BlackRock California Municipal Income Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-10331

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 07/31/2017

Date of reporting period: 10/31/2016

Item 1 –  Schedule of Investments

Schedule of Investments October 31, 2016 (Unaudited)

   

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

California — 86.7%

                 

County/City/Special District/School District — 21.7%

  

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

    $ 8,425      $ 9,409,630   

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

     

6.13%, 5/01/31

      500        590,390   

6.50%, 5/01/36

      1,210        1,451,105   

6.50%, 5/01/42

      2,225        2,663,036   

Corona-Norco Unified School District, GO, Refunding Series A, 4.00%, 8/01/39

      2,500        2,716,500   

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

      2,000        2,219,200   

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

      2,000        2,232,020   

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

      8,990        10,723,632   

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

     

6.00%, 3/01/36

      2,880        3,454,358   

5.50%, 3/01/41

      5,270        6,205,320   

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

      20,000        21,344,200   

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

      2,500        2,764,850   

Los Angeles California Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/19 (a)

      5,065        5,609,791   

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

      3,035        3,340,169   

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

      1,315        1,469,512   

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

      2,000        2,266,700   
Municipal Bonds   

Par  

(000)

     Value  

California — (continued)

                 

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

  

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

    $ 4,865      $ 5,641,795   

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

      3,375        3,969,270   

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

      3,060        3,621,112   

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

      4,000        4,545,960   

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

      3,445        4,103,029   

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

     

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

      4,960        5,818,675   

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

      2,500        3,041,025   
    

 

 

  
               109,201,279   

Education — 3.9%

     

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

      6,280        7,634,973   

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

      2,500        2,894,050   

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

     

4.00%, 11/01/38

      3,480        3,811,017   

5.00%, 11/01/41

      4,590        5,490,650   
    

 

 

  
               19,830,690   

Health — 13.0%

     

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

      4,975        5,627,919   
 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016    1

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Health (continued)

     

California Health Facilities Financing Authority, RB:

     

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

    $ 6,710      $ 7,604,778   

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

      8,500        9,669,345   

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

      6,015        7,017,881   

California Health Facilities Financing Authority, Refunding RB, Series A:

     

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

      5,550        6,203,401   

Dignity Health, 6.00%, 7/01/34

      4,520        5,060,999   

Providence Health and Services, 5.00%, 10/01/38

      3,000        3,530,880   

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.25%, 12/01/56 (b)

      5,550        6,191,636   

California Statewide Communities Development Authority, Refunding RB:

     

Catholic Healthcare West, Series B, 5.50%, 7/01/30

      2,880        2,963,693   

Catholic Healthcare West, Series E, 5.50%, 7/01/31

      5,065        5,211,834   

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

      4,000        4,577,200   

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

      1,625        1,946,214   
    

 

 

  
               65,605,780   

State — 8.8%

     

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

      2,500        2,838,525   

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

      14,000        15,617,280   

State of California Public Works Board, LRB:

     

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

      9,000        10,155,870   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

State (continued)

     

State of California Public Works Board, LRB (continued):

     

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

    $ 4,940      $ 6,010,152   

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

      5,025        5,825,583   

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33

      3,335        4,012,139   
    

 

 

  
               44,459,549   

Tobacco — 2.0%

     

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Series A-1:

     

Senior, 5.75%, 6/01/47

      5,035        4,957,058   

5.13%, 6/01/47

      5,000        4,810,250   
    

 

 

  
               9,767,308   

Transportation — 11.0%

     

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

      6,750        7,567,627   

City of Los Angeles California Department of Airports, RB, Series A, AMT, 5.00%, 5/15/33

      2,500        2,964,500   

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

     

5.00%, 5/15/34

      6,650        7,336,480   

5.00%, 5/15/40

      4,760        5,354,762   

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

     

5.75%, 3/01/34

      3,820        4,452,019   

6.25%, 3/01/34

      2,650        3,145,895   

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

      8,000        8,263,520   

County of Sacramento California, ARB:

     

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

      3,000        3,237,390   

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

      1,850        1,988,454   

Port of Los Angeles California Harbor Department, RB, Series B, 5.25%, 8/01/19 (a)

      5,580        6,228,340   
 

 

                
2    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Transportation (continued)

     

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

    $ 4,135      $ 4,733,665   
    

 

 

  
               55,272,652   

Utilities — 26.3%

     

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

      7,690        8,948,084   

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

      6,555        7,292,503   

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

     

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

      9,000        9,610,380   

Series A, 5.38%, 7/01/34

      3,250        3,542,955   

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

     

Power System, 5.00%, 7/01/40

      2,000        2,382,000   

5.25%, 7/01/39

      4,000        4,640,480   

5.00%, 7/01/46

      6,415        7,628,782   

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

      2,000        2,190,960   

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

      5,625        6,697,294   

City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB, 5.00%, 11/01/34

      5,000        6,080,200   

City of San Francisco California Public Utilities Commission Water Revenue, RB:

     

Series A, 5.00%, 11/01/19 (a)

      10,625        11,883,425   

Sub-Series A, 5.00%, 11/01/37

      5,000        5,865,400   

County of Los Angeles Sanitation Districts Financing Authority, Refunding RB, Series A, 4.00%, 10/01/42 (c)

      8,215        8,796,211   

County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/17 (a)

      8,000        8,086,720   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Utilities (continued)

     

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

    $ 4,320      $ 5,090,861   

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

      2,425        2,856,893   

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

      5,745        6,505,006   

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

      10,000        11,809,800   

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

      11,020        12,214,017   
    

 

 

  
               132,121,971   
Total Municipal Bonds in California              436,259,229   
    

Multi-State — 0.4%

                 

Housing — 0.4%

     

Centerline Equity Issuer Trust (b)(d):

     

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

      1,000        1,097,310   

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

      1,000        1,104,610   
Total Municipal Bonds in Multi-State              2,201,920   
Total Municipal Bonds - 87.1%              438,461,149   
    
                  
Municipal Bonds Transferred to Tender
Option Bond Trusts (e)		  

California — 86.7%

                 

County/City/Special District/School District — 27.3%

  

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

      11,620        13,618,524   

Chabot-Las Positas Community College District, GO, Refunding, 4.00%, 8/01/37

      3,400        3,673,496   
 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016    3

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)		   

Par  

(000)

     Value  

California (continued)

                 

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

  

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

     

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

    $ 8,000      $ 8,259,280   

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

      12,902        14,886,555   

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

      20,131        22,866,976   

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

      5,000        5,518,000   

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

      15,140        17,875,798   

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

      10,484        11,705,483   

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

      14,505        16,933,678   

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

     

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

      14,625        15,678,576   

Series C, 4.00%, 8/01/39

      6,100        6,606,605   
    

 

 

  
               137,622,971   

Education — 19.4%

     

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/18 (a)(f)

      10,395        11,266,828   

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

      13,095        14,040,685   

University of California, RB:

     

Series AM, 5.25%, 5/15/44

      5,000        5,965,900   

Series O, 5.75%, 5/15/19 (a)

      12,303        13,776,603   

University of California, Refunding RB:

     

5.00%, 5/15/38

      4,250        5,102,762   

Series A, 5.00%, 11/01/43

      11,792        14,143,691   

Series AI, 5.00%, 5/15/38

      14,225        16,666,653   
Municipal Bonds Transferred to Tender
Option Bond Trusts (e)		   

Par  

(000)

     Value  

California (continued)

                 

Education (continued)

     

University of California, Refunding RB (continued):

     

Series I, 5.00%, 5/15/40

    $ 14,065      $ 16,587,538   
    

 

 

  
               97,550,660   

Health — 8.9%

     

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

      9,695        11,030,350   

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

      18,960        21,563,208   

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

      10,290        12,152,284   
    

 

 

  
               44,745,842   

State — 6.7%

     

State of California, GO, Refunding:

     

4.00%, 9/01/37

      6,090        6,626,712   

Various Purposes, 4.00%, 9/01/34

      13,790        15,104,463   

Various Purposes, 5.00%, 9/01/35

      10,115        12,111,977   
    

 

 

  
               33,843,152   

Transportation — 7.9%

     

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

      10,000        11,420,500   

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

      18,632        21,465,952   

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

      5,740        6,862,801   
    

 

 

  
               39,749,253   

Utilities — 16.5%

     

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37

      15,998        16,413,544   
 

 

                
4    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)		   

Par  

(000)

     Value  

California (continued)

                 

Utilities (continued)

     

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

    $ 10,480      $ 11,602,513   

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

     

5.00%, 5/01/18

      1,670        1,774,375   

5.00%, 5/01/18

      8,370        8,893,125   

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

      18,002        19,245,576   

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

      11,180        11,497,177   

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

      12,460        13,810,041   
    

 

 

  
               83,236,351   
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 86.7%              436,748,229   
Total Long-Term Investments
(Cost — $817,587,118) — 173.8%		              875,209,378   
            

Value

  

Total Investments

(Cost — $817,587,118*) — 173.8%

  

  

   $ 875,209,378   
Other Assets Less Liabilities — 0.1%        670,008   
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (39.9)%		         (201,148,702 ) 
VMTP Shares, at Liquidation Value — (34.0)%        (171,300,000 ) 
    

 

 

  

Net Assets Applicable to Common Shares — 100.0%

      $ 503,430,684   
    

 

 

  

 

*   As of October 31, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 614,989,152   
 

 

 

  

Gross unrealized appreciation

   $ 59,933,677   

Gross unrealized depreciation

     (482,107 ) 
 

 

 

  

Net unrealized appreciation

   $ 59,451,570   
 
Notes to Schedule of Investments

 

*   Cost for federal income tax purposes.

 

(a)   U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

(b)   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(c)   When-issued security.

 

(d)   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.

 

(e)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing.

 

(f)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between May 7, 2018 to August 1, 2018, is $14,013,534.

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016    5

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

 

(g)   During the period ended October 31, 2016, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate  

Shares

Held at

July 31, 2016

    

Net

Activity

    

Shares

Held at
October 31,
2016

     Value at
October 31,
2016		     Income     Realized
Gain (Loss)		  
BlackRock Liquidity Funds, MuniCash, Institutional Class     3,771,908        (3,771,908 )      —        —      $ 2,304      $ 338   

 

(h)   Current yield as of period end.

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.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts  
Contracts
Short		     Issue     Expiration     Notional
Value		     Unrealized
Appreciation		  
  (7 )      5-Year U.S. Treasury Note        December 2016        $845,578      $ 6,336   
  (75 )      10-Year U.S. Treasury Note        December 2016        $9,721,875        137,085   
  (68 )      Long U.S. Treasury Bond        December 2016        $11,064,875        354,717   
  (12 )      Ultra U.S. Treasury Bond        December 2016        $2,111,250        107,690   
  Total            $ 605,828   
       

 

 

  

 

Portfolio Abbreviations

 

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

 

                
6    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016   

Schedule of Investments (continued)

   

BlackRock California Municipal Income Trust (BFZ)

 

 

Fair Value Hierarchy as of Period End

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

 

  •  

Level 1 – unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  •  

Level 2 – other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

  •  

Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 Investments include equity or debt issued by privately-held companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation methodologies may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investments 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, refer to the Trust’s most recent financial statements as contained in its annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                 

Long Term Investments1

     —         $ 875,209,378           —         $ 875,209,378   
 

 

 

  
 
Derivative Financial Instruments2                                         

Assets:

                 

Interest rate contracts

   $ 605,828           —           —         $ 605,828   
 

 

 

  

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

       

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

       

 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016    7

Schedule of Investments (concluded)

   

BlackRock California Municipal Income Trust (BFZ)

 

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

 

     Level 1        Level 2        Level 3        Total  

Assets:

                 

Cash pledged for futures contracts

   $ 418,000           —           —         $ 418,000   

Liabilities:

                 

Bank overdraft

     —         $ (111,488 )         —         $ (111,488 ) 

TOB Trust Certificates

     —           (200,768,656 )         —           (200,768,656 ) 

VMTP Shares at Liquidation Value

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

 

 

  

Total

   $ 418,000         $ (372,180,144 )         —         $ (371,762,144 ) 
 

 

 

  

During the period ended October 31, 2016, there were no transfers between levels.

 

                
8    BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST    OCTOBER 31, 2016   

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 20, 2016   

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 20, 2016   
By:  

/s/ Neal J. Andrews

   
  Neal J. Andrews   
 

Chief Financial Officer (principal financial officer) of

BlackRock California Municipal Income Trust

Date:   December 20, 2016