Eaton Vance California Municipal Income Trust

Regulatory Filings • Apr 28, 2010

N-Q 1 b80548a1nvq.htm EATON VANCE CALIFONIA MUNICIPAL INCOME TRUST Eaton Vance Califonia 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, 2010

Date of Reporting Period

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TABLE OF CONTENTS

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

/TOC

Table of Contents

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, 2010

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 172.2%

Principal
Amount
(000’s omitted)	Security	Value
Education — 15.6%
$ 2,000	California Educational Facilities Authority, (Claremont McKenna
College), 5.00%, 1/1/39	$ 2,055,300
2,770	California Educational Facilities Authority, (Lutheran
University), 5.00%, 10/1/29	2,601,833
500	California Educational Facilities Authority, (Pepperdine
University), 5.00%, 11/1/29	503,810
1,105	California Educational Facilities Authority, (Pomona College),
5.00%, 7/1/45	1,129,620
1,350	California Educational Facilities Authority, (Santa Clara
University), 5.00%, 9/1/23	1,496,286
4,000	California Educational Facilities Authority, (Stanford
University),
5.125%, 1/1/31 (1)	4,007,560
2,500	San Diego County, Certificates of Participation, (University of
San Diego), 5.375%, 10/1/41	2,471,750
		$ 14,266,159
Electric Utilities — 6.0%
$ 270	Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34	$ 296,992
2,275	Chula Vista, (San Diego Gas and Electric), (AMT),
5.00%, 12/1/27	2,186,753
1,500	Northern California Power Agency, 5.25%, 8/1/24	1,597,905
1,300	Vernon, Electric System Revenue, 5.125%, 8/1/21	1,375,465
		$ 5,457,115
General Obligations — 11.3%
$ 750	California, 6.00%, 4/1/38	$ 774,885
1,590	California, (AMT), 5.05%, 12/1/36	1,428,758
4,770	San Francisco Bay Area Rapid Transit District, (Election of
2004),
4.75%, 8/1/37 (2)	4,848,991
3,180	Santa Clara County, (Election of 2008),
5.00%, 8/1/39 (2)(3)	3,322,146
		$ 10,374,780
Hospital — 29.8%
$ 1,000	California Health Facilities Financing Authority, (Catholic
Healthcare West), 5.625%, 7/1/32	$ 1,012,100
2,310	California Health Facilities Financing Authority, (Cedars-Sinai
Medical Center), 5.00%, 8/15/39	2,177,683
1,500	California Health Facilities Financing Authority, (Providence
Health System), 6.50%, 10/1/38	1,699,275
3,480	California Health Facilities Financing Authority, (Sutter
Health),
5.25%, 11/15/46 (2)	3,299,249
750	California Infrastructure and Economic Development Bank, (Kaiser
Hospital), 5.50%, 8/1/31	752,985
2,900	California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35	2,717,851
1,150	California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/34	1,098,434
1,750	California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/36	1,663,778
1,565	California Statewide Communities Development Authority, (Kaiser
Permanente), 5.50%, 11/1/32	1,574,922
1,750	California Statewide Communities Development Authority, (Sonoma
County Indian Health), 6.40%, 9/1/29	1,752,223
1,500	California Statewide Communities Development Authority, (Sutter
Health), 5.50%, 8/15/28	1,510,275
1,200	Duarte, (Hope National Medical Center), 5.25%, 4/1/24	1,202,220
410	Tahoe Forest Hospital District, 5.85%, 7/1/22	411,279
1,900	Torrance Hospital, (Torrance Memorial Medical Center),
5.50%, 6/1/31	1,916,302
1,250	Turlock, (Emanuel Medical Center, Inc.), 5.375%, 10/15/34	1,076,925
950	Washington Health Care Facilities Authority, (Providence Health
Care), 5.25%, 7/1/29	907,706
2,780	Washington Township Health Care District, 5.00%, 7/1/32	2,499,998
		$ 27,273,205
Housing — 2.7%
$ 1,750	California Housing Finance Agency, (AMT), 4.75%, 8/1/42	$ 1,432,550
715	Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29	651,191
418	Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29	376,192
		$ 2,459,933
Industrial Development Revenue — 4.1%
$ 800	California Pollution Control Financing Authority,
(Browning-Ferris Industries, Inc.), (AMT), 6.875%, 11/1/27	$ 800,816

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Principal
Amount
(000’s omitted)	Security	Value
$ 1,235	California Pollution Control Financing Authority, (Waste
Management, Inc.), (AMT), 5.125%, 11/1/23	$ 1,234,308
2,000	California Statewide Communities Development Authority,
(Anheuser-Busch Cos., Inc.), (AMT), 4.80%, 9/1/46	1,715,020
		$ 3,750,144
Insured-Education — 5.3%
$ 495	California Educational Facilities Authority, (Pepperdine
University), (AMBAC), 5.00%, 12/1/35	$ 485,818
1,250	California Educational Facilities Authority, (Santa Clara
University), (NPFG), 5.00%, 9/1/23	1,385,450
3,000	California State University, (AMBAC), 5.00%, 11/1/33	3,015,480
		$ 4,886,748
Insured-Electric Utilities — 6.4%
$ 2,500	California Pollution Control Financing Authority, (Pacific Gas
and Electric), (NPFG), (AMT), 5.35%, 12/1/16	$ 2,588,125
3,250	California Pollution Control Financing Authority, (Southern
California Edison Co.), (NPFG), (AMT), 5.55%, 9/1/31	3,213,762
		$ 5,801,887
Insured-Escrowed/Prerefunded — 2.9%
$ 5,130	Foothill/Eastern Transportation Corridor Agency, Toll Road
Bonds, (AGM), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26	$ 2,659,033
		$ 2,659,033
Insured-General Obligations — 6.3%
$ 7,000	Coast Community College District, (Election of 2002), (AGM),
0.00%, 8/1/34	$ 1,461,390
4,825	Coast Community College District, (Election of 2002), (AGM),
0.00%, 8/1/35	940,827
7,995	Sweetwater Union High School District, (Election of 2000),
(AGM), 0.00%, 8/1/25	3,336,713
		$ 5,738,930
Insured-Hospital — 16.8%
$ 3,100	California Health Facilities Financing Authority, (Kaiser
Permanente), (BHAC), 5.00%, 4/1/37	$ 3,114,415
2,840	California Statewide Communities Development Authority,
(Children’s Hospital Los Angeles), (NPFG),
5.25%, 8/15/29	2,671,730
750	California Statewide Communities Development Authority, (Kaiser
Permanente), (BHAC),
5.00%, 3/1/41 (2)	751,537
3,735	California Statewide Communities Development Authority, (Sutter
Health), (AGM),
5.75%, 8/15/27 (2)	3,780,816
5,000	California Statewide Communities Development Authority, (Sutter
Health), (AMBAC), (BHAC),
5.00%, 11/15/38 (2)	5,023,700
		$ 15,342,198
Insured-Lease Revenue/Certificates of
Participation — 11.1%
$ 5,630	Anaheim Public Financing Authority, (Public Improvements),
(AGM), 0.00%, 9/1/17	$ 4,135,854
2,000	Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity,
5.50%, 8/1/27	2,420,420
3,500	San Diego County Water Authority, Certificates of Participation,
(AGM),
5.00%, 5/1/38 (2)	3,549,035
		$ 10,105,309
Insured-Other Revenue — 1.8%
$ 1,755	Golden State Tobacco Securitization Corp., (AGC), (FGIC),
5.00%, 6/1/38	$ 1,670,760
		$ 1,670,760
Insured-Special Tax Revenue — 4.2%
$ 21,285	Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54	$ 1,228,357
4,220	Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44	521,466
8,355	Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45	959,990
5,270	Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46	566,472
480	Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28	534,139
		$ 3,810,424

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Principal
Amount
(000’s omitted)	Security	Value
Insured-Transportation — 9.2%
$ 5,000	Alameda Corridor Transportation Authority, (AMBAC),
0.00%, 10/1/29	$ 1,369,100
8,000	Alameda Corridor Transportation Authority, (NPFG),
0.00%, 10/1/31	1,927,360
740	Puerto Rico Highway and Transportation Authority, (AGC), (CIFG),
5.25%, 7/1/41 (2)	760,772
10,000	San Joaquin Hills Transportation Corridor Agency, Toll Road
Bonds, (NPFG), 0.00%, 1/15/32	1,637,700
1,320	San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT),
5.00%, 3/1/37	1,306,470
1,350	San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT),
6.00%, 3/1/47	1,427,152
		$ 8,428,554
Insured-Water and Sewer — 5.5%
$ 1,600	East Bay Municipal Utility District, Water System Revenue,
(FGIC), (NPFG), 5.00%, 6/1/32	$ 1,671,680
4,400	Los Angeles Department of Water and Power, (NPFG),
3.00%, 7/1/30	3,419,460
		$ 5,091,140
Other Revenue — 2.2%
$ 385	California Infrastructure and Economic Development Bank,
(Performing Arts Center of Los Angeles), 5.00%, 12/1/32	$ 372,768
580	California Infrastructure and Economic Development Bank,
(Performing Arts Center of Los Angeles), 5.00%, 12/1/37	544,400
980	Golden State Tobacco Securitization Corp., 0.00%, 6/1/37	623,515
640	Golden State Tobacco Securitization Corp., 5.75%, 6/1/47	471,917
		$ 2,012,600
Senior Living/Life Care — 1.5%
$ 175	California Statewide Communities Development Authority, (Senior
Living - Presbyterian Homes), 4.75%, 11/15/26	$ 155,537
700	California Statewide Communities Development Authority, (Senior
Living - Presbyterian Homes), 4.875%, 11/15/36	582,778
600	California Statewide Communities Development Authority, (Senior
Living - Presbyterian Homes), 7.25%, 11/15/41	639,984
		$ 1,378,299
Special Tax Revenue — 19.4%
$ 1,000	Bonita Canyon Public Financing Authority, 5.375%, 9/1/28	$ 914,000
285	Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26	228,513
460	Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34	338,804
2,000	California, Economic Recovery Bonds, 5.00%, 7/1/20	2,207,940
970	Corona Public Financing Authority, 5.80%, 9/1/20	928,804
200	Eastern California Municipal Water District, Special Tax
Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/27	166,154
500	Eastern California Municipal Water District, Special Tax
Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/36	381,650
1,590	Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27	1,606,870
895	Lincoln Public Financing Authority, Improvement Bond Act of
1915, (Twelve Bridges), 6.20%, 9/2/25	898,061
420	Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.75%, 9/1/24	392,553
750	Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.90%, 9/1/29	690,540
2,250	Oakland Joint Powers Financing Authority, 5.40%, 9/2/18	2,305,192
930	Oakland Joint Powers Financing Authority, 5.50%, 9/2/24	949,697
1,325	San Pablo Redevelopment Agency, 5.65%, 12/1/23	1,336,157
1,095	Santa Margarita Water District, 6.20%, 9/1/20	1,113,089
250	Santaluz Community Facilities District No. 2, 6.10%, 9/1/21	250,285
500	Santaluz Community Facilities District No. 2, 6.20%, 9/1/30	497,125
250	Temecula Unified School District, 5.00%, 9/1/27	219,920
400	Temecula Unified School District, 5.00%, 9/1/37	324,876
500	Turlock Public Financing Authority, 5.45%, 9/1/24	501,795
500	Tustin Community Facilities District, 6.00%, 9/1/37	468,755
1,000	Whittier Public Financing Authority, (Greenleaf Avenue
Redevelopment), 5.50%, 11/1/23	973,680
		$ 17,694,460

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Principal
Amount
(000’s omitted)	Security	Value
Transportation — 5.1%
$ 2,000	Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay
Area), 5.00%, 4/1/31	$ 2,035,640
1,500	Los Angeles Department of Airports, (Los Angeles International
Airport), (AMT), 5.375%, 5/15/30	1,537,410
1,170	Port of Redwood City, (AMT), 5.125%, 6/1/30	1,100,362
		$ 4,673,412
Water and Sewer — 5.0%
$ 1,840	California Department of Water Resources, 5.00%, 12/1/29	$ 1,964,954
2,500	Metropolitan Water District of Southern California, (Waterworks
Revenue Authorization), 5.00%, 1/1/34	2,617,200
		$ 4,582,154
Total Tax-Exempt Investments — 172.2% (identified cost $161,010,868)		$ 157,457,244
Auction Preferred Shares Plus Cumulative Unpaid
Dividends — (54.7)%		$ (49,978,498	)
Other Assets, Less Liabilities — (17.5)%		$ (16,028,024	)
Net Assets Applicable to Common Shares — 100.0%		$ 91,450,722

| The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares. — AGC | - | Assured Guaranty Corp. |
| --- | --- | --- |
| AGM | - | Assured Guaranty Municipal 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 |
| NPFG | - | National Public Finance Guaranty Corp. |
| 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, 2010, 40.4% 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 14.4% of total investments. | | |
| (1) | | Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts. |
| (2) | | Security represents the underlying municipal bond of an inverse
floater. |
| (3) | | Security (or a portion thereof) has been pledged as collateral
for inverse floating-rate security transactions. The aggregate
value of such collateral is $937,146 |

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A summary of financial instruments outstanding at February 28, 2010 is as follows:

Futures Contracts

Expiration — Date	Contracts	Position	Aggregate — Cost		Value		Net Unrealized — Depreciation
6/10	72 U.S. 30 Year Treasury Bond	Short	$ (8,401,248	)	$ (8,473,500	)	$ (72,252	)

Interest Rate Swaps

	Notional	Annual — Fixed Rate	Floating Rate	Effective Date/ — Termination	Net Unrealized — Appreciation
Counterparty	Amount	Paid By Trust	Paid To Trust	Date	(Depreciation)
JPMorgan Chase Co.	$ 2,125,000	4.097 %	3-month USD- LIBOR-BBA	March 15, 2010 / March 15, 2040	$ 118,467
Merrill Lynch Capital Services, Inc.	3,412,500	4.665	3-month USD- LIBOR-BBA	May 24, 2010 / May 24, 2040	(110,344	)
					$ 8,123

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, 2010, 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, 2010, the aggregate fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and in a liability position and whose primary underlying risk exposure is interest rate risk was $118,467 and $182,596, respectively.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2010, as determined on a federal income tax basis, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 5,521,140
Gross unrealized depreciation	(8,346,981	)
Net unrealized depreciation	$ (2,825,841	)

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is 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.

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At February 28, 2010, the inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs
Asset Description	(Level 1)		(Level 2)		(Level 3)	Total
Tax-Exempt Investments	$ —		$ 157,457,244		$ —	$ 157,457,244
Total Investments	$ —		$ 157,457,244		$ —	$ 157,457,244
Interest Rate Swaps	$ —		$ 118,467		$ —	$ 118,467
Total	$ —		$ 157,575,711		$ —	$ 157,575,711
Liability Description
Futures Contracts	$ (72,252	)	$ —		$ —	$ (72,252	)
Interest Rate Swaps	—		(110,344	)	—	(110,344	)
Total	$ (72,252	)	$ (110,344	)	$ —	$ (182,596	)

The Trust held no investments or other financial instruments as of November 30, 2009 whose fair value was determined using Level 3 inputs.

For information on the Trust’s policy regarding the 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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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 26, 2010

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 26, 2010
By:	/s/ Barbara E. Campbell
	Barbara E. Campbell
	Treasurer
Date:	April 26, 2010

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