BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-10331

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

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

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

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

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

Date of fiscal year end: 07/31/2013

Date of reporting period: 10/31/2012


Item 1 – Schedule of Investments


 

 

Schedule of Investments October 31, 2012  (Unaudited)

 

 

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

  

Par

(000)

 

    

Value

 

 

California — 94.0%

                 

Corporate — 0.1%

     

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

Series A, 5.88%, 2/15/34

   $ 680       $ 802,216   

 

 

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         9,899,796   

California State Public Works Board, RB, Various Capital Projects,
Sub-Series I-1, 6.63%, 11/01/34

     7,950         9,763,077   

Cerritos Community College District, GO, Election of 2004, Series C,
5.25%, 8/01/31

     3,000         3,462,210   

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

     

6.13%, 5/01/31

     500         600,670   

6.50%, 5/01/36

     1,210         1,455,170   

6.50%, 5/01/42

     2,225         2,672,225   

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

     2,000         2,343,240   

County of Los Angeles California Public Works Financing Authority, Refunding RB, Multiple Capital Projects II, 5.00%, 8/01/42 (a)

     4,640         5,137,733   

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

     2,500         2,840,300   

Grossmont Healthcare District, GO, Election of 2006, Series B:

     

6.00%, 7/15/34

     2,235         2,747,173   

6.13%, 7/15/40

     2,000         2,460,540   

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

     4,135         4,913,910   

Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33

     5,735         6,641,876   

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

     4,975         5,692,793   

Modesto Irrigation District, COP, Capital Improvements, Series A:

     

5.75%, 10/01/29

     3,000         3,449,880   

5.75%, 10/01/34

     180         203,643   

Norwalk-La Mirada Unified School District California, GO, CAB, Refunding, Election of 2002, Series E (AGC), 5.05%, 8/01/38 (b)

     12,870         3,558,941   

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

     6,000         7,017,960   

Municipal Bonds

 

  

Par
(000)

 

    

Value

 

 

California (continued)

                 

County/City/Special District/School District

(continued)

  

  

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

   $ 2,000       $ 2,359,160   

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

     2,000         2,263,500   

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

     2,000         2,282,580   

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

     3,000         3,455,340   

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

     1,500         1,812,615   

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

     6,500         7,337,980   

San Jose Financing Authority, Refunding RB, Civic Center Project, Series B (AMBAC), 5.00%, 6/01/37

     6,000         6,019,320   

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

     3,060         3,653,824   

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

     

5.50%, 8/01/30

     6,455         7,370,706   

5.13%, 8/01/33

     10,000         11,064,100   

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

     21,000         23,394,420   

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

     2,250         2,599,537   

Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33

     4,000         4,790,240   

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

     3,445         4,106,406   

West Contra Costa Unified School District, GO, Election of 2010, Series A (AGM), 5.25%, 8/01/32

     4,760         5,590,620   

Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39

     7,750         9,420,667   

William S. Hart Union High School District, GO, CAB, Refunding, Series B (AGM) (b):

     

4.97%, 8/01/34

     11,150         3,833,147   
 

 

                 
      BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST       OCTOBER 31, 2012    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)

  

  

William S. Hart Union High School District, GO, CAB, Refunding, Series B (AGM) (b) (concluded):

     

5.02%, 8/01/35

   $ 9,800       $ 3,171,084   
     

 

 

 
        179,386,383   

 

 

Education — 5.2%

     

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

     6,280         7,707,319   

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

     2,500         2,918,500   

University of California, RB, Series O, 5.38%, 5/15/34

     460         544,493   

University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37

     13,840         16,133,703   
     

 

 

 
        27,304,015   

 

 

Health — 18.1%

     

ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare:

     

6.38%, 8/01/34

     3,055         3,309,634   

6.25%, 8/01/39

     3,775         4,473,828   

Series A, 6.00%, 8/01/30

     2,275         2,790,811   

California Health Facilities Financing Authority, RB:

     

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

     6,655         7,675,677   

Catholic Healthcare West, Series J, 5.63%, 7/01/32

     7,000         7,659,330   

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

     2,685         2,988,083   

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

     9,320         10,178,745   

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

     6,015         7,227,383   

California Health Facilities Financing Authority, Refunding RB:

     

Catholic Healthcare West, Series A, 6.00%, 7/01/29

     1,000         1,192,330   

Catholic Healthcare West, Series A, 6.00%, 7/01/34

     4,400         5,215,364   

Catholic Healthcare West, Series A, 6.00%, 7/01/39

     3,050         3,607,082   

Providence Health, 6.50%, 10/01/18 (c)

     25         32,851   

Providence Health, 6.50%, 10/01/38

     4,090         4,867,959   

Municipal Bonds

 

  

Par
(000)

 

    

Value

 

 

California (continued)

                 

Health (concluded)

     

California Statewide Communities Development Authority, RB, Series A:

     

Health Facility Memorial Health Services, 5.50%, 4/01/13 (c)

   $ 7,000       $ 7,154,420   

Kaiser Permanente, 5.50%, 11/01/32

     11,090         11,090,000   

Kaiser Permanente, 5.00%, 4/01/42

     6,000         6,645,480   

California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West:

     

Series B, 5.50%, 7/01/30

     2,960         3,319,610   

Series E, 5.50%, 7/01/31

     4,965         5,522,123   
     

 

 

 
        94,950,710   

 

 

State — 8.1%

     

California State Public Works Board, RB:

     

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

     9,000         10,831,770   

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

     5,025         6,081,556   

State of California, GO, Various Purpose:

     

6.00%, 3/01/33

     5,080         6,298,997   

6.50%, 4/01/33

     5,985         7,525,300   

6.00%, 4/01/38

     9,860         11,848,663   
     

 

 

 
        42,586,286   

 

 

Transportation — 10.0%

     

City of Los Angeles Department of Airports, Refunding RB:

     

Los Angeles International Airport, Sub-Series C, 5.25%, 5/15/38

     1,455         1,605,287   

Series A, 5.00%, 5/15/34

     6,000         6,730,320   

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

     

5.75%, 3/01/34

     2,275         2,631,424   

6.25%, 3/01/34

     2,650         3,185,406   

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

     8,000         9,017,920   

County of Sacramento California, ARB:

     

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

     3,000         3,465,660   

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

     1,850         2,109,093   

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

     5,530         6,454,008   

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

     6,750         7,981,537   
 

 

                 
      BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST       OCTOBER 31, 2012    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)

                 

Transportation (concluded)

     

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

     

6.00%, 3/01/36

   $ 2,880       $ 3,531,802   

5.50%, 3/01/41

     5,000         5,911,350   
     

 

 

 
        52,623,807   

 

 

Utilities — 18.3%

     

Anaheim Public Financing Authority, RB, Anaheim Electric System Distribution Facilities:

     

5.25%, 10/01/39

     1,500         1,701,240   

Series A, 5.38%, 10/01/36

     7,690         9,064,434   

California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/39

     5,500         6,019,200   

Calleguas-Las Virgines Public Financing Authority California, RB, Calleguas Municipal Water District Project, Series A (NPFGC), 5.13%, 7/01/32

     4,000         4,355,320   

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

     

Series D, 5.88%, 1/01/34

     2,500         2,949,325   

Series E, 5.88%, 1/01/34

     6,500         7,668,245   

City of Los Angeles California Wastewater System, Refunding RB:

     

Series A, 5.00%, 6/01/39

     2,000         2,237,300   

Sub-Series A, 5.00%, 6/01/32

     4,000         4,606,240   

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

     5,625         6,892,312   

City of San Francisco Public Utilities Commission, Refunding RB, Series A (NPFGC), 5.00%, 11/01/12 (c)

     4,000         4,000,000   

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

     2,425         2,957,021   

Los Angeles Department of Water & Power, RB:

     

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

     9,000         10,496,430   

Series A, 5.38%, 7/01/34

     3,050         3,580,487   

Series B, 5.00%, 7/01/43

     5,000         5,788,050   

Los Angeles Department of Water & Power, Refunding RB, Power System:

     

Series A, 5.25%, 7/01/39

     4,000         4,717,240   

Sub-Series A-2, 5.00%, 7/01/30

     2,200         2,260,852   

San Diego County Water Authority, COP, Refunding, Series A (NPFGC), 5.00%, 5/01/32

     1,850         1,869,795   

San Diego Public Facilities Financing Authority, Refunding RB:

     

Senior Series A, 5.25%, 5/15/34

     9,520         10,947,619   

Municipal Bonds

 

  

Par
(000)

 

    

Value

 

 

California (concluded)

                 

Utilities (concluded)

     

San Diego Public Facilities Financing Authority, Refunding RB (concluded):

     

Series A, 5.25%, 8/01/38

   $ 3,390       $ 3,820,462   
     

 

 

 
        95,931,572   

 

 

Total Municipal Bonds in California

        493,584,989   

 

 
     

Multi-State — 1.6%

                 

Housing — 1.6%

     

Centerline Equity Issuer Trust (d)(e):

     

7.20%, 11/15/14

     3,500         3,855,705   

5.75%, 5/15/15

     500         546,585   

6.00%, 5/15/15

     1,500         1,647,915   

6.00%, 5/15/19

     1,000         1,187,430   

6.30%, 5/15/19

     1,000         1,203,210   

 

 

Total Municipal Bonds in Multi-State

        8,440,845   

 

 
     

 

 

Total Municipal Bonds – 95.6%

        502,025,834   

 

 
     
     
     

 

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (f)

     

California — 67.0%

                 

County/City/Special District/School District — 25.6%

  

El Dorado Union High School District, GO, Election of 2008, 5.00%, 8/01/35

     5,020         5,639,317   

Los Angeles Community College District California, GO:

     

Election of 2001, Series A (AGM), 5.00%, 8/01/32

     8,000         9,099,040   

Election of 2003, Series F-1, 5.00%, 8/01/33

     5,000         5,728,350   

Election of 2008, Series C, 5.25%, 8/01/39 (g)

     12,900         15,581,394   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33

     20,131         25,423,356   

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

     5,000         5,662,950   

Mount San Antonio Community College District California, GO, Election of 2001, Series C (AGM), 5.00%, 9/01/31

     10,770         11,637,416   

Ohlone Community College District, GO, Series B (AGM), 5.00%, 8/01/30

     12,499         14,079,288   

San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31

     2,000         2,218,160   
 

 

                 
      BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST       OCTOBER 31, 2012    3


 

 

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 (f)

 

  

Par

(000)

 

    

Value

 

 

California (continued)

                 

County/City/Special District/School District

(concluded)

  

  

San Diego Community College District California, GO:

     

Election of 2002, 5.25%, 8/01/33

   $   10,484       $ 12,669,639   

Election of 2006 (AGM), 5.00%, 8/01/32

     9,000         10,262,700   

San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32

     14,625         16,529,457   
     

 

 

 
        134,531,067   

 

 

Education — 11.1%

     

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

     10,395         12,173,065   

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

     13,095         14,511,957   

Mount Diablo California Unified School District, GO, Election of 2002, 5.00%, 6/01/31

     4,000         4,265,000   

San Mateo County Community College District, GO, Election of 2005, Series B, 5.00%, 9/01/31

     8,630         9,768,125   

University of California, RB:

     

Limited Project, Series D (AGM), 5.00%, 5/15/41

     2,600         2,888,366   

Series O, 5.75%, 5/15/34

     12,300         14,771,972   
     

 

 

 
        58,378,485   

 

 

Transportation — 1.1%

     

City of Los Angeles California Department of Airports, Refunding RB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40

     4,999         5,651,285   

 

 

Utilities — 29.2%

     

California State Department of Water Resources, Refunding RB, Central Valley Project, Series AE, 5.00%, 12/01/29

     7,000         8,177,260   

City of Napa California Water System, RB (AMBAC), 5.00%, 5/01/35

     3,000         3,252,120   

East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35

     3,000         3,274,650   

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

     18,002         19,895,377   

Los Angeles Department of Water & Power, RB:

     

Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37

     15,998         18,083,864   

Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (f)

 

  

Par

(000)

 

    

Value

 

 

California (concluded)

                 

Utilities (concluded)

     

Los Angeles Department of Water & Power, RB (concluded):

     

Water System, Sub-Series A-2 (AGM), 5.00%, 7/01/35

   $ 2,000       $ 2,257,580   

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

     11,180         12,822,901   

Orange County Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37

     14,700         16,417,842   

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

     10,480         12,014,586   

San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), 5.00%, 5/01/33

     14,290         15,866,901   

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

     12,457         14,222,106   

San Francisco City & County Public Utilities Commission, RB, Water System Improvement Project, Sub-Series A, 5.00%, 11/01/37

     12,698         14,634,267   

San Francisco City & County Public Utilities Commission, Refunding RB, Senior Series A, 5.00%, 11/01/35

     10,625         12,560,403   
     

 

 

 
        153,479,857   

 

 

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts – 67.0%

  

  

     352,040,694   

 

 

Total Long-Term Investments

(Cost – $759,715,665) – 162.6%

  

  

     854,066,528   

 

 
               
               
               
               
               

Short-Term Securities

 

  

Shares

 

        

 

 

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

     1,490,934         1,490,934   

 

 

Total Short-Term Securities

(Cost – $1,490,934) – 0.3%

  

  

     1,490,934   

 

 

Total Investments

(Cost – $761,206,599*) – 162.9%

  

  

     855,557,462   

Other Assets Less Liabilities – 0.6%

  

     3,119,727   

Liability for TOB Trust Certificates, Including Interest Expense and Fees
Payable – (30.9)%

    

     (162,330,563

VMTP Shares, at Liquidation Value – (32.6)%

  

     (171,300,000
     

 

 

 

Net Assets Applicable to
Common Shares – 100.0%

   

   $ 525,046,626   
     

 

 

 
 

 

                 
      BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST       OCTOBER 31, 2012    4


 

 

Schedule of Investments (continued)

 

 

BlackRock California Municipal Income Trust (BFZ)

 

*

  As of October 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:     
  Tax cost      $ 599,813,734   
               

 

 

 
  Gross unrealized appreciation      $ 94,350,863   
  Gross unrealized depreciation        (840,647)   
               

 

 

 
  Net unrealized appreciation      $ 93,510,216   
               

 

 

 

(a)

 

When-issued security. Unsettled when-issued transactions were as follows:

 

   

 

 

 
    Counterparty      Value     Unrealized
Appreciation
 
 

 

 
  Citigroup Inc.       $ 5,137,733      $ 12,064   
 

 

 

(b)

  Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.    

(c)

  US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.     

(d)

  Security 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 date.       

(e)

  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.      

(f)

  Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.     

(g)

  All or a portion of security is subject to a recourse agreement which may require the Trust to pay the Liquidity Provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $13,380,000.         

(h)

 

Investments in issuers considered to be an affiliate of the Trust during the period ended October 31, 2012, 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,
2012
     Net
Activity
     Shares
Held at
October
31, 2012
    Income  
 

 

 
 

BIF California Municipal Money Fund

     7,953,278         (6,462,344)         1,490,934      $   
 

 

 

(i)

  Represents the current yield as of report date.   

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

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

 

   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 Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
 

 

                 
      BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST       OCTOBER 31, 2012    5


 

 

Schedule of Investments (continued)

 

 

BlackRock California Municipal Income Trust (BFZ)

 

 

Fair Value Measurements - 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 reporting purposes as follows:

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and 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)

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 level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

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. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of October 31, 2012:

 

 
    Level 1     Level 2     Level 3     Total  

 

 

Assets:

       

Investments:

       

Long-Term Investments1

         $ 854,066,528             $ 854,066,528   

Short-Term Securities

  $ 1,490,934                      1,490,934   
 

 

 

Total

  $ 1,490,934      $ 854,066,528             $ 855,557,462   
 

 

 
1 

See above Schedule of Investments for values in each sector.

Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of October 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

 

 
     Level 1      Level 2     Level 3      Total  

 

 

Liabilities:

          

Bank overdraft

           $ (398,032           $ (398,032

TOB trust certificates

             (162,233,512             (162,233,512

VMTP Shares

             (171,300,000             (171,300,000
  

 

 

 

Total

           $ (333,931,544           $ (333,931,544
  

 

 

 

There were no transfers between levels during the period ended October 31, 2012.

 

 

                 
      BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST       OCTOBER 31, 2012    6


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 21, 2012

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 21, 2012

 

By:  

/s/ Neal J. Andrews

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

Date: December 21, 2012