/01/30 ............................................................................ 7,800,000 8,536,008 San Marino USD, GO, Series A, MBIA Insured, zero cpn., 7/01/25 ................................. 6,080,000 2,473,405 San Mateo GO, Library Improvement Project, Series A, AMBAC Insured, 5.25%, 8/01/30 ............. 5,790,000 6,158,534 Santa Ana USD, COP, Capital Appreciation, Financing Project, FSA Insured, zero cpn., 4/01/24 ...................................................................................... 14,245,000 6,176,205 Santa Clara COP, Refunding, AMBAC Insured, 5.00%, 2/01/27 ...................................... 5,555,000 5,752,591 Santa Clara County Financing Authority Lease Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 11/15/22 .............................................................................. 3,950,000 4,084,103 Santa Fe Springs PFA Water Revenue, Series A, MBIA Insured, Pre-Refunded, 5.90%, 5/01/21 .................................................................................... 900,000 919,620 5/01/26 .................................................................................... 1,190,000 1,215,942 Santa Monica Community College District GO, Series B, AMBAC Insured, 5.75%, 7/01/20 ............ 1,495,000 1,518,711 Santa Monica PFA Lease Revenue, Civic Center Parking Project, XLCA Insured, 5.00%, 7/01/33 ...................................................................................... 11,050,000 11,372,439
Quarterly Statements of Investments | 11 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Santa Rosa Wastewater Revenue, Series B, FGIC Insured, 5.125%, 9/01/31 ......................... $ 4,000,000 $ 4,190,600 Santa Rosa Wastewater Service Facilities District Revenue, Refunding and Improvement, AMBAC Insured, 6.00%, 7/02/15 ................................................................ 2,000,000 2,293,040 Sequoia UHSD, GO, Refunding, FSA Insured, 5.00%, 7/01/28 ....................................... 3,060,000 3,209,848 Shasta Tehama Trinity Joint Community College District GO, Election of 2002, Series B, FSA Insured, 5.00%, 8/01/30 ...................................................................... 3,070,000 3,212,233 Sonoma CDA Tax Allocation, Redevelopment Project, MBIA Insured, 5.70%, 12/01/30 ................ 3,455,000 3,726,010 Sonoma Valley USD, GO, FSA Insured, 6.00%, 7/15/21 ............................................. 2,400,000 2,440,656 South Gate COP, Series A, AMBAC Insured, 5.00%, 9/01/24 ........................................ 3,155,000 3,279,938 South San Francisco COP, 5.00%, 4/01/29 ........................................................ 2,000,000 2,029,060 Southern California Public Power Authority Power Project Revenue, Series A, AMBAC Insured, 5.00%, 7/01/33 ............................................................................... 29,000,000 29,921,620 Southern Kern USD, COP, Convertible Capital Appreciation Building Program, Series B, FSA Insured, 5.625%, 9/01/26 ..................................................................... 2,250,000 2,319,930 Southern Mono Health Care District GO, Series A, MBIA Insured, 5.00%, 8/01/24 .................. 3,005,000 3,115,133 Southern Mono Health Care District Revenue, Capital Appreciation, Series A, MBIA Insured, zero cpn., 8/01/28 .................................................................................... 2,340,000 792,441 8/01/29 .................................................................................... 2,440,000 783,606 8/01/30 .................................................................................... 2,550,000 776,322 8/01/31 .................................................................................... 2,660,000 767,357 Stanislaus County Board of Education COP, FSA Insured, 5.70%, 9/01/24 .......................... 2,000,000 2,155,800 Stockton Port District Port Facilities Revenue, Refunding and Improvement, Series B, FSA Insured, 5.90%, 7/01/12 ...................................................................... 2,490,000 2,608,151 Stockton Revenue COP, Wastewater System Project, Refunding, Series A, MBIA Insured, 5.00%, 9/01/23 ............................................................................... 6,500,000 6,777,810 Susanville PFAR, MBIA Insured, 5.70%, 6/01/30 .................................................. 3,000,000 3,276,870 Tahoe-Truckee Joint USD, GO, Series B, FGIC Insured, Pre-Refunded, 5.95%, 9/01/20 .............. 3,620,000 3,728,817 Tahoe-Truckee USD, GO, ID No. 2, Series A, FGIC Insured, Pre-Refunded, 5.75%, 8/01/20 .......... 4,340,000 4,675,091 Tri-City Hospital District Revenue, MBIA Insured, 6.00%, 2/01/22 ............................................................... 2,350,000 2,353,408 Refunding, Series A, MBIA Insured, 5.625%, 2/15/17 ......................................... 2,750,000 2,824,883 Truckee PFA Lease Revenue, Series A, AMBAC Insured, Pre-Refunded, 6.00%, 11/01/30 .............. 1,990,000 2,149,240 Turlock Auxiliary Organization Revenue COP, California State University, Stanislaus Foundation, MBIA Insured, 5.875%, 6/01/22 ................................................................ 2,000,000 2,047,080 Turlock PFA Sewer Revenue, FGIC Insured, 5.50%, 9/15/29 ........................................ 6,855,000 7,274,252 Union City CRDA Tax Allocation Revenue, Community Redevelopment Project, AMBAC Insured, 5.75%, 10/01/32 .............................................................................. 14,100,000 15,253,521 Union Elementary School District GO, Capital Appreciation, Series A, FGIC Insured, zero cpn., 9/01/24 ................................................. 2,000,000 842,900 Series B, FGIC Insured, zero cpn., 9/01/25 ................................................. 5,500,000 2,199,175 Series B, FGIC Insured, zero cpn., 9/01/26 ................................................. 5,850,000 2,217,852 University of California Revenues, Multi Purpose Projects, Series H, FGIC Insured, Pre-Refunded, 5.50%, 9/01/28 ....................................... 2,500,000 2,593,475 Series K, 5.00%, 9/01/23 ................................................................... 3,160,000 3,245,004 Series M, FGIC Insured, 5.125%, 9/01/30 .................................................... 8,720,000 9,068,538
12 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Vacaville PFA Tax Allocation Revenue, Vacaville Redevelopment Projects, FSA Insured, 5.00%, 9/01/31 ............................................................................... $ 5,095,000 $ 5,206,020 Vacaville USD, GO, Election of 2001, MBIA Insured, 5.00%, 8/01/30 .............................. 12,670,000 13,215,824 Vallejo Revenue, Water Improvement Project, Refunding, Series A, FSA Insured, 5.875%, 5/01/26 ...................................................................................... 12,500,000 12,770,375 Vista USD, GO, Capital Appreciation, Series A, FSA Insured, zero cpn., 8/01/26 ............................ 7,150,000 2,748,675 Capital Appreciation, Series A, FSA Insured, zero cpn., 2/01/27 ............................ 4,795,000 1,789,494 Series A, FSA Insured, 5.25%, 8/01/25 ...................................................... 5,000,000 5,302,800 Washington Township Health Care District Revenue, 5.00%, 7/01/18 ............................................................................. 2,000,000 2,047,020 5.125%, 7/01/23 ............................................................................ 450,000 459,594 Washington USD, GO, Yolo County, Election of 1999, Series A, FGIC Insured, 5.375%, 8/01/25 ...................................................................................... 2,045,000 2,184,898 West Basin Municipal Water District Revenue COP, 1992 Project, Refunding, Series A, AMBAC Insured, 5.50%, 8/01/17 ........................... 3,370,000 3,486,130 Refunding, Series A, MBIA Insured, 5.00%, 8/01/24 .......................................... 2,500,000 2,604,000 Refunding, Series A, MBIA Insured, 5.00%, 8/01/30 .......................................... 5,745,000 5,947,511 Western Placer USD Financing Corp. COP, 5.55%, 11/01/30 ........................................ 6,930,000 6,999,785 Westlands Water District Revenue COP, MBIA Insured, 5.00%, 9/01/29 ............................................................... 11,775,000 12,164,281 Series A, MBIA Insured, 5.00%, 9/01/35 ..................................................... 1,460,000 1,500,062 Woodland Finance Authority Lease Revenue, Capital Projects, Refunding, XLCA Insured, 5.00%, 3/01/32 ............................................................................... 6,340,000 6,565,514 Woodland Finance Authority Wastewater Revenue, second senior lien, MBIA Insured, 5.00%, 3/01/33 .................................................................................... 3,870,000 3,976,193 3/01/35 .................................................................................... 2,590,000 2,661,070 a Woodside Elementary School District GO, Election of 2005, MBIA Insured, 5.00%, 10/01/29 ........ 4,435,000 4,633,865 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,815,961,571) .............................................. 1,942,207,658 -------------- SHORT TERM INVESTMENTS 1.1% BONDS 1.1% CALIFORNIA 1.1% b California State Department of Water Resources Power Supply Revenue, Refunding, Sub Series F-1, Daily VRDN and Put, 3.10%, 5/01/19 ............................... 1,600,000 1,600,000 Series B-2, Daily VRDN and Put, 3.07%, 5/01/22 .............................................. 8,800,000 8,800,000 Series B-4, Daily VRDN and Put, 3.07%, 5/01/22 .............................................. 500,000 500,000 Series B-6, Daily VRDN and Put, 3.10%, 5/01/22 .............................................. 200,000 200,000 Series C-7, FSA Insured, Weekly VRDN and Put, 3.17%, 5/01/22 ................................ 800,000 800,000 b California State Economic Recovery Revenue, Series C-8, Daily VRDN and Put, 3.07%, 7/01/23 ....................................................................................... 1,600,000 1,600,000 b California State GO, Series A-3, Daily VRDN and Put, 3.16%, 5/01/33 ............................ 2,525,000 2,525,000 b Metropolitan Water District Southern California Waterworks Revenue, Refunding, Series B-3, Daily VRDN and Put, 3.16%, 7/01/35 ................................... 3,000,000 3,000,000 Series C-2, Daily VRDN and Put, 3.07%, 7/01/36 .............................................. 3,000,000 3,000,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $22,025,000) ................................................ 22,025,000 --------------
Quarterly Statements of Investments | 13 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND VALUE ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (COST $1,837,986,571) 99.5% .................................................... $1,964,232,658 OTHER ASSETS, LESS LIABILITIES 0.5% .............................................................. 9,451,975 -------------- NET ASSETS 100.0% ................................................................................ $1,973,684,633 ==============
See Selected Portfolio Abbreviations on page 30. a Security purchased on a when-issued or delayed delivery basis. b Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 14 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.2% BONDS 98.2% CALIFORNIA 96.0% ABAG Finance Authority for Nonprofit Corps. COP, Rhoda Haas Goldman Plaza, California Mortgage Insured, 5.125%, 5/15/15 .............................................................. $ 3,000,000 $ 3,113,700 ABAG Finance Authority for Nonprofit Corps. Revenue, San Diego Hospital Assn., Series C, 5.125%, 3/01/18 .............................................................................. 2,695,000 2,760,839 5.25%, 3/01/19 ............................................................................... 2,315,000 2,384,288 ABAG Revenue, Refunding, Series A-E, 5.00%, 9/15/06 ............................................................................... 595,000 597,231 5.05%, 9/15/07 ............................................................................... 610,000 618,802 5.40%, 9/15/14 ............................................................................... 2,455,000 2,506,506 ABAG Water and Wastewater Revenue, Pooled Financing Program, Series A, FSA Insured, 5.00%, 10/01/10 ................................................................................ 3,035,000 3,192,304 Alameda Corridor Transportation Authority Revenue, Capital Appreciation, sub. lien, Refunding, Series A, AMBAC Insured, zero cpn., 10/01/17 ................................................... 10,000,000 6,024,400 Alameda-Contra Costa Transportation District COP, Refunding, AMBAC Insured, 4.375%, 8/01/14 ........................................................................................ 1,330,000 1,355,549 Anaheim UHSD, GO, Refunding, FSA Insured, 5.00%, 8/01/18 ......................................... 4,740,000 5,056,111 Antelope Valley UHSD, GO, Series A, MBIA Insured, 4.50%, 8/01/13 ............................................................................... 1,230,000 1,282,127 4.625%, 8/01/14 .............................................................................. 1,250,000 1,305,563 Antioch PFA, Reassessment Revenue, sub. lien, Refunding, Sub Series B, 5.40%, 9/02/07 ............ 1,080,000 1,089,115 Banning Utility Authority Water Enterprise Revenue, Refunding and Improvement Projects, Refunding, FGIC Insured, 5.00%, 11/01/21 ....................................................... 1,080,000 1,138,957 Brentwood Infrastructure Financing Authority Infrastructure Revenue, Refunding, Series A, FSA Insured, 4.00%, 9/02/17 .................................................................... 1,485,000 1,460,898 Burbank Electric Revenue, MBIA Insured, 4.00%, 6/01/11 ...................................................................................... 1,000,000 1,019,580 6/01/12 ...................................................................................... 1,000,000 1,016,890 Burbank USD, GO, Capital Appreciation, Election of 1997, Series C, FGIC Insured, zero cpn., 8/01/15 ........... 4,600,000 3,091,108 Capital Appreciation, Election of 1997, Series C, FGIC Insured, zero cpn., 8/01/16 ........... 4,670,000 2,982,962 Election of 1997, Series C, FGIC Insured, 4.00%, 8/01/12 ..................................... 2,500,000 2,543,250 Burbank Water and Power Electric Revenue, MBIA Insured, 4.00%, 6/01/11 ........................... 5,045,000 5,048,683 California Educational Facilities Authority Revenue, Pooled College and University Projects, Series B, Pre-Refunded, 6.125%, 4/01/13 .............. 1,000,000 1,044,120 Stanford University, Refunding, Series R, 4.00%, 11/01/11 .................................... 1,000,000 1,022,550 California Health Facilities Financing Authority Revenue, The Episcopal Home, California Mortgage Insured, 4.625%, 2/01/12 ............................. 1,350,000 1,369,535 The Episcopal Home, California Mortgage Insured, 4.75%, 2/01/13 .............................. 1,200,000 1,234,956 Kaiser Permanente, Series B, ETM, 5.25%, 10/01/13 ............................................ 5,000,000 5,260,000 Kaiser Permanente, Series B, ETM, 5.25%, 10/01/14 ............................................ 2,000,000 2,100,580 Kaiser Permanente, Series B, ETM, 5.25%, 10/01/16 ............................................ 3,850,000 4,038,919 Paradise Valley Estates, California Mortgage Insured, 3.875%, 1/01/09 ........................ 1,555,000 1,529,731 Paradise Valley Estates, California Mortgage Insured, 4.125%, 1/01/10 ........................ 1,000,000 1,006,670 Paradise Valley Estates, California Mortgage Insured, 5.00%, 1/01/11 ......................... 1,480,000 1,531,593 Paradise Valley Estates, California Mortgage Insured, 4.375%, 1/01/12 ........................ 1,000,000 1,009,290 Paradise Valley Estates, California Mortgage Insured, 5.00%, 1/01/13 ......................... 1,815,000 1,912,411 Paradise Valley Estates, California Mortgage Insured, 5.00%, 1/01/14 ......................... 1,635,000 1,713,905 Sutter Health, Refunding, Series A, MBIA Insured, 5.875%, 8/15/16 ............................ 3,750,000 3,855,450
Quarterly Statements of Investments | 15 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) California HFA, SFM Purchase, Class III, Series A-1, MBIA Insured, 5.70%, 8/01/11 ................ $ 435,000 $ 441,882 California State Department of Water Resources Central Valley Project Revenue, Water System, Refunding, Series S, 5.00%, 12/01/19 ......................................................... 1,915,000 1,976,625 Series S, Pre-Refunded, 5.00%, 12/01/19 ...................................................... 2,085,000 2,156,182 California State Department of Water Resources Power Supply Revenue, Series A, 5.50%, 5/01/12 ............................................................................... 2,000,000 2,168,100 Pre-Refunded, 5.125%, 5/01/18 ................................................................ 2,500,000 2,710,675 California State Department of Water Resources Water Revenue, Central Valley Project, Refunding, Series AD, FSA Insured, 5.00%, 12/01/20 ........................................... 5,000,000 5,293,350 Series Z, FGIC Insured, 3.50%, 12/01/12 ...................................................... 5,000,000 4,938,400 California State Economic Recovery Revenue, Series A, 5.00%, 7/01/15 ............................. 10,670,000 11,373,473 California State GO, 5.25%, 6/01/16 ............................................................................... 630,000 637,913 Pre-Refunded, 5.00%, 11/01/12 ................................................................ 1,335,000 1,423,711 Pre-Refunded, 5.25%, 6/01/16 ................................................................. 1,370,000 1,387,522 Refunding, 4.00%, 2/01/10 .................................................................... 6,900,000 6,965,481 Refunding, 5.00%, 11/01/12 ................................................................... 665,000 701,981 Refunding, 5.25%, 2/01/14 .................................................................... 4,000,000 4,311,800 Refunding, MBIA Insured, 5.00%, 2/01/18 ...................................................... 1,175,000 1,216,196 Veterans, Series B, 5.00%, 12/01/12 .......................................................... 2,000,000 2,010,640 Veterans, Series B, 5.25%, 12/01/15 .......................................................... 2,310,000 2,363,476 Veterans, Series B, 5.375%, 12/01/16 ......................................................... 605,000 608,267 California State Public Works Board Lease Revenue, Department of Forestry and Fire Protection, Series A, 4.875%, 10/01/18 ....................... 1,325,000 1,350,917 Various Community College Projects, Refunding, Series C, 5.50%, 9/01/09 ...................... 1,555,000 1,597,794 California State University Revenue, Systemwide, Series C, MBIA Insured, 5.00%, 11/01/18 ......... 5,000,000 5,340,900 California Statewide CDA, COP, California Lutheran Homes, ETM, 5.375%, 11/15/06 ............................................. 1,000,000 1,011,500 Kaiser Permanente, ETM, 5.30%, 12/01/15 ...................................................... 2,000,000 2,049,260 St. Joseph Health System, Refunding, 5.00%, 7/01/12 .......................................... 2,180,000 2,250,697 St. Joseph Health System Obligation Group, 5.25%, 7/01/11 .................................... 1,005,000 1,050,466 California Statewide CDA Revenue, Daughters of Charity Health, Series G, 5.25%, 7/01/13 ........................................ 1,000,000 1,050,870 Daughters of Charity Health, Series G, 5.00%, 7/01/22 ........................................ 5,000,000 5,099,750 Insured Health Facility, Jewish Home, California Mortgage Insured, 5.00%, 11/15/18 ........... 3,000,000 3,119,160 Kaiser Permanente, Mandatory Put 5/01/11, Series I, 3.45%, 4/01/35 ........................... 5,000,000 4,843,500 Kaiser Permanente, Mandatory Put 6/01/12, Series C, 3.85%, 11/01/29 .......................... 10,000,000 9,806,100 Mission Community, California Mortgage Insured, 4.40%, 11/01/10 .............................. 1,100,000 1,119,107 Mission Community, California Mortgage Insured, 4.50%, 11/01/11 .............................. 1,145,000 1,171,587 Viewpoint School, ACA Insured, 4.50%, 10/01/17 ............................................... 460,000 450,303 Viewpoint School, ACA Insured, 4.75%, 10/01/18 ............................................... 480,000 478,656 Cathedral City 1915 Act Special Assessment, Ltd. Obligation, Cove ID 04-02, 5.00%, 9/02/24 ........................................................................................ 1,000,000 995,190
16 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Central California Joint Powers Health Financing Authority COP, Community Hospitals of Central California, 5.125%, 2/01/13 .............................................................................. $ 1,375,000 $ 1,400,864 5.25%, 2/01/14 ............................................................................... 1,435,000 1,468,091 5.75%, 2/01/16 ............................................................................... 1,585,000 1,652,410 Central Valley Financing Authority Cogeneration Project Revenue, Carson Ice General Project, Refunding, MBIA Insured, 5.00%, 7/01/17 ........................................................ 2,000,000 2,068,440 Cerritos PFAR Tax Allocation, Redevelopment Project, Series A, AMBAC Insured, 3.00%, 11/01/11 ....................................................................................... 2,585,000 2,467,305 Chaffey Community College District COP, Pre-Refunded, 5.10%, 9/01/13 ............................. 1,860,000 1,963,583 Clovis MFR, Mandatory Put 11/01/10, Refunding, FNMA Insured, 5.10%, 11/01/30 ..................... 4,105,000 4,183,529 Clovis USD, GO, Capital Appreciation, Election of 2004, Series A, FGIC Insured, zero cpn., 8/01/17 ........................................................................................ 5,235,000 3,184,084 Coalinga COP, Custody Facility, Refunding, 4.25%, 4/01/10 ........................................ 1,000,000 1,002,540 Compton COP, Civic Center and Capital Improvement, Refunding, Series A, 5.00%, 9/01/08 ............................................................................... 4,340,000 4,441,426 5.50%, 9/01/15 ............................................................................... 1,180,000 1,227,058 Conejo Valley USD, GO, Election of 1998, Series C, FSA Insured, zero cpn., 8/01/17 .................................................... 2,500,000 1,517,200 Series D, FGIC Insured, 4.50%, 8/01/18 ....................................................... 3,850,000 3,943,824 Series D, FGIC Insured, 4.50%, 8/01/19 ....................................................... 4,000,000 4,077,720 Contra Costa Community College District GO, Election of 2002, FGIC Insured, 4.75%, 8/01/18 ........................................................................................ 2,450,000 2,525,386 Corona PFA Lease Revenue, City Hall Project, Series B, MBIA Insured, 3.75%, 9/01/13 ............................................................................... 1,000,000 991,670 4.00%, 9/01/14 ............................................................................... 1,210,000 1,215,397 Corona-Norco USD, PFA Special Tax Revenue, Series A, 5.25%, 9/01/25 .............................. 2,235,000 2,234,888 Duarte RDA Tax Allocation, Merged Redevelopment Project Area, Refunding, 5.125%, 10/01/16 ....................................................................................... 3,435,000 3,515,070 Fairfax School District GO, Election of 2000, Series A, FGIC Insured, 5.00%, 11/01/17 ............ 880,000 926,121 Fairfield Suisun Sewer District Sewer Revenue, Series A, Refunding, FGIC Insured, 5.00%, 5/01/12 ........................................................................................ 600,000 636,960 Folsom PFA Lease Revenue, City Hall and Community Center, Refunding, FSA Insured, 5.00%, 10/01/17 ....................................................................................... 1,275,000 1,350,034 Foothill/Eastern Corridor Agency Toll Road Revenue, Refunding, MBIA Insured, 5.00%, 1/15/16 ........................................................................................ 1,000,000 1,050,840 Fremont UHSD Santa Clara County GO, Series C, FSA Insured, Pre-Refunded, 4.25%, 9/01/13 ........................................................................................ 1,310,000 1,346,955 Fresno USD, GO, Election of 2001, Series D, MBIA Insured, 5.00%, 8/01/21 ......................... 1,355,000 1,437,831 Galt Capital Improvements Authority Lease Revenue, Culture and Recreation Improvement Project, 5.00%, 4/01/12 ........................................................................ 2,390,000 2,451,399 Galt Middle School Joint Powers Authority Special Tax, CFD No. 1, Refunding, 5.40%, 9/01/12 ........................................................................................ 1,955,000 2,024,187 Garden Grove Agency Community Development Tax Allocation, Garden Grove Community Project, Refunding, AMBAC Insured, 4.25%, 10/01/13 ............................................. 2,025,000 2,077,265
Quarterly Statements of Investments | 17 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Asset Backed, ETM, 5.00%, 6/01/12 ................................................................................. $ 1,500,000 $ 1,597,050 Hi-Desert Memorial Health Care District Revenue, Refunding, 5.10%, 10/01/06 .............................................................................. 615,000 615,400 5.125%, 10/01/07 ............................................................................. 650,000 649,766 Huntington Beach City and School District COP, Series A, FGIC Insured, Pre-Refunded, 5.00%, 8/01/18 ........................................................................................ 1,245,000 1,324,331 Huntington Beach PFAR, Lease Capital Improvement Refinancing Project, Series B, AMBAC Insured, 4.00%, 8/01/13 ............................................................................... 1,500,000 1,511,310 4.125%, 8/01/14 .............................................................................. 2,140,000 2,167,585 4.25%, 8/01/15 ............................................................................... 2,080,000 2,112,635 Inland Empire Solid Waste Financing Authority Revenue, Landfill Improvement Financing Project, Series B, FSA Insured, ETM, 6.25%, 8/01/11 ............................................ 1,000,000 1,063,280 Irvine 1915 Act GO, AD No. 03-19, Group 2, 4.875%, 9/02/16 .............................................................................. 1,000,000 1,004,410 5.00%, 9/02/18 ............................................................................... 1,000,000 999,040 5.125%, 9/02/19 .............................................................................. 1,000,000 1,003,000 Irvine 1915 Act Special Assessment, AD No. 00-18, Group 2, 4.375%, 9/02/10 ..................................................................... 885,000 885,496 Group 2, 4.70%, 9/02/12 ...................................................................... 1,475,000 1,494,485 Group 2, 4.80%, 9/02/13 ...................................................................... 1,175,000 1,192,425 Group 2, 5.125%, 9/02/17 ..................................................................... 1,705,000 1,720,209 Group 3, 4.75%, 9/02/15 ...................................................................... 1,000,000 999,210 Group 3, 5.00%, 9/02/17 ...................................................................... 1,000,000 1,002,410 Kings River Conservation District Pine Flat Power Revenue, Refunding, Series E, 5.125%, 1/01/18 ........................................................................................ 1,735,000 1,815,348 Lake Elsinore PFA Tax Allocation Revenue, Lake Elsinore Redevelopment Projects, Series A, FSA Insured, 5.40%, 9/01/08 .................. 945,000 946,247 Series A, 5.00%, 9/01/09 ..................................................................... 1,230,000 1,245,289 Lake Elsinore School Financing Authority Revenue, Refunding, 6.00%, 9/01/11 ...................... 1,000,000 1,041,660 Lancaster COP, School District Project, Refunding, FSA Insured, 5.125%, 4/01/14 .................. 2,000,000 2,092,520 Las Virgenes USD, GO, Series D, FGIC Insured, 3.30%, 9/01/13 ..................................... 1,415,000 1,359,065 Lemon Grove CDA Tax Allocation, 1998, Refunding, 5.00%, 8/01/06 ............................................................................... 195,000 195,347 5.10%, 8/01/07 ............................................................................... 205,000 206,837 5.20%, 8/01/08 ............................................................................... 215,000 218,412 Loma Linda Hospital Revenue, Loma Linda University Medical Center, Series A, 5.00%, 12/01/19 ....................................................................................... 5,000,000 5,099,500 Long Beach Community College District GO, Election of 2002, Series B, FGIC Insured, 5.00%, 5/01/17 ........................................................................................ 1,000,000 1,069,150 Los Angeles Convention and Exhibition Center Authority Lease Revenue, Refunding, Series A, AMBAC Insured, 3.00%, 8/15/12 .................................................................. 4,525,000 4,284,134 Los Angeles County MTA, Sales Tax Revenue, Proposition A, first tier, Refunding, Series A, FSA Insured, 5.00%, 7/01/15 .................................................................... 5,345,000 5,602,415 Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Project, Refunding, Series A, FSA Insured, 5.00%, 10/01/17 .............................................. 1,000,000 1,062,160
18 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Los Angeles USD, COP, Refunding, Series A, AMBAC Insured, 4.00%, 10/01/13 ..................................... $ 4,415,000 $ 4,445,110 GO, Election of 2004, Series C, FGIC Insured, 5.00%, 7/01/19 ................................. 2,035,000 2,150,161 GO, Election of 2005, Series C, AMBAC Insured, 5.00%, 7/01/21 ................................ 8,420,000 8,935,725 GO, Refunding, MBIA Insured, 5.25%, 7/01/13 .................................................. 3,500,000 3,813,705 Los Angeles Wastewater System Revenue, Series A, FGIC Insured, Pre-Refunded, 5.00%, 6/01/14 ........................................................................................ 1,075,000 1,118,806 Lynwood PFAR, Water System Improvement Project, 6.15%, 6/01/08 ................................... 435,000 444,300 M-S-R Public Power Agency San Juan Project Revenue, Refunding, Series I, MBIA Insured, 4.25%, 7/01/11 ............................................................................... 5,055,000 5,210,391 5.00%, 7/01/18 ............................................................................... 1,000,000 1,042,940 Metropolitan Water District Southern California GO, Waterworks, Series B, Pre-Refunded, 4.125%, 3/01/13 .............................................................................. 1,000,000 1,022,480 4.25%, 3/01/14 ............................................................................... 1,000,000 1,028,060 4.30%, 3/01/15 ............................................................................... 1,000,000 1,030,280 Montebello USD, GO, Capital Appreciation, FGIC Insured, zero cpn., 8/01/18 ...................................................................................... 1,455,000 838,822 8/01/19 ...................................................................................... 1,480,000 812,757 Moreno Valley USD, GO, Election of 2004, Series A, FSA Insured, 5.00%, 8/01/17 ...................................................................................... 2,000,000 2,128,620 8/01/18 ...................................................................................... 2,300,000 2,439,587 Morgan Hill USD, GO, FGIC Insured, 4.25%, 8/01/14 ................................................ 1,585,000 1,618,412 Moulton-Niguel Water District GO, Consolidated, Refunding, AMBAC Insured, 5.00%, 9/01/16 ....................................... 3,520,000 3,763,866 Refunding, AMBAC Insured, 4.00%, 9/01/12 ..................................................... 2,930,000 2,977,964 Murrieta COP, Road Improvement Project, 6.00%, 4/01/07 ...................................................................................... 235,000 240,523 4/01/08 ...................................................................................... 245,000 252,612 Nevada County COP, Refunding, MBIA Insured, 4.125%, 10/01/12 ..................................... 1,040,000 1,054,539 Newport Mesa USD, GO, MBIA Insured, 4.00%, 8/01/12 ............................................... 1,000,000 1,017,300 North City West School Facilities Financing Authority Special Tax, Refunding, Series B, FSA Insured, 5.625%, 9/01/08 ....................................................................... 500,000 514,380 Orange County CFD No. 86-2 Special Tax, Rancho Santa Margarita, Refunding, Series A, 5.375%, 8/15/12 ................................................................................ 1,500,000 1,568,865 Orange County CFD Special Tax, No. 02-1, Ladera Ranch, Series A, 4.60%, 8/15/14 ............................................. 1,000,000 1,011,500 No. 02-1, Ladera Ranch, Series A, 4.75%, 8/15/15 ............................................. 1,000,000 1,014,750 No. 02-1, Ladera Ranch, Series A, 4.90%, 8/15/16 ............................................. 1,285,000 1,305,277 No. 03-1, Ladera Ranch, Series A, 4.90%, 8/15/17 ............................................. 1,000,000 1,012,890 No. 03-1, Ladera Ranch, Series A, 5.10%, 8/15/18 ............................................. 1,000,000 1,018,360 No. 04-1, Ladera Ranch, Series A, 4.70%, 8/15/18 ............................................. 1,765,000 1,748,585 No. 04-1, Ladera Ranch, Series A, 4.80%, 8/15/19 ............................................. 1,945,000 1,931,638 No. 04-1, Ladera Ranch, Series A, 4.85%, 8/15/20 ............................................. 2,000,000 1,983,560 Orange County Recovery COP, Series A, MBIA Insured, ETM, 6.00%, 7/01/08 .......................... 1,500,000 1,580,985 Oroville Hospital Revenue, Oroville Hospital, Series A, California Mortgage Insured, 5.125%, 12/01/12 ....................................................................................... 1,435,000 1,466,441
Quarterly Statements of Investments | 19 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Oxnard Harbor District Revenue, Series A, 5.10%, 8/01/14 ......................................... $ 1,000,000 $ 1,013,950 Pajaro Valley USD, GO, Election of 2002, Series A, FSA Insured, Pre-Refunded, 5.00%, 8/01/16 ........................................................................................ 1,500,000 1,611,060 Palm Desert Financing Authority Lease Revenue, Blythe County Administrative Project, Pre-Refunded, 6.375%, 8/01/11 .................................................................. 855,000 879,915 Palm Desert Financing Authority Tax Allocation Revenue, Refunding, MBIA Insured, 4.75%, 8/01/18 ........................................................................................ 1,050,000 1,087,905 Pleasanton USD, GO, Refunding, Series C, MBIA Insured, 5.00%, 8/01/14 ............................ 3,535,000 3,808,892 Pomona RDA Tax Allocation, Mountain Meadows Redevelopment Project, Refunding, Series X, 5.35%, 12/01/16 ................................................................................ 1,000,000 1,063,420 Poway RDA Tax Allocation, Paguay Redevelopment Project, Series A, MBIA Insured, 4.50%, 6/15/14 ........................................................................................ 4,595,000 4,745,854 Redlands USD, GO, Election of 2002, FSA Insured, 5.00%, 7/01/19 .................................. 1,000,000 1,054,540 Richmond Joint Powers Financing Authority Revenue, Multiple Redevelopment Projects, Series B, ETM, 5.35%, 5/15/13 .................................................................. 2,000,000 2,102,380 Riverside County COP, Capital Improvement, Family Law, Refunding, Series A, FGIC Insured, 5.00%, 11/01/18 ..................................................................................... 1,540,000 1,620,111 11/01/19 ..................................................................................... 1,615,000 1,692,552 Riverside County Housing Authority MFHR, Brandon Place Apartments, Mandatory Put 7/01/09, Series B, FNMA Insured, 5.625%, 7/01/29 ........................................................ 985,000 1,015,821 Riverside USD, GO, Election, Series A, FGIC Insured, 4.00%, 2/01/13 .............................. 1,000,000 1,010,080 Sacramento City USD, GO, Election of 1999, Series D, FSA Insured, 5.00%, 7/01/19 ................. 1,465,000 1,544,901 Sacramento MUD Financing Authority Revenue, Cosumnes Project, MBIA Insured, 5.00%, 7/01/21 ........................................................................................ 3,305,000 3,494,773 San Bernardino City USD, GO, Refunding, FSA Insured, 5.00%, 8/01/17 .................................................................. 2,615,000 2,783,171 FSA Insured, 5.00%, 8/01/18 .................................................................. 1,140,000 1,209,187 Series A, FSA Insured, 5.00%, 8/01/19 ........................................................ 1,680,000 1,775,894 San Bernardino County COP, Medical Center Financing Project, Refunding, 6.00%, 8/01/09 ........... 2,000,000 2,125,080 San Francisco BART District Sales Tax Revenue, Refunding, Series A, MBIA Insured, 5.00%, 7/01/20 ........................................................................................ 5,000,000 5,307,300 San Francisco City and County Airports Commission International Airport Revenue, Issue 30, Refunding, Second Series, XLCA Insured, 4.00%, 5/01/14 ......................................... 2,500,000 2,496,525 San Francisco City and County GO, Refunding, Series 1, FGIC Insured, 5.00%, 6/15/12 .............. 3,650,000 3,785,962 San Francisco City and County Redevelopment Financing Authority Tax Allocation, Redevelopment Projects, Series A, Pre-Refunded, zero cpn., 8/01/17 ............................. 3,825,000 2,183,042 San Joaquin County COP, General Hospital Project, Refunding, MBIA Insured, 5.00%, 9/01/17 ............................ 1,000,000 1,040,890 Solid Waste System Facilities Projects, MBIA Insured, 4.00%, 4/01/12 ......................... 2,925,000 2,973,321 Solid Waste System Facilities Projects, MBIA Insured, 5.00%, 4/01/17 ......................... 1,340,000 1,414,303 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, zero cpn. to 1/15/07, 5.60% thereafter, 1/15/16 ........................... 3,000,000 2,862,750 San Jose MFHR, Countrybrook Project, Refunding, Series A, FNMA Insured, 4.95%, 4/01/12 ........... 4,520,000 4,638,560
20 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) San Marcos Public Facilities Authority Revenue, Senior Tax Increment Project Area 3, Series A, MBIA Insured, ETM, 5.10%, 10/01/09 ......................................................................... $ 515,000 $ 540,977 Pre-Refunded, 5.30%, 10/01/11 ................................................................ 350,000 380,272 Santa Ana COP, Refunding, Series A, AMBAC Insured, 4.25%, 6/01/13 ................................ 1,405,000 1,445,998 Santa Ana USD, GO, Election of 1999, Series B, FGIC Insured, zero cpn., 8/01/14 .................. 3,125,000 2,209,375 Santa Clara 1915 Act, Reassessment District 187, Refunding, Series 1, 5.25%, 9/02/11 ............. 1,720,000 1,776,124 Santa Clara County Financing Authority Lease Revenue, Multiple Facilities Projects, Refunding, Series A, AMBAC Insured, 4.50%, 5/15/12 ........................................................ 2,900,000 2,965,105 Santa Monica-Malibu USD, COP, Series C, MBIA Insured, 4.00%, 5/01/12 ............................................................................... 525,000 528,827 4.25%, 5/01/14 ............................................................................... 840,000 851,844 4.25%, 5/01/15 ............................................................................... 875,000 884,931 4.25%, 11/01/15 .............................................................................. 670,000 677,605 South County Regional Wastewater Authority Revenue, Regional Wastewater Facilities Project, Refunding, FSA Insured, 3.25%, 8/01/11 ......................................................... 1,000,000 976,300 South Gate PFA Tax Allocation Revenue, South Gate Redevelopment Project No. 1, XLCA Insured, 5.00%, 9/01/16 ........................................................................ 2,000,000 2,120,980 South Gate PFA Water Revenue, Refunding, Series A, FGIC Insured, 5.35%, 10/01/07 .............................................................................. 995,000 1,022,353 5.45%, 10/01/08 .............................................................................. 1,040,000 1,088,693 Stockton Health Facilities Revenue, Dameron Hospital Assn., Refunding, Series A, 5.35%, 12/01/09 ....................................................................................... 385,000 401,070 Stockton Port District Port Facilities Revenue, Refunding and Improvement, Series A, FSA Insured, 5.75%, 7/01/11 ........................................................................ 1,295,000 1,355,075 Stockton Revenue, O'Connor Woods Housing Corp., Series A, 5.375%, 11/01/11 ....................... 1,200,000 1,222,764 Sunline Transport Agency COP, Transport Finance Corp., Series B, 5.75%, 7/01/06 .................. 445,000 447,207 Sweetwater Authority Water Revenue, AMBAC Insured, 5.00%, 4/01/18 ................................ 2,860,000 3,010,121 Sweetwater UHSD, COP, FSA Insured, 4.15%, 9/01/12 ................................................ 1,000,000 1,017,430 Tobacco Securitization Authority Northern California Tobacco Settlement Revenue, Asset Backed Bonds, Series B, ETM, 4.25%, 6/01/09 .......................................................................... 880,000 897,406 ETM, 4.375%, 6/01/10 ......................................................................... 1,665,000 1,713,019 ETM, 4.50%, 6/01/11 .......................................................................... 1,540,000 1,599,475 Pre-Refunded, 4.60%, 6/01/12 ................................................................. 1,760,000 1,836,173 Pre-Refunded, 4.70%, 6/01/13 ................................................................. 1,500,000 1,571,910 Pre-Refunded, 4.80%, 6/01/14 ................................................................. 725,000 763,128 Torrance Hospital Revenue, Torrance Memorial Medical Center, Series A, 5.10%, 6/01/12 ............ 1,000,000 1,052,750 University of California Revenues, Ltd. Project, Series B, FSA Insured, 5.00%, 5/15/21 .......................................... 5,000,000 5,254,800 Multi Purpose Projects, Series N, FGIC Insured, 4.00%, 9/01/12 ............................... 1,380,000 1,397,374 Research Facilities, Series E, AMBAC Insured, 5.00%, 9/01/15 ................................. 3,645,000 3,839,351 Victor Valley UHSD, COP, Refunding, AMBAC Insured, 5.00%, 11/15/21 ............................... 1,140,000 1,201,594 West Contra Costa USD, GO, Series B, FSA Insured, 4.00%, 8/01/12 ................................. 1,875,000 1,902,150
Quarterly Statements of Investments | 21 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) Whittier Health Facility Revenue, Presbyterian Intercommunity Hospital, 5.00%, 6/01/11 ...................................................................................... $ 1,060,000 $ 1,097,895 6/01/12 ...................................................................................... 2,225,000 2,310,774 6/01/13 ...................................................................................... 2,335,000 2,421,512 Whittier UHSD, GO, Refunding, MBIA Insured, 5.00%, 8/01/20 ....................................... 6,075,000 6,436,705 Yucaipa Valley Water District Water System Revenue COP, Series A, MBIA Insured, 5.00%, 9/01/15 ............................................................................... 1,080,000 1,160,406 5.25%, 9/01/20 ............................................................................... 1,325,000 1,426,508 ------------ 468,344,518 ------------ U.S. TERRITORIES 2.2% PUERTO RICO 0.6% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.25%, 7/01/16 ..................... 2,500,000 2,744,850 ------------ VIRGIN ISLANDS 1.6% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 ........................................ 4,150,000 4,325,919 Refunding, Series A, 5.30%, 10/01/11 ......................................................... 1,000,000 1,036,670 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 4.875%, 7/01/06 .............................................................................. 500,000 500,410 5.00%, 7/01/09 ............................................................................... 2,000,000 2,024,880 ------------ 7,887,879 ------------ TOTAL U.S. TERRITORIES ........................................................................... 10,632,729 ------------ TOTAL LONG TERM INVESTMENTS (COST $471,244,950) .................................................. 478,977,247 ------------ SHORT TERM INVESTMENTS 0.7% BONDS 0.7% CALIFORNIA 0.7% a California State Department of Water Resources Power Supply Revenue, Refunding, Sub Series F-1, Daily VRDN and Put, 3.10%, 5/01/19 ................................ 100,000 100,000 Series B-6, Daily VRDN and Put, 3.10%, 5/01/22 ............................................... 1,000,000 1,000,000 a California State Economic Recovery Revenue, Series C-6, Daily VRDN and Put, 3.07%, 7/01/23 ........................................................................................ 600,000 600,000 a Daly City HFA, MFR, Refunding, Weekly VRDN and Put, 3.13%, 10/15/29 .............................. 100,000 100,000 a Metropolitan Water District Southern California Waterworks Revenue, Series C-2, Daily VRDN and Put, 3.07%, 7/01/36 ........................................................................ 800,000 800,000 a Orange County Sanitation District COP, Daily VRDN and Put, 3.13%, 2/01/36 ........................................................... 500,000 500,000 Refunding, Series B, Daily VRDN and Put, 3.10%, 8/01/30 ...................................... 500,000 500,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,600,000) ................................................... 3,600,000 ------------
22 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND VALUE ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (COST $474,844,950) 98.9% ...................................................... $482,577,247 OTHER ASSETS, LESS LIABILITIES 1.1% .............................................................. 5,243,000 ------------ NET ASSETS 100.0% ................................................................................ $487,820,247 ============
See Selected Portfolio Abbreviations on page 30. a Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 23 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 102.8% BONDS 102.8% CALIFORNIA 92.9% Brea Olinda USD, GO, Election of 1999, Series A, FGIC Insured, 2.60%, 8/01/09 ...................... $ 120,000 $ 115,858 Cajon Valley Unified Elementary School District COP, MBIA Insured, 2.50%, 5/01/08 .................. 250,000 242,797 California Educational Facilities Authority Revenue, Santa Clara University, Series A, FSA Insured, 2.625%, 9/01/09 .................................................................................. 100,000 96,123 California Health Facilities Financing Authority Revenue, Catholic Healthcare West, Series G, 5.00%, 7/01/09 ................................................................................... 750,000 778,065 California State Economic Recovery GO, Series A, 5.00%, 1/01/09 .................................... 415,000 429,782 California State Public Works Board Lease Revenue, Department of Corrections, Series C, 5.00%, 6/01/07 .......................................................................................... 500,000 507,660 California State University at Channel Islands Financing Authority Revenue, Rental Housing and Town Center, Mandatory Put 8/01/07, Series A, 2.50%, 8/01/44 ..................................... 750,000 736,290 California Statewide CDA Revenue, Kaiser Permanente, Mandatory Put 5/01/07, Series G, 2.30%, 4/01/34 ............................. 400,000 394,324 Viewpoint School, ACA Insured, 3.50%, 10/01/08 ................................................. 320,000 310,851 Chaffey Joint UHSD, COP, Refunding, 3.00%, 5/01/08 ................................................. 250,000 246,465 Costa Mesa RDA Tax Allocation, Downtown Redevelopment Project, FSA Insured, 2.50%, 10/01/08 ......................................................................................... 265,000 256,955 Evergreen School District GO, Refunding, Series D, FGIC Insured, 2.75%, 9/01/08 .................... 150,000 146,354 Foothill-De Anza Community College District GO, Election of 1999, Series B, 2.60%, 8/01/08 ......... 100,000 96,996 Glendale USD, GO, Series F, MBIA Insured, 2.50%, 9/01/08 ........................................... 200,000 193,452 Glendora PFAR Tax Allocation, Project No. 1, Refunding, Series A, MBIA Insured, 2.00%, 9/01/07 ................................................................................. 100,000 97,082 2.125%, 9/01/08 ................................................................................ 105,000 100,266 Inglewood USD, GO, Election of 1998, Series C, FSA Insured, 2.50%, 10/01/08 ........................ 265,000 256,054 Lodi USD, COP, Capital Projects, Refunding, FSA Insured, 3.00%, 2/01/08 ............................ 110,000 108,647 Lompoc USD, GO, Election of 2002, Series B, MBIA Insured, 3.50%, 6/01/07 ........................... 335,000 335,291 Los Angeles Convention and Exhibition Center Authority Lease Revenue, Refunding, Series A, AMBAC Insured, 3.25%, 8/15/09 .................................................................... 250,000 247,022 Los Angeles County MTA, Sales Tax Revenue, Proposition A, first tier, Refunding, senior series A, FSA Insured, 2.50%, 7/01/07 ...................................................................... 100,000 98,313 Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Project, Refunding, Series A, FSA Insured, 4.00%, 10/01/08 ........................................................... 500,000 506,265 Lynwood USD, GO, Election of 2002, Series A, FSA Insured, 4.00%, 8/01/10 ........................... 100,000 101,784 Manteca USD Special Tax, CFD No. 89-1, AMBAC Insured, 2.50%, 9/01/08 ............................... 250,000 241,403 North Orange County Community College District GO, Election of 2002, Series B, FGIC Insured, 2.125%, 8/01/08 .................................................................................. 500,000 478,425 Placer County Water Agency Water Revenue COP, Refunding, MBIA Insured, 2.375%, 7/01/07 ............. 105,000 103,009 Pleasanton GO, FSA Insured, 3.25%, 8/01/08 ......................................................... 725,000 721,447 Poway RDA Tax Allocation, Paguay Redevelopment Project, Series A, MBIA Insured, 3.00%, 6/15/09 .......................................................................................... 100,000 97,601 Rio Linda Unified Elementary School District, Election of 2002, Series A, FSA Insured, 4.00%, 8/01/10 .......................................................................................... 100,000 101,784 Riverside County Asset Leasing Corp. Leasehold Revenue, Hospital Project, Refunding, Series A, MBIA Insured, 3.00%, 6/01/08 ..................................................................... 115,000 112,761 Sacramento Power Authority Cogeneration Project Revenue, Refunding, AMBAC Insured, 4.00%, 7/01/08 .......................................................................................... 1,000,000 1,008,060
24 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) BONDS (CONTINUED) CALIFORNIA (CONTINUED) San Diego Regional Building Authority Lease Revenue, San Miguel Conservation Fire District, Refunding, AMBAC Insured, 3.00%, 1/01/08 ......................................................... $ 240,000 $ 237,175 San Francisco City and County Public Utility Commission Warrant Revenue, Refunding, Series A, MBIA Insured, 3.00%, 10/01/08 .................................................................... 100,000 98,362 San Mateo Foster City School District GO, Refunding, FSA Insured, 2.50%, 9/01/08 ................... 200,000 193,452 Santa Clara Electric Revenue, Sub Series A, MBIA Insured, 3.00%, 7/01/09 ........................... 225,000 219,924 Sonoma County COP, Series A, Refunding, MBIA Insured, 3.00%, 11/15/08 .............................. 250,000 245,712 University of California Revenues, General, Refunding, Series A, AMBAC Insured, 5.00%, 5/15/08 .......................................................................................... 500,000 515,320 ----------- 10,777,131 ----------- U.S. TERRITORIES 9.9% GUAM 2.1% Guam International Airport Authority Revenue, Series A, MBIA Insured, 2.375%, 10/01/08 ............. 250,000 238,748 ----------- PUERTO RICO 7.8% Puerto Rico Commonwealth GO, Public Improvement, Mandatory Put 7/01/08, Refunding, Series C, MBIA Insured, 5.00%, 7/01/28 ........................................................... 200,000 205,482 Puerto Rico Commonwealth Highway and Transportation Authority Revenue, Series AA, FGIC Insured, 2.625%, 7/01/08 ......................................................................... 300,000 290,889 a Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Revenue, Ana G. Mendez University System Project, 5.00%, 3/01/07 ............. 405,000 408,912 ----------- 905,283 ----------- TOTAL U.S. TERRITORIES ............................................................................. 1,144,031 ----------- TOTAL LONG TERM INVESTMENTS (COST $12,190,215) ..................................................... 11,921,162 ----------- SHORT TERM INVESTMENTS 2.6% BONDS 2.6% CALIFORNIA 2.6% b Irvine Ranch Water District Revenue, Nos. 105 140 240 and 250, Daily VRDN and Put, 3.10%, 4/01/33 ................................................................................... 200,000 200,000 b Los Angeles Department of Water and Power Waterworks Revenue, Sub Series B-2, Daily VRDN and Put, 3.10%, 7/01/35 .......................................................................... 100,000 100,000 ----------- TOTAL SHORT TERM INVESTMENTS (COST $300,000) ....................................................... 300,000 ----------- TOTAL INVESTMENTS (COST $12,490,215) 105.4% ........................................................ 12,221,162 OTHER ASSETS, LESS LIABILITIES (5.4)% .............................................................. (621,407) ----------- NET ASSETS 100.0% .................................................................................. $11,599,755 ===========
See Selected Portfolio Abbreviations on page 30. a Security purchased on a when-issued or delayed delivery basis. b Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 25 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ BONDS 99.7% CALIFORNIA 99.7% a Alameda County IDAR, United Manufacturing Project, Series A, Weekly VRDN and Put, 3.18%, 6/01/30 ................................................................................. $ 1,000,000 $ 1,000,000 a Bay Area Toll Authority Toll Bridge Revenue, San Francisco Bay Area, Series A, AMBAC Insured, Weekly VRDN and Put, 3.05%, 4/01/36 ................................. 12,500,000 12,500,000 Series B, AMBAC Insured, Weekly VRDN and Put, 3.12%, 4/01/39 ................................. 15,800,000 15,800,000 a Butte County Housing Authority MFR, Pine Tree Apartment Project, Weekly VRDN and Put, 3.15%, 12/01/10 ................................................................................ 1,337,000 1,337,000 a California Health Facilities Financing Authority Revenue, Catholic Healthcare West, MBIA Insured, Weekly VRDN and Put, 3.16%, 7/01/16 .................. 3,955,000 3,955,000 Pooled Loan Program, Series B, FGIC Insured, Weekly VRDN and Put, 3.15%, 10/01/10 ............ 2,300,000 2,300,000 Scripps Health, Series A, MBIA Insured, Weekly VRDN and Put, 3.00%, 10/01/22 ................. 3,200,000 3,200,000 a California Infrastructure and Economic Development Bank Revenue, Goodwill Industries Orange County, Weekly VRDN and Daily Put, 3.11%, 3/01/31 ................. 2,000,000 2,000,000 Independent System Operating Corp. Project, Refunding, Series B, MBIA Insured, Weekly VRDN and Put, 3.10%, 4/01/08 ................................................................ 4,900,000 4,900,000 Independent System Operating Corp. Project, Refunding, Series C, MBIA Insured, Weekly VRDN and Put, 3.13%, 4/01/09 ................................................................ 11,000,000 11,000,000 J. Paul Getty Trust, Refunding, Series B, Annual VRDN and Put, 3.25%, 4/01/33 ................ 9,000,000 9,000,000 California School Cash Reserve Program Authority Revenue, Pool, Series A, AMBAC Insured, 4.00%, 7/06/06 ................................................................................. 7,500,000 7,526,906 a California State Department of Water Resources Power Supply Revenue, Refunding, Sub Series F-1, Daily VRDN and Put, 3.10%, 5/01/19 ................................ 3,300,000 3,300,000 Series B-2, Daily VRDN and Put, 3.07%, 5/01/22 ............................................... 3,750,000 3,750,000 Series B-5, Daily VRDN and Put, 3.16%, 5/01/22 ............................................... 2,800,000 2,800,000 Series C-8, Weekly VRDN and Put, 3.09%, 5/01/22 .............................................. 6,000,000 6,000,000 Series C-9, Weekly VRDN and Put, 3.10%, 5/01/22 .............................................. 20,000,000 20,000,000 Series C-12, Weekly VRDN and Put, 3.13%, 5/01/22 ............................................. 6,700,000 6,700,000 a California State Economic Development Financing Authority Revenue, Calco Project, Weekly VRDN and Put, 3.24%, 4/01/27 ........................................... 1,440,000 1,440,000 KQED Inc. Project, Refunding, Weekly VRDN and Put, 3.13%, 4/01/20 ............................ 990,000 990,000 a California State Economic Recovery Revenue, Series C-3, Daily VRDN and Put, 3.16%, 7/01/23 ............................................... 8,625,000 8,625,000 Series C-7, Daily VRDN and Put, 3.07%, 7/01/23 ............................................... 11,100,000 11,100,000 Series C-9, Daily VRDN and Put, 3.07%, 7/01/23 ............................................... 1,500,000 1,500,000 Series C-11, Weekly VRDN and Put, 3.15%, 7/01/23 ............................................. 4,800,000 4,800,000 Series C-15, FSA Insured, Weekly VRDN and Put, 3.10%, 7/01/23 ................................ 3,000,000 3,000,000 a California State GO, Daily Kindergarten University, Refunding, Series A-3, Daily VRDN and Put, 3.04%, 5/01/34 ..................................................................................... 11,925,000 11,925,000 Daily Kindergarten University, Refunding, Series B-2, Daily VRDN and Put, 3.07%, 5/01/34 ..................................................................................... 1,150,000 1,150,000 Daily Kindergarten University, Series B-3, Daily VRDN and Put, 3.06%, 5/01/34 ................ 5,400,000 5,400,000 Refunding, Series B, Sub Series B-7, Daily VRDN and Put, 3.15%, 5/01/40 ...................... 2,700,000 2,700,000 Series A-3, Daily VRDN and Put, 3.16%, 5/01/33 ............................................... 1,625,000 1,625,000 Series C-2, Weekly VRDN and Put, 3.13%, 5/01/33 .............................................. 6,700,000 6,700,000 California State RAN, 4.50%, 6/30/06 ............................................................. 15,000,000 15,054,407 California State University Revenue, TECP, 3.20%, 5/09/06 ........................................ 29,535,000 29,535,000
26 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ BONDS (CONTINUED) CALIFORNIA (CONTINUED) California Statewide CDA Revenue, a North Peninsula Jewish, Daily VRDN and Put, 3.14%, 7/01/34 ....................................... $ 3,000,000 $ 3,000,000 Series A-5, 4.00%, 6/30/06 ................................................................... 25,000,000 25,082,892 a Carlsbad USD, COP, School Facility Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.13%, 9/01/14 ............................................................................ 500,000 500,000 a Chico MFMR, Webb Homes Project, Monthly VRDN and Put, 3.06%, 1/01/10 ............................. 1,020,000 1,020,000 a Chino Basin Regional Financing Authority Revenue, Inland Empire Utilities, Series A, AMBAC Insured, Weekly VRDN and Put, 3.12%, 6/01/32 ................................................... 5,380,000 5,380,000 a Commerce Joint Powers Financing Authority IDR, Weekly VRDN and Put, 3.18%, 11/01/14 .............. 1,490,000 1,490,000 a Eastern Municipal Water District Water and Sewer Revenue COP, Refunding, Series B, MBIA Insured, Weekly VRDN and Put, 3.13%, 7/01/33 ................................................... 2,465,000 2,465,000 a Elsinore Valley Municipal Water District COP, Series A, FGIC Insured, Weekly VRDN and Put, 3.13%, 7/01/29 ................................................................................. 15,000,000 15,000,000 a Fremont PFA, COP, Weekly VRDN and Put, 3.15%, 8/01/30 ............................................ 5,700,000 5,700,000 a Glendale COP, Police Building Project, Weekly VRDN and Put, 3.17%, 6/01/30 ....................... 27,650,000 27,650,000 a Grant Joint UHSD, COP, School Facilities Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.13%, 9/01/34 ..................................................................................... 4,900,000 4,900,000 Various Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.13%, 7/01/37 ............. 10,000,000 10,000,000 a Hillsborough COP, Water and Sewer System Project, Refunding, Series B, Weekly VRDN and Put, 3.17%, 6/01/30 ............................................................................ 4,200,000 4,200,000 a Irvine 1915 Act Special Assessment, AD No. 00-18, Series A, Daily VRDN and Put, 3.10%, 9/02/26 ................................... 2,227,000 2,227,000 AD No. 03-19, Series A, Daily VRDN and Put, 3.10%, 9/02/29 ................................... 5,571,000 5,571,000 AD No. 93-14, Daily VRDN and Put, 3.16%, 9/02/25 ............................................. 1,256,000 1,256,000 AD No. 94-13, Daily VRDN and Put, 3.10%, 9/02/22 ............................................. 3,600,000 3,600,000 AD No. 97-13, Daily VRDN and Put, 3.10%, 9/02/23 ............................................. 7,754,000 7,754,000 AD No. 97-16, Daily VRDN and Put, 3.10%, 9/02/22 ............................................. 5,795,000 5,795,000 a Irvine Ranch Water District GO, Consolidated ID, Daily VRDN and Put, 3.08%, 6/01/15 .......................................... 2,750,000 2,750,000 Nos. 105 140 240 and 250, Daily VRDN and Put, 3.16%, 1/01/21 ................................. 9,200,000 9,200,000 a Irvine Ranch Water District Revenue, Consolidated Bonds, Daily VRDN and Put, 3.10%, 10/01/10 ...................................... 1,400,000 1,400,000 Consolidated Bonds, Daily VRDN and Put, 3.10%, 8/01/16 ....................................... 400,000 400,000 Nos. 105 140 240 and 250, Daily VRDN and Put, 3.10%, 4/01/33 ................................. 1,000,000 1,000,000 a Los Angeles COP, Kadima Hebrew Academy, Series A, Weekly VRDN and Put, 3.15%, 8/01/35 ........................................................................................ 1,300,000 1,300,000 a Los Angeles County Pension Obligation Revenue, Refunding, Series A, AMBAC Insured, Weekly VRDN and Put, 3.12%, 6/30/07 ................................. 1,100,000 1,100,000 Series B, AMBAC Insured, Weekly VRDN and Put, 3.12%, 6/30/07 ................................. 2,300,000 2,300,000 Los Angeles County TRAN, 4.00%, 6/30/06 .......................................................... 5,950,000 5,970,876 a Los Angeles Department of Water and Power Waterworks Revenue, Sub Series B-4, Weekly VRDN and Put, 3.10%, 7/01/35 ................................................................... 6,650,000 6,650,000 a Los Angeles MFR, Casden Project, Series K, Weekly VRDN and Put, 3.20%, 7/01/10 ................... 145,507 145,507 a Los Angeles Wastewater System Revenue, Refunding, Sub Series A, FGIC Insured, Weekly VRDN and Put, 3.13%, 12/01/31 .................................................................. 5,000,000 5,000,000 a Los Angeles Water and Power Revenue, Refunding, Sub Series B-5, Weekly VRDN and Put, 3.17%, 7/01/34 ................................................................................. 3,700,000 3,700,000
Quarterly Statements of Investments | 27 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ BONDS (CONTINUED) CALIFORNIA (CONTINUED) a Metropolitan Water District Southern California Waterworks Revenue, Refunding, Series A, AMBAC Insured, Weekly VRDN and Put, 3.13%, 6/01/23 ...................... $ 6,275,000 $ 6,275,000 Refunding, Series B-1, Daily VRDN and Put, 3.10%, 7/01/35 .................................... 3,200,000 3,200,000 Refunding, Series B-3, Daily VRDN and Put, 3.16%, 7/01/35 .................................... 4,500,000 4,500,000 Refunding, Series B-4, Weekly VRDN and Put, 3.12%, 7/01/35 ................................... 7,000,000 7,000,000 Refunding, Series C-1, Weekly VRDN and Put, 3.10%, 7/01/30 ................................... 3,000,000 3,000,000 Series C, Weekly VRDN and Put, 3.14%, 7/01/28 ................................................ 13,200,000 13,200,000 Series C-1, Daily VRDN and Put, 2.95%, 7/01/36 ............................................... 3,200,000 3,200,000 a Murrieta Valley USD, COP, School Facility Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.13%, 6/01/23 ........................................................................ 1,700,000 1,700,000 a Northern California Public Power Agency Revenue, Hydroelectric Project No. 1, Refunding, Series A, MBIA Insured, Weekly VRDN and Put, 3.12%, 7/01/23 .................................... 8,700,000 8,700,000 a Oakland COP, Capital Equipment Project, Weekly VRDN and Put, 3.17%, 12/01/15 ..................... 5,700,000 5,700,000 a Orange County Apartment Development Revenue, Aliso Creek Project B, Weekly VRDN and Put, 3.10%, 11/01/22 ................................................................................ 7,000,000 7,000,000 a Orange County Sanitation District COP, Daily VRDN and Put, 3.13%, 2/01/36 ........................................................... 10,000,000 10,000,000 Refunding, Series A, Daily VRDN and Put, 3.10%, 8/01/29 ...................................... 1,000,000 1,000,000 Refunding, Series B, Daily VRDN and Put, 3.10%, 8/01/30 ...................................... 1,100,000 1,100,000 a Pajaro Valley USD, COP, School Facility Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.13%, 9/01/31 ........................................................................ 700,000 700,000 a Rancho Water District Financing Authority Revenue, Refunding, Series A, FGIC Insured, Weekly VRDN and Put, 3.10%, 8/01/29 ....................... 5,700,000 5,700,000 Series B, FGIC Insured, Weekly VRDN and Put, 3.10%, 8/01/31 .................................. 3,880,000 3,880,000 a Riverside County Asset Leasing Corp. Leasehold Revenue, Southwest Justice Center, Series B, MBIA Insured, Weekly VRDN and Daily Put, 3.12%, 11/01/32 ....................................... 5,000,000 5,000,000 a Riverside County COP, Riverside County Public Facilities, ACES, Series B, Weekly VRDN and Put, 3.13%, 12/01/15 ........................................................................... 1,600,000 1,600,000 Riverside County Teeter Obligation Revenue, TECP, 3.26%, 5/04/06 ................................. 2,000,000 2,000,000 a Sacramento County COP, Administration Center and Courthouse Project, Weekly VRDN and Put, 3.15%, 6/01/20 ................................................................................. 15,675,000 15,675,000 a Sacramento County Sanitation District Financing Authority Revenue, Series C, Weekly VRDN and Put, 3.15%, 12/01/30 ....................................................................... 28,600,000 28,600,000 Sacramento County TRAN, Series A, 4.00%, 7/10/06 ................................................. 25,000,000 25,097,460 San Diego County Regional Transportation Commission Sales Tax Revenue, TECP, 3.46%, 7/14/06 ........................................................................................ 4,500,000 4,500,000 a San Francisco City and County RDA, MFR, Fillmore Center, Refunding, Series B-2, Weekly VRDN and Put, 3.18%, 12/01/17 .................................................................. 1,000,000 1,000,000 a San Jose RDAR, Merged Area Redevelopment Project, Series A, Weekly VRDN and Put, 3.12%, 7/01/26 ........................................................................................ 3,300,000 3,300,000 a San Mateo UHSD, COP, School Facility Bridge Funding Program, FSA Insured, Daily VRDN and Put, 3.13%, 9/01/34 ............................................................................ 10,000,000 10,000,000 a Santa Clara County Housing Authority MFHR, Benton Park Central Apartments, Refunding, Series A, FNMA Insured, Weekly VRDN and Put, 3.14%, 12/15/25 ................................... 5,000,000 5,000,000 a South Placer Wastewater Authority Wastewater Revenue, Series B, FGIC Insured, Weekly VRDN and Put, 3.13%, 11/01/35 ....................................................................... 15,400,000 15,400,000 a Southern California Public Power Authority Power Project Revenue, Palo Verde Project, Refunding, Series C, AMBAC Insured, Weekly VRDN and Put, 3.12%, 7/01/17 ........................ 700,000 700,000
28 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ BONDS (CONTINUED) CALIFORNIA (CONTINUED) a Southern California Public Power Authority Transmission Project Revenue, Southern Transmission, Refunding, AMBAC Insured, Weekly VRDN and Put, 3.12%, 7/01/19 ........................................... $13,315,000 $ 13,315,000 Series A, FSA Insured, Weekly VRDN and Put, 3.13%, 7/01/23 ................................... 1,000,000 1,000,000 Series B, FSA Insured, Weekly VRDN and Put, 3.12%, 7/01/23 ................................... 6,600,000 6,600,000 a Stanislaus Waste to Energy Financing Agency Revenue, Solid Waste Facility, Ogden Martin Systems Project, Refunding, MBIA Insured, Weekly VRDN and Put, 3.15%, 1/01/10 .................. 3,000,000 3,000,000 a Turlock Irrigation District COP, Capital Improvement and Refunding Project, Daily VRDN and Put, 3.14%, 1/01/31 ............................................................................ 1,900,000 1,900,000 a Tustin 1915 Act Special Assessment, Reassessment District No. 95-2, Series A, Daily VRDN and Put, 3.10%, 9/02/13 ........................................................................ 16,569,000 16,569,000 a Union City MFR, Housing Mission Sierra, Refunding, Series A, FNMA Insured, Weekly VRDN and Put, 3.14%, 7/15/29 ........................................................................ 2,000,000 2,000,000 a Upland CRDA, MFHR, FNMA Insured, Weekly VRDN and Put, 3.14%, 2/15/30 ............................. 1,000,000 1,000,000 a Vallejo Housing Authority MFR, FNMA Insured, Weekly VRDN and Put, 3.09%, 5/15/22 ................. 1,985,000 1,985,000 a Watereuse Finance Authority Revenue, FSA Insured, Weekly VRDN and Put, 3.07%, 5/01/28 ............ 20,200,000 20,200,000 a Western Placer Union School COP, Facilities Project B, Weekly VRDN and Put, 3.13%, 8/01/23 ........................................................................................ 5,000,000 5,000,000 a Western Riverside County Regional Wastewater Authority Revenue, Regional Wastewater Treatment, Daily VRDN and Put, 3.10%, 4/01/28 .................................................. 1,350,000 1,350,000 ------------ TOTAL BONDS (COST $673,767,048) 99.7% ............................................................ 673,767,048 OTHER ASSETS, LESS LIABILITIES 0.3% .............................................................. 1,721,444 ------------ NET ASSETS 100.0% ................................................................................ $675,488,492 ============
See Selected Portfolio Abbreviations on page 30. a Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 29 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2006 (UNAUDITED) SELECTED PORTFOLIO ABBREVIATIONS 1915 ACT - Improvement Bond Act of 1915 ABAG - The Association of Bay Area Governments ACA - American Capital Access Holdings Inc. ACES - Adjustable Convertible Exempt Securities AD - Assessment District AMBAC - American Municipal Bond Assurance Corp. BART - Bay Area Rapid Transit CDA - Community Development Authority/Agency CFD - Community Facilities District COP - Certificate of Participation CRDA - Community Redevelopment Authority/Agency ETM - Escrow to Maturity FGIC - Financial Guaranty Insurance Co. FNMA - Federal National Mortgage Association FSA - Financial Security Assurance Inc. GNMA - Government National Mortgage Association GO - General Obligation HFA - Housing Finance Authority/Agency HFAR - Housing Finance Authority/Agency Revenue ID - Improvement District IDAR - Industrial Development Authority/Agency Revenue IDR - Industrial Development Revenue MBIA - Municipal Bond Investors Assurance Corp. MFHR - Multi-Family Housing Revenue MFMR - Multi-Family Mortgage Revenue MFR - Multi-Family Revenue MTA - Metropolitan Transit Authority MUD - Municipal Utility District PCFA - Pollution Control Financing Authority PCR - Pollution Control Revenue PFA - Public Financing Authority PFAR - Public Financing Authority Revenue RAN - Revenue Anticipation Notes RDA - Redevelopment Agency/Authority RDAR - Redevelopment Agency Revenue SFM - Single Family Mortgage SFMR - Single Family Mortgage Revenue TECP - Tax-Exempt Commercial Paper TRAN - Tax and Revenue Anticipation Notes UHSD - Unified/Union High School District USD - Unified/Union School District XLCA - XL Capital Assurance 30 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin California Tax-Free Trust NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) Franklin California Tax-Free Trust is registered under the Investment Company Act of 1940 as an open-end investment company, consisting of four series (the Funds). All Funds are diversified except the Franklin California Intermediate-Term Tax-Free Income Fund. 1. INCOME TAXES At March 31, 2006, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
------------------------------------------------------------------- FRANKLIN CALIFORNIA FRANKLIN CALIFORNIA FRANKLIN CALIFORNIA INSURED INTERMEDIATE-TERM LIMITED-TERM TAX-FREE INCOME FUND TAX-FREE INCOME FUND TAX-FREE INCOME FUND ------------------------------------------------------------------- Cost of investments ............. $1,837,224,276 $474,815,578 $12,490,215 ============================================================ Unrealized appreciation ......... $ 128,171,641 $ 9,772,535 $ 77 Unrealized depreciation ......... (1,163,259) (2,010,866) (269,130) ------------------------------------------------------------ Net unrealized appreciation (depreciation) .................. $ 127,008,382 $ 7,761,669 $ (269,053) ============================================================
At March 31, 2006, the cost of investments for book and income tax purposes was the same for Franklin California Tax-Exempt Money Fund. For information on the Funds' policy regarding valuation of investments and other significant accounting policies, please refer to the Funds' most recent semiannual or annual shareholder report. Quarterly Statements of Investments | 31 ITEM 2. CONTROLS AND PROCEDURES. (a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q. ITEM 3. EXHIBITS. (A) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and Galen G. Vetter, Chief Financial Officer. 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. FRANKLIN CALIFORNIA TAX-FREE TRUST By /s/JIMMY D. GAMBILL -------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date May 22, 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 and in the capacities and on the dates indicated. By /s/JIMMY D. GAMBILL ------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date May 22, 2006 By /s/GALEN G. VETTER ------------------ Galen G. Vetter Chief Financial Officer Date May 22, 2006 Exhbit A I, Jimmy D. Gambill, certify that: 1. I have reviewed this report on Form N-Q of FRANKLIN CALIFORNIA TAX-FREE TRUST; 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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 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 registrant's most recent fiscal quarter 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. May 22, 2006 /S/JIMMY D. GAMBILL Chief Executive Officer - Finance and Administration I, Galen G. Vetter, certify that: 1. I have reviewed this report on Form N-Q of FRANKLIN CALIFORNIA TAX-FREE TRUST; 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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 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 registrant's most recent fiscal quarter 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. May 22, 2006 /S/GALEN G. VETTER Chief Financial Officer