Eaton Vance California Municipal Income Trust

Regulatory Filings • Apr 28, 2009

N-Q 1 b74708a1nvq.htm EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST Eaton Vance California Municipal Income Trust PAGEBREAK

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-09157

Investment Company Act File Number

Eaton Vance California Municipal Income Trust

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

November 30

Date of Fiscal Year End

February 28, 2009

Date of Reporting Period

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Item 2. Controls and Procedures
Signatures
EX-99.CERT Section 302 Certifications

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link2 "Item 1. Schedule of Investments"

Item 1. Schedule of Investments

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Eaton Vance California Municipal Income Trust as of February 28, 2009

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 180.3%

Principal
Amount
(000’s omitted)	Security	Value
Education — 15.5%
$ 2,000	California Educational Facilities Authority, (Claremont McKenna
College), 5.00%, 1/1/39	$ 1,951,400
2,770	California Educational Facilities Authority, (Lutheran
University), 5.00%, 10/1/29	2,129,188
500	California Educational Facilities Authority, (Pepperdine
University), 5.00%, 11/1/29	500,335
1,350	California Educational Facilities Authority, (Santa Clara
University), 5.00%, 9/1/23	1,376,568
4,000	California Educational Facilities Authority, (Stanford
University), 5.125%,
1/1/31 (1)	4,000,560
2,500	San Diego County, Certificates of Participation,
(University of San Diego), 5.375%, 10/1/41	2,259,925
		$ 12,217,976
Electric Utilities — 2.5%
$ 2,275	Chula Vista, (San Diego Gas), (AMT), 5.00%, 12/1/27	$ 1,981,343
		$ 1,981,343
General Obligations — 7.5%
$ 1,610	California, (AMT), 5.05%, 12/1/36	$ 1,311,506
4,770	San Francisco Bay Area Rapid Transit District, (Election of
2004), 4.75%,
8/1/37 (2)	4,604,004
		$ 5,915,510
Health Care-Miscellaneous — 0.3%
$ 300	Puerto Rico Infrastructure Financing Authority, (Mepsi Campus
Project), 6.50%, 10/1/37	$ 218,070
		$ 218,070
Hospital — 32.6%
$ 1,000	California Health Facilities Financing Authority, (Catholic
Healthcare West), 5.625%, 7/1/32	$ 935,890
2,435	California Health Facilities Financing Authority, (Cedars-Sinai
Medical Center), 5.00%, 11/15/34	2,038,290
1,500	California Health Facilities Financing Authority, (Providence
Health System), 6.50%, 10/1/38	1,579,155
3,480	California Health Facilities Financing Authority, (Sutter
Health), 5.25%, 11/15/46	3,098,847
750	California Infrastructure and Economic Development Bank, (Kaiser
Hospital), 5.50%, 8/1/31	676,755
3,900	California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35	3,139,500
1,750	California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/36	1,479,625
1,650	California Statewide Communities Development Authority, (Kaiser
Permanente), 5.50%, 11/1/32	1,492,309
1,750	California Statewide Communities Development Authority, (Sonoma
County Indian Health), 6.40%, 9/1/29	1,469,247
1,500	California Statewide Communities Development Authority, (Sutter
Health), 5.50%, 8/15/28	1,476,210
1,500	Duarte, (Hope National Medical Center), 5.25%, 4/1/24	1,378,755
410	Tahoe Forest Hospital District, 5.85%, 7/1/22	360,275
2,000	Torrance Hospital, (Torrance Memorial Medical Center), 5.50%,
6/1/31	1,811,880
1,250	Turlock, (Emanuel Medical Center, Inc.), 5.375%, 10/15/34	786,613
2,000	Washington Health Care Facilities Authority, (Providence Health
Care), 5.25%, 7/1/29	1,706,860
2,780	Washington Township Health Care District, 5.00%, 7/1/32	2,218,913
		$ 25,649,124
Housing — 2.7%
$ 1,750	California Housing Finance Agency, (AMT), 4.75%, 8/1/42	$ 1,252,405
729	Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29	562,970
423	Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29	324,648
		$ 2,140,023
Industrial Development Revenue — 2.6%
$ 800	California Pollution Control Financing Authority,
(Browning-Ferris Industries, Inc.), (AMT), 6.875%, 11/1/27	$ 767,480
2,000	California Statewide Communities Development Authority,
(Anheuser-Busch Cos., Inc.), (AMT), 4.80%, 9/1/46	1,237,460
		$ 2,004,940

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Principal
Amount
(000’s omitted)	Security	Value
Insured-Education — 8.3%
$ 400	California Educational Facilities Authority, (Pepperdine
University), (AMBAC), 5.00%, 12/1/35	$ 381,264
3,270	California Educational Facilities Authority, (Pooled College and
University), (MBIA), 5.10%, 4/1/23	3,301,490
3,000	California State University, (AMBAC), 5.00%, 11/1/33	2,856,840
		$ 6,539,594
Insured-Electric Utilities — 10.5%
$ 2,500	California Pollution Control Financing Authority, (Pacific Gas
and Electric), (MBIA), (AMT), 5.35%, 12/1/16	$ 2,404,900
3,250	California Pollution Control Financing Authority, (Southern
California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31	2,713,393
3,510	Los Angeles Department of Water and Power, (FSA), 4.625%, 7/1/37	3,176,620
		$ 8,294,913
Insured-Escrowed/Prerefunded — 3.0%
$ 5,130	Foothill/Eastern Transportation Corridor Agency, (FSA),
(RADIAN), Escrowed to Maturity, 0.00%, 1/1/26	$ 2,372,882
		$ 2,372,882
Insured-General Obligations — 7.3%
$ 7,000	Coast Community College District, (Election of 2002), (FSA),
0.00%,
8/1/34 (3)	$ 1,543,500
4,825	Coast Community College District, (Election of 2002), (FSA),
0.00%,
8/1/35 (3)	1,000,705
7,995	Sweetwater Union High School District, (Election 2000), (FSA),
0.00%, 8/1/25	3,221,665
		$ 5,765,870
Insured-Hospital — 19.5%
$ 3,100	California Health Facilities Financing Authority, (Kaiser
Permanente), (BHAC), 5.00%, 4/1/37	$ 3,110,881
3,200	California Statewide Communities Development Authority,
(Children’s Hospital Los Angeles), (MBIA), 5.25%, 8/15/29	2,860,352
750	California Statewide Communities Development Authority, (Kaiser
Permanente), (BHAC), 5.00%,
3/1/41 (2)	722,205
5,000	California Statewide Communities Development Authority, (Sutter
Health), (AMBAC), (BHAC), 5.00%,
11/15/38 (2)	4,834,450
3,735	California Statewide Communities Development Authority, (Sutter
Health), (FSA), 5.75%,
8/15/27 (2)	3,795,021
		$ 15,322,909
Insured-Lease Revenue/Certificates of
Participation — 12.6%
$ 6,500	Anaheim Public Financing Authority, Lease Revenue, (Public
Improvements), (FSA), 0.00%, 9/1/17	$ 4,347,070
2,000	Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity,
5.50%, 8/1/27	2,184,060
3,500	San Diego County Water Authority, (FSA), 5.00%,
5/1/38 (2)	3,405,465
		$ 9,936,595
Insured-Other Revenue — 2.1%
$ 1,855	Golden State Tobacco Securitization Corp., (AGC), (FGIC), 5.00%,
6/1/38	$ 1,654,141
		$ 1,654,141
Insured-Special Tax Revenue — 4.7%
$ 24,800	Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54	$ 984,560
4,225	Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44	380,335
8,380	Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45	702,076
5,270	Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46	409,479
480	Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28	504,062
690	Sacramento Area Flood Control Agency, (BHAC), 5.625%, 10/1/37	719,843
		$ 3,700,355
Insured-Transportation — 7.2%
$ 5,000	Alameda Corridor Transportation Authority, (AMBAC), 0.00%,
10/1/29	$ 1,377,150
8,000	Alameda Corridor Transportation Authority, (MBIA), 0.00%, 10/1/31	1,914,560

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Principal
Amount
(000’s omitted)	Security	Value
$ 740	Puerto Rico Highway and Transportation Authority, (AGC), (CIFG),
5.25%,
7/1/41 (2)	$ 716,479
10,000	San Joaquin Hills Transportation Corridor Agency, (MBIA),
0.00%, 1/15/32	1,634,800
		$ 5,642,989
Insured-Water and Sewer — 3.8%
$ 4,400	Los Angeles Department of Water and Power, (MBIA), 3.00%, 7/1/30	$ 3,015,100
		$ 3,015,100
Lease Revenue/Certificates of
Participation — 5.6%
$ 4,000	Sacramento City Financing Authority, 5.40%, 11/1/20	$ 4,376,120
		$ 4,376,120
Other Revenue — 2.2%
$ 385	California Infrastructure and Economic Development Bank,
(Performing Arts Center of Los Angeles), 5.00%, 12/1/32	$ 359,128
580	California Infrastructure and Economic Development Bank,
(Performing Arts Center of Los Angeles), 5.00%, 12/1/37	536,726
1,420	Golden State Tobacco Securitization Corp., 5.75%, 6/1/47	856,033
		$ 1,751,887
Senior Living/Life Care — 0.7%
$ 175	California Statewide Communities Development Authority, (Senior
Living - Presbyterian Homes), 4.75%, 11/15/26	$ 121,408
700	California Statewide Communities Development Authority, (Senior
Living - Presbyterian Homes), 4.875%, 11/15/36	435,421
		$ 556,829
Special Tax Revenue — 18.1%
$ 1,000	Bonita Canyon Public Financing Authority, 5.375%, 9/1/28	$ 729,220
285	Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26	200,897
460	Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34	292,726
1,000	Corona Public Financing Authority, 5.80%, 9/1/20	877,100
200	Eastern California Municipal Water District, Special Tax
Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/27	137,194
500	Eastern California Municipal Water District, Special Tax
Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/36	309,015
1,590	Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27	1,547,849
900	Lincoln Public Financing Authority, Improvement Bond Act of
1915, (Twelve Bridges), 6.20%, 9/2/25	770,895
420	Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.75%, 9/1/24	346,416
750	Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.90%, 9/1/29	583,470
2,340	Oakland Joint Powers Financing Authority, 5.40%, 9/2/18	2,403,929
960	Oakland Joint Powers Financing Authority, 5.50%, 9/2/24	977,501
1,325	San Pablo Redevelopment Agency, 5.65%, 12/1/23	1,313,366
1,095	Santa Margarita Water District, 6.20%, 9/1/20	1,066,497
250	Santaluz Community Facilities District No. 2, 6.10%, 9/1/21	221,627
500	Santaluz Community Facilities District No. 2, 6.20%, 9/1/30	408,090
250	Temecula Unified School District, 5.00%, 9/1/27	174,750
400	Temecula Unified School District, 5.00%, 9/1/37	250,780
500	Turlock Public Financing Authority, 5.45%, 9/1/24	430,545
500	Tustin Community Facilities District, 6.00%, 9/1/37	400,725
1,000	Whittier Public Financing Authority, (Greenleaf Avenue
Redevelopment), 5.50%, 11/1/23	817,930
		$ 14,260,522
Transportation — 5.4%
$ 2,000	Bay Area Toll Authority, Toll Bridge Revenue,
(San Francisco Bay Area), 5.00%,
4/1/31 (3)	$ 1,970,980
1,500	Los Angeles Department of Airports, (Los Angeles International
Airport), (AMT), 5.375%, 5/15/30	1,363,110
1,170	Port of Redwood City, (AMT), 5.125%, 6/1/30	909,207
		$ 4,243,297

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Principal
Amount
(000’s omitted)	Security	Value
Water and Sewer — 5.6%
$ 1,840	California Department of Water Resources, 5.00%, 12/1/29	$ 1,860,258
2,500	Metropolitan Water District of Southern California, 5.00%, 1/1/34	2,513,350
		$ 4,373,608
Total Tax-Exempt Investments — 180.3% (identified cost $157,066,512)		$ 141,934,597
Auction Preferred Shares Plus Cumulative Unpaid
Dividends — (63.5)%		$ (49,975,000	)
Other Assets, Less Liabilities — (16.8)%		$ (13,259,373	)
Net Assets Applicable to Common
Shares — 100.0%		$ 78,700,224

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	-	MBIA Insurance Corp. of Illinois
RADIAN	-	Radian Group, Inc.
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 February 28, 2009, 43.9% 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 16.1% of total investments.
(1)		Security (or a portion thereof) has been segregated to cover
margin requirements on open financial futures contracts.
(2)		Security represents the underlying municipal bond of a tender
option bond trust.
(3)		Security (or a portion thereof) has been pledged as collateral
for open swap contracts.

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A summary of financial instruments outstanding at February 28, 2009 is as follows:

Futures Contracts

Expiration — Date	Contracts	Position	Aggregate — Cost		Value		Net Unrealized — Appreciation
6/09	81 U.S. Treasury Bond	Short	$ (10,220,904	)	$ (9,990,844	)	$ 230,060

Interest Rate Swaps

	Notional	Annual — Fixed Rate	Floating — Rate	Effective Date/ — Termination	Net Unrealized
Counterparty	Amount	Paid By Trust	Paid To Trust	Date	Depreciation
JPMorgan Chase Co.	$ 2,125,000	4.743 %	3-month USD- LIBOR-BBA	September 14, 2009 / September 14, 2039	$ (471,624	)
Merrill Lynch Capital Services, Inc.	3,412,500	4.682	3-month USD- LIBOR-BBA	April 1, 2009 / April 1, 2039	(763,057	)
					$ (1,234,681	)

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

At February 28, 2009, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

The Trust is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Trust holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, the Trust may enter into interest rate swap contracts. The Trust may also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.

At February 28, 2009, the aggregate fair value of derivative instruments in an asset position and in a liability position and whose primary underlying risk exposure is interest rate risk was $230,060 and $1,234,681, respectively.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2009, as determined on a federal income tax basis, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 2,496,205
Gross unrealized depreciation	(16,969,617	)
Net unrealized depreciation	$ (14,473,412	)

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, 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) |

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At February 28, 2009, the inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

	Valuation Inputs	Investments in — Securities	Other Financial — Instruments*
Level 1	Quoted Prices	$ —	$ 230,060
Level 2	Other Significant Observable Inputs	141,934,597	(1,234,681	)
Level 3	Significant Unobservable Inputs	—	—
Total		$ 141,934,597	$ (1,004,621	)

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• Other financial instruments are futures and 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 November 30, 2008 whose fair value was determined using Level 3 inputs.

For information on the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements included in its semiannual or annual report to shareholders.

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BEGIN PAGE WIDTH link2 "Item 2. Controls and Procedures"

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:	April 24, 2009

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:	April 24, 2009

By:	/s/ Barbara E. Campbell
	Barbara E. Campbell
	Treasurer
Date:	April 24, 2009

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