UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

 

Investment Company Act file number 811-10331

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock California Municipal Income Trust, 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 07/31/2015

 

Date of reporting period: 10/31/2014

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments October 31, 2014 (Unaudited) BlackRock California Municipal Income Trust (BFZ)
  (Percentages shown are based on Net Assets)
   

 

 

Municipal Bonds Par
(000)		   Value  
  

California — 102.5%

  
Corporate — 0.8%  
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:          
  Series A, 5.88%, 2/15/34 $ 680 $ 809,907  
  Series D, 5.88%, 1/01/34   2,500   2,977,600  
   
    3,787,507  
  
County/City/Special District/School District — 34.2%  
Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30   8,425   9,842,001  
Centinela Valley Union High School District, GO, Refunding, Election of 2008, Series B, 5.75%, 8/01/33   1,250   1,517,050  
Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/19 (a)   3,000   3,459,000  
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:          
  6.13%, 5/01/31   500   604,780  
  6.50%, 5/01/36   1,210   1,494,616  
  6.50%, 5/01/42   2,225   2,724,468  
County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35   2,000   2,336,020  
County of Orange California Water District, COP, Refunding:          
  5.25%, 8/15/34   2,000   2,324,960  
  Series A, 5.00%, 8/15/41   2,000   2,273,420  
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A:          
  6.00%, 3/01/36   2,880   3,536,986  
  5.50%, 3/01/41   5,265   6,226,863  
County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36   20,000   22,225,200  
Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33   2,500   2,851,250  
Grossmont Healthcare District, GO, Election of 2006, Series B:          
  6.00%, 7/15/34   3,260   4,016,842  
  6.13%, 7/15/40   2,000   2,479,800  
Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33   4,135   4,885,957  
Municipal Bonds Par
(000)		   Value  
  

California (continued)

  
County/City/Special District/School District (continued)  
Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33 $ 6,315 $ 7,275,511  
Los Angeles Community College District California, GO, Election of 2003, Series F-1, 5.00%, 8/01/33   5,000   5,607,850  
Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30   5,065   5,846,732  
Modesto Irrigation District, COP, Capital Improvments, Series A, 5.75%, 10/01/29   3,015   3,481,692  
Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33   6,000   6,988,860  
Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39   2,000   2,229,460  
Pittsburg Unified School District, GO, Election of 2006, Series B (AGM), 5.50%, 8/01/34   2,000   2,264,540  
Sacramento Area Flood Control Agency, Special Assessment Bonds, Consolidated Capital Assessment District, 5.25%, 10/01/32   4,865   5,767,555  
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33   1,500   1,736,895  
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36   5,520   6,331,440  
San Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 6/01/32   3,375   3,879,630  
San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41   3,060   3,608,658  
San Mateo County Community College District, GO, Election of 2005, Series B, 5.00%, 9/01/16 (a)   8,630   9,363,722  
Santa Ana Unified School District, GO, Election of 2008, Series A:          
  5.50%, 8/01/30   6,455   7,374,386  
  5.13%, 8/01/33   10,000   11,237,700  

     
  BlackRock CALIFORNIA Municipal Income Trust OCTOBER 31, 2014 1
           
 
 
Schedule of Investments (continued) BlackRock California Municipal Income Trust (BFZ)
  (Percentages shown are based on Net Assets)
   
Municipal Bonds Par
(000)		   Value  
  

California (continued)

  
County/City/Special District/School District (concluded)  
Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38 $ 2,250 $ 2,634,907  
Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33   4,000   4,777,880  
Tustin Unified School District, GO, Election of 2008, Series B, 5.25%, 8/01/31   3,445   3,974,428  
West Contra Costa California Unified School District, GO, Series A:          
  Election of 2010 (AGM), 5.25%, 8/01/32   4,945   5,801,029  
  Election of 2012, 5.50%, 8/01/39   2,500   2,912,850  
   
    175,894,938  
  
Education — 3.7%  
California Educational Facilities Authority, RB, California Institute of Technology, 5.00%, 11/01/39   7,000   8,076,110  
California Educational Facilities Authority, Refunding RB, San Francisco University, 6.13%, 10/01/36   6,280   7,672,967  
California Municipal Finance Authority, RB, Emerson College, 5.75%, 1/01/33   2,500   2,894,875  
University of California, RB, Series O, 5.38%, 5/15/34   490   566,092  
   
    19,210,044  
  
Health — 16.8%  
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare:          
  Series A, 6.00%, 8/01/30   2,300   2,822,698  
  Series B, 6.25%, 8/01/39   4,960   5,843,922  
California Health Facilities Financing Authority, RB:          
  Adventist Health System West, Series A, 5.75%, 9/01/39   6,700   7,774,680  
  Catholic Healthcare West, Series J, 5.63%, 7/01/15 (a)   9,750   10,102,852  
  Children's Hospital, Series A, 5.25%, 11/01/41   9,165   10,123,201  
Municipal Bonds Par
(000)		   Value  
  

California (continued)

  
Health (concluded)  
California Health Facilities Financing Authority, RB (concluded):          
  St. Joseph Health System, Series A, 5.75%, 7/01/39 $ 330 $ 384,229  
  Sutter Health, Series A, 5.25%, 11/15/46   5,195   5,592,365  
  Sutter Health, Series B, 6.00%, 8/15/42   6,015   7,272,616  
California Health Facilities Financing Authority, Refunding RB:          
  Catholic Healthcare West, Series A, 6.00%, 7/01/34   4,470   5,260,519  
  Catholic Healthcare West, Series A, 6.00%, 7/01/39   5,550   6,488,394  
  Stanford Hospital and Clinics, Series A-2, 5.25%, 11/15/40   2,000   2,330,500  
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series B, 5.25%, 3/01/45   2,000   2,063,880  
California Statewide Communities Development Authority, Refunding RB:          
  Catholic Healthcare West, Series B, 5.50%, 7/01/30   2,920   3,246,865  
  Catholic Healthcare West, Series E, 5.50%, 7/01/31   5,065   5,633,394  
  Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41   4,000   4,418,320  
Golden State Tobacco Securitization Corp., Refunding RB, Senior, Series A-1, 5.75%, 6/01/47   6,525   5,300,323  
Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38   1,625   1,949,399  
   
    86,608,157  
  
State — 10.5%  
State of California, GO, Various Purposes:          
  6.00%, 3/01/33   2,000   2,452,700  
  6.00%, 4/01/38   15,875   19,021,901  


     
  BlackRock CALIFORNIA Municipal Income Trust OCTOBER 31, 2014 2
           
 
 
Schedule of Investments (continued) BlackRock California Municipal Income Trust (BFZ)
  (Percentages shown are based on Net Assets)
   
Municipal Bonds Par
(000)		   Value  
  

California (continued)

  
State (concluded)  
State of California Public Works Board, LRB:          
  Correctional Facilities Improvements, Series A, 5.00%, 9/01/39 $ 5,000 $ 5,645,850  
  Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33   3,335   3,890,811  
  Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34   9,000   10,948,410  
  Various Capital Projects, Series I, 5.50%, 11/01/33   4,940   5,960,160  
  Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34   5,025   6,205,322  
   
    54,125,154  
  
Transportation — 11.7%  
City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39   6,750   8,027,167  
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 5/01/33   1,440   1,650,096  
City of Los Angeles California Department of Airports, RB, Los Angeles International Airport, Series D, 5.00%, 5/15/40   2,200   2,503,072  
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport:          
  Senior Series A, 5.00%, 5/15/34   6,650   7,521,682  
  Series A, Senior, 5.00%, 5/15/40   6,750   7,679,880  
  Sub-Series C, 5.25%, 5/15/38   1,960   2,184,479  
City of San Jose California, Refunding ARB, Series A-1, AMT:          
  5.75%, 3/01/34   2,870   3,267,007  
  6.25%, 3/01/34   2,650   3,111,550  
County of Orange California, ARB, Series B, 5.75%, 7/01/34   8,000   8,944,560  
County of Sacramento California, ARB:          
  PFC/Grant, Sub-Series D, 6.00%, 7/01/35   3,000   3,441,660  
  Senior Series B, 5.75%, 7/01/39   1,850   2,107,446  
Municipal Bonds Par
(000)		   Value  
  

California (continued)

  
Transportation (concluded)  
County of Sacramento California, ARB (concluded):          
  Senior Series B, AMT (AGM), 5.25%, 7/01/33 $ 3,035 $ 3,270,304  
Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34   5,580   6,428,272  
   
    60,137,175  
  
Utilities — 24.8%  
Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36   7,690   9,098,577  
California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/15 (a)   4,500   4,568,760  
Calleguas-Las Virgenes Public Financing Authority California, RB, Calleguas Municipal Water District Project, Series A (NPFGC), 5.13%, 7/01/16 (a)   4,000   4,318,520  
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:          
  Series B, 5.88%, 2/15/34   525   625,296  
  Series D, 5.88%, 1/01/34   6,555   7,807,267  
City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39   4,000   4,510,280  
City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 6/01/39   2,000   2,257,600  
City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36   5,625   6,848,325  
City of San Francisco California Public Utilities Commission Water Revenue, RB, Series A:          
  5.00%, 11/01/35   10,625   12,154,363  
  5.00%, 11/01/37   5,000   5,674,050  
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33   4,250   4,707,385  
Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.25%, 9/01/31   4,270   5,133,351  


     
  BlackRock CALIFORNIA Municipal Income Trust OCTOBER 31, 2014 3
           
 
 
Schedule of Investments (continued) BlackRock California Municipal Income Trust (BFZ)
  (Percentages shown are based on Net Assets)
   
Municipal Bonds Par
(000)		   Value  
  

California (concluded)

  
Utilities (concluded)  
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 $ 2,425 $ 2,938,179  
East Bay California Municipal Utility District Water System Revenue, RB, Series A (NPFGC), 5.00%, 6/01/35   820   840,566  
East Bay California Municipal Utility District Water System Revenue, Refunding RB, Series A, 5.00%, 6/01/36   6,745   7,792,161  
El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39   10,000   11,686,300  
Los Angeles Department of Water & Power, RB:          
  Power System, Sub-Series A-1, 5.25%, 7/01/38   9,000   10,127,610  
  Series A, 5.38%, 7/01/34   3,250   3,714,295  
  Water Utility Improvement, Sub-Series A-2 (AGM), 5.00%, 7/01/35   1,000   1,067,750  
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37   4,000   4,410,480  
San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34   11,020   12,681,816  
State of California Department of Water Resources, Refunding RB, Central Valley Project, Series A-E, 5.00%, 12/01/29   4,000   4,547,000  
   
    127,509,931  
  
Total Municipal Bonds in California   527,272,906  
  
       
  

Multi-State — 1.5%

  
Housing — 1.5%  
Centerline Equity Issuer Trust (b)(c):          
  Series A-4-1, 5.75%, 5/15/15   500   511,535  
  Series A-4-2, 6.00%, 5/15/19   1,000   1,152,420  
  Series B-2, 7.20%, 11/15/14   3,500   3,500,000  
  Series B-3-1, 6.00%, 5/15/15   1,500   1,534,755  
  Series B-3-2, 6.30%, 5/15/19   1,000   1,163,790  
  
Total Municipal Bonds in Multi-State   7,862,500  
  
Total Municipal Bonds — 104.0%   535,135,406  
  

 

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (d)

 Par
(000)		   Value  
  

California — 48.5%

  
County/City/Special District/School District — 16.0%  
Los Angeles Community College District California, GO, Election of 2008, Series A:          
  Election of 2001 (AGM), 5.00%, 8/01/32 $ 8,000 $ 8,813,920  
  Series C, 5.25%, 8/01/39 (e)   12,900   14,948,520  
Los Angeles Community College District California, GO, Refunding, , 6.00%, 8/01/33   20,131   24,311,921  
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34   5,000   5,660,300  
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33   10,484   12,140,279  
San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32   14,625   16,357,554  
   
    82,232,494  
  
Education — 8.4%  
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (e)   10,395   11,757,888  
Grossmont Union High School District, GO, Election of 2004, 5.00%, 8/01/33   13,095   14,444,296  
University of California, RB:          
  Limited Project, Series D (AGM), 5.00%, 5/15/41   2,600   2,778,672  
  Series O, 5.75%, 5/15/34   12,300   14,463,529  
   
    43,444,385  
  
Health — 4.0%  
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42   18,960   20,910,415  
  
Utilities — 20.1%  
County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37   14,700   15,908,340  
County of Orange California Water District, COP, Refunding, 5.00%, 8/15/39   10,480   12,057,554  
     
  BlackRock CALIFORNIA Municipal Income Trust OCTOBER 31, 2014 4
           
 
 
Schedule of Investments (continued) BlackRock California Municipal Income Trust (BFZ)
  (Percentages shown are based on Net Assets)
   

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (d)

 Par
(000)		   Value  
  

California (concluded)

  
Utilities (concluded)  
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 $ 10,040 $ 11,120,505  
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33   18,002   20,099,250  
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37   15,998   17,466,824  
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37   11,180   12,327,292  
San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/39   12,457   14,295,807  
   
    103,275,572  
  

Total Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts — 48.5%

   249,862,866  
  
Total Long-Term Investments
(Cost — $703,275,060) — 152.5%		   784,998,272  
  
             

 

 

Short-Term Securities

 Shares   Value  
  
BIF California Municipal Money
Fund, 0.00% (f)(g)		   2,074,955 $ 2,074,955  
  

 

 

 Par
(000)		      
  
California School Cash Reserve Program Authority, RB, Series G, 2.00%, 2/27/15 $ 1,665   1,673,253  
  
Total Short-Term Securities
(Cost — $3,748,208) — 0.7%		   3,748,208  
  
Total Investments
(Cost — $707,023,268) — 153.2%		   788,746,480  
Other Assets Less Liabilities — 2.7%   13,487,435  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (22.6%)   (116,196,512 )
VMTP Shares, at Liquidation Value — (33.3%)   (171,300,000 )
   
Net Assets Applicable to Common Shares — 100.0% $ 514,737,403  
             
   

 

* As of October 31, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

  
Tax cost $ 591,218,418  
 
Gross unrealized appreciation $ 81,727,417  
Gross unrealized depreciation   (376,909 )
 
Net unrealized appreciation $ 81,350,508  
 
         


 

 

Notes to Schedule of Investments

(a) U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) Represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.
(c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d) Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds serve as collateral in a financing transaction.
(e) All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expire from October 1, 2016 to August 1, 2018 is $14,013,480.
(f) Investments in issuers considered to be an affiliate of the Trust during the period ended October 31, 2014, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

  Affiliate   Shares
Held at
July 31, 2014		   Net
Activity		   Shares
Held at
October 31, 2014		   Income
  BIF California Municipal Money Fund   540,673   1,534,282   2,074,955   —
(g) Represents the current yield as of report date.  
 
     
  BlackRock CALIFORNIA Municipal Income Trust OCTOBER 31, 2014 5
           
 
 
Schedule of Investments (continued) BlackRock California Municipal Income Trust (BFZ)
 
   

 

 

Portfolio Abbreviations

 
 
 
AGC Assured Guarantee Corp.  
AGM Assured Guaranty Municipal Corp.  
AMBAC American Municipal Bond Assurance Corp.  
AMT Alternative Minimum Tax (subject to)  
ARB Airport Revenue Bonds  
COP Certificates of Participation  
GO General Obligation Bonds  
LRB Lease Revenue Bonds  
NPFGC National Public Finance Guarantee Corp.  
RB Revenue Bonds  

•
Financial futures contracts outstanding as of October 31, 2014 were as follows:
 
Contracts
Sold		 Issue Exchange Expiration Notional
Value		   Unrealized
Depreciation		  
(410) 10-Year U.S. Treasury Note Chicago Board of Trade December
2014		 $ 51,807,344 $ (333,669)  
                 
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
 
•

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

Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

  • Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access
 
  • Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
 
  • Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust's own assumptions used in determining the fair value of investments and derivative financial instruments)
 

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust's policy regarding valuation of investments and derivative financial instruments, please refer to the Trust’s most recent financial statements as contained in its annual report.

 

 

     
  BlackRock CALIFORNIA Municipal Income Trust OCTOBER 31, 2014 6
           
 
 
Schedule of Investments (concluded) BlackRock California Municipal Income Trust (BFZ)
 
   

The following tables summarize the Trust's investments and derivative financial instruments categorized in the disclosure hierarchy as of October 31, 2014:

 

 

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
Investments:  
  Long-Term Investments 1   — $ 784,998,272   — $ 784,998,272  
  Short-Term Securities $ 2,074,955   1,673,253   —   3,748,208  
Total $ 2,074,955 $ 786,671,525   — $ 788,746,480  
   
                                 

 

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

 

 
  Level 1   Level 2   Level 3   Total  
 
Derivative Financial Instruments 2  
Liabilities:  
Interest rate contracts $ (333,669)   —   — $ (333,669)  
   
                               

 

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

 

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of October 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
  

 

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
  Cash pledged for financial futures contracts $ 495,000   —   — $ 495,000  
Liabilities:    
  TOB trust certificates   — $ (116,177,554)   —   (116,177,554)  
  VMTP Shares   —   (171,300,000)   —   (171,300,000)  
Total $ 495,000 $ (287,477,554)   — $ (286,982,554)  
                                 

 


There were no transfers between levels during the period ended October 31, 2014.

 

 

     
  BlackRock CALIFORNIA Municipal Income Trust OCTOBER 31, 2014 7
           
 
 
Item 2 – Controls and Procedures
2(a) – The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) – There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock California Municipal Income Trust

 

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

 

Date: December 23, 2014

 

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

 

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

 

Date: December 23, 2014

 

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

 

Date: December 23, 2014