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: 07/31/2018

Date of reporting period: 10/31/2017


Item 1 – Schedule of Investments


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   Par (000)     Value  

California — 91.6%

 

County/City/Special District/School District — 22.1%  

Butte-Glenn Community College District, GO, Election of 2002, Series C,
5.50%, 08/01/30

  $ 8,425     $ 9,041,710  

City & County of San Francisco Redevelopment Agency, Refunding, Mission Bay North Redevelopment Project, Series A,
5.00%, 08/01/41

    1,185       1,359,219  

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

   

6.13%, 5/01/31

    500       578,685  

6.50%, 5/01/36

    1,210       1,415,833  

6.50%, 5/01/42

    2,225       2,603,495  

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 02/01/19(a)

    2,000       2,122,580  

County of Orange California Water District, COP, Refunding, 5.25%, 08/15/19(a)

    2,000       2,149,320  

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

    8,990       10,664,567  

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

   

5.50%, 3/01/21

    5,270       6,005,745  

6.00%, 3/01/21

    2,880       3,328,934  

County of Santa Clara California Financing Authority, Refunding LRB, Series L,
5.25%, 05/15/18(a)

    20,000       20,463,000  

Evergreen Elementary School District, GO, Election of 2006, Series B (AGC),
5.13%, 08/01/33

    2,500       2,666,850  

Foothill-De Anza Community College District, GO, Refunding, 4.00%, 08/01/40

    3,285       3,494,320  

Los Angeles Unified School District, GO, Election of 2008, Series A, 4.00%, 07/01/40

    8,000       8,459,520  
Municipal Bonds   Par (000)     Value  
County/City/Special District/School District (continued)  

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

  $ 3,035     $ 3,226,205  

Oak Grove School District, GO, Election of 2008, Series A, 5.50%, 08/01/33

    1,315       1,412,455  

Pico Rivera Public Financing Authority, RB,
5.75%, 09/01/19(a)

    2,000       2,166,900  

San Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A,
5.00%, 06/01/32

    3,375       3,893,569  

San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 08/01/41

    3,060       3,530,873  

Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 08/01/19(a)

    4,000       4,340,360  

Tustin California School District, GO, Election of 2008, Series B, 5.25%, 08/01/21(a)

    3,445       3,953,310  

Washington Township Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/38

    1,625       1,968,557  

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

   

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

    4,960       5,670,272  

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

    2,500       2,972,750  
   

 

 

 
      107,489,029  
Education — 5.9%  

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

    6,280       7,416,743  

California Municipal Finance Authority, RB, Emerson College, 5.75%, 01/01/22(a)

    2,500       2,949,450  
 

 

SCHEDULES OF INVESTMENTS      1  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par

(000)

    Value  
Education (continued)  

California Municipal Finance Authority, Refunding RB, Emerson College, Series B:

   

5.00%, 1/01/34

  $ 695     $ 810,002  

5.00%, 1/01/36

    750       864,007  

5.00%, 1/01/37

    630       722,402  

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

   

5.00%, 11/01/33

    5,640       6,751,531  

5.00%, 11/01/45

    2,000       2,315,940  

University of California, RB:

   

Limited Project, Series M,
5.00%, 5/15/42

    1,000       1,176,580  

University of California, Refunding RB, Series AR, 5.00%, 05/15/41

    5,000       5,834,150  
   

 

 

 
      28,840,805  
Health — 9.1%  

ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B,
6.25%, 08/01/39

    4,975       5,402,253  

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

    6,710       7,276,324  

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

    8,500       9,490,165  

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

    6,015       6,764,770  

California Health Facilities Financing Authority, Refunding RB, Series A(a):

   

Catholic Healthcare West,
6.00%, 7/01/19

    5,550       5,999,939  

Dignity Health,
6.00%, 7/01/19

    4,520       4,886,436  
Municipal Bonds  

Par

(000)

    Value  
Health (continued)  

California Statewide Communities Development Authority, Refunding RB, Trinity Health Credit Group Composite Issue,
5.00%, 12/01/41

  $ 4,000     $ 4,442,800  
   

 

 

 
      44,262,687  
State — 8.6%  

Orange County Community Facilities District, Special Tax Bonds, Village of Esencia, Series A, 5.25%, 08/15/45

    2,500       2,806,650  

State of California, GO, Various Purposes,
6.00%, 04/01/38

    12,000       12,820,800  

State of California Public Works Board, LRB:

   

Department of Education, Riverside Campus Project, Series B,
6.50%, 4/01/19(a)

    9,000       9,678,510  

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

    4,940       5,875,685  

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

    5,025       5,553,530  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    4,335       5,085,735  
   

 

 

 
      41,820,910  
Tobacco — 6.9%  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1, 5.75%, 06/01/47

    28,300       28,299,151  

Tobacco Securitization Authority of Northern California, Refunding RB, Asset-Backed Bonds, Series A-1, 5.38%, 06/01/38

    2,000       1,999,940  

Tobacco Securitization Authority of Southern California, Refunding RB, Senior Series A-1:
5.13%, 6/01/46

    885       886,504  

Tobacco Settlement, Asset-Backed,
5.00%, 6/01/37

    2,500       2,507,900  
   

 

 

 
      33,693,495  
Transportation — 19.0%  

City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 05/01/39

    6,750       7,245,045  
 

 

2    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par

(000)

    Value  
Transportation (continued)  

City & County of San Francisco California Airports Commission, Refunding RB, San Francisco International Airport, Series B, AMT,
5.00%, 05/01/46

  $ 3,375     $ 3,853,507  

City of Long Beach California Harbor Revenue, ARB, Green Bonds, Series B, AMT,
5.00%, 05/15/43

    1,695       1,950,030  

City of Los Angeles California Department of Airports, ARB, AMT:

   

Sub-Series A, 5.00%, 5/15/42

    3,325       3,846,061  

Los Angeles International Airport, Sub-Series A, 5.00%, 5/15/42(c)

    8,980       10,258,213  

Los Angeles International Airport, Sub-Series B, 5.00%, 5/15/34

    3,425       3,968,205  

Sub-Series A, 5.00%, 5/15/47

    3,000       3,454,050  

Subordinate, Los Angeles International Airport, Series B, 5.00%, 5/15/41

    4,000       4,575,800  

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

   

5.00%, 5/15/34

    6,650       7,042,882  

5.00%, 5/15/40

    4,760       5,173,025  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:

   

Series A, 5.00%, 3/01/36

    2,800       3,247,748  

Series A, 5.00%, 3/01/37

    1,500       1,735,905  

Series A, 5.00%, 3/01/41

    3,850       4,418,414  

Series A-1, 5.75%, 3/01/34

    3,875       4,375,611  

Series A-1, 6.25%, 3/01/34

    2,650       3,063,003  

County of Sacramento California, Refunding ARB, Senior Series A, 5.00%, 07/01/41

    12,500       14,435,750  

County of Sacramento California, ARB:

   

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

    3,000       3,095,910  

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

    1,850       1,909,348  
Municipal Bonds  

Par

(000)

    Value  
Transportation (continued)  

Port of Los Angeles California Harbor Department, Refunding RB, Series A, AMT, 5.00%, 08/01/44

  $ 4,135     $ 4,620,490  
   

 

 

 
      92,268,997  
Utilities — 20.0%  

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

    7,690       8,653,326  

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

    6,555       7,010,835  

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

   

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

    9,000       9,253,530  

Water System, Series A, 5.38%, 7/01/38

    4,000       4,198,120  

City of Los Angeles California Department of Water & Power, Refunding RB, Water System, Series A, 5.25%, 07/01/39

    4,000       4,512,040  

City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 06/01/19(a)

    2,000       2,123,160  

City of Petaluma California Wastewater, Refunding RB, 6.00%, 05/01/21(a)

    5,625       6,540,694  

City of San Francisco California Public Utilities Commission Water Revenue, RB, Sub-Series A, 5.00%, 11/01/37

    5,000       5,680,650  

Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.25%, 09/01/31

    4,320       4,946,832  

Dublin-San Ramon Services District Water Revenue, Refunding RB, 6.00%, 08/01/41

    2,425       2,785,355  

East Bay California Municipal Utility District Water System Revenue, Refunding RB, Series A,
5.00%, 06/01/20(a)

    3,000       3,297,660  

East Bay Municipal Utility District Water System Revenue, RB, Green Bond, Series A,
5.00%, 06/01/45

    6,000       7,085,760  
 

 

SCHEDULES OF INVESTMENTS      3  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par

(000)

    Value  
Utilities (continued)  

El Dorado Irrigation District/El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 03/01/39

  $ 10,000     $ 11,754,100  

Los Angeles Department of Water, Refunding RB, Series A:

   

5.00%, 7/01/37

    5,540       6,558,252  

5.00%, 7/01/41

    2,000       2,348,100  

5.25%, 7/01/44

    3,000       3,582,300  

Los Angeles Department of Water & Power System Revenue, RB, Series B, 5.00%, 07/01/38

    6,000       7,004,820  
   

 

 

 
      97,335,534  
   

 

 

 
Total Municipal Bonds in California     445,711,457  
   

 

 

 
Multi-State — 0.4%  

Centerline Equity Issuer Trust(b)(d):

   

Series A-4-2, 6.00%, 5/05/19

    1,000       1,064,850  

Series B-3-2, 6.30%, 5/05/19

    1,000       1,069,270  
   

 

 

 
Total Municipal Bonds in Multi-State     2,134,120  
   

 

 

 
Puerto Rico — 1.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 5/15/39

    2,910       2,855,932  

5.63%, 5/15/43

    2,765       2,709,037  
   

 

 

 
Total Municipal Bonds in Puerto Rico     5,564,969  
   

 

 

 
Total Municipal Bonds — 93.2%     453,410,546  
   

 

 

 
Municipal Bonds Transferred to Tender Option Bond Trusts  
California — 75.1%  
County/City/Special District/School District(c) — 26.4%  

Grossmont Union High School District, GO, Election 2004, 5.00%, 08/01/18(a)

    13,095       13,480,332  

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

   

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

    12,902       14,313,537  

Refunding Series A, 6.00%, 8/01/19

    20,131       21,844,166  
Municipal Bonds Transferred to Tender
Option Bond Trusts
 

Par

(000)

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

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

  $ 5,000     $ 5,307,175  

Palomar Community College District, GO, Election of 2006, Series C, 5.00%, 08/01/44

    15,140       17,474,285  

San Diego Community College District California, GO, Election of 2002, 5.25%, 08/01/19(a)

    10,484       11,233,396  

San Diego County Regional Transportation Commission, Refunding RB, Series A,
5.00%, 04/01/48

    5,740       6,671,315  

San Joaquin Delta Community College District, GO, Election of 2004, Series C, 5.00%, 08/01/39

    14,505       16,825,724  

San Jose Unified School District, GO:

   

Election of 2004, Series D, 5.00%, 8/01/18(a)

    14,625       15,055,484  

Series C, 4.00%, 8/01/39

    6,100       6,359,860  
   

 

 

 
      128,565,274  
Education(c) — 14.5%  

University of California, RB:

   

Series AM, 5.25%, 5/15/44

    5,000       5,891,775  

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

    12,303       13,164,924  

University of California, Refunding, GRB,
Series AI, 5.00%, 05/15/38

    14,225       16,379,278  

University of California, Refunding RB:

   

Limited Project, Series I, 5.00%, 5/15/40

    14,065       16,354,820  

Series AR, 5.00%, 5/15/38

    4,250       4,987,205  

Systemwide, Series A, 5.00%, 11/01/43

    11,791       13,650,692  
   

 

 

 
      70,428,694  
Health(c) — 11.8%  

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

   

5.00%, 11/15/41

    11,620       13,339,992  

5.00%, 8/15/52

    9,695       10,890,428  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 04/01/42

    18,960       21,325,734  
 

 

4    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender
Option Bond Trusts
 

Par

(000)

    Value  
Health(c) (continued)  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB,
Series L, 5.00%, 05/15/47

  $ 10,290     $ 11,789,150  
   

 

 

 
      57,345,304  
State(c) — 2.4%  

State of California, GO, Refunding,
5.00%, 09/01/35

    10,115       11,940,309  

 

Transportation — 7.6%

 

City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, AMT:

   

Series D, 5.00%, 5/15/41(c)

    18,632       21,093,072  

Sub-Series A, 5.00%, 5/15/42

    13,730       15,684,299  
   

 

 

 
      36,777,371  
Utilities(c) — 12.4%  

City of Los Angeles California Department of Water & Power, Refunding RB, Water System, Series A, 5.00%, 07/01/46

  $ 6,412       7,416,158  

County of Orange California Water District, COP, Refunding, 5.00%, 08/15/19(a)

    10,480       11,208,150  

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

   

5.00%, 5/01/18

    8,370       8,535,517  

5.00%, 5/01/18

    1,670       1,703,024  
Municipal Bonds Transferred to Tender Option Bond Trusts  

Par

(000)

    Value  
Utilities(c) (continued)  

Eastern Municipal Water District, COP, Series H, 5.00%, 07/01/18(a)

  $ 18,002     $ 18,457,729  

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 05/15/19(a)

    12,460       13,252,145  
   

 

 

 
      60,572,723  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 75.1%

      365,629,675  
   

 

 

 

Total Long-Term Investments
(Cost — $778,248,510) — 168.3%

      819,040,221  
   

 

 

 

Short-Term Securities

    Shares    

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74%(f)(g)

    1,490,776       1,491,223  
   

 

 

 

Total Short-Term Securities
(Cost — $1,491,223) — 0.3%

 

    1,491,223  
   

 

 

 

Total Investments
(Cost — $779,739,733) — 168.6%

 

    820,531,444  

Other Assets Less Liabilities — 1.8%

 

    8,625,262  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (35.2)%

 

    (171,313,965

VMTP Shares at Liquidation Value — (35.2)%

 

    (171,300,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 486,542,741  
   

 

 

 

 

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)  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)  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.
(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)  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 expires on August 1, 2018, is $6,798,086.
(f)  Annualized 7-day yield as of period end.
(g)  During the period ended October 31, 2017, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
 

 

SCHEDULES OF INVESTMENTS      5  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Affiliated   

Shares

Held at
July 31, 2017

     Net
Activity
    

Shares

Held at
October 31, 2017

     Value at
October 31, 2017
     Income      Net Realized
Gain (Loss)(a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     252,116        1,238,660        1,490,776      $ 1,491,223      $ 2,731      $ 17      $ (25
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  

For Trust compliance purposes, the Trust’s sector classifications refer to 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 adviser. 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

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value /
Unrealized
Appreciation
 

Short Contracts

 

5-Year U.S. Treasury Note

     (50        December 2017        $ 5,859        $ 64,966  

10-Year U.S. Treasury Note

     (74        December 2017          9,245          156,767  

Long U.S. Treasury Bond

     (59        December 2017          8,996          202,725  

Ultra Long U.S. Treasury Bond

     (18        December 2017          2,966          73,198  
                 

 

 

 

Total

 

     $ 497,656  
    

 

 

 

 

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. These inputs to valuation techniques 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

 

6    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

    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 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or trusts. 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 techniques 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.

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:

 

Investments:

 

Long Term Investments(a)

   $        $ 819,040,221        $        $ 819,040,221  

Short-Term Securities:

     1,491,223                            1,491,223  
  

 

 

      

 

 

      

 

 

      

 

 

 

Total

   $ 1,491,223        $ 819,040,221        $        $ 820,531,444  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 497,656        $        $             —        $ 497,656  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each sector.  

 

  (b)  Derivative financial instruments are futures 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 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  

Liabilities:

 

TOB Trust Certificates

   $             —        $ (170,958,028      $             —        $ (170,958,028

VMTP Shares at Liquidation Value

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

Total

   $        $ (342,258,028      $        $ (342,258,028

During the period ended October 31, 2017, there were no transfers between levels.

 

SCHEDULES OF INVESTMENTS      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 21, 2017

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, 2017
    By:   /s/ Neal J. Andrews                         
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock California Municipal Income Trust
    Date: December 21, 2017