SHAREHOLDER LETTER
Dear Shareholder:
It's a pleasure to bring you Franklin California Tax-Free Income Fund's annual
report for the period ended March 31, 1999.
During the 12 months under review, the municipal bond market was comparatively
stable in what could otherwise be characterized as a challenging year for global
and domestic markets. The economic stress felt in Asia, Latin America and
Eastern Europe caused many investors to seek safety in U.S. Treasury bonds,
driving yields on the 30-year Treasury bond to an all-time low of 4.70% on
October 5, 1998. These regions had a direct impact on the U.S. economy as
foreign countries purchased fewer American goods, leading to an overall
reduction in U.S. export levels. In light of reduced export levels, it was
expected that the U.S. economy would see some slowing in the fourth quarter of
1998. However, 1998 fourth quarter growth actually exceeded expectations, and
the U.S. gross domestic product (GDP) grew at an annualized rate of 6%. The
American consumer boosted the domestic economy at much higher-than-anticipated
levels, which resulted in the Federal Reserve Board's (the Fed's) moving to a
neutral position with respect to short-term interest rates, rather than its
previous bias toward lowering rates that began in 1998. The change in the Fed's
position in large part caused 30-year Treasury yields to rise, reaching a peak
of 5.69% on March 4, 1999.
CONTENTS
Shareholder Letter .............. 1
Special Feature:
A Word About Municipal
Bond Insurance ................ 5
Manager's Discussion ............ 7
Performance Summary ............. 12
Financial Highlights &
Statement of Investments ........ 15
Financial Statements ............ 59
Notes to
Financial Statements ............ 62
Independent
Auditors' Report ................ 65
Tax Information ................. 66
[FUND CATEGORY GRAPH]
Page
The municipal bond market remained steady throughout the Treasury market
volatility as a period of increased municipal bond supply more than met demand.
As interest rates declined, municipal bond issuers increased their refinancing
activity of outstanding, higher interest-rate debt. In addition, many
municipalities were in excellent fiscal condition due to the strong national
economy, which gave them higher confidence to borrow money for new projects.
These two conditions led to a surge in 1998's new-issue supply with total volume
closely matching 1993's record $293 billion. Although demand from individual
investors was relatively stable, at times, the municipal bond market had
difficulty absorbing the large supply of bonds. This environment led to superior
municipal bond yields, as municipal bond prices lagged those of similar Treasury
bonds. To put it in perspective, in October 1998 an investor could purchase a
30-year, AAA municipal bond yielding approximately 105% of the yield on a
comparable Treasury bond, versus the historical average of approximately 89%.
The last time we saw such attractive municipal market valuations was 1985 and
1986.
As Treasury yields rose in the first quarter of 1998, the yield on the Bond
Buyer 40 index increased to 5.27%, and the municipal-to-Treasury yield ratio
declined to 92%.* Municipals generally trade at yields below Treasuries due to
their tax-exempt status, and the ratio of municipal to Treasury yields
historically has been in the range of 87% to 89%. The above-average ratio of
municipals to Treasuries has allowed municipal investors to earn attractive
distribution rates relative to other fixed-income opportunities.
* The unmanaged Bond Buyer Municipal 40 Index is composed of the Yield to
Maturity of 40 bonds. The index attempts to track the new-issue market as
closely as possible, so it changes bonds twice a month, adding all new bonds
that meet certain requirements and deleting an equivalent number according to
their secondary market trading activity. As a result, the average par call date,
average maturity date and average coupon rate change over time. The average
maturity generally has been about 29-30 years.
2
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The prevalence of bond insurance was another trend that affected the municipal
bond market. The increasingly higher percentages of AAA-insured municipal bond
issues coming to market over the past four years seems to have finally peaked at
approximately 59.8% for California issuers in 1998.** As so many new bonds have
come to market insured, there have been fewer and fewer uninsured bonds. With
investors continuing to demand higher yields in a falling interest-rate
environment, municipal bond market credit spreads, or the additional interest
rate paid to investors for AAA- versus BBB-rated bonds, were extremely narrow.
Over the past few years, in contrast, we focused for the most part on purchasing
AAA-insured securities because we felt we weren't getting the appropriate reward
of higher interest rates, to take on the additional credit risk of many
lower-quality bonds. As a result, Franklin California Tax-Free Income Fund held
a record-high percentage of net assets invested in AAA bonds at the fund's
fiscal year-end.
WHAT DOES "TAXABLE EQUIVALENT" MEAN FOR YOU?
For yield and distribution rate, taxable equivalent is the amount a taxable
investment would have to earn to match the income from a tax-free investment
such as a municipal bond. You can find your fund's taxable equivalent
distribution rate and yield in the Performance Summary of this
report.
Looking forward, we anticipate supply pressures to moderate in 1999. Already,
municipal new issuance for the first quarter of the year was down about 19.3%,
compared with the same period last calendar year.*** Municipal bonds continue to
be an attractive investment for those investors seeking tax-free income as well
as an opportunity to diversify risk in their portfolio. Generally, a taxable
investment would need to offer a higher yield, called the taxable equivalent
yield, to match the yield on a tax-free investment. We encourage you to discuss
your financial goals with an investment representative. He or she can address
** Source: California Debt and Investment Advisory Commission, 2/16/99.
*** Source: The Bond Buyer, 4/1/99.
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concerns about volatility and help you diversify your investments and stay
focused on the long term. Mutual funds offer a level of diversification that is
almost impossible for individual investors to achieve on their own. As always,
we appreciate your support, welcome your questions and comments and look forward
to serving your investment needs in the years ahead.
Sincerely,
/s/ Charles B. Johnson
------------------------------------------
Charles B. Johnson
Chairman
Franklin California Tax-Free Income Fund
/s/ Thomas J. Kenny
------------------------------------------
Thomas J. Kenny
Director
Franklin Municipal Bond Department
4
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A WORD ABOUT
MUNICIPAL BOND INSURANCE
[SPECIAL FEATURE GRAPHIC]
Municipal bond insurers guarantee the timely payment of interest and principal
on insured bond issues, providing bond investors with additional protection
against the potential of the issuer's payment default. Moody's and Standard &
Poor's assign the four principal municipal bond insurers -- MBIA, AMBAC, FGIC
and FSA -- their highest rating, AAA, based on their ability to pay claims. This
is important, as once a bond is insured it no longer carries the underlying
security's rating, but the insurer's rating. In 1998, the four primary municipal
bond insurers comprised more than 98% of the market, with MBIA controlling the
largest share, 35.4%.
Municipal bond insurers often work with bond reinsurers to enhance their ability
to generate new business. By purchasing portions of insured bond portfolios from
the insurers, bond reinsurers assume a portion of the risk, freeing up the
insurers' capital and enabling them to insure additional municipal bond issues.
The added capital provided by the reinsurers, in turn, increases the overall
size of the insured municipal bond market.
5
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This chart shows in pie format the market share of municipal bond insurers as of
12/31/98.
<TABLE>
<S> <C>
MBIA 35.4%
FSA 22.0%
FGIC 21.5%
AMBAC 19.6%
Other 1.5%
</TABLE>
Currently, many municipal bond issuers favor the use of bond insurance. In 1998,
municipal bond insurers covered 50.8% of the new-issue municipal bond market,
involving 5,825 new issues valued at $145 billion. For issuers, obtaining bond
insurance can often lower their borrowing costs as it often improves their
credit rating, which more than makes up for the cost of the insurance. In
addition, the four primary, AAA-rated bond insurers presently charge issuers
comparatively inexpensive insurance premiums, due to the extremely competitive
environment for municipal bond insurance. Bond insurance also enables issuers to
market their bonds to a larger pool of potential buyers. For example, insured
municipal bond funds purchase primarily, if not exclusively, insured bonds.
Low-cost municipal bond insurance benefits investors beyond the credit
protection it provides against payment default. As insured bonds appeal to a
wider variety of investors, insurance can lead to improved liquidity, allowing
investors to more easily buy and sell bonds.
This bar chart shows the Insured Municipal Bond Issues as a % of Municipal Bond
Market.
<TABLE>
<S> <C>
1993 - 37.0%
1994 - 37.0%
1995 - 43.0%
1996 - 46.0%
1997 - 49.0%
1998 - 50.8%
</TABLE>
Source: The Bond Buyer, 1999.
*Source: The Bond Buyer, 1999.
6
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MANAGER'S DISCUSSION
Your Fund's Goal: Franklin California Tax-Free Income Fund seeks to provide
high, current income exempt from regular federal and California state personal
income taxes through a portfolio consisting primarily of California municipal
bonds.(1)
This chart shows in pie format the quality breakdown based on total long-term
investments as of 3/31/99.
<TABLE>
<S> <C>
AAA 59.7%
AA 12.4%
A 12.0%
BBB 15.1%
Below investment grade 0.8%
</TABLE>
* Quality breakdown may include internal ratings for bonds not rated by a
national agency.
CALIFORNIA ECONOMIC UPDATE
California's economy prospered during the year under review. According to the
state's annual job report, California added 454,000 nonfarm jobs, more than any
time in the past 15 years.(2) These new jobs reflected a decade-long shift in
the state's key industries, with computers, software and entertainment
overtaking traditional manufacturing sectors such as cars, airplanes and steel
in importance. California home sales, another economic health indicator, reached
their highest level since 1989.(3) Many renters were able to benefit from low
mortgage rates and secure employment to become first-time buyers.
Despite California's economic ties to Asia, several factors insulated the
state's economy from problems affecting that region during the year under
review. First, export losses to Asia were offset by gains to higher growth
regions or nations, such as Europe, Canada, Mexico and South America. Second,
only two of the
(1.) For investors subject to the federal alternative minimum tax, a small
portion of this income may be subject to such tax. Distributions of capital
gains and of ordinary income from accrued market discount, if any, are generally
taxable.
(2.) Source: The Associated Press, State & Local Wire, 3/1/99.
(3.) Source: Business Wire, 2/9/99.
You will find a complete listing of the fund's portfolio holdings, including
dollar value and number of shares or principal amount, beginning on page 18 of
this report.
7
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state's major industries, aerospace and technology, depended on Asia for a large
percentage of their earnings. Third, many of the state's premier industries,
such as media, transportation and financial services, cater to a national or
regional market. However, continued Asian troubles may bring about further
California export declines with corresponding production cutbacks and layoffs in
the future. Their impact has been limited so far because of the time it takes
for export declines to affect jobs and spending.
Overall, California boasts a rosy fiscal outlook. Taxes generated by the growing
economy should pump an extra $1.3 billion into the state's accounts in the
upcoming months, according to a legislative analyst who attributed the
unanticipated windfall chiefly to capital gains taxes on profits made by stock
market investors.(4)
PORTFOLIO NOTES
As in the previous reporting period, many California municipalities took
advantage of declining interest rates to issue new securities and to refinance
outstanding debt. Widespread, relatively inexpensive bond insurance led to many
new issues being insured. As for refinancing, over one billion dollars worth of
the fund's bonds, many of them prerefunded, were called during the reporting
period. When a bond is prerefunded, a new issue is brought to market with a
lower interest rate to pay off the older issue at its first call date. In most
cases, the proceeds from the sale of the new bonds are invested in U.S. Treasury
securities that mature on the first call date of the original bonds. Because of
the U.S. Treasury backing, prerefunded bonds usually offer a substantial price
increase -- depending on their call date.
Generally, we look to sell prerefunded bonds as they approach five years to
their call date. At this point, the premium on prerefunded bonds often begins to
decline rapidly to the stated call
(4). Source: United Press International, 2/16/99.
8
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price. Our strategy aims to capture the bond's premium, increase the fund's call
protection and protect its share value. During the reporting period, we
attempted to reduce the number of prerefunded bonds to about 10% of the fund's
portfolio. However, due to the high number of refundings, the fund's prerefunded
bond holdings increased slightly to about 16% of the portfolio on March 31,
1999, compared with 14.1% on March 31, 1998. At the same time, the average call
protection for fund issues increased to a weighted average life to first call of
5.8 years at the end of the reporting period, versus 5.4 years on March 31,
1998. The fund profited by selling many of its prerefunded securities for more
than it paid. Therefore, it made long-term capital gain distributions totaling
2.38 cents per share in June and December 1998, and may make another capital
gain distribution in June 1999.
This chart shows the portfolio breakdown by sector as a percent of total
long-term investments as of 3/31/99.
<TABLE>
<S> <C>
Utilities 18.6%
Prerefunded 16.0%
Transportation 11.7%
Certificates of Participation 11.1%
Hospitals 11.0%
Tax-Allocation 7.5%
Housing 5.6%
General Obligation 5.5%
Education 2.6%
Sales Tax Revenue 2.1%
Other Revenue 1.9%
Health Care 1.6%
Mello-Roos 1.6%
Marks-Roos 1.5%
Special Assessment 1.0%
Industrial 0.7%
</TABLE>
Please keep in mind that the fund can distribute only what it earns. 1998 was an
anomaly with about 10% of Franklin California Tax-Free Income Fund's portfolio
being called. We invested new money and proceeds from bond sales and called
bonds in current coupon bonds at a slight discount. While the called bonds had
an average coupon of more than 7%, most new purchases were insured bonds whose
coupons, ranging from 4 3/4% to 5 1/4%, reflected the recent lower interest-rate
and inflation environment. This put pressure on the fund's overall income
earnings, causing its dividend distributions to decrease slightly during the
year under review. It is important to note that the portfolio maintained its
high quality, with approximately 49% insured bonds and 60% AAA-quality bonds, as
of March 31, 1999. We emphasize that we have not changed our philosophy of
investing for income and share value stability. We believe that the fund should
rank favorably when compared with other fixed-income investment alternatives.
During the fund's next fiscal year, we expect approximately $400 million worth
of bonds, or two percent of the fund's portfolio, to be called. This should
leave about 13% of the portfolio prerefunded,
9
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which we will try to reduce to our goal of 10%. We expect California's need for
infrastructure to assure sufficient bond supply to fill our needs. In this
environment, the fund should perform well.
As always, we encourage investors to maintain a long-term investment
perspective. If you had invested $10,000 in the fund's Class A shares on March
31, 1989, as of March 31, 1999, you would have received monthly tax-free income
dividend checks totaling more than $6,400. If you had reinvested all your
distributions, including capital gains, your account would have been worth
$20,108.(5) In both cases, the fund has provided shareholders attractive
returns. Of course, this was a period of generally declining interest rates and
rising bond prices, and past performance cannot guarantee future results.
Please remember, this discussion reflects our views, opinions and portfolio
holdings as of March 31, 1999, the end of the reporting period. However, market
and economic conditions are changing constantly, which can be expected to affect
our strategies and the fund's portfolio composition. Although historical
performance is no guarantee of future results, these insights may help you
understand our investment and management philosophy.
5. Figures include the Class A (formerly Class I) shares' current, maximum 4.25%
initial sales charge. Prior to July 1, 1994, fund shares were offered at a lower
initial sales charge; thus actual total returns may differ. Effective May 1,
1994, the fund eliminated the sales charge on reinvested dividends and
implemented a Rule 12b-1 plan, which affects subsequent performance.
10
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This table shows the dividend distributions of the Franklin California Tax-Free
Income Fund - Class A, Class B and Class C from 4/1/98 to 3/31/99.
<TABLE>
<CAPTION>
Dividend per share
Month Class A Class B Class C
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
April.................................... 3.30 cents 2.94 cents
May...................................... 3.30 cents 2.94 cents
June..................................... 3.30 cents 2.94 cents
July..................................... 3.30 cents 2.97 cents
August................................... 3.30 cents 2.97 cents
September................................ 3.30 cents 2.97 cents
October.................................. 3.30 cents 2.96 cents
November................................. 3.30 cents 2.96 cents
December................................. 3.10 cents 2.76 cents
January.................................. 3.10 cents 3.10 cents 2.76 cents
February................................. 3.10 cents 2.74 cents 2.76 cents
March.................................... 2.95 cents 2.67 cents 2.58 cents
- -------------------------------------------------------------------------------
Total.................................... 38.65 cents 8.51 cents 34.51 cents
</TABLE>
* January 1, 1999, the fund began offering Class B shares to investors. See the
prospectus for details.
11
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CLASS A (formerly Class I):
Subject to the current, maximum 4.25% initial sales charge. Prior to July 1,
1994, fund shares were offered at a lower initial sales charge; thus actual
total returns may differ. Effective May 1, 1994, the fund eliminated the sales
charge on reinvested dividends and implemented a Rule 12b-1 plan, which affects
subsequent performance.
CLASS B:
Subject to no initial sales charge, but subject to a contingent deferred sales
charge (CDSC) declining from 4% to 0% over six years. These shares have higher
annual fees and expenses than Class A shares.
CLASS C (formerly Class II):
Subject to 1% initial sales charge and 1% CDSC for shares redeemed within 18
months of investment. These shares have higher annual fees and expenses than
Class A shares.
PERFORMANCE SUMMARY AS OF 3/31/99
Distributions will vary based on earnings of the fund's portfolio and any
profits realized from the sale of the portfolio's securities. Past distributions
are not indicative of future trends. All total returns include reinvested
distributions at net asset value.
PRICE AND DISTRIBUTION INFORMATION (4/1/98-3/31/99)
<TABLE>
<CAPTION>
CLASS A CHANGE 3/31/99 3/31/98
- ---------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value +$0.05 $7.40 $7.35
DISTRIBUTIONS
------------------------------------
Dividend Income $0.3865
Long-Term Capital Gain $0.0238
TOTAL $0.4103
CLASS B CHANGE 3/31/99 1/1/99
- ---------------------------------------------------------------------
Net Asset Value - $0.02 $7.39 $7.41
DISTRIBUTIONS
------------------------------------
Dividend Income $0.0851
CLASS C CHANGE 3/31/99 3/31/98
- ---------------------------------------------------------------------
Net Asset Value +$0.04 $7.39 $7.35
DISTRIBUTIONS
------------------------------------
Dividend Income $0.3451
Long-Term Capital Gain $0.0238
TOTAL $0.3689
</TABLE>
Franklin California Tax-Free Income Fund paid distributions derived from
long-term capital gains totaling 2.38 cents ($0.0238) per share in June and
December 1998. The fund hereby designates such distributions as capital gain
dividends per Internal Revenue Code Section 852 (b)(3).
Past performance is not predictive of future results.
12
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PERFORMANCE
<TABLE>
<CAPTION>
INCEPTION
CLASS A 1-YEAR 5-YEAR 10-YEAR (2/1/77)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cumulative Total Return(1) +6.43% +41.49% +109.95% +283.22%
Average Annual Total Return(2) +1.86% +6.25% +7.23% +6.04%
Distribution Rate(3) 4.58%
Taxable Equivalent
Distribution Rate(4) 8.36%
30-Day Standardized Yield(5) 4.09%
Taxable Equivalent Yield(4) 7.47%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION
CLASS B (1/1/99)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Cumulative Total Return(1) +0.88%
Aggregate Total Return(2) -3.17%
Distribution Rate(3) 4.34%
Taxable Equivalent
Distribution Rate(4) 7.92%
30-Day Standardized Yield(5) 3.71%
Taxable Equivalent Yield(4) 6.77%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION
CLASS C 1-YEAR 3-YEAR (5/1/95)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cumulative Total Return(1) +5.70% +21.58% +29.69%
Average Annual Total Return(2) +3.71% +6.39% +6.59%
Distribution Rate(3) 4.15%
Taxable Equivalent
Distribution Rate(4) 7.58%
30-Day Standardized Yield(5) 3.66%
Taxable Equivalent Yield(4) 6.68%
</TABLE>
(1.) Cumulative total return represents the change in value of an investment
over the periods indicated and does not include sales charges.
(2.) Average annual total return represents the average annual change in value
of an investment over the periods indicated and includes the current,
applicable, maximum sales charge(s) for that class. Since Class B shares have
existed for less than one year, the figures for that class represent aggregate
total return from inception; therefore, average annual total returns are not
provided.
(3.) Distribution rate is based on an annualization of the respective class's
March monthly dividend and the maximum offering price per share on March 31,
1999.
(4.) Taxable equivalent distribution rate and yield assume the 1999 maximum
combined federal and California state personal income tax bracket of 45.2%,
based on the federal income tax rate of 39.6%.
(5.) Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended March 31, 1999.
Bond prices, and thus the fund's share price, generally move in the opposite
direction from interest rates. Since markets can go down as well as up,
investment return and principal value will fluctuate with market conditions, and
you may have a gain or loss when you sell your shares.
Past performance is not predictive of future results.
13
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AVERAGE ANNUAL TOTAL RETURN
3/31/99
<TABLE>
<CAPTION>
CLASS A
- -----------------------------------
<S> <C>
1-Year +1.86%
5-Year +6.25%
10-Year +7.23%
Since Inception (2/1/77) +6.04%
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
3/31/99
<TABLE>
<CAPTION>
CLASS C
- -----------------------------------
<S> <C>
1-Year +3.71%
3-Year +6.39%
Since Inception (5/1/95) +6.59%
</TABLE>
TOTAL RETURN INDEX COMPARISON
FOR HYPOTHETICAL $10,000 INVESTMENT
Total return represents the change in value of an investment over
the periods shown. It includes the current, applicable, maximum sales charge(s),
fund expenses, account fees and reinvested distributions. The unmanaged index
differs from the fund in composition, does not pay management fees or expenses
and includes reinvested dividends. One cannot invest directly in an index.
Performance of the fund's shares exceeded the rate of inflation as measured by
the Consumer Price Index (CPI).
The following line graph compares the performance of the Franklin California
Tax-Free Income Fund's Class A shares to that of the Lehman Brothers Municipal
Bond Index, and to the Consumer Price Index based on a $10,000 investment from
4/1/89 to 3/31/99.
<TABLE>
<CAPTION>
Date Franklin California Lehman Brothers CPI
Tax-Free Income Municipal Bond
Fund-Class A Index
<S> <C> <C> <C> <C> <C>
4/1/89 9,577 10,000 10,000
4/30/89 9,766 2.37% 10,237 0.65% 10,065
5/31/89 9,955 2.08% 10,450 0.57% 10,122
6/30/89 10,103 1.36% 10,592 0.24% 10,147
7/31/89 10,165 1.36% 10,736 0.24% 10,171
8/31/89 10,125 -0.98% 10,631 0.16% 10,187
9/30/89 10,071 -0.30% 10,599 0.32% 10,220
10/31/89 10,164 1.22% 10,728 0.48% 10,269
11/30/89 10,286 1.75% 10,916 0.24% 10,294
12/31/89 10,365 0.82% 11,006 0.16% 10,310
1/31/90 10,310 -0.47% 10,954 1.03% 10,416
2/28/90 10,465 0.89% 11,051 0.47% 10,465
3/31/90 10,454 0.03% 11,055 0.55% 10,523
4/30/90 10,443 -0.72% 10,975 0.16% 10,540
5/31/90 10,693 2.18% 11,214 0.23% 10,564
6/30/90 10,758 0.88% 11,313 0.54% 10,621
7/31/90 10,917 1.48% 11,480 0.38% 10,661
8/31/90 10,717 -1.45% 11,314 0.92% 10,759
9/30/90 10,720 0.06% 11,321 0.84% 10,850
10/31/90 10,802 1.81% 11,526 0.60% 10,915
11/30/90 11,012 2.01% 11,757 0.22% 10,939
12/31/90 11,047 0.44% 11,809 0.00% 10,939
1/31/91 11,195 1.34% 11,967 0.60% 11,004
2/28/91 11,247 0.87% 12,071 0.15% 11,021
3/31/91 11,299 0.04% 12,076 0.15% 11,037
4/30/91 11,434 1.34% 12,238 0.15% 11,054
5/31/91 11,536 0.89% 12,347 0.30% 11,087
6/30/91 11,538 -0.10% 12,335 0.29% 11,119
7/31/91 11,707 1.22% 12,485 0.15% 11,136
8/31/91 11,792 1.32% 12,650 0.29% 11,168
9/30/91 11,963 1.30% 12,814 0.44% 11,217
10/31/91 12,032 0.90% 12,930 0.15% 11,234
11/30/91 12,085 0.28% 12,966 0.29% 11,267
12/31/91 12,259 2.15% 13,245 0.07% 11,275
1/31/92 12,278 0.23% 13,275 0.15% 11,292
2/29/92 12,280 0.03% 13,279 0.36% 11,332
3/31/92 12,387 0.04% 13,284 0.51% 11,390
4/30/92 12,459 0.89% 13,403 0.14% 11,406
5/31/92 12,655 1.18% 13,561 0.14% 11,422
6/30/92 12,800 1.68% 13,789 0.36% 11,463
7/31/92 13,159 3.00% 14,202 0.21% 11,487
8/31/92 12,981 -0.98% 14,063 0.28% 11,519
9/30/92 13,015 0.65% 14,155 0.28% 11,552
10/31/92 12,813 -0.98% 14,016 0.35% 11,592
11/30/92 13,195 1.79% 14,267 0.14% 11,608
12/31/92 13,396 1.02% 14,412 -0.07% 11,600
1/31/93 13,542 1.16% 14,579 0.49% 11,657
2/28/93 13,875 3.62% 15,107 0.35% 11,698
3/31/93 13,779 -1.06% 14,947 0.35% 11,739
4/30/93 13,872 1.01% 15,098 0.28% 11,772
5/31/93 13,926 0.56% 15,183 0.14% 11,788
6/30/93 14,157 1.67% 15,436 0.14% 11,805
7/31/93 14,136 0.13% 15,456 0.00% 11,805
8/31/93 14,461 2.08% 15,778 0.28% 11,838
9/30/93 14,594 1.14% 15,957 0.21% 11,863
10/31/93 14,627 0.19% 15,988 0.41% 11,911
11/30/93 14,524 -0.88% 15,847 0.07% 11,920
12/31/93 14,667 2.11% 16,181 0.00% 11,920
1/31/94 14,819 1.14% 16,366 0.27% 11,952
2/28/94 14,595 -2.59% 15,942 0.34% 11,992
3/31/94 14,211 -4.07% 15,293 0.34% 12,033
4/30/94 14,265 0.85% 15,423 0.14% 12,050
5/31/94 14,380 0.87% 15,557 0.07% 12,058
6/30/94 14,333 -0.61% 15,463 0.34% 12,099
7/31/94 14,531 1.83% 15,745 0.27% 12,132
8/31/94 14,606 0.35% 15,801 0.40% 12,181
9/30/94 14,497 -1.47% 15,568 0.27% 12,213
10/31/94 14,326 -1.78% 15,291 0.07% 12,222
11/30/94 14,133 -1.81% 15,014 0.13% 12,238
12/31/94 14,252 2.20% 15,345 0.00% 12,238
1/31/95 14,603 2.86% 15,784 0.40% 12,287
2/28/95 14,978 2.91% 16,243 0.40% 12,336
3/31/95 15,120 1.15% 16,430 0.33% 12,377
4/30/95 15,156 0.12% 16,449 0.33% 12,418
5/31/95 15,515 3.19% 16,974 0.20% 12,442
6/30/95 15,422 -0.87% 16,826 0.20% 12,467
7/31/95 15,524 0.95% 16,986 0.00% 12,467
8/31/95 15,670 1.27% 17,202 0.26% 12,500
9/30/95 15,773 0.63% 17,310 0.20% 12,525
10/31/95 15,987 1.45% 17,561 0.33% 12,566
11/30/95 16,224 1.66% 17,853 -0.07% 12,557
12/31/95 16,396 0.96% 18,024 -0.07% 12,548
1/31/96 16,478 0.76% 18,161 0.59% 12,622
2/29/96 16,404 -0.68% 18,038 0.32% 12,663
3/31/96 16,239 -1.28% 17,807 0.52% 12,729
4/30/96 16,209 -0.28% 17,757 0.39% 12,778
5/31/96 16,248 -0.04% 17,750 0.19% 12,803
6/30/96 16,421 1.09% 17,943 0.06% 12,810
7/31/96 16,528 0.91% 18,107 0.19% 12,835
8/31/96 16,565 -0.02% 18,103 0.19% 12,859
9/30/96 16,791 1.40% 18,357 0.32% 12,900
10/31/96 16,947 1.13% 18,564 0.32% 12,941
11/30/96 17,198 1.83% 18,904 0.19% 12,966
12/31/96 17,165 -0.42% 18,824 0.00% 12,966
1/31/97 17,179 0.19% 18,860 0.32% 13,008
2/28/97 17,338 0.92% 19,034 0.31% 13,048
3/31/97 17,159 -1.33% 18,780 0.25% 13,080
4/30/97 17,295 0.84% 18,938 0.12% 13,096
5/31/97 17,530 1.51% 19,224 -0.06% 13,088
6/30/97 17,667 1.07% 19,430 0.12% 13,104
7/31/97 18,075 2.77% 19,968 0.12% 13,120
8/31/97 17,988 -0.94% 19,780 0.19% 13,145
9/30/97 18,200 1.19% 20,016 0.25% 13,178
10/31/97 18,312 0.64% 20,144 0.25% 13,210
11/30/97 18,451 0.59% 20,263 -0.06% 13,203
12/31/97 18,676 1.46% 20,559 -0.12% 13,187
1/31/98 18,841 1.03% 20,770 0.19% 13,212
2/28/98 18,879 0.03% 20,777 0.19% 13,237
3/31/98 18,892 0.09% 20,795 0.19% 13,262
4/30/98 18,848 -0.45% 20,702 0.18% 13,286
5/31/98 19,116 1.58% 21,029 0.18% 13,310
6/30/98 19,195 0.39% 21,111 0.12% 13,326
7/31/98 19,229 0.25% 21,164 0.12% 13,342
8/31/98 19,500 1.55% 21,492 0.12% 13,358
9/30/98 19,773 1.25% 21,760 0.12% 13,374
10/31/98 19,780 0.00% 21,760 0.24% 13,406
11/30/98 19,895 0.35% 21,836 0.00% 13,406
12/31/98 19,887 0.25% 21,891 -0.06% 13,398
1/31/99 0.96% 20,078 1.19% 22,151 0.24% 13,430
2/28/99 -0.12% 20,054 -0.44% 22,054 0.12% 13,446
3/31/99 0.26% 20,108 0.14% 22,085 0.30% 13,486
Total Return 101.08% 120.85% 34.86%
</TABLE>
The following line graph compares the performance of the Franklin California
Tax-Free Income Fund's Class C shares to that of the Lehman Brothers Municipal
Bond Index, and to the Consumer Price Index based on a $10,000 investment from
5/1/95 to 3/31/99.
<TABLE>
<S> <C> <C> <C> <C> <C>
5/1/95 9,902 10,000 10,000
5/31/95 10,140 3.19% 10,319 0.20% 10,020
6/30/95 10,060 -0.87% 10,229 0.20% 10,040
7/31/95 10,121 0.95% 10,326 0.00% 10,040
8/31/95 10,211 1.27% 10,458 0.26% 10,066
9/30/95 10,286 0.63% 10,523 0.20% 10,086
10/31/95 10,406 1.45% 10,676 0.33% 10,120
11/30/95 10,569 1.66% 10,853 -0.07% 10,112
12/31/95 10,675 0.96% 10,957 -0.07% 10,105
1/31/96 10,723 0.76% 11,041 0.59% 10,165
2/29/96 10,668 -0.68% 10,966 0.32% 10,198
3/31/96 10,562 -1.28% 10,825 0.52% 10,251
4/30/96 10,537 -0.28% 10,795 0.39% 10,291
5/31/96 10,542 -0.04% 10,791 0.19% 10,310
6/30/96 10,649 1.09% 10,908 0.06% 10,316
7/31/96 10,728 0.91% 11,008 0.19% 10,336
8/31/96 10,747 -0.02% 11,005 0.19% 10,356
9/30/96 10,873 1.40% 11,159 0.32% 10,389
10/31/96 10,984 1.13% 11,286 0.32% 10,422
11/30/96 11,127 1.83% 11,492 0.19% 10,442
12/31/96 11,100 -0.42% 11,444 0.00% 10,442
1/31/97 11,104 0.19% 11,466 0.32% 10,475
2/28/97 11,202 0.92% 11,571 0.31% 10,508
3/31/97 11,096 -1.33% 11,417 0.25% 10,534
4/30/97 11,179 0.84% 11,513 0.12% 10,547
5/31/97 11,309 1.51% 11,687 -0.06% 10,540
6/30/97 11,393 1.07% 11,812 0.12% 10,553
7/31/97 11,667 2.77% 12,139 0.12% 10,565
8/31/97 11,590 -0.94% 12,025 0.19% 10,586
9/30/97 11,722 1.19% 12,168 0.25% 10,612
10/31/97 11,788 0.64% 12,246 0.25% 10,639
11/30/97 11,872 0.59% 12,318 -0.06% 10,632
12/31/97 12,027 1.46% 12,498 -0.12% 10,619
1/31/98 12,128 1.03% 12,627 0.19% 10,640
2/28/98 12,130 0.03% 12,631 0.19% 10,660
3/31/98 12,149 0.09% 12,642 0.19% 10,680
4/30/98 12,098 -0.45% 12,585 0.18% 10,699
5/31/98 12,264 1.58% 12,784 0.18% 10,719
6/30/98 12,309 0.39% 12,834 0.12% 10,731
7/31/98 12,342 0.25% 12,866 0.12% 10,744
8/31/98 12,510 1.55% 13,065 0.12% 10,757
9/30/98 12,679 1.25% 13,229 0.12% 10,770
10/31/98 12,679 0.00% 13,229 0.24% 10,796
11/30/98 12,729 0.35% 13,275 0.00% 10,796
12/31/98 12,719 0.25% 13,308 -0.06% 10,789
1/31/99 0.92% 12,836 1.19% 13,466 0.24% 10,815
2/28/99 -0.03% 12,832 -0.44% 13,407 0.12% 10,828
3/31/99 0.08% 12,841 0.14% 13,426 0.30% 10,861
Total Return 28.41% 34.26% 8.61%
</TABLE>
* Source: Standard and Poor's(R) Micropal.
Past performance is not predictive of future results.
14
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Highlights
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
---------------------------------------------------------------------------------
1999 1998 1997 1996 1995
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year .......... $ 7.35 $ 7.09 $ 7.18 $ 7.11 $ 7.12
---------------------------------------------------------------------------------
Income from investment operations:
Net investment income ...................... .39 .42 .43 .44 .45
Net realized and unrealized gains (losses) . .07 .27 (.04) .07 (.02)
---------------------------------------------------------------------------------
Total from investment operations ............ .46 .69 .39 .51 .43
---------------------------------------------------------------------------------
Less distributions from:
Net investment income ...................... (.39) (.42) (.43) (.44) (.44)
Net realized gains ......................... (.02) (.01) (.05) -- --
---------------------------------------------------------------------------------
Total distributions ......................... (.41) (.43) (.48) (.44) (.44)
---------------------------------------------------------------------------------
Net asset value, end of year ................ $ 7.40 $ 7.35 $ 7.09 $ 7.18 $ 7.11
=================================================================================
Total Return* ............................... 6.43% 10.10% 5.67% 7.40% 6.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $ 15,473,713 $ 14,767,307 $ 13,633,542 $ 13,312,666 $ 12,923,031
Ratio to average net assets:
Expenses ................................... .57% .56% .56% .55% .55%
Net investment income ...................... 5.21% 5.71% 6.07% 6.14% 6.36%
Portfolio turnover rate ..................... 18.66% 17.29% 11.96% 19.24% 14.07%
</TABLE>
* Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year. Prior to May
1, 1994, dividends from net investment income were reinvested at the offering
price.
15
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Highlights (continued)
<TABLE>
<CAPTION>
CLASS B
---------------
YEAR ENDED
MARCH 31,
---------------
1999(1)
---------------
<S> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year .......... $ 7.41
---------------
Income from investment operations:
Net investment income ...................... .10
Net realized and unrealized gains (losses) . (.03)
---------------
Total from investment operations ............ .07
---------------
Less distributions from:
Net investment income ...................... (.09)
Net realized gains ......................... --
---------------
Total distributions ......................... (.09)
---------------
Net asset value, end of year ................ $ 7.39
===============
Total Return * .............................. 0.88%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $ 43,674
Ratio to average net assets:
Expenses ................................... 1.14%**
Net investment income ...................... 4.59%**
Portfolio turnover rate ..................... 18.66%
</TABLE>
* Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year.
** Annualized.
(1) For the period January 1, 1999 (effective date) to March 31, 1999.
16
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Highlights (continued)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
YEAR ENDED MARCH 31,
-------------------------------------------------------------
1999 1998 1997 1996(2)
-------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year .......... $ 7.35 $ 7.09 $ 7.18 $ 7.09
-------------------------------------------------------------
Income from investment operations:
Net investment income ...................... .35 .38 .39 .38
Net realized and unrealized gains (losses) . .06 .27 (.04) .08
-------------------------------------------------------------
Total from investment operations ............ .41 .65 .35 .46
-------------------------------------------------------------
Less distributions from:
Net investment income ...................... (.35) (.38) (.39) (.37)
Net realized gains ......................... (.02) (.01) (.05) --
-------------------------------------------------------------
Total distributions ......................... (.37) (.39) (.44) (.37)
-------------------------------------------------------------
Net asset value, end of year ................ $ 7.39 $ 7.35 $ 7.09 $ 7.18
=============================================================
Total Return * .............................. 5.70% 9.49% 5.06% 6.62%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $ 464,535 $ 295,976 $ 138,509 $ 47,685
Ratio to average net assets:
Expenses ................................... 1.14% 1.14% 1.14% 1.14%**
Net investment income ...................... 4.61% 5.13% 5.47% 5.55%**
Portfolio turnover rate ..................... 18.66% 17.29% 11.96% 19.24%
</TABLE>
* Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year.
** Annualized.
(2) For the period May 1, 1995 (effective date) to March 31, 1996.
See notes to financial statements.
17
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS 99.9%
BONDS 93.2%
ABAG 1915 Act, Windemere Ranch AD, 6.40%, 9/02/27 ................................................. $ 11,060,000 $11,064,645
ABAG Finance Authority for Nonprofit Corps. COP,
6.75%, 8/01/20 ................................................................................. 3,955,000 4,436,284
6.125%, 3/01/21 ................................................................................ 4,245,000 4,620,046
ButteValley-Tulelake Rural Health, 6.65%, 10/01/22 ............................................. 5,395,000 5,744,110
Episcopal Home Foundation, Refunding, 5.125%, 7/01/13 .......................................... 6,000,000 6,058,260
Episcopal Home Foundation, Refunding, 5.125%, 7/01/18 .......................................... 16,975,000 16,799,648
Home for Jewish Parents, Insured, 5.625%, 5/15/22 .............................................. 5,000,000 5,201,050
Milestones Human Services Inc., Insured, 5.65%, 7/01/22 ........................................ 2,000,000 2,085,080
Miramonte Mental Health Services, Insured, 6.60%, 7/01/22 ...................................... 1,250,000 1,355,300
Peninsula Family YMCA, Series A, 6.80%, 10/01/11 ............................................... 2,325,000 2,554,687
Rehabilitation Mental Health Services Inc. Project, Insured, 6.50%, 6/01/12 .................... 2,000,000 2,171,940
Rehabilitation Mental Health Services Inc. Project, Insured, 6.55%, 6/01/22 .................... 2,370,000 2,562,563
Rhoda Haas Goldman Plaza, Insured, 5.125%, 5/15/23 ............................................. 5,000,000 4,935,000
United Way of Santa Clara County Project, 7.20%, 7/01/11 ....................................... 2,575,000 2,766,554
ABAG Finance Corp. COP, ABAG XXV, 6.80%, 8/01/12 .................................................. 4,500,000 4,696,110
ABAG Revenue,
Mello-Roos, Refunding and Improvement, Series A, FSA Insured, 5.125%, 9/01/21 .................. 4,760,000 4,781,563
Mello-Roos, Refunding and Improvement, Series A, FSA Insured, 5.20%, 9/01/27 ................... 4,140,000 4,170,139
Tax Allocation, RDA Pool, Series A, FSA Insured, 6.00%, 12/15/24 ............................... 6,000,000 6,581,520
Tax Allocation, RDA Pool, Series A4, FSA Insured, 5.875%, 12/15/25 ............................. 6,320,000 6,873,063
Tax Allocation, RDA Pool, Series A6, FSA Insured, 5.25%, 12/15/17 .............................. 1,200,000 1,241,616
Tax Allocation, RDA Pool, Series A6, FSA Insured, 5.375%, 12/15/25 ............................. 3,670,000 3,773,421
ABAG Water and Wastewater Revenue, Pooled Financing Program, Series A, FSA Insured, 5.30%, 10/01/21 5,450,000 5,591,537
Adelanto Improvement Agency Tax Allocation,
Adelanto Improvement Project, Series 1990, Pre-Refunded, 8.00%, 8/01/20 ........................ 12,680,000 13,486,955
Adelanto Improvement Project, Series 1990, Pre-Refunded, 8.25%, 8/01/20 ........................ 1,860,000 2,085,227
Refunding, Series 1985, ETM, 8.125%, 6/01/15 ................................................... 7,370,000 7,777,119
Agua Mansa Industrial Growth Association Special Tax, CFD No. 8, 8.25%, 9/01/17 ................... 16,090,000 16,982,512
Alameda Corridor Transportation Authority Revenue, Senior Lien, Series A, MBIA Insured,
4.75%, 10/01/25 ................................................................................ 39,600,000 37,763,748
5.00%, 10/01/29 ................................................................................ 43,210,000 42,742,900
Alameda County COP,
Alameda County Medical Center Project, MBIA Insured, 5.375%, 6/01/16 ........................... 4,175,000 4,368,428
Alameda County Medical Center Project, MBIA Insured, 5.375%, 6/01/17 ........................... 4,400,000 4,585,328
Alameda County Medical Center Project, MBIA Insured, 5.00%, 6/01/23 ............................ 19,195,000 18,876,555
Alameda County Medical Center Project, MBIA Insured, 5.30%, 6/01/26 ............................ 8,000,000 8,133,680
Alameda County Medical Center Project, MBIA Insured, 5.00%, 6/01/28 ............................ 8,925,000 8,749,892
Capital Projects, Series 1992, Pre-Refunded, 6.75%, 6/01/16 .................................... 10,500,000 11,681,145
MBIA Insured, 5.75%, 12/01/21 .................................................................. 3,720,000 4,005,101
Alameda-Contra Costa Transit COP, Refunding, 7.60%, 8/01/18 ....................................... 23,675,000 24,355,893
Alhambra RDA, Tax Allocation, Industrial Redevelopment Project, Refunding, 6.375%, 5/01/23 ........ 2,560,000 2,687,206
Alvord USD,
Series A, FGIC Insured, 5.375%, 8/01/27 ........................................................ 6,100,000 6,267,323
Series B, FGIC Insured, 5.50%, 8/01/27 ......................................................... 5,000,000 5,222,500
</TABLE>
18
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Anaheim PFA Revenue,
Electric Systems Distribution Facilities, MBIA Insured, 5.00%, 10/01/28 ....................... $ 10,765,000 $ 10,633,990
Electric Utilities, San Juan 4, Second Series, FGIC Insured, 5.75%, 10/01/22 .................. 24,940,000 26,427,172
Lease Revenue, Public Improvements Project, Series A, FSA Insured, 5.00%, 9/01/27 ............. 8,900,000 8,793,111
Lease Revenue, Public Improvements Project, Series A, FSA Insured, 5.00%, 3/01/37 ............. 146,010,000 143,564,333
Antioch Area Public Facilities Financing Agency Special Tax, CFD No. 1989-1, MBIA Insured,
5.50%, 8/01/22 ................................................................................ 4,870,000 5,100,059
Antioch Development Agency Tax Allocation, Project 1, Refunding, FGIC Insured, 6.40%, 9/01/17 .... 4,895,000 5,362,130
Antioch PFA, Reassessment Revenue,
Refunding, Series A, AMBAC Insured, 4.80%, 9/02/15 ............................................ 5,000,000 4,988,550
Subordinated Lien, 5.60%, 9/02/09 ............................................................. 1,305,000 1,298,827
Subordinated Lien, Series B, 5.10%, 9/02/04 ................................................... 2,015,000 2,009,257
Subordinated Lien, Series B, 5.30%, 9/02/06 ................................................... 2,225,000 2,216,812
Subordinated Lien, Series B, 5.50%, 9/02/08 ................................................... 1,240,000 1,234,532
Apple Valley Insured Health Facilities Revenue COP, 7.30%, 6/01/20 ............................... 3,500,000 3,695,895
Arcadia Hospital Revenue, Methodist Hospital of Southern California,
6.50%, 11/15/12 ............................................................................... 2,295,000 2,481,262
6.625%, 11/15/22 .............................................................................. 3,750,000 4,060,650
Azusa PFA Revenue,
Local Agency, Series A, Pre-Refunded, 7.75%, 8/01/20 .......................................... 10,225,000 11,023,777
Water Systems Acquisition Project, Refunding, Series A, FGIC Insured, 5.50%, 7/01/20 .......... 5,200,000 5,410,808
Bakersfield COP, Convention Center Expansion Project, Refunding, MBIA Insured, 5.875%, 4/01/22 ... 7,270,000 7,980,206
Bakersfield Hospital Revenue,
Adventist Health Systems West, Refunding, MBIA Insured, 5.50%, 3/01/19 ........................ 6,085,000 6,361,807
Bakersfield Memorial Hospital, Series A, Pre-Refunded, 6.375%, 1/01/12 ........................ 2,205,000 2,409,007
Bakersfield Memorial Hospital, Series A, Pre-Refunded, 6.50%, 1/01/22 ......................... 2,750,000 3,009,518
Bakersfield PFA Revenue, Series A, 6.10%, 9/15/10 ................................................ 11,070,000 11,744,938
Baldwin Park PFA Revenue, Tax Allocation,
Refunding, Series A, 7.10%, 9/01/24 ........................................................... 2,000,000 2,221,180
Series A, 7.75%, 8/01/19 ...................................................................... 5,265,000 5,431,005
Series B, 7.75%, 8/01/21 ...................................................................... 5,795,000 5,967,633
Belmont - Redwood Shores School District, Series A, 5.50%, 9/01/22 ............................... 6,500,000 6,863,415
Belmont RDA, Tax Allocation, Los Costanos Community Development, Series A,
6.70%, 8/01/14 ................................................................................ 1,235,000 1,394,834
6.25%, 8/01/17 ................................................................................ 2,080,000 2,207,109
6.80%, 8/01/23 ................................................................................ 2,310,000 2,598,635
Berkeley Hospital Revenue, Alta Bates Hospital,
Series B, Pre-Refunded, 7.65%, 12/01/15 ....................................................... 6,135,000 6,493,345
Series C, Pre-Refunded, 7.60%, 12/01/15 ....................................................... 2,850,000 3,067,170
Beverly Hills COP, Civic Center Improvement Project, Refunding, Series 1989, Pre-Refunded,
7.00%, 6/01/15 ................................................................................. 2,580,000 2,647,183
Beverly Hills PFA Lease Revenue, Capital Improvements Project, Series A, 5.00%, 6/01/23 .......... 8,245,000 8,221,502
Brea and Olinda USD, COP,
High School Refinancing Program, Refunding, Series A, FSA Insured, 6.25%, 8/01/18 ............. 12,645,000 13,638,012
High School Refinancing Program, Refunding, Series B, 7.00%, 8/01/18 .......................... 9,120,000 9,860,726
Series 1989, Pre-Refunded, 7.85%, 8/01/09 ..................................................... 2,025,000 2,096,584
Series 1989, Pre-Refunded, 7.90%, 8/01/18 ..................................................... 11,835,000 12,255,261
</TABLE>
19
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Brea PFA Revenue, Tax Allocation, Redevelopment Project, Series A, MBIA Insured,
7.00%, 8/01/15 ..................................................................................... $ 1,720,000 $ 1,877,741
6.75%, 8/01/22 ..................................................................................... 4,395,000 4,754,335
7.00%, 8/01/23 ..................................................................................... 6,210,000 6,757,660
Brea PFA Water Revenue, Series B, FGIC Insured, Pre-Refunded, 6.25%, 7/01/21 .......................... 11,070,000 11,584,312
Brea RDA, Tax Allocation, Redevelopment Project, Refunding, MBIA Insured,
6.125%, 8/01/13 .................................................................................... 12,845,000 14,165,980
5.75%, 8/01/23 ..................................................................................... 18,320,000 19,458,771
Brentwood 1915 Act, Infrastructure Financing, Reassessment, Series A, FSA Insured, 5.80%, 9/02/17 ..... 5,300,000 5,798,677
Brentwood RDA, Tax Allocation, Brentwood Redevelopment Project, Series A, 7.70%, 11/01/08 ............. 2,000,000 2,098,100
Brisbane PFA Revenue, 8.00%, 9/02/15 .................................................................. 5,700,000 5,982,720
Buena Park CRDA, Tax Allocation, Central Business District Project, Refunding, Series A, 7.10%, 9/01/14 7,000,000 7,639,450
Burbank Parking Authority, Special Tax, CFD No. 1, 8.375%, 10/01/06 ................................... 1,375,000 1,422,080
Burbank RDA, Tax Allocation,
City Center Redevelopment Project, Refunding, Series A, FSA Insured, 5.50%, 12/01/23 ............... 5,000,000 5,220,100
Refunding, Series A, 6.00%, 12/01/23 ............................................................... 6,500,000 6,936,800
Burton Elementary School District COP, Loan Acquisition, Capital Appreciation, Series A, FSA Insured,
6.60%, 9/01/27 ....................................................................................... 830,000 871,467
Calexico CRDA Revenue, Tax Allocation, Merged Central Business and Residential, Refunding, FSA Insured,
5.80%, 8/01/24 ....................................................................................... 5,840,000 6,238,113
Calexico USD, COP, Financing Project, Series 1992, Pre-Refunded,
7.25%, 9/01/08 ..................................................................................... 745,000 772,572
7.375%, 9/01/17 .................................................................................... 3,185,000 3,304,438
California Counties Lease Financing Authority COP, CSAC Financing Corp., Amador County Project, ETM,
7.70%, 10/01/09 ...................................................................................... 2,565,000 3,112,653
California Educational Facilities Authority Revenue,
Chapman College, 7.30%, 1/01/02 .................................................................... 700,000 750,400
Chapman College, Pre-Refunded, 7.30%, 1/01/02 ...................................................... 385,000 417,340
Chapman College, Pre-Refunded, 7.50%, 1/01/18 ...................................................... 3,000,000 3,264,690
Chapman University, Refunding, Connie Lee Insured, 5.125%, 10/01/26 ................................ 10,000,000 10,033,500
Loyola Marymount University, Series B, Pre-Refunded, 6.60%, 10/01/22 ............................... 1,100,000 1,228,557
Occidental College, Refunding, MBIA Insured, 5.625%, 10/01/17 ...................................... 5,815,000 6,291,307
Occidental College, Refunding, MBIA Insured, 5.70%, 10/01/27 ....................................... 16,565,000 17,810,357
Santa Clara University, MBIA Insured, 5.75%, 9/01/26 ............................................... 26,815,000 28,870,370
Santa Clara University, Refunding, MBIA Insured, 5.75%, 9/01/21 .................................... 14,550,000 15,699,596
St. Mary's College of California Project, Pre-Refunded, 7.50%, 10/01/20 ............................ 2,100,000 2,271,696
Stanford University, Refunding, Series O, 5.125%, 1/01/31 .......................................... 22,000,000 22,123,860
Stanford University, Series N, 5.35%, 6/01/27 ...................................................... 21,250,000 21,845,213
Student Loan Program, Series A, MBIA Insured, 6.00%, 3/01/16 ....................................... 6,000,000 6,372,300
California Health Facilities Financing Authority Revenue,
Adventist Health Systems West, Series B, MBIA Insured, 6.25%, 3/01/21 .............................. 2,930,000 3,101,053
AIDS Health Care Foundation, Refunding, Series C, California Mortgage Insured, 6.25%, 9/01/17 ...... 1,750,000 1,882,528
AIDS Hospice Foundation, CHFCLP Insured, Pre-Refunded, 7.15%, 1/01/15 .............................. 830,000 871,077
Association for Retarded Citizens of San Diego, CHFCLP Insured, Pre-Refunded, 7.00%, 5/01/21 ....... 3,650,000 3,921,159
California Autism Foundation Inc., Series A, CHFCLP Insured, 6.25%, 11/01/20 ....................... 3,560,000 3,808,061
Catholic Healthcare West, Refunding, Series A, AMBAC Insured, 5.75%, 7/01/15 ....................... 13,000,000 14,268,410
Catholic Healthcare West, Refunding, Series A, MBIA Insured, 6.00%, 7/01/25 ........................ 1,000,000 1,110,780
</TABLE>
20
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California Health Facilities Financing Authority Revenue, (cont.)
Catholic Healthcare West, Series A, 5.00%, 7/01/18 ................................... $ 40,000,000 $ 39,126,400
Catholic Healthcare West, Series A, 5.00%, 7/01/28 ................................... 140,630,000 136,415,319
Catholic Healthcare West, Series A, MBIA Insured, 5.00%, 7/01/17 ..................... 5,000,000 5,027,500
Catholic Healthcare West, Series A, MBIA Insured, 5.125%, 7/01/24 .................... 11,500,000 11,503,565
Catholic Healthcare West, Series A, Refunding, MBIA Insured, 6.00%, 7/01/17 .......... 7,300,000 8,132,784
Cedarknoll Inc., Series B, California Mortgage Insured, Pre-Refunded, 7.50%, 8/01/20 . 1,575,000 1,691,928
Cedars-Sinai Medical Center, Series A, MBIA Insured, 5.125%, 8/01/17 ................. 8,355,000 8,518,842
Cedars-Sinai Medical Center, Series A, MBIA Insured, 5.125%, 8/01/27 ................. 15,600,000 15,587,208
Cedars-Sinai Medical Center, Series B, MBIA Insured, 5.125%, 8/01/17 ................. 6,105,000 6,224,719
Cedars-Sinai Medical Center, Series B, MBIA Insured, 5.25%, 8/01/27 .................. 52,500,000 53,206,125
Clinicas Del Camino, Series A, CHFCLP Insured, 6.55%, 5/01/25 ........................ 4,500,000 5,007,960
Community Provider, Pooled Loan Program, Series A, Pre-Refunded, 7.35%, 6/01/20 ...... 730,000 778,049
County Program, Series B, 7.20%, 1/01/12 ............................................. 2,425,000 2,442,921
El Proyecto, Series A, CHFCLP Insured, 5.50%, 12/01/22 ............................... 3,350,000 3,435,492
Enloe Health System, Series A, FSA Insured, 5.00%, 11/15/18 .......................... 5,000,000 4,987,350
Enloe Health System, Series A, FSA Insured, 5.00%, 11/15/28 .......................... 25,390,000 24,888,801
Feedback Foundation Inc., Series A, CHFCLP Insured, 6.50%, 12/01/22 .................. 4,240,000 4,592,980
Hospital of the Good Samaritan, Refunding, 6.90%, 9/01/07 ............................ 13,920,000 14,918,899
Hospital of the Good Samaritan, Refunding, 7.00%, 9/01/21 ............................ 71,050,000 75,437,338
Kaiser Permanente, Series A, 5.40%, 5/01/28 .......................................... 46,000,000 46,188,140
Kaiser Permanente, Series A, FSA Insured, 5.00%, 6/01/20 ............................. 32,295,000 31,919,086
Kaiser Permanente, Series A, FSA Insured, 5.00%, 6/01/24 ............................. 136,775,000 134,459,399
Kaiser Permanente, Series A, Pre-Refunded, 7.00%, 10/01/18 ........................... 5,000,000 5,196,800
Kaiser Permanente, Series A, Pre-Refunded, 6.75%, 10/01/19 ........................... 8,870,000 9,208,479
Kaiser Permanente, Series A, Pre-Refunded, 6.50%, 12/01/20 ........................... 11,000,000 11,788,040
Kaiser Permanente, Series B, 5.25%, 10/01/16 ......................................... 7,515,000 7,579,479
Kaiser Permanente, Series B, 5.00%, 10/01/18 ......................................... 16,425,000 16,064,800
Kaiser Permanente, Series B, 5.00%, 10/01/20 ......................................... 36,520,000 35,535,056
Kaiser Permanente, Series B, 5.40%, 5/01/28 .......................................... 80,000,000 80,327,200
Lodi Memorial Hospital Association, Series A, CHFCLP Insured, 7.70%, 9/01/10 ......... 4,000,000 4,285,080
Marshall Hospital, Insured, Series A, 5.30%, 11/01/28 ................................ 5,500,000 5,529,590
Marshall Hospital, Series A, CHFCLP Insured, Pre-Refunded, 6.625%, 11/01/22 .......... 3,900,000 4,360,395
Mills-Peninsula Health, Refunding, Series A, Connie Lee Insured, 5.75%, 1/15/15 ...... 11,500,000 12,388,720
Mills-Peninsula Health, Series B, Connie Lee Insured, 5.75%, 1/15/15 ................. 5,665,000 6,102,791
Northern California Presbyterian, 5.40%, 7/01/28 ..................................... 6,340,000 6,348,559
On Lok Senior Health Services, Series A, CHFCLP Insured, 6.40%, 12/01/12 ............. 2,000,000 2,184,640
On Lok Senior Health Services, Series A, CHFCLP Insured, 6.50%, 12/01/22 ............. 7,525,000 8,151,456
Pacific Presbyterian Medical Center, Series C, Pre-Refunded, 7.60%, 6/01/15 .......... 16,335,000 16,713,155
Pomona Valley Hospital Medical Center, Pre-Refunded, 7.375%, 1/01/14 ................. 4,000,000 4,204,480
Pomona Valley Hospital, Refunding, Series A, MBIA Insured, 5.75%, 7/01/15 ............ 4,200,000 4,553,220
Pomona Valley Hospital, Refunding, Series A, MBIA Insured, 5.625%, 7/01/19 ........... 8,500,000 9,018,840
San Diego Hospital Association, Refunding, Series A, MBIA Insured, 6.20%, 8/01/20 .... 8,250,000 8,928,893
San Diego Hospital Association, Series A, Pre-Refunded, 6.95%, 10/01/21 .............. 21,145,000 23,308,768
Scripps Memorial Hospital, Series A, MBIA Insured, 6.375%, 10/01/22 .................. 9,725,000 10,602,390
Small Facilities Loan, Health Facilities, Refunding, Series B, Insured, 7.50%, 4/01/22 5,000,000 5,882,100
Small Facilities Loan, Health Facilities, Series A, CHFCLP Insured, 6.75%, 3/01/20 ... 5,500,000 5,931,145
</TABLE>
21
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California Health Facilities Financing Authority Revenue, (cont.)
South Coast Medical Center, CHFCLP Insured, Pre-Refunded, 7.25%, 7/01/15 ...... $ 3,000,000 $ 3,203,580
Southern California, Series A, CHFCLP Insured, 5.50%, 12/01/22 ................ 3,070,000 3,148,346
St. Francis Medical Center, Refunding, Series H, AMBAC Insured, 6.35%, 10/01/23 7,000,000 7,860,020
St. Paul's Episcopal Home, CHFCLP Insured, 6.50%, 9/01/14 ..................... 2,595,000 2,811,760
Sutter Health, Refunding, Series A, MBIA Insured, 5.875%, 8/15/16 ............. 5,750,000 6,311,718
Sutter Health, Series A, FSA Insured, 5.125%, 8/15/17 ......................... 1,000,000 1,019,670
Sutter Health, Series A, FSA Insured, 5.25%, 8/15/27 .......................... 5,300,000 5,371,550
Sutter Health, Series A, FSA Insured, 5.00%, 8/15/37 .......................... 55,500,000 54,474,360
Sutter Health, Series A, MBIA Insured, 5.00%, 8/15/38 ......................... 31,360,000 30,775,450
The Help Group, CHFCLP Insured, 5.40%, 8/01/22 ................................ 7,420,000 7,560,535
UCSF-Stanford Health Care, Refunding, Series B, 5.00%, 11/15/28 ............... 30,000,000 29,632,800
UCSF-Stanford Health Care, Refunding, Series B, 5.00%, 11/15/31 ............... 26,920,000 26,450,784
UCSF-Stanford Health Care, Series A, FSA Insured, 5.00%, 11/15/28 ............. 34,005,000 33,588,779
UCSF-Stanford Health Care, Series A, Refunding, FSA Insured, 5.00%, 11/15/31 .. 2,150,000 2,112,526
Valleycare Hospital Corp., Refunding, 5.50%, 5/01/20 .......................... 8,795,000 9,076,000
Walden House, State Guaranteed, 6.85%, 3/01/22 ................................ 3,225,000 3,484,677
California HFA, SFM Purchase,
Class I, Series A-1, 6.05%, 8/01/26 ........................................... 13,935,000 14,747,689
Refunding, Series A-2, 6.45%, 8/01/25 ......................................... 11,250,000 11,863,463
California HFAR,
Cedarknoll Health Facilities, Series B, CHFCLP Insured, 7.50%, 8/01/20 ........ 4,600,000 4,715,092
Home Mortgage, Series A, 7.75%, 8/01/17 ....................................... 1,445,000 1,483,350
Home Mortgage, Series A, 6.55%, 8/01/26 ....................................... 6,975,000 7,422,656
Home Mortgage, Series A, 7.70%, 8/01/30 ....................................... 10,575,000 10,893,731
Home Mortgage, Series B, 7.90%, 8/01/09 ....................................... 1,390,000 1,402,663
Home Mortgage, Series B, 8.00%, 8/01/29 ....................................... 24,765,000 25,387,592
Home Mortgage, Series C, 8.30%, 8/01/19 ....................................... 1,355,000 1,372,805
Home Mortgage, Series C, 7.60%, 8/01/30 ....................................... 33,980,000 35,097,942
Home Mortgage, Series D, 7.75%, 8/01/10 ....................................... 1,235,000 1,280,213
Home Mortgage, Series D, 7.25%, 8/01/17 ....................................... 955,000 998,949
Home Mortgage, Series D, 7.50%, 8/01/29 ....................................... 16,030,000 16,430,910
Home Mortgage, Series D, MBIA Insured, 6.15%, 8/01/28 ......................... 5,250,000 5,523,945
Home Mortgage, Series E, 7.65%, 8/01/23 ....................................... 12,900,000 13,224,048
Home Mortgage, Series E, 6.70%, 8/01/25 ....................................... 8,460,000 8,981,390
Home Mortgage, Series E, 6.375%, 8/01/27 ...................................... 14,090,000 14,946,672
Home Mortgage, Series E, 7.65%, 8/01/29 ....................................... 4,470,000 4,582,286
Home Mortgage, Series E, AMBAC Insured, 6.10%, 8/01/29 ........................ 22,275,000 23,332,617
Home Mortgage, Series E, MBIA Insured, 6.15%, 8/01/25 ......................... 17,500,000 18,334,750
Home Mortgage, Series F, 6.75%, 8/01/11 ....................................... 865,000 912,523
Home Mortgage, Series F, 7.875%, 8/01/19 ...................................... 1,380,000 1,398,147
Home Mortgage, Series F-1, 6.875%, 8/01/15 .................................... 3,350,000 3,592,306
Home Mortgage, Series F-1, 7.00%, 8/01/26 ..................................... 18,170,000 19,253,841
Home Mortgage, Series G, 8.15%, 8/01/19 ....................................... 8,095,000 8,202,178
Home Mortgage, Series G, 7.55%, 8/01/23 ....................................... 5,220,000 5,377,279
Home Mortgage, Series G, 7.05%, 8/01/27 ....................................... 3,570,000 3,732,435
Home Mortgage, Series H, 6.25%, 8/01/27 ....................................... 20,165,000 21,344,854
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California HFAR, (cont.)
Home Mortgage, Series I, MBIA Insured, 5.75%, 2/01/29 ............................... $ 8,100,000 $ 8,405,775
Home Mortgage, Series J, MBIA Insured, 5.40%, 8/01/28 ............................... 6,345,000 6,397,981
Home Mortgage, Series J, MBIA Insured, 5.55%, 8/01/28 ............................... 10,000,000 10,150,400
Home Mortgage, Series M, MBIA Insured, 5.60%, 8/01/29 ............................... 21,150,000 21,578,288
Home Mortgage, Series N, 6.375%, 2/01/27 ............................................ 7,675,000 8,124,448
Home Mortgage, Series N, FSA Insured, 5.15%, 8/01/18 ................................ 6,000,000 5,970,480
Home Mortgage, Series Q, MBIA Insured, 5.85%, 8/01/16 ............................... 5,000,000 5,244,400
Home Mortgage, Series R, MBIA Insured, 6.15%, 8/01/27 ............................... 9,000,000 9,469,620
Home Mortgage, SF, Series A, 10.25%, 2/01/14 ........................................ 465,000 465,651
Home Mortgage, SF, Series B, 10.625%, 2/01/14 ....................................... 170,000 170,231
Housing Revenue, Series A, MBIA Insured, 7.65%, 8/01/24 ............................. 8,670,000 8,884,149
Housing Revenue, Series E, MBIA Insured, 6.625%, 8/01/14 ............................ 4,365,000 4,690,323
Housing Revenue, Series E, MBIA Insured, 6.75%, 8/01/26 ............................. 11,855,000 12,707,019
Housing Revenue, Series F, MBIA Insured, 6.90%, 8/01/26 ............................. 11,345,000 12,197,010
MFHR II, Series A, AMBAC Insured, 6.25%, 2/01/37 .................................... 5,000,000 5,348,900
MFHR III, Series B, MBIA Insured, 5.50%, 8/01/39 .................................... 15,000,000 15,238,950
Multi-Unit Rental Housing, Series A, 6.875%, 2/01/22 ................................ 2,465,000 2,487,851
Series B, MBIA Insured, 8.625%, 8/01/15 ............................................. 1,975,000 2,027,733
Series B-1, Class 1, 5.65%, 8/01/28 ................................................. 13,190,000 13,468,045
SFM, Series C-2, Class 1, 5.65%, 2/01/25 ............................................ 14,395,000 14,698,447
SFM, Series C-4, Class 1, 5.65%, 8/01/16 ............................................ 4,935,000 5,130,229
California Mobilehome Park Financing Authority Revenue, Series A, FSA Insured,
4.50%, 10/01/99 ..................................................................... 75,000 75,539
4.65%, 10/01/00 ..................................................................... 75,000 76,260
4.80%, 10/01/01 ..................................................................... 80,000 82,033
4.95%, 10/01/02 ..................................................................... 85,000 88,163
5.05%, 10/01/03 ..................................................................... 90,000 93,958
5.15%, 10/01/04 ..................................................................... 95,000 99,239
5.25%, 10/01/05 ..................................................................... 100,000 104,464
6.25%, 10/01/25 ..................................................................... 3,900,000 4,061,304
California PCFA,
PCR, Pacific Gas and Electric Co., Series A, 6.625%, 6/01/09 ........................ 1,750,000 1,891,155
PCR, Southern California Edison Co., Refunding, 6.90%, 12/01/17 ..................... 2,510,000 2,723,877
PCR, Southern California Edison Co., Series B, 6.40%, 12/01/24 ...................... 29,000,000 31,656,690
PCR, Southern California Edison Co., Series B, MBIA Insured, 6.40%, 12/01/24 ........ 12,120,000 13,277,945
Solid Waste Disposal Revenue, Keller Canyon Landfill Co. Project, 6.875%, 11/01/27 .. 17,205,000 18,153,168
California Public Capital Improvement Financing Authority Revenue, Pooled Projects,
Joint Powers Agency, Series E, 8.375%, 3/01/03 ...................................... 16,970,000 17,227,605
Series A, 8.40%, 3/01/08 ............................................................ 52,375,000 53,975,056
Series A, 8.50%, 3/01/18 ............................................................ 121,300,000 125,053,022
California Resources Efficiency Financing Authority COP, Capital Improvement Program,
Refunding, AMBAC Insured,
5.625%, 4/01/22 ..................................................................... 10,365,000 11,028,567
5.75%, 4/01/27 ...................................................................... 7,885,000 8,486,704
California Rural Home Mortgage Finance Authority SFMR, 7.00%, 9/01/29 .................. 4,715,000 5,270,003
California Special Districts Association Finance Corp. COP, Series F, 8.10%, 9/01/10 ... 150,000 153,083
</TABLE>
23
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
California Special Districts Lease Financing Program COP,
Series C, 7.90%, 4/01/14 ......................................... $ 135,000 $ 138,495
Series E, 7.70%, 12/01/09 ........................................ 205,000 208,985
Series E, 7.75%, 12/01/19 ........................................ 305,000 310,871
California State Department of Transportation COP, East Bay
State Building, Series A, Pre-Refunded, 6.50%, 3/01/16 ........... 2,000,000 2,150,740
California State Department of Veteran Affairs Home Purchase Revenue,
Refunding, Series A, 5.40%, 12/01/28 ............................. 9,580,000 9,892,883
Refunding, Series B, 5.50%, 12/01/18 ............................. 2,500,000 2,583,300
(a)Series A, Chase Revenue, Series A, 5.20%, 12/01/27 ............... 39,490,000 39,590,305
(a)Series B, 5.20%, 12/01/28 ........................................ 63,875,000 64,037,243
California State Department of Water Resources Central Valley
Project Water System Revenue,
Refunding, Series Q, MBIA Insured, 5.375%, 12/01/27 .............. 18,000,000 18,469,080
Series J-1, 6.00%, 12/01/20 ...................................... 9,580,000 10,125,294
Series J-2, 6.00%, 12/01/20 ...................................... 22,865,000 24,166,476
Series J-3, 6.00%, 12/01/20 ...................................... 18,945,000 20,023,349
Series L, 5.75%, 12/01/19 ........................................ 22,240,000 23,546,378
Series L, 5.50%, 12/01/23 ........................................ 52,395,000 54,241,400
Series L, 5.875%, 12/01/25 ....................................... 40,070,000 42,899,343
Series O, 5.00%, 12/01/22 ........................................ 5,500,000 5,454,405
Series O, 4.75%, 12/01/25 ........................................ 16,000,000 15,255,040
Series O, MBIA Insured, 4.75%, 12/01/29 .......................... 9,000,000 8,553,780
Series S, 5.00%, 12/01/29 ........................................ 20,790,000 20,531,580
Series U, 5.00%, 12/01/29 ........................................ 66,975,000 66,142,501
California State Department of Water Resources Central
Valley Project Water Systems Revenue, Refunding,
Series S, 5.00%, 12/01/22 ........................................ 11,855,000 11,756,722
California State GO,
5.75%, 3/01/19 ................................................... 700,000 751,772
5.50%, 3/01/20 ................................................... 5,500,000 5,792,985
5.25%, 10/01/20 .................................................. 11,170,000 11,368,826
5.75%, 3/01/23 ................................................... 645,000 691,343
5.90%, 4/01/23 ................................................... 3,300,000 3,557,301
6.00%, 3/01/24 ................................................... 570,000 621,123
6.00%, 5/01/24 ................................................... 2,565,000 2,800,518
5.00%, 10/01/27 .................................................. 78,000,000 77,065,560
5.125%, 10/01/27 ................................................. 39,835,000 40,117,430
(a)4.75%, 12/01/28 .................................................. 23,500,000 22,351,320
AMBAC Insured, 5.90%, 3/01/25 .................................... 210,000 226,357
AMBAC Insured, Pre-Refunded, 5.90%, 3/01/25 ...................... 10,000,000 11,192,000
FGIC Insured, 5.75%, 11/01/17 .................................... 2,100,000 2,246,622
FGIC Insured, 6.00%, 8/01/19 ..................................... 905,000 992,740
FGIC Insured, 5.625%, 10/01/21 ................................... 10,000,000 10,616,100
FGIC Insured, 5.625%, 10/01/26 ................................... 52,500,000 55,632,675
FGIC Insured, Pre-Refunded, 6.00%, 8/01/19 ....................... 4,095,000 4,617,399
MBIA Insured, 6.00%, 10/01/21 .................................... 160,000 172,016
MBIA Insured, 6.00%, 8/01/24 ..................................... 990,000 1,081,516
MBIA Insured, Pre-Refunded, 6.00%, 8/01/24 ....................... 25,500,000 28,753,035
</TABLE>
24
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
California State GO, (cont.)
Pre-Refunded, 6.00%, 3/01/24 ........................................................... $ 6,430,000 $ 7,185,525
Pre-Refunded, 6.00%, 5/01/24 ........................................................... 27,725,000 31,066,417
Refunding, 5.625%, 9/01/24 ............................................................. 10,650,000 11,286,977
Refunding, FGIC Insured, 4.75%, 2/01/24 ................................................ 6,000,000 5,738,340
Refunding, FGIC Insured, 5.00%, 2/01/25 ................................................ 24,105,000 23,827,551
Refunding, FGIC Insured, 5.375%, 6/01/26 ............................................... 7,500,000 7,687,425
Refunding, FGIC Insured, 4.75%, 2/01/29 ................................................ 61,360,000 58,353,360
Various Purposes, 5.50%, 4/01/15 ....................................................... 21,920,000 23,227,528
Various Purposes, FSA Insured, 5.50%, 4/01/19 .......................................... 6,500,000 6,830,785
Veterans Bonds, Series BD, BE, and BF, 6.40%, 2/01/22 .................................. 29,000,000 29,519,390
Veterans Bonds, Series BD, BE, and BF, 6.55%, 2/01/25 .................................. 21,710,000 22,107,727
Veterans Bonds, Series BD, BE, and BF, AMBAC Insured, 6.20%, 2/01/16 ................... 11,500,000 11,702,975
Veterans Bonds, Series BD, BE, and BF, AMBAC Insured, 6.375%, 2/01/27 .................. 45,000,000 45,792,450
Veterans Bonds, Series BH, 5.50%, 12/01/18 ............................................. 44,250,000 45,561,570
Veterans Bonds, Series BH, 5.60%, 12/01/32 ............................................. 44,235,000 45,416,075
Veterans Bonds, Series BH, FSA Insured, 5.40%, 12/01/16 ................................ 8,250,000 8,444,123
Veterans Bonds, Series BH, FSA Insured, 5.50%, 12/01/24 ................................ 22,265,000 22,609,885
Veterans Bonds, Series BM, 5.45%, 12/01/25 ............................................. 36,635,000 37,544,281
Veterans Bonds, Series BN, 5.375%, 12/01/21 ............................................ 24,870,000 25,470,113
Veterans Bonds, Series BN, 5.45%, 12/01/28 ............................................. 21,575,000 22,142,638
California State HFAR, Home Mortgage, Series L, MBIA Insured, 6.40%, 8/01/27 .............. 16,260,000 17,229,259
California State Local Government Finance Authority Revenue, Marin Valley,
Series A, FSA Insured, 5.85%, 10/01/27 ................................................... 6,735,000 7,372,602
California State Public Works Board Lease Revenue,
California Science Center, Series A, 5.25%, 10/01/22 ...................................... 8,645,000 8,777,355
California State University, Various Projects, Series A, 6.30%, 10/01/04 ............... 5,250,000 5,790,435
California State University, Various Projects, Series A, Pre-Refunded, 6.375%, 10/01/05 6,815,000 7,561,583
California State University, Various Projects, Series A, Pre-Refunded, 6.50%, 10/01/06 . 10,695,000 11,891,450
Department of Corrections, California State Prison at Coalinga, Series B,
MBIA Insured, 5.375%, 12/01/19 ....................................................... 15,250,000 15,778,413
Department of Corrections, Corcoran II Facility, Series A, AMBAC Insured, 5.25%, 1/01/21 17,405,000 17,649,888
Department of Corrections, Refunding, Series B, MBIA Insured, 5.00%, 9/01/21 ........... 53,980,000 53,617,794
Department of Justice Building, Series A, FSA Insured, 5.625%, 5/01/20 ................. 5,000,000 5,268,450
Department of Justice Building, Series A, FSA Insured, Pre-Refunded, 5.80%, 5/01/15 .... 5,500,000 6,141,190
Southern California Veterans Home, Series A, Pre-Refunded, 6.375%, 10/01/08 ............ 3,000,000 3,439,380
Southern California Veterans Home, Series A, Pre-Refunded, 6.50%, 10/01/14 ............. 3,750,000 4,312,163
Trustees California State University, Refunding, Series A, 5.00%, 10/01/19 ............. 8,500,000 8,435,315
University of California, Various Projects, Refunding, Series A, 5.50%, 6/01/21 ........ 14,000,000 14,553,560
University of California, Various Projects, Refunding, Series A, 5.00%, 6/01/23 ........ 23,175,000 22,949,044
University of California, Various Projects, Series A, Pre-Refunded, 6.375%, 10/01/14 ... 11,480,000 13,161,361
University of California, Various Projects, Series A, Pre-Refunded, 6.375%, 11/01/14 ... 23,130,000 26,556,941
University of California, Various Projects, Series A, Pre-Refunded, 6.375%, 10/01/19 ... 2,150,000 2,464,889
University of California, Various Projects, Series B, 5.50%, 6/01/19 ................... 13,000,000 13,542,230
University of California, Various Projects, Series B, Pre-Refunded, 6.625%, 12/01/14 ... 7,415,000 8,599,250
University of California, Various Projects, Series C, 5.125%, 9/01/22 .................. 20,000,000 20,103,200
Various California Community Colleges, Refunding, Series A, 5.90%, 4/01/17 ............. 8,320,000 9,134,112
Various Community College Projects, Series A, 5.625%, 12/01/18 ......................... 7,535,000 7,941,965
</TABLE>
25
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
California State University Headquarters Building Authority Lease Revenue,
Series B, MBIA Insured, 5.25%, 9/01/22 ...................................................... $ 6,850,000 $ 6,953,915
California Statewide CDA Revenue COP,
Catholic Healthcare West, MBIA Insured, 5.50%, 7/01/23 ....................................... 11,240,000 11,707,921
Cedars-Sinai Medical Center, 6.75%, 8/01/22 ............................................... 23,530,000 24,174,251
CHFCLP Insured Health Facilities, AIDS Project, Series A, 6.25%, 8/01/22 .................. 2,590,000 2,767,829
CHFCLP Insured Health Facilities, Children's Campus, 6.375%, 9/01/12 ...................... 2,765,000 3,000,799
CHFCLP Insured Health Facilities, Children's Campus, 6.50%, 9/01/22 ....................... 3,000,000 3,237,780
CHFCLP Insured Health Facilities, Eskaton Properties, 6.75%, 5/01/21 ...................... 9,600,000 10,379,904
CHFCLP Insured Health Facilities, Unihealth, Series A, AMBAC Insured, ETM, 5.75%, 10/01/25 36,000,000 38,353,680
CHFCLP Insured Hospital, Triad Health Care, Refunding, ETM, 6.25%, 8/01/06 ................ 2,000,000 2,204,920
CHFCLP Insured Hospital, Triad Health Care, Refunding, Pre-Refunded, 6.50%, 8/01/22 ....... 80,230,000 88,868,364
CHFCLP Insured Retirement Housing Foundation, Refunding, 6.625%, 4/15/12 .................. 7,000,000 7,738,010
CHFCLP Insured Retirement Housing Foundation, Refunding, 6.75%, 4/15/22 ................... 16,000,000 17,743,840
CHFCLP Insured, 5.90%, 8/01/21 ............................................................ 4,000,000 4,303,840
CHFCLP Insured, Families First Inc., 7.25%, 12/01/22 ...................................... 5,120,000 5,920,154
Gemological Institute, Connie Lee Insured, 6.00%, 5/01/15 ................................. 5,365,000 5,837,978
Gemological Institute, Connie Lee Insured, 6.00%, 5/01/20 ................................. 3,775,000 4,061,938
Gemological Institute, Connie Lee Insured, 6.00%, 5/01/25 ................................. 4,755,000 5,132,119
Health Facilities, Barton Memorial Hospital, Refunding, Series B, 6.40%, 12/01/05 ......... 250,000 268,053
Salk Institute, Connie Lee Insured, 6.20%, 7/01/24 ........................................ 7,065,000 7,672,307
Sisters Charity Leavenworth, 5.00%, 12/01/23 .............................................. 11,375,000 11,122,020
Southern California Development Corp., 6.10%, 12/01/15 .................................... 2,255,000 2,484,243
St. Joseph Health System Group, Pre-Refunded, 6.50%, 7/01/15 .............................. 8,395,000 9,629,569
St. Joseph Health System Group, Pre-Refunded, 6.625%, 7/01/21 ............................. 12,500,000 14,412,000
Sutter Health Obligated Group, MBIA Insured, 5.50%, 8/15/22 ............................... 25,520,000 26,540,290
Sutter Health Obligated Group, Refunding, AMBAC Insured, 6.00%, 8/15/09 ................... 6,465,000 7,016,658
Sutter Health Obligated Group, Refunding, AMBAC Insured, 6.125%, 8/15/22 .................. 9,330,000 10,076,307
Sutter Health Obligated Group, Refunding, MBIA Insured, 5.50%, 8/15/23 .................... 14,000,000 14,592,900
California Statewide CDA,
COP, California Lutheran Homes, 5.75%, 11/15/15 ........................................... 5,000,000 5,393,900
COP, Kaiser Permanente, 5.30%, 12/01/15 ................................................... 32,200,000 32,964,428
COP, MBIA Insured, 5.00%, 4/01/18 ......................................................... 7,000,000 6,982,920
COP, MBIA Insured, 5.125%, 4/01/23 ........................................................ 6,000,000 6,002,460
COP, St. Joseph Health System, Refunding, 5.125%, 7/01/17 ................................. 5,000,000 5,009,450
COP, St. Joseph Health System, Refunding, 5.25%, 7/01/21 .................................. 7,750,000 7,773,715
Lease Revenue, Oakland Convention Center Project, Refunding, AMBAC Insured, 5.50%, 10/01/14 10,000,000 10,387,900
Lease Revenue, Special Facilities, United Airlines, Los Angeles, 5.625%, 10/01/34 ......... 58,920,000 59,970,544
Lease Revenue, Special Facilities, United Airlines, Series A, 5.70%, 10/01/33 ............. 14,125,000 14,460,751
MFHR, Borregas Court Project, Series J, 6.30%, 3/20/39 .................................... 7,476,000 8,053,147
MFHR, Series E, 6.40%, 6/01/28 ............................................................ 8,000,000 8,552,240
Water Revenue, Refunding, Series A, 6.10%, 7/01/21 ........................................ 4,615,000 4,992,507
California Statewide Communities Development Corp. COP,
Pacific Homes, Series A, 6.00%, 4/01/17 ................................................... 6,270,000 6,719,434
Villaview Community Hospital, CHFCLP Insured, 7.00%, 9/01/09 .............................. 4,250,000 4,628,718
California Urban Waterfront Area Restoration, 7.40%, 10/01/20 ................................ 2,575,000 2,652,533
California Valley HFAR, Home Mortgage, MBIA Insured, 5.65%, 2/01/27 .......................... 20,000,000 20,322,000
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Camarillo COP, Capital Improvement Corp., Pre-Refunded, 7.625%, 4/01/08 .................... $ 4,495,000 $ 4,584,900
Cambria Community Services District Sewer Revenue, BIG Insured, Pre-Refunded,
7.40%, 5/01/15............................................................................. 940,000 961,667
Cambria Community Services District Water Revenue, BIG Insured, Pre-Refunded,
7.40%, 5/01/15 ............................................................................ 1,570,000 1,606,189
Campbell COP, Civic Center Project, Refunding,
MBIA Insured, 5.25%, 10/01/28 ........................................................... 6,260,000 6,371,115
Series 1991, Pre-Refunded, 6.75%, 10/01/17 .............................................. 1,410,000 1,547,616
Campbell Housing Facility Revenue, San Tomas Gardens Project, Series A, 6.625%, 10/20/34 ... 5,615,000 5,929,159
Campbell USD, Series A, MBIA Insured, Pre-Refunded, 6.25%, 8/01/19 ......................... 3,250,000 3,703,538
Camrosa Water District COP, Water System Improvement Projects, MBIA Insured, 6.00%, 1/15/20 5,120,000 5,601,997
Capistrano Bay Park and Recreation District COP, Special Lease Finance, Series Q,
6.35%, 8/01/12 ............................................................................ 2,800,000 2,875,264
Capistrano Unified PFA, Special Tax Revenue, First Lien, Refunding, Series A,
AMBAC Insured, 5.70%, 9/01/20 ............................................................. 10,640,000 11,324,152
Carson RDA, Project Area No. 1, Refunding, Series 1992, 6.375%,
10/01/12 ................................................................................ 3,965,000 4,272,962
10/01/16 ................................................................................ 1,565,000 1,684,973
Castaic Lake Water Agency COP, Water System Improvement Project, Refunding,
Series A, MBIA Insured,
6.125%, 8/01/15 ......................................................................... 11,540,000 12,790,936
6.00%, 8/01/18 .......................................................................... 5,345,000 5,852,454
Cathedral City PFA Revenue, Tax Allocation, Redevelopment Projects, Refunding,
Series A, MBIA Insured, 5.70%, 8/01/24 ................................................... 11,210,000 11,878,677
Central San Joaquin Water Conservation District COP, Series 1990, 7.65%, 12/01/18 .......... 5,800,000 6,077,414
Cerritos PFA Revenue, Los Coyotes Redevelopment Project Loan, Series A, AMBAC
Insured, 5.75%, 11/01/22 .................................................................. 5,500,000 5,856,565
Chaffey Community College District COP, 7.40%, 11/01/14 .................................... 5,000,000 5,982,350
Chico PFA Revenue, Southeast Chico Redevelopment Project, Series A, FGIC
Insured, 6.625%, 4/01/21 .................................................................. 1,955,000 2,044,637
Chico RDAR, COP, Insured Health Facilities, Sierra Sunrise Lodge,
6.80%, 2/01/11 .......................................................................... 4,110,000 4,387,672
6.75%, 2/01/21 .......................................................................... 2,800,000 2,967,888
Chino RDA, Tax Allocation, Central City Redevelopment Project, 7.00%, 9/01/22 .............. 9,980,000 10,961,633
Chino USD, COP, Land Acquisition,
Series C, BIG Insured, 7.45%, 9/01/24 ................................................... 2,585,000 2,683,256
Series D, BIG Insured, 7.45%, 9/01/24 ................................................... 7,715,000 7,912,735
Series E, BIG Insured, 7.50%, 9/01/24 ................................................... 505,000 518,039
Series G, BIG Insured, 7.35%, 9/01/24 ................................................... 2,480,000 2,573,273
Clayton 1915 Act, Limited Obligation, Contra Costa County, Oakhurst Country Club,
8.10%, 9/02/01 .......................................................................... 90,000 93,502
8.20%, 9/02/02 .......................................................................... 135,000 140,222
8.25%, 9/02/03 .......................................................................... 135,000 140,193
8.30%, 9/02/04 .......................................................................... 175,000 181,657
8.30%, 9/02/05 .......................................................................... 200,000 207,442
8.35%, 9/02/06 .......................................................................... 185,000 191,845
8.35%, 9/02/07 .......................................................................... 235,000 243,617
8.375%, 9/02/08 ......................................................................... 245,000 253,835
8.375%, 9/02/09 ......................................................................... 265,000 274,514
8.40%, 9/02/10 .......................................................................... 35,000 36,257
8.40%, 9/02/11 .......................................................................... 270,000 279,696
8.40%, 9/02/12 .......................................................................... 315,000 326,249
8.40%, 9/02/13 .......................................................................... 365,000 378,034
Clayton Special Tax, CFD No. 90-1, Pre-Refunded, 8.60%, 9/02/22 ............................ 6,215,000 6,739,297
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Clovis COP, Pre-Refunded, 7.20%, 8/01/11 ...................................................... $ 2,670,000 $ 2,943,648
Clovis Sewer Revenue, Refunding, MBIA Insured, 5.20%, 8/01/28 ................................. 6,000,000 6,060,960
Coachella RDA, Tax Allocation, Project Area No. 4, Pre-Refunded, 8.45%, 9/01/20 ............... 1,750,000 1,908,445
Coachella Valley COP, ID No. 71, Storm Water District, Flood Control Project,
Pre-Refunded, 6.75%, 10/01/12 ................................................................ 3,000,000 3,359,970
Coachella Valley USD, COP, 8.25%, 9/01/12 ..................................................... 6,375,000 6,752,719
Coastside County Water District 1915 Act GO, Crystal Springs Project, Refunding, 4.40%, 9/02/99 795,000 796,534
Colma 1915 Act, Local ID No. 1, Refunding,
4.70%, 9/02/99 ............................................................................. 425,000 426,156
4.90%, 9/02/00 ............................................................................. 440,000 444,805
Colton RDA, MFR, Seniors Housing Project, Series A, 7.75%, 7/01/22 ............................ 4,100,000 4,231,569
Colusa County COP, ABAG Finance Corp., Series B, 7.00%, 2/01/18 ............................... 1,555,000 1,644,832
Commerce Joint Powers Financing Authority Lease Revenue, Community Center, Series A,
6.25%, 10/01/22 .............................................................................. 4,000,000 4,311,320
Commerce Refuse to Energy Authority Revenue, Refunding, Series 1994, 8.75%, 7/01/10 ........... 31,825,000 37,376,553
Compton COP, Civic Center and Capital Improvement, Refunding, Series A, 5.50%, 9/01/15 ........ 5,000,000 5,200,600
Compton CRDA, Tax Allocation,
Series 1, FSA Insured, 6.75%, 8/01/13 ...................................................... 7,375,000 8,127,766
Walnut Industrial Park, Series 1985, AMBAC Insured, Pre-Refunded, 10.20%, 8/01/09 .......... 13,000,000 13,684,580
Compton Sewer Revenue,
6.75%, 7/01/23 ............................................................................. 4,535,000 5,159,651
Series 1993, 6.60%, 7/01/12 ................................................................ 1,405,000 1,590,320
Concord RDA, Tax Allocation, Central Concord Redevelopment Project, Refunding,
Sub Series A, 6.00%, 7/01/19 ................................................................. 8,395,000 8,816,345
Contra Costa County COP,
Capital Projects Program, Refunding, AMBAC Insured, 5.25%, 2/01/21 ......................... 6,570,000 6,695,750
Merrithew Memorial Hospital Project, Refunding, MBIA Insured, 5.50%, 11/01/22 .............. 11,000,000 11,529,760
Series 1994, Pre-Refunded, 6.50%, 8/01/24 .................................................. 4,500,000 5,158,260
Contra Costa County MFHR, Byron Park Project, Refunding, Series C, GNMA Secured, 6.40%, 1/20/31 5,930,000 6,389,516
Contra Costa County Public Financing Lease Revenue, Various Capital Facilities,
Refunding, Series 1999A, 5.00%, 6/01/28 ...................................................... 8,950,000 8,827,743
Contra Costa Transportation Authority Revenue, Sales Tax, Series A,
ETM, 6.875%, 3/01/07 ....................................................................... 13,900,000 15,818,617
FGIC Insured, ETM, 6.50%, 3/01/09 .......................................................... 1,000,000 1,074,600
Contra Costa Water District Revenue, Refunding, Series F, FGIC Insured, 5.00%, 10/01/20 ....... 5,000,000 4,973,900
Corcoran Hospital District Revenue, Series A, 6.55%, 7/01/12 .................................. 1,305,000 1,390,908
Corona 1915 Act,
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/99 ............................................ 1,390,000 1,408,042
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/00 ............................................ 1,500,000 1,561,635
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/01 ............................................ 1,595,000 1,659,853
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/02 ............................................ 1,690,000 1,757,651
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/03 ............................................ 1,800,000 1,871,316
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/04 ............................................ 1,885,000 1,958,496
AD No. 79-2, Northeast Area, Series B, 7.75%, 9/02/99 ...................................... 760,000 768,816
AD No. 79-2, Northeast Area, Series B, 7.80%, 9/02/00 ...................................... 810,000 840,027
AD No. 79-2, Northeast Area, Series B, 7.80%, 9/02/01 ...................................... 875,000 909,536
AD No. 79-2, Northeast Area, Series B, 7.85%, 9/02/02 ...................................... 940,000 976,707
AD No. 79-2, Northeast Area, Series B, 7.85%, 9/02/03 ...................................... 1,000,000 1,038,630
AD No. 79-2, Northeast Area, Series B, 7.85%, 9/02/04 ...................................... 1,075,000 1,115,861
</TABLE>
28
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Corona COP,
Corona Community Hospital Project, Pre-Refunded, 9.425%, 9/01/20 ............................. $15,000,000 $20,797,650
Vista Hospital System, Refunding, Series C, 9.50%, 7/01/20 ................................... 22,325,000 22,771,500
Corona RDA, Tax Allocation, Redevelopment Project Area A, Refunding, Series A,
FGIC Insured, 6.25%, 9/01/16 ................................................................... 3,000,000 3,353,130
Corona-Norco USD,
Lease Revenue, Land Acquisition, Series A, FSA Insured, 6.00%, 4/15/29 ....................... 18,435,000 20,107,608
Special Tax, CFD No. 88-1, Pre-Refunded, 7.55%, 10/01/14 ..................................... 5,195,000 5,464,413
CSAC Finance Corp. COP, Sutter County, Health Facilities Program, 7.80%, 1/01/21 ................ 2,100,000 2,116,695
Cucamonga School District COP, Pre-Refunded, 7.60%, 12/01/15 .................................... 1,750,000 1,837,063
Culver City Redevelopment Finance Authority Revenue, Subordinated Lien, Project
Loans, Series B,
7.50%, 12/01/08 .............................................................................. 1,630,000 1,701,508
7.60%, 12/01/15 .............................................................................. 7,955,000 8,310,668
AMBAC Insured, Pre-Refunded, 7.50%, 12/01/08 ................................................. 3,370,000 3,535,467
AMBAC Insured, Pre-Refunded, 7.60%, 12/01/15 ................................................. 16,445,000 17,263,139
Culver City USD, MBIA Insured, 5.75%, 8/01/36 ................................................... 5,000,000 5,398,850
Cupertino COP,
Memorial Park Expansion Project, Bank Qualified, Pre-Refunded, 7.25%, 7/01/10 ................ 4,110,000 4,388,905
Refunding, Series A, 5.75%, 1/01/16 .......................................................... 5,000,000 5,318,400
Refunding, Series B, 6.25%, 7/01/10 .......................................................... 3,535,000 3,818,154
Cypress COP, Civic Center, Refunding and Improvement Project, 6.80%, 8/01/17 .................... 3,440,000 3,723,456
Desert Hot Springs RDA, Tax Allocation, Redevelopment Project No. 2, Series A, 6.625%, 9/01/20 .. 1,230,000 1,328,843
Downey Community Development Commission Tax Allocation, Downey Redevelopment Project, Refunding,
MBIA Insured, 5.125%,
8/01/20 ...................................................................................... 2,770,000 2,776,316
8/01/28 ...................................................................................... 4,120,000 4,132,154
Duarte COP,
City Civic Center, Refunding, 7.00%, 6/15/22 ................................................. 5,370,000 5,790,954
(a)Series A, 5.25%, 4/01/19 ..................................................................... 5,000,000 4,933,000
(a)Series A, 5.25%, 4/01/24 ..................................................................... 5,000,000 4,904,450
(a)Series A, 5.25%, 4/01/31 ..................................................................... 10,000,000 9,728,100
East Bay MUD,
Wastewater System Revenue, Subordinated, MBIA Insured, 4.75%, 6/01/28 ........................ 7,225,000 6,874,443
Wastewater System Revenue, Subordinated, MBIA Insured, 5.00%, 6/01/38 ........................ 23,115,000 22,800,405
Water System Revenue, MBIA Insured, 4.75%, 6/01/34 ........................................... 36,000,000 34,003,800
Water System Revenue, Subordinated Lien, Refunding, FGIC Insured, 5.00%, 6/01/26 ............. 7,280,000 7,194,242
Water System Revenue, Subordinated, MBIA Insured, 5.00%, 6/01/38 ............................. 64,095,000 63,222,667
Water System Revenue, Subordinated, Refunding, 6.00%, 6/01/20 ................................ 15,100,000 16,256,509
East Side UHSD, Santa Clara County, Series D, FGIC Insured, 5.80%, 9/01/21 ...................... 9,100,000 9,755,564
Eastern Municipal Water District, Water and Sewer Revenue COP, Refunding, Series A, FGIC Insured,
6.30%, 7/01/20 ................................................................................. 7,975,000 8,446,562
El Cajon RDA, Tax Allocation, Redevelopment Project, Refunding, AMBAC Insured, 5.35%, 10/01/22 11,285,000 11,548,730
El Camino Hospital District Revenue, Refunding, Series A, ETM, 7.25%, 8/15/09 ................ 8,945,000 10,708,417
El Dorado County Board Authority Lease Revenue, Capital Facilities Project,
Pre-Refunded, 7.40%, 11/01/09 ............................................................. 5,500,000 5,955,345
El Dorado UHSD COP, Capital Projects, 6.30%, 8/01/12 ......................................... 3,390,000 3,580,518
El Monte COP, Department of Public Social Services Facility, AMBAC Insured, 4.75%, 6/01/30 ... 10,790,000 10,251,471
El Monte PFA, Tax Allocation Revenue, Downtown El Monte Redevelopment Project,
Series A, Pre-Refunded, 6.35%, 12/01/23 ................................................... 2,480,000 2,817,379
</TABLE>
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Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Emeryville PFA Revenue,
Housing Increment Loan, 6.20%, 9/01/25 ........................................................ $ 3,115,000 $ 3,329,842
Housing Increment Loan, Series A, Pre-Refunded, 6.20%, 9/01/25 ................................ 2,970,000 3,412,797
Shellmound Park Redevelopment and Housing Project, Series B, MBIA Insured,
5.00%, 9/01/28 ............................................................................... 20,000,000 19,756,200
Empire USD COP, Garst School Supplies Financing Project, 6.75%, 12/01/17 ......................... 1,165,000 1,243,812
Empire USD, Special Tax, CFD No. 1987-1, Refunding, Series A, MBIA Insured, 6.50%, 10/01/17 ...... 2,700,000 2,971,134
Escondido COP,
Escondido Mobile Home Park, Pre-Refunded, 7.25%, 3/01/07 ...................................... 1,000,000 1,089,070
Escondido Mobile Home Park, Pre-Refunded, 7.40%, 3/01/21 ...................................... 4,910,000 5,360,787
Wastewater Project, Refunding, AMBAC Insured, 5.70%, 9/01/26 .................................. 13,465,000 14,446,464
Wastewater Project, Refunding, AMBAC Insured, 5.80%, 9/01/26 .................................. 400,000 432,108
Fairfield PFA Revenue,
Fairfield Redevelopment Projects, Series A, 7.80%, 8/01/19 .................................... 2,145,000 2,179,856
Municipal Park ID No 1, Series A, FSA Insured, 5.00%, 7/01/23 ................................. 5,000,000 4,951,100
Fairoaks Fire Protection District COP, 8.00%, 12/01/15 ........................................... 1,960,000 2,086,479
Fallbrook UHSD, San Diego County, Series A, MBIA Insured, Pre-Refunded, 6.25%, 9/01/19 ........... 6,000,000 6,847,560
Fillmore COP, Water System Improvement Project, AMBAC Insured, 7.70%, 5/01/19 .................... 2,590,000 3,060,189
Folsom PFA Revenue, Local Agency,
7.25%, 10/01/10 ............................................................................... 3,000,000 3,156,570
8.00%, 10/01/18 ............................................................................... 7,590,000 7,727,379
Folsom Special Tax, CFD No. 2, Pre-Refunded,
7.60%, 12/01/09 ............................................................................... 3,910,000 4,104,523
7.70%, 12/01/19 ............................................................................... 3,950,000 4,149,041
Fontana PFA Revenue, Tax Allocation, North Fontana Redevelopment,
Series B, 6.30%, 1/15/24 ...................................................................... 1,905,000 1,993,887
Subordinated Lien, Series A, Pre-Refunded, 7.65%, 12/01/09 .................................... 2,000,000 2,250,320
Subordinated Lien, Series A, Pre-Refunded, 7.75%, 12/01/20 .................................... 11,005,000 12,410,118
Fontana RDA, Tax Allocation,
Jurupa Hills Redevelopment Project, Refunding, Series A, 5.50%, 10/01/27 ...................... 12,500,000 12,658,875
Jurupa Hills Redevelopment Project, Series A, Pre-Refunded, 7.10%, 10/01/23 ................... 10,000,000 11,313,600
Southwest Industrial Park Project, Refunding, MBIA Insured, 5.00%, 9/01/22 .................... 7,500,000 7,387,725
Southwest Industrial Park Project, Refunding, MBIA Insured, 5.20%, 9/01/30 .................... 7,195,000 7,234,860
Foothill/Eastern Corridor Agency, Toll Road Revenue, senior lien, Series A,
6.50%, 1/01/32 ................................................................................ 108,175,000 120,730,872
6.00%, 1/01/34 ................................................................................ 132,495,000 144,204,908
5.00%, 1/01/35 ................................................................................ 15,955,000 15,214,369
Fort Bragg RDAR, Tax Allocation, Fort Bragg Redevelopment Project, Series A, 6.875%, 5/01/18 ..... 2,015,000 2,165,339
Fortuna and Susanville Cities COP, Series B, 7.375%, 9/01/17 ..................................... 2,000,000 2,118,160
Fremont COP, Series A, MBIA Insured, Pre-Refunded, 5.90%, 8/01/25 ................................ 8,320,000 8,778,266
Fremont RDA, Tax Allocation, Irvington Redevelopment Project, 7.75%, 8/01/06 ..................... 1,980,000 2,013,224
Fresno County COP, American Avenue Landfill Project,
ETM, 7.75%, 11/01/99 .......................................................................... 295,000 303,012
ETM, 7.90%, 11/01/00 .......................................................................... 320,000 342,832
ETM, 8.00%, 11/01/01 .......................................................................... 345,000 383,719
Pre-Refunded, 8.25%, 11/01/13 ................................................................. 7,185,000 8,232,860
Fresno County Office of Education COP, Capital Outlay Financing Program, Series C, 7.50%, 12/01/10 2,470,000 2,610,741
Fresno Health Facilities Revenue, Holy Cross Health Systems Corp., MBIA Insured, 5.625%, 12/01/15 5,000,000 5,343,100
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Fresno RDAR, Tax Allocation, Mariposa Redevelopment Project, Series A, 6.625%, 2/01/23 ......... $ 1,505,000 $ 1,586,059
Fresno USD,
COP, Project Phase VI, Series A, Pre-Refunded, 7.20%, 5/01/11 ............................... 7,065,000 7,728,686
GO, Series D, FSA Insured, 5.125%, 8/01/22 .................................................. 6,070,000 6,098,590
Galt 1915 Act, AD No. 9, 7.75%, 9/02/24 ........................................................ 5,705,000 5,902,849
Galt COP, Wastewater Improvement, 7.80%, 9/01/10 ............................................... 3,340,000 3,514,214
Galt Middle School Joint Powers Authority Special Tax, CFD No. 1, 8.00%, 9/01/15 ............... 3,980,000 4,020,636
Glendale USD, COP, Series A, AMBAC Insured, 6.00%, 3/01/19 ..................................... 7,250,000 7,870,020
Grand Terrace PFA, Series A, Pre-Refunded, 7.85%, 6/01/21 ...................................... 2,945,000 3,269,421
Grass Valley Hospital Revenue, Sierra Nevada Memorial Hospital, 7.25%, 4/01/19 ................. 3,000,000 3,060,000
Hawaiian Gardens RDA, Tax Allocation, Project No. 1,
Refunding, 6.35%, 12/01/33 .................................................................. 13,000,000 13,803,400
Refunding, ETM, 8.00%, 12/01/10 ............................................................. 6,905,000 8,296,772
Hemet USD, COP, Series 1991, Pre-Refunded, 8.00%, 12/01/13 ..................................... 4,000,000 4,535,880
Hemet Valley Hospital District Revenue COP, Hemacinto Community Corp. Project, Series A, 7.75%,
5/01/19 ....................................................................................... 2,570,000 2,624,844
Hesperia PFA Revenue, Highway and Street Improvement, Series A, 6.10%, 10/01/10 ................ 1,600,000 1,737,888
Hesperia Water District COP, Water Facilities Improvement Projects, Refunding,
FGIC Insured, Pre-Refunded, 7.15%, 6/01/26 .................................................... 5,000,000 5,472,300
Hollister RDA, Tax Allocation, Community Development Project,
Series 1989, Pre-Refunded, 7.55%, 10/01/13 .................................................. 2,000,000 2,084,000
Series B, FSA Insured, 6.625%, 10/01/07 ..................................................... 1,905,000 2,073,821
Series B, FSA Insured, 6.75%, 10/01/13 ...................................................... 1,495,000 1,628,145
Huntington Beach COP, Emerald Cove Senior Citizens Housing Project, Refunding, 7.00%, 9/01/21 .. 3,655,000 3,772,435
Huntington Beach PFA Revenue, Huntington Beach Redevelopment Projects, Refunding, 7.00%, 8/01/24 2,630,000 2,778,700
Huntington Park PFA,
Lease Revenue, Series A, 7.875%, 9/01/19 .................................................... 4,690,000 4,875,208
Local Agency Revenue, Refunding, Series A, MBIA Insured, 6.45%, 9/01/22 ..................... 10,000,000 11,231,600
Huntington Park RDA, Sales and Use Tax Revenue, Junior Lien, Tax Allocation, Merged Project,
Pre-Refunded, 8.00%, 1/01/22 .................................................................. 11,665,000 12,313,924
Imperial COP,
Wastewater System Refining Program, Refunding, Series B, 5.85%, 10/15/16 .................... 1,820,000 1,906,213
Wastewater System Refining Program, Refunding, Series B, 5.875%, 10/15/20 ................... 3,175,000 3,322,606
Water System Refining Program, Refunding, Series A, 5.85%, 10/15/16 ......................... 2,625,000 2,749,346
Water System Refining Program, Refunding, Series A, 5.875%, 10/15/20 ........................ 4,535,000 4,745,832
Imperial Irrigation District COP, Electric System Project, Series 1994, Pre-Refunded,
6.00%, 11/01/18 ............................................................................... 21,010,000 23,729,955
Indio PFA Revenue, Tax Allocation, Refunding, Series 1992,
6.85%, 8/15/01 .............................................................................. 255,000 270,101
6.95%, 8/15/02 .............................................................................. 275,000 291,572
7.10%, 8/15/03 .............................................................................. 300,000 318,666
7.30%, 8/15/22 .............................................................................. 12,120,000 12,892,529
Industry COP, Refunding, 6.625%, 6/01/06 ....................................................... 11,380,000 12,963,527
Industry Urban Development Agency Tax Allocation, Transportation District No. 3
Project, Refunding, 6.90%, 11/01/07 ........................................................... 5,860,000 6,382,302
Inglewood Hospital Revenue, Daniel Freeman Hospital Inc., Pre-Refunded, 6.75%, 5/01/13 ......... 12,000,000 13,020,240
Inglewood PFA Revenue, La Cinega Redevelopment Project, Series A, AMBAC
Insured, 6.00%, 5/01/16 ....................................................................... 7,410,000 7,980,718
Inglewood USD, COP, 7.375%, 10/01/05 ........................................................... 2,990,000 3,093,185
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Inland Empire Solid Waste Financing Authority Revenue, Landfill Improvement Financing Project,
Series B, FSA Insured,
6.25%, 8/01/11 ............................................................................ $ 5,000,000 $ 5,686,350
6.00%, 8/01/16 ............................................................................ 5,000,000 5,508,750
Intermodal Container Transfer Facility Joint Powers Authority Revenue, Refunding, Series A,
7.65%, 11/01/04 ........................................................................... 9,640,000 9,834,150
7.70%, 11/01/14 ........................................................................... 27,465,000 28,026,385
Inyo County COP, Series 1990, 7.30%, 12/01/10 ................................................ 1,470,000 1,500,547
Irvine USD, Special Tax, CFD No. 86-1, Refunding, AMBAC Insured, 5.80%, 11/01/20 ............. 8,165,000 8,908,015
Irwindale CRDA, Tax Allocation,
Individual Development Project, Pre-Refunded, 6.60%, 8/01/18 .............................. 1,630,000 1,897,027
Individual Development Project, Pre-Refunded, 6.625%, 8/01/26 ............................. 9,100,000 10,674,755
Senior Lien, Refunding, FSA Insured, 5.75%, 8/01/26 ....................................... 10,220,000 11,072,450
Irwindale Public Finance Authority Special Tax, CFD No.1, Pre-Refunded, 8.50%, 11/01/20 ...... 10,000,000 11,042,400
John C. Fremont Hospital District Health Facilities Revenue, 6.75%, 6/01/23 .................. 1,760,000 1,962,136
Jurupa Community Services District Special Tax, CFD No.1, FSA Insured, 4.75%, 9/01/24 ........ 13,290,000 12,703,911
Keppel USD, Special Tax, CFD No. 91-1, Series A, 7.40%, 9/01/16 .............................. 2,000,000 2,201,340
Kern Community College District COP, Refunding, MBIA Insured, 5.00%, 1/01/25 ................. 17,000,000 16,804,500
Kern County Board of Education COP, Refunding, Series A, MBIA Insured, 5.20%, 5/01/28 ........ 13,685,000 13,764,647
Kern County Housing Authority RRMR, Series A, 9.875%, 9/01/08 ................................ 3,970,000 3,997,552
Kern County Housing Authority SFMR, Series A, GNMA Secured,
7.45%, 12/01/02 ........................................................................... 145,000 149,730
7.55%, 12/01/07 ........................................................................... 320,000 341,059
7.65%, 12/01/12 ........................................................................... 465,000 493,765
7.70%, 12/01/23 ........................................................................... 2,115,000 2,238,410
7.50%, 10/01/24 ........................................................................... 835,000 878,353
Kings River Conservation District Pine Flat Power Revenue,
Refunding, Series D, Pre-Refunded, 5.50%, 1/01/20 ......................................... 6,450,000 6,681,620
Series D, Pre-Refunded, 6.00%, 1/01/17 .................................................... 6,455,000 6,862,633
La Habra COP, Park La Habra and Viewpark Projects, FSA Insured, Pre-Refunded, 6.625%, 11/01/22 3,000,000 3,359,550
La Mesa Parking Authority Lease Revenue, Refunding, AMBAC Insured, 6.00%, 10/01/07 ........... 3,520,000 3,874,570
La Mirada RDA,
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 7.90%, 10/01/01 ........... 295,000 320,591
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 8.00%, 10/01/02 ........... 315,000 342,783
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 8.00%, 10/01/03 ........... 340,000 369,988
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 8.25%, 10/01/20 ........... 12,725,000 13,893,155
Tax Allocation, Housing, Refunding, Series A, FSA Insured, 5.875%, 8/15/25 ................ 7,100,000 7,728,847
La Mirada SFMR, MBS, Series A, 7.65%, 4/01/24 ................................................ 1,745,000 1,871,478
La Palma Community Development Commission Tax Allocation, La Palma Community Development
Project No. 1,
7.10%, 6/01/21 ............................................................................ 4,945,000 5,233,541
6.10%, 6/01/22 ............................................................................ 2,355,000 2,459,279
La Quinta RDA, Tax Allocation,
Redevelopment Project Area No. 1, Refunding, AMBAC Insured, 5.20%, 9/01/28 ................ 8,600,000 8,647,644
Redevelopment Project Area No. 1, Refunding, AMBAC Insured, 5.25%, 9/01/33 ................ 4,300,000 4,358,265
Redevelopment Project Areas No. 1 and 2, MBIA Insured, 6.00%, 9/01/25 ..................... 7,500,000 8,285,325
Lake Arrowhead Community Services District COP, Refunding, FGIC Insured, 6.50%, 6/01/15 ...... 10,000,000 10,934,500
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Lake Elsinore PFA, Tax Allocation Revenue, Lake Elsinore Redevelopment Projects, Series A,
FSA Insured, 5.80%, 9/01/25 ................................................................ $ 6,750,000 $ 7,255,373
Lake Elsinore Public Financing Authority Tax Allocation Revenue, Series A, 5.50%, 9/01/30 ... 13,050,000 13,181,414
Lake Elsinore USD,
COP, Pre-Refunded, 6.90%, 2/01/20 ........................................................ 5,150,000 5,831,036
Special Tax, CFD No. 8, Pre-Refunded, 8.25%, 9/01/16 ..................................... 4,200,000 4,732,980
Lakewood RDA, Tax Allocation, Redevelopment Project No.1, Refunding, Series A,
FSA Insured, 6.50%, 9/01/17 ................................................................ 6,705,000 7,365,979
Lancaster COP, School District Project, FSA Insured, Pre-Refunded,
6.95%, 3/01/12 ........................................................................... 2,640,000 2,991,859
7.00%, 3/01/22 ........................................................................... 3,555,000 4,001,757
Lancaster RDA,
RMR, Los Angeles County, Series A, 10.125%, 9/01/16 ...................................... 5,000 5,022
Tax Allocation, Amargosa Redevelopment Project, Refunding, MBIA Insured, 6.85%, 2/01/19 .. 6,055,000 6,477,155
Tax Allocation, Combined Redevelopment Project Areas, Housing Program, MBIA
Insured, 5.80%, 8/01/23 ................................................................ 9,125,000 9,784,373
Tax Allocation, Combined Redevelopment Project Areas, Sheriff's Program, MBIA
Insured, 5.70%, 8/01/23 ................................................................ 13,140,000 14,038,250
Lassen County COP, Public Facility Project,
Series A, Pre-Refunded, 7.50%, 11/01/04 .................................................. 1,260,000 1,307,565
Series A, Pre-Refunded, 7.60%, 11/01/09 .................................................. 1,840,000 1,904,529
Series B, Pre-Refunded, 7.50%, 11/01/04 .................................................. 835,000 866,521
Series B, Pre-Refunded, 7.60%, 11/01/09 .................................................. 1,050,000 1,086,824
Lemon Grove CDA, Tax Allocation,
1998 Refunding, 5.75%, 8/01/28 ........................................................... 8,115,000 8,304,161
Lemon Redevelopment Project, Pre-Refunded, 6.90%, 8/01/20 ................................ 1,000,000 1,120,080
Lemoore Financing Authority Lease Revenue, Water and Wastewater System Improvement Project,
AMBAC Insured, 6.20%, 12/01/20 ............................................................. 4,400,000 4,863,408
Lemoore RDA, Tax Allocation, Refunding, 6.85%, 8/01/25 ...................................... 6,105,000 6,656,892
Liberty UHSD, Series A, FSA Insured, 6.20%, 8/01/19 ......................................... 2,745,000 3,039,758
Little Lake City School District COP, Refunding, Series A,
6.15%, 6/01/06 ........................................................................... 280,000 290,466
6.20%, 6/01/07 ........................................................................... 300,000 311,208
6.25%, 6/01/08 ........................................................................... 315,000 326,617
6.25%, 6/01/09 ........................................................................... 335,000 346,779
6.25%, 6/01/10 ........................................................................... 355,000 367,482
Local Medical Facilities Financing Authority COP, Insured California Health Clinic
Project, 7.55%, 3/01/20 ................................................................... 9,165,000 9,619,492
Local Medical Facilities Financing Authority II COP, Insured California Health Clinic
Project, 7.55%, 11/01/20 .................................................................. 4,060,000 4,347,489
Local Medical Facilities Financing Authority III COP, Insured California Health Clinic
Project, 6.90%, 7/01/22 ................................................................... 3,535,000 3,833,107
Loma Linda Hospital Revenue,
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 3.00%, 12/01/99 725,000 724,754
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 3.65%, 12/01/00 5,690,000 5,687,098
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 3.85%, 12/01/01 5,850,000 5,860,004
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.00%, 12/01/02 6,030,000 6,054,180
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.15%, 12/01/03 6,200,000 6,231,000
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.25%, 12/01/04 6,400,000 6,441,280
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.35%, 12/01/05 6,610,000 6,651,445
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.45%, 12/01/06 6,970,000 7,019,139
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.55%, 12/01/07 7,245,000 7,301,366
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.65%, 12/01/08 7,545,000 7,585,441
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.75%, 12/01/09 7,850,000 7,895,216
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Loma Linda Hospital Revenue, (cont.)
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 5.15%, 12/01/13 ... $ 5,405,000 $ 5,437,862
(a)Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 5.25%, 12/01/15 ... 5,960,000 6,019,004
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 6.55%, 12/01/18 ... 11,525,000 12,704,930
Loma Linda University Medical Center, Refunding, Series B, MBIA Insured, 5.00%, 12/01/22 .... 8,000,000 7,879,440
Long Beach California Board Finance Authority Lease Revenue,
Civic Center Project, Refunding, Series A, MBIA Insured, 5.00%, 10/01/27 .................... 5,000,000 4,940,100
Temple and Willow Facility, Refunding, Series B, MBIA Insured, 5.00%, 10/01/27 .............. 14,935,000 14,756,079
Long Beach COP, Fleet Services Project, Series A, Pre-Refunded, 6.60%, 5/01/14 ................. 7,715,000 8,154,446
Long Beach Harbor Revenue, MBIA Insured, 5.25%, 5/15/25 ........................................ 15,500,000 15,621,210
Long Beach HMR, Series A, 9.60%, 11/01/14 ...................................................... 1,740,000 1,743,254
Long Beach USD, COP, Los Angeles County Schools, Series A, 6.30%, 12/01/12 ..................... 3,735,000 3,954,767
Los Angeles Community College District COP, Series A,
Capital Improvement Project, Pre-Refunded, 7.50%, 8/15/09 ................................... 7,175,000 7,434,592
Refunding, FSA Insured, 6.00%, 8/15/20 ...................................................... 4,330,000 4,669,515
Los Angeles COP,
Ararat Mission Hills Project, Series A, 7.25%, 6/01/21 ...................................... 3,245,000 3,500,803
Bay Harbor Hospital Inc., 7.30%, 4/01/20 .................................................... 5,335,000 5,601,323
Los Angeles County Capital Assets Leasing Corp. Leasehold Revenue, Refunding, AMBAC Insured,
6.00%, 12/01/16 ............................................................................... 6,000,000 6,501,120
Los Angeles County COP,
CHFCLP Insured Health Clinic Program, Behavioral Health Service, Refunding,
Series F, 5.875%, 1/01/21 ................................................................. 7,520,000 8,051,589
CHFCLP Insured Health Clinic Program, Series A, 7.30%, 1/01/21 .............................. 15,545,000 16,585,427
CHFCLP Insured Health Clinic Program, Series B, 7.05%, 8/01/21 .............................. 7,175,000 7,606,002
CHFCLP Insured Health Clinic Program, Series C, 6.90%, 1/01/22 .............................. 1,220,000 1,292,749
Disney Parking Project, Pre-Refunded, 5.50%, 9/01/21 ........................................ 11,560,000 12,352,669
Disney Parking Project, Pre-Refunded, 6.50%, 3/01/23 ........................................ 13,060,000 14,628,767
Disney Parking Refunding Project, AMBAC Insured, 4.75%, 3/01/23 ............................. 8,000,000 7,657,920
Marina del Rey, Series A, 6.50%, 7/01/08 .................................................... 21,615,000 23,507,826
Retirement Housing Foundation, Refunding, 6.625%, 4/15/12 ................................... 3,400,000 3,758,462
Retirement Housing Foundation, Refunding, 6.75%, 4/15/22 .................................... 7,665,000 8,500,408
Series 1992, 6.625%, 7/01/22 ................................................................ 1,000,000 1,080,250
Los Angeles County MTA, Sales Tax Revenue,
Proposition A, First Tier, Refunding, Senior Series A, MBIA Insured, 5.25%, 7/01/27 ......... 32,395,000 32,913,644
Proposition A, First Tier, Senior Series A, MBIA Insured, 6.00%, 7/01/23 .................... 6,000,000 6,624,900
Proposition A, Refunding, Series A, FGIC Insured, 5.00%, 7/01/21 ............................ 118,800,000 118,002,852
Proposition A, Refunding, Series A, MBIA Insured, 5.625%, 7/01/18 ........................... 10,060,000 10,649,918
Proposition A, Second Tier, Refunding, MBIA Insured, 6.00%, 7/01/26 ......................... 12,200,000 13,462,700
Proposition C, Refunding, Second Series A, AMBAC Insured, 5.00%, 7/01/23 .................... 66,060,000 65,413,933
Proposition C, Second Senior Series A, AMBAC Insured, 5.00%, 7/01/25 ........................ 58,000,000 57,327,200
Los Angeles County Public Works Financing Authority Revenue,
Master Project, Refunding, Series A, FSA Insured, 5.25%, 3/01/15 ............................ 5,000,000 5,207,450
Multiple Capital Facilities Project, Series B, AMBAC Insured, 5.125%, 12/01/29 .............. 10,000,000 10,036,000
Regional Park and Open Space District, Series A, Pre-Refunded, 6.00%, 10/01/15 .............. 35,355,000 39,880,794
Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Projects, Series A,
5.00%, 10/01/23 ............................................................................. 14,300,000 14,160,432
MBIA Insured, 5.25%, 10/01/19 ............................................................... 30,000,000 30,644,100
MBIA Insured, 5.00%, 10/01/23 ............................................................... 25,750,000 25,321,263
</TABLE>
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Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Los Angeles County SFMR, Issue A, GNMA Secured,
7.875%, 8/01/16 .......................................................................... $ 1,925,000 $ 2,058,095
8.00%, 3/01/17 ........................................................................... 2,550,000 2,646,059
Los Angeles County Special Tax,
CFD No. 1, Palmdale/Lancaster Waterworks, Series A, 8.00%, 9/01/06 ....................... 230,000 233,648
CFD No. 1, Palmdale/Lancaster Waterworks, Series A, 8.125%, 9/01/18 ...................... 4,350,000 4,421,688
CFD No. 3, Series A, Pre-Refunded, 7.60%, 9/01/14 ........................................ 5,785,000 6,007,144
Los Angeles County Transportation Commission Lease Revenue, FSA Insured, 7.375%, 12/15/06 ... 13,080,000 14,142,227
Los Angeles County Transportation Commission Sales Tax Revenue,
Proposition C, Second Senior, Series A, MBIA Insured, Pre-Refunded, 6.625%, 7/01/09 ...... 29,590,000 32,874,490
Proposition C, Second Senior, Series A, MBIA Insured, Pre-Refunded, 6.25%, 7/01/13 ....... 15,000,000 16,518,900
Proposition C, Second Senior, Series A, MBIA Insured, Pre-Refunded, 6.00%, 7/01/23 ....... 35,780,000 39,131,870
Refunding, Series A, 7.40%, 7/01/09 ...................................................... 26,410,000 27,209,695
Refunding, Series A, 7.40%, 7/01/15 ...................................................... 1,830,000 1,885,412
Refunding, Series B, 6.50%, 7/01/13 ...................................................... 4,300,000 4,626,327
Refunding, Series B, FGIC Insured, 5.75%, 7/01/18 ........................................ 28,095,000 29,092,092
Refunding, Series B, MBIA Insured, 5.75%, 7/01/18 ........................................ 13,480,000 13,958,405
Series B, FGIC Insured, Series B, FGIC Insured, 6.50%, 7/01/13 ........................... 5,000,000 5,385,100
Los Angeles CRDA,
Financing Authority Revenue, Pooled Financing, Beacon Normandie, Series B, 6.625%, 9/01/14 7,500,000 8,086,650
Financing Authority Revenue, Pooled Financing, Bunker Harbor, Series A, 6.375%, 9/01/14 .. 5,000,000 5,537,500
MFHR, Angelus Plaza Project, Refunding, Series A, 6.40%, 7/01/23 ......................... 6,350,000 6,712,712
Tax Allocation, Bunker Hill, Refunding, Series H, FSA Insured, 5.625%, 12/01/18 .......... 20,000,000 21,080,200
Tax Allocation, Bunker Hill, Refunding, Series H, FSA Insured, 5.625%, 12/01/23 .......... 50,090,000 52,503,336
Tax Allocation, Bunker Hill, Refunding, Series H, FSA Insured, 5.60%, 12/01/28 ........... 36,900,000 38,604,411
Tax Allocation, Series G, ETM, 6.75%, 7/01/10 ............................................ 8,060,000 8,154,463
Los Angeles Department of Airports Revenue, Ontario International Airport, Series A,
FGIC Insured,
6.00%, 5/15/26 ........................................................................... 10,000,000 10,893,500
Los Angeles Department of Water and Power Electric Plant Revenue,
FGIC Insured, 6.125%, 1/15/33 ............................................................ 5,000,000 5,421,550
Refunding, 5.875%, 9/01/30 ............................................................... 33,125,000 35,842,575
Refunding, FGIC Insured, 5.875%, 9/01/30 ................................................. 19,400,000 20,991,576
Refunding, MBIA Insured, 6.00%, 2/01/28 .................................................. 11,060,000 11,847,472
Refunding, MBIA Insured, 5.875%, 9/01/30 ................................................. 15,000,000 16,230,600
Refunding, Second Issue, 5.40%, 11/15/31 ................................................. 14,500,000 14,838,575
Refunding, Series 1989, 7.40%, 9/01/20 ................................................... 25,380,000 26,334,288
Refunding, Series 1992, 6.375%, 2/01/20 .................................................. 8,245,000 8,911,443
Refunding, Series 1992, 6.00%, 2/01/28 ................................................... 8,290,000 8,880,248
Refunding, Series 1993, MBIA Insured, 5.375%, 9/01/23 .................................... 62,955,000 64,508,729
Second Issue, 6.00%, 8/15/32 ............................................................. 37,600,000 40,622,288
Series 1993, 6.125%, 1/15/33 ............................................................. 101,095,000 109,618,319
Los Angeles Department of Water and Power Waterworks Revenue,
FGIC Insured, 6.125%, 5/15/25 ............................................................ 11,100,000 12,380,496
Refunding, Series 1992, 6.40%, 5/15/28 ................................................... 21,590,000 22,964,851
Refunding, Series 1993, 5.80%, 4/15/24 ................................................... 10,520,000 11,186,126
Second Issue, 6.50%, 11/01/14 ............................................................ 1,000,000 1,082,340
Second Issue, 6.40%, 11/01/31 ............................................................ 14,815,000 15,999,015
Second Issue, 6.00%, 7/15/32 ............................................................. 15,590,000 16,911,408
</TABLE>
35
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Los Angeles Department of Water and Power Waterworks Revenue, (cont.)
Second Issue, FGIC Insured, 6.40%, 11/01/31 ................................ $ 5,500,000 $ 5,946,600
Second Issue, FGIC Insured, 6.00%, 7/15/32 ................................. 3,200,000 3,455,744
Second Issue, MBIA Insured, 6.00%, 7/15/32 ................................. 4,330,000 4,676,054
Series 1992, 6.50%, 4/15/32 ................................................ 3,500,000 3,809,015
Series 1994, MBIA Insured, 6.375%, 7/01/34 ................................. 3,000,000 3,359,400
Los Angeles GO, Series A,
FGIC Insured, Pre-Refunded, 6.10%, 9/01/12 ................................. 6,465,000 7,186,623
FGIC Insured, Pre-Refunded, 6.125%, 9/01/13 ................................ 8,130,000 9,045,682
FGIC Insured, Pre-Refunded, 6.30%, 9/01/15 ................................. 11,470,000 12,842,959
MBIA Insured, 6.00%, 9/01/12 ............................................... 5,000,000 5,533,750
Los Angeles Harbor Department Revenue,
Refunding, Series C, MBIA Insured, 5.375%, 11/01/25 ........................ 9,000,000 9,233,190
Series B, 6.125%, 8/01/18 .................................................. 24,810,000 27,445,070
Series B, 6.20%, 8/01/22 ................................................... 59,835,000 66,309,147
Series B, 5.375%, 11/01/23 ................................................. 7,460,000 7,573,989
Series B, MBIA Insured, 6.20%, 8/01/25 ..................................... 35,690,000 39,622,324
Los Angeles HMR, Series 1985, 9.00%, 6/15/18 .................................. 235,000 235,160
Los Angeles MFHR, Refunding, Senior Series G, FSA Insured, 5.75%, 1/01/24 ..... 7,350,000 7,606,148
Los Angeles Municipal Improvement Corp. Lease Revenue, Central Library Project,
Refunding, Series A, 6.30%, 6/01/18 .......................................... 3,000,000 3,244,080
Los Angeles USD,
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.50%, 6/01/04 .......... 3,040,000 3,343,179
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.60%, 6/01/05 ....... 1,145,000 1,258,241
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.60%, 6/01/06 ....... 3,610,000 3,961,361
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.625%, 6/01/08 ...... 8,505,000 9,315,016
Series A, FGIC Insured, 5.375%, 7/01/16 .................................... 5,000,000 5,255,950
Series A, FGIC Insured, 5.00%, 7/01/21 ..................................... 50,750,000 50,409,468
Series A, FGIC Insured, 5.40%, 7/01/22 ..................................... 23,525,000 24,304,148
(a)Series B, FGIC Insured, 5.00%, 7/01/23 ..................................... 23,020,000 22,794,864
Los Angeles Wastewater System Revenue,
Refunding, Series A, FGIC Insured, 6.00%, 12/01/12 ......................... 15,000,000 16,092,000
Refunding, Series A, FGIC Insured, 6.00%, 12/01/18 ......................... 25,665,000 27,425,362
Refunding, Series A, MBIA Insured, 5.70%, 6/01/20 .......................... 65,445,000 69,755,862
Refunding, Series A, MBIA Insured, 5.80%, 6/01/21 .......................... 35,505,000 37,963,366
Refunding, Series C, MBIA Insured, 5.60%, 6/01/20 .......................... 31,540,000 33,499,265
Refunding, Series D, FGIC Insured, 6.00%, 11/01/14 ......................... 8,000,000 8,816,640
Series A, MBIA Insured, 5.875%, 6/01/24 .................................... 45,400,000 48,917,592
Series B, AMBAC Insured, 6.00%, 6/01/22 .................................... 10,650,000 11,442,680
Series B, MBIA Insured, 5.70%, 6/01/23 ..................................... 75,720,000 80,618,327
Series C, Pre-Refunded, 7.10%, 6/01/18 ..................................... 15,495,000 15,900,814
(a)Series A, FGIC Insured, 5.00%, 6/01/28 ..................................... 10,000,000 9,878,300
Lynwood RDA, Tax Allocation, Project Area, Series A, 6.50%, 7/01/13 ........... 6,705,000 7,176,898
Madera County COP, Valley Children's Hospital, MBIA Insured,
5.00%, 3/15/23 ............................................................. 14,500,000 14,261,040
5.75%, 3/15/28 ............................................................. 27,500,000 29,338,375
Pre-Refunded, 6.125%, 3/15/23 .............................................. 18,000,000 20,515,140
Madera USD, COP, 6.50%, 12/01/07 .............................................. 1,250,000 1,351,863
</TABLE>
36
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Madera-Chowchilla Power Authority Hydroelectric Revenue, Refunding, 8.00%, 1/01/14 .... $ 2,235,000 $ 2,499,266
Marin County COP, Capital Improvement Project, Pre-Refunded, 6.625%, 8/01/06 .......... 2,330,000 2,539,187
Martinez USD, Refunding, Series 1992, 6.00%,
8/01/06 ............................................................................ 1,260,000 1,316,070
8/01/10 ............................................................................ 1,265,000 1,321,470
Marysville COP, Capital Improvement Financing Project, 7.125%, 2/01/13 ................ 1,110,000 1,197,834
Marysville Hospital Revenue, Fremont Rideout Health, Refunding, Series A, AMBAC
Insured, 5.00%, 1/01/22 ............................................................. 5,000,000 4,926,150
Menlo Park CDA, MFHR, Gateway Project, Series A, FHA Insured, 8.25%, 12/01/28 ......... 3,470,000 3,561,920
Merced Irrigation District COP, Water Facilities Project, 6.40%, 11/01/10 ............. 3,580,000 3,958,728
Metropolitan Water District Revenue, Southern California Waterworks,
5.50%, 7/01/19 ..................................................................... 81,315,000 84,833,500
5.00%, 7/01/20 ..................................................................... 7,765,000 7,724,156
Series A, 5.00%, 7/01/26 ........................................................... 48,995,000 48,416,369
Series A, 5.00%, 7/01/37 ........................................................... 16,080,000 15,836,066
Series A, MBIA Insured, 5.00%, 7/01/30 ............................................. 27,430,000 27,086,028
Series C, 5.00%, 7/01/27 ........................................................... 95,705,000 94,555,583
Series C, 5.00%, 7/01/37 ........................................................... 24,390,000 24,020,004
Mid-Peninsula Regional Open Space District COP,
Series 1990, Pre-Refunded, 7.60%, 9/01/20 .......................................... 5,000,000 5,192,000
Special District Association Finance Corp., 5.75%, 9/01/20 ......................... 5,200,000 5,402,488
Mid-Peninsula Regional Open Space District, Series 1990, 7.50%,
9/01/07 ............................................................................ 1,215,000 1,257,440
9/01/08 ............................................................................ 1,305,000 1,350,362
9/01/09 ............................................................................ 1,400,000 1,448,384
9/01/10 ............................................................................ 1,500,000 1,551,840
Mill Valley Revenue COP, Pre-Refunded, 7.10%, 12/01/20 ................................ 2,750,000 2,973,355
Milpitas RDA, Tax Allocation, Redevelopment Project Area No. 1, MBIA Insured,
5.40%, 1/15/17 ..................................................................... 12,155,000 12,737,103
5.50%, 1/15/24 ..................................................................... 15,790,000 16,555,183
Modesto Health Facilities Revenue, Memorial Hospital Association,
Refunding, Series B, MBIA Insured, 5.25%, 6/01/21 .................................. 2,360,000 2,396,981
Series B, MBIA Insured, 5.125%, 6/01/17 ............................................ 1,000,000 1,019,370
Modesto Irrigation District COP,
Refunding and Capital Improvement Projects, Series A, MBIA Insured, Pre-Refunded,
6.00%, 10/01/21 ................................................................... 10,000,000 10,639,300
Refunding and Capital Improvements, Series B, 5.30%, 7/01/22 ....................... 5,000,000 5,027,550
Modesto PFA Lease Revenue, Capital Improvements and Refinancing Project, AMBAC Insured,
5.00%, 9/01/29 ..................................................................... 12,995,000 12,834,252
5.125%, 9/01/33 .................................................................... 9,605,000 9,639,098
Mojave Water Agency COP, Supplemental Water Entitlement, MBIA Insured,
5.45%, 9/01/15 ..................................................................... 6,150,000 6,515,433
5.55%, 9/01/22 ..................................................................... 10,005,000 10,521,258
Montclair RDA, Tax Allocation,
Redevelopment Project No. IV, 6.90%, 10/01/22 ...................................... 1,645,000 1,774,281
Redevelopment Project No. V, 6.90%, 10/01/22 ....................................... 4,245,000 4,578,615
Monterey County COP, Natividad Medical Center Improvement Project,
Series C, MBIA Insured, Pre-Refunded, 6.50%, 8/01/15 ............................... 3,500,000 4,074,945
Series C, MBIA Insured, Pre-Refunded, 6.60%, 8/01/23 ............................... 13,250,000 15,500,380
Series C, MBIA Insured, Pre-Refunded, 6.25%, 8/01/28 ............................... 13,385,000 15,438,527
</TABLE>
37
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Monterey County COP, Natividad Medical Center Improvement Project, (cont.)
Series E, MBIA Insured, 4.75%, 8/01/23 ............................................. $10,000,000 $ 9,501,300
Series E, MBIA Insured, 4.75%, 8/01/27 ............................................. 6,065,000 5,731,000
Monterey Park RDA, Tax Allocation, Atlantic-Garvey Redevelopment Project No. 1,
Refunding, 6.85%, 9/01/14 ........................................................... 13,680,000 14,823,238
Moreno Valley Special Tax, Towngate Community Facilities 8, Refunding,
Series A, FSA Insured, 5.875%, 12/01/15 ............................................. 5,830,000 6,279,668
Moreno Valley USD, COP,
Land Acquisition, Series E, FSA Insured, Pre-Refunded, 6.70%, 9/01/11 .............. 225,000 251,512
Land Acquisition, Series E, FSA Insured, Pre-Refunded, 6.75%, 9/01/27 .............. 2,895,000 3,240,721
Land Acquisition, Series F, FSA Insured, Pre-Refunded, 6.75%, 9/01/27 .............. 7,680,000 8,597,146
Palm Middle School, ETM, 7.00%, 9/01/01 ............................................ 10,000 10,823
Palm Middle School, Pre-Refunded, 7.10%, 9/01/02 ................................... 10,000 11,031
Palm Middle School, Pre-Refunded, 7.20%, 9/01/03 ................................... 10,000 11,054
Palm Middle School, Pre-Refunded, 7.30%, 9/01/05 ................................... 5,000 5,538
Refunding, 5.60%, 3/01/17 .......................................................... 5,000,000 5,300,700
Refunding, FSA Insured, 5.70%, 3/01/27 ............................................. 15,000,000 15,848,100
Mount Diablo USD, Special Tax, CFD No. 1, AMBAC Insured, 6.30%, 8/01/22 ............... 5,000,000 5,431,700
Mount Shasta Hospital Revenue COP, Mercy Medical Center, Series A, Pre-Refunded,
7.25%, 7/01/19 ...................................................................... 4,060,000 4,164,139
Mountain View COP, Capital Improvement Financing Authority Revenue,
City Hall, MBIA Insured, 6.25%, 8/01/12 ............................................ 3,110,000 3,333,702
City Hall/Community Theatre, MBIA Insured, 6.50%, 8/01/16 .......................... 2,000,000 2,160,920
Mountain View School District COP, Santa Clara County Financing Project, Pre-Refunded,
6.75%, 4/01/07 ..................................................................... 1,010,000 1,084,417
6.90%, 4/01/12 ..................................................................... 1,430,000 1,538,280
Mountain View Shoreline Regional Park, Community Tax Allocation, Series A, MBIA
Insured, 5.75%, 8/01/18 ............................................................. 9,605,000 10,268,706
Mountain View-Los Altos UHSD,
COP, Financing Project, Pre-Refunded, 7.40%, 8/01/16 ............................... 2,175,000 2,407,551
Series B, 5.70%, 5/01/22 ........................................................... 6,500,000 7,011,030
M-S-R Public Power Agency San Juan Project Revenue,
Refunding, Series F, AMBAC Insured, 6.00%, 7/01/20 ................................. 10,750,000 11,699,548
Series E, MBIA Insured, 6.00%, 7/01/22 ............................................. 8,490,000 8,865,767
Murrieta COP, Road Improvement Project, 6.00%, 4/01/27 ................................ 8,600,000 9,160,548
Napa Housing Facility Revenue, Napa Park Apartments, Series A, 6.35%, 6/20/35 ......... 6,125,000 6,522,696
Napa Mortgage Revenue, Refunding, Creekside II Apartments Project, Series A,
MBIA Insured, 6.625%, 7/01/25 ....................................................... 2,000,000 2,131,960
National City Community Development Commission MFHR, Park Villas Apartments,
Series A, 5.95%, 1/20/40 ............................................................ 10,455,000 10,936,976
Needles PFA Revenue, Tax Allocation, Redevelopment Project, Series A, 7.50%, 8/15/22 .. 1,580,000 1,650,010
Nevada County COP, Jail and Government Center Project, Refunding, FSA Insured,
5.875%, 10/01/19 .................................................................... 6,275,000 6,598,476
Nevada Power Authority Revenue, Bowman Hydroelectric Project, Refunding, 7.50%, 5/01/13 7,305,000 7,936,809
North City West School Facilities Financing Authority Special Tax, CFD No. 1,
Series C, AMBAC Insured, 5.30%,
9/01/22 ............................................................................ 10,000,000 10,232,400
9/01/27 ............................................................................ 9,900,000 10,113,939
Northern California Public Power Agency Revenue, Hydroelectric Project No. 1,
Refunding, Series A, MBIA Insured,
5.125%, 7/01/23 .................................................................... 59,805,000 60,079,505
5.50%, 7/01/24 ..................................................................... 10,000,000 10,443,800
5.00%, 7/01/28 ..................................................................... 63,030,000 62,261,664
5.20%, 7/01/32 ..................................................................... 43,675,000 44,116,118
</TABLE>
38
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Northern California Transmission Revenue, California/Oregon Transmission
Project, Series A, MBIA Insured, 6.00%, 5/01/24 .................................................. $ 7,625,000 $ 8,034,081
Norwalk Community Facilities Financing Authority Revenue, Tax Allocation,
Projects No. 1 and 2, Pre-Refunded, 8.00%, 12/01/19 .............................................. 14,720,000 15,490,003
Oakland COP, Oakland Museum, Refunding, Series A, AMBAC Insured, 6.00%, 4/01/12 ................... 8,000,000 8,549,840
Oakland GO, Measure I, FGIC Insured, 5.85%, 12/15/22 .............................................. 12,085,000 13,256,762
Oakland HFR,
Issue D-1, 6.80%, 7/01/99 ...................................................................... 215,000 215,935
Issue D-1, 6.875%, 1/01/00 ..................................................................... 225,000 228,103
Issue D-1, 6.875%, 7/01/00 ..................................................................... 225,000 228,006
Issue D-1, 6.95%, 1/01/01 ...................................................................... 230,000 233,296
Issue D-1, 6.95%, 7/01/01 ...................................................................... 135,000 137,433
Issue D-1, 7.10%, 1/01/10 ...................................................................... 3,055,000 3,195,744
Issue D-2, 6.95%, 7/01/01 ...................................................................... 240,000 244,325
Issue D-2, 7.10%, 1/01/10 ...................................................................... 1,120,000 1,171,016
Issue D-2, 7.15%, 1/01/24 ...................................................................... 5,800,000 6,048,936
Oakland Joint Powers Financing Authority Lease Revenue, Oakland Administration
Buildings, AMBAC Insured, 5.75%,
8/01/21 ........................................................................................ 12,500,000 13,522,500
8/01/26 ........................................................................................ 19,500,000 21,057,075
Oakland Revenue, Oakland YMCA Project, Refunding, Pre-Refunded, 7.40%, 6/01/10 .................... 5,405,000 5,763,784
Oakland State Building Authority Lease Revenue, Elihu M. Harris, Series A, AMBAC
Insured, 5.00%, 4/01/23 ......................................................................... 19,160,000 18,974,914
Oceanside Building Authority Revenue, Refunding, 7.75%, 11/01/04 .................................. 4,165,000 4,809,617
Oceanside COP,
Oceanside Civic Center Project, Refunding, MBIA Insured, 5.75%, 8/01/15 ........................ 5,000,000 5,438,700
Refunding, Series A, 6.375%, 4/01/12 ........................................................... 4,435,000 4,850,515
Refunding, Series A, 6.625%, 4/01/23 ........................................................... 9,000,000 9,120,780
Wastewater Systems Plan, Refunding, AMBAC Insured, 5.80%, 5/01/21 .............................. 4,500,000 4,790,250
Water System Project, Refunding, AMBAC Insured, 5.80%, 8/01/21 ................................. 4,750,000 5,068,013
Olivenhain Municipal Water District 1915 Act, AD No. 96-1, MBIA Insured,
5.375%, 9/02/17 ................................................................................ 2,845,000 2,935,784
5.45%, 9/02/27 ................................................................................. 11,105,000 11,455,696
Ontario Montclair School District COP,
Capital Projects, FSA Insured, 5.625%, 9/01/17 ................................................. 7,500,000 8,110,200
Series A, Pre-Refunded, 7.50%, 10/01/12 ........................................................ 1,735,000 1,885,043
Orange County Airport Revenue, Refunding, MBIA Insured, 5.625%, 7/01/12 ........................... 5,000,000 5,467,000
Orange County CFD, No. 87-4 Special Tax, Foothill Ranch, Pre-Refunded, 8.00%, 8/15/10 ............. 5,000,000 5,412,000
Orange County COP,
Civic Center Expansion Project, AMBAC Insured, Pre-Refunded, 6.00%, 8/01/21 .................... 4,500,000 4,805,505
Juvenile Justice Center Facilities, Refunding, AMBAC Insured, 6.375%, 6/01/11 .................. 5,000,000 5,455,150
Pre-Refunded, 7.50%, 6/01/09 ................................................................... 5,000,000 5,133,950
Pre-Refunded, 7.625%, 6/01/19 .................................................................. 16,500,000 16,945,170
Orange County Development Agency Tax Allocation, Santa Ana Heights Area Project, Refunding,
6.125%, 9/01/23 .................................................................................. 6,500,000 6,900,660
Orange County Financing Authority Tax Allocation Revenue, Refunding, Series A, MBIA Insured, 6.50%,
9/01/21 ........................................................................................ 5,330,000 5,741,849
9/01/22 ........................................................................................ 8,000,000 8,606,640
</TABLE>
39
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Orange County Recovery COP,
Refunding, Series A, MBIA Insured, 5.875%, 7/01/19 ............................. $17,100,000 $18,773,748
Series A, MBIA Insured, 5.80%, 7/01/16 ......................................... 10,380,000 11,368,695
Orange County Recovery, Refunding, Series A, MBIA Insured, 5.75%, 6/01/15 ......... 79,010,000 85,596,274
Orange County Sanitation District COP, 7.00%,
9/01/99 ........................................................................ 1,000,000 1,009,370
9/01/00 ........................................................................ 1,975,000 2,008,654
Orange County Transportation District COP, Business Acquisition Project,
Pre-Refunded, 6.75%, 12/01/05 ................................................... 2,865,000 3,054,491
Orange County Water District COP, Refunding, Series A,
5.50%, 8/15/14 ................................................................. 9,430,000 10,015,980
5.00%, 8/15/18 ................................................................. 5,000,000 4,987,400
Orange RDA, Tax Allocation Revenue, Northwest Redevelopment Project, Refunding,
Series B, 5.70%, 10/01/23 ....................................................... 8,530,000 8,804,837
Oroville PFA Revenue, Series A, AMBAC Insured, 6.30%, 9/15/20 ..................... 12,150,000 13,362,084
Oroville Wyandotte Irrigation District Revenue, Hydroelectric Sly Creek Power,
Refunding, 6.20%, 1/01/09 ....................................................... 8,915,000 9,549,213
Oxnard Public Facilities Corp. COP, AMBAC Insured, Pre-Refunded, 7.50%, 9/01/06 ... 15,995,000 16,289,788
Palm Desert 1915 Act, Limited Obligation, AD No. 92-1, Pre-Refunded, 7.60%, 9/02/12 1,290,000 1,348,308
Palm Desert Financing Authority Lease Revenue, Blythe County Administrative
Project, 6.625%, 8/01/26 ........................................................ 5,020,000 5,448,859
Palm Desert Financing Authority Tax Allocation Revenue,
Project Area No. 1, Series A, MBIA Insured, 6.625%, 4/01/23 .................... 1,215,000 1,324,800
Project Area No. 1, Series A, MBIA Insured, Pre-Refunded, 6.625%, 4/01/23 ...... 4,215,000 4,661,369
Project Area No.1, Refunding, MBIA Insured, 5.625%, 4/01/23 .................... 13,000,000 13,768,820
Project Area No.1, Series A, MBIA Insured, 5.95%, 4/01/24 ...................... 15,075,000 16,425,268
Palm Springs COP, Multiple Capital Facilities Project, Refunding, AMBAC Insured,
5.75%, 4/01/27 .................................................................. 11,570,000 12,546,855
Palm Springs Financing Authority Regional Airport Revenue, Tax Allocation,
Series B, 6.875%, 8/01/21 ....................................................... 2,230,000 2,370,691
Palmdale Civic Authority Revenue, Merged Redevelopment Project Areas,
Refunding, Series A, MBIA Insured, 6.15%, 9/01/24 .............................. 4,730,000 5,254,321
Series A, MBIA Insured, Pre-Refunded, 6.15%, 9/01/24 ........................... 6,850,000 7,784,340
Palmdale CRDA, Tax Allocation,
Merged Redevelopment Project, Refunding, MBIA Insured, 5.00%, 9/01/28 .......... 17,500,000 17,155,600
Merged Redevelopment Project, Refunding, MBIA Insured, 5.00%, 9/01/34 .......... 6,980,000 6,832,233
Series A, MBIA Insured, 5.75%, 9/01/27 ......................................... 10,435,000 11,344,306
Palmdale School District COP, 7.40%, 8/01/20 ...................................... 495,000 501,064
Palomar Community College District COP, Building Acquisition Project, Connie Lee
Insured, Pre-Refunded, 6.75%, 10/01/19 .......................................... 4,210,000 4,904,229
Panoche Water District COP, Pre-Refunded, 7.50%, 12/01/08 ......................... 2,665,000 2,822,022
Paramount RDA, Tax Allocation, Custodial Receipts, MBIA Insured, 6.25%, 8/01/23 ... 22,070,000 24,281,414
Pasadena COP, Art Center College of Design, Connie Lee Insured, 6.50%, 12/01/19 ... 8,250,000 9,254,850
Pasadena Water Revenue, 6.00%, 7/01/13 ............................................ 4,000,000 4,377,880
Perris PFA, Revenue,
Special Tax, ETM, Series A, 7.80%, 9/01/19 ..................................... 3,555,000 3,578,534
Special Tax, Series A, ETM, 7.45%, 9/01/01 ..................................... 205,000 206,853
Special Tax, Series A, ETM, 7.50%, 9/01/02 ..................................... 235,000 237,030
Special Tax, Series A, ETM, 7.55%, 9/01/03 ..................................... 270,000 272,276
Special Tax, Series A, ETM, 7.60%, 9/01/04 ..................................... 305,000 307,446
Special Tax, Series A, ETM, 7.60%, 9/01/05 ..................................... 325,000 327,340
Tax Allocation, Refunding, Series B, MBIA Insured, 6.35%, 8/15/17 .............. 5,280,000 5,770,670
Tax Allocation, Refunding, Series C, 7.10%, 11/15/17 ........................... 3,330,000 3,633,396
</TABLE>
40
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Perris RDA, Tax Allocation,
Central and North Perris Redevelopment Project, Series A, Pre-Refunded, 7.875%, 10/01/10 ... $ 2,935,000 $ 3,355,556
Central and North Perris Redevelopment Project, Series B, Pre-Refunded, 7.875%, 10/01/14 ... 4,535,000 5,126,863
Series 1991, 7.15%, 8/01/11 ................................................................ 865,000 927,695
Series 1991, 7.20%, 8/01/21 ................................................................ 2,040,000 2,178,434
Perris Special Tax,
CFD No. 8, Series A, ETM, 8.00%, 9/01/99 ................................................... 50,000 51,011
CFD No. 8, Series A, ETM, 8.05%, 9/01/00 ................................................... 65,000 69,288
CFD No. 8, Series A, ETM, 8.10%, 9/01/01 ................................................... 85,000 94,138
CFD No. 8, Series A, ETM, 8.15%, 9/01/02 ................................................... 100,000 114,444
CFD No. 8, Series A, Pre-Refunded, 8.30%, 9/01/18 .......................................... 6,040,000 7,362,518
CFD No. 91-1, 8.75%, 9/01/21 ............................................................... 5,395,000 5,670,415
Petaluma Community Development Commission MFR, Park Lane Apartments, Series A, 6.875%, 11/20/34 4,800,000 5,181,360
Pioneers Memorial Healthcare District, Refunding, AMBAC Insured, 5.125%, 10/01/24 ............. 7,500,000 7,502,925
Pittsburg PFA, Water Revenue, MBIA Insured, 5.50%, 6/01/27 .................................... 2,980,000 3,126,348
Placentia COP, RDA, Refunding, Series A, 6.90%, 1/01/14 ....................................... 1,770,000 1,953,107
Pleasanton COP,
Capital Improvements, 6.70%, 10/01/11 ...................................................... 2,180,000 2,345,091
Pleasanton Public Facilities Corp., Pre-Refunded, 7.875%, 9/01/14 .......................... 4,585,000 4,766,062
Pomona PFA, Revenue,
Refunding, Series P, 5.75%, 10/01/15 ....................................................... 6,490,000 6,846,171
Series H, AMBAC Insured, 7.40%, 5/01/18 .................................................... 10,205,000 10,434,817
Southwest Pomona Redevelopment Project, Refunding, Series W, MBIA Insured, 5.00%, 2/01/30 .. 5,300,000 5,233,962
Pomona RDA, Tax Allocation, Southwest Pomona Redevelopment Project, ETM, 11.45%, 1/01/07 ...... 12,475,000 16,189,307
Port Hueneme RDA, Tax Allocation, R-76 Project, Refunding, 6.50%, 5/01/23 ..................... 3,100,000 3,324,626
Port of Oakland Revenue, Series E, MBIA Insured,
6.25%, 11/01/05 ............................................................................ 1,525,000 1,678,461
6.30%, 11/01/06 ............................................................................ 1,050,000 1,155,546
6.40%, 11/01/07 ............................................................................ 500,000 551,030
6.40%, 11/01/22 ............................................................................ 11,495,000 12,518,975
Port of Oakland Special Facilities Revenue, Mitsui O.S.K. Lines Ltd., Series A,
6.70%, 1/01/07 ............................................................................. 6,100,000 6,591,599
6.75%, 1/01/12 ............................................................................. 4,890,000 5,286,726
6.80%, 1/01/19 ............................................................................. 8,075,000 8,742,157
Porterville COP,
Infrastructure Financing Project, AMBAC Insured, 5.00%, 7/01/28 ............................ 10,430,000 10,302,858
Public Building Project, Refunding, AMBAC Insured, 6.30%, 10/01/18 ......................... 1,950,000 2,130,551
Poway COP, Royal Mobile Home Park Project,
Capital Improvement, FSA Insured, Pre-Refunded, 7.00%, 7/01/20 ............................. 5,500,000 5,939,285
Refunding, FSA Insured, 5.875%, 8/01/15 .................................................... 6,250,000 6,822,875
Refunding, FSA Insured, 6.00%, 8/01/20 ..................................................... 5,400,000 5,941,188
Refunding, FSA Insured, 6.00%, 8/01/28 ..................................................... 15,000,000 16,512,000
Poway RDA, Tax Allocation, Sub-Parguay Redevelopment Project, Refunding, FGIC Insured,
5.50%, 12/15/23 ............................................................................ 23,000,000 24,017,520
5.75%, 12/15/26 ............................................................................ 11,710,000 12,496,678
Puerto Rico Commonwealth Highway and Transportation Authority Revenue,
Series A, 5.00%, 7/01/38 ................................................................... 85,000,000 82,994,000
Series Y, 5.00%, 7/01/36 ................................................................... 63,000,000 62,260,380
</TABLE>
41
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Puerto Rico Commonwealth Public Improvement, 4.75%, 7/01/23 ............................... $13,295,000 $12,722,118
Puerto Rico Electric Power Authority Power Revenue, Refunding, Series EE, 4.75%, 7/01/24 .. 19,200,000 18,276,864
Puerto Rico Electric Power Authority Revenue, Series DD, 5.00%, 7/01/28 ................... 23,250,000 22,827,548
Ramona Municipal Water District COP, 8.50%, 7/15/11 ....................................... 610,000 625,281
Rancho Cucamonga RDA, Tax Allocation, Rancho Redevelopment Project, Set-Aside
Housing, MBIA Insured, 5.25%, 9/01/21 .................................................... 8,330,000 8,484,272
Rancho Cucamonga Special Tax, CFD No. 7, Refunding, FSA Insured, 6.40%, 8/01/04 ........... 1,100,000 1,132,340
Rancho Cucamonga, Palmdale, Potterville and Colton HFA, SFMR, Series 1986, GNMA
Secured, 7.55%, 8/01/18 .................................................................. 5,085,000 5,473,850
Rancho Murieta Community Services District 1915 Act, ID No. 1,
8.25%, 9/02/01 ......................................................................... 755,000 786,302
8.25%, 9/02/02 ......................................................................... 725,000 754,754
8.30%, 9/02/03 ......................................................................... 755,000 785,978
8.40%, 9/02/04 ......................................................................... 760,000 791,168
8.40%, 9/02/05 ......................................................................... 745,000 775,091
8.40%, 9/02/06 ......................................................................... 760,000 790,537
Redlands USD, COP, Series A, FSA Insured,
6.15%, 9/01/11 ......................................................................... 680,000 690,710
6.25%, 9/01/27 ......................................................................... 4,310,000 4,371,116
Redwood City MFHR, Redwood Plaza Project, Refunding, Series A, GNMA Secured, 8.25%, 9/01/26 3,795,000 3,817,998
Redwood City PFA, Local Agency Revenue, Series B, Pre-Refunded, 7.25%, 7/15/11 ............ 3,750,000 4,132,688
Rialto COP,
FSA Insured, 5.75%, 2/01/22 ............................................................ 2,715,000 2,923,675
Series 1989, Pre-Refunded, 7.50%, 11/01/01 ............................................. 145,000 151,589
Series 1989, Pre-Refunded, 7.50%, 11/01/15 ............................................. 3,165,000 3,308,818
Rialto RDA, Tax Allocation, Agua Mansa Redevelopment Project, Pre-Refunded, 6.75%, 3/01/24 3,500,000 4,019,330
Richmond Joint Powers Financing Authority Revenue, Series B, Pre-Refunded, 7.00%, 5/15/07 . 2,000,000 2,121,780
Richmond Revenue, West Contra Costa YMCA Project, Pre-Refunded, 7.75%, 6/01/17 ............ 3,715,000 3,976,202
Ridgecrest COP, RDA, 7.60%, 3/01/13 ....................................................... 4,420,000 4,543,981
Ridgecrest RDA, Tax Allocation Revenue, Ridgecrest Redevelopment Project,
8.00%, 2/01/09 ......................................................................... 200,000 204,384
8.00%, 2/01/10 ......................................................................... 220,000 224,772
8.00%, 2/01/11 ......................................................................... 240,000 245,206
8.00%, 2/01/12 ......................................................................... 255,000 260,490
8.00%, 2/01/13 ......................................................................... 275,000 280,874
8.00%, 2/01/14 ......................................................................... 300,000 306,408
7.80%, 2/01/15 ......................................................................... 325,000 331,425
7.40%, 2/01/16 ......................................................................... 355,000 361,578
Riverside County Asset Leasing Corp. Leasehold Revenue, Hospital Project,
Series A, 6.375%, 6/01/09 .............................................................. 23,000,000 25,098,520
Series A, 6.50%, 6/01/12 ............................................................... 20,125,000 22,965,644
Series B, MBIA Insured, 5.00%, 6/01/19 ................................................. 18,865,000 18,839,910
Riverside County Board of Education COP, Capital Appreciation Financing Projects,
Series A, 6.65%, 11/01/17 ................................................................ 7,945,000 8,396,991
Riverside County CFD, Special Tax, No. 86-1,
8.75%, 9/01/16 ......................................................................... 14,135,000 14,351,972
Menifee Village Project, 7.875%, 9/01/11 ............................................... 23,085,000 23,175,724
Riverside County COP,
Capital Projects, Series A, Pre-Refunded, 6.875%, 11/01/09 ............................. 4,975,000 5,488,022
Desert Justice Facility Project, MBIA Insured, Pre-Refunded, 6.00%, 12/01/17 ........... 4,775,000 5,374,310
</TABLE>
42
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Riverside County COP, (cont.)
Desert Justice Facility Project, MBIA Insured, Pre-Refunded, 6.25%, 12/01/21 ... $4,625,000 $5,263,990
Family Law Court Project, MBIA Insured, 5.75%, 11/01/27 ........................ 5,295,000 5,801,679
Historic Courthouse, MBIA Insured, 5.875%, 11/01/27 ............................ 8,640,000 9,607,766
Riverside County Flood Control and Water Conservation District Elsinore Valley
AD, Zone 3, 7.875%,
9/01/03 ........................................................................ 165,000 191,796
9/01/04 ........................................................................ 180,000 213,869
9/01/05 ........................................................................ 190,000 230,139
9/01/06 ........................................................................ 205,000 252,644
9/01/07 ........................................................................ 225,000 281,392
9/01/08 ........................................................................ 240,000 303,007
9/01/09 ........................................................................ 260,000 331,495
9/01/10 ........................................................................ 280,000 360,643
9/01/11 ........................................................................ 305,000 396,561
9/01/12 ........................................................................ 325,000 428,266
9/01/13 ........................................................................ 350,000 463,568
9/01/14 ........................................................................ 380,000 507,159
9/01/15 ........................................................................ 410,000 548,613
9/01/16 ........................................................................ 440,000 590,814
9/01/17 ........................................................................ 475,000 642,214
Riverside County Housing Authority Revenue,
Breezewood Apartment Project, Refunding, Series C, 6.40%, 6/01/28 .............. 5,085,000 5,059,168
Riverside Apartment Project, Issue A, Pre-Refunded, 7.875%, 11/01/19 ........... 6,750,000 7,070,895
Riverside County PFA Revenue, Airport and Central Industrial Redevelopment Project,
7.80%, 2/01/08 ................................................................. 240,000 245,414
7.90%, 2/01/18 ................................................................. 3,300,000 3,375,075
Riverside County PFA, Tax Allocation Revenue, Redevelopment Projects, Series A,
5.625%, 10/01/33 ................................................................. 9,225,000 9,356,918
Riverside County SFMR,
Series A, GNMA Secured, 7.20%, 10/01/24 ........................................ 1,065,000 1,110,933
Series B, GNMA Secured, 7.60%, 11/01/19 ........................................ 475,000 509,034
Riverside MFHR,
Birchwood Park Apartments, Series A, FNMA Insured, 6.50%, 1/01/18 .............. 2,200,000 2,290,596
Palm Shadows Apartments, Series A, FNMA Insured, 6.50%, 1/01/18 ................ 4,010,000 4,172,726
Riverside RDA, Tax Allocation, Merged Redevelopment Project, Series A, MBIA
Insured, 5.625%, 8/01/23 ........................................................ 6,000,000 6,281,100
Riverside USD, COP, Series B, FSA Insured, 7.375%, 9/01/26 ........................ 5,555,000 6,169,383
Rocklin 1915 Act, Refunding,
7.55%, 9/02/03 ................................................................. 460,000 477,678
7.60%, 9/02/04 ................................................................. 495,000 513,919
7.65%, 9/02/05 ................................................................. 535,000 555,223
7.65%, 9/02/06 ................................................................. 580,000 601,924
7.65%, 9/02/07 ................................................................. 625,000 648,675
7.65%, 9/02/08 ................................................................. 675,000 700,373
Rocklin USD, CFD Special Tax No. 1, Pre-Refunded, 7.70%, 9/01/12 .................. 6,085,000 6,573,808
Rohnert Park HFAR, Rancho Feliz Mobile Home Park, FSA Insured, 5.375%, 12/01/26 ... 8,380,000 8,492,208
Roseville 1915 Act,
North Roseville Rocklin District No. 88-3, Refunding, 8.00%, 9/02/99 ........... 115,000 116,448
North Roseville Rocklin District No. 88-3, Refunding, 8.00%, 9/02/00 ........... 120,000 124,379
North Roseville Rocklin District No. 88-3, Refunding, 8.00%, 9/02/01 ........... 130,000 135,160
</TABLE>
43
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Roseville 1915 Act, (cont.)
North Roseville Rocklin District No. 88-3, Refunding, 8.10%, 9/02/02 ............. $ 135,000 $ 140,330
North Roseville Rocklin District No. 88-3, Refunding, 8.15%, 9/02/03 ............. 150,000 155,922
North Roseville Rocklin District No. 88-3, Refunding, 8.20%, 9/02/04 ............. 160,000 166,283
North Roseville Rocklin District No. 88-3, Refunding, 8.20%, 9/02/05 ............. 175,000 181,799
North Roseville Rocklin District No. 88-3, Refunding, 8.20%, 9/02/06 ............. 190,000 197,382
North Roseville Rocklin District No. 88-3, Refunding, 8.25%, 9/02/07 ............. 205,000 212,981
North Roseville Rocklin District No. 88-3, Refunding, 8.25%, 9/02/08 ............. 220,000 228,501
North Roseville Rocklin District No. 88-3, Refunding, 8.25%, 9/02/09 ............. 190,000 197,351
Rocky Ridge Harding District No. 88-4, Refunding, 8.00%, 9/02/99 ................. 220,000 222,770
Rocky Ridge Harding District No. 88-4, Refunding, 8.00%, 9/02/00 ................. 245,000 253,940
Rocky Ridge Harding District No. 88-4, Refunding, 8.00%, 9/02/01 ................. 260,000 270,319
Rocky Ridge Harding District No. 88-4, Refunding, 8.10%, 9/02/02 ................. 280,000 291,054
Rocky Ridge Harding District No. 88-4, Refunding, 8.15%, 9/02/03 ................. 305,000 317,041
Rocky Ridge Harding District No. 88-4, Refunding, 8.20%, 9/02/04 ................. 330,000 342,959
Rocky Ridge-Harding District No. 88-4, Refunding, 8.20%, 9/02/05 ................. 350,000 363,598
Roseville City School District COP, Financing Project, FSA Insured, 4.875%, 9/01/23.. 5,000,000 4,836,950
Roseville Special Tax,
CFD No. 2, Pre-Refunded, 8.00%, 9/01/06 .......................................... 355,000 384,966
CFD No. 2, Pre-Refunded, 8.25%, 9/01/21 .......................................... 7,165,000 7,794,230
North Central CFD No. 1, 8.00%, 11/01/02 ......................................... 1,725,000 1,867,313
North Central CFD No. 1, 8.10%, 11/01/03 ......................................... 1,860,000 2,011,311
North Central CFD No. 1, 8.40%, 11/01/10 ......................................... 10,000,000 10,814,300
North Central CFD No. 1, 8.60%, 11/01/17 ......................................... 12,000,000 13,160,880
Rubidoux Community Services District COP, Water System Improvement Project, AMBAC
Insured, Pre-Refunded, 6.25%, 12/01/24 ............................................ 5,450,000 6,055,441
Sacramento 1915 Act, North Natomas AD No. 88-3,
8.20%, 9/02/10 ................................................................... 790,000 802,996
8.20%, 9/02/11 ................................................................... 1,755,000 1,780,693
8.25%, 9/02/12 ................................................................... 2,265,000 2,303,867
8.25%, 9/02/13 ................................................................... 2,455,000 2,503,683
8.25%, 9/02/14 ................................................................... 2,650,000 2,705,385
Sacramento Area Council of Governments COP, Sacog Administrative Building
Project, Pre-Refunded, 7.125%, 7/01/16 ............................................ 1,500,000 1,599,540
Sacramento City Financing Authority Revenue, Series 1991,
6.60%, 11/01/05 .................................................................. 1,300,000 1,410,526
6.70%, 11/01/11 .................................................................. 920,000 993,140
Sacramento County Airport System Revenue,
Series A, MBIA Insured, 5.90%, 7/01/24 ........................................... 6,875,000 7,509,288
Series B, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ............................. 6,195,000 7,013,236
Sub Series D, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ......................... 10,000,000 11,320,800
Sacramento County CFD, Special Tax, Improvement Area 1, Series 1990,
8.20%, 12/01/10 .................................................................. 2,250,000 2,472,255
8.25%, 12/01/20 .................................................................. 7,610,000 8,367,804
Sacramento County COP,
Cherry Island Golf Course Project, Refunding, Series B, 6.80%, 7/01/12 ........... 2,325,000 2,414,815
Cherry Island Golf Course Project, Series B, 6.80%, 7/01/18 ...................... 3,500,000 3,634,435
Parking Facility Project, Refunding, Series A, 6.80%, 7/01/12 .................... 1,495,000 1,552,752
</TABLE>
44
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Sacramento County COP, (cont.)
Public Facilities Project, Coroner/Crime Laboratory, AMBAC Insured, 6.40%, 10/01/19 ...... $11,000,000 $12,378,740
Public Facilities Project, Coroner/Crime Laboratory, AMBAC Insured, 6.40%,10/01/24 ....... 29,500,000 33,197,530
Public Facilities Project, Coroner/Crime Laboratory, Refunding, AMBAC Insured,
4.75%, 10/01/27 ........................................................................ 37,250,000 35,463,490
Sacramento MUD, Electric Revenue,
Refunding, Series D, MBIA Insured, 5.25%, 11/15/20 ....................................... 10,000,000 10,200,700
Refunding, Series L, MBIA Insured, 5.125%, 7/01/22 ....................................... 14,000,000 14,070,840
Refunding, Series Z, FGIC Insured, 6.25%, 7/01/04 ........................................ 5,740,000 6,186,400
Refunding, Series Z, FGIC Insured, 6.35%, 7/01/05 ........................................ 3,000,000 3,234,990
Series I, MBIA Insured, 6.00%, 1/01/24 ................................................... 4,500,000 4,883,715
Series J, AMBAC Insured, 5.60%, 8/15/24 .................................................. 14,715,000 15,570,383
Subordinated Lien, Refunding, 8.00%, 11/15/10 ............................................ 16,110,000 16,190,389
Sacramento RDA, Tax Allocation,
Merged Downtown Redevelopment Project, Series A, MBIA Insured, Pre-Refunded,
6.50%, 11/01/13 ........................................................................ 2,140,000 2,289,629
Series A, MBIA Insured, 6.50%, 11/01/13 .................................................. 360,000 382,644
Sacramento Regional Transit District COP, Series A, 6.375%,
3/01/04 .................................................................................. 1,000,000 1,090,340
3/01/05 .................................................................................. 1,100,000 1,195,557
Sacramento-Yolo Port District Revenue, Port Facilities, Refunding, Series A, 7.25%, 7/01/13.. 11,645,000 12,577,997
San Bernardino 1915 Act, AD No. 961, Refunding,
7.60%, 9/02/02 ........................................................................... 855,000 884,745
7.65%, 9/02/03 ........................................................................... 920,000 951,998
7.70%, 9/02/04 ........................................................................... 990,000 1,024,224
7.75%, 9/02/05 ........................................................................... 1,065,000 1,101,370
San Bernardino City USD, COP, Financing Project, FSA Insured, 4.75%, 10/01/18 ............... 8,000,000 7,781,840
San Bernardino County COP,
Medical Center Financing Project, Refunding, 5.00%, 8/01/26 .............................. 15,045,000 14,459,148
Medical Center Financing Project, Refunding, MBIA Insured, 5.00%, 8/01/28 ................ 55,065,000 53,981,871
Medical Center Financing, Series A, MBIA Insured, 5.50%, 8/01/22 ......................... 40,830,000 42,597,531
Medical Center Financing, Series A, MBIA Insured, Pre-Refunded, 5.50%, 8/01/22 ........... 44,300,000 49,244,323
West Valley Detention Center Project, MBIA Insured, 6.25%, 11/01/04 ...................... 3,705,000 4,100,212
West Valley Detention Center Project, MBIA Insured, 6.35%, 11/01/05 ...................... 3,935,000 4,358,013
West Valley Detention Center Project, MBIA Insured, 6.40%, 11/01/06 ...................... 4,185,000 4,634,385
West Valley Detention Center Project, MBIA Insured, 6.50%, 11/01/12 ...................... 20,000,000 22,128,600
West Valley Detention Center Project, MBIA Insured, 6.20%, 11/01/25 ...................... 9,275,000 10,270,950
San Bernardino County Mortgage Revenue, Don Miguel Apartments Project, Refunding,
MBIA Insured, 6.00%, 9/01/03 .............................................................. 255,000 268,240
San Bernardino County SFMR,
GNMA Secured, 7.50%, 12/01/07 ............................................................ 425,000 458,571
GNMA Secured, 7.65%, 6/01/23 ............................................................. 2,075,000 2,266,813
Series A, GNMA/FNMA Insured, 6.20%, 5/01/21 .............................................. 600,000 605,322
Series B, 5.40%, 5/01/25 ................................................................. 7,945,000 8,057,104
San Bernardino Joint Powers Financing Authority Lease Revenue, City Hall Project,
Refunding, MBIA Insured,
5.60%, 1/01/15 ........................................................................... 3,215,000 3,484,803
5.70%, 1/01/23 ........................................................................... 6,315,000 6,742,273
San Bernardino Joint Powers Financing Authority Revenue COP, Police Station
Financing Project, 6.60%, 4/01/20.......................................................... 4,715,000 5,185,651
</TABLE>
45
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
San Bernardino Joint Powers Financing Authority Revenue, Tax Allocation,
Central City Merged Project, Refunding, Series A, ETM, 6.75%, 11/01/00 ........ $ 450,000 $ 474,251
Central City Merged Project, Refunding, Series A, ETM, 6.90%, 11/01/01 ........ 480,000 520,987
Central City Merged Project, Series A, Pre-Refunded, 7.00%, 11/01/02 .......... 510,000 564,147
Central City Merged Project, Series A, Pre-Refunded, 7.00%, 11/01/03 .......... 550,000 608,394
Central City Merged Project, Series A, Pre-Refunded, 7.00%, 11/01/04 .......... 585,000 647,109
Central City Merged Project, Series A, Pre-Refunded, 7.05%, 11/01/05 .......... 625,000 692,119
Central City Merged Project, Series A, Pre-Refunded, 7.05%, 11/01/06 .......... 670,000 741,951
Central City Merged Project, Series A, Pre-Refunded, 7.05%, 11/01/07 .......... 720,000 797,321
Central City Merged Project, Series A, Pre-Refunded, 7.10%, 11/01/20 .......... 15,585,000 17,277,687
Central City Merged Project, Series B, Pre-Refunded, 7.50%, 11/01/20 .......... 3,000,000 3,355,110
Refunding, Series A, FSA Insured, 5.75%, 10/01/15 ............................. 9,000,000 9,804,150
Refunding, Series A, FSA Insured, 5.75%, 10/01/25 ............................. 19,915,000 21,390,104
Tri-City Redevelopment Project, Series B, Pre-Refunded, 7.60%, 1/01/08 ........ 1,695,000 1,785,038
San Bernardino Municipal Water Department COP, FGIC Insured, 6.25%, 2/01/12 ...... 905,000 960,467
San Carlos Mortgage Revenue, Elms Project, FHA Insured, 6.875%, 8/01/37 .......... 8,465,000 9,068,808
San Diego Certificate Undivided Interest Revenue, Water Utility Fund Net Systems
Revenue, FGIC Insured, 4.75%, 8/01/28 .......................................... 56,000,000 53,276,160
San Diego Convention Center Expansion Financing Authority Lease Revenue, Series
A, 4.75%, 4/01/28 .............................................................. 6,000,000 5,709,960
San Diego County COP, MBIA Insured, 5.00%, 8/15/28 ............................... 26,000,000 25,488,320
San Diego County Regional Transportation Commission Sales Tax Revenue, Series A,
ETM, 6.00%, 4/01/08 ............................................................ 1,250,000 1,370,963
San Diego Housing Authority Revenue, President John Adams, Series B, GNMA Secured,
5.70%, 10/20/33 ................................................................ 9,180,000 9,492,212
San Diego IDR, San Diego Gas and Electric Co. Project, Series A, 6.40%, 9/01/18 .. 19,800,000 21,490,920
San Diego Public Facilities Financing Authority Sewer Revenue, FGIC Insured,
5.00%, 5/15/20 ................................................................ 9,500,000 9,450,505
5.00%, 5/15/25 ................................................................ 22,400,000 22,141,280
Series B, 5.25%, 5/15/27 ...................................................... 6,175,000 6,281,272
San Diego RDA, Tax Allocation, Horton Project, Refunding, Series A, FSA Insured,
6.00%, 11/01/15 ................................................................ 5,000,000 5,592,350
San Diego SFMR, Issue A, 9.20%, 7/15/16 .......................................... 35,000 37,421
San Diego Special Tax, CFD No. 1, Series A, Pre-Refunded, 8.50%, 9/01/16 ......... 28,845,000 32,742,248
San Elijo Joint Powers Authority Revenue, Water Pollution Control Facilities,
Refunding, FGIC Insured, 5.00%, 3/01/20 ........................................ 5,000,000 4,974,100
San Francisco BART District Sales Tax Revenue,
FGIC Insured, Pre-Refunded, 6.60%, 7/01/12 .................................... 1,440,000 1,566,662
Refunding, AMBAC Insured, 5.00%, 7/01/28 ...................................... 20,000,000 19,846,600
San Francisco City and County Airport Commission International Airport Revenue,
Issue 12-A, Second Series, 5.90%, 5/01/26 ..................................... 45,000,000 47,875,500
Issue 15A, Second Series, FSA Insured, 5.00%, 5/01/28 ......................... 41,650,000 40,773,268
Issue 16A, Second Series, FSA Insured, 5.125%, 5/01/23 ........................ 24,635,000 24,516,013
Issue 16A, Second Series, FSA Insured, 5.00%, 5/01/29 ......................... 37,805,000 36,997,863
Issue 22, Second Series, AMBAC Insured, 4.75%, 5/01/23 ........................ 22,730,000 21,453,029
Issue 22, Second Series, AMBAC Insured, 4.75%, 5/01/29 ........................ 44,130,000 41,379,818
Issue 6, AMBAC Insured, 6.50%, 5/01/18 ........................................ 2,500,000 2,798,075
Issue 6, AMBAC Insured, 6.60%, 5/01/24 ........................................ 13,250,000 14,825,028
Issue 9A, FGIC Insured, 5.90%, 5/01/25 ........................................ 46,415,000 49,725,782
Issue 9B, Second Series, FGIC Insured, Pre-Refunded, 6.00%, 5/01/25 ........... 10,060,000 11,340,940
Second Series, Issue 16B, FSA Insured, 4.75%, 5/01/29 ......................... 9,000,000 8,557,650
Second Series, Issue 18A, FGIC Insured, 5.00%, 5/01/29 ........................ 8,800,000 8,612,120
</TABLE>
46
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
San Francisco City and County COP, San Francisco Courthouse Project, FSA Insured,
5.875%, 4/01/21 ............................................................................. $ 2,810,000 $ 3,046,096
San Francisco City and County Public Utilities Commission Water Revenue,
Refunding, Series A, 6.50%, 11/01/09 ....................................................... 4,000,000 4,415,800
Series A, 5.00%, 11/01/21 .................................................................. 5,000,000 4,933,250
San Francisco City and County RDA,
Hotel Tax Revenue, FSA Insured, 6.75%, 7/01/25 ............................................. 315,000 357,764
Hotel Tax Revenue, FSA Insured, Pre-Refunded, 6.75%, 7/01/25 ............................... 9,100,000 10,545,535
Lease Revenue, George R. Moscone Center, Refunding, Series 1992, 5.50%, 7/01/18 ............ 22,170,000 22,714,939
MFHR, 1045 Mission Apartments, Series C, GNMA Secured, 5.35%, 12/20/40 ..................... 7,715,000 7,754,347
Mortgage Revenue, Refunding, Series A, MBIA Insured, 6.65%, 7/01/24 ........................ 5,645,000 5,681,918
San Francisco City and County Revenue, Irwin Memorial Blood Center, Series A,
6.80%, 12/01/21 ............................................................................. 3,000,000 3,243,450
San Gabriel Valley Mosquito Abatement District COP, Lease Finance, Series R,
6.60%, 8/01/12 .............................................................................. 1,000,000 1,025,080
San Gabriel Valley Schools Financing Authority Revenue,
Oxnard Union High School, Pre-Refunded, 6.50%, 3/01/18 ..................................... 3,620,000 4,054,834
Oxnard Union High School, Pre-Refunded, 6.60%, 3/01/24 ..................................... 4,145,000 4,657,861
Pomona USD Financing, 5.80%, 2/01/26 ....................................................... 5,150,000 5,452,254
Series A, 7.70%, 11/01/19 .................................................................. 1,765,000 1,829,211
San Gorgonio Memorial Health Care District Health Facility Revenue, Pre-Refunded,
6.375%, 6/01/08 ............................................................................. 1,815,000 2,038,045
San Joaquin Area Flood Control Agency 1915 Act, Flood Protection and Restoration
Assessment, FSA Insured, 6.00%, 9/02/14 ..................................................... 10,125,000 10,514,813
San Joaquin County COP, General Hospital Project,
6.25%, 9/01/13 ............................................................................. 32,880,000 35,215,795
6.625%, 9/01/20 ............................................................................ 36,500,000 39,569,285
San Joaquin County Special Tax, CFD No. 8,
7.625%, 9/01/10 ............................................................................ 1,420,000 1,448,457
7.75%, 9/01/20 ............................................................................. 2,990,000 3,061,999
San Joaquin Hills Transportation Corridor Agency Toll Road Revenue,
5.00%, 1/01/33 ............................................................................. 82,040,000 78,432,701
Refunding, Series A, 5.50%, 1/15/28 ........................................................ 247,300,000 252,718,343
Refunding, Series A, MBIA Insured, 5.375%, 1/15/29 ......................................... 91,470,000 94,232,394
Refunding, Series A, MBIA Insured, 5.25%, 1/15/30 .......................................... 28,000,000 28,468,720
Senior Lien, Pre-Refunded, 7.00%, 1/01/30 .................................................. 85,535,000 97,107,030
Senior Lien, Pre-Refunded, 6.75%, 1/01/32 .................................................. 64,320,000 72,464,842
San Jose Airport Revenue, Refunding, MBIA Insured, 5.75%, 3/01/16 ............................. 13,600,000 14,335,896
San Jose Financing Authority Revenue, Convention Center Project,
Refunding, Series C, 6.40%, 9/01/17 ........................................................ 16,100,000 17,276,588
Series C, 6.40%, 9/01/22 ................................................................... 55,550,000 59,450,166
San Jose GO, 1915 Act, ID 87-198SJ, Refunding, 7.90%, 9/02/99 ................................. 125,000 126,398
San Jose RDA,
MFHR, Miraido Village, Series A, 5.75%, 7/20/38 ............................................ 7,155,000 7,384,246
Tax Allocation, Housing, Set-Aside Merged Area, Series E, MBIA Insured, 5.85%, 8/01/27 ..... 7,325,000 7,972,017
Tax Allocation, Merged Area Redevelopment Project, AMBAC Insured, 4.75%, 8/01/23 ........... 13,685,000 13,039,205
Tax Allocation, Merged Area Redevelopment Project, AMBAC Insured, 5.00%, 8/01/31 ........... 4,000,000 3,930,480
Tax Allocation, Merged Area Redevelopment Project, MBIA Insured, 5.00%, 8/01/21 ............ 35,235,000 34,858,690
Tax Allocation, Merged Area Redevelopment Project, MBIA Insured, 5.625%, 8/01/28 ........... 24,135,000 25,637,645
Tax Allocation, Merged Area Redevelopment Project, Refunding, MBIA Insured, 5.00%, 8/01/20.. 35,665,000 35,339,379
San Leandro RDA, RMR, Pre-Refunded, 11.25%, 4/01/13 ........................................... 65,000 87,322
San Lorenzo USD, COP, Capital Facilities Project, 7.20%, 8/01/12 .............................. 3,500,000 3,591,490
</TABLE>
47
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
San Luis Obispo County COP, Jail Expansion Project,
6.75%, 10/01/16 .................................................................................. $ 1,830,000 $ 1,892,934
6.80%, 10/01/21 .................................................................................. 1,475,000 1,524,914
San Marcos PFA Revenue, Series A, 6.25%, 9/02/22 .................................................... 25,000,000 27,077,000
San Marcos Public Facilities Authority Revenue,
Capital Improvement, 8.25%, 1/01/19 .............................................................. 17,065,000 17,876,441
Civic Center, Mission Blvd. Project, Refunding and Improvement, Series A, 6.15%, 8/01/13 ......... 11,670,000 12,078,217
Civic Center, Mission Blvd. Project, Refunding and Improvement, Series A, 6.20%, 8/01/22 ......... 7,895,000 8,151,509
Rancheros Mobilehome Park Project, 7.00%, 10/01/24 ............................................... 1,495,000 1,590,157
Refunding, 5.80%, 9/01/18 ........................................................................ 4,750,000 4,836,973
Tax Allocation, Refunding, Series A, FSA Insured, 5.50%, 8/01/23 ................................. 18,000,000 18,708,300
San Marcos Special Tax, CFD No. 8, 7.625%, 9/01/19 ............................................... 10,505,000 10,909,443
San Marcos USD, School Facilities ID No. 1, AMBAC Insured, 5.80%, 11/01/14 ....................... 5,000,000 5,538,800
San Mateo County Board of Education COP, Administrative Building Project, Pre-Refunded,
7.10%, 5/01/21 .................................................................................... 1,185,000 1,211,082
San Mateo County Joint Powers Authority Lease Revenue, Capital Projects, Series A, FSA Insured,
5.125%, 7/15/28 .................................................................................. 4,005,000 4,020,019
Pre-Refunded, 5.75%, 7/15/27 ..................................................................... 9,000,000 10,123,920
San Mateo County Joint Powers Financing Authority Lease Revenue, San Mateo County Health Care Center,
Series A, FSA Insured, Pre-Refunded, 5.75%, 7/15/22 ............................................... 28,445,000 31,712,477
San Mateo Flood Control District COP, Colma Creek Flood Control Zone, MBIA
Insured, 5.125%, 8/01/32 .......................................................................... 10,145,000 10,180,609
San Mateo RDA, Tax Allocation, Merged Area, Series A, 5.70%, 8/01/27 ................................ 6,330,000 6,569,527
San Pablo RDA, Tax Allocation, Merged Project Area, FGIC Insured, 6.25%, 12/01/19 ................... 3,500,000 3,901,555
San Rafael RDA, Tax Allocation, Central San Rafael Redevelopment, Refunding,
FGIC Insured, 6.45%, 12/01/17 ..................................................................... 6,740,000 7,441,364
San Rafael Sanitation District COP, Waste Water Facilities Financing, 6.80%, 8/01/11 ................ 2,200,000 2,355,826
San Ramon COP, Capital Improvement Projects, Series 1993, 6.00%, 3/01/18 ............................ 1,730,000 1,831,119
San Ramon PFA, Tax Allocation Revenue,
MBIA Insured, 5.30%, 2/01/28 ..................................................................... 19,610,000 19,964,157
Pre-Refunded, 6.90%, 2/01/24 ..................................................................... 6,140,000 7,155,495
Refunding, 6.90%, 2/01/24 ........................................................................ 6,910,000 7,739,407
San Ramon Valley COP, Fire Protection District, Financing Corp., Refunding, 6.00%, 7/01/19 .......... 6,275,000 6,760,497
San Ramon Valley USD, COP,
Measure A, Capital Project, Series A, 5.95%, 10/01/01 ............................................ 6,925,000 7,075,965
Pre-Refunded, 7.70%, 2/01/10 ..................................................................... 6,000,000 6,762,780
Refunding, 7.55%, 2/01/04 ........................................................................ 6,505,000 6,563,090
Refunding, Series 1992, 7.00%, 2/01/22 ........................................................... 20,210,000 21,352,876
Series A, 6.35%, 10/01/01 ........................................................................ 11,435,000 11,719,960
Santa Ana COP, Parking Facilities Project, Refunding, Series A, AMBAC Insured, 6.125%, 6/01/16 ...... 2,070,000 2,269,258
Santa Ana CRDA,
Refunding, Series C, Pre-Refunded, 6.75%, 9/01/19 ................................................ 2,260,000 2,339,145
Tax Allocation, Mainplace Project, Pre-Refunded, 7.40%, 9/01/19 .................................. 2,000,000 2,075,200
Tax Allocation, Refunding, Series B, 7.375%, 9/01/09 ............................................. 10,105,000 10,483,938
Tax Allocation, Refunding, Series B, 6.75%, 9/01/19 .............................................. 14,980,000 15,504,600
Tax Allocation, Series A, Pre-Refunded, 7.25%, 9/01/19 ........................................... 2,500,000 2,592,525
Tax Allocation, Series C, Pre-Refunded, 7.25%, 9/01/17 ........................................... 6,000,000 6,222,060
Santa Ana Financing Authority Water Revenue, MBIA Insured, 6.125%, 9/01/24 .......................... 5,000,000 5,462,050
Santa Ana HMR, Series A, FGIC Insured, 9.50%, 6/01/12 ............................................... 45,000 45,800
</TABLE>
48
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Santa Barbara COP,
California Health Facilities, Loan Program, 7.65%, 5/01/15 ........................... $ 1,730,000 $ 1,830,063
Harbor Project, Refunding, 6.75%, 10/01/27 ........................................... 8,090,000 8,856,528
Santa Barbara Housing Authority Revenue, Refunding and Acquisition, 7.93%, 11/15/20 ..... 5,955,000 6,105,423
Santa Barbara SFMR, GNMA Secured,
7.625%, 10/01/10 ..................................................................... 335,000 356,782
7.65%, 10/01/23 ...................................................................... 980,000 1,049,296
Santa Clara County COP, Terraces of Los Gatos Project, Pre-Refunded, 6.90%, 3/01/18 ..... 4,000,000 4,330,720
Santa Clara County Financing Authority Lease Revenue,
Refunding, Series A, AMBAC Insured, 5.00%, 11/15/22 .................................. 20,000,000 19,834,600
Valley Medical Center Facilities, Replacement Project, Series A, AMBAC Insured,
Pre-Refunded, 6.75%, 11/15/20 ...................................................... 13,000,000 15,181,010
Santa Clara Electric Revenue, Subordinated Lien, Refunding, Series A, AMBAC
Insured, 5.00%, 7/01/27 ................................................................ 19,000,000 18,771,810
Santa Clara Housing Authority MFHR,
Arastradero Park Apartments Project, Series A, 6.65%, 5/20/35 ........................ 6,465,000 7,059,327
Elana Gardens Apartments Project, Series A, 6.40%, 6/20/35 ........................... 5,625,000 5,960,644
Sierra Vista I Apartments Project, Series A, 6.65%, 6/20/35 .......................... 3,860,000 4,217,976
Santa Clara Valley Water District COP, Refunding and Improvement, Series A, FGIC
Insured, 6.00%, 2/01/24 ................................................................ 17,000,000 18,506,200
Santa Clarita COP, Refunding, MBIA Insured,
5.00%, 10/01/21 ...................................................................... 5,105,000 5,037,104
5.875%, 5/20/26 ...................................................................... 16,130,000 16,801,169
Santa Cruz City School District COP, Education Center Financing Project,
Pre-Refunded, 7.00%, 5/01/24 ........................................................... 3,150,000 3,665,939
Santa Cruz County Housing Authority MFHR, Series B, 7.75%, 7/01/23 ...................... 9,230,000 9,632,797
Santa Margarita/Dana Point Authority Revenue, ID 3, 3A, 4, and 4A,
Refunding, Series B, MBIA Insured, 5.75%, 8/01/20 ...................................... 7,000,000 7,488,880
Santa Maria Bonita School District COP, MBIA Insured,
7.00%, 3/01/16 ....................................................................... 480,000 517,963
Pre-Refunded, 7.00%, 3/01/16 ......................................................... 2,270,000 2,464,017
Santa Maria COP, Revenue, Marian Medical Center, Pre-Refunded, 6.75%, 9/01/22 ........... 3,600,000 4,023,720
Santa Rosa Central Parking Service Facilities District Project No. 89-1,
Pre-Refunded, 7.60%, 7/02/15 ........................................................... 3,150,000 3,247,272
Seal Beach RDA, Subordinated Lien, Tax Allocation Revenue, Riverfront, Refunding,
Series A, 6.70%, 9/01/13 ............................................................... 2,880,000 2,923,517
Shafter Joint Powers Financing Authority Lease Revenue, Community Correctional
Facility Project, Series A,
5.95%, 1/01/11 ....................................................................... 1,880,000 2,033,746
6.05%, 1/01/17 ....................................................................... 5,135,000 5,535,992
Shasta Joint Powers Financing Authority Lease Revenue, Courthouse County
Improvement Project, Series A, Pre-Refunded,
6.60%, 6/01/12 ....................................................................... 1,000,000 1,108,060
6.70%, 6/01/23 ....................................................................... 2,500,000 2,777,525
Sierra View Local Hospital District Revenue, Insured Health Facilities,
Pre-Refunded, 6.40%, 3/01/22 ........................................................... 15,000,000 16,461,450
Simi Valley SFRMR, Series A, 7.70%, 3/01/25 ............................................. 920,000 987,178
Snowline Joint USD, COP, Pre-Refunded, 7.25%, 4/01/18 ................................... 1,000,000 1,121,960
Soledad RDA, Tax Allocation, Soledad Redevelopment Project, Pre-Refunded, 7.40%, 11/01/12 3,855,000 4,409,310
Sonoma County Office of Education COP, Series 1990, Pre-Refunded, 7.375%, 7/01/20 ....... 1,745,000 1,866,033
South Gate PFA Revenue, Tax Allocation,
South Gate Redevelopment Project, Series A, Pre-Refunded, 7.60%, 9/01/09 ............. 3,050,000 3,143,422
South Gate Redevelopment Project No. 1, AMBAC Insured, 5.875%, 9/01/24 ............... 8,505,000 9,099,755
South Napa Waste Management Authority Revenue, Solid Waste Transfer Facilities
Project, 6.50%, 2/15/14 ................................................................ 4,500,000 4,866,525
</TABLE>
49
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
South Orange County PFA, Special Tax Revenue,
Foothill Area, Series C, FGIC Insured, 5.75%, 8/15/18 .............................. $ 5,000,000 $ 5,405,500
Senior Lien, Refunding, Series A, MBIA Insured, 6.00%, 9/01/18 ..................... 18,850,000 20,577,791
South San Francisco 1915 Act, Gateway AD No. ST-82-2, 8.00%,
9/02/99 ............................................................................ 1,335,000 1,351,808
9/02/00 ............................................................................ 1,455,000 1,507,424
9/02/01 ............................................................................ 1,570,000 1,631,450
9/02/02 ............................................................................ 1,675,000 1,739,521
Southern California HFA SFMR,
GNMA Secured, 7.625%, 10/01/22 ..................................................... 3,130,000 3,230,630
GNMA Secured, 7.75%, 3/01/24 ....................................................... 4,510,000 4,704,426
Series A, GNMA Secured, 6.75%, 9/01/22 ............................................. 670,000 704,512
Series B, GNMA Secured, 6.90%, 10/01/24 ............................................ 1,140,000 1,196,521
Southern California Public Power Authority Power Project Revenue,
6.75%, 7/01/13 ..................................................................... 10,000,000 12,179,600
Hydroelectric-Hoover Uprating, Refunding, 6.00%, 10/01/17 .......................... 7,795,000 8,154,739
Multi-Purpose Projects, 6.00%, 7/01/18 ............................................. 29,645,000 30,253,908
Palo Verde, Refunding, Series A, AMBAC Insured, ETM, 5.00%, 7/01/15 ................ 11,000,000 11,062,480
Palo Verde, Refunding, Series A, FSA Insured, ETM, 5.00%, 7/01/15 .................. 6,960,000 7,021,248
San Juan Project Unit 3, Series A, MBIA Insured, 5.00%, 1/01/20 .................... 6,790,000 6,754,760
Southern California Public Power Authority Transmission Project Revenue,
Southern Transmission, Refunding,
6.125%, 7/01/18 .................................................................... 51,035,000 55,076,972
5.50%, 7/01/20 ..................................................................... 19,785,000 20,289,320
5.75%, 7/01/21 ..................................................................... 22,530,000 23,722,738
MBIA Insured, 5.75%, 7/01/21 ....................................................... 16,335,000 17,225,094
Southern Kern USD, COP, Pre-Refunded, 7.10%, 9/01/17 .................................. 2,250,000 2,539,845
Standard Elementary School District COP, Pre-Refunded, 7.375%, 6/01/11 ................ 1,390,000 1,503,674
Stockton Central Parking District, Refunding, Series 1991, 7.90%, 8/01/11 ............. 5,700,000 5,730,210
Stockton East Water District COP, 1990 Project,
Series A, AMBAC Insured, 6.40%, 4/01/22 ............................................ 12,925,000 13,996,612
Series A, AMBAC Insured, Pre-Refunded, 6.40%, 4/01/22 .............................. 7,075,000 7,790,141
Series B, 7.45%, 4/01/05 ........................................................... 28,575,000 55,080,313
Stockton Health Facilities Revenue, St. Joseph Medical Center, Series A, MBIA
Insured, 5.50%, 6/01/23 .............................................................. 5,000,000 5,205,650
Stockton PFA Special Tax, CFD No. 90-4, Pre-Refunded, 8.50%, 9/01/16 .................. 8,000,000 8,806,240
Stockton Port District Port Facilities Revenue, Refunding and Improvement,
Series A, FSA Insured, 5.95%, 7/01/17 ................................................ 5,095,000 5,657,794
Stockton Revenue COP, Wastewater System Project, Series A, MBIA Insured, 5.20%, 9/01/29 6,965,000 7,006,372
Stockton Special Tax, CFD No. 90-2,
Brookside, Series 305, Pre-Refunded, 8.50%, 8/01/09 ................................ 1,430,000 1,554,482
Brookside, Series 305, Pre-Refunded, 8.65%, 8/01/15 ................................ 2,710,000 2,951,109
Series 2, ETM, 7.30%, 8/01/00 ...................................................... 725,000 763,055
Series 2, Pre-Refunded, 7.35%, 8/01/01 ............................................. 780,000 836,402
Series 2, Pre-Refunded, 7.40%, 8/01/02 ............................................. 835,000 895,913
Series 2, Pre-Refunded, 7.45%, 8/01/03 ............................................. 895,000 960,863
Series 2, Pre-Refunded, 7.50%, 8/01/04 ............................................. 965,000 1,036,642
Series 2, Pre-Refunded, 7.70%, 8/01/09 ............................................. 3,000,000 3,230,400
Series 6, 7.75%, 8/01/15 ........................................................... 3,000,000 3,113,010
Suisun City COP, Civic Center Project, Refunding, 6.45%, 11/01/15 ..................... 2,105,000 2,266,285
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Suisun City RDA, Tax Allocation, Suisun City Redevelopment Project, Refunding, MBIA Insured,
6.00%, 10/01/18 .................................................................................. $ 3,285,000 $ 3,590,308
5.90%, 10/01/23 .................................................................................. 3,450,000 3,741,836
Sunnyvale Financing Authority Utilities Revenue, Wastewater Reuse and Sludge, Series A,
6.30%, 10/01/12 .................................................................................... 4,735,000 4,954,609
Tehachapi COP, Series 1990, 8.20%, 11/01/20 ......................................................... 2,500,000 2,640,900
Tehachapi Cummings County Water District Revenue COP, Capital Improvement Project, MBIA Insured,
Pre-Refunded, 6.30%, 8/01/14 ....................................................................... 3,000,000 3,275,700
Tehachapi USD, COP, Tompkins Elementary School Project, Pre-Refunded, 7.80%, 2/01/21 ................ 2,285,000 2,503,743
Temecula Valley USD,
Series D, FGIC Insured, 6.00%, 9/01/14 ........................................................... 1,250,000 1,355,175
Series D, FGIC Insured, 6.125%, 9/01/19 .......................................................... 3,110,000 3,366,295
Series E, FSA Insured, 6.35%, 9/01/19 ............................................................ 5,460,000 6,160,300
Thousand Oaks RDA,
MFR, The Shadows Apartments, Refunding, Series A, FNMA Insured, 5.75%, 11/01/27 .................. 7,530,000 7,819,754
Tax Allocation, Thousand Oaks Boulevard Redevelopment, Refunding, MBIA Insured,
5.375%, 12/01/25 ................................................................................ 24,485,000 25,069,947
Thousand Oaks SFHMR,
Capital Appreciation, Series A, GNMA Secured, 8.00%, 9/01/23 ..................................... 144,000 279,913
Refunding, Series A, GNMA Secured, 7.45%, 9/01/10 ................................................ 225,000 238,286
Refunding, Series A, GNMA Secured, 7.55%, 9/01/15 ................................................ 320,000 336,976
Refunding, Series A, GNMA Secured, 7.625%, 3/01/23 ............................................... 895,000 914,592
Torrance Hospital Revenue,
Little Co. of Mary Hospital, Pre-Refunded, 6.875%, 7/01/15 ....................................... 3,685,000 3,965,760
Torrance Memorial Hospital Medical Center, Refunding, 6.75%, 1/01/12 ............................. 2,000,000 2,041,600
Torrance RDA, Tax Allocation, Industrial Redevelopment Project, Pre-Refunded,
7.75%, 9/01/13 ..................................................................................... 7,500,000 7,792,425
Trabuco Canyon PFA, Special Tax Revenue, Refunding,
Series A, FSA Insured, 6.00%, 10/01/10 ........................................................... 13,775,000 15,745,514
Series A, FSA Insured, 6.10%, 10/01/15 ........................................................... 13,220,000 15,393,500
Series C, FSA Insured, 6.00%, 7/01/12 ............................................................ 3,040,000 3,503,965
Series C, FSA Insured, 6.10%, 7/01/19 ............................................................ 5,215,000 6,034,172
Tracy Area Public Facilities Financing Agency Special Tax, CFD No. 8,
Refunding, Series H, MBIA Insured, 5.875%, 10/01/19 .............................................. 18,250,000 20,140,518
Series C, Pre-Refunded, 7.80%, 10/01/16 .......................................................... 5,000,000 5,426,600
Tracy COP, I-205 Corridor Improvement and Refinancing Project, 5.125%, 10/01/27 ..................... 6,695,000 6,720,910
Travis USD, COP, Foxboro Elementary School Construction Project,
ETM, 6.00%, 9/01/99 .............................................................................. 320,000 323,926
ETM, 6.10%, 9/01/00 .............................................................................. 335,000 348,447
ETM, 6.20%, 9/01/01 .............................................................................. 355,000 378,157
ETM, 6.30%, 9/01/02 .............................................................................. 170,000 184,853
Pre-Refunded, 6.40%, 9/01/03 ..................................................................... 405,000 448,862
Pre-Refunded, 6.50%, 9/01/04 ..................................................................... 430,000 477,201
Pre-Refunded, 6.60%, 9/01/05 ..................................................................... 455,000 506,388
Pre-Refunded, 6.70%, 9/01/06 ..................................................................... 490,000 546,899
Pre-Refunded, 7.00%, 9/01/12 ..................................................................... 3,670,000 4,131,099
Tri-Cities Municipal Water District COP, Special Districts Lease Program, Series T, Pre-Refunded,
6.55%, 12/01/17 .................................................................................... 2,665,000 2,978,484
Tri-City Hospital District Revenue, Refunding, Series A, MBIA Insured, 5.625%, 2/15/17 .............. 5,000,000 5,357,850
Tri-Dam Power Authority Revenue, Hydroelectric Sand Bar Project, Refunding, 7.50%, 1/01/17 .......... 47,150,000 49,446,677
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Trinity County PUD, COP, Electric District Facilities, Refunding, Series 1993,
6.60%, 4/01/11 ............................................................................. $ 2,565,000 $ 2,750,886
6.75%, 4/01/23 ............................................................................. 4,000,000 4,284,280
Truckee-Donner PUD, COP, Water System Improvement Project, MBIA Insured, Pre-Refunded,
6.75%, 11/15/21 .............................................................................. 500,000 551,270
Tulare County COP,
Capital Improvement Program, Series A, MBIA Insured, Pre-Refunded, 6.00%, 2/15/16 .......... 4,250,000 4,853,075
Financing Project, Series B, Pre-Refunded, 6.875%, 11/15/12 ................................ 1,100,000 1,240,173
Tulare Local Health Care District Health Facilities Revenue, 5.20%, 12/01/21 .................. 4,455,000 4,396,328
University of California COP, UCLA Center Chiller/Cogeneration Project, Refunding,
5.50%, 11/01/17 ............................................................................ 13,940,000 14,700,427
5.60%, 11/01/20 ............................................................................ 14,880,000 15,680,395
University of California Revenues,
Multi-Purpose Projects, Refunding, Series C, AMBAC Insured, 5.00%, 9/01/23 ................. 17,545,000 17,373,234
Multi-Purpose Projects, Series F, FGIC Insured, 5.00%, 9/01/22 ............................. 40,575,000 40,241,474
Multi-Purpose Projects, Series F, FGIC Insured, 5.00%, 9/01/27 ............................. 82,440,000 81,449,896
Research Facilities, Refunding, Series C, FSA Insured, 5.00%, 9/01/21 ...................... 9,945,000 9,878,269
Research Facilities, Series B, Pre-Refunded, 6.55%, 9/01/24 ................................ 26,780,000 30,426,633
Research Facilities, Series D, FSA Insured, 5.00%, 9/01/24 ................................. 7,885,000 7,806,229
U.C. Davis Medical Center, AMBAC Insured, 5.75%, 7/01/20 ................................... 45,385,000 48,629,120
U.C. Davis Medical Center, AMBAC Insured, 5.75%, 7/01/24 ................................... 15,500,000 16,627,625
Upland COP,
Refunding, Mortgage Insured, 5.50%, 1/01/07 ................................................ 4,935,000 5,267,323
San Antonio Community Hospital, Refunding, 5.70%, 1/01/11 .................................. 11,210,000 12,158,814
Upland Housing Authority Revenue, Series 1990, Issue A, 7.85%, 7/01/20 ........................ 4,440,000 4,560,457
Vacaville COP, Pre-Refunded, 9.40%, 10/01/15 .................................................. 12,170,000 13,518,679
Vacaville PFA Revenue, Local Agency, 8.65%, 9/02/18 ........................................... 5,935,000 6,154,476
Vacaville Special Tax CFD No. 2, Nut Tree, Series A, Pre-Refunded,
8.25%, 9/01/10 ............................................................................. 1,885,000 1,980,871
8.20%, 9/01/15 ............................................................................. 1,000,000 1,050,660
Val Verde USD, COP,
Thomas Rivera Middle School, Pre-Refunded, 6.50%, 6/01/22 .................................. 7,315,000 8,163,028
Vista Verde Project, Pre-Refunded, 6.95%, 6/01/21 .......................................... 2,785,000 3,040,190
Vallejo RDA, Tax Allocation, Waterfront Redevelopment Project, 7.90%, 5/01/19 ................. 2,480,000 2,497,583
Vallejo Revenue,
Golf Course Project, Series A, 7.90%, 6/01/17 .............................................. 6,000,000 6,372,120
Water Improvement Project, Refunding, Series A, FSA Insured, 5.875%, 5/01/26 ............... 6,500,000 7,139,080
Vallejo USD, Special Tax Revenue, CFD No. 2,
7.75%, 9/01/15 ............................................................................. 2,300,000 2,357,063
8.125%, 9/01/16 ............................................................................ 5,100,000 5,367,495
Victor Valley UHSD, COP, Pre-Refunded, 7.875%, 11/01/12 ....................................... 5,100,000 5,559,000
Victorville RDA, Tax Allocation, Bear Valley Road Redevelopment Project,
Pre-Refunded, 7.50%, 11/01/06 .............................................................. 1,200,000 1,342,044
Refunding, Series A, FSA Insured, 6.125%, 9/01/19 .......................................... 2,405,000 2,628,256
Refunding, Series A, FSA Insured, 6.125%, 9/01/24 .......................................... 3,245,000 3,544,870
Virgin Islands PFA Revenue, Senior Lien,
Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 ...................................... 7,000,000 7,017,640
Refunding, Series A, 5.50%, 10/01/14 ....................................................... 3,865,000 3,967,654
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
<S> <C> <C>
Vista Community Development Commission Tax Allocation Revenue, Vista Redevelopment Project Area,
MBIA Insured, 5.50%, 9/01/23 ...................................................................... $11,810,000 $12,358,929
Series A, MBIA Insured, 5.125%, 9/01/28 ........................................................... 3,645,000 3,657,940
Series B, MBIA Insured, 5.20%, 9/01/28 ............................................................ 5,485,000 5,537,382
Vista Joint Powers Financing Authority Revenue,
Lease, Refunding, MBIA Insured, 5.625%, 5/01/16 ................................................... 5,000,000 5,375,750
Series A, 7.625%, 2/01/20 ......................................................................... 3,675,000 3,829,901
Walnut Improvement Agency RMR, Series A, 10.25%, 5/01/17 ............................................. 80,000 84,837
Walnut PFA Revenue, Tax Allocation, Improvement Project, Refunding, MBIA Insured,
6.50%, 9/01/22 ...................................................................................... 8,285,000 9,079,449
Washington Township Hospital District Revenue, AMBAC Insured, 5.25%, 7/01/23 ......................... 5,000,000 5,073,900
Watsonville Insured Hospital Revenue, Watsonville Community Hospital, Series A, Pre-Refunded,
6.30%, 7/01/15 .................................................................................... 3,990,000 4,594,804
6.35%, 7/01/24 .................................................................................... 5,435,000 6,273,784
Watsonville RDA, GO, Tax Allocation, Watsonville Redevelopment Project, 6.30%, 8/01/06 ................ 1,745,000 1,755,505
West Basin Municipal Water District Revenue COP, 1992 Project, Refunding, Series A, AMBAC Insured,
5.50%, 8/01/22 ..................................................................................... 4,000,000 4,200,000
West Covina RDA, Special Tax, CFD No. 1, Pre-Refunded, 7.80%, 9/01/22 ................................ 23,000,000 23,901,370
West Hollywood COP, Refunding, MBIA Insured, 5.00%, 2/01/25 .......................................... 6,250,000 6,178,063
West Sacramento Financing Authority Revenue, MBIA Insured, Pre-Refunded, 6.25%, 9/01/24 ............... 15,550,000 17,746,593
West Sacramento RDA, Tax Allocation, West Sacramento Redevelopment Project, MBIA Insured,
Pre-Refunded, 6.25%, 9/01/21 ........................................................................ 4,725,000 5,125,869
Westminster RDAR, Tax Allocation, Commercial Redevelopment Project No. 1, Refunding, Series A,
Pre-Refunded, 7.30%, 8/01/21 ........................................................................ 6,455,000 7,138,520
Whittier CFD, Special Tax Revenue, Whitter Station Center, Series 1, Pre-Refunded,
7.75%, 9/01/19 ...................................................................................... 5,095,000 5,507,746
William S. Hart Joint School Financing Authority Special Tax Revenue, Community Facilities, Refunding,
FSA Insured, 6.50%, 9/01/14 ......................................................................... 4,000,000 4,575,360
William S. Hart UHSD, Special Tax Revenue, CFD No. 8, 7.75%, 9/01/14 ................................. 1,210,000 1,257,178
--------------
TOTAL BONDS (COST $13,966,041,383) 14,897,847,863
--------------
ZERO COUPON/STEP-UP BONDS 6.7%
Anaheim PFA Revenue, Lease Revenue, Public Improvements Project, Series C,
FSA Insured, 9/01/33 ............................................................................... 15,000,000 2,514,000
Auburn USD, COP, Land Acquisition Program, Series A, FSA Insured, zero cpn. to 9/01/00,
7.00% thereafter, 9/01/28 .......................................................................... 2,965,000 2,909,999
Baldwin Park RDA, Tax Allocation, San Gabriel, Refunding, Series A, ETM,
02/01/00 ......................................................................................... 550,000 536,091
02/01/01 ......................................................................................... 560,000 525,269
02/01/02 ......................................................................................... 565,000 509,517
02/01/03 ......................................................................................... 570,000 493,666
02/01/04 ......................................................................................... 575,000 476,658
02/01/05 ......................................................................................... 585,000 463,782
Burton Elementary School District COP, Loan Acquisition, Capital Appreciation, Series B, FSA Insured,
zero cpn. to 9/01/00, 6.60% thereafter, 9/01/27 .................................................... 300,000 286,626
California Health Facilities Financing Authority Revenue, Kaiser Permanente, Series A,
ETM, 10/01/11 ...................................................................................... 13,970,000 7,670,229
California HFAR,
Capital Appreciation, Series G, MBIA Insured, 02/01/30 ........................................... 72,660,000 12,515,685
Home Mortgage, Capital Appreciation, Series A, 08/01/16 .......................................... 615,000 96,260
Home Mortgage, Capital Appreciation, Series A, 08/01/23 .......................................... 15,940,000 2,467,671
Home Mortgage, Series B, MBIA Insured, 02/01/30 .................................................. 58,000,000 10,960,260
Home Mortgage, Series C, 08/01/21 ................................................................ 23,310,000 4,251,511
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
<S> <C> <C>
California Public School District Financing Authority Lease Revenue, Los Banos School,
Series A, FSA Insured, zero coupon to 10/01/00, 6.20% thereafter, 10/01/23 .......................... $ 455,000 $ 436,918
Series B, FSA Insured, Pre-refunded, zero cpn. to 10/01/00, 6.20% thereafter, 10/01/23 .............. 4,535,000 4,615,179
California State GO,
Principal Eagles II, Series 3, 03/01/09 ............................................................. 7,500,000 4,873,950
Principal Eagles II, Series 4, 06/01/06 ............................................................. 10,000,000 7,469,900
Principal Eagles II, Series 6, 03/01/09 ............................................................. 5,000,000 3,249,300
Principal M-Raes, Series 8, 04/01/09 ................................................................ 9,000,000 5,827,590
California Statewide CDA Revenue, COP, Insured Hospital, Triad Health Care, Refunding, ETM,
08/01/09 ............................................................................................ 6,450,000 4,137,095
08/01/10 ............................................................................................ 6,745,000 4,121,195
08/01/11 ............................................................................................ 3,115,000 1,800,377
Campbell USD, Series B, FGIC Insured,
08/01/20 ............................................................................................ 5,000,000 1,684,100
08/01/21 ............................................................................................ 6,280,000 2,005,581
Chino USD, COP, Land Acquisition,
Series A, FSA Insured, zero cpn. to 9/01/99, 6.60% thereafter, 9/01/14 .............................. 1,265,000 1,317,384
Series A, FSA Insured, zero cpn. to 9/01/99, 6.70% thereafter, 9/01/29 .............................. 7,105,000 7,311,258
Series B, FSA Insured, zero cpn. to 9/01/02, 6.60% thereafter, 9/01/14 .............................. 1,580,000 1,366,747
Series B, FSA Insured, zero cpn. to 9/01/02, 6.70% thereafter, 9/01/29 .............................. 4,780,000 4,068,019
Contra Costa County COP, Merrithew Memorial Hospital Project, ETM,11/01/15 ............................. 6,810,000 3,073,285
Contra Costa Home Mortgage Finance Authority HMR, Mandatory Sinking Fund -
3/01/07, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 10,770,000 2,389,648
3/01/08, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 9,635,000 2,276,558
3/01/09, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 8,615,000 2,149,615
3/01/10, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 7,700,000 2,040,423
9/01/07, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 5,890,000 1,353,286
9/01/08, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 8,095,000 1,979,875
9/01/09, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 7,135,000 1,841,544
9/01/10, MBIA Insured, Pre-Refunded, 09/01/17 ....................................................... 6,275,000 1,719,413
Contra Costa School Financing Authority Revenue, Capital Appreciation,
Antioch USD Community, Series B, 09/01/07 ........................................................... 1,785,000 1,126,835
Vista USD, Series A, FSA Insured, Pre-Refunded, 09/01/03 ............................................ 1,000,000 844,580
Vista USD, Series A, FSA Insured, Pre-Refunded, 09/01/17 ............................................ 3,820,000 1,225,380
Desert Sands USD, COP, Capital Projects, FSA Insured, zero cpn. to 3/01/01, 6.45% thereafter, 3/01/20 .. 6,820,000 6,264,784
Elk Grove USD, Special Tax, Capital Appreciation, CFD 1,
12/01/21 ............................................................................................ 4,195,000 1,288,326
12/01/26 ............................................................................................ 6,355,000 1,491,900
12/01/27 ............................................................................................ 6,355,000 1,415,703
MBIA Insured, 12/01/19 .............................................................................. 2,775,000 953,490
MBIA Insured, 12/01/20 .............................................................................. 2,765,000 896,441
MBIA Insured, 12/01/22 .............................................................................. 4,195,000 1,220,074
MBIA Insured, 12/01/23 .............................................................................. 4,195,000 1,155,261
MBIA Insured, 12/01/24 .............................................................................. 4,200,000 1,097,670
MBIA Insured, 12/01/25 .............................................................................. 6,355,000 1,572,163
MBIA Insured, 12/01/28 .............................................................................. 6,355,000 1,343,447
Fontana USD, Series D, FGIC Insured, zero cpn. to 5/01/00, 5.80% thereafter, 5/01/17 ................... 5,000,000 4,991,400
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
<S> <C> <C>
Foothill/Eastern Corridor Agency, Toll Road Revenue, Senior Lien, Series A,
01/01/09 ................................................................................... $10,000,000 $ 8,212,600
01/01/12 ................................................................................... 8,000,000 6,819,440
01/01/14 ................................................................................... 5,500,000 4,824,160
01/01/25 ................................................................................... 20,660,000 5,242,888
01/01/26 ................................................................................... 23,475,000 5,648,085
01/01/27 ................................................................................... 10,000,000 2,281,200
01/01/29 ................................................................................... 18,000,000 3,691,080
Los Angeles Convention and Exhibition Center Authority COP,
Series 1985, ETM, 12/01/05 ................................................................... 26,750,000 20,513,773
Los Angeles County Transportation Commission Sales Tax Revenue, Capital Appreciation,
Refunding, Series A,
7/1/03 ..................................................................................... 4,895,000 3,765,332
MBIA Insured, 07/01/04 ..................................................................... 4,895,000 3,498,065
Los Angeles HMR, Series A, GNMA Secured, 8/25/16 .............................................. 1,415,000 333,162
Los Banos USD, COP, Series B, MBIA Insured, 8/01/16 ........................................... 5,000,000 4,578,450
Monterey Park CRDA, Tax Allocation, Project No. 1, Pre-Refunded, 5/01/14 ...................... 38,500,000 11,796,015
Orange County COP, Pre-Refunded,
06/01/01 ................................................................................... 3,280,000 2,958,626
06/01/02 ................................................................................... 3,280,000 2,744,638
06/01/03 ................................................................................... 3,280,000 2,543,673
06/01/04 ................................................................................... 3,280,000 2,360,846
06/01/10 ................................................................................... 4,715,000 2,146,315
06/01/11 ................................................................................... 4,715,000 1,990,154
06/01/12 ................................................................................... 4,715,000 1,845,357
Palmdale CRDA, Tax Allocation, Merged Project, Subordinated Lien, AMBAC Insured,
zero cpn. to 12/01/04, 5.50% thereafter, 12/01/29 ........................................... 3,255,000 2,555,631
Paramount USD, COP, Land Acquisition, Series B, FSA Insured, zero cpn. to 9/01/01,
6.85% thereafter, 9/01/14 .................................................................. 1,695,000 1,510,974
7.00% thereafter, 9/01/29 .................................................................. 7,675,000 6,861,604
Pasadena Special Tax CFD, No. 1 Civic Center West, Pre-Refunded, 12/01/17 ...................... 4,090,000 1,364,260
Perris SFMR, ETM, Series A, GNMA Secured, 6/01/23 .............................................. 19,095,000 5,284,732
Placer Hills Union Elementary School District COP, Series B,
zero cpn. to 3/01/00, 7.125% thereafter, 3/01/19 ............................................. 510,000 520,169
Placer Union High School District COP, Capital Appreciation, Series A, 3/01/19 ................. 2,095,000 2,136,774
Porterville UHSD, COP, Capital Appreciation, Land Acquisition,
Series A, FSA Insured, 9/01/27 ............................................................... 1,325,000 1,412,901
Rancho Water District Financing Authority Revenue, AMBAC Insured,
08/15/16 ................................................................................... 8,605,000 3,676,142
08/15/17 ................................................................................... 13,605,000 5,484,992
08/15/18 ................................................................................... 13,605,000 5,132,214
Riverside County Asset Leasing Corp. Leasehold Revenue, Riverside County Hospital Project,
MBIA Insured, 6/01/24 ........................................................................ 13,005,000 3,531,898
Riverside County Board of Education COP, Capital Appreciation Financing Projects,
Series A, 11/01/05 ........................................................................... 1,250,000 951,313
Riverside County SFMR, Capital Appreciation Mortgage,
Series A, GNMA Secured, ETM, 9/01/14 ....................................................... 20,220,000 9,060,784
Series A, GNMA Secured, ETM, 11/01/20 ...................................................... 25,055,000 7,889,067
Series B, GNMA Secured, ETM, 6/01/23 ....................................................... 26,160,000 7,240,040
Rocklin USD, GO, Capital Appreciation, Series A, FGIC Insured,
09/01/08 ................................................................................... 3,660,000 2,462,336
09/01/09 ................................................................................... 4,100,000 2,617,725
</TABLE>
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FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
<S> <C> <C>
Rocklin USD, GO, Capital Appreciation, Series A, FGIC Insured, (cont.)
09/01/10 ........................................................................................... $ 4,595,000 $ 2,763,292
09/01/11 ........................................................................................... 5,145,000 2,923,386
09/01/12 ........................................................................................... 5,760,000 3,094,442
09/01/16 ........................................................................................... 33,960,000 14,476,466
Roseville City School District GO, Capital Appreciation, Series A,
08/01/11 ........................................................................................... 3,115,000 1,755,424
08/01/17 ........................................................................................... 30,770,000 12,104,915
Roseville Joint UHSD, Capital Appreciation, Series A,
08/01/10 ........................................................................................... 1,820,000 1,086,464
08/01/11 ........................................................................................... 1,965,000 1,107,353
08/01/17 ........................................................................................... 18,155,000 7,136,001
San Francisco City and County RDA, Lease Revenue, George R. Moscone Center, Capital Appreciation,
07/01/05 ........................................................................................... 12,820,000 9,790,631
07/01/06 ........................................................................................... 11,320,000 8,220,921
07/01/07 ........................................................................................... 4,570,000 3,149,870
07/01/08 ........................................................................................... 7,785,000 5,087,183
Pre-Refunded, 7/01/16 .............................................................................. 16,300,000 4,944,765
Pre-Refunded, 7/01/17 .............................................................................. 16,300,000 4,549,818
Pre-Refunded, 7/01/18 .............................................................................. 16,300,000 4,186,491
Zero cpn. to 7/01/02, 8.50% thereafter, 7/01/14 .................................................... 46,000,000 43,276,800
San Francisco City and County SFMR, Series 1985, 10/01/18 ............................................. 2,905,000 404,346
San Gabriel USD, COP, Facilities Development Program, Series B, FSA Insured, zero cpn. to 9/01/02,
6.75% thereafter, 9/01/29 ............................................................................ 2,250,000 1,888,897
San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Senior Lien,
ETM, 1/01/25 ....................................................................................... 5,700,000 1,559,520
ETM, 1/01/28 ....................................................................................... 33,545,000 7,891,125
ETM, 1/01/29 ....................................................................................... 37,050,000 8,287,343
Pre-Refunded, zero cpn. to 1/01/02, 7.50% thereafter, 1/01/09 ...................................... 21,585,000 22,732,026
Pre-Refunded, zero cpn. to 1/01/02, 7.55% thereafter, 1/01/10 ...................................... 10,745,000 11,237,980
Pre-Refunded, zero cpn. to 1/01/02, 7.60% thereafter, 1/01/11 ...................................... 25,935,000 27,247,051
Pre-Refunded, zero cpn. to 1/01/02, 7.65% thereafter, 1/01/12 ...................................... 25,215,000 26,508,781
Pre-Refunded, zero cpn. to 1/01/02, 7.65% thereafter, 1/01/13 ...................................... 27,350,000 28,928,641
Pre-Refunded, zero cpn. to 1/01/02, 7.705% thereafter, 1/01/14 ..................................... 7,470,000 7,930,600
Pre-Refunded, zero cpn. to 1/01/02, 7.705% thereafter, 1/01/15 ..................................... 60,155,000 63,961,006
Refunding, Series A, 1/15/16 ....................................................................... 19,500,000 13,693,094
Refunding, Series A, 1/15/17 ....................................................................... 17,000,000 11,927,880
Refunding, Series A, 1/15/18 ....................................................................... 60,000,000 42,220,800
Refunding, Series A, 1/15/19 ....................................................................... 57,000,000 40,063,020
Refunding, Series A, 1/15/20 ....................................................................... 80,000,000 55,903,200
Refunding, Series A, 1/15/23 ....................................................................... 80,000,000 56,033,600
Refunding, Series A, 1/15/24 ....................................................................... 80,000,000 55,125,600
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue,
Senior Lien, Refunding, Series A, 1/15/22 ............................................................ 90,000,000 62,913,600
Santa Maria Water and Wastewater Revenue, COP, Series A, AMBAC Insured, 8/01/27 ....................... 20,000,000 15,580,600
Simi Valley SFRMR, Series A, 9/01/25 .................................................................. 1,310,000 166,382
Southern California Public Power Authority Power Project Revenue, Refunding, Series A, AMBAC Insured,
07/01/11 ............................................................................................. 12,000,000 6,870,360
</TABLE>
56
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
<S> <C> <C>
Southern California Public Power Authority Power Project Revenue, Refunding,
Series A, AMBAC Insured, (cont.)
07/01/12 ............................................................................ $ 16,890,000 $ 9,144,076
07/01/13 ............................................................................ 16,000,000 8,178,400
Stockton East Water District COP, Refunding, Series A, AMBAC Insured, 4/01/16 .......... 103,885,000 42,300,932
----------------
TOTAL ZERO COUPON/STEP-UP BONDS (COST $895,790,270) .................................... 1,072,513,415
----------------
TOTAL LONG TERM INVESTMENTS (COST $14,861,831,653) ..................................... 15,970,361,278
----------------
(b)SHORT-TERM INVESTMENTS .5%
California State Economic Development Financing Authority Revenue,
California Independent System Project,
Series A, Daily VRDN and Put, 2.95%, 4/01/08 ........................................ 15,400,000 15,400,000
Series C, Daily VRDN and Put, 3.25%, 4/01/08 ........................................ 7,100,000 7,100,000
Irvine 1915 Act,
AD No. 87-8, Daily VRDN and Put, 3.00%, 9/02/24 ..................................... 3,200,000 3,200,000
AD No. 97-13, Daily VRDN and Put, 3.00%, 9/02/23 .................................... 4,300,000 4,300,000
Irvine Ranch Water District,
COP, DATES-Capital Improvement Project, Daily VRDN and Put, 3.0%, 08/01/16 .......... 12,400,000 12,400,000
Consolidated Bonds, Refunding, Series B, Daily VRDN and Put, 3.0%, 10/01/09 ......... 6,400,000 6,400,000
Refunding, Series A, Daily VRDN and Put, 2.90%, 5/01/09 ............................. 5,000,000 5,000,000
Orange County Sanitation Districts, COP, Adjustment nos. 1,2,3,6,7 & 11,
Series C, FGIC Insured, Daily VRDN and Put, 3.0%, 8/01/17 ............................. 16,600,000 16,600,000
----------------
TOTAL SHORT-TERM INVESTMENTS (COST $70,400,000) ........................................ 70,400,000
----------------
TOTAL INVESTMENTS (COST $14,932,231,653) 100.4% ........................................ 16,040,761,278
OTHER ASSETS, LESS LIABILITIES (.4%) ................................................... (58,839,306)
----------------
NET ASSETS 100.0% ...................................................................... $ 15,981,921,972
================
</TABLE>
See glossary of terms on page 58.
(a) Sufficient collateral has been segregated for securities traded on a
when-issued or delayed delivery basis.
(b) Variable rate demand notes (VRDNs) are tax-exempt obligations which
contain a floating or variable interest rate adjustment formula and an
unconditional right of demand to receive payment of the principal
balance plus accrued interest at specified dates.
See notes to financial statements
57
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 1999 (CONT.)
<TABLE>
<CAPTION>
GLOSSARY OF TERMS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
1915 ACT - Improvement Bond Act of 1915
ABAG - The Association of Bay Area Governments
AD - Assessment District
AMBAC - American Municipal Bond Assurance Corp.
BIG - Bond Investors Guaranty Insurance Co. (Acquired by MBIA in 1989 and no longer does business under this name)
CDA - Community Development Authority/Agency
CFD - Community Facilities District
CHFCLP - California Health Facilities Construction Loan Program
COP - Certificate of Participation
CRDA - Community Redevelopment Authority/Agency
CSAC - County Supervisors Association of California
DATES - Demand Adjustable Tax-Exempt Securities
ETM - Escrow to Maturity
FGIC - Financial Guaranty Insurance Co.
FHA - Federal Housing Authority/Agency
FSA - Financial Security Assistance (some of the securities shown as FSA Insured were originally insured by Capital
Guaranty Insurance Co. (CGIC) which was acquired by FSA in 1995 and no longer does business under this name.)
GNMA - Government National Mortgage Association
GO - General Obligation
HFA - Housing Finance Authority/Agency
HFR - Home Financial Revenue
HMR - Home Mortgage Revenue
ID - Improvement District
IDR - Industrial Development Revenue
MBIA - Municipal Bond Investors Assurance Corp.
MFHR - Multi-Family Housing Revenue
MFR - Multi-Family Revenue
MUD - Municipal Utility District
PCFA - Pollution Control Financing Authority
PUD - Public Utility District
RDA - Redevelopment Authority/Agency
RMR - Residential Mortgage Revenue
RRMR - Residential Rental Mortgage Revenue
SF - Single Family
SFHMR - Single Family Home Mortgage Revenue
SFM - Single Family Mortgage
SFMR - Single Family Mortgage Revenue
SFRMR - Single Family Residential Mortgage Revenue
UHSD - Unified High School District
USD - Unified School District
VRDN - Variable Rate Demand Notes
</TABLE>
58
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investments in securities, at value (cost $ 14,932,231,653) ................................................... $16,040,761,278
Cash .......................................................................................................... 6,704,461
Receivables:
Capital shares sold .......................................................................................... 10,699,745
Interest ..................................................................................................... 217,218,580
--------------
Total assets .............................................................................................. 16,275,384,064
--------------
Liabilities:
Payables:
Investment securities purchased .............................................................................. 250,850,527
Capital shares redeemed ...................................................................................... 17,671,783
Affiliates ................................................................................................... 8,786,793
Shareholders ................................................................................................. 15,630,055
Other liabilities ............................................................................................. 522,934
---------------
Total liabilities ......................................................................................... 293,462,092
---------------
Net assets, at value ...................................................................................... $15,981,921,972
===============
Net assets consist of:
Undistributed net investment income ........................................................................... $ 1,496,555
Net unrealized appreciation ................................................................................... 1,108,529,625
Accumulated net realized gain ................................................................................. 10,706,658
Capital shares ................................................................................................ 14,861,189,134
---------------
Net assets, at value ...................................................................................... $15,981,921,972
===============
Class A:
Net asset value per share ($15,473,713,016 / 2,090,940,996 shares outstanding)* ............................... $ 7.40
===============
Maximum offering price per share ($7.40 / 95.75%) ............................................................. $ 7.73
===============
Class B:
Net asset value and the maximum offering price per share ($43,673,584 / 5,906,718 shares outstanding)* ........ $ 7.39
===============
Class C:
Net asset value per share ($464,535,373 / 62,836,474 shares outstanding)* ..................................... $ 7.39
===============
Maximum offering price per share ($7.39 / 99.00%) ............................................................. $ 7.46
===============
</TABLE>
* Redemption price is equal to net asset value less any applicable contingent
deferred sales charge.
See notes to financial statements. 59
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Statements (continued)
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
Investment income:
Interest .............................................................................................. $904,341,495
------------
Expenses:
Management fees (Note 3) .............................................................................. $ 69,665,022
Distribution fees (Note 3)
Class A .............................................................................................. 11,781,079
Class B .............................................................................................. 32,918
Class C .............................................................................................. 2,512,913
Transfer agent fees (Note 3) .......................................................................... 3,806,973
Custodian fees ........................................................................................ 156,989
Reports to shareholders ............................................................................... 1,222,046
Registration and filing fees .......................................................................... 565,424
Professional fees ..................................................................................... 297,710
Directors' fees and expenses .......................................................................... 110,865
Other ................................................................................................. 435,267
------------
Total expenses .................................................................................... 90,587,206
------------
Net investment income ............................................................................. 813,754,289
------------
Realized and unrealized gains:
Net realized gain from investments ................................................................... 46,041,024
Net unrealized appreciation on investments ........................................................... 112,383,811
------------
Net realized and unrealized gain ....................................................................... 158,424,835
------------
Net increase in net assets resulting from operations ................................................... $972,179,124
============
</TABLE>
See notes to financial statements.
60
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Statements (continued)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
--------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ...................................................... $ 813,754,289 $ 827,310,972
Net realized gain from investments ......................................... 46,041,024 54,982,842
Net unrealized appreciation on investments ................................. 112,383,811 502,882,454
--------------------------------------------
Net increase in net assets resulting from operations .................. 972,179,124 1,385,176,268
Distributions to shareholders from:
Net investment income:
Class A ................................................................... (797,790,042) (832,455,264)
Class B ................................................................... (158,483) --
Class C ................................................................... (17,577,963) (10,853,571)
Net realized gains:
Class A ................................................................... (49,417,902) (27,207,459)
Class B ................................................................... -- --
Class C ................................................................... (1,251,012) (441,532)
--------------------------------------------
Total distributions to shareholders ......................................... (866,195,402) (870,957,826)
Capital share transactions: (Note 2)
Class A .................................................................... 602,614,722 626,244,984
Class B .................................................................... 43,693,388 --
Class C .................................................................... 166,346,589 150,768,626
--------------------------------------------
Total capital share transactions ............................................ 812,654,699 777,013,610
--------------------------------------------
Net increase in net assets ............................................ 918,638,421 1,291,232,052
Net assets:
Beginning of year ........................................................... 15,063,283,551 13,772,051,499
--------------------------------------------
End of year ................................................................. $ 15,981,921,972 $ 15,063,283,551
============================================
Undistributed net investment income included in net assets:
End of year ................................................................. $ 1,496,555 $ 3,268,754
============================================
</TABLE>
See notes to financial statements.
61
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Franklin California Tax-Free Income Fund, Inc. (the Fund) is registered under
the Investment Company Act of 1940 as a diversified, open-end investment
company. The Fund seeks to provide tax-free income. The following summarizes the
Fund's significant accounting policies.
a. SECURITY VALUATION
Tax-free bonds generally trade in the over-the-counter market and are valued
within the range of the latest quoted bid and asked prices. In the absence of a
sale or reported bid and asked prices, information with respect to bond and note
transactions, quotations from bond dealers, market transactions in comparable
securities, and various relationships between securities are used to determine
the value of the security. The Fund may utilize a pricing service, bank or
broker/dealer experienced in such matters to perform any of the pricing
functions under procedures approved by the Board of Directors. Securities for
which market quotations are not readily available are valued at fair value as
determined by management in accordance with procedures established by the Board
of Directors.
b. INCOME TAXES
No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.
c. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Bond discount and
premium are amortized on an income tax basis. Distributions to shareholders are
recorded on the ex-dividend date.
Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.
d. ACCOUNTING ESTIMATES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
2. CAPITAL STOCK
The Fund offers three classes of shares: Class A, Class B and Class C. Effective
January 1, 1999, Class I and II were renamed Class A and Class C, respectively,
and the fund began offering a new class of shares, Class B. Each class of shares
differs by its initial sales load, distribution fees, voting rights on matters
affecting a single class and its exchange privilege.
62
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Notes to Financial Statements (continued)
2. CAPITAL STOCK (CONT.)
At March 31, 1999, there were five billion shares authorized ($0.01 par value)
for each class. Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
----------------------------------------------------------------------
1999 1998
----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
CLASS A SHARES:
Shares sold ........................................... 474,619,393 $ 3,502,952,552 435,975,245 $ 3,167,627,218
Shares issued in reinvestment of distributions ........ 48,948,394 360,693,105 48,924,195 354,022,741
Shares redeemed ....................................... (441,485,023) (3,261,030,935) (398,224,177) (2,895,404,975)
----------------------------------------------------------------------
Net increase .......................................... 82,082,764 $ 602,614,722 86,675,263 $ 626,244,984
======================================================================
CLASS B SHARES:
Shares sold ........................................... 5,987,954 $ 44,294,143
Shares issued in reinvestment of distributions ........ 14,890 109,834
Shares redeemed ....................................... (96,126) (710,589)
-------------------------------
Net increase .......................................... 5,906,718 $ 43,693,388
===============================
CLASS C SHARES:
Shares sold ........................................... 28,413,185 $ 209,666,423 23,451,084 $ 170,412,078
Shares issued in reinvestment of distributions ........ 1,696,053 12,497,405 1,033,021 7,489,380
Shares redeemed ....................................... (7,568,825) (55,817,239) (3,729,715) (27,132,832)
----------------------------------------------------------------------
Net increase .......................................... 22,540,413 $ 166,346,589 20,754,390 $ 150,768,626
======================================================================
</TABLE>
3. TRANSACTIONS WITH AFFILIATES
Certain officers and directors of the Fund are also officers and/or directors of
Franklin/Templeton Distributors, Inc. (Distributors), Franklin Advisers, Inc.
(Advisers), Franklin/Templeton Investor Services, Inc. (Investor Services), and
Franklin Templeton Services, Inc. (FT Services), the Fund's principal
underwriter, investment manager, transfer agent, and administrative manager,
respectively.
The Fund pays an investment management fee to Advisers based on the net assets
of the Fund as follows:
<TABLE>
ANNUALIZED
FEE RATE MONTH-END NET ASSETS
- -----------------------------------------------------------------------
<S> <C>
.625% First $100 million
.50% Over $100 million, up to and including $250 million
.45% Over $250 million, up to and including $10 billion
.44% Over $10 billion, up to and including $12.5 billion
.42% Over $12.5 billion, up to and including $15 billion
.40% Over $15 billion, up to and including $17.5 billion
</TABLE>
63
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Notes to Financial Statements (continued)
3. TRANSACTIONS WITH AFFILIATES (CONT.)
Fees are further reduced on net assets over $17.5 billion.
Under an agreement with Advisers, FT Services provides administrative services
to the Fund. The fee is paid by Advisers based on average daily net assets, and
is not an additional expense of the Fund.
The Fund reimburses Distributors up to .10%, .65% and .65% per year of the
average daily net assets of Class A, Class B and Class C, respectively, for
costs incurred in marketing the Fund's shares.
Distributors paid net commissions on sales of the Fund shares, and received
contingent deferred sales charges for the year of $6,639,476 and $378,970,
respectively.
The Fund paid transfer agent fees of $3,806,973 of which $3,474,833 was paid to
Investor Services.
Included in professional fees are legal fees of $53,646 that were paid to a law
firm in which a partner is an officer of the Fund.
4. INCOME TAXES
At March 31, 1999, the net unrealized appreciation based on the cost of
investments for income tax purposes of $14,932,448,609 was as follows:
<TABLE>
<CAPTION>
<S> <C>
Unrealized appreciation ....................... $ 1,114,745,345
Unrealized depreciation ....................... (6,432,676)
---------------
Net unrealized appreciation ................... $ 1,108,312,669
===============
</TABLE>
Net realized capital gains differ for financial statement and tax purposes
primarily due to differing treatment of wash sales.
5. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding short-term securities) for the year
ended March 31, 1999 aggregated $3,695,222,565 and $2,866,718,042, respectively.
6. CREDIT RISK
The Fund has investments in excess of 10% of its total net assets in the state
of California. Such concentration may subject the Fund more significantly to
economic changes occurring within that state.
64
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF FRANKLIN CALIFORNIA TAX-FREE
INCOME FUND, INC.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Franklin California Tax-Free Income
Fund, Inc. (the "Fund") at March 31, 1999, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
San Francisco, California
May 5, 1999
65
Page
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
TAX INFORMATION
Under Section 852(b)(3)(C) of the Internal Revenue Code, the Fund hereby
designates $45,809,078 as a capital gain dividend for the fiscal year ended
March 31, 1999.
Under Section 852(b)(5)(A) of the Internal Revenue Code, the Fund hereby
designates 100% of the distributions paid from net investment income as
exempt-interest dividends for the fiscal year ended March 31, 1999.
66
Page
