N-Q 1 nqform.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: 3/31/07 ------- ITEM 1. SCHEDULE OF INVESTMENTS. Franklin California Tax-Free Trust QUARTERLY STATEMENTS OF INVESTMENTS MARCH 31, 2007 -------------------------------------------------------------------------------- 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 ................. 23 Franklin California Tax-Exempt Money Fund ............................. 25 Notes to Statements of Investments .................................... 30 [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, 2007 (UNAUDITED)
-------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE -------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 98.8% MUNICIPAL BONDS 98.8% CALIFORNIA 98.8% ABAG Finance Authority for Nonprofit Corps. COP, Lincoln Child Center Inc., California Mortgage Insured, 6.125%, 11/01/24 .................. $ 2,055,000 $ 2,124,233 Lytton Gardens Inc., Refunding, California Mortgage Insured, 6.00%, 2/15/30 ............... 3,500,000 3,604,895 Odd Fellows Home, California Mortgage Insured, 6.00%, 8/15/24 ............................. 5,000,000 5,091,550 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 5,355,739 Sansum-Santa Barbara, Refunding, Series A, California Mortgage Insured, 5.60%, 4/01/26 .... 2,750,000 2,890,168 Acalanes UHSD, GO, Capital Appreciation, Election of 2002, Series A, FGIC Insured, zero cpn., 8/01/25 ................................................................................... 9,045,000 3,591,227 Alameda Corridor Transportation Authority Revenue, AMBAC Insured, zero cpn. to 10/01/12, 5.25% thereafter, 10/01/21 ............................................................... 64,660,000 53,458,948 5.45% thereafter, 10/01/25 ............................................................... 25,000,000 20,603,750 Alameda Power and Telecommunication Electric System Revenue COP, Refunding, Series A, MBIA Insured, 5.75%, 7/01/30 .............................................................. 3,305,000 3,536,185 Alhambra City Elementary School District GO, Capital Appreciation, Election of 1999, Series B, FGIC Insured, zero cpn., 9/01/27 ....... 3,035,000 1,206,898 Series A, FSA Insured, Pre-Refunded, 5.60%, 9/01/24 ...................................... 2,065,000 2,183,242 Antelope Valley UHSD, GO, Series A, MBIA Insured, 5.00%, 2/01/27 ............................ 5,000,000 5,259,600 Arcadia USD, GO, Capital Appreciation, Election of 2006, Series A, FSA Insured, zero cpn., 8/01/29 .................................................................................. 5,110,000 1,763,001 8/01/33 .................................................................................. 11,690,000 3,290,501 8/01/39 .................................................................................. 9,620,000 1,998,747 8/01/46 .................................................................................. 27,665,000 4,040,197 Arcata Joint Powers Financing Authority Wastewater Revenue, FSA Insured, 5.80%, 12/01/22 .... 1,080,000 1,117,800 Atascadero CDA Tax Allocation, Redevelopment Project, XLCA Insured, 5.00%, 9/01/34 .......... 4,315,000 4,522,983 Baldwin Park RDA Tax Allocation, Refunding, FSA Insured, 5.70%, 9/01/25 ..................... 4,000,000 4,329,800 Beaumont USD, COP, Refunding, Series A, FSA Insured, 5.80%, 1/01/21 ......................... 1,500,000 1,538,055 Brea and Olinda USD, GO, Series A, FGIC Insured, 5.60%, 8/01/20 ............................. 1,000,000 1,062,810 Brentwood Infrastructure Financing Authority Infrastructure Revenue, Refunding, Series A, FSA Insured, 5.00%, 9/02/32 ............................................................... 3,800,000 3,999,196 Cabrillo Community College District GO, a Capital Appreciation, Election of 2004, Series B, MBIA Insured, zero cpn., 8/01/39 ...... 12,570,000 2,645,357 Series C, AMBAC Insured, Pre-Refunded, 5.375%, 5/01/26 .................................. 5,400,000 5,786,370 Calexico USD, CFD No. 1 Special Tax, AMBAC Insured, Pre-Refunded, 5.60%, 9/01/17 ............ 2,930,000 3,012,948 California Community College Financing Authority Lease Revenue, Grossmont Palomar and Shasta, Series A, MBIA Insured, 5.125%, 4/01/31 ........................................... 3,030,000 3,193,135 California Educational Facilities Authority Revenue, Pomona College, Series B, Pre-Refunded, 5.50%, 7/01/29 .................................. 4,455,000 4,686,437 Stanford University, Refunding, Series M, 5.25%, 12/01/26 ............................... 6,450,000 6,579,193 Stanford University, Refunding, Series O, 5.125%, 1/01/31 ............................... 24,705,000 25,180,818 Stanford University, Series N, 5.35%, 6/01/27 ........................................... 21,250,000 21,673,937 Stanford University, Series N, 5.20%, 12/01/27 .......................................... 6,000,000 6,113,880 University of Southern California, Series C, Pre-Refunded, 5.125%, 10/01/28 ............. 3,845,000 3,913,902 California Health Facilities Financing Authority Revenue, Catholic Healthcare West, Refunding, ACA Insured, 5.00%, 7/01/28 ........................ 10,000,000 10,121,500 Catholic Healthcare West, Refunding, Series A, 5.00%, 7/01/28 ........................... 12,995,000 13,205,779
Quarterly Statements of Investments | 3 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) California Health Facilities Financing Authority Revenue (continued) Catholic Healthcare West, Refunding, Series A, MBIA Insured, 6.00%, 7/01/17 ............. $ 3,970,000 $ 4,031,654 Catholic Healthcare West, Series A, Pre-Refunded, 5.00%, 7/01/28 ........................ 2,005,000 2,060,579 Community Health Facilities, Series A, California Mortgage Insured, 5.80%, 8/01/25 ...... 1,130,000 1,182,929 The Help Group, Refunding, California Mortgage Insured, 5.40%, 8/01/22 .................. 5,000,000 5,124,400 Kaiser Permanente, Series A, ETM, 5.40%, 5/01/28 ........................................ 15,400,000 15,700,762 Kaiser Permanente, Series B, ETM, 5.00%, 10/01/18 ....................................... 5,000,000 5,138,600 Kaiser Permanente, Series B, ETM, 5.00%, 10/01/20 ....................................... 4,000,000 4,109,120 Marshall Hospital, Refunding, Series A, California Mortgage Insured, 5.30%, 11/01/28 .... 3,325,000 3,399,314 Northern California Presbyterian, Refunding, 5.40%, 7/01/28 ............................. 5,000,000 5,046,150 Orange County Health Facility, Series A, California Mortgage Insured, 6.20%, 11/01/24 ... 3,435,000 3,553,164 Senior Living, Aldersly, Series A, California Mortgage Insured, 5.25%, 3/01/32 .......... 2,000,000 2,097,060 Sutter Health, Refunding, Series A, MBIA Insured, 5.00%, 8/15/19 ........................ 1,585,000 1,638,874 Sutter Health, Refunding, Series A, MBIA Insured, 5.00%, 8/15/38 ........................ 3,735,000 3,834,724 Sutter Health, Series A, MBIA Insured, Pre-Refunded, 5.00%, 8/15/19 ..................... 115,000 119,806 Sutter Health, Series A, MBIA Insured, Pre-Refunded, 5.00%, 8/15/38 ..................... 265,000 276,074 True to Life Children's Services, Series A, California Mortgage Insured, 5.625%, 9/01/25 1,250,000 1,306,950 UCSF-Stanford Health Care, Series A, FSA Insured, Pre-Refunded, 5.00%, 11/15/28 ......... 9,530,000 9,846,777 California HFAR, Home Mortgage, Series N, AMBAC Insured, zero cpn. to 2/01/10, 6.30% thereafter, 8/01/31 ....................................................................... 240,000 203,736 California Infrastructure and Economic Development Bank Revenue, Bay Area Toll Bridges, first lien, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/33 ......................... 8,460,000 9,453,035 California PCFA, PCR, Southern California Edison Co., Refunding, Series C, MBIA Insured, 5.55%, 9/01/31 ............................................................................ 4,800,000 5,022,816 California Public School District Financing Authority Lease Revenue, Southern Kern USD, Series B, FSA Insured, ETM, 5.90%, 9/01/26 ................................................ 1,615,000 1,927,260 California State Department of Water Resources Central Valley Project Revenue, Water System, Refunding, Series Q, MBIA Insured, 5.375%, 12/01/27 ....................................... 365,000 369,610 California State Department of Water Resources Water Revenue, Central Valley Project, Refunding, Series AD, FSA Insured, 5.00%, 12/01/26 .............. 2,170,000 2,304,149 Refunding, Series W, FSA Insured, 5.125%, 12/01/29 ...................................... 5,000,000 5,219,350 System, Central Valley Project, Refunding, Series AC, MBIA Insured, 5.00%, 12/01/26 ..... 3,575,000 3,784,459 California State GO, 5.00%, 10/01/27 ......................................................................... 30,790,000 31,498,478 FGIC Insured, 5.375%, 6/01/26 ........................................................... 1,610,000 1,622,284 FSA Insured, Pre-Refunded, 5.50%, 9/01/29 ............................................... 34,500,000 36,396,465 MBIA Insured, 6.00%, 8/01/16 ............................................................ 210,000 211,682 MBIA Insured, 6.00%, 10/01/21 ........................................................... 65,000 65,794 Refunding, 5.125%, 6/01/31 .............................................................. 25,000,000 26,056,500 Refunding, MBIA Insured, 5.00%, 8/01/29 ................................................. 20,250,000 20,933,640 California State Local Government Finance Authority Revenue, Marin Valley Mobile, Senior Series A, FSA Insured, 5.80%, 10/01/20 .................................................... 4,275,000 4,407,183 California State Public Works Board Lease Revenue, Department of Mental Health Hospital, Series A, AMBAC Insured, 5.00%, 12/01/21 ................................................................................ 4,100,000 4,303,155 12/01/26 ................................................................................ 5,675,000 5,902,567
4 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) California State University Foundation Revenue, Monterey Bay, MBIA Insured, Pre-Refunded, 5.35%, 6/01/31 ............................................................................ $ 2,000,000 $ 2,139,540 California State University of Los Angeles Auxiliary Services Inc. Revenue, MBIA Insured, Pre-Refunded, 5.125%, 6/01/33 ............................................................. 3,200,000 3,395,648 California State University Revenue, Systemwide, Refunding, Series C, MBIA Insured, 5.00%, 11/01/28 ...................................... 23,215,000 24,677,545 Series A, FSA Insured, 5.00%, 11/01/27 .................................................. 10,000,000 10,685,300 California State University Revenue and Colleges Revenue, Systemwide, Refunding, Series A, AMBAC Insured, 5.00%, 11/01/33 ............................................................ 22,000,000 22,854,920 California Statewide CDA, COP, Children's Hospital, Los Angeles, 5.25%, 8/15/29 ................................... 12,250,000 12,596,797 COP, Kaiser Permanente, ETM, 5.30%, 12/01/15 ............................................ 9,700,000 10,300,818 COP, MBIA Insured, 5.00%, 4/01/18 ....................................................... 3,000,000 3,065,970 COP, Refunding, California Mortgage Insured, 5.75%, 8/01/21 ............................. 9,585,000 10,036,741 COP, Refunding, FSA Insured, 5.50%, 8/15/31 ............................................. 7,000,000 7,344,890 MFHR, Silver Ridge Apartments, Mandatory Put 8/01/21, Series H, FNMA Insured, 5.80%, 8/01/33 ................................................................................ 2,785,000 2,952,629 California Statewide CDA Revenue, Brentwood School, Series A, FSA Insured, 5.25%, 10/01/29 ................................ 7,625,000 7,833,696 COP, John Muir/Mt. Diablo Health System, MBIA Insured, 5.125%, 8/15/22 .................. 5,000,000 5,122,850 Hospital Monterey Peninsula, Series B, FSA Insured, 5.25%, 6/01/23 ...................... 2,000,000 2,145,320 Refunding, California Mortgage Insured, 5.00%, 8/01/21 .................................. 2,035,000 2,125,639 California Statewide CDA Water and Wastewater Revenue, Pooled Financing Program, Refunding, Series A, FSA Insured, 5.00%, 10/01/32 ....................................... 9,320,000 9,677,608 Refunding, Series B, FSA Insured, 5.75%, 10/01/29 ....................................... 1,465,000 1,538,558 Series B, FSA Insured, Pre-Refunded, 5.65%, 10/01/26 .................................... 2,400,000 2,566,128 Series B, FSA Insured, Pre-Refunded, 5.65%, 10/01/26 .................................... 1,020,000 1,086,300 Campbell USD, GO, FSA Insured, 5.00%, 8/01/27 ............................................... 7,150,000 7,442,506 Castaic Lake Water Agency Revenue COP, 1999 Project, Refunding, AMBAC Insured, 4.50%, 8/01/26 .................................. 7,700,000 7,705,390 Series A, MBIA Insured, 5.00%, 8/01/29 .................................................. 8,000,000 8,283,520 Central USD, GO, Election of 2004, Series B, FSA Insured, 5.00%, 8/01/31 .................... 3,500,000 3,727,920 Chabot-Las Positas Community College District GO, Capital Appreciation Bonds, Series C, AMBAC Insured, zero cpn., 8/01/35 ................................................................................. 10,000,000 2,515,900 8/01/36 ................................................................................. 10,000,000 2,388,600 8/01/37 ................................................................................. 15,045,000 3,411,303 Chaffey Community College District GO, Refunding, Series A, FSA Insured, 5.00%, 7/01/27 ........................................ 270,000 283,854 Series A, FSA Insured, Pre-Refunded, 5.00%, 7/01/27 ..................................... 5,480,000 5,902,289 Charter Oak USD, GO, Election of 2000, Series D, FGIC Insured, 5.00%, 8/01/30 ............... 3,115,000 3,320,310 Chico PFAR, Merged Redevelopment Project Area, MBIA Insured, 5.125%, 4/01/24 ................ 2,790,000 2,945,096 Chino Basin Regional Financing Authority Revenue, Municipal Water District, Sewer System Project, Refunding, AMBAC Insured, 6.00%, 8/01/16 ......................................... 2,000,000 2,003,760 Chula Vista Elementary School District GO, Election of 1998, Series F, MBIA Insured, 5.00%, 8/01/28 ................................................................................... 2,685,000 2,832,944
Quarterly Statements of Investments | 5 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Clovis PFAR, 2001 Corp. Yard Project, AMBAC Insured, 5.00%, 3/01/27 ......................... $ 3,265,000 $ 3,407,615 Coachella Valley USD, GO, Election of 2005, Series A, FGIC Insured, 5.00%, 8/01/27 .................................................................................. 3,650,000 3,863,671 8/01/28 .................................................................................. 3,850,000 4,072,607 Compton USD, GO, Election of 2002, Series B, MBIA Insured, Pre-Refunded, 5.00%, 6/01/29 .................................................................................... 2,000,000 2,173,900 Corona-Norco USD, COP, Refunding, FSA Insured, 5.125%, 4/15/25 ............................................. 5,355,000 5,557,794 COP, Refunding, FSA Insured, 5.125%, 4/15/29 ............................................. 2,540,000 2,633,980 GO, Capital Appreciation, Series B, FSA Insured, zero cpn., 9/01/23 ...................... 2,320,000 1,143,226 GO, Capital Appreciation, Series B, FSA Insured, zero cpn., 9/01/24 ...................... 2,620,000 1,232,343 GO, Capital Appreciation, Series B, FSA Insured, zero cpn., 3/01/25 ...................... 1,400,000 642,138 GO, Capital Appreciation, Series C, FGIC Insured, zero cpn., 9/01/25 ..................... 4,655,000 2,089,164 GO, Capital Appreciation, Series C, FGIC Insured, zero cpn., 9/01/26 ..................... 6,080,000 2,607,530 Coronado CDA Tax Allocation, Community Development Project, MBIA Insured, 5.375%, 9/01/26 .................................................................................... 2,700,000 2,887,542 Cucamonga County Water District COP, FGIC Insured, 5.00%, 9/01/29 ........................... 5,070,000 5,269,200 Culver City USD, GO, MBIA Insured, Pre-Refunded, 5.125%, 8/01/37 .......................................................................... 650,000 669,994 5.20%, 8/01/38 ........................................................................... 3,285,000 3,438,804 Delano USD, COP, Refinancing Project, MBIA Insured, 5.125%, 1/01/22 ......................... 1,620,000 1,811,792 East Bay MUD Water System Revenue, Refunding, MBIA Insured, 5.00%, 6/01/26 .................. 14,000,000 14,530,740 El Centro Financing Authority Wastewater Revenue, Series A, FSA Insured, 5.25%, 10/01/35 .... 6,200,000 6,745,786 El Monte City School District GO, Election of 2004, Series A, FGIC Insured, 5.00%, 5/01/30 .. 4,500,000 4,763,205 El Monte Water Authority Revenue, Water System Project, AMBAC Insured, Pre-Refunded, 5.60%, 9/01/34 ............................................................................. 1,800,000 1,951,164 Escondido Joint Powers Financing Authority Lease Revenue, AMBAC Insured, 5.125%, 9/01/30 .................................................................................... 3,770,000 3,898,896 Escondido USD, GO, Series A, FSA Insured, 5.00%, 8/01/26 .................................... 11,665,000 12,190,392 Eureka USD, GO, FSA Insured, 5.00%, 8/01/25 ................................................. 4,145,000 4,364,934 Fairfield Suisun USD, GO, Election of 2002, MBIA Insured, 5.00%, 8/01/25 ........................................... 4,185,000 4,423,712 MBIA Insured, 5.00%, 8/01/27 ............................................................. 12,000,000 12,623,040 Florin Resource Conservation District COP, Elk Grove Water Service, Refunding, Series A, MBIA Insured, 5.00%, 3/01/33 ............................................................... 5,000,000 5,216,600 Folsom COP, Central Business District Fire Station, MBIA Insured, 5.125%, 10/01/26 .......... 2,030,000 2,147,537 Foothill/Eastern Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, MBIA Insured, zero cpn., 1/15/17 ........................ 20,000,000 12,444,600 Capital Appreciation, Refunding, MBIA Insured, zero cpn., 1/15/18 ........................ 25,000,000 14,657,250 Capital Appreciation, Refunding, MBIA Insured, zero cpn., 1/15/19 ........................ 5,970,000 3,295,142 senior lien, Refunding, Series A, MBIA Insured, 5.00%, 1/01/35 ........................... 66,735,000 68,325,295 Fortuna PFA Wastewater Revenue, FSA Insured, 5.00%, 10/01/36 ................................ 10,125,000 10,737,360 Franklin-McKinley School District GO, Election of 2004, Series A, FGIC Insured, 5.00%, 8/01/29 .................................................................................... 5,280,000 5,600,549 Fresno USD, GO, Refunding, Series B, MBIA Insured, 5.00%, 2/01/21 ................................................... 2,860,000 3,135,761 Series C, MBIA Insured, 5.90%, 2/01/20 ................................................... 2,065,000 2,446,364 Series C, MBIA Insured, 5.90%, 8/01/22 ................................................... 3,000,000 3,559,560
6 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Fullerton School District GO, Capital Appreciation, Series A, FGIC Insured, zero cpn., 8/01/23 .................................................................................... $ 3,030,000 $ 1,486,548 Fullerton University Foundation Auxiliary Organization Revenue, Series A, MBIA Insured, 5.75%, 7/01/25 .................................................................................. 1,250,000 1,340,213 7/01/30 .................................................................................. 1,000,000 1,071,530 Gilroy USD, GO, Election of 2002, FGIC Insured, 5.00%, 8/01/30 ............................... 8,650,000 9,168,827 Glendale USD, GO, Series C, FSA Insured, 5.50%, 9/01/24 ...................................... 2,750,000 2,891,378 Glendora PFAR Tax Allocation, Project No. 1, Refunding, Series A, MBIA Insured, 5.00%, 9/01/24 .................................................................................... 5,000,000 5,259,800 Grossmont UHSD, COP, FSA Insured, Pre-Refunded, 5.75%, 9/01/26 ............................................ 2,250,000 2,362,703 GO, Capital Appreciation, Election of 2004, FSA Insured, zero cpn., 8/01/24 ............... 5,110,000 2,391,889 Hartnell Community College District GO, Election of 2002, Series B, FSA Insured, 5.00%, 6/01/31 .................................................................................... 5,000,000 5,320,800 Hemet USD, COP, Nutrition Center Project, FSA Insured, Pre-Refunded, 5.875%, 4/01/27 ......... 1,250,000 1,275,000 Hollister RDA Tax Allocation, Community Development Project, Refunding, AMBAC Insured, 5.125%, 10/01/32 ........................................................................... 19,815,000 20,973,781 Huntington Beach City and School District COP, MBIA Insured, Pre-Refunded, 5.25%, 7/01/29 .................................................................................... 1,795,000 1,895,269 Jefferson San Mateo County UHSD, GO, Refunding, Series A, MBIA Insured, 6.45%, 8/01/25 .................................................................................. 3,045,000 3,875,920 8/01/29 .................................................................................. 3,075,000 4,040,058 Jurupa Community Services District Special Tax, CFD No. 2, Series A, AMBAC Insured, 5.00%, 9/01/32 ............................................................................. 7,000,000 7,247,590 Jurupa USD, COP, FSA Insured, 5.625%, 9/01/24 ................................................ 1,600,000 1,704,560 Kern Community College District COP, Refunding, MBIA Insured, 5.00%, 1/01/25 ................. 7,800,000 7,945,548 Kern County High School District GO, FSA Insured, ETM, 6.625%, 8/01/14 ................................................................................... 1,535,000 1,830,457 8/01/15 ................................................................................... 1,400,000 1,694,364 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 6,039,379 Lancaster School District GO, Capital Appreciation, Election of 1999, MBIA Insured, zero cpn., 8/01/25 ................................................................................... 5,495,000 2,453,023 7/01/26 ................................................................................... 5,965,000 2,552,722 Lodi COP, Wastewater Treatment Project, Refunding, AMBAC Insured, 6.70%, 8/01/26 ............. 8,800,000 9,019,296 Lodi Electric Systems Revenue COP, Series A, MBIA Insured, Pre-Refunded, 5.50%, 1/15/32 ...... 4,000,000 4,174,320 Lodi USD, GO, MBIA Insured, 5.00%, 8/01/23 ................................................... 2,150,000 2,246,836 Long Beach Bond Finance Authority Lease Revenue, Aquarium of The South Pacific, Refunding, AMBAC Insured, 5.00%, 11/01/19 .................. 4,000,000 4,216,120 Aquarium of The South Pacific, Refunding, AMBAC Insured, 5.00%, 11/01/26 .................. 11,000,000 11,488,620 Aquarium of The South Pacific, Refunding, AMBAC Insured, 5.25%, 11/01/30 .................. 2,000,000 2,116,760 Public Safety Facilities Projects, AMBAC Insured, 5.00%, 11/01/26 ......................... 6,780,000 7,046,861 Public Safety Facilities Projects, AMBAC Insured, 5.00%, 11/01/31 ......................... 10,500,000 10,886,925 Long Beach Bond Finance Authority Tax Allocation Revenue, North Long Beach Redevelopment Projects, Series A, AMBAC Insured, 5.00%, 8/01/25 ............................................................................ 7,015,000 7,300,230 5.00%, 8/01/31 ............................................................................ 3,135,000 3,253,378 Pre-Refunded, 5.00%, 8/01/25 .............................................................. 6,535,000 6,990,751 Pre-Refunded, 5.00%, 8/01/31 .............................................................. 8,865,000 9,483,245
Quarterly Statements of Investments | 7 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Long Beach University School District GO, Election of 1999, Series C, MBIA Insured, 5.125%, 8/01/31 ............................................................................ $ 13,870,000 $ 14,354,479 Los Angeles Community College District GO, Series A, MBIA Insured, Pre-Refunded, 5.00%, 6/01/26 ...................................... 4,000,000 4,233,760 Series B, FSA Insured, 5.00%, 8/01/27 ..................................................... 4,000,000 4,200,840 Los Angeles COP, Municipal Improvement Corp., Municipal Improvement Corp. of Los Angeles, Series AW, AMBAC Insured, 5.00%, 6/01/27 ............................................................. 5,895,000 6,161,277 Real Property Program, MBIA Insured, 5.00%, 2/01/27 ....................................... 9,890,000 10,271,161 Los Angeles County COP, Antelope Valley Courthouse, Series A, AMBAC Insured, Pre-Refunded, 5.25%, 11/01/27 .................................................................................. 2,500,000 2,642,300 11/01/33 .................................................................................. 2,500,000 2,642,300 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 28,263,524 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 6,835,391 Los Angeles Mortgage Revenue, Refunding, Series I, MBIA Insured, 6.50%, 7/01/22 ............. 765,000 768,542 Los Angeles Wastewater System Revenue, Refunding, MBIA Insured, 5.00%, 6/01/26 .............. 10,000,000 10,490,500 Los Angeles Water and Power Revenue, Power System, Refunding, Series A, MBIA Insured, 5.00%, 7/01/24 ............................................................................. 12,000,000 12,321,600 Lynwood PFA Tax Allocation, Project Area A, Refunding, Series A, FSA Insured, 5.85%, 9/01/18 .................................................................................... 1,765,000 1,871,535 Lynwood PFA Water Revenue, Water System Improvement Project, MBIA Insured, 5.85%, 6/01/22 ............................................................................ 665,000 701,927 5.90%, 6/01/29 ............................................................................ 3,105,000 3,283,258 Madera PFA Water and Wastewater Revenue, Refunding, MBIA Insured, 5.00%, 3/01/36 ............ 2,000,000 2,114,760 Marin Municipal Water District COP, Financing Project, AMBAC Insured, 5.00%, 7/01/29 ........ 1,200,000 1,260,864 Mendocino County COP, Public Facilities Corp., MBIA Insured, 5.25%, 6/01/30 ................. 2,680,000 2,847,875 Merced Irrigation District Electricity System Revenue, Refunding, XLCA Insured, 5.00%, 9/01/26 .................................................................................... 10,000,000 10,570,800 Midpeninsula Regional Open Space District Financing Authority Revenue, Refunding, Series A, MBIA Insured, 5.00%, 9/01/24 ............................................................... 4,020,000 4,277,320 Millbrae COP, Police Department Expansion, AMBAC Insured, 5.875%, 3/01/24 ................... 1,025,000 1,088,509 Modesto Irrigation District COP, Capital Improvements, Series A, FSA Insured, 5.00%, 7/01/26 ................................................................................... 5,000,000 5,180,900 7/01/31 ................................................................................... 8,285,000 8,566,773 Modesto Wastewater Treatment Facility Revenue, MBIA Insured, Pre-Refunded, 5.75%, 11/01/22 ................................................................................... 14,375,000 14,702,175 Monrovia USD, GO, Election of 2006, Series A, FSA Insured, 5.00%, 8/01/31 ................... 2,515,000 2,678,777 Montebello Community RDA Tax Allocation, Housing, Series A, FSA Insured, 5.45%, 9/01/19 ............................................ 1,100,000 1,130,481 Montebello Hills Redevelopment Project, Refunding, MBIA Insured, 5.60%, 3/01/19 ........... 2,460,000 2,480,024 Montebello COP, Capital Improvement Project, Refunding, FSA Insured, 5.375%, 11/01/26 ....... 8,715,000 9,340,127 Moreno Valley USD, GO, Election of 2004, Series A, FSA Insured, 5.00%, 8/01/26 .............. 4,000,000 4,225,560 Morgan Hill USD, GO, FGIC Insured, Pre-Refunded, 5.50%, 8/01/25 ............................. 3,840,000 4,110,605
8 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Mount Diablo USD, GO, Election of 2002, FGIC Insured, 5.00%, 7/01/25 .............................................................. $ 6,025,000 $ 6,340,891 MBIA Insured, 5.00%, 6/01/28 .............................................................. 1,465,000 1,552,651 MBIA Insured, 5.00%, 6/01/29 .............................................................. 1,590,000 1,684,001 Murrieta Valley USD, COP, MBIA Insured, 5.00%, 8/01/27 ...................................... 2,380,000 2,496,787 Natomas USD, GO, FSA Insured, 5.00%, 9/01/26 ................................................ 2,535,000 2,662,333 Nevada Joint UHSD, GO, Election of 2002, Series B, FSA Insured, 5.00%, 8/01/30 ................................... 5,125,000 5,432,397 Series A, FSA Insured, 5.00%, 8/01/26 ..................................................... 1,295,000 1,353,327 Newark USD, GO, Capital Appreciation, Series B, FGIC Insured, zero cpn., 8/01/24 ................................................ 9,905,000 3,748,250 Series C, FSA Insured, zero cpn., 8/01/22 ................................................. 2,165,000 989,600 Series C, FSA Insured, zero cpn., 8/01/23 ................................................. 2,465,000 1,056,400 Series C, FSA Insured, zero cpn., 8/01/24 ................................................. 2,560,000 1,034,138 Series C, FSA Insured, zero cpn., 8/01/25 ................................................. 2,705,000 1,029,983 Norco RDA Tax Allocation, Redevelopment Project Area No. 1, MBIA Insured, 5.625%, 3/01/30 .................................................................................... 1,000,000 1,069,700 Northern California Public Power Agency Revenue, AMBAC Insured, Pre-Refunded, 7.50%, 7/01/23 .................................................................................... 3,200,000 4,293,120 Oakland Revenue, 1800 Harrison Foundation, Series A, AMBAC Insured, Pre-Refunded, 6.00%, 1/01/29 ............................................................................. 10,000,000 10,636,700 Oceanside COP, AMBAC Insured, 5.20%, 4/01/23 ................................................ 2,500,000 2,647,500 Orange County Sanitation Districts COP, FGIC Insured, 5.00%, 2/01/33 ........................ 8,000,000 8,347,280 Orinda COP, City Offices, AMBAC Insured, 5.00%, 7/01/30 ..................................... 2,155,000 2,260,142 Palm Springs Financing Authority Lease Revenue, Convention Center Project, Refunding, Series A, MBIA Insured, 5.00%, 11/01/25 .................................................... 2,295,000 2,395,452 Parlier USD, GO, Series B, AMBAC Insured, 6.00%, 6/01/16 .................................... 1,130,000 1,145,797 Pasadena Area Community College District GO, Election of 2002, Series A, FGIC Insured, 5.00%, 6/01/28 ............................................................................. 4,000,000 4,311,240 Pasadena USD, GO, Series B, FGIC Insured, Pre-Refunded, 5.25%, 7/01/24 ...................... 1,000,000 1,046,610 Patterson Joint USD, GO, Capital Appreciation, Series A, FGIC Insured, zero cpn., 8/01/22 ............................................... 1,900,000 979,583 Series A, FGIC Insured, zero cpn., 8/01/24 ............................................... 2,075,000 971,266 Series A, FGIC Insured, zero cpn., 8/01/25 ............................................... 2,170,000 968,710 Series A, FGIC Insured, zero cpn., 8/01/26 ............................................... 2,265,000 965,751 Series C, FGIC Insured, zero cpn., 8/01/23 ............................................... 1,985,000 973,861 Peralta Community College District GO, Election of 2000, Series B, MBIA Insured, 5.25%, 8/01/32 ................................................................................... 8,450,000 8,961,563 Perris CFD Special Tax, No. 93-1, Series A, AMBAC Insured, 5.125%, 8/15/23 .................. 4,000,000 4,258,120 Placer County COP, Administrative and Emergency Services, MBIA Insured, 5.65%, 6/01/24 ...... 4,000,000 4,093,000 Plumas County COP, Capital Improvement Program, Series A, AMBAC Insured, 5.00%, 6/01/33 ................................................................................... 3,280,000 3,438,522 Pomona PFA Lease Revenue, Series AN, AMBAC Insured, 5.00%, 10/01/30 ................................................................................. 5,190,000 5,468,807 10/01/35 ................................................................................. 6,635,000 6,976,968 Porterville COP, Sewer System Refining Project, Refunding, AMBAC Insured, 5.25%, 10/01/23 .................................................................................. 3,000,000 3,081,810
Quarterly Statements of Investments | 9 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Poway RDA Tax Allocation, MBIA Insured, Pre-Refunded, 5.75%, 6/15/33 ............................................... $ 9,250,000 $ 10,127,177 Paguay Redevelopment Project, AMBAC Insured, 5.00%, 12/15/25 ............................. 9,195,000 9,568,409 Refunding, MBIA Insured, 5.75%, 6/15/33 .................................................. 2,225,000 2,413,235 Rancho Cucamonga RDA Tax Allocation, Rancho Redevelopment Project, Housing Set Aside, MBIA Insured, 5.25%, 9/01/26 .......................................... 2,000,000 2,032,860 Refunding, FSA Insured, 5.25%, 9/01/20 ................................................... 2,500,000 2,612,475 Redwood City School District GO, FGIC Insured, 5.00%, 7/15/27 ............................... 3,000,000 3,132,630 Rescue USD, GO, Election of 1998, MBIA Insured, 5.00%, 9/01/30 .............................. 7,015,000 7,439,478 Ripon RDA Tax Allocation, Community Redevelopment Project, MBIA Insured, 5.85%, 11/01/30 .................................................................................. 3,975,000 4,324,124 Riverside County COP, Historic Courthouse, MBIA Insured, Pre-Refunded, 5.875%, 11/01/27 ..... 3,000,000 3,099,810 Roseville Financing Authority Revenue, senior lien, Series A, AMBAC Insured, 5.00%, 9/01/25 ................................................................................... 5,675,000 5,984,004 Rowland USD, GO, Series A, FSA Insured, Pre-Refunded, 5.25%, 9/01/25 ........................ 5,685,000 6,048,556 Sacramento Area Flood Control Agency Special Assessment, Subordinated, Capital AD No. 2, FGIC Insured, 5.80%, 11/01/16 ............................................................. 1,000,000 1,021,720 Sacramento City Financing Authority Revenue, Capital Improvement, 300 Richards Boulevard, Series C, AMBAC Insured, 5.00%, 12/01/25 ............................................................................... 1,130,000 1,202,026 Capital Improvement, 300 Richards Boulevard, Series C, AMBAC Insured, 5.00%, 12/01/26 ............................................................................... 1,185,000 1,259,560 Capital Improvement, 300 Richards Boulevard, Series C, AMBAC Insured, 5.00%, 12/01/31 ............................................................................... 3,415,000 3,615,973 Capital Improvement, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/26 .............. 8,395,000 8,867,974 Capital Improvement, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/32 .............. 21,500,000 22,711,310 City Hall and Redevelopment Projects, Series A, FSA Insured, Pre-Refunded, 5.00%, 12/01/28 ............................................................................... 10,000,000 10,736,900 Sacramento County Sanitation District Financing Authority Revenue, Sacramento Regional County Sanitation, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/35 ................. 10,000,000 10,922,300 Salida Area Public Facilities Financing Agency CFD, Special Tax, No. 1988-1, FSA Insured, 5.75%, 9/01/30 ............................................................................ 3,435,000 3,696,747 Salida USD, COP, Financing Project, AMBAC Insured, 5.375%, 5/01/26 .......................... 1,645,000 1,647,237 Salinas UHSD, GO, Election of 2002, Series B, MBIA Insured, 5.00%, 6/01/31 .................. 5,000,000 5,301,250 San Bernardino City USD, GO, Election of 2004, Series B, FSA Insured, 5.00%, 8/01/28 ........ 14,170,000 15,040,463 San Bernardino County COP, 1997 Public Improvement Financing Project, MBIA Insured, 5.25%, 10/01/25 ........................................................................... 7,000,000 7,190,190 San Bernardino County SFMR, Captial Appreciation, Series A, GNMA Insured, ETM, zero cpn., 5/01/22 ................................................................................... 28,405,000 12,772,308 San Buenaventura Public Facilities Financing Authority Lease Revenue, Refunding, FSA Insured, 5.75%, 6/01/14 ............................................................................ 2,250,000 2,258,010 San Carlos School District GO, MBIA Insured, Pre-Refunded, 5.50%, 10/01/24 .................. 2,110,000 2,248,564 San Diego Public Facilities Financing Authority Sewer Revenue, Series B, FGIC Insured, 5.25%, 5/15/27 ................................................................................... 2,950,000 2,984,515 San Francisco BART District Sales Tax Revenue, 5.00%, 7/01/28 ........................................................................... 2,795,000 2,861,130 FGIC Insured, Pre-Refunded, 5.50%, 7/01/26 ............................................... 6,500,000 6,837,675 FGIC Insured, Pre-Refunded, 5.50%, 7/01/34 ............................................... 12,000,000 12,623,400
10 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) San Francisco City and County Airports Commission International Airport Revenue, Refunding, Second Series 28A, MBIA Insured, 5.125%, 5/01/24 ................................................................................... $ 9,745,000 $ 10,166,374 5/01/27 ................................................................................... 16,575,000 17,222,585 San Francisco City and County Public Utilities Commission Water Revenue, Refunding, Series A, FSA Insured, 5.00%, 11/01/31 ............................................................... 3,885,000 4,037,603 San Francisco Community College District GO, Series A, FGIC Insured, 5.00%, 6/15/26 .......... 6,000,000 6,278,700 San Francisco State University Foundation Inc. Auxiliary Organization Housing Revenue, MBIA Insured, 5.00%, 9/01/31 ............................................................... 13,415,000 13,928,929 San Gabriel USD, GO, Capital Appreciation, Series A, FSA Insured, zero cpn., 8/01/26 ................................................................................... 3,530,000 1,505,121 2/01/27 ................................................................................... 1,850,000 770,100 San Joaquin Delta Community College District GO, Election of 2004, Series A, FSA Insured, 5.00%, 8/01/29 ............................................................................ 520,000 551,569 Pre-Refunded, 5.00%, 8/01/29 .............................................................. 4,530,000 4,958,583 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 1/15/26 ............... 13,155,000 5,745,315 Refunding, Series A, MBIA Insured, 5.375%, 1/15/29 ........................................ 18,075,000 18,457,105 Refunding, Series A, MBIA Insured, 5.25%, 1/15/30 ......................................... 11,860,000 12,109,653 senior lien, MBIA Insured, 5.00%, 1/01/33 ................................................. 10,035,000 10,045,938 San Jose Financing Authority Lease Revenue, Civic Center Project, Series B, AMBAC Insured, 5.00%, 6/01/27 .............................................................................. 10,000,000 10,362,300 San Jose MFHR, Sixth and Martha Family Apartments, FNMA Insured, 5.875%, 3/01/33 ............. 3,500,000 3,648,540 San Juan USD, GO, Election of 1998, Series A, MBIA Insured, 5.00%, 8/01/28 ................... 5,115,000 5,363,077 San Leandro COP, Library and Fire Stations Financing, AMBAC Insured, 5.75%, 11/01/29 ......... 5,000,000 5,345,500 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 5,822,576 5.80%, 10/01/30 ........................................................................... 7,800,000 8,474,544 San Marino USD, GO, Series A, MBIA Insured, zero cpn., 7/01/25 ............................... 6,080,000 2,724,144 San Mateo County Community College District GO, Election of 2001, Series C, 5.00%, 3/01/31 .................................................................................... 3,760,000 3,981,502 San Mateo GO, Library Improvement Project, Series A, AMBAC Insured, 5.25%, 8/01/30 ........... 5,790,000 6,249,089 San Ramon PFA Tax Allocation, Series A, AMBAC Insured, 5.00%, 2/01/38 ........................ 5,000,000 5,243,250 Santa Ana USD, COP, Capital Appreciation Financing Project, FSA Insured, zero cpn., 4/01/24 .................................................................................... 14,245,000 6,709,822 Santa Clara COP, Refunding, AMBAC Insured, 5.00%, 2/01/27 .................................... 5,555,000 5,793,865 Santa Clara County Financing Authority Lease Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 11/15/22 ............................................................................ 3,950,000 4,060,165 Santa Monica PFA Lease Revenue, Civic Center Parking Project, XLCA Insured, 5.00%, 7/01/33 .................................................................................... 11,050,000 11,554,211 Santa Rosa Wastewater Revenue, Series B, FGIC Insured, 5.125%, 9/01/31 ....................... 4,000,000 4,221,880 Santa Rosa Wastewater Service Facilities District Revenue, Refunding and Improvement, AMBAC Insured, 6.00%, 7/02/15 .............................................................. 2,000,000 2,219,740 Sequoia UHSD, GO, Refunding, FSA Insured, 5.00%, 7/01/28 ..................................... 3,060,000 3,265,051
Quarterly Statements of Investments | 11 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Shasta Tehama Trinity Joint Community College District GO, Election of 2002, Series B, FSA Insured, 5.00%, 8/01/30 ................................................................. $ 9,070,000 $ 9,667,804 Sonoma CDA Tax Allocation, Redevelopment Project, MBIA Insured, 5.70%, 12/01/30 ............... 3,455,000 3,693,637 Sonoma Valley USD, GO, FSA Insured, 6.00%, 7/15/21 ............................................ 2,400,000 2,415,672 South Gate COP, Series A, AMBAC Insured, 5.00%, 9/01/24 ....................................... 3,155,000 3,310,037 South San Francisco COP, 5.00%, 4/01/29 ....................................................... 2,000,000 2,045,580 Southern California Public Power Authority Power Project Revenue, Series A, AMBAC Insured, 5.00%, 7/01/33 .............................................................................. 29,000,000 30,325,300 Southern Kern USD, COP, Capital Appreciation, Building Program, Series B, FSA Insured, 5.625%, 9/01/26 ............................................................................. 2,250,000 2,332,710 Southern Mono Health Care District GO, Series A, MBIA Insured, 5.00%, 8/01/24 ................. 3,005,000 3,130,128 Southern Mono Health Care District Revenue, Capital Appreciation, Series A, MBIA Insured, zero cpn., 8/01/28 ................................................................................... 2,340,000 890,908 8/01/29 ................................................................................... 2,440,000 885,915 8/01/30 ................................................................................... 2,550,000 882,759 8/01/31 ................................................................................... 2,660,000 877,800 Stanislaus County Board of Education COP, FSA Insured, 5.70%, 9/01/24 ......................... 2,000,000 2,111,020 Stockton Port District Port Facilities Revenue, Refunding and Improvement, Series B, FSA Insured, 5.90%, 7/01/12 ................................................................. 2,195,000 2,250,885 Stockton Revenue COP, Wastewater System Project, Refunding, Series A, MBIA Insured, 5.00%, 9/01/23 ..................................................................................... 6,500,000 6,736,340 Susanville PFAR, MBIA Insured, 5.70%, 6/01/30 ................................................. 3,000,000 3,232,440 Tahoe-Truckee USD, GO, ID No. 2, Series A, FGIC Insured, Pre-Refunded, 5.75%, 8/01/20 ......... 4,340,000 4,596,017 Travis USD, COP, FGIC Insured, 5.00%, 9/01/36 ................................................. 8,230,000 8,690,551 Tri-City Hospital District Revenue, MBIA Insured, 6.00%, 2/01/22 .............................................................. 2,350,000 2,354,418 Refunding, Series A, MBIA Insured, 5.625%, 2/15/17 ........................................ 2,750,000 2,781,268 Truckee PFA Lease Revenue, Series A, AMBAC Insured, Pre-Refunded, 6.00%, 11/01/30 ............. 1,990,000 2,104,166 Turlock Auxiliary Organization Revenue COP, California State University, Stanislaus Foundation, MBIA Insured, 5.875%, 6/01/22 ............................................................... 1,920,000 1,945,747 Turlock PFA Sewer Revenue, FGIC Insured, 5.50%, 9/15/29 ....................................... 6,855,000 7,210,295 Union City CRDA Tax Allocation Revenue, Community Redevelopment Project, AMBAC Insured, 5.75%, 10/01/32 ............................................................................. 14,100,000 14,924,427 Union Elementary School District GO, Capital Appreciation, Series A, FGIC Insured, zero cpn., 9/01/24 ................................................. 2,000,000 940,720 Series B, FGIC Insured, zero cpn., 9/01/25 ................................................. 5,500,000 2,468,400 Series B, FGIC Insured, zero cpn., 9/01/26 ................................................. 5,850,000 2,508,890 University of California Revenues, Multi Purpose Projects, Series H, FGIC Insured, Pre-Refunded, 5.50%, 9/01/28 ....................................... 2,500,000 2,545,125 Series K, Pre-Refunded, 5.00%, 9/01/23 ..................................................... 3,160,000 3,255,906 Series M, FGIC Insured, Pre-Refunded, 5.125%, 9/01/30 ...................................... 8,720,000 9,124,521 Vacaville PFA Tax Allocation Revenue, Vacaville Redevelopment Projects, FSA Insured, 5.00%, 9/01/31 ..................................................................................... 5,095,000 5,246,933 Vacaville USD, GO, Election of 2001, MBIA Insured, 5.00%, 8/01/30 ............................. 12,670,000 13,384,335
12 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Vista USD, GO, Capital Appreciation, Series A, FSA Insured, zero cpn., 8/01/26 ........................ $ 7,150,000 $ 3,048,617 Capital Appreciation, Series A, FSA Insured, zero cpn., 2/01/27 ........................ 4,795,000 1,996,015 Series A, FSA Insured, 5.25%, 8/01/25 .................................................. 5,000,000 5,336,350 Washington Township Health Care District Revenue, 5.00%, 7/01/18 ......................................................................... 2,000,000 2,049,400 5.125%, 7/01/23 ........................................................................ 450,000 461,430 Washington USD, GO, Yolo County, Election of 1999, Series A, FGIC Insured, 5.375%, 8/01/25 .................................................................................. 2,045,000 2,190,461 West Basin Municipal Water District Revenue COP, 1992 Project, Refunding, Series A, AMBAC Insured, 5.50%, 8/01/17 ....................... 3,370,000 3,424,392 Refunding, Series A, MBIA Insured, 5.00%, 8/01/24 ...................................... 2,500,000 2,628,375 Refunding, Series A, MBIA Insured, 5.00%, 8/01/30 ...................................... 5,745,000 6,017,141 Western Placer USD Financing Corp. COP, Pre-Refunded, 5.55%, 11/01/30 ..................... 6,930,000 7,634,504 Westlands Water District Revenue COP, MBIA Insured, 5.00%, 9/01/29 ........................................................... 11,775,000 12,278,852 Series A, MBIA Insured, 5.00%, 9/01/35 ................................................. 1,460,000 1,530,036 Woodland Finance Authority Lease Revenue, Capital Projects, Refunding, XLCA Insured, 5.00%, 3/01/32 .................................................................................. 6,340,000 6,651,928 Woodland Finance Authority Wastewater Revenue, second senior lien, MBIA Insured, 5.00%, 3/01/33 ................................................................................ 3,870,000 4,060,404 3/01/35 ................................................................................ 2,590,000 2,715,667 Woodside Elementary School District GO, Election of 2005, MBIA Insured, Pre-Refunded, 5.00%, 10/01/29 .......................................................................... 4,435,000 4,878,012 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,856,833,965) ......................................... 1,990,807,341 -------------- SHORT TERM INVESTMENTS 0.6% MUNICIPAL BONDS 0.6% CALIFORNIA 0.6% b California State Department of Water Resources Power Supply Revenue, Refunding, Sub Series F-5, Weekly VRDN and Put, 3.70%, 5/01/22 ......................... 4,300,000 4,300,000 Refunding, Sub Series G-3, FSA Insured, Weekly VRDN and Put, 3.55%, 5/01/16 ............ 400,000 400,000 Series B-5, Daily VRDN and Put, 3.65%, 5/01/22 ......................................... 1,800,000 1,800,000 Series C-7, FSA Insured, Weekly VRDN and Put, 3.55%, 5/01/22 ........................... 500,000 500,000 Series C-9, Weekly VRDN and Put, 3.53%, 5/01/22 ........................................ 800,000 800,000 b California State Economic Recovery GO, Series C-1, Daily VRDN and Put, 3.73%, 7/01/23 ..... 200,000 200,000 b California State Economic Recovery Revenue, Series C-3, Daily VRDN and Put, 3.65%, 7/01/23 ......................................... 100,000 100,000 Series C-16, FSA Insured, Weekly VRDN and Put, 3.50%, 7/01/23 .......................... 400,000 400,000 b California State GO, Kindergarten-University, Refunding, Series B-2, Daily VRDN and Put, 3.55%, 5/01/34 .............................. 2,700,000 2,700,000 Series B-3, Daily VRDN and Put, 3.61%, 5/01/34 ......................................... 500,000 500,000 b Los Angeles Water and Power Revenue, Refunding, Sub Series B-1, Weekly VRDN and Put, 3.55%, 7/01/34 ........................................................................... 400,000 400,000 b Metropolitan Water District Southern California Waterworks Revenue, Series C-2, Daily VRDN and Put, 3.63%, 7/01/36 .................................................................. 700,000 700,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $12,800,000) ........................................... 12,800,000 --------------
Quarterly Statements of Investments | 13 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND VALUE ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (COST $1,869,633,965) 99.4% .............................................. $2,003,607,341 OTHER ASSETS, LESS LIABILITIES 0.6% ........................................................ 12,883,094 -------------- NET ASSETS 100.0% .......................................................................... $2,016,490,435 ==============
See Selected Portfolio Abreviations on page 29. 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, 2007 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 97.7% MUNICIPAL BONDS 97.7% CALIFORNIA 95.6% ABAG Finance Authority for Nonprofit Corps. COP, Rhoda Haas Goldman Plaza, California Mortgage Insured, 5.125%, 5/15/15 .......................................................... $ 3,000,000 $ 3,076,560 ABAG Finance Authority for Nonprofit Corps. Revenue, San Diego Hospital Assn., Series C, 5.125%, 3/01/18 ............................................................................ 2,695,000 2,790,726 5.25%, 3/01/19 ............................................................................. 2,315,000 2,412,832 ABAG Revenue, Refunding, Series A-E, 5.05%, 9/15/07 ............................................................................. 610,000 612,733 5.40%, 9/15/14 ............................................................................. 2,455,000 2,512,570 ABAG Water and Wastewater Revenue, Pooled Financing Program, Refunding, Series A, FSA Insured, 5.00%, 10/01/10 .................................................................... 2,485,000 2,585,891 Alameda Corridor Transportation Authority Revenue, Capital Appreciation, sub. lien, Refunding, Series A, AMBAC Insured, zero cpn., 10/01/17 ................................................ 10,000,000 6,525,700 Alameda-Contra Costa Transportation District COP, Refunding, AMBAC Insured, 4.375%, 8/01/14 ..................................................................................... 1,330,000 1,365,511 Antelope Valley UHSD, GO, Series A, MBIA Insured, 4.50%, 8/01/13 ............................................................................ 1,230,000 1,292,066 4.625%, 8/01/14 ........................................................................... 1,250,000 1,318,225 Antioch PFA, Reassessment Revenue, sub. lien, Refunding, Sub Series B, 5.40%, 9/02/07 ........ 1,080,000 1,082,603 Arcadia USD, GO, Capital Appreciation, Election of 2006, Series A, FSA Insured, zero cpn., 8/01/22 ..................................................................................... 4,065,000 2,004,858 Banning Utility Authority Water Enterprise Revenue, Refunding and Improvement Projects, FGIC Insured, 5.00%, 11/01/21 ............................................................... 1,080,000 1,157,188 Bay Area Toll Authority Toll Bridge Revenue, San Francisco Bay Area, Refunding, Series F, 5.00%, 4/01/21 .............................................................................. 10,000,000 10,717,800 Brentwood Infrastructure Financing Authority Infrastructure Revenue, Refunding, Series A, FSA Insured, 4.00%, 9/02/17 ................................................................. 1,485,000 1,493,479 Burbank Electric Revenue, MBIA Insured, 4.00%, 6/01/11 ................................................................................... 1,000,000 1,018,770 6/01/12 ................................................................................... 1,000,000 1,021,000 Burbank USD, GO, Capital Appreciation, Election of 1997, Series C, FGIC Insured, zero cpn., 8/01/15 ........ 4,600,000 3,332,378 Capital Appreciation, Election of 1997, Series C, FGIC Insured, zero cpn., 8/01/16 ........ 4,670,000 3,227,904 Election of 1997, Series C, FGIC Insured, 4.00%, 8/01/12 .................................. 2,500,000 2,554,050 Burbank Water and Power Electric Revenue, MBIA Insured, 4.00%, 6/01/11 ....................... 5,045,000 5,048,531 California Educational Facilities Authority Revenue, Pooled College and University Projects, Series B, Pre-Refunded, 6.125%, 4/01/13 ........... 1,000,000 1,020,000 Stanford University, Refunding, Series R, 4.00%, 11/01/11 ................................. 1,000,000 1,020,520 California Health Facilities Financing Authority Revenue, The Episcopal Home, California Mortgage Insured, 4.625%, 2/01/12 .......................... 1,350,000 1,395,603 The Episcopal Home, California Mortgage Insured, 4.75%, 2/01/13 ........................... 1,200,000 1,247,088 Kaiser Permanente, Series B, ETM, 5.25%, 10/01/13 ......................................... 5,000,000 5,166,150 Kaiser Permanente, Series B, ETM, 5.25%, 10/01/14 ......................................... 2,000,000 2,065,580 Kaiser Permanente, Series B, ETM, 5.25%, 10/01/16 ......................................... 3,850,000 3,972,854 Paradise Valley Estates, Refunding, California Mortgage Insured, 3.875%, 1/01/09 .......... 1,555,000 1,542,094 Paradise Valley Estates, Refunding, California Mortgage Insured, 4.125%, 1/01/10 .......... 1,000,000 1,007,560 Paradise Valley Estates, Refunding, California Mortgage Insured, 5.00%, 1/01/11 ........... 1,480,000 1,538,179 Paradise Valley Estates, Refunding, California Mortgage Insured, 4.375%, 1/01/12 .......... 1,000,000 1,022,500
Quarterly Statements of Investments | 15 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) California Health Facilities Financing Authority Revenue, (continued) Paradise Valley Estates, Refunding, California Mortgage Insured, 5.00%, 1/01/13 ......... $ 1,815,000 $ 1,921,504 Paradise Valley Estates, Refunding, California Mortgage Insured, 5.00%, 1/01/14 ......... 1,635,000 1,726,625 Sutter Health, Refunding, Series A, MBIA Insured, 5.875%, 8/15/16 ....................... 3,750,000 3,817,275 California HFA, SFM Purchase Revenue, Class III, Series A-1, MBIA Insured, 5.70%, 8/01/11 ................................................................................... 275,000 277,252 California State Department of Water Resources Central Valley Project Revenue, Water System, Refunding, Series S, 5.00%, 12/01/19 .................................................... 1,915,000 1,950,274 Series S, Pre-Refunded, 5.00%, 12/01/19 ................................................. 2,085,000 2,125,178 California State Department of Water Resources Power Supply Revenue, Series A, 5.50%, 5/01/12 .......................................................................... 2,000,000 2,168,020 Pre-Refunded, 5.125%, 5/01/18 ........................................................... 2,500,000 2,699,825 California State Economic Recovery Revenue, Series A, 5.00%, 7/01/15 ........................ 10,670,000 11,508,342 California State GO, 5.25%, 6/01/16 .......................................................................... 630,000 634,624 Pre-Refunded, 5.00%, 11/01/12 ........................................................... 1,335,000 1,417,209 Refunding, 4.00%, 2/01/10 ............................................................... 6,900,000 6,969,552 Refunding, 5.00%, 11/01/12 .............................................................. 665,000 701,921 Refunding, 5.25%, 2/01/14 ............................................................... 4,000,000 4,332,520 Refunding, MBIA Insured, 5.00%, 2/01/18 ................................................. 1,175,000 1,199,898 Veterans, Refunding, Series B, 5.25%, 12/01/15 .......................................... 2,310,000 2,382,603 California State Public Works Board Lease Revenue, Department of Forestry and Fire Protection, Series A, 4.875%, 10/01/18 .................. 1,325,000 1,353,527 University of California Research Project, Series E, 5.00%, 10/01/23 .................... 3,910,000 4,165,401 University of California Research Project, Series E, 5.00%, 10/01/24 .................... 2,310,000 2,457,147 Various California Community College Projects, Refunding, Series C, 5.50%, 9/01/09 ...... 1,555,000 1,582,104 California Statewide CDA, COP, Kaiser Permanente, ETM, 5.30%, 12/01/15 ................................................. 2,000,000 2,123,880 St. Joseph Health System, Refunding, 5.00%, 7/01/12 ..................................... 2,180,000 2,229,922 St. Joseph Health System Obligation Group, 5.25%, 7/01/11 ............................... 1,005,000 1,034,145 California Statewide CDA Revenue, Daughters of Charity Health, Refunding, Series G, 5.25%, 7/01/13 ........................ 1,000,000 1,064,970 Insured Health Facility, Jewish Home, California Mortgage Insured, 5.00%, 11/15/18 ...... 3,000,000 3,163,800 Kaiser Permanente, Mandatory Put 5/01/11, Series I, 3.45%, 4/01/35 ...................... 5,000,000 4,934,400 Kaiser Permanente, Mandatory Put 6/01/12, Series C, 3.85%, 11/01/29 ..................... 10,000,000 9,985,700 Mission Community, California Mortgage Insured, 4.40%, 11/01/10 ......................... 1,100,000 1,122,209 Mission Community, California Mortgage Insured, 4.50%, 11/01/11 ......................... 1,145,000 1,177,850 Viewpoint School, Refunding, ACA Insured, 4.50%, 10/01/17 ............................... 460,000 460,580 Viewpoint School, Refunding, ACA Insured, 4.75%, 10/01/18 ............................... 480,000 486,950 Cathedral City 1915 Act Special Assessment, Limited Obligation, Cove ID 04-02, 5.00%, 9/02/24 ................................................................................... 1,000,000 1,010,370 Central California Joint Powers Health Financing Authority COP, Community Hospitals of Central California, 5.125%, 2/01/13 ......................................................................... 1,375,000 1,413,019 5.25%, 2/01/14 .......................................................................... 1,435,000 1,482,369 5.75%, 2/01/16 .......................................................................... 1,585,000 1,659,194
16 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE -------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Central Valley Financing Authority Cogeneration Project Revenue, Carson Ice General Project, Refunding, MBIA Insured, 5.00%, 7/01/17 ................................................... $ 2,000,000 $ 2,052,980 Cerritos PFAR Tax Allocation, Redevelopment Project, Refunding, Series A, AMBAC Insured, 3.00%, 11/01/11 ........................................................................... 2,585,000 2,491,165 Chaffey Community College District COP, Pre-Refunded, 5.10%, 9/01/13 ........................ 1,860,000 1,936,706 Clovis MFR, Mandatory Put 11/01/10, Refunding, FNMA Insured, 5.10%, 11/01/30 ................ 4,105,000 4,178,562 Clovis USD, GO, Capital Appreciation, Election of 2004, Series A, FGIC Insured, zero cpn., 8/01/17 ................................................................................... 5,235,000 3,456,880 Coalinga COP, Custody Facility, Refunding, 4.25%, 4/01/10 ................................... 1,000,000 1,003,060 Compton COP, Civic Center and Capital Improvement, Refunding, Series A, 5.00%, 9/01/08 ........................................................................... 2,965,000 3,007,963 5.50%, 9/01/15 ........................................................................... 1,180,000 1,211,707 Conejo Valley USD, GO, Election of 1998, Series C, FSA Insured, zero cpn., 8/01/17 ................................................ 2,500,000 1,650,850 Series D, FGIC Insured, 4.50%, 8/01/18 ................................................... 3,850,000 4,005,733 Series D, FGIC Insured, 4.50%, 8/01/19 ................................................... 4,000,000 4,143,720 Contra Costa Community College District GO, Election of 2002, FGIC Insured, 4.75%, 8/01/18 .................................................................................... 2,450,000 2,549,152 Corona-Norco USD, PFA Special Tax Revenue, Series A, 5.25%, 9/01/25 ......................... 2,235,000 2,280,549 Duarte RDA Tax Allocation, Merged Redevelopment Project Area, Refunding, 5.125%, 10/01/16 ................................................................................... 2,630,000 2,702,036 Fairfax School District GO, Election of 2000, Series A, FGIC Insured, 5.00%, 11/01/17 ....... 855,000 910,404 Fairfield Suisun Sewer District Sewer Revenue, Series A, Refunding, FGIC Insured, 5.00%, 5/01/12 .................................................................................... 600,000 631,398 Folsom PFA Lease Revenue, City Hall and Community Center, Refunding, FSA Insured, 5.00%, 10/01/17 ................................................................................... 1,275,000 1,359,163 Foothill/Eastern Corridor Agency Toll Road Revenue, Refunding, MBIA Insured, 5.00%, 1/15/16 .................................................................................... 1,000,000 1,045,730 Fremont UHSD Santa Clara County GO, Series C, FSA Insured, Pre-Refunded, 4.25%, 9/01/13 .................................................................................... 1,310,000 1,354,723 Fresno USD, GO, Election of 2001, Series D, MBIA Insured, 5.00%, 8/01/21 .................... 1,355,000 1,451,056 Galt Capital Improvements Authority Lease Revenue, Culture and Recreation Improvement Project, 5.00%, 4/01/12 .................................................................... 2,390,000 2,445,854 Galt Middle School Joint Powers Authority Special Tax, CFD No. 1, Refunding, 5.40%, 9/01/12 .................................................................................... 1,955,000 2,016,739 Garden Grove Agency Community Development Tax Allocation, Garden Grove Community Project, Refunding, AMBAC Insured, 4.25%, 10/01/13 .................................................. 2,025,000 2,094,660 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Asset-Backed, ETM, 5.00%, 6/01/12 ............................................................................. 1,500,000 1,592,910 Hi-Desert Memorial Health Care District Revenue, Refunding, 5.125%, 10/01/07 ................ 650,000 652,516 Huntington Beach PFAR, Lease Capital Improvement Refinancing Project, Refunding, Series B, AMBAC Insured, 4.125%, 8/01/14 .......................................................................... 2,140,000 2,190,782 4.25%, 8/01/15 ........................................................................... 2,080,000 2,137,990 Inland Empire Solid Waste Financing Authority Revenue, Landfill Improvement Financing Project, Series B, FSA Insured, ETM, 6.25%, 8/01/11 ....................................... 890,000 929,507
Quarterly Statements of Investments | 17 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Irvine 1915 Act GO, AD No. 03-19, Group 2, Refunding, 4.875%, 9/02/16 .......................................................................... $ 1,000,000 $ 1,016,440 5.00%, 9/02/18 ........................................................................... 1,000,000 1,017,920 5.125%, 9/02/19 .......................................................................... 1,000,000 1,021,900 Irvine 1915 Act Special Assessment, AD No. 00-18, Group 2, 4.375%, 9/02/10 ................................................................. 885,000 894,328 Group 2, 4.70%, 9/02/12 .................................................................. 1,475,000 1,507,450 Group 2, 4.80%, 9/02/13 .................................................................. 1,175,000 1,203,623 Group 2, 5.125%, 9/02/17 ................................................................. 1,705,000 1,744,096 Group 3, 4.75%, 9/02/15 .................................................................. 1,000,000 1,013,200 Group 3, 5.00%, 9/02/17 .................................................................. 1,000,000 1,019,730 Irvine USD Financing Authority Special Tax, Series A, 4.70%, 9/01/15 ........................................................................... 1,095,000 1,112,454 4.80%, 9/01/17 ........................................................................... 1,400,000 1,426,488 4.875%, 9/01/18 .......................................................................... 1,570,000 1,601,400 5.00%, 9/01/20 ........................................................................... 1,150,000 1,179,463 Kings River Conservation District Pine Flat Power Revenue, Refunding, Series E, 5.125%, 1/01/18 ..................................................................................... 1,735,000 1,792,515 Lake Elsinore PFA Tax Allocation Revenue, Lake Elsinore Redevelopment Projects, Series A, FSA Insured, 5.40%, 9/01/08 ............... 645,000 645,922 Series A, 5.00%, 9/01/09 .................................................................. 945,000 956,491 Lake Elsinore School Financing Authority Revenue, Refunding, 6.00%, 9/01/11 .................. 1,000,000 1,019,390 Lancaster COP, School District Project, Refunding, FSA Insured, 5.125%, 4/01/14 .............. 2,000,000 2,069,240 Lemon Grove CDA Tax Allocation, 1998, Refunding, 5.10%, 8/01/07 ............................................................................ 205,000 205,435 5.20%, 8/01/08 ............................................................................ 215,000 217,122 Loma Linda Hospital Revenue, Loma Linda University Medical Center, Series A, 5.00%, 12/01/19 .................................................................................... 5,000,000 5,184,600 Long Beach Community College District GO, Election of 2002, Series B, FGIC Insured, 5.00%, 5/01/17 ..................................................................................... 1,000,000 1,082,740 Los Altos School District GO, Refunding, AMBAC Insured, 5.00%, 8/01/22 ....................... 5,000,000 5,377,650 Los Angeles Convention and Exhibition Center Authority Lease Revenue, Refunding, Series A, AMBAC Insured, 3.00%, 8/15/12 ............................................................... 4,525,000 4,363,277 Los Angeles County MTA, Sales Tax Revenue, Proposition A, first tier, Refunding, Series A, FSA Insured, 5.00%, 7/01/15 ..................................................................... 5,345,000 5,558,533 Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Project, Refunding, Series A, FSA Insured, 5.00%, 10/01/17 ........................................... 1,000,000 1,068,460 Los Angeles USD, GO, Election of 2004, Series C, FGIC Insured, 5.00%, 7/01/19 .................................. 2,035,000 2,170,958 Election of 2005, Series C, AMBAC Insured, 5.00%, 7/01/21 ................................. 8,420,000 9,051,247 Refunding, MBIA Insured, 5.25%, 7/01/13 ................................................... 3,500,000 3,813,950 Refunding, Series A-1, FGIC Insured, 5.00%, 7/01/21 ....................................... 10,895,000 11,637,058 Lynwood PFAR, Water System Improvement Project, 6.15%, 6/01/08 ............................... 300,000 301,170 M-S-R Public Power Agency San Juan Project Revenue, Refunding, Series I, MBIA Insured, 4.25%, 7/01/11 ............................................................................ 5,055,000 5,200,988 5.00%, 7/01/18 ............................................................................ 1,000,000 1,046,540
18 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE -------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Marina Joint Powers Financing Authority MFHR, Abrams B Apartments Financing, Mandatory Put 11/15/16, FNMA Insured, 3.90%, 11/15/36 .......................................................................... $ 3,540,000 $ 3,539,894 3.95%, 11/15/36 .......................................................................... 1,460,000 1,459,956 Metropolitan Water District Southern California GO, Waterworks, Series B, Pre-Refunded, 4.125%, 3/01/13 .......................................................................... 1,000,000 1,021,520 4.25%, 3/01/14 ........................................................................... 1,000,000 1,026,040 4.30%, 3/01/15 ........................................................................... 1,000,000 1,027,850 Montebello USD, GO, Capital Appreciation, FGIC Insured, zero cpn., 8/01/18 .................................................................................. 1,455,000 911,747 8/01/19 .................................................................................. 1,480,000 884,566 Moreno Valley USD, GO, Election of 2004, Series A, FSA Insured, 5.00%, 8/01/17 .................................................................................. 2,000,000 2,152,100 8/01/18 .................................................................................. 2,300,000 2,467,302 Morgan Hill USD, GO, FGIC Insured, Pre-Refunded, 4.25%, 8/01/14 ............................. 1,585,000 1,643,962 Moulton-Niguel Water District GO, Consolidated, Refunding, AMBAC Insured, 5.00%, 9/01/16 .................................................................................... 3,520,000 3,785,795 Murrieta COP, Road Improvement Project, 6.00%, 4/01/07 .................................................................................. 235,000 235,000 4/01/08 .................................................................................. 245,000 250,701 Nevada County COP, Refunding, MBIA Insured, 4.125%, 10/01/12 ................................ 1,040,000 1,062,454 Orange County CFD No. 86-2 Special Tax, Rancho Santa Margarita, Refunding, Series A, 5.375%, 8/15/12 ............................................................................ 1,500,000 1,534,440 Orange County CFD Special Tax, No. 02-1, Ladera Ranch, Series A, 4.60%, 8/15/14 ......................................... 1,000,000 1,023,330 No. 02-1, Ladera Ranch, Series A, 4.75%, 8/15/15 ......................................... 1,000,000 1,026,600 No. 02-1, Ladera Ranch, Series A, 4.90%, 8/15/16 ......................................... 1,285,000 1,321,520 No. 03-1, Ladera Ranch, Series A, 4.90%, 8/15/17 ......................................... 1,000,000 1,028,560 No. 03-1, Ladera Ranch, Series A, 5.10%, 8/15/18 ......................................... 1,000,000 1,032,830 No. 04-1, Ladera Ranch, Series A, 4.70%, 8/15/18 ......................................... 1,765,000 1,784,256 No. 04-1, Ladera Ranch, Series A, 4.80%, 8/15/19 ......................................... 1,945,000 1,966,142 No. 04-1, Ladera Ranch, Series A, 4.85%, 8/15/20 ......................................... 2,000,000 2,020,600 Orange County Recovery COP, Series A, MBIA Insured, ETM, 6.00%, 7/01/08 ..................... 1,500,000 1,545,630 Oroville Hospital Revenue, Oroville Hospital, Series A, California Mortgage Insured, 5.125%, 12/01/12 ................................................................................... 1,435,000 1,449,034 Oxnard Harbor District Revenue, Series A, 5.10%, 8/01/14 .................................... 1,000,000 1,033,200 Pajaro Valley USD, GO, Election of 2002, Series A, FSA Insured, Pre-Refunded, 5.00%, 8/01/16 .................................................................................... 1,500,000 1,619,535 Palm Desert Financing Authority Tax Allocation Revenue, Project Area No. 1, As Amended, Series A, MBIA Insured, 5.00%, 4/01/23 ................... 7,690,000 8,176,392 Refunding, MBIA Insured, 4.75%, 8/01/18 .................................................. 1,050,000 1,099,518 Pomona RDA Tax Allocation, Mountain Meadows Redevelopment Project, Refunding, Series X, 5.35%, 12/01/16 ............................................................................ 1,000,000 1,080,570 Poway RDA Tax Allocation, Paguay Redevelopment Project, Series A, MBIA Insured, 4.50%, 6/15/14 .................................................................................... 4,595,000 4,783,763 Redlands USD, GO, Election of 2002, FSA Insured, 5.00%, 7/01/19 ............................. 1,000,000 1,060,360
Quarterly Statements of Investments | 19 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Richmond Joint Powers Financing Authority Revenue, Multiple Redevelopment Projects, Series B, ETM, 5.35%, 5/15/13 ............................................................... $ 2,000,000 $ 2,083,180 Riverside County COP, Capital Improvement, Family Law, Refunding, Series A, FGIC Insured, 5.00%, 11/01/18 .................................................................................. 1,540,000 1,645,043 11/01/19 .................................................................................. 1,615,000 1,719,151 Riverside USD, GO, Election of 2001, Series A, FGIC Insured, 4.00%, 2/01/13 .................. 1,000,000 1,018,180 Sacramento City USD, GO, Election of 1999, Series D, FSA Insured, 5.00%, 7/01/19 ............. 1,465,000 1,557,603 Sacramento County Sanitation District Financing Authority Revenue, Sacramento Regional County Sanitation, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/18 ................... 9,155,000 9,999,366 Sacramento MUD Financing Authority Revenue, Cosumnes Project, MBIA Insured, 5.00%, 7/01/21 ..................................................................................... 3,305,000 3,547,488 San Bernardino County COP, Medical Center Financing Project, Refunding, 6.00%, 8/01/09 ....... 2,000,000 2,091,460 San Carlos School District GO, Election of 2005, Series A, MBIA Insured, 5.00%, 10/01/22 ..... 3,215,000 3,448,441 San Francisco BART District Sales Tax Revenue, Refunding, Series A, MBIA Insured, 5.00%, 7/01/20 ..................................................................................... 5,000,000 5,365,950 San Francisco City and County GO, Refunding, Series 1, FGIC Insured, 5.00%, 6/15/12 .......... 3,650,000 3,733,220 San Francisco City and County Redevelopment Financing Authority Tax Allocation, Redevelopment Projects, Series A, Pre-Refunded, zero cpn., 8/01/17 .......................... 3,825,000 2,263,712 San Joaquin County COP, General Hospital Project, Refunding, MBIA Insured, 5.00%, 9/01/17 ......................... 1,000,000 1,038,810 Solid Waste System Facilities Projects, MBIA Insured, 5.00%, 4/01/17 ...................... 1,340,000 1,421,753 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, 5.60%, 1/15/16 ......................................................... 3,000,000 3,198,840 San Jose MFHR, Countrybrook Project, Refunding, Series A, FNMA Insured, 4.95%, 4/01/12 ....... 4,275,000 4,364,390 San Marcos Public Facilities Authority Revenue, Senior Tax Increment Project Area 3, Series A, MBIA Insured, ETM, 5.10%, 10/01/09 ...................................................................... 515,000 534,498 Pre-Refunded, 5.30%, 10/01/11 ............................................................. 350,000 376,499 Sanger USD, GO, Election of 2006, Series A, FSA Insured, 5.00%, 8/01/19 ................................................................................... 1,325,000 1,444,648 8/01/20 ................................................................................... 1,510,000 1,639,181 Santa Ana COP, Refunding, Series A, AMBAC Insured, 4.25%, 6/01/13 ............................ 1,405,000 1,451,056 Santa Ana USD, GO, Election of 1999, Series B, FGIC Insured, zero cpn., 8/01/14 .............. 3,125,000 2,353,219 Santa Clara 1915 Act, Reassessment District 187, Refunding, Series 1, 5.25%, 9/02/11 ......... 1,720,000 1,778,686 Santa Clara County Financing Authority Lease Revenue, Multiple Facilities Projects, Refunding, Series A, AMBAC Insured, 4.50%, 5/15/12 ..................................................... 2,900,000 2,952,838 Santa Monica-Malibu USD, COP, Series C, MBIA Insured, 4.00%, 5/01/12 ............................................................................ 525,000 530,896 4.25%, 5/01/14 ............................................................................ 840,000 857,304 4.25%, 5/01/15 ............................................................................ 875,000 891,371 4.25%, 11/01/15 ........................................................................... 670,000 682,536 South County Regional Wastewater Authority Revenue, Regional Wastewater Facilities Project, Refunding, FSA Insured, 3.25%, 8/01/11 ...................................................... 1,000,000 985,140 South Gate PFA Tax Allocation Revenue, South Gate Redevelopment Project No. 1, XLCA Insured, 5.00%, 9/01/16 ..................................................................... 2,000,000 2,138,740
20 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE -------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) South Gate PFA Water Revenue, Refunding, Series A, FGIC Insured, 5.35%, 10/01/07 .......................................................................... $ 995,000 $ 1,004,234 5.45%, 10/01/08 .......................................................................... 1,040,000 1,070,295 Stockton Health Facilities Revenue, Dameron Hospital Assn., Refunding, Series A, 5.35%, 12/01/09 ................................................................................... 385,000 396,053 Stockton Port District Port Facilities Revenue, Refunding and Improvement, Series A, FSA Insured, 5.75%, 7/01/11 .................................................................... 1,295,000 1,327,699 Stockton Revenue, O'Connor Woods Housing Corp., Series A, 5.375%, 11/01/11 .................. 1,025,000 1,047,642 Sweetwater UHSD, COP, FSA Insured, 4.15%, 9/01/12 ........................................... 1,000,000 1,021,850 Tobacco Securitization Authority Northern California Tobacco Settlement Revenue, Asset-Backed Bonds, Series B, ETM, 4.25%, 6/01/09 ...................................................................... 880,000 893,200 ETM, 4.375%, 6/01/10 ..................................................................... 1,665,000 1,706,126 ETM, 4.50%, 6/01/11 ...................................................................... 1,540,000 1,596,025 Pre-Refunded, 4.60%, 6/01/12 ............................................................. 1,760,000 1,830,787 Pre-Refunded, 4.70%, 6/01/13 ............................................................. 1,500,000 1,566,075 Pre-Refunded, 4.80%, 6/01/14 ............................................................. 725,000 759,720 Torrance Hospital Revenue, Torrance Memorial Medical Center, Series A, 5.10%, 6/01/12 ....... 1,000,000 1,055,700 University of California Revenues, Limited Project, Series B, FSA Insured, 5.00%, 5/15/21 ................................... 5,000,000 5,324,650 Multiple Purpose Projects, Series N, FGIC Insured, 4.00%, 9/01/12 ........................ 1,380,000 1,405,102 Research Facilities, Series E, AMBAC Insured, Pre-Refunded, 5.00%, 9/01/15 ............... 3,645,000 3,803,630 Victor Valley UHSD, COP, Refunding, AMBAC Insured, 5.00%, 11/15/21 .......................... 1,140,000 1,218,899 West Contra Costa USD, GO, Series B, FSA Insured, 4.00%, 8/01/12 ............................ 1,875,000 1,910,981 Whittier Health Facility Revenue, Presbyterian Intercommunity Hospital, ETM, 5.00%, 6/01/11 ...................................................................... 1,060,000 1,118,883 ETM, 5.00%, 6/01/12 ...................................................................... 2,225,000 2,373,586 Pre-Refunded, 5.00%, 6/01/13 ............................................................. 2,335,000 2,510,382 Yucaipa Valley Water District Water System Revenue COP, Series A, MBIA Insured, 5.00%, 9/01/15 ........................................................................... 1,080,000 1,170,212 5.25%, 9/01/20 ........................................................................... 1,325,000 1,439,083 ------------ 463,615,115 ------------ U.S. TERRITORIES 2.1% PUERTO RICO 0.6% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.25%, 7/01/16 ................ 2,500,000 2,778,075 ------------ VIRGIN ISLANDS 1.5% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 .................................... 4,150,000 4,280,351 Refunding, Series A, 5.30%, 10/01/11 ..................................................... 1,000,000 1,026,750 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.00%, 7/01/09 ................................................................................... 2,000,000 2,018,420 ------------ 7,325,521 ------------ TOTAL U.S. TERRITORIES ...................................................................... 10,103,596 ------------ TOTAL LONG TERM INVESTMENTS (COST $460,952,962) ............................................. 473,718,711 ------------
Quarterly Statements of Investments | 21 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS 1.2% MUNICIPAL BONDS 1.2% CALIFORNIA 1.2% a California State Department of Water Resources Power Supply Revenue, Refunding, Sub Series G-3, FSA Insured, Weekly VRDN and Put, 3.55%, 5/01/16 ............ $ 900,000 $ 900,000 Series B-4, Daily VRDN and Put, 3.61%, 5/01/22 ......................................... 100,000 100,000 Series B-5, Daily VRDN and Put, 3.65%, 5/01/22 ......................................... 800,000 800,000 Series C-7, FSA Insured, Weekly VRDN and Put, 3.55%, 5/01/22 ........................... 500,000 500,000 a California State Economic Recovery Revenue, Series C-2, Weekly VRDN and Put, 3.65%, 7/01/23 .................................................................................. 500,000 500,000 a California State GO, Kindergarten-University, Refunding, Series B-2, Daily VRDN and Put, 3.55%, 5/01/34 ........................................................................... 2,940,000 2,940,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $5,740,000) ............................................. 5,740,000 ------------ TOTAL INVESTMENTS (COST $466,692,962) 98.9% ................................................ 479,458,711 OTHER ASSETS, LESS LIABILITIES 1.1% ........................................................ 5,408,961 ------------ NET ASSETS 100.0% .......................................................................... $484,867,672 ============
See Selected Portfolio Abreviations on page 29. 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. 22 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 70.7% MUNICIPAL BONDS 70.7% CALIFORNIA 61.8% Brea and Olinda USD, GO, Election of 1999, Series A, FGIC Insured, 2.60%, 8/01/09 ............... $ 120,000 $ 116,814 California Educational Facilities Authority Revenue, Santa Clara University, Refunding, Series A, FSA Insured, 2.625%, 9/01/09 ................................................................... 100,000 97,336 California Health Facilities Financing Authority Revenue, Catholic Healthcare West, Series G, 5.00%, 7/01/09 ................................................................................. 750,000 770,587 California State Economic Recovery GO, Series A, 5.00%, 1/01/09 ................................. 415,000 425,267 California State GO, Refunding, FSA Insured, 5.25%, 2/01/10 ..................................... 445,000 465,506 California State Public Works Board Lease Revenue, Department of Corrections, Series C, 5.00%, 6/01/07 ....................................................................................... 500,000 501,070 California Statewide CDA Revenue, Kaiser Permanente, Mandatory Put 5/01/07, Series G, 2.30%, 4/01/34 ........................... 400,000 399,616 TRAN, Series A-1, 4.50%, 6/29/07 ............................................................. 500,000 500,960 Viewpoint School, Refunding, ACA Insured, 3.50%, 10/01/08 .................................... 320,000 315,088 Foothill-De Anza Community College District GO, Election of 1999, Series B, 2.60%, 8/01/08 ........................................................................................ 100,000 98,318 Glendora PFAR Tax Allocation, Project No. 1, Refunding, Series A, MBIA Insured, 2.00%, 9/01/07 ............................................................................... 100,000 99,112 2.125%, 9/01/08 .............................................................................. 105,000 102,325 Lodi USD, COP, Capital Projects, Refunding, FSA Insured, 3.00%, 2/01/08 ......................... 110,000 109,351 Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Project, Refunding, Series A, FSA Insured, 4.00%, 10/01/08 ........................................................ 500,000 504,110 Los Angeles County Schools Pooled Financing Program COP, GO, TRAN, Series A, 4.50%, 6/29/07 ....................................................................................... 500,000 500,960 Lynwood USD, GO, Election of 2002, Series A, FSA Insured, 4.00%, 8/01/10 ........................ 100,000 101,584 Manteca USD Special Tax, CFD No. 89-1, AMBAC Insured, 2.50%, 9/01/08 ............................ 250,000 245,242 North Orange County Community College District GO, Election of 2002, Series B, FGIC Insured, 2.125%, 8/01/08 ............................................................................... 500,000 487,460 Placer County Water Agency Water Revenue COP, Refunding, MBIA Insured, 2.375%, 7/01/07 .......... 105,000 104,570 Poway RDA Tax Allocation, Paguay Redevelopment Project, Series A, MBIA Insured, 3.00%, 6/15/09 ....................................................................................... 100,000 98,597 Rio Linda Unified Elementary School District, Election of 2002, Series A, FSA Insured, 4.00%, 8/01/10 ....................................................................................... 100,000 101,584 Sacramento Power Authority Cogeneration Project Revenue, Refunding, AMBAC Insured, 4.00%, 7/01/08 ....................................................................................... 1,000,000 1,006,220 ------------ 7,151,677 ------------ U.S. TERRITORIES 8.9% GUAM 2.1% Guam International Airport Authority Revenue, Series A, MBIA Insured, 2.375%, 10/01/08 .......... 250,000 243,175 ------------
Quarterly Statements of Investments | 23 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO 6.8% Puerto Rico Commonwealth GO, Public Improvement, Mandatory Put 7/01/08, Refunding, Series C, MBIA Insured, 5.00%, 7/01/28 .................................................... $ 370,000 $ 376,397 Puerto Rico Commonwealth Government Development Bank Revenue, senior notes, Series B, 5.00%, 12/01/08 ........................................................................... 400,000 407,432 ------------ 783,829 ------------ TOTAL U.S. TERRITORIES ...................................................................... 1,027,004 ------------ TOTAL LONG TERM INVESTMENTS (COST $8,239,141) ............................................... 8,178,681 ------------ SHORT TERM INVESTMENTS 28.0% MUNICIPAL BONDS 28.0% CALIFORNIA 28.0% a California Health Facilities Financing Authority Revenue, Sutter Health, Refunding, Series B, AMBAC Insured, Daily VRDN and Put, 3.63%, 7/01/12 .......................................... 200,000 200,000 a California HFAR, MFH, Series D, Daily VRDN and Put, 3.70%, 2/01/31 .......................... 500,000 500,000 a California State Department of Water Resources Power Supply Revenue, Series C-7, FSA Insured, Weekly VRDN and Put, 3.55%, 5/01/22 ........................................................ 400,000 400,000 a California State Economic Recovery Revenue, Series C-3, Daily VRDN and Put, 3.65%, 7/01/23 ........................................... 100,000 100,000 Series C-16, FSA Insured, Weekly VRDN and Put, 3.50%, 7/01/23 ............................ 320,000 320,000 a Irvine 1915 Act Special Assessment, AD No. 03-19, Series A, Daily VRDN and Put, 3.61%, 9/02/29 ............................... 300,000 300,000 AD No. 97-13, Daily VRDN and Put, 3.61%, 9/02/23 ......................................... 100,000 100,000 a Los Angeles Convention and Exhibition Center Authority Lease Revenue, Refunding, Series D, AMBAC Insured, Weekly VRDN and Put, 3.50%, 8/15/21 ......................................... 300,000 300,000 a Metropolitan Water District Southern California Waterworks Revenue, Refunding, Series B-1, Daily VRDN and Put, 3.61%, 7/01/35 ........................................... 200,000 200,000 Series B-3, Daily VRDN and Put, 3.65%, 7/01/35 ........................................... 200,000 200,000 a Newport Beach Revenue, Hoag Memorial Presbyterian Hospital, Series A, Weekly VRDN and Put, 3.65%, 10/01/26 ........................................... 200,000 200,000 Series B, Weekly VRDN and Put, 3.65%, 10/01/26 ........................................... 225,000 225,000 a Orange County Sanitation District COP, Refunding, Series B, Daily VRDN and Put, 3.63%, 8/01/30 .................................................................................... 200,000 200,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,245,000) .............................................. 3,245,000 ------------ TOTAL INVESTMENTS (COST $11,484,141) 98.7% .................................................. 11,423,681 OTHER ASSETS, LESS LIABILITIES 1.3% ......................................................... 147,744 ------------ NET ASSETS 100.0% .......................................................................... $ 11,571,425 ============
See Selected Portfolio Abbreviations on page 29. 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. 24 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 99.3% MUNICIPAL BONDS 99.3% CALIFORNIA 98.4% a Alameda County IDAR, United Manufacturing Project, Series A, Weekly VRDN and Put, 3.65%, 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, 3.46%, 4/01/36 ............................... 12,500,000 12,500,000 Series B, AMBAC Insured, Weekly VRDN and Put, 3.50%, 4/01/39 ............................... 17,200,000 17,200,000 a Butte County Housing Authority MFR, Pine Tree Apartment Project, Weekly VRDN and Put, 3.56%, 12/01/10 ............................................................................. 1,112,000 1,112,000 a California Health Facilities Financing Authority Revenue, Catholic Healthcare West, Refunding, MBIA Insured, Weekly VRDN and Put, 3.58%, 7/01/16 .................................................................................. 3,955,000 3,955,000 Pooled Loan Program, Series B, FGIC Insured, Weekly VRDN and Put, 3.50%, 10/01/10 .......... 1,800,000 1,800,000 Scripps Health, Refunding, Series A, MBIA Insured, Weekly VRDN and Put, 3.36%, 10/01/22 ................................................................................. 3,200,000 3,200,000 a California Infrastructure and Economic Development Bank Revenue, Goodwill Industries Orange County, Weekly VRDN and Put, 3.48%, 3/01/31 ..................... 2,000,000 2,000,000 Independent System Operating Corp. Project, Refunding, Series B, MBIA Insured, Weekly VRDN and Put, 3.47%, 4/01/08 ............................................................. 3,300,000 3,300,000 Independent System Operating Corp. Project, Refunding, Series C, MBIA Insured, Weekly VRDN and Put, 3.53%, 4/01/09 ............................................................. 8,000,000 8,000,000 J. Paul Getty Trust, Series B, Daily VRDN and Put, 3.62%, 4/01/33 .......................... 3,100,000 3,100,000 San Francisco Ballet Assn., FGIC Insured, Daily VRDN and Put, 3.68%, 7/01/36 ............... 2,100,000 2,100,000 California School Cash Reserve Program Authority COP, 2006-2007 TRAN, Series A, 4.50%, 7/06/07 ..................................................................................... 20,000,000 20,050,814 a California State Department of Water Resources Power Supply Revenue, Refunding, Sub Series F-1, Daily VRDN and Put, 3.61%, 5/01/19 .............................. 7,100,000 7,100,000 Series B-4, Daily VRDN and Put, 3.61%, 5/01/22 ............................................. 3,235,000 3,235,000 Series B-5, Daily VRDN and Put, 3.65%, 5/01/22 ............................................. 900,000 900,000 Series B-6, Daily VRDN and Put, 3.61%, 5/01/22 ............................................. 2,115,000 2,115,000 Series C-5, Weekly VRDN and Put, 3.49%, 5/01/22 ............................................ 5,000,000 5,000,000 Series C-8, Weekly VRDN and Put, 3.50%, 5/01/22 ............................................ 7,600,000 7,600,000 Series C-9, Weekly VRDN and Put, 3.53%, 5/01/22 ............................................ 300,000 300,000 Series C-12, Weekly VRDN and Put, 3.55%, 5/01/22 ........................................... 6,700,000 6,700,000 a California State Economic Development Financing Authority Revenue, Calco Project, Weekly VRDN and Put, 3.62%, 4/01/27 ......................................... 1,360,000 1,360,000 KQED Inc. Project, Refunding, Weekly VRDN and Put, 3.55%, 4/01/20 .......................... 900,000 900,000 a California State Economic Recovery Revenue, Series C-3, Daily VRDN and Put, 3.65%, 7/01/23 ............................................. 800,000 800,000 Series C-8, Daily VRDN and Put, 3.55%, 7/01/23 ............................................. 2,700,000 2,700,000 Series C-9, Daily VRDN and Put, 3.55%, 7/01/23 ............................................. 800,000 800,000 Series C-14, XLCA Insured, Weekly VRDN and Put, 3.55%, 7/01/23 ............................. 30,300,000 30,300,000 a California State GO, Kindergarten-University, Refunding, Series B-2, Daily VRDN and Put, 3.55%, 5/01/34 ......... 3,150,000 3,150,000 Kindergarten-University, Series B-3, Daily VRDN and Put, 3.61%, 5/01/34 .................... 1,000,000 1,000,000 Refunding, Series B, Sub Series B-7, Daily VRDN and Put, 3.65%, 5/01/40 .................... 2,700,000 2,700,000 Series A-3, Daily VRDN and Put, 3.65%, 5/01/33 ............................................. 8,200,000 8,200,000 Series B-1, Weekly VRDN and Put, 3.53%, 5/01/33 ............................................ 5,000,000 5,000,000 Series C-2, Weekly VRDN and Put, 3.55%, 5/01/33 ............................................ 6,700,000 6,700,000
Quarterly Statements of Investments | 25 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) California State University Revenue, TECP, Series A, 3.49%, 6/08/07 ....................... $ 25,000,000 $ 25,000,000 California Statewide CDA Revenue, a Museum of Art Project, Series C, FGIC Insured, Weekly VRDN and Put, 3.54%, 12/01/34 .... 5,075,000 5,075,000 a North Peninsula Jewish, Daily VRDN and Put, 3.68%, 7/01/34 ............................. 3,000,000 3,000,000 TRAN, Series A-1, 4.50%, 6/29/07 ....................................................... 15,000,000 15,033,208 a Carlsbad USD, COP, School Facility Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.55%, 9/01/14 ...................................................................... 400,000 400,000 a Chico MFMR, Webb Homes Project, Monthly VRDN and Put, 3.65%, 1/01/10 ...................... 770,000 770,000 a Commerce Joint Powers Financing Authority IDR, Weekly VRDN and Put, 3.65%, 11/01/14 ....... 1,355,000 1,355,000 East Bay MUD Wastewater System Revenue, a Refunding, Sub Series 2, XLCA Insured, Weekly VRDN and Put, 3.50%, 6/01/38 ............. 4,650,000 4,650,000 TECP, 3.55%, 5/09/07 ................................................................... 3,400,000 3,400,000 a Eastern Municipal Water District Water and Sewer Revenue COP, Refunding, Series B, MBIA Insured, Weekly VRDN and Put, 3.55%, 7/01/33 ............................................. 2,360,000 2,360,000 a Elsinore Valley Municipal Water District COP, Series A, FGIC Insured, Weekly VRDN and Put, 3.55%, 7/01/29 ........................................................................... 15,000,000 15,000,000 a Fremont PFA, COP, Weekly VRDN and Put, 3.49%, 8/01/30 ..................................... 5,400,000 5,400,000 a Grant Joint UHSD, COP, School Facilities Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.55%, 9/01/34 ................................................................................ 4,900,000 4,900,000 Various Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.55%, 7/01/37 ........ 10,000,000 10,000,000 a Hillsborough COP, Water and Sewer System Project, Refunding, Series B, Weekly VRDN and Put, 3.55%, 6/01/30 ........................................................................... 4,100,000 4,100,000 a Irvine 1915 Act Special Assessment, AD No. 00-18, Series A, Daily VRDN and Put, 3.61%, 9/02/26 .............................. 3,027,000 3,027,000 AD No. 03-19, Series A, Daily VRDN and Put, 3.61%, 9/02/29 .............................. 5,567,000 5,567,000 AD No. 03-19, Series B, Daily VRDN and Put, 3.65%, 9/02/29 .............................. 1,105,000 1,105,000 AD No. 05-21, Series A, Daily VRDN and Put, 3.65%, 9/02/31 .............................. 5,900,000 5,900,000 AD No. 93-14, Daily VRDN and Put, 3.65%, 9/02/25 ........................................ 1,956,000 1,956,000 AD No. 94-13, Daily VRDN and Put, 3.61%, 9/02/22 ........................................ 5,600,000 5,600,000 AD No. 97-13, Daily VRDN and Put, 3.61%, 9/02/23 ........................................ 2,954,000 2,954,000 AD No. 97-16, Daily VRDN and Put, 3.61%, 9/02/22 ........................................ 1,600,000 1,600,000 a Irvine Improvement Bond Act 1915 Revenue, AD No. 94-15, Refunding, Daily VRDN and Put, 3.61%, 9/02/20 ........................................................................... 5,367,000 5,367,000 a Irvine Ranch Water District GO, Consolidated ID, Daily VRDN and Put, 3.57%, 6/01/15 ..................................... 2,575,000 2,575,000 District Nos. 105 140 240 and 250, Daily VRDN and Put, 3.65%, 1/01/21 ................... 4,500,000 4,500,000 a Los Angeles COP, Kadima Hebrew Academy, Series A, Weekly VRDN and Put, 3.55%, 8/01/35 .................................................................................. 1,300,000 1,300,000 Los Angeles County GO, TRAN, Series A, 4.50%, 6/29/07 ..................................... 20,000,000 20,047,089 a Los Angeles County Pension Obligation Revenue, Refunding, Series A, AMBAC Insured, Weekly VRDN and Put, 3.55%, 6/30/07 ............................ 500,000 500,000 Series B, AMBAC Insured, Weekly VRDN and Put, 3.55%, 6/30/07 ............................ 1,200,000 1,200,000 Los Angeles County Schools Pooled Financing Program COP, GO, TRAN, Series A, 4.50%, 6/29/07 .................................................................................. 10,000,000 10,023,544
26 | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) a Los Angeles Department of Water and Power Waterworks Revenue, Sub Series B-2, Daily VRDN and Put, 3.61%, 7/01/35 ......................................... $ 15,000,000 $ 15,000,000 Sub Series B-4, Weekly VRDN and Put, 3.53%, 7/01/35 ........................................ 6,650,000 6,650,000 a Los Angeles MFR, Casden Project, Series K, Weekly VRDN and Put, 3.58%, 7/01/10 ............... 145,507 145,507 a Los Angeles Wastewater System Revenue, Refunding, Sub Series A, FGIC Insured, Weekly VRDN and Put, 3.55%, 12/01/31 ........................... 4,895,000 4,895,000 Sub Series B-1, XLCA Insured, Weekly VRDN and Put, 3.52%, 6/01/28 .......................... 4,550,000 4,550,000 a M-S-R Public Power Agency San Juan Project Revenue, sub. lien, Refunding, Series F, MBIA Insured, Daily VRDN and Put, 3.68%, 7/01/22 ................................................. 7,135,000 7,135,000 a Metropolitan Water District Southern California Waterworks Revenue, Refunding, Series A, AMBAC Insured, Weekly VRDN and Put, 3.52%, 6/01/23 .................... 6,270,000 6,270,000 Refunding, Series B-1, Daily VRDN and Put, 3.61%, 7/01/35 .................................. 8,275,000 8,275,000 Refunding, Series B-3, Daily VRDN and Put, 3.65%, 7/01/35 .................................. 700,000 700,000 Refunding, Series B-4, Weekly VRDN and Put, 3.54%, 7/01/35 ................................. 7,000,000 7,000,000 Refunding, Series C-1, Weekly VRDN and Put, 3.52%, 7/01/30 ................................. 3,000,000 3,000,000 Series C, Weekly VRDN and Put, 3.55%, 7/01/28 .............................................. 13,200,000 13,200,000 a Murrieta Valley USD, COP, School Facility Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.55%, 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, 3.55%, 7/01/23 ................................. 8,700,000 8,700,000 a Oakland COP, Capital Equipment Project, Weekly VRDN and Put, 3.55%, 12/01/15 ................. 5,300,000 5,300,000 a Orange County Apartment Development Revenue, Aliso Creek Project Refunding, Series B, Weekly VRDN and Put, 3.52%, 11/01/22 ........................................................ 7,000,000 7,000,000 a Orange County Sanitation District COP, Daily VRDN and Put, 3.55%, 2/01/36 ......................................................... 25,000,000 25,000,000 Refunding, Series A, Daily VRDN and Put, 3.63%, 8/01/29 .................................... 300,000 300,000 Refunding, Series B, Daily VRDN and Put, 3.63%, 8/01/30 .................................... 550,000 550,000 a Pajaro Valley USD, COP, School Facility Bridge Funding Program, FSA Insured, Weekly VRDN and Put, 3.55%, 9/01/31 ..................................................................... 700,000 700,000 a Rancho Water District Financing Authority Revenue, Refunding, Series A, FGIC Insured, Weekly VRDN and Put, 3.55%, 8/01/29 ................................................................ 5,200,000 5,200,000 Ravenswood City School District Revenue, TRAN, 4.50%, 7/05/07 ................................ 2,555,000 2,560,128 a Riverside County Asset Leasing Corp. Leasehold Revenue, Southwest Justice Center, Series B, MBIA Insured, Weekly VRDN and Put, 3.55%, 11/01/32 .......................................... 5,000,000 5,000,000 a Riverside County COP, Riverside County Public Facilities, ACES, Series B, Weekly VRDN and Put, 3.51%, 12/01/15 ............................................................................. 1,500,000 1,500,000 Riverside County Teeter Obligation Revenue, TECP, 3.55%, 5/09/07 ............................. 6,000,000 6,000,000 a Sacramento County COP, Administration Center and Courthouse Project, Weekly VRDN and Put, 3.49%, 6/01/20 .............................................................................. 15,065,000 15,065,000 Sacramento County GO, TRAN, 4.50%, 7/17/07 ................................................... 15,000,000 15,038,033 a Sacramento County Sanitation District Financing Authority Revenue, Series C, Weekly VRDN and Put, 3.55%, 12/01/30 ........................................................................ 28,600,000 28,600,000 a San Francisco City and County RDA, MFR, Fillmore Center, Refunding, Series B-2, Weekly VRDN and Put, 3.64%, 12/01/17 .................................................................... 1,000,000 1,000,000 a San Jose RDAR, Merged Area Redevelopment Project, Series A, Weekly VRDN and Put, 3.52%, 7/01/26 ..................................................................................... 5,000,000 5,000,000
Quarterly Statements of Investments | 27 Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND PRINCIPAL AMOUNT VALUE -------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) a San Mateo UHSD, COP, School Facility Bridge Funding Program, FSA Insured, Daily VRDN and Put, 3.55%, 9/01/34 ...................................................................... $ 9,800,000 $ 9,800,000 a Santa Clara County Housing Authority MFHR, Benton Park Central Apartments, Refunding, Series A, FNMA Insured, Weekly VRDN and Put, 3.57%, 12/15/25 ............................. 5,000,000 5,000,000 a South Placer Wastewater Authority Wastewater Revenue, Series B, FGIC Insured, Weekly VRDN and Put, 3.67%, 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, 3.55%, 7/01/17 .................. 700,000 700,000 a Southern California Public Power Authority Transmission Project Revenue, Southern Transmission, Refunding, AMBAC Insured, Weekly VRDN and Put, 3.55%, 7/01/19 ...................................... 13,315,000 13,315,000 Series A, FSA Insured, Weekly VRDN and Put, 3.55%, 7/01/23 .............................. 4,000,000 4,000,000 Series B, FSA Insured, Weekly VRDN and Put, 3.50%, 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, 3.50%, 1/01/10 ............ 2,400,000 2,400,000 a Turlock Irrigation District COP, Capital Improvement and Refunding Project, Daily VRDN and Put, 3.68%, 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, 3.61%, 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, 3.57%, 7/15/29 .................................................................. 2,000,000 2,000,000 a Vallejo Housing Authority MFR, FNMA Insured, Weekly VRDN and Put, 3.55%, 5/15/22 .......... 1,985,000 1,985,000 a WateReuse Finance Authority Revenue, FSA Insured, Weekly VRDN and Put, 3.50%, 5/01/28 .................................................................................. 17,775,000 17,775,000 a Western Placer Union School COP, Facilities Project B, Weekly VRDN and Put, 3.54%, 8/01/23 .................................................................................. 4,800,000 4,800,000 a Western Riverside County Regional Wastewater Authority Revenue, Regional Wastewater Treatment, Daily VRDN and Put, 3.63%, 4/01/28 ............................................ 950,000 950,000 ------------ 663,770,323 ------------ U.S. TERRITORIES 0.9% PUERTO RICO 0.9% Puerto Rico Commonwealth Revenue, TRAN, 4.50%, 7/30/07 .................................... 6,000,000 6,016,835 ------------ TOTAL SHORT TERM INVESTMENTS (COST $669,787,158) .......................................... 669,787,158 OTHER ASSETS, LESS LIABILITIES 0.7% ....................................................... 4,384,796 ------------ NET ASSETS 100.0% ......................................................................... $674,171,954 ============
See Selected Portfolio Abbreviations on page 29. 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. 28 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin California Tax-Free Trust STATEMENT OF INVESTMENTS, MARCH 31, 2007 (UNAUDITED) (CONTINUED) 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 Security 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 ETM - Escrow to Maturity FGIC - Financial Guaranty Insurance Co. FNMA - Federal National Mortgage Association FSA - Financial Security Assurance Inc. GO - General Obligation HFA - Housing Finance Authority/Agency HFAR - Housing Finance Authority Revenue ID - Improvement District IDAR - Industrial Development Authority Revenue IDR - Industrial Development Revenue MBIA - Municipal Bond Investors Assurance Corp. MFH - Multi-Family Housing MFHR - Multi-Family Housing Revenue MFMR - Multi-Family Mortgage Revenue MFR - Multi-Family Revenue MTA - Metropolitan Transit Authority MUD - Municipal Utility District PFA - Public Financing Authority PFAR - Public Financing Authority Revenue RDA - Redevelopment Agency/Authority RDAR - Redevelopment Agency Revenue SFM - Single Family Mortgage TECP - Tax-Exempt Commercial Paper TRAN - Tax and Revenue Anticipation Note UHSD - Unified/Union High School District USD - Unified/Union School District XLCA - XL Capital Assurance Quarterly Statements of Investments | See Notes to Statements of Investments. | 29 Franklin California Tax-Free Trust NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) 1. ORGANIZATION Franklin California Tax-Free Trust is registered under the Investment Company Act of 1940, as amended, as an open-end investment company, consisting of four funds (the Funds). All Funds are diversified, except the Franklin California Intermediate-Term Tax-Free Income Fund, which is non-diversified. 2. SECURITY VALUATION Municipal securities generally trade in the over-the-counter market rather than on a securities exchange. The Trust may utilize independent pricing services, quotations from bond dealers, and information with respect to bond and note transactions, to assist in determining a current market value for each security. The Trust's pricing services use valuation models or matrix pricing, which considers information with respect to comparable bond and note transactions, quotations from bond dealers or by reference to other securities that are considered comparable in such characteristics as rating, interest rate and maturity date, to determine current value. The Trust has procedures to determine the fair value of individual securities and other assets for which market prices are not readily available or which may not be reliably priced. Methods for valuing these securities may include: fundamental analysis, matrix pricing, discounts from market prices of similar securities, or discounts applied due to the nature and duration of restrictions on the disposition of the securities. Due to the inherent uncertainty of valuations of such securities, the fair values may differ significantly from the values that would have been used had a ready market for such investments existed. Occasionally, events occur between the time at which trading in a security is completed and the close of the NYSE that might call into question the availability (including the reliability) of the value of a portfolio security held by the fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services. Securities in the Franklin California Tax-Exempt Money Fund are valued at amortized cost which approximates market value. This method involves valuing an instrument at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. All security valuation procedures are approved by the Trust's Board of Trustees. 30 | Quarterly Statements of Investments Franklin California Tax-Free Trust NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. INCOME TAXES At March 31, 2007, 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 .............................. $ 1,868,530,269 $ 466,655,244 $ 11,484,141 ================================================================= Unrealized appreciation .......................... 135,335,254 $ 13,202,588 292 Unrealized depreciation .......................... $ (258,182) (399,121) $ (60,752) ----------------------------------------------------------------- Net unrealized appreciation (depreciation) .................................. $ 135,077,072 $ 12,803,467 $ (60,460) =================================================================
At March 31, 2007, the cost of investments for book and income tax purposes was the same for the 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 24, 2007 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 24, 2007 By /S/GALEN G. VETTER ------------------- Galen G. Vetter Chief Financial Officer Date May 24, 2007 Exhibit 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 24, 2007 /S/JIMMY D. GAMBILL 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 24, 2007 /S/GALEN G. VETTER Galen G. Vetter Chief Financial Officer