Eaton Vance California Municipal Income Trust

Regulatory Filings • Oct 29, 2008

N-Q 1 a08-23647_1nq.htm N-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number	811-09157
Eaton
Vance California Municipal Income Trust
(Exact Name of
Registrant as Specified in Charter)
The
Eaton Vance Building, 255 State Street, Boston, Massachusetts	02109
(Address of Principal
Executive Offices)	(Zip code)
Maureen
A. Gemma Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109
(Name and Address of
Agent for Service)
Registrant’s Telephone Number, Including Area Code:	(617) 482-8260
Date of Fiscal Year End:	November 30
Date of Reporting Period:	August 31, 2008

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*Item 1. Schedule of Investments*

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Eaton Vance California Municipal Income Trust as of August 31, 2008

*PORTFOLIO OF INVESTMENTS (Unaudited)*

Tax-Exempt Investments — 168.2%

Principal Amount (000’s omitted)	Security	Value
Education — 11.5%
$ 2,770	California
Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29	$ 2,521,005
500	California
Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29	503,170
1,850	California
Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23	1,893,438
4,000	California
Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31	4,003,520
2,500	San
Diego County, Certificates of Participation, (University of San Diego),
5.375%, 10/1/41	2,509,100
		$ 11,430,233
Electric Utilities —
2.3%
$ 2,500	Chula
Vista, (San Diego Gas), (AMT), 5.00%, 12/1/27	$ 2,335,575
		$ 2,335,575
General Obligations —
13.0%
$ 3,000	California,
5.50%, 3/1/26	$ 3,175,200
3,500	California,
5.50%, 11/1/33	3,570,630
1,610	California,
(AMT), 5.05%, 12/1/36	1,436,506
4,780	San
Francisco Bay Area Rapid Transit District, (Election of 2004), 4.75%, 8/1/37 (1)	4,727,994
		$ 12,910,330
Health
Care-Miscellaneous — 0.3%
$ 300	Puerto
Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%,
10/1/37	$ 282,681
		$ 282,681
Hospital — 29.3%
$ 1,000	California
Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%,
7/1/32	$ 1,001,040
2,435	California
Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%,
11/15/34	2,328,639
3,100	California
Health Facilities Financing Authority, (Kaiser Permanente), 5.00%, 4/1/37	2,937,529
870	California
Health Facilities Financing Authority, (Sutter Health), Variable Rate,
14.48%, 11/15/46 (2) (3)	781,886
750	California
Infrastructure and Economic Development Bank, (Kaiser Hospital), 5.50%,
8/1/31	756,360
500	California
Statewide Communities Development Authority, (Catholic Healthcare West),
5.50%, 7/1/30	499,330
670	California
Statewide Communities Development Authority, (Catholic Healthcare West),
5.50%, 7/1/31	663,501
335	California
Statewide Communities Development Authority, (Catholic Healthcare West),
5.625%, 7/1/35	333,821
3,900	California
Statewide Communities Development Authority, (Huntington Memorial Hospital),
5.00%, 7/1/35	3,643,341
1,750	California
Statewide Communities Development Authority, (John Muir Health), 5.00%,
8/15/36	1,666,507
1,650	California
Statewide Communities Development Authority, (Kaiser Permanente), 5.50%,
11/1/32	1,662,193
1,750	California
Statewide Communities Development Authority, (Sonoma County Indian Health),
6.40%, 9/1/29	1,765,977
1,500	California
Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28	1,520,160
1,500	Duarte,
(City of Hope), 5.25%, 4/1/24	1,500,930
410	Tahoe
Forest Hospital District, 5.85%, 7/1/22	412,932
2,000	Torrance
Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31	2,004,240
1,250	Turlock,
(Emanuel Medical Center, Inc.), 5.375%, 10/15/34	1,126,238
2,000	Washington
Health Care Facilities Authority, (Providence Health Care), 5.25%, 7/1/29	1,965,040
2,780	Washington
Township Health Care District, 5.00%, 7/1/32	2,591,155
		$ 29,160,819

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| Housing — 2.6% — $ 1,750 | California
Housing Finance Agency, (AMT), 4.75%, 8/1/42 | $ 1,419,425 |
| --- | --- | --- |
| 735 | Commerce,
(Hermitage III Senior Apartments), 6.50%, 12/1/29 | 739,761 |
| 426 | Commerce,
(Hermitage III Senior Apartments), 6.85%, 12/1/29 | 425,062 |
| | | $ 2,584,248 |
| Industrial Development
Revenue — 1.6% | | |
| $ 2,000 | California
Statewide Communities Development Authority, (Anheuser-Busch
Cos., Inc.), 4.80%, 9/1/46 | $ 1,624,900 |
| | | $ 1,624,900 |
| Insured-Education —
6.3% | | |
| $ 3,270 | California
Educational Facilities Authority, (Pooled College and University), (MBIA),
5.10%, 4/1/23 | $ 3,311,856 |
| 3,000 | California
State University, (AMBAC), 5.00%, 11/1/33 | 2,982,780 |
| | | $ 6,294,636 |
| Insured-Electric
Utilities — 9.1% | | |
| $ 2,500 | California
Pollution Control Financing Authority, (Pacific Gas and Electric), (MBIA),
(AMT), 5.35%, 12/1/16 | $ 2,528,925 |
| 3,250 | California
Pollution Control Financing Authority, (Southern California Edison Co.),
(MBIA), (AMT), 5.55%, 9/1/31 | 3,107,780 |
| 3,625 | Los
Angeles Department of Water and Power, (FSA), 4.625%, 7/1/37 | 3,434,216 |
| | | $ 9,070,921 |
| Insured-Escrowed/Prerefunded
— 4.4% | | |
| $ 5,130 | Foothill/Eastern
Transportation Corridor Agency, (FSA), Escrowed to Maturity, 0.00%, 1/1/26 | $ 2,212,312 |
| 1,995 | Puerto
Rico Electric Power Authority, (FSA), Prerefunded to 7/1/10, 5.25%, 7/1/29 (1) | 2,131,611 |
| | | $ 4,343,923 |
| Insured-General
Obligations — 14.7% | | |
| $ 7,000 | Coast
Community College District, (Election of 2002), (FSA), 0.00%, 8/1/34 | $ 1,702,120 |
| 4,825 | Coast
Community College District, (Election of 2002), (FSA), 0.00%, 8/1/35 | 1,105,166 |
| 2,500 | Puerto
Rico, (FSA), Variable Rate, 9.32%, 7/1/27 (2) (3) | 2,968,550 |
| 4,800 | San
Diego Unified School District, (MBIA), 5.50%, 7/1/24 (1) | 5,415,072 |
| 7,995 | Sweetwater
Union High School District, (Election 2000), (FSA), 0.00%, 8/1/25 | 3,432,174 |
| | | $ 14,623,082 |
| Insured-Hospital — 12.9% | | |
| $ 3,200 | California
Statewide Communities Development Authority, (Children’s Hospital Los
Angeles), (MBIA), 5.25%, 8/15/29 (4) | $ 3,224,320 |
| 750 | California
Statewide Communities Development Authority, (Kaiser Permanente), (BHAC),
5.00%, 3/1/41 (1) | 745,223 |
| 5,000 | California
Statewide Communities Development Authority, (Sutter Health), (AMBAC),
(BHAC), 5.00%, 11/15/38 (1) | 4,968,750 |
| 3,735 | California
Statewide Communities Development Authority, (Sutter Health), (FSA), 5.75%,
8/15/27 (1) | 3,853,051 |
| | | $ 12,791,344 |
| Insured-Lease
Revenue/Certificates of Participation — 12.5% | | |
| $ 6,500 | Anaheim
Public Financing Authority, Lease Revenue, (Public Improvements), (FSA),
0.00%, 9/1/17 | $ 4,401,215 |
| 10,750 | Anaheim
Public Financing Authority, Lease Revenue, (Public Improvements), (FSA),
0.00%, 9/1/25 | 4,438,460 |
| 100 | San
Diego County Water Authority, (FSA), 5.00%, 5/1/38 | 101,063 |
| 3,500 | San
Diego County Water Authority, (FSA), 5.00%, 5/1/38 (1) | 3,537,205 |
| | | $ 12,477,943 |
| Insured-Other Revenue —
1.7% | | |
| $ 1,855 | Golden
State Tobacco Securitization Corp., (FGIC), 5.00%, 6/1/38 | $ 1,694,505 |
| | | $ 1,694,505 |
| Insured-Special Tax
Revenue — 4.0% | | |
| $ 24,800 | Puerto
Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54 | $ 1,775,432 |
| 4,225 | Puerto
Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44 | 553,306 |
| 8,380 | Puerto
Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45 | 1,034,092 |
| 5,270 | Puerto
Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46 | 611,320 |
| | | $ 3,974,150 |

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| Insured-Transportation — 7.0% — $ 5,000 | Alameda
Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29 | $ 1,488,150 |
| --- | --- | --- |
| 8,000 | Alameda
Corridor Transportation Authority, (MBIA), 0.00%, 10/1/31 | 2,275,520 |
| 740 | Puerto
Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41 (1) | 768,431 |
| 10,000 | San
Joaquin Hills Transportation Corridor Agency, (MBIA), 0.00%, 1/15/32 | 2,432,200 |
| | | $ 6,964,301 |
| Insured-Water and Sewer
— 2.4% | | |
| $ 2,710 | San
Francisco City and County Public Utilities Commission, (FSA), 4.25%, 11/1/33 | $ 2,385,315 |
| | | $ 2,385,315 |
| Insured-Water Revenue —
3.2% | | |
| $ 4,400 | Los
Angeles Department of Water and Power, (MBIA), 3.00%, 7/1/30 | $ 3,219,436 |
| | | $ 3,219,436 |
| Lease
Revenue/Certificates of Participation — 4.4% | | |
| $ 4,000 | Sacramento
City Financing Authority, 5.40%, 11/1/20 | $ 4,381,120 |
| | | $ 4,381,120 |
| Other Revenue — 2.2% | | |
| $ 385 | California
Infrastructure and Economic Development Bank, (Performing Arts Center of Los
Angeles), 5.00%, 12/1/32 | $ 382,829 |
| 580 | California
Infrastructure and Economic Development Bank, (Performing Arts Center of Los
Angeles), 5.00%, 12/1/37 | 569,455 |
| 1,420 | Golden
State Tobacco Securitization Corp., 5.75%, 6/1/47 | 1,188,739 |
| | | $ 2,141,023 |
| Senior Living/Life Care
— 0.7% | | |
| $ 175 | California
Statewide Communities Development Authority, (Senior Living - Presbyterian
Homes), 4.75%, 11/15/26 | $ 152,759 |
| 700 | California
Statewide Communities Development Authority, (Senior Living - Presbyterian
Homes), 4.875%, 11/15/36 | 580,286 |
| | | $ 733,045 |
| Special Tax Revenue —
17.6% | | |
| $ 1,500 | Bonita
Canyon Public Financing Authority, 5.375%, 9/1/28 | $ 1,412,415 |
| 285 | Brentwood
Infrastructure Financing Authority, 5.00%, 9/2/26 | 245,573 |
| 460 | Brentwood
Infrastructure Financing Authority, 5.00%, 9/2/34 | 382,205 |
| 1,665 | Corona
Public Financing Authority, 5.80%, 9/1/20 | 1,640,275 |
| 200 | Eastern
California Municipal Water District, Special Tax Revenue, District
No. 2004-27 Cottonwood, 5.00%, 9/1/27 | 179,278 |
| 500 | Eastern
California Municipal Water District, Special Tax Revenue, District
No. 2004-27 Cottonwood, 5.00%, 9/1/36 | 422,765 |
| 1,590 | Fontana
Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27 | 1,616,155 |
| 1,305 | Lincoln
Public Financing Authority, Improvement Bond Act of 1915, (Twelve Bridges),
6.20%, 9/2/25 | 1,317,606 |
| 420 | Moreno
Valley Unified School District, (Community School District No. 2003-2),
5.75%, 9/1/24 | 403,246 |
| 750 | Moreno
Valley Unified School District, (Community School District No. 2003-2),
5.90%, 9/1/29 | 714,900 |
| 2,430 | Oakland
Joint Powers Financing Authority, 5.40%, 9/2/18 | 2,493,034 |
| 995 | Oakland
Joint Powers Financing Authority, 5.50%, 9/2/24 | 1,018,691 |
| 1,325 | San
Pablo Redevelopment Agency, 5.65%, 12/1/23 | 1,349,990 |
| 1,095 | Santa
Margarita Water District, 6.20%, 9/1/20 | 1,115,871 |
| 250 | Santaluz
Community Facilities District No. 2, 6.10%, 9/1/21 | 250,608 |
| 500 | Santaluz
Community Facilities District No. 2, 6.20%, 9/1/30 | 500,870 |
| 250 | Temecula
Unified School District, 5.00%, 9/1/27 | 221,490 |
| 400 | Temecula
Unified School District, 5.00%, 9/1/37 | 342,172 |
| 500 | Turlock
Public Financing Authority, 5.45%, 9/1/24 | 476,650 |
| 500 | Tustin
Community Facilities District, 6.00%, 9/1/37 | 496,935 |
| 1,000 | Whittier
Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23 | 968,440 |
| | | $ 17,569,169 |

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| Transportation — 2.6% — $ 1,500 | Los
Angeles Department of Airports, (Los Angeles International Airport), 5.375%,
5/15/30 | $ 1,493,205 | |
| --- | --- | --- | --- |
| 1,170 | Port
of Redwood City, (AMT), 5.125%, 6/1/30 | 1,070,960 | |
| | | $ 2,564,165 | |
| Water and Sewer — 1.9% | | | |
| $ 1,840 | California
Department of Water Resources, 5.00%, 12/1/29 | $ 1,908,926 | |
| | | $ 1,908,926 | |
| Total Tax-Exempt Investments — 168.2% (identified cost $169,998,520) | | $ 167,465,790 | |
| Other
Assets, Less Liabilities — (18.0)% | | $ (17,926,635 | ) |
| Auction
Preferred Shares Plus Cumulative Unpaid Dividends — (50.2)% | | $ (49,978,638 | ) |
| Net
Assets Applicable to Common Shares — 100.0% | | $ 99,560,517 | |

AGC	Assured Guaranty Corp.
AMBAC	AMBAC Financial Group, Inc.
AMT	Interest earned from these securities may be
considered a tax preference item for purposes of the Federal Alternative
Minimum Tax.
BHAC	Berkshire Hathaway Assurance Corp.
CIFG	CIFG Assurance North America, Inc.
FGIC	Financial Guaranty Insurance Company
FSA	Financial Security Assurance, Inc.
MBIA	Municipal Bond Insurance Association

The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at August 31, 2008, 46.6% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 21.3% of total investments.

| (1) | Security represents the underlying municipal
obligation of an inverse floating rate obligation held by the Trust. |
| --- | --- |
| (2) | Security exempt from registration under
Rule 144A of the Securities Act of 1933. These securities may be sold in
transactions exempt from registration, normally to qualified institutional
buyers. At August 31, 2008, the aggregate value of these securities is
$3,750,436 or 3.8% of the Trust’s net assets applicable to common shares. |
| (3) | Security has been issued as a leveraged
inverse floater bond. The stated interest rate represents the rate in effect
at August 31, 2008. |
| (4) | Security (or a portion thereof) has been
segregated to cover margin requirements on open financial futures contracts. |

A summary of financial instruments at August 31, 2008 is as follows:

Futures Contracts

Expiration Date	Contracts	Position	Aggregate Cost		Value		Net Unrealized Appreciation
12/08	121 U.S. Treasury Bond	Short	$ (14,235,983	)	$ (14,194,812	)	$ 41,171

Interest Rate Swaps

Counterparty	Notional Amount	Annual Fixed Rate Paid By Trust	Floating Rate Paid To Trust	Effective Date/ Termination Date	Net Unrealized Depreciation
Lehman Brothers, Inc.	$ 4,250,000	4.985 %	3-month
USD-LIBOR-BBA	September 28,
2008 / September 28, 2038	$ (103,305	)
Merrill Lynch Capital Services, Inc.	6,825,000	5.065	3-month
USD-LIBOR-BBA	April 1,
2009 / April 1, 2039	(184,837	)
Morgan Stanley Capital Services, Inc.	2,575,000	5.428	3-month
USD-LIBOR-BBA	September 10,
2008 / September 10, 2038	(247,481	)
					$ (535,623	)

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The effective date represents the date on which the Trust and the counterparty to the interest rate swap contract begin interest payment accruals.

At August 31, 2008, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2008, as determined on a federal income tax basis, were as follows:

Aggregate cost	$
Gross
unrealized appreciation	$ 3,489,780
Gross
unrealized depreciation	(5,621,717	)
Net unrealized depreciation	$ (2,131,937	)

The Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective December 1, 2007. FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

· Level 1 — quoted prices in active markets for identical investments

· Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

At August 31, 2008, the inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

| Valuation Inputs — Level 1 | Quoted
Prices | Investment in Securities — $ — | Other Financial Instruments* — $ 41,171 | |
| --- | --- | --- | --- | --- |
| Level 2 | Other
Significant Observable Inputs | 167,465,790 | (535,623 | ) |
| Level 3 | Significant
Unobservable Inputs | — | — | |
| Total | | $ 167,465,790 | $ (494,452 | ) |

• Other financial instruments include futures and interest rate swap contracts not reflected in the Portfolio of Investments, which are valued at the unrealized appreciation (depreciation) on the instrument.

The Trust held no investments or other financial instruments as of May 31, 2008 whose fair value was determined using Level 3 inputs.

Municipal bonds and taxable obligations, if any, are generally valued on the basis of valuations furnished by a pricing vendor, as derived from such vendor’s pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, benchmark curves or information pertaining to the issuer. The pricing vendor may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Financial futures contracts and options on financial futures contracts listed on commodity exchanges are valued based on the closing price on the primary exchange on which such contracts trade. Interest rate swaps are normally valued using valuations provided by a pricing vendor. Such vendor valuations are based on the present value of fixed and projected floating rate cash flows over the term of the swap contract. Future cash flows are discounted to their present value using swap curves provided by electronic data services or by broker/dealers. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates market value.

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*Item 2. Controls and Procedures*

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

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Signatures

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

Eaton Vance California Municipal Income Trust

By:	/s/ Cynthia J. Clemson
	Cynthia J. Clemson
	President
Date:	October 23, 2008

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/ Cynthia J. Clemson
	Cynthia J. Clemson
	President
Date:	October 23, 2008
By:	/s/ Barbara E. Campbell
	Barbara E. Campbell
	Treasurer
Date:	October 23, 2008

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